Strategic or not?

Most companies that sell their products and services to other business would like to see themselves as 'strategic partners' of their clients rather than mere 'suppliers'. 'Strategic' confers value and importance - as opposed to the interchangeable commodity nature of a 'supplier'.

But what does strategy really mean? Corporate Strategy deals with the issues around which business a company should be in and how it will best succeed. How can the company achieve a long term sustainable competitive advantage? Strategy issues encompass vertical and horizontal integration as well as divestment options. Where are the edges of the company? What should the corporation do internally and what should it purchase externally?

A strategic partner would have to have relevance in these options and decisions. So can Space Database be considered a strategic partner? I believe that SDI can play a strategic role as an outsourcer. We take care of data management and allow real estate companies to focus on core competencies. We can boost marketing and management effectiveness while reducing costs. In this sense the integration of Space Database services as part of the design of the corporation is a strategic choice.
On the other hand, is the role that Space Database plays big enough to reach the attention of C level executives? In many cases not - we're really not an exciting enough side of the business!

I think we may be a lot like UPS. United Parcel Service is a stodgy old company that delivers parcels - how boring is that? less well known is UPS supply chain management business. Modern manufacturing and retail businesses are, at their core, closely integrated supply chains. Just In Time manufacturing concepts demand that slack and inventory be driven out of these systems. Competitive advantage no longer exists within the factory or the store walls but is embodied in the effectiveness of the supply chain. And UPS knows how to get millions of items to millions of destinations in the most efficient manner possible. Many companies have outsourced this key element to UPS: http://www.ups-scs.com/consulting/strategy.html - but it would still be embarrassing to call UPS your strategic partner!

Space Database also manages a supply chain - a supply chain of information. The flow of accurate and timely information to, through, and from a real estate company has become a critical aspect of competitive performance. We should be like the humble UPS - toil away at our simple service and never let on how essential we really are.

After all, using Space Database should not a 'strategic choice' - it's only common sense!