Can One Business Unit Have Two Revenue Models?

Before the merger, Isolde ran Siiquent, which sold the “stuff” that hospitals and diagnostic labs required for gene-based diagnosis. On the other hand, Emanuel ran Teomik, which sold the equipment and machines that used the chemicals and tests sold by Siiquent. Siiquent provides the hospitals and labs with the resources and support needed to conduct the diagnosis while Teomik relies on the initial sell of the equipment.

With a single revenue model, there would be more structure, organization, and clarity around how the company makes money. The company could better focus its resources and attention on creating the best product for its customers and scale more easily. However, letting the company continue flexibly allows for more creative ideas and more quickly addresses customer complaints and needs.

To scaffold a discussion around a fair merging process, I would rely heavily on data to support the conversation. We could first ask how much short- and long-term monetary gain would we achieve with the merger to see if the questions even matter. This would be in consultation with both department heads. We could then identify the unique parts of each department that is beneficial to the company, incorporate them in the new model, and merge the other pieces.

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