Traditional BD
"Partnerships" is an evolving field, distinct from traditional "business development" due to its broader scope. Traditionally, business development encompassed Business Development Associates (BDAs), typically early in their careers, tasked with outreach to various sales targets. Once a prospect became a lead, it was handed over to the sales team, usually under the oversight of a Chief Revenue Officer (CRO). Business development functioned as a hunting mechanism fueling the sales team.
Technical Integrations
Around 2018, with the increasing prevalence of technical integrations, business development began to expand. It now includes product partnerships teams focused on distribution. For example, when I worked at Affirm in 2018, the product partnerships team ensured the Affirm app was available in e-commerce app stores. By then, Affirm was already integrated into Shopify, Magento, and WooCommerce app stores, a precursor to today’s embedded integrations. These technologies are embedded by default into distributors' platforms, just like Affirm is a default payment method within the Shopify ecosystem now.
Embedded Distribution
A more recent example is OpenAI’s distribution strategy for ChatGPT. OpenAI has built ChatGPT to integrate seamlessly into numerous platforms such as Slack, Microsoft Teams, and cloud storage apps. Administrators can choose a programming language and framework, install the OpenAI Python library or JavaScript package, initialize the ChatGPT model, make API requests, and implement the chat interface on their website. This design facilitates distribution and growth as a standalone product.
Partnerships Today
These technological advancements have significantly impacted partnerships teams. Larger companies (1,000+ employees) often have dedicated partner managers for each integration. For instance, integrations with Salesforce, Magento, and Shopify require dedicated support. Beyond product partnerships, there are alliance teams managing relationships with consultants and system integrators. However, the systems integrator field is waning due to self-service e-commerce platforms like Squarespace, Wix, and Shopify.
Looking Ahead
Looking ahead, I predict partnerships teams will likely shrink as technologies like ChatGPT continue to integrate distribution by design. This shift toward self-service will reduce the need for human expertise. While automation will streamline partnerships teams, there will always be a need for professionals to set growth strategies and manage relationships, ensuring the discipline remains relevant.
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