Jitendra Kavathekar: Managing Director, Accenture Open Innovation Madhu Vazirani: Thought Leadership Senior Principal, Accenture Research Tuesday September 8, 2015 Harnessing the Power of Entrepreneurs to Open Innovation
Jitendra Kavathekar: Managing Director, Accenture Open InnovationMadhu Vazirani: Thought Leadership Senior Principal, Accenture Research
Tuesday September 8, 2015
Harnessing the Power of Entrepreneurs to Open Innovation
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of Fortune 500 companies have disappeared since 2000, mainly due to the disruption of traditional industry models by digital technologies.
of revenues of large companies expected to be generated from digital products and services in the next 3 years, up from 16% today (Source: Accenture Research)
Markets are being disrupted by digitalThe last decade saw start-ups and entrepreneurs disrupt traditional markets.
In the next ten years, large companies will use digital to disrupt markets themselves.
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Large companies and entrepreneurs must learn to collaborate effectively
The good news is that large and small companies show every intention of collaborating with multiple parties
How important will collaborating with these stakeholders be in driving your innovation & growth in the next 3 years?
“82% of large companies say they can learn from entrepreneurs about how to become a digital business” Source: Accenture Research
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And both camps see the benefits of working with each other:
• Collaboration based revenues at large companies will jump from 9% today to 20% in 5 years
• 82% of large companies say they can learn from entrepreneurs about how to become a digital business
• 46% feel the need to work with entrepreneurs to be sufficiently innovative
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The nature of collaboration must change
“How can I create an ecosystem of partners collaborating on equal terms?”
“How can I get others to help me do what I already want to do?”
From bilateral collaboration done on the terms of large companies, to more open ended collaboration with multiple parties
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The journey to Open Innovation
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Ecosystem Innovation: The power of platforms
Ecosystem innovation represents a shift to an external mindset in which risks and rewards are shared mutually. It demands greater levels of digital collaboration in a wider ecosystem.
“There will be more than 100 new digital industry platforms from non-tech companies by 2016” (IDC)
“In 2013, 14 of the top 30 global brands by market capitalization were platform-oriented companies” (MIT)
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But large companies and entrepreneurs do not see eye to eye
CommitmentEntrepreneurs and startups are four times more likely to say their large company partners lack commitment than corporates are about their smaller collaborators
Source: Accenture Research
Culture
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How culture compares
Source: Accenture Strategy
Comparative cultural trends between startups and large companies
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Eyes on the prize
NEXT 5 YEARS: 20%
Proportion of large companies’ revenues generated by collaboration with startups/entrepreneurs
TODAY: 9% Spillover effects on economic growth
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Taking action
Large companies• Visibly embrace collaboration
top-down
• Define and budget for success
• Seed an “intrapreneurship” culture
Entrepreneurs• Align to the market
• Adapt culture
• Time it well
Governments & policy makers• Develop co-financing models
• Incent collaboration between large companies and startups
• Create collaboration networks
• Encourage a borderless physical world
Bridgemakers• Open up access to supply
chains
• Accelerate the network effect of role models and mentors
• Bridge the cultural gap
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Accenture Open Innovation As A Service
Start-ups• High risk• High charge velocity• Delayed economic value• Seek disruption
Global 2000 Companies• Immediate economic value• Low risk• Low change velocity• Look for guided disruption
Open InnovationTech Labs
Emerging Technologies GroupGrowth PlatformsOperating Groups
DeliveryAccount Teams
Accenture as a bridgemaker
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Accenture Open Innovation as a serviceDiscover-Validate Operationalize-ScaleEnvision
Define Digital Strategy
Rapid business model & technology ideation for digital products, services & experiences
Prototype, launch, and manage digital products, services and experiences
Future of the Industry
Build MVP(s) Identify and implement new digital capabilities, embed as core in the organization
Your role in the future
Validation (Market, Technology, Organization, Partners)
Gap analysis – Technology, Organization, Operations
Kick-start Innovation Program – team, funding, mandate, exec sponsorship
Develop and execute transformation roadmap and operating model across culture, structure, process and technology
Define Innovation Strategy
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Be a Catalyst to Change to Open Innovation