You have to be able to adapt to your surroundings fairly quickly to survive in the long term. Big corporations haven’t always been famous for their ability to adapt and that is where startups come in. The benefits for big corporations revolve around faster processes and stronger connections to disruptive businesses.
Let’s get right to the point. Big corporations struggle with enabling internal disruptive innovation. That is of course no surprise due to the size, structure and culture of most big corporations. Some like to compare it to the difficulty of steering a huge ship. Startups on the other hand, would be more comparable to a smooth and fast motorboat in this analogy. Their internal ecosystems are significantly faster when it comes to innovation and handling technology, as well as working with existing business models and creating new ones.
By collaborating with startups big corporations have the opportunity to fast track innovation and create truly game changing new products and services. The reason for this is that big corporations simply don’t have the same ability to be flexible as startups have. They have to be much more calculated and are in general reluctant to taking risks. While startups on the other hand, can observe the market, learn from it and quickly evolve and at the same time be bold and take a lot of risks. Risks that often pay off.
New insights and enhancements
To survive in the business world, as we mentioned earlier, you have to be able to adapt to your surroundings. Translated, that means you have to stay competitive. By collaborating with startups big corporations can enhance and develop their existing products. Many startups, especially within the automotive industry, have developed excellent add-ons to existing products within the industry and bringing those in can mean a huge advantage for big corporations.
On top of that, larger corporations can collect valuable insights from startups when it comes to their business models. Startups are seldom just innovative in their products or services, they often have new, creative and effective ways of working that larger corporations can make use of instead of going through their own, often slower, processes.
Access to collaboration with other large corporations
When committing to a collaboration hub or program there will be other large corporations committed to the same cause as you are. There might even be competitive companies within the same industry working together in these communities or hubs. MobilityXlab for example, ties together Volvo Cars, Volvo Group, Zenuity, CEVT, Veoneer and Ericsson, companies which through MobilityXlab collaborate with startups as well as each other.
The collaborations are somewhat enabled by contracts and agreements which makes it easier for the big corporations to participate in the same projects. Meeting other global giants within your own industry and collaborating with them on an equal platform facilitated by a third party is unique and truthfully, really important.
Conclusion? Working together with startups through collaboration hubs speeds up both innovation and development, it’s an effective tool to stay competitive and it creates a platform for fast track collaboration with other large companies.