HLB International - Thought Leadership: Strategic Partnerships
Human-centered partnerships in a technology-driven world
In the midst of current technological upheaval, established organisations are forging collaborative alliances to accelerate innovation and mitigate the risks associated with rapid technological change. In a recent dialogue HLB's Head of Technology Partnerships, Amy Spillard, and Hype Innovation’s Chief Innovation Consultant, Colin Nelson, put the urgency to innovate into perspective.
Technology is evolving at a pace never seen before, reshaping entire industries and disrupting traditional business models. No industry is immune to the pressure to innovate as this tide of change sweeps through the economy. The accounting software sector is no exception, with startups sprouting daily and established suite providers like IRIS and CCH racing to integrate AI and automation into their platforms.
This rapid change unlocks immense growth opportunities. Yet, the sheer scale and complexity of these technological leaps make it challenging for firms to navigate and capitalise on them effectively.
Amy Spillard
HLB's Head of Technology Partnerships
Colin Nelson
Chief Innovation Consultant, Hype Innovation
Why third-party partnerships are on the rise
Burdened by their agility-stifling size, established businesses are increasingly replaced by younger, more nimble companies. Approximately half of the S&P 500 companies have disappeared in the past 15 years, and it is estimated that half of today's S&P 500 organisations may not survive the next decade. [1] "The speed of technological progress is so fast that, increasingly, if you try to develop something in-house, the market's changed by the time you've got that thing ready," Nelson states.
Accounting firms are also embracing this strategic shift, increasingly turning to third-party vendors — those agile, adaptable companies equipped to keep up with the pace of technological advancements — to stay ahead of the curve.
How deeper relationships enhance success for networks and vendors
By collaborating with external partners, networks and firms can accelerate their innovation cycles and prioritise speed and agility, over the outdated belief that owning exclusive intellectual property is essential for innovation.
Together with the rapidly changing technology landscape, the vendor-customer dynamic is also changing. Today, these new strategic partnerships are fundamentally about fostering human-centred relationships, moving away from the old-fashioned transactional interactions, focused solely on product delivery.
In an era where size can be a liability and agility is crucial, organisations are refining their ability to identify core strengths and suitable business partnerships. Vendors typically contribute technological expertise, while firms within the network offer an extensive captive audience who can share valuable insights and feedback. As a result, deeper collaboration ensures that software solutions are both technologically robust and aligned with the evolving needs of the firms.
Sourcing and collaborating with external entities is increasingly important, but a robust framework is essential for building and navigating these relationships effectively. This framework should set clear boundaries between in-house capabilities and areas designated for external collaboration, establish a centralised repository for all innovation activities to ensure consistent information flow, and facilitate continuous scouting for new potential partners. Unlike in the past, when sourcing new partnership opportunities typically began with a Google search, we now have sophisticated tools to identify potential partners with more ease and precision.
But the role of technology does not stop there. For example, tools powered by AI and data analytics enable organisations to gain market insights and develop flexible strategies to meet the needs of a diverse global network. Technology can also address international and cultural nuances, helping firms to localise products and services across regions, and align them with local preferences and regulations by adapting language, user interfaces, and product features.
Still, effective partnerships go beyond technology. They require collaboration across multiple teams – from R&D and innovation to legal and compliance – to ensure that all aspects of the partnership are considered and managed effectively.
HLB's work with vendors
Initiatives like HLB’s Affinity Programme demonstrate this modern approach to building long-term relationships between technology vendors and network firms.
Designed to streamline the identification and engagement of strategic partners, the programme aims to enhance the network's technological capabilities by fostering deep relationships with external organisations, including technology vendors, institutions, associations, and strategic partners.
Firms within the HLB network are increasingly willing to share challenges and opportunities with the broader world, either securely or in a semi-restricted manner. The Affinity Programme enables our members to communicate these needs to partners, connect software vendors with the appropriate contacts within the organisation, and manage these interactions at scale. With access to external partnerships established through the programme, firms can leverage specialised expertise without incurring the overhead costs of in-house development.
Deeper partnerships foster innovation and agility within our network, enabling firms to respond swiftly to market demands and technological shifts. They accelerate time to market and enhance the scalability and adaptability of solutions across diverse global markets. Through continuous feedback, firms share challenges and objectives, helping vendors refine their solutions iteratively. This collaborative approach ensures that software solutions evolve with industry trends, driving mutual success for all parties involved.
[1] Source: McKinsey & Company. “The pairing that can ensure an incumbent’s survival”, June 2019