Unlocking IoT Growth: The Power of Strategic Partnerships

Over the past several years we have seen a shift in the market to increasing businesses fostering collaboration and partnerships…

The traditional mantra of 'Build it and they will come' is being reshaped by a new paradigm emphasizing the power of strategic partnerships. Rather than relying solely on individual efforts to grow & attract customers, businesses are increasingly recognizing the value of collaboration. Strategic partnerships offer a pathway to accessing new markets, utilizing industry expertise and creating enhanced joint value for mutual customers & markets.

Challenges in IoT Initiatives

In today’s interconnected Internet of Things ‘IoT’ landscape, strategic partnerships are at the core for driving long-term sustainable growth. IoT deployments may require 2-3 or more ecosystem partners to collaborate for a successful project, and businesses who try to go it alone are often overwhelmed due to several key factors:

• Complexity of Solutions – expertise is required across diverse IoT domains like hardware, software, connectivity, data analytics, security & deployment.
• Regulatory Compliance – meeting regulatory requirements for IoT deployments when it comes to devices, modules, wireless cellular technology & local market compliance.
• Changing Market Dynamics – continuous adoption and innovation to keep pace with rapid IoT technological advancements & evolving market in the IoT landscape.

Strategic Partnership Trends

As more and more companies look for new ways to innovate within the IoT sector, businesses are forming strategic collaborations with their partners – IoT & Cloud Hyperscalers  (KORE and Google Cloud),  Energy & Smart Cities (Schneider Electric and Cisco) and Manufacturing (PTC and Rockwell Automation).

According to a recent survey by Boston Consulting Group (BCG), 53% of executives surveyed stated that the adoption of strategic partnerships & alliances is a top priority over the next three years. Another study by MarketsandMarkets, highlighted that strategic partnerships and collaborations among IoT players are going to be critical and a key factor in driving IoT market growth in the next five years.

In the simplest of terms there are two primary strategic partnership types you can pursue:

• Go-to-market (GTM) Partnership – the key focus with your partner is to drive joint revenue, gain access to complementary new markets and offer an enhanced value proposition to your customers demonstrating the strength of each other’s offering. A key with a GTM partnership is a joint co-sell motion, collaboration on account planning, co-marketing and utilization of co-resources.
• Technology / Solution Partnership – this is an integration of Partner A’s technology with Partner B’s end solution, to provide a more comprehensive market offering or enablement of unlocking new use cases.  In this instance there will be a greater dedication on technical and product resources and with Partner A relying on Partner B’s GTM and sales enablement. So, there will still be elements of joint co-marketing, collateral and messaging.

Navigating Partnership Success: Critical Steps & Pitfalls

Often businesses fall into a common pitfall of referring to certain customers as partners when in essence the relationship is a traditional transactional one, where one party sells to another. Here there is no deeper strategic engagement, no joint GTM motion and no deeper technology/solution integration. This can hinder genuine collaboration opportunities where mutual growth and benefit may exist.

To ensure the success of a partnership it is critical that time is invested upfront before a legal agreement is even drafted, sometimes critical details are overlooked during the excitement of two entities coming together. Here are the top 7 important pointers for partnership success:

• Evaluation of the Partner or Collaboration (what is the vertical/industry pain point you’re solving for)
• Joint value proposition
• Define shared goals and role and responsibilities
• Determine required investments
• Create a business case with the joint revenue / cost drivers (how does each party make money)
• Highlight key performance indicators (KPI’s) how will you measure success of the partnership
• Identify the GTM motion to be adopted (what resources/stakeholder sponsorship is required)

There is a common expectation that both parties expect immediate output while minimal input has been invested, once the partnership agreement has been finalized this is when the hard work starts. It is important to establish regular communication/escalation channels and frequency with your counterpart team. This ensures momentum and the platform to remove any barriers to success.

Join Us in Shaping the future of IoT Collaboration

In summary, the evolving IoT landscape emphasizes the pivotal role of strategic partnerships in driving sustained growth and innovation. With a focus on collaboration, businesses can access new markets, leverage expertise, and create enhanced value for mutual benefit. 

KORE with its industry leading IoT solutions, global connectivity and proven track record in the IoT sector, understands the intricacies and challenges of this rapidly evolving IoT ecosystem. By fostering strategic collaborations, we aim to unlock new opportunities & business models, whilst driving mutual growth, ensuring our partners stay ahead in the competitive IoT market. Let's embark on this journey together towards innovation and collaboration in the world of IoT. Find out more on our website.

By Shin Gill – VP Commercial Strategy & Strategic Partnerships (KORE)