Don't get left behind: The mutual benefits of corporate-startup collaboration

31 May 2024

Gain a strategic advantage through experimentation and partnerships

 

By Cherie Mylordis

 

As the corporate landscape evolves, experimental partnerships between corporates and startups are becoming a central strategy for driving innovation, fostering growth and accessing groundbreaking solutions.

This article explores practical steps leaders can take to cultivate a culture of experimentation and open innovation.
 

The limitations of traditional business thinking

 

Many traditional organisations lie chained to established rules, processes, and internal resources.

Yet the prevailing mindset of 'this is the way we do things around here' is increasingly inadequate in keeping pace with today's rapid market changes.

Such organisations are in a perpetual reactive catch-up, struggling to stay afloat in the competitive tide.

Yet forward-thinking leaders within these organisations are perfectly positioned to disrupt this cycle and spearhead transformative change.

Partnering with startups is one of the easiest and most successful ways to foster innovation
 

The case for experiments

 

Experimentation is a necessity to stay ahead of the curve. And the most successful businesses continually test new ideas, allowing them to adapt swiftly and innovate effectively.

Partnering with startups is one of the easiest and most successful ways to foster experimentation.

 

A case study: Australian Open partners with startups
 

In 2024, the Australian Open integrated six new startups into its Australian Open Startups program.

This initiative is designed to enhance the fan and player experience and streamline event operations through cutting-edge technologies.

The selected startups span a range of fields, including augmented reality, artificial intelligence, and sustainable solutions. By partnering with these innovative companies, the Australian Open aims to elevate the spectator experience with features such as enhanced real-time match analytics, interactive fan engagement platforms, and eco-friendly solutions to reduce the event's environmental impact.

The collaboration exemplifies how major sporting events can leverage the agility and creativity of startups to drive advancements and enrich the overall event experience.

 

A US case study: Drone deliveries by Walmart

 

In a striking example of corporate innovation in the United States, Walmart has partnered with drone technology companies Wing and Zipline to revolutionise its delivery system.

This service, which started in Arkansas in 2021 and will expand across several states in 2024, allows customers within a 10-mile radius of participating stores to receive deliveries via drone.

This experimental initiative not only enhances Walmart's service delivery but also positions it at the forefront of integrating advanced technologies to swiftly and effectively meet evolving consumer demands.

 

Benefits of partnering with startups

 

Collaborations between corporates and startups bring mutual benefits.

Often at the cutting edge of technology and innovation but lacking market reach, startups gain valuable insights and validation through these partnerships.

For corporates, these collaborations provide a conduit to fresh, transformative ideas and state-of-the-art technology, accelerating innovation pathways.

 

Implementing a culture of experimentation

 

Fostering a culture of experimentation doesn't have to be daunting, expensive or time-consuming. Leaders can cultivate this environment by:

• Encouraging teams to tackle meaty challenges and brainstorm innovative solutions together

• Facilitating quick, cost-effective experimentations to test ideas and gather honest customer feedback

• Recognising and rewarding creativity and initiative, promoting a workplace that celebrates fresh ideas

Expanding the ecosystem
 

Perceiving startups and new technology providers as potential allies rather than competitors can dramatically enhance an organisation's capacity for innovation.

And while this might feel like a bridge too far for some corporate behemoths, many others have already embedded this approach into their strategic framework effectively:

• During the pandemic, Pfizer and BioNTech, a biotech startup, partnered up in a race against the virus. Together, they designed, tested, manufactured and distributed a vaccine in record time.

• Toyota formed a global, long-term partnership with Aurora, a self-driving car startup, to develop self-driving technology. 

• Siemens Energy works with Percepto, a startup that manufactures and deploys industry-grade drones, to improve inspection and monitoring of power plants, saving time and increasing employee safety.

Practical steps to foster innovation
 

Leaders eager to embrace experimental opportunities can start by:

1. Defining clear, purpose-aligned problems that resonate with the organisation's core mission.

2. Encouraging diverse teams to think expansively without constraints, focusing on solutions that captivate their customers.

3. Proactively seeking and engaging with startups innovating within their strategic interest areas. Tip: Check out Venture Konnect by Stone and Chalk, a service that connects corporates with startups and scaleups in emerging tech.

4. Conducting targeted experiments to test theories and gain insights from real-world applications.

5. Establishing clear success metrics for each experiment and collaborating with startups to scale successful innovations.

Integrating 'Work in 3D' concepts

 

Adopting the 'Work in 3D' approach—Dare, Ditch, and Dial—can significantly amplify an organisation's innovation efforts.

This methodology encourages daring new visions, ditching outdated practices, and dialling up methods that unleash human potential.

Organisations embracing these principles see remarkable gains in employee engagement, customer satisfaction, and overall impact.

Find out more about Work in 3D
 

Adopting the ‘Work in 3D’ approach – Dare, Ditch and Dial – can significantly amplify an organisation’s innovation efforts

 

It starts today

 

Embracing experimentation and collaborative innovation is imperative in today's dynamic business environment.

Many leading companies in Australia are already leveraging these strategies to stay ahead. Don’t let your organisation be left behind.

If your organisation seeks to cultivate a more innovative mindset or enhance its strategic capabilities, consider nextgenify's innovation workshops.

These programs are designed to dismantle bureaucratic inertia and ignite transformative thinking, positioning your organisation to not only survive but thrive in the evolving business landscape.