Which markets do Isolde and Emanuel target respectively? How do their respective business/revenue models align with their markets?
Isolde concentrates on the hospital and large diagnostic lab markets. Its revenue model places more emphasis on supplies than on machinery. Due to the fact that these significant hospitals and diagnostic laboratories consistently order the same goods, it offers a reliable source of income. It is more profitable to focus on supplies and provide a low joining rate for the instruments in this market because supplies are regularly used at a high rate.
Emanuel’s business plan is very different. Instead of paying attention to the supply, it places a higher value on the sale of the instruments. This adaptable business strategy fits with his main target market of academic institutions and research facilities. As they do various trials from various brands, those marketplaces aren’t always focused on having the same brand of supplies and are more interested in the equipment.
What are the pros and perils of “imposing the structure of a single revenue model” vs. “letting [the company] continue on its flexible way”?
One pro of “imposing the framework of a single revenue model” include reduced cost as with more business model there needs for more management for both sales forces and operations. One peril of enforcing this system includes the likelihood that the machines or the supplies would be prioritized over the other, potentially alienating a market. However, overall as said in the reading a flexible revenue model would make it simple for the business to adjust to changes in the worldwide market.
Pretend that the 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?
I believe the PM should work as a bridge between the owners. Thus, I will first have a conversation with both Isolde and Emanuel and digest the values they want to persevere. Through our conversation, both department heads can hear about each other business models and the reasons behind them. In addition, this allows us to build consensus on the next steps for strategy and organization moving forward. In this case, each revenue model is highly valuable as it is adaptable and creative and prioritizes the needs of the consumer. Moving forward I will try my best to find a middle ground and offer the same benefit to them.
