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Breaking the Mold: BD as Your Company's Innovation Lab

Men asking "What do you do here?"

In the ever-evolving landscape of technology, Business Development (BD) has emerged as a crucial function, playing a pivotal role in driving growth and innovation. As companies strive to stay ahead of the curve, BD professionals act as strategic advisors, forging partnerships, and facilitating collaborations that unlock new opportunities and propel businesses to new heights.

The R&D / Skunk Works for GTM

At its core, BD serves as the engine of growth for tech companies, driving revenue and expanding market reach. BD professionals act as internal consultants, working closely with cross-functional teams to identify new business opportunities, evaluate potential partnerships, and develop winning strategies for go-to-market (GTM) execution.

In this capacity, BD functions as a "skunk works" for GTM, fostering a culture of innovation and experimentation. By challenging the status quo and exploring unconventional approaches, BD teams can identify new revenue streams, expand into new markets, and create value for both the company and its partners.

Example:

  • Google's BD team played a key role in the development and launch of Android, the company's mobile operating system. By forging partnerships with handset manufacturers and mobile carriers, Google was able to quickly establish Android as the dominant mobile platform.

The Cat Herder in Chief

In addition to their strategic role, BD professionals also excel at building and managing relationships. They act as "cat herders in chief," bringing together diverse stakeholders, including partners, customers, and internal teams, to align on common goals and drive successful outcomes.

This requires exceptional communication and interpersonal skills, as BD professionals must navigate complex relationships, understand the needs of all parties, and build consensus. They must also be adept at managing expectations, resolving conflicts, and ensuring that all stakeholders are satisfied with the outcome.

Example:

  • Microsoft's BD team played a key role in the company's acquisition of LinkedIn. By building relationships with LinkedIn's leadership team and understanding their vision for the future, Microsoft was able to successfully negotiate a deal that was beneficial to both companies.

Help Separating Signal from Noise

In the fast-paced world of technology, it can be challenging to separate signal from noise. BD professionals play a crucial role in filtering through the vast amount of information available, identifying relevant opportunities, and assessing their potential impact on the business.

This requires a deep understanding of the company's strategy, products, and target market. BD professionals must also stay abreast of the latest industry trends and technologies, in order to identify new opportunities and emerging partnerships.

Example:

  • Salesforce's BD team played a key role in the company's acquisition of Slack. By identifying Slack as a leader in the enterprise communication market, Salesforce was able to make a strategic acquisition that expanded its product portfolio and strengthened its position in the market.

Supporting Complex Relationships

In the tech industry, partnerships are often complex and multi-faceted. BD professionals play a vital role in supporting these relationships, ensuring that they remain healthy, productive, and aligned with the company's goals.

This involves managing expectations, resolving conflicts, and ensuring that both parties are satisfied with the partnership. BD professionals must also be able to adapt to changing circumstances and ensure that the partnership remains relevant and valuable to both parties.

Example:

  • Amazon's corporate BD team plays a key role in managing the company's relationships with its many third-party sellers. By providing sellers with the tools and resources they need to succeed, Amazon has been able to build a thriving marketplace that benefits both buyers and sellers.

Building Important Relationships Before They Become Urgent

One of the most important roles of BD is to build relationships with potential partners before they become urgent. By proactively identifying and engaging with potential partners, BD professionals can create a pipeline of opportunities and ensure that the company is well-positioned to take advantage of new developments.

This requires a proactive and strategic approach, as BD professionals must identify potential partners, understand their needs and goals, and develop a compelling value proposition. They must also be able to build trust and rapport with potential partners, in order to create a strong foundation for future collaboration.

Example:

  • Netflix's BD team has been proactive in building relationships with content creation companies around the world. By investing in original content and building strong relationships with creators, Netflix has been able to secure a steady stream of high-quality content for its subscribers.

Inorganic Growth

In addition to organic growth, BD can also play a crucial role in driving inorganic growth through mergers and acquisitions (M&A). BD professionals can help identify and evaluate potential acquisition targets, negotiate deals, and integrate acquired companies into the existing organization.

This requires a deep understanding of the company's strategy, financial position, and risk tolerance. BD professionals must also be able to assess the cultural fit of potential acquisition targets and ensure that the deal will create value for both companies.

Example:

  • Facebook's BD team has played a key role in the company's acquisition of Instagram and WhatsApp. By identifying these companies as leaders in their respective markets, Facebook was able to make strategic acquisitions that expanded its reach and strengthened its position in the social media landscape.

Conclusion

In conclusion, BD is a critical function in the tech industry, playing a pivotal role in driving growth and innovation. BD professionals act as strategic advisors, building relationships, and facilitating collaborations that unlock new opportunities and propel businesses to new heights.

By understanding the role, function, and evolution of BD, tech companies can leverage this powerful function to achieve their strategic goals and remain competitive in the ever-evolving digital landscape.

“The single biggest driver of business impact is the strength of an organization’s learning culture.” – Josh Bersin

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