Wednesday, May 21, 2014

Concept of Jointness in Business

Jointness in Business


The construct of Jointness is known for a military application and the need for globally integrated operations.
As described in the Capstone Concept for joint operations: joint force 2020:
"... The military force is only one element of national power. In many cases strategic success will turn on the ability to operate in concert with the rest of the U.S. Government and nongovernmental partners."

The Jointness has arrived also in the business area as we can see in a couple of M&A deals that have been reported in the last weeks.

The obvious example is the jointness in the Novartis-GSK case. That two companies are trading assets (literally, swapping) in a mutually coordinated effort to optimize their respective portfolios: 
      1. Novartis buying GlaxoSmithKline’s cancer drug business
      2. GlaxoSmithKline buying Novartis’s vaccine business

So that the two companies are combining their over-the-counter pharmaceutical and consumer drug business businesses