What are the Advantages of Collaboration and it Meaning

Meaning of Collaboration and it Advantages.

This is a situation/arrangement whereby two or more separate business owners come together to provide services that in most cases are inter related, note that this is different from partnership.

Collaboration is the process of two or more people or organizations working together to realize or achieve something successfully.

Eg A Hair dresser, make up specialist, a cake maker and a caterer can collaborate to provide services for someone who is getting married. They are not partners and will be paid separately for their services.

Collaboration is very similar to, but more closely aligned than, cooperation, and both are an opposite of competition. Teams that work collaboratively can obtain greater resources, recognition and reward when facing competition for finite resources.

ADVANTAGES OF COLLABORATION

1. Financial – the financial benefits of being part of a network can include an increase in sales, submitting a joint tender to win larger contracts or a reduction in costs by sharing resources.

2. Human capital – the benefits to staff can include developing employees’ skills and abilities, safe-guarding jobs, increasing employment and encouraging staff motivation.

3. Physical capital – the benefits of being part of a network can have an impact on the physical capital of the business by supporting the sharing of facilities, equipment and raw materials.

4. Intellectual capital – the intellectual capital of a business can benefit through informationsharing, engagement in collaborative research and development, and design activities. They may avail of other companies’ complementary strengths, capabilities a and also share best practice.

5. Develop new processes – joining a network can support a business to develop new or innovative products, processes or services.

6. It may help increase company knowledge of a marketplace to help them identify potential new customers and allow them to compete more effectively.

7. Business networks may provide member companies with access to resources that would otherwise be beyond the scope of a single business.

8. Individual businesses can face a number of limitations when trying to compete with big firms. Through collaboration, businesses can often complement each other and specialize in different areas to compete in markets usually beyond their individual reach.