STARTUP OUTREACH

“This defines entrepreneur and entrepreneurship - the entrepreneur always searches for change, responds to it, and

exploits it as an opportunity.

– Peter F. Drucker, Innovation and Entrepreneurship: Practice and Principles

WHAT is it?

Startup OUTREACH program

WHY is it important?

HOW does it work?

A strategy to accelerate innovation and growth by providing early stage companies with access to corporate know-how, mentoring or assets such as capital, IP or market reach

Tapping on the passion, speed and creativity of entrepreneurs is the most efficient way to tackle the threat of industry disruption and turn it to a competitive advantage.

A strategy for collaboration might include idea challenges, accelerator, partnerships or combinations thereof to create win-win opportunities for both startups and corporations.

WHAT is a startup OUTREACH program?A strategy for a larger company or groups of companies and organisations to collaborate with early stage companies or startups in order to accelerate innovation. An Outreach program gives startup companies access to any combination of:

- Seed funding - Technical and business mentoring and know-how - Working space, equipment or other capital intensive physical assets - Data and Intellectual Property - Marketing and distribution channelsEXAMPLES Volkswagen ERL Technology Accelerator http://goo.gl/GBsVwv Barclays Accelerator http://goo.gl/zlcvj8 Deutsche Telekom Hub:raum http://goo.gl/Yix2Q Nike+ Fuel LAB http://www.nikefuellab.com !!!

WHY is reaching out IMPORTANT?Startups are better at fast and radical innovation. There is no more business as usual. Disruption by new technologies and business models threatens companies in every industry.

Startups are fast innovators and adopt new technology, business models and processes quickly. They are led by natural risk takers have less bureaucracy and are not restricted by legacy products and technology.

Startups have quicker time-to-market for new products or services. Technology, product, sales and marketing departments are working closer together in smaller teams. They also have less brand reputation to worry about.

Startups actively look for disruptive opportunities as a way to compete against more powerful competitors.

Collaborating with startups can turn the threat of disruption to an opportunity.

“85% of innovation executives agree collaboration with start-ups and entrepreneurs will drive innovation success in the future”

– GE Global Innovation Barometer 2014

HOW does it WORK?There are a three main ways for larger companies to engage and work with startups. They involve different levels of engagement and time frames. Hybrid versions combining several elements are also coming.

Idea Challenge. Focused on discovering and sourcing new ideas for business or technology. It can be executed as an Open Innovation challenge inviting solutions to a predefined problem. A large company can also sponsor or host a (series of) intensive weekend workshops such as a hackathon, Startup Weekend or Lean Startup Machine.

Accelerator. Time-limited boot-camp style capacity building programs. Selected startups typically get access to co-working space, mentor network and possibility to pitch to investors on a Demo-Day at the end of the program. Seed funding is often provided in exchange for equity in the startup.

Partnership or collaboration. An open model where selected startups are taken in virtually or practically as startups-in-residence. Selected companies are can catapult themselves to the next level by getting access to resources such as know-how, intellectual property, facilities, technology, customers and distribution channels.

“Whatever is worth doing at all is worth doing well.”

– Philip Stanhope, 4th Earl of Chesterfield (1694-1773)

So WHAT NOW?

Engaging with early stage companies is exciting but just like an engagement also filled with responsibility. Before you jump in and start setting up a startup OUTREACH program you need to assess your motivation and commitment. - Do you have a clear view of how both your company and the startups will benefit? - Is your organisation ready to work with a just-do-it, high-speed counterpart? - Do you have an internal champion with influence to drive the initiative? - Are you in it for the long run? - What cultural challenges do you need to address? - What skills and what knowledge do you need to acquire? - Which collaboration model fits your organisation and situation best? !

Remember: one size does not fit all!

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Further reading

ONLINE GE Global Innovation Barometer 2014, Insight on Disruption, Collaboration and the Future of Work - Ideas Lab http://goo.gl/Gcz9v4

Tracking the corporate-supported startup accelerators - innovationleader.com http://goo.gl/112lW9 A list of corporate backed accelerators.

Accelerators Are No Longer Just for Tech Companies - businessweek.com http://goo.gl/4C2bW0

Dancing Giants: Samsung’s Open Innovation Center - pando.com http://goo.gl/TbZGWc

When startups pair with big corporations everyone wins - if you make the right match - fastcompany.com http://goo.gl/2Eq1RD

BOOKS Startup Communities: Building an Entrepreneurial Ecosystem in Your City - Brad Feld http://goo.gl/lnJmik A great read for understanding the dynamics of startup communities.

The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses - Eric Ries http://goo.gl/Ip3U02 A modern startup classic. How to work iteratively build better businesses using the scientific approach (also for big companies!).

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WHO is Hannes?Passionate about creating great products and helping organisations become better at creating them.

Motivated by taking action on new and radical ideas.

Experienced in working internally and externally with large corporates as well as startups from Stockholm to Shanghai.

- Intrapreneur & Entrepreneur - Agile & Lean Startup catalyst, coach and trainer - Certified Scrum Master & Product Owner - Worked at Newsline Group AB, Marubeni Group, Starrymedia Ltd , Boost Agile & Let’s make GREAT! - Speaks Swedish, English, French - Lives in Shanghai (Moving back to Sweden in July 2014) - LinkedIn profile http://cn.linkedin.com/in/hanneshelander/

Skills and experiences in bullets:

I am…

CreditsIcons used in this document Flow Chart by Michael Wohlwend from The Noun Project Redirect by Alexander Bickov from The Noun Project Algebra by Ilsur Aptukov from The Noun Project Geometry by Ilsur Aptukov from The Noun Project Book by David Lopez from The Noun Project