Disruptive innovation is not getting there. So let’s understand what is blocking them…
Corporations’ challenges to innovate
Corporations are usually efficiency-driven, process focused, and structurally rigid.
The core-business always comes first. With a pressure to deliver short-term results, and a focus on extracting value from the activities the company already excels at, corporations leave little to no room for any kind of breakthrough.
Efficiency demands structure and rules. With a long, convoluted bureaucratic process the communication and decision-making process is extremely slow. So much so that when the new product is ready to launch, the market has already changed and all the resources invested are practically lost – it’s a harsh reality, and we’ve been there.
If you’ve ever worked on a corporation, we are sure you’ve heard the expression “we just need to align it with the other department”. It might seem harmless, but combined with the other barriers and internal politics it can kill or severely hamper innovation, affecting employees’ morale in the race for a breakthrough.
This whole scenario – combined with high profile success cases from young entrepreneurs – has put corporations at a disadvantage to attract and retain high-potential, innovative talents, who are increasingly interested in joining a startup or launching their own venture, regardless of the risks involved.
Startups’ roadblocks to succeed
Startups usually have very limited resources, high customer acquisition costs and lack sector know-how and data.
A new model of innovation and collaboration will arise. Welcome to the corporate venture building revolution.
Walls between corporations and startups will come down, combining their best attributes: a startup’s agility, culture and flexibility with a corporation’s reach, experience and resources.
Together they will create a new breed of startups, which will be far more competitive than their predecessors, and will be able to grow faster, dramatically improving survival rates and generating truly disruptive innovation while addressing market’s medium and long-term opportunities.
This is how corporations and startups mutually benefit one another: