Topics In Demand
Notification
New

No notification found.

Boardroom 3: Unlocking the Value from start-ups- A Corporate view
Boardroom 3: Unlocking the Value from start-ups- A Corporate view

May 6, 2019

1752

0

Ganesh Natrajan, Executive Chairman and Founder of 5F World

Ganesh Natrajan,
Executive Chairman and Founder of 5F World

Themes of Discussion:

– How can smaller companies scale and partner with larger companies?
– Is there a value for large companies to engage with start-ups? How do we engage?
– What are the Best practices and Dos and Donts while engaging with start-ups
– What do members in the discussion believe start-ups and young entrepreneurs can do faster, better, cheaper and more innovatively when compared to doing it in large organizations.

What fundamentally differentiates start-ups from large organization?

– Large companies begin with resource allocation rather than looking at areas of problem they looking to address. Start-ups can focus on problem statement, which is more exciting.

Potential Areas of Collaboration
– Larger companies and especially mid companies, with limited budgets, can look to start-ups as their nimble and innovative partner  which helps them in outsourcing R&D and new solution development.
–  Large companies could provide a sandbox for start-ups to implement their solutions and even invest in start-ups (Invest in 10 start-ups, 8 fail, 2 succeed and take them off – a ROI approach)
– Mostly Start-ups are not fully aware about the complexities of the market in which they enter. Despite which they look to create value. Large companies can hand-hold these start-ups to take the product/service to the masses.
– Large companies are willing to invest in start-ups and fail rather than doing it internally. It is much easier to do it that way. Incubation centres  are a strategic move by large corporations to harness the power of innovation globally.
– Due to agile nature of start-ups, large companies can look to contract start-ups to address customer issues relatively quicker when compared to having internal team address the same issue. (Models: Joint IP, System Integrator or own a stake in the start-up)
– A leading online payments company used India’s start-up ecosystem for product discovery/market research to identify a product best suited for India market.
– One of the world’s largest retailers gave access to Data and other assets to start-ups to help them train their AI algorithms.
– Joint go-to market to address large company’s customer problem.

Use cases:
– A leading NBFC has worked with a large software major to identify multiple start-up hotbeds across the world like Israel, the US, Singapore, London and India and set-up a formal process to identify start-ups who could participate in their ecosystem.
– Many of the GICs in India are open to partner with the start-up eco-syste,m.
– Large software firms are also beginning to support and invest in start-ups and take them to market with their solutions

Challenges
– Scaling a start-up beyond the point where solving the initial problem on which the start-up was formed becomes both difficult and challenging.
– Biggest Challenge for large companies to associate with start-ups is that of mentorship. Most companies fail to mentor the start-up founding team to drive them in the right direction.
– Certain amount of maturity is required from large companies to look at start-ups. Most companies are plagued with regulatory framework and gatekeepers that prevent the start-ups to move. Large companies need to have a strong tech mindset and support innovation at the start-up level..

Other Points
– Start-ups are more willing to experiment and without worrying on scalability. This approach allows them to be more innovative.
– Start-ups have higher risk appetite than large companies. They keep adapting and re-inventing during the progress.
– Large companies have institutionalized mindsets while start-ups have beginner mindset. Most large companies approach problem as we’ve already addressed it.
– An Indian IT major uses innovative solutions offered by start-ups for addressing internal issues and/or efficiency improvement.
– To look at Start-ups, Large companies need to develop a culture that foster innovations.

What is expected of Nasscom?

– Many large companies are still wanting to learn various ways to associate and engage with start-ups. They have joined India Angel Network not to invest but to learn.
– NASSCOM can be a valuable bridge between large and small and pave the way for a global exemplar in collaborative innovation.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


communityadmin

© Copyright nasscom. All Rights Reserved.