Innovating Together: How Strategic Partnerships Accelerate Product Development

By Adebisi Saheed Adeniyi

Technology has changed the world in no small way. From the way we communicate to how we do business; technological innovation has transformed every aspect of our lives. With this transformation has come the demand to deliver new products and services at an unprecedented rate. Tech companies are constantly under pressure to shorten the product development cycle without compromising on quality and innovation. The insatiable demand places a lot of pressure on even the most well-resourced organizations, which is where strategic partnership comes into play. By leveraging the expertise and resources of partner companies, tech firms can significantly reduce their go-to-market time while also improving the overall quality of their products.
The benefits of strategic partnerships in the tech industry are well-documented. Collaboration allows organisations to combine their strengths and overcome technical and sometimes, financial challenges, that may have proven difficult to surmount. However, for partnerships to thrive, the visions and goals of the collaborating parties must align as it is crucial for the long-term success of the arrangement.

A prime example of this is the partnership between tech giants, Samsung and Google for the development of innovative Android operating systems and a slew of hardware. The collaboration has allowed both companies to leverage each other’s strengths – Samsung’s market dominance and manufacturing expertise, and Google’s software prowess – to deliver cutting-edge smartphones, tablets, laptops, and other wearable devices to consumers around the world.

In Nigeria, the partnership between telecommunications giant, MTN and various financial technology (fintech) companies has catalyzed the growth and adoption of mobile financial services. These partnerships have shortened the product development cycle and brought about new solutions for the underbanked population in the country. These collaborations have helped the parties involved to combine skills and reach new market segments rapidly.

A common denominator in these partnerships is the abundance of innovation and dynamism it has fostered. When companies work together, they bring their diverse skills and resources to the table, leading to advanced solutions that they may not have been able to achieve individually. Again, MTN comes to mind. Their vast network and telecommunications infrastructure have combined well with the specialized financial knowledge of fintechs to not only deliver innovative solutions but also deepen financial inclusion in rural areas.

Partnerships are not without their challenges, of course. Besides the aforementioned alignment of goals and vision, the partnership must be equitable to both parties rather than it being a case of the stronger exploiting the weaker. Smaller tech companies or start-ups may feel like they are being overshadowed or taken advantage of, especially if they have to rely on larger partners for resources, expertise, and market access.

Equally important is the need to clearly define the parameters of the collaboration from the onset. This includes the delineation of roles and responsibilities, establishing a clear decision-making process, having clear intellectual property and revenue-sharing agreements, and putting up proper governance structures to guide the arrangement.

In Nigeria, there is a vast opportunity for strategic partnerships in key sectors such as banking to help accelerate the financial inclusion ambitions of the government. Although there may be hurdles to scale in this regard as the willingness of incumbents to partner with startups is not yet at the desired level, the disruption that the latter has brought into the sector makes it only a matter of time until we begin to witness a change of approach by incumbents.

In all, as the tech landscape becomes more competitive and the demand for innovation grows, strategic partnerships will become increasingly important. The fact that they offer a way for companies to not only speed up their product development cycles but also to create more innovative, higher-quality solutions will continue to make them attractive. Whether in Nigeria as we are witnessing with financial technology or globally as in the case of Samsung and Google, the efficacy of partnerships is undeniable.

Adebisi Saheed Adeniyi is a product and partnership manager at Softcom Limited with over 4 years of experience in fintech.