How can you co-create value in IT service innovation with external partners?

Finding the right partner to co-create with starts from a mutual agreement that there is sufficient common ground for both entities to collaborate on, both from a technical & commercial perspective. In my experience what is critical for the success of co-creation in addition to the typical contractual terms such as objectives, scope of responsibility, commercial relationship, term of the contract, termination, exit, etc., is comparing the work environment and culture of both partners. More often than not collaborations run into trouble once contracts are opened up. In reality people interact with people and if the culture and values of the companies are similar the resulting co-creation is able to sustain end-customer SLAs and KPIs.

All good in theory but this is a huge ask. Instead of identifying strengths, weaknesses, and gaps, as the cliche goes, a better and more clear methodology is too simply identify what is needed and look at what capabilities you possess and then look at what you need to compliment with. So look at your strengths as related to what strengths are needed. This saves you a lot of time discussing real or imagined weaknesses.

Great thoughts and insights shared by my peers. I would suggest that we first look at the "What" and "Why" .. of what we are doing, or planning to do. What it means is first talk to the Customers / Service consumers to understand their - Pain points - Needs (Should have) - Wants (Good to have) Once we have this information, we then take a systematic approach to define how we solve each one. Technology has evolved significantly in recent past and finding a solution is not a big challenge any more, as long as we have a clear definition of what exactly is the Value that we want to create for our consumers.

My top concerns when co-creating value in IT with external partners are trust and communication. Firstly, aligning goals ensures we're all kicking towards the same posts, just like a unified AFL team. Open, honest communication is key, akin to a crucial post-match debrief in footy, where everyone's input matters. Trust is the cornerstone, built through ongoing transparent dialogue. When trust is solid and communication flows, co-creation becomes our winning game plan for delivering standout IT services.

Kohli and Grover 2011, defined three layers of IT value co creation: relational value, knowledge sharing and assets layers. In my experience the knowledge management aspect of co creation will increase significance. Because of LLMs revolution.

Look for non tangible benefits of a potential partnership. We do a lot of speaking engagements where we mention our partners. This is free PR for them and can be a factor for us in negotiating.

Partnerships are at the heart of the majority of the solutions on IT. Its important have the goals and objectives for the partnership well defined for laying the groundwork for a successful collaboration.

Finding a partner on an equal footing, who shares your visions, mission and dreams, is the be-all and end-all of a partnership.

Always agree to go into the situation thinking win-win for both parties or no deal. However, this has to be structured and documented while allowing for the arrangement to mature and scale as the business and it's relationship develop. Once the vision and objectives are out of the way then let's plan and execute together as the ladder is leaning against the right wall.

Identification of external partners may have to fulfill the following steps: 1. Compatibility of Culture and Values: It is important to assess whether the external partner's culture and values align with those of the company. A good cultural fit can contribute to a smoother collaboration and better outcomes. 2. Track Record and References: Conduct thorough research on the external partner's track record. Request references from previous clients to gain insights into their performance, reliability, and ability to meet commitments.

Trust is key to achieving a real partnership between your organization and external partners (something like vendor + trust + consistent values = partner). Trust cannot be bought or acquired; it may be brought forward from prior relationships, and has to be developed and nurtured over time.

To gain and establish trust and commitment, the company needs to consider the following points: 1. Risk Management and Compliance: Companies need to ensure that their external partners adhere to relevant industry regulations, data privacy laws, and security standards. This may include conducting due diligence and setting up contractual agreements to protect sensitive information. 2. Innovation and Creativity: Look for partners who are not only technically proficient but also creative and innovative. They should be able to bring fresh ideas and perspectives to the table. Clearly defining the above not only ensures trust among parties, but also helps to avoid misgivings.

This would be the smaller / bite size actions that we perform in short term while we also keep creating an exhaustive list of customers asks. Once we have sufficient data on the trends of customers "Wants" evolving into "Needs" over the period of time, we can forecast some more future requirements and work proactively to provide those solutions.

Trust is by far the biggest aspect of these partnerships. Trust needs to be built like any relationship and it takes time and effort. And that's why the sooner we start working with partners the stronger the relationship is gonna get.

Business relationships and personal relationships all the same - expect what you are able to provide. Be the reliable ally that you’d wish to have !

This reminds me of my senior year at Howard University – similar business cases always began with three discrete questions: Who are you? Where are you? Where do you want to go? Co-design and co-production are usually born from market challenges addressed by executives who ask and answer the aforementioned with purpose. Where one finds barriers to market entry, competition, innovation, and market share, others may find niche opportunities through well-managed and scoped joint ventures augmented with a bit of intrapreneurship. While we love being customer-centric in design, successful "co-delivery" requires a competent understanding of a venture’s financial, human, intellectual, social, and cultural capital.

Collaborative Approach: A successful partnership is built on collaboration and mutual respect. Companies should seek partners who are willing to work closely with their internal teams, share knowledge, and contribute to a culture of continuous learning.

1. Scalability and Flexibility: Consider whether the external partner has the capacity to scale up or down as needed. This is particularly important for projects with fluctuating demands. 2. Performance Metrics and KPIs: Establish clear performance metrics and Key Performance Indicators (KPIs) to measure the success of the partnership. This ensures accountability and provides a framework for evaluating progress. 3. Exit Strategy: While it's important to be optimistic about the partnership's success, it's also prudent to have an exit strategy in case things don't go as planned. This should include provisions for transitioning work back in-house or to another partner if necessary.

Continuous Evaluation and Feedback: Regularly assess the performance of the external partner and provide constructive feedback. This helps in course correction and ensures that the partnership remains aligned with the company's evolving needs and objectives. By carefully considering these factors, companies can increase their chances of establishing successful and mutually beneficial relationships with IT external partners for digital innovation.

Co-creation is a continuous and iterative process that requires constant learning and improvement. It is important to reflect on your experience, identify your strengths, weaknesses, and opportunities, and apply your insights and lessons to your future IT service innovation. Maintaining and nurturing relationships with partners is also crucial. Exploring new ways to co-create value with them can lead to innovative solutions that capture greater value, more quickly, and with less risk than traditional product development approaches.

Recommending the book ??Radical Candor?? by Kim Scott here. Nothing is more valuable in establishing trust than directly soliciting criticism and showing you’re open to take action on it. If you can dish it out, show you can take it first ! Keeping a good rapport with partners can be valuable in more ways than one, especially in communities specialized in cutting edge technologies that are tight knit enough already. Leverage their goals you identified, support and promote their businesses, be a partner beyond what benefited you.

Information security is critical when working with external partners. Confidential data must be protected and partners must comply with the organization’s information security policies. A clear agreement on intellectual property and privacy of shared data is also important. To ensure information security, conduct a rigorous assessment of risks, establish clear policies, manage access to confidential data, and have a plan for monitoring and reporting any breaches.

A roadmap would involve: 1. Finding common goal oriented experts or partners. 2. Developing products that help grab market fair share. Increasing partner and your portfolio. 3. Adding customer to your partner list and creating a free dialog community, to over come hurdles as well as target sought after products. 4. Working on more than one solution toward a common destination among teams. To make process efficient.