Our Refined Approach Towards Business Matching
Our methodology is corroborated by Moghaddam and Nof (2017) in their book Best Matching Theory & Applications, where the concept of matching is defined as a fundamental process that occurs naturally in any system where there is interaction.
As such, finding the best match is crucial for survival, whether in natural or artificial systems. Business matching is a business collaboration with other businesses, including collaboration between suppliers, distributors, retailers, and customers. Through this collaboration, a business can establish linkages and dependencies with one another in the context of business development and have sustainable competitiveness. The stages of business matching can be described in a graphic scheme which include:
The business matching procedure (Kurniadi, 2021)
The scheme above is a procedure that explains the stages of business matching activities. As such, our methodology for business matching is built upon a comprehensive understanding of the key factors that drive successful collaborations between businesses. Drawing from the latest research in the field, we have developed a methodology that combines best practices with a deep understanding of the unique challenges and opportunities present in different markets and industries.
To support our methodology, we draw upon a range of literature sources from leading organizations such as the International Finance Corporation (IFC), the United Nations Industrial Development Organization (UNIDO), and the International Trade Centre (ITC). Through this approach, we ensure that our methodology is grounded in the latest research and best practices in the field of business matching.
The breakdown of our methodology:
Understand Client’s Profile and Business Model
Presentation on the industry outlook
List of go-to market strategy for the company
Company profile write up and translation
Understanding a client's profile and business model is critical in business matching. By having a clear understanding of a client's industry outlook, we can better assess their needs and identify potential matches. This approach can help to improve the likelihood of successful business collaborations that lead to long-term partnerships.
Academic research also supports the importance of understanding a client's profile and business model in business matching. For example, a study by Ilke Kardes, Gokhan Ozertan, and Aslihan D. Spaulding found that business matchmaking can lead to increased exports and greater economic benefits, but only if the process is tailored to the specific needs and characteristics of the businesses involved.
Therefore, it is important to understand a client's profile and business model before embarking on business matching activities. This includes conducting a thorough analysis of the client's industry outlook, competitive landscape, and key success factors. By doing so, we can better identify potential partners that align with the client's goals and values, through matching or adjusting ideas, concepts, vision, and mission, as well as business models according to values, culture and economic climate.
2. Understanding from the client the go-to-market strategy
Report on industry
Shortlisting of go-to-market strategy for the company
Understanding a client's go-to-market strategy is crucial in business matching. It allows us to identify potential partners who can complement the client's strengths and help to achieve their business goals. By aligning the client's go-to-market strategy with their partners, we can increase the likelihood of successful collaborations and long-term partnerships.
According to a report by PwC, companies that adopt a collaborative approach to business can gain a competitive edge in the marketplace, achieve greater innovation, and accelerate growth. This is because partnerships allow businesses to access new markets, customer segments, and expertise, and to leverage resources and strengths.
In addition to industry reports, academic research also supports the importance of go-to-market strategy in business matching. For example, a study by Raji Srinivasan, Kalyan Raman, and Richard P. Bagozzi found that a firm's market orientation affects its likelihood of successful collaboration. Therefore, understanding a client's go-to-market strategy is critical in identifying partners that share similar goals and values.
Furthermore, the Harvard Business Review notes that successful partnerships require shared vision and values, as well as complementary strengths and resources. By understanding a client's go-to-market strategy, we can identify partners that align with the client's vision and values, and that can contribute to long-term success.
By shortlisting and aligning a strategy with potential partners, we can improve the likelihood of successful collaborations and long-term partnerships.
3. Crystalise qualifying criteria of potential business partners (Leads)
List of qualifying criteria and profile types for potential business partners
We require a clear understanding of the qualifying criteria and profile types of potential business partners when it comes to business matching. This will ensure that the leads generated are of high quality and aligned with the client's business goals and objectives. With key decision-makers of the client’s organization, we will devise a criterion (a short list of not more than 7) to arrive at a decision of traits required in a potential partner. Thereafter, we will also assign weights to each precedent to determine the exigency of each criterion.
Qualifying criteria may include factors such as the size of the business, industry expertise, geographical location, and financial stability, reputation of product or service provider among others. By identifying these criteria, we can ensure that we are targeting businesses that are a good fit for the client and have the potential to form a long-term and mutually beneficial partnership.
It's also important to consider the different types of profiles that potential business partners may have. For example, there may be companies that are looking to expand their customer base, while others may be seeking to enter new markets or diversify their product offerings. By understanding these profiles, we can tailor our approach to the specific needs and goals of each client in finding a potential partner.
4. Generate a list of potential business partners based on selection criteria
List of leads generated through Simple Group’s database, network partners and third-party database
Generating a list of leads based on selection criteria is an important step in the business matching process. We utilize our extensive database, network partners, and third-party databases to generate a comprehensive list of potential business partners for our clients. By doing so, we ensure that our clients have access to a diverse range of opportunities that align with their specific criteria.
According to a study by McKinsey & Company, businesses that effectively identify and engage with their ideal customers or partners experience higher revenue growth rates compared to those that do not. Furthermore, a report by Accenture states that utilizing data-driven strategies for lead generation results in a higher conversion rate of leads into actual business deals.
Our process involves collecting and analyzing data on potential partners to ensure that they meet our clients' specific criteria. This includes factors such as industry, company size, location, and revenue, among others. We understand that the business matching process can be time-consuming and challenging, which is why we leverage our expertise and resources to make it as seamless as possible.
5. Qualify leads
List of qualified leads after going through due diligence
Qualifying leads is a crucial step in business matching as it helps to ensure that the identified potential partners meet the required standards for a successful collaboration. Going through due diligence involves conducting a thorough investigation of the leads to verify their qualifications, reliability, reputation, financial standing, and overall suitability for the proposed partnership.
By doing this, it ensures that the client's time and resources are focused on high-quality leads that have a higher probability of successful collaboration. This also helps to mitigate any potential risks or negative impacts that may arise from partnering with unsuitable businesses or individuals.
There are several benefits of qualifying leads in business matching. According to a study by the University of Minnesota, lead qualification helps to increase the efficiency and effectiveness of partnerships, resulting in higher conversion rates and increased revenue. Additionally, qualifying leads also helps to build trust and confidence between potential partners, which is crucial for building a strong and successful partnership.
Hence, this ensures that the identified potential partners are suitable and have a higher probability of a successful collaboration.
6. Finalise leads
List of finalised leads
The finalised leads are the outcome of the rigorous selection criteria, due diligence and negotiation with potential partners to ensure that the partnership will stand to be mutually beneficial. Due diligence here is done through an established and reliable process in which we perform quantitative and qualitative analysis on each partner, such as cost of implementation. projected return on investmenst, ease of implementation, duration of implementation, impact on staff morale etc.
This also saves time and resources that would have otherwise been spent on unfruitful negotiations or partnerships that are not aligned with the client's goals and objectives.
7. Schedule and facilitate business matching
Scheduling and documentation of business meetings between client and business partners
Outcome and rationale for the suitability of the selected partner
In line with our business matching activities, we schedule and facilitate a face-to-face meeting between two business actors. The investors/agents/larger business actors will improvise more by discussing technical business details that will involve many distribution networks. This is called direct discussion with business partners (suppliers, distributors, customers, etc.) before making a decision at a one-by-one meeting. After the series of models above, the last is the final transaction such as the signing of an MoU or work contract.
There is much emphasis on the importance of communication and transparency throughout the business matching process. By facilitating open and honest discussions between businesses, we help to build trust and foster an environment of collaboration and innovation.
At the heart of our methodology is a commitment to identifying potential partners and collaborators that share similar goals and objectives. Through careful analysis of a business's strengths, weaknesses, and resources, we can pinpoint areas of overlap and create a framework for collaboration that is both sustainable and mutually beneficial.
In summary, a successful methodology for business matching combines a deep understanding of the key factors that drive successful collaborations with a commitment to best practices and ongoing learning. It enables businesses to build sustainable, meaningful partnerships that drive growth and innovation.
International Journal of Business Information Systems Strategies (IJBISS) Vol.10, No.1/2/3/4, November 2021 - Business Matching Model
24th International Conference on Business Information Systems - Optimisation-based business process model matching
Innovations in Smart Cities Applications Volume 4 - An Efficient Collaborative Filtering and Graph Approach for Business-Matching System
Business Partnership Essentials: A Step-by-Step Action Plan for Succeeding in Business with a Partner by Dorene Lahavi