Isolde targets the market of hospitals and big diagnostic labs, providing them what they need for gene-based diagnosis, whereas Emanuel targets the market of research labs and universities, providing them what they need for gene-based studies. Isolde’s business, Siiquent, constantly sought customer input and adjusted its offerings based on their wishes. For example, after customer input, they charged customers per reagent test rather than by bottles of reagent. Teomik’s business, however, sold patent-protected devices that allowed scientists to run genomics studies. Thus, Isolde sold “stuff” versus Teomik sold “machines.” Both provided extensive customer service, which they did not make money on.
The pros and cons of a single revenue model, as opposed to allowing for flexibility as needed, are the following:
Pros:
- Established revenue model helps the company to select its customers, rather than trying to cater to everyone
- Helps the company with long-term planning. If it has a clear strategy that it follows consistently, then the company would be better able to plan in the long run.
Cons:
- Single revenue model gives less ability to adapt to customer feedback and the changing business landscape.
- Single revenue model requires either Isolde or Emanuel to make a complete turnover in their current approach to business, which could be bad for the corresponding department’s business and cause unrest/uncertainty within the company.
I think that, two merge these divisions, I would try to understand how both the divisions function internally, the values by which they operate, what resources they need to be successful, and what business metrics they prioritize. I would guide them both to understand each other’s business models and values and look for commonalities. I would try to combine resources where tasks are being repeated and allocate resources for separate tasks across divisions fairly and as needed. I would encourage collaboration amongst the two divisions and encourage them to look for opportunities for joint innovation.
