How to create a successful Corporate-Start-up Collaboration?

1. How to create a successful Corporate-Start-up Collaboration? Innovation can happen anywhere - at a start-up, within an established organization or even in a garage. Corporates realize that innovation doesn’t always happen in-house. As a result, they have realized the importance of an open innovation paradigm – where they build/buy/partner with a start-up. According to a study by KPMG, 88% of the corporate respondents believe that collaborating with start-ups make them stay innovative. There have been many successful corporate-start-up collaborations over the past years. While some were successes, others turned out to be disastrous. This might be due to various reasons like a lack of mutual advantages, a lack of understanding of the technology that the start-up is working in, a lack of an innovation mindset in the corporate, a lack of trust, etc.. But, there are exceptional cases as well. A corporate-start-up collaboration can open up a new market or a new business model to explore. This will improve the corporate’s brand recognition, which in turn will help it stay competitive. Considering these and other such benefits, how can a corporate create a successful collaboration with a start-up? Understanding the startups & how they differ from a traditional corporate What is a start-up? It is a company started by individual founders or entrepreneurs that aims to scale an innovative business model. So, they differ considerably from an established corporate. ●90% of the start-ups follow no legacy ●Most of the start-ups follow an innovative approach ●Start-ups have a lean team ●More often than not, start-up founders are confident and believe in what they do ●Entrepreneurs adopt a fail fast, learn a fast lean methodology ●Many of the start-ups have limited resources A start-up will have its own strengths and weaknesses, as will an established company, making for an interesting collaboration between the two. So, it is essential to know the start-up before a corporate collaborates with it, in order to measure the prospects in the long run. Creating the right model to define the goal

2. There are many collaboration models that corporates explore, and finding the right model that aligns with the organization’s long term business goals is the biggest challenge. To develop innovative ideas, products, and services, to grow as an innovative company, the corporates should have the right model and it should be the main and focussed goal. All your initiatives are dependent on your determination towards success. Setting up the right framework Once the goals of the corporate-start-up collaboration have been decided on, then comes the task of setting up the right framework for engagement. The legacy or the history of the organization, the resources, the strategy, and the management define the framework of the corporate. It will help the corporate in making better decisions when it comes to choosing the right collaboration model as well as the start-up. Also, long-term collaboration is essential to achieve success in the long run. Avenues to choose the right start-up to collaborate with There are various types of collaborations. The various avenues that a corporate can explore when trying to look for a start-up to collaborate with include - ●The Start-up Pitch ●Hackathons & Innovation Camps ●Partnerships ●Investments Winning the deal No matter which strategy the corporate chooses or focuses on when it comes to collaboration, it is all about succeeding for both the start-up and the corporate. Simplifying the process of collaboration with lenient KPIs, involving the top management to avoid any kind of career risks for employees can be an added advantage. So, the above factors need to be considered before a corporate embarks on a collaboration journey with a start-up to create meaningful business outcomes.