Energising JV formation processes with cross-sector partners to enter subsea
A JV opportunity to create a new performance based subsea model had been identified by the businesses, but the scope, commercial model and risk/reward allocation were undefined. The JV was at risk of stalling due to a lack of strategic alignment and understanding of the JV value proposition.
Offshore oil and gas
Related Consulting Services
Voice of customer
WSS ENERGY'S APPROACH
From our experience we knew that cross-sector JVs are difficult to establish and the business culture of the JV participants was likely to require careful management. With participants in four countries we prioritised structured communication and a step-by-step approach to build working relationships and momentum. Once this had been established, we used collaboratively designed research to fill knowledge gaps and to build understanding between participant companies. Through careful stakeholder analysis and engagement, we were able to home in on a product/service package and a commercial model which met the needs of all the participants.
Target market identified
End-user engagement interviews
Immediate opportunities developed
Develop an agreed JV value proposition which was shared and agreed by all JV parties. This was achieved through stakeholder engagement, industry interviews and research into the market segments most aligned to the value proposition
Expand the value proposition into adjacent value chains and develop different package options for comparative analysis by the JV parties
Present JV options to the executive teams of the parent companies in three different countries. This face-to-face engagement was vital to build support for the JV and to ensure that all senior stakeholders were fully aligned
Develop commercial and financial model for the JV including equity structure, working capital, revenue forecast, debt and requirement for additional partnering