Create an innovator friendly business ecosystem to accelerate business transformation
The dynamics and rules of engagement between large companies and nimble innovators are changing. This change is driven mainly by two factors. Firstly, by the dramatic increase in venture capital investment in tech and other startups, e.g. $34Bn in 2019 or +40% vs 2018 in EU alone, making them less dependent on investments from potential customers. Secondly, founders have become more experienced and understand better what kind of organizations are most likely to help them generate revenue.
The challenges to building partnerships with startups
Obviously, even when innovators are better funded, they still need customers to test and utilize innovative solutions. However, their increased confidence means that they are becoming more selective with whom to engage with and on which terms. Today’s reality is they have more choice. They have choice simply because there are so many companies, both large and mid-sized, that need to inject into the businesses breakthrough ideas and innovations to drive growth. CEOs and Executive team members understand that the best way to accelerate and broaden innovation portfolio is by capturing solutions straight from the source of their development.
Ironically, as the innovation ecosystem matures, we are seeing an increasing number of successful scale-ups choosing not to work with certain Corporates. Why? Because they realized that what initially seemed as the most promising way to grow and scale up, in reality, requires too much effort, takes too long and leads to limited (if any) revenue growth. Today, they more willingly engage with tier 2 industry players. The preferred partners adopt a mutually beneficial approach to create a joint engagement, making efforts to accelerate internal processes and allow space not only for testing and learning, but to do business together.
Corporate partnerships are essential to winning a competitive advantage
When it comes to large Companies, there is a burning platform for many of them (especially for those whose organic growth barely reaching +3%) to build new sources of competitive advantage. To do this they have to become more attractive for innovators. And the more they create an environment for mutual partnerships with smaller innovators, the sooner they will capture disruptive market growth.
Successes of Diageo with Thinfilm, Coca Cola with Winolo or Telefonica with Social & Beyond clearly indicate that there is a huge potential of driving competitive differentiation by bringing together Scale and Innovation.
Drive change management today through open innovation
Expert innovation consultants at Innopearl believe that the CONNECTED POWER of entrepreneurially minded executives from Corporations with nimble innovators can creatively solve the most challenging problems, releasing the POTENTIAL TO UPLIFT positive impact from successful business partnerships.
To capture the breakthrough solutions, Corporations need to create a business environment attractive for innovators starting today. The Innopearl unique value proposition can help you achieve this.
Olga Guerous, CEO of Innopearl
CEO of Innopearl, the pioneer in the development of partnerships between large FMCG Companies and small, nimble Innovators. In the past she demonstrated strategic and inspirational leadership to accelerate business transformations and deliver superior business results in multi-billion FMCG companies (Danone, PepsiCo, Mars Inc), Healthcare industry (Novartis) and Technology consultancy (HRS).
Recognised for her original thinking, perspective and unique insights.
Member of LEAD (Leading Executives Advancing Diversity) Switzerland Chapter enabling the advancement of women in their companies.