Choose your world: Where do you sell or procure?
The world of business is divided in two: The world of Products and the world of Projects.
- PRODUCTS are mass-produced. They are commodities and low- value. They are found in B2C and B2B. This is the world of TRANSACTIONS.
- PROJECTS are tailored to each client and high-value. They encompass High-Tech Products, Systems, Services, and Solutions. They are found in B2B/B2G. This is the world of client-supplier COLLABORATION.
And the approach towards doing business in these two worlds is fundamentally different: They both require specific mindset and methods to succeed.
The more a product is unique, complex, high value, the more client-supplier collaboration is needed, within a Project.
The World of Project Business
At first glance, these projects may look very diverse : they take place across various sectors, various forms, various sizes, and are based on various technologies.
Despite this apparent diversity, they all share common characteristics: Recognizing these characteristics is essential to understanding what makes Project Business a unique space, with a specific business approach to apply.
Project Business is about selling, or procuring, high-tech Products, Systems, Services, and Solutions. It is a capital expenditure into capital goods, services and projects. The purpose for clients is to improve their operational capabilities, and remain competitive. Project Business is a technical, organizational, commercial, social and business challenge, for all involved.
The 4 Characteristics of Project Business
Project Business has four characteristics, that are shared by both suppliers and clients . It is always:
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NEW: Projects are always unique and non-repetitive. This involves degrees of innovation, risks, and changes.
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MULTI: Projects are always multi-stakeholders, multi-functional, multi-technical, cross-organizational.
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HIGH STAKES: Projects are always important, or strategic, for all those involved. This creates tensions, politically, socially, and financially.
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CRITICAL AT THE START: Projects run over 3 phases (Development, Implementation, O&M); the Development (pre-contractual) phase is always where most of the project is shaped.
These characteristics make that Project Business is always complex endeavour, for both clients and suppliers. Complex to procure for clients, and complex to sell for suppliers.
This inherent complexity can only be solved by having the client and the supplier working together.
Project Business is inherently a collaborative endeavour. Collaboration is mainly established in the development phase, i.e., before any contractual relationships.
Why do we fail in Project Business?
The lack of collaboration in the pre-contractual phase is always the root cause of failures in Project Business.
Collaboration is the best approach to succeed in Project Business
A project cannot succeed without collaboration between a client and supplier. They both win or fail together. Its success depends on the ability of client and supplier to collaborate with each other, already in the early stages of the project.
Once we recognize that Project Business is based on collaborative approach between a client and supplier, we can establish the right strategy and organization to deliver.
In Project Business, collaboration is not an option: it is a must! Collaboration is the best approach to succeed, for both a client and supplier.
But how to manage collaboration and make it a systematic approach? This is the purpose of Managed Collaboration™!
In Project Business, a client and a supplier are interdependent; they cannot succeed on their own and need each other to succeed. Clients and suppliers are the two sides of the same coin. Project Business is fundamentally a collaborative endeavour.
LAW 1 in the Code of Collaboration:
Project Business is a matter of collaboration. Project Business is not just a simple transaction. A client and a supplier depend on each other to succeed in the project. Be a partner, not just a supplier or a buyer.
How to manage collaboration in Project Business?
If you are in Project Business, you are in the right place at IBS Academy. We are specialist in Project sales, Project procurement, and collaboration between the two.
A practical manual for MANAGED COLLABORATION: How to build collaborative client/supplier relationships in B2B Projects and Solutions
Building collaborative relationships is the key in Project Business.
This manual shows you how to do: This is Managed Collaboration.
Success in Project Business depends on your capability to build collaborative relationships with your business partners, clients or suppliers. In the fast-paced, ultra-competitive 21st Century, this capability has become a key competitive advantage. For organizations involved in “buying” or “selling” B2B Projects and Solutions, collaboration is no longer a mere social competence, mastered by certain charismatic individuals. It is a strategic capability, embedded into their organization, enabling them to build up highly effective collaborative relationships with their B2B partners in a structured, organized and repeatable way, early in the project lifecycle. And to perform more consistently in their B2B Projects and Solutions.
This manual is the How-To guide to engineer collaborative relationships and to win your projects. At the start. This is of interest for all those involved in B2B Projects and Solutions, including in particular: Executives, Procurement Managers, Sales & Business Development Managers, Project Managers, Marketing, Bid-, Tender Managers, Technical specialists, Consultants, Commercial & Contract managers, Lawyers, Public authorities, Developers, Financiers.