Israel Business Management

How many different companies have touched the computer that I sit at as I type this blog entry.

The obvious ones are HP (the manufacturer) and Office Depot (the retailer). But, there are so many components that are built by different companies and even the completed solution from the time it left HP until it made it to me touched at least a distributor (or an importer, in this case).

A number of years back, Andy Grove stated that vertical integration was the new way of the world. Vertical Integration was the same thing that my mother told me years ago - anything that you are going to do, do to the best of your ability. Andy believed in this and if you could not do it well, you should partner with someone else that can do it in a world class fashion.

Today, people have looked to outsourcing as part of this strategy. Experts can reduce cost and deliver the goods at a cheaper price point then some company that does everything.

Vertical Integration is the multi-partner strategy that companies need to embrace. Your solution, no matter how broad, is only a piece of the customer's needs.

Let's take my computer as the example. I needed a new PC, as my old one passed on to a better place (I hope). So, I went with an HP laptop. It met my price point and had the performance features I wanted and needed.

HP certainly has done a good job of multiple partnering. They use Intel for a processor, NVIDIA for a graphics card, Microsoft for the operating system, Altec for speakers, etc.

HP designed the solution, managed the manufacturing and delivered a quality product.

But, after I got it home, I still needed all sorts of software, which had been on my old computer, and trying to use migration software for applications is dodgy, at best. I needed to install software like MS Office. I had a DVD of MS Office 2007, but had no idea where my license key is/was. I needed to find it on the dying system. I had to find all sorts of other utilities that I like or need.

HP's view of multi-partner is good, up until the point of delivery to the user, but they still are not completing the whole solution as the PC is just one part of my overall home computing experience: router, DSL modem, printer, other PCs.

As a vendor, do you think about just how to get your solution into the customer's hands, maybe the logistical part of the solution? If so, you probably are already using a multi-partner strategy, maybe without realizing it?

But, what happens when you or your partner walk off site after installation of your product/solution? Do you know how that completes the customer's needs? Are there other partners that you could include in the process to do a better overall job for the customer?

Maybe with a multi-partner strategy, "the more, the merrier" is really the new world order.