Managing partnerships
Evaluating a potential partner’s strategic fit, technical expertise, adaptability to regulatory changes, and cultural alignment upfront is key to making informed partnership decisions. Once the choice is made, these actions can help companies manage partnership risk while realizing the expected benefits of the collaboration.
1 | Make contract language specific
Define the operating model early and avoid broad contract language. A partnership agreement (or partnership contract) should lay out terms for sharing IP or assets; not necessarily the ownership of that IP or asset, but the permission to use it. In the case of a software partnership, a joint development agreement should specify the need for nondisclosure agreements (NDAs) and defined IP ownership clauses.
Partnership agreements tend to be less binding than an agreement to form a joint venture (where you’re contributing assets to a jointly owned company) or in outright mergers and acquisitions but are no less important for defining the boundaries of the partnership.
2 | Install technology safeguards
When entering partnerships, especially those involving sensitive data or proprietary technology, it is crucial to implement technological safeguards to protect IP, maintain data security, and ensure operational integrity. These safeguards might include data encryption, secure application programming interfaces (APIs), containerization, and access control. We recommend using a secure software development lifecycle that includes code reviews and vulnerability assessments to identify and fix security issues.
Reinforce technical measures with legal agreements, such as NDAs and specific clauses in contracts that outline data security responsibilities and consequences for breaches.
True protection comes from designing the integration itself to minimize code or data sharing. But developing and testing an incident response plan to quickly and effectively respond to security breaches or data leaks can mitigate potential harm.
3 | Navigate the “paradox of openness”
Companies must strike a balance between sharing enough information and collaborating openly with partners and protecting their own IP, sensitive data, and competitive advantage. While partnerships are crucial to innovation, they also expose companies to potential information leakage or misuse.
This requires strict operational discipline at layers below the partnership agreement. Front-line employees and engineers must collaborate with partner counterparts but stay disciplined in what is too sensitive to share.
4 | Monitor, measure and audit
Implement comprehensive logging and auditing systems to monitor data access and usage. Regularly review logs for unauthorized access or unusual activities. Conduct regular security assessments and penetration testing to evaluate the security posture of systems and networks involved in the partnership.
Measuring success in AV involves various metrics that reflect technological progress, market readiness, safety performance, and financial viability. Return on investment can be tracked across three vectors to measure the success of the partnership:
- Technical progress such as safety performance and intervention rates within a defined operational design domain.
- Speed to market measured by launch or permit timelines.
- Capital efficiency such as cost per validated or supervised mile.
As the industry is still developing, there is no universal benchmark yet for evaluating success.
5 | Reassess
Review the partnership annually to ensure continued strategic alignment, evaluating quantitative and qualitative measures to determine whether it is delivering value to all parties involved. Does its work and product align with the key objectives initially outlined? Are you making progress toward these shared objectives? Is communication and trust in place for fruitful collaboration?
By taking these steps, autonomous vehicle companies can reduce the risk of data breaches, protect their intellectual property, and maintain trust and accountability within partnerships.
