Isolde states that Siiquent’s revenue model is “making lots of money” — it seems very lax, non-specific, but malleable. Her argument is that they do what need to be done when the need is there. Siiquent caters to hospitals and diagnostic labs — services that are available to the public. Teomik, on the other hand, focuses on universities and research labs. They sell machines, while Siiquent sells “stuff,” or compounds. Given this difference, Teomik’s head Emanuel says that they basically approach it the same way. The argument is they can both take into account changes in the market, demand, and other factors rather than sticking to one plan always.
The pros of a single revenue model are having a solid plan and structure for business conduct. For people like Peter who are “planners and strategists,” this is great, and essential for top-tier organization. It also shows investors that you have a sense of direction and can sustain the same model for years to come. However, it may not be the best system for dramatic changes in the market, or if a competitor comes in and leaves different expectations in customers’ minds.
Letting the company continue on its flexible way, as Isolde and Emanuel say, allow the company to be malleable and react to changes in the market in appropriate ways. They can be “nimble and flexible,” and of course within that there must be some sense of structure. But as far as revenue is concerned, the goal is to make as much money as possible given the parameters at that time. The con is that this can seem unorganized! How do you explain this to a team, or to a board, or to any stakeholders involved? They need to have the same, clear sense of understanding you do.
As a PM responsible for merging two departments with similar-but-different products, I first need to understand what both companies want to maintain moving forward. What aspect of their business/revenue model is most important to them, and what products bring in the most money? Then, how can we devise a singular plan that will work for both departments without shuffling things around internally? After this merger, we would need to start unified and go in one direction that would generate the most revenue now. One, or a small handful, of products to sell to both hospitals and research labs, but of different provide levels of use (for research or application).
