A Deloitte survey found that 75% of startups consider corporate partnerships very important.Partnership will enable startups to help with faster response strategies
Post-pandemic digitization means companies need to innovate, collaborate and partner faster. Specifically, startups and corporate partnerships.
A Deloitte survey found that 75% of startups consider corporate partnerships very important. Large companies bring domain expertise, networks, distribution channels, customers, and resources, but they also need the speed, hustle, and new technology that startups bring. Additionally, after partnering with a startup, a large company can maintain a contingency plan even in the event of unforeseen crises such as supply chain hurdles and cyber security implications. According to reports, companies typically base their response action plans on time-consuming and outdated strategies. The partnership will enable startups to assist with faster response strategies.
In addition, the partnership will not only create a solid foundation for both companies to grow, but also allow for the growth of the ecosystem in which the companies operate and serve diverse groups of people.
Partnership benefits are not limited to one industry. Large companies in multiple sectors can see enhanced workflows by partnering with startups.
Companies can rent out facilities and resources to provide a convenient testing ground for startup growth. Meanwhile, start-ups can also open up new opportunities for scaling and revenue generation by improving the core services of their enterprise organization and incorporating new technologies.
Aerospace: India’s aerospace and defense (A&D) market is estimated to reach around $70 billion by 2030, buoyed by infrastructure improvements and government boosts. Corporate-startup partnerships in the aerospace sector can significantly expand the space tech ecosystem as they offer a unique blend of corporate R&D efforts and startup agility and technology. Start-ups can use the corporate research and test facility to drive their own breakthrough concepts, including disruptive satellite technologies such as solar arrays, payload management systems and fuel saving tools. Additionally, business entities can use their technology to fine-tune their overall resources and services.
Healthcare: Medical tech start-ups working to develop enterprise solutions, such as digital health tools, or the latest innovative consumer electronics, such as smart wearables, are among the largest contributors to healthcare companies. Leverage your geographic reach, patient portfolio, and business operations. Meanwhile, large healthcare organizations can use the purpose-driven modern digital tools provided by these start-ups to upgrade their legacy systems and efficiently deliver quality healthcare services.
Automotive: Today’s vehicles are packed with technology-driven features such as infotainment systems, weather sensors, and digital braking hardware. Additionally, the onslaught of electric vehicles has put auto companies in a fierce race to develop the best energy storage and powertrain technologies. The global automotive technology market is expected to grow by US$151.8 million between 2022 and 2026. Automotive companies therefore need technology partners to innovate, increase business flexibility and make bold decisions regarding the uncertain and unpredictable future of the automotive/EV sector. The agile new start-up brings agility to the rapidly evolving transportation sector and offers technology solutions that can greatly assist the automotive industry. The company’s products include driver automation tools, engine monitoring systems, and networking channels for both customers and employees.
To build an effective corporate-startup partnership, both sides need to have effective management plans and products in place. The goal should not only be to leverage each other’s resources, but also to add mutually beneficial value while expanding and coordinating the ecosystem.
Companies first need to develop a better understanding of the startup ecosystem (including culture, innovation strategy, etc.) and vice versa. This can be effectively achieved through his hub of innovation. The Innovation Hub provides training for cultural change and internal entrepreneurship, as well as open innovation programs. Organizations, leaders and teams must embrace an entrepreneurial spirit of change and uncertainty to form small, collaborative and agile teams. If this is in place, partnerships can add a lot of value to each other.
Additionally, the Innovation Hub accelerates startups and enhances the workflow and technical capabilities of key organizations. A key focus of today’s innovation hubs is design thinking. They offer a co-educational system of researchers, business founders, and industry experts to ensure that training program participants form the most convenient partnerships.
Another important step is that startups and companies need to develop communication strategies that are functionally helpful when making business decisions. A clear, concise and transparent communication model from top-level management ensures that their interests are on par and will bring out the best in the partnership.
It’s time for corporations and start-ups to partner and embrace the complementary aspects of both. Companies have plenty of cash to help them weather future storms, but startups need the agility and on-the-fly resources to keep them alive in today’s volatile times. It has the ability to evolve and is the path to today’s resilience.