Unparalleled Partnerships: Lessons from Formula 1 Racing
At the core of successful partnerships, whether in av technology or in f1 racing, we find some common philosophical commitments
When it comes to AV technology, successful systems integration requires strong partnerships between various stakeholders, including integrators, manufacturers, industry partners and even competitors. With the kickoff of the Formula 1 (F1) season and popularity of "Drive to Survive," one can't help but see the parallels between F1 racing and building/maintaining unparalleled partnerships in the AV industry.
The AV industry is constantly evolving. To succeed within it, integrators must build and maintain strong partnerships. Those partnerships come in several permutations - for example, integrators and manufacturing partners, integrators and industry partners (e.g., commercial real estate and land developers), and even integrators and competitors.
In the world of racing, partnerships between teams and various stakeholders are equally critical. Teams must work with suppliers (e.g., engine manufacturers and tire suppliers) to build their cars. They must also work with industry partners (e.g., race organizers) to ensure the smooth running of each event. Additionally, teams might work with competitors to share information and improve their own performance.
The Core of Successful Partnerships
At the core of successful partnerships - whether in AV technology or F1 racing - lie effective communication, a commitment to continuous improvement, complementary capabilities and trust. Let’s consider each one in turn.
Communication: Effective and recurring communication is essential to building and maintaining successful partnerships. In the AV industry, this could mean sharing information about a project's status, challenges and potential solutions. For example, when commercial real estate and land developers share that contracts are no longer closing or canceled, that is critical information for the integrator. That information allows integrators to adjust their forecasts and adapt to the changing market conditions. Likewise, a failure to communicate supply-chain deliveries can turn the tide for both the integrator and the supplier. There is a domino effect when a supplier doesn't provide transparent communication.
In F1 racing, communication is equally critical. Effective communication between the drivers, engineers and pit crews ensures everyone is working toward a common outcome. Teams, regardless of the industry they work within, must communicate with stakeholders to ensure that necessary support is provided on time.
Commitment to Continuous Improvement: A commitment to continuous improvement is crucial to achieving unparalleled partnerships - particularly where technology is rapidly advancing. This common commitment is often the tie that binds partners in industries. To enhance their performance, partners should continually evaluate and improve every aspect of their partnership. Being committed to continuous improvement reflects a willingness to quickly adapt to changes in the industry, as well as to meet evolving customer expectations. For example, at one time, the concept of integration was a novelty; now, however, all-in-one systems are becoming common.
A commitment to ongoing improvement and a willingness to work with partners changed the face of AV. Today, improvements in Wi-Fi, LEDs and OLEDs, cloud-based technology, AI and internal processes impact integrators. Sharing knowledge within a trusted network benefits AV integrators, suppliers, manufacturers and cross-industry partners. It helps to refine processes, maintain profitability and deliver better outcomes to clients.
The commitment also enables integrators to keep a competitive edge and provide clients with the latest and most innovative solutions. In a manner similar to what we see in racing, teams analyze data, refine techniques and implement small changes to achieve their desired outcome. Ultimately, a dedication to incremental improvement leads to success and the ability to stay ahead of the competition.
Complementary Capabilities: Successful partnerships rely heavily on complementary capabilities. Integrators with a partner network that complements their business bring a range of skills and expertise, and this makes them more successful. For example, if an integrator is seeking insight into how best to integrate an esports center, another integrator that has experience can share lessons learned. This type of strategic partnership allows competitors to recognize the value of sharing industry in-sights. Likewise, unparalleled partnerships lie at the foundation of integrators achieving rapid growth. For example, when an AV integrator can rely on a partner to round out its low-voltage offering, it increases the opportunities for new construction projects. Additional partners can include flooring, security, acoustic-treatment experts or high-rigging companies.
We see something similar in F1: Complementary capabilities are demonstrated in the relationship between teams and their engine suppliers. Teams like Red Bull Racing and AlphaTauri have formed prosperous partnerships with Honda Racing Corp., which has given them a competitive edge.
Althought our industry is highly competitive, even the largest integrators built themselves on partnerships rooted in leveraging complementary capabilities.
Trust: Trust is the cornerstone of any successful relationship, whether personal or professional. There must be trust that everyone is loyal, holding in confidence information shared among the network. (For example, workarounds for a product supply issue that has cost integrators millions of dollars in profit or loss of clients.)
It’s essential for there to be trust that everyone in the network - from service providers to deployment partner - has the network’s best interest in mind. Also, there must be trust that any partner will treat your customer as though they were their own. Trust is essential in a champion’s business partnership.
Taken together, the racing circuit provides many valuable lessons for successful partnerships in the AV industry. Finally, rounding things out with these critical factors to achieving success and forging unparalleled partnerships is the desire to win, which lies at the heart not only of F1 but also of successful business partnerships.
By adopting these principles, integrators can develop strong relationships with their manufacturing partners, industry partners and competitors, resulting in long-term success and a champagne celebration for everyone involved.