The only four reasons why you should collaborate with another organisation

Collaboration is “the act of working together to produce something”. Over the last ten years it has been billed as a magic bullet, and like so many magic bullets, it has become unfashionable to question why, how and if we achieve value from it. Which I think is a mistake that has eroded our understanding of it, and lead to the current magic bullet view.

In a previous post, I outlined what you can get access to when you collaborate. Just because you can though, it doesn’t mean that you should. There are four reasons that I think make collaboration worth consideration:

  1. You need something faster than your organisation can deliver it.
  2. Developing or acquiring what you need in-house is too expensive.
  3. Your organisation cannot create what you need because of regulations.
  4. You’re looking for the capability to become a customer.

Under any other circumstances, you should seriously question the need to collaborate. Collaborating is a build or buy decision that has to stand up to a cost-benefit analysis. If your organisation can deliver what you need fast enough and at a market competitive price, without violating any regulations, what justifiable reason do you have for collaboration?

Author: Karl Melrose

Thinker about how to think about economics, security, risk, technology and incentives. Out to solve every optimising problem, out to make sure my thinking gets better, every day.

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