- Borrow Innovation & Outsource Experience
- Startups crave for big leaps and enterprises crave for small improvements
- If startups do not innovate daily, they may not endure the unforgiving turbulence of the market
- Can an Enterprise collaborate with a non-competing startup and learn?
As always, adults crave for the fearlessness of kids and their seemingly extraordinary way in which they think and look at a situation with their boundless imagination. On the contrary, kids look up to these powerful, independent adults capable of doing tasks outwardly superhuman for kids. I think this is how startups and enterprises look at each other. Startups crave for big leaps and enterprises crave for small improvements.
Startups are innovation factories. There, every day is an alternate thinking workshop, kaizens are a way of working, and a day begins with new ideas from finance, operations to supply chain, and customer service. There are no bureaucratic bounds, of ‘do it only this way’, or ‘follow this template’, etc. etc…
As a matter of fact, if startups do not innovate daily, they may not endure the unforgiving turbulence of the market. On the other hand, enterprises invest billions to save! Ideation workshops in an exotic resort, hiring expensive consultants, printing banners, launching tagline…. all this, to get small ideas.
Why can’t a ‘symbiotic’ relationship be developed between these two contrasts?
An example of such a symbiotic partnership is L’Oréal’s Open Innovation Program. L’Oréal is asking, “Is your startup ready to co-create the future of Beauty with us?” [Reference: https://www.lorealopeninnovation.com/#success-stories]
“Open Innovation at L’Oréal is a dynamic mix of bringing external and internal ideas to transform the way consumers interact with beauty. This means establishing lasting connections with beauty & tech startups. Together we want to create a new generation of innovative beauty products, devices, and digital services”
Can the ‘big guys’ collaborate with a non-competing startup and learn?
Learn how to save and, how to do things differently? For instance, a small machining shop that worked hard to identify or develop a cutting tool or technology that improves quality and reduces scrap/cost can be approached by a non-competing machining enterprise to ‘borrow’ this innovation from them. Now, in reciprocation, of course, pay the startup, but also, watch industry head-winds for this raft (startup) to stay afloat and thrive. Moreover, help startups to pick up soft skills, statistics, LEAN, etc. of which these startups can only dream to acquire at their adolescence.
This give-and-take, in my view, will (a) strengthen industrial development, (b) reduce cost, (c) help startups earn extra, (d) develop a skilled and competent workforce at a fraction of the investment from both sides. Summing up, the industry can learn from multiple mutualisms we see in nature to navigate today’s uncertain and ever-challenging circumstances.