Isolde and Emanuel’s Target Market
Isolde (Siiquent): Hospitals and big diagnostic labs
Emanuel (Teomik): Research labs and universities
How do their respective business/revenue models align with their markets?
Siiquent’s business model is characterized by selling the materials that companies who make “machines,” profiting off the margins of the materials that companies who make the machines need (chemical, biological consumables). This aligns with their market of hospitals and labs as their pricing is just slightly lower than the fixed reimbursements received from the national health service, so both are able to generate revenue from them even after buying.
Teomik’s sells the “machines” and profits off the machines. They have adaptability to customer demands, accounting and competitive threats. Their revenue is based off the margins from selling patent-protected machines to large genetic research labs funded by giant institutes who haven’t balked at high prices.
Pros and perils of “imposing the structure of a single revenue model” vs. “letting [the company] continue on its flexible way”
Pros: Imposing structure and standardization of revenue makes it easy to diagnose problems, streamline the company on a unified mission, and align on areas of improvement.
Perils: Every division / product might require personalized care in marketing, pricing, and operations based off who the customer is, and a single revenue model would not afford the flexibility that allows the capture of all possible capital.
Hypothetical:
CEO has decided the department heads must merge their divisions together. As a star PM assigned to mediate this interaction between department heads, how would you scaffold the discussion to ensure a fair merging process?
- Ask both division heads to write down what has worked well for them in securing the most amount of revenue. Based of this, we can view them as centerpoints to anchor the combined business model to fairly integrate, if compatible. If not, we will gather data to see exactly which is most profitable and which one would result in the least amount of losses, if a better one is not found
- Learn about operation inefficiencies from both sides? What could each other benefit from? This would inform what to change or keep in the new business model.
- Ask both to describe their vision for expansion. What type of business model would best support vision and growth?
- Ask both their current responsibilities to see the best way to integrate and combine responsibilities.
- Ask for concerns. Make hierarchical guardrails so neither can counteract the other if conflicts arise.
