Isolde’s Market
Isolde (Siiquent) targets hospital and diagnostic laboratories involved in the genetic based research and testing. Their revenue model is the razor-and-blades approach where machines are sold at a cost, with respective consumables such as reagents and test kits being the primary source of revenue. This complements the current diagnostics industry as there is always a recurring need for consumable reagents and test kits. This allows for flexible, dynamic pricing that follows the needs of the industry, enabling efficient marketing operations.
Emannuel’s Market
Emmanuel (Teomik) targets research institutions and universities focused on genetic studies. They earn profits primarily off of high-margin research instruments, as they own the patents and rights to these machines. Their consumers are typically wealthy and have the means to pay for their prices. This revenue model aligns with their market as well, as price is not usually haggled in the case for high quality scientific equipment.
Pros and Cons of Single Revenue System
A single revenue model allows for simplified operations that can focus their success metrics to only one system. This allows for more directed growth and easier analysis of their performance in their respective markets. Additionally, this streamlines financial reporting and allows for internal teams to work under a unified marketing strategy.
However, there is evidence that a single revenue system may force the merging of the two companies to lose their strategies that make them successful in the first place. For Teomik and Siiquent, they make money in different ways. Research institutions may not favor consumable focused-pricing, as they are more focused on the machines themselves. Diagnostic labs will not care for overly expensive machines either, as they are more interested in cheaper, compatible machines and their consumables. There is a higher risk attached to this system, as it means to rid of a system that is currently working, which may lead to loss in revenue in whichever revenue system that is left out of the new model.
Pros and Cons of Flexible Revenue
A flexible revenue model has the opposite problems. Its flexibility allows for specialization and curated market strategies to focus on their respective markets. Additionally, they are tried and true market strategies. If it is performing well, why fix something that is not broken? Customers will not have to respond to the changes in their market strategies.
However, this may not have achieve the same cohesiveness as they want in the merging of these two companies. This process will allow for conflicting identities, that may be more perceived as two companies together only in name, allowing for brand confusion.
Merge Proposition
In order to merge Siiquent and Teomik, representatives from both companies as well as the merger should meet together and establish clear goals for direction. This involves ensuring that there is cooperation amongst the two teams as they work toward merging their respective companies. They should define a unified revenue model, minimizing disruption to their revenue streams and maximizing strengths from their respective industries. They should consider short-term and long-term impacts as well as ways they can gradually usher in their new system, without significant loss of revenue and customer loyalty.
Strong parts of this process include open dialogue and defining key metrics for market growth, operational efficiency, and customer satisfaction for data to back their merge proposition. The process should be done with pilot tests and try to keep the most overlap as possible to minimize drastic change to company workflows and culture.
How to Speak Up When it Matters
Smith, Grant, and Rock advocate for a ‘realistic optimistic’’ approach, where people act to speak up for others are people who understand that speaking up is difficult. By acknowledging the challenge, they step up to it and have a stronger will to carry it out.
They also advocate for neutral tones to ensure non-holistic/confrontational language to appear more convincing and reasonable. Additionally, they advocate to make a plan to ensure better direction of action.
