Cooperation between companies and Startups through established models that is known as Corporate venturing (CV) generates mutual benefits such as: innovation, commercial capacity, value creation, stability, scalability among others. For this reason, more companies are deciding every day to take formal paths to generate this collaboration, to accelerate the digital transformation, to retain existing customers or to win new customers by differentiating products and services. However, the path is not that easy, so the following 5 points should be considered before starting an initiative from Corporate venturing.
1. It’s not just about the CEO
This is how you start a successful cooperation program Startups, Senior management should be considered, but having one is also important sponsor locally, which streamlines processes, opens discussions and motivates teams that benefit in the long term.
It is important that the middle managers or department heads come on board. You will implement the strategy that includes the balance between the daily work and the initiatives planned for the business areas of the open innovation areas or the resume. It is an issue that requires significant cultural preparation and commitment from managers who undoubtedly have the focus on the company’s results and operations.
2. Real knowledge of the core business
The Vein Business is not what the company is good at, but the reason why you have customers, for example them Vein Disney is the ability to entertain through interesting stories. It has built an empire around this asset, with animation and film studios, sports channels, theme parks, television channels, and even real estate companies.
- Read: What is the Corporate venturing (when David and Goliath team up)
To the existing possibilities around the Vein Companies must first be clearly defined, investigate and consider the reasons why customers prefer one company to another, or analyze the company Tasks to do with depth. If the Vein and it is clear to the entire company that it is much easier to find outside innovations from the hand of Startups to strengthen, maintain and expand it.
3. The company doesn’t always know what it wants
The business units are very clear about what they want: cheaper suppliers, faster workflows, more efficiency and customers. However, if a corporate venturing unit only focuses on solving these problems, it is mortgaging its own future. The Startups and technologies enable the company to take the next step and rarely hide behind the challenges defined by the divisions, management, or even the company.
For example, instead of answering, “What solution could workers be more efficient with?”, The question from the CV unit should be “What will the Work to be done the region in the future and how to get there job Faster? “. This is the difference between a purchasing unit and a corporate venturing unit. It is not to be assumed that all the company asks for is what it really needs.
4. It is a game of risks and rewards and should be treated as such
A resume program is part of the company’s survival and transformation efforts. It’s not without risk – what if the solutions aren’t correct? How can I ensure that the program is returned?
When financial investments are made, they are diversified so as not to jeopardize the entire budget at once. There is one portfolio logic you should think about: keep it healthy and diversified. Successful companies have a mix of corporate venturing mechanisms (e.g., Challenges, CVC, and Venture building) Some allow you to explore the future, others allow you to generate returns in the short or medium term. The perfect match depends on the ecosystem, culture, goals, industry and the company’s capabilities.
5. It is a synergistic relationship, not hierarchical
One of the most common mistakes is to assume that by making their intentions public, companies will attract thousands of exceptional entrepreneurs willing to work together and unilaterally choose who to work with. In reality, there are many companies competing for a limited number of companies Startups out of the ordinary.
In addition to having a clear and differentiated value proposition for the CV program, it’s important to consider a synergistic relationship: the company doesn’t choose the Start up;; the good ones Startups They also choose companies, they are so focused on their growth and development that joining a resume program often has less of an impact than continuing to exist Roadmap.
Planning and running a program of Corporate venturing Defining the mix of collaboration mechanisms is no easy task. You can look for allies like Wayra, Telefónica Movistar’s business innovation arm. Every year more companies take the next step, contribute to the enrichment of local and regional ecosystems and open the door to better opportunities for everyone involved in order to attract ever better startups.
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