SPJIMR and Founding Fuel teamed up to presented a sneak preview of the research findings on how Indian companies are working with startups. Case studies include Wipro, Tata Group, Future Group, Mahindra Group and Marico This presentation was part of SBAC2018 held in Mumbai Jan 20, 2018
4. India Inc’s Innovation
Journey
• Strategic goals and customer needs
determine the journey
• An iterative process
• Start small, pilot and scale
• Five case studies
4
1. Innovation models
for a fast changing
technology landscape
2. Bringing the power of
the conglomerate to
innovate together
3. Infuse digital
transformation by
bringing in
entrepreneurial talent
6. Models of Innovation
360 0
Partnerships
$100mn
Venture
Fund
Joint
Solutions
Internal
Open
Innovation Crowdsourcin
g Platform
Academic
Partnerships
Topcoder
Tel Aviv University
Showcase
Proactively
Strategic
investments in
select focus areas
Sell to- Buy
from- Innovate
with
Hackathons, idea
portals,
competitions
Photo by William Bout on Unsplash
7. Learnings
• Form a core team that facilitates
the process
• Lines of business own the goals
• Customers need and business
goals determine partnership
models
• Open innovation is a change
management process
Photo by Štefan Štefančík on Unsplash
8. Work in Progress
• Drive wider adoption of this
approach in the organisation
• Build a stronger framework to
drive trust between partners
• Build better models for
measuring value creation Photo by The Climate Reality Project on Unsplash
9. Tata Group
Bringing the power of the group
companies to innovate together
Source: tatainnoverse.com
10. Models of Innovation
• A central innovation unit facilitating
innovation teams in group companies
• Creation of an open innovation
platform – Innoverse
• Consortium based approach for
projects within group companies
• Project based partnerships with
startups
• Innoverse in its third season of
challenges in 2years of existence
• Over 40 challenges
• Prize money Rs.3L +
• Participation from a quarter of the group
companies
• Over 30 start up have participated
Source: tatainnoverse.com
11. Learnings
• Get early buys-in
• Be aware of IP building vs solutions
• Build awareness internally to drive adoption
• Startups can be expensive too!
Source: tatainnoverse.com
12. Work in Progress
• Overcoming the “not-invented-
here” syndrome
• Identify start-ups that can scale,
take risks and invest in resources
Source: tatainnoverse.com
13. Future Group
How do you infuse digital
transformation by bringing in
entrepreneurial talent
13
Photo by Paweł Bukowski on Unsplash
14. Models of Innovation
• Acqui-hired a competent digital
team - ‘Anchor Hires’
• Expertise of the team led to the
formation of a state of the art
Customer & Digital Lab
• Leverage the expertise to
incubate a new business
14
Photo by Álvaro Serrano on Unsplash
15. Models of Innovation
• Customer & Digital Lab acts as a
catalyst to bring entrepreneurial
energy to make things happen
• Plays the role of start-up evangelist
within the group while also mentoring
startup with their scaling issues
• Appoints a manager to find a pilot
within the group
15
Photo by Jacob Miller on Unsplash
16. Benefits and Learnings
16
New ways of workingLeap frog new
capabilities in digital
Infuse Entrepreneurial
Energy
• Customer
Experience
Management
• Analytics and mining
• Social and Mobile
capabilities
• New age order to
cash process
• SCM Automation
• Agile Processes
• Cross-functional
teams
• Digital Product
Management
• Experimentation
approach
• Work with networks
• Use hackathons to
kindle interest
• Co-create with
promising startups
• Provide help for
start-ups to scale
Unsplash
17. Give them the support and resources
and let them be- you will grow as the
startups will flourish
Source: Economic Times
“The new generation of startup
entrepreneurs have a radically
different approach to every
aspect of business: their minds
are wide open and they are
willing to experiment with new
ways of doing business” - Anand
Mahindra
MAHINDRA GROUP
18. Model of Engagement
Start-up incubations
Internal Startups
Private equity investments
Project Partnerships
Acquisitions
Unleash new potential: Blockchain, IOT
Smartshift and Trringo
Unrelated business and assess future potential:
Health care investment
Tech Mahindra + 30 startups,
Club Mahindra & GiftXOXO
firstcry.com, babyoye.com
20. Marico Innovation Foundation believes
that Innovation can spur creation and
sustenance of successful and
enduring Indian brands. That will
enable India to reposition itself as a
global economic superpower. "
- Harsh Mariwala, Founder, MIF
20
A dedicated resource and team to drive
open innovation is critical to ensure
success.
MARICO
21. Model of Engagement
Project Partnerships
Long term partnership
Startup Incubation and
Strategic Investments
Business process improvement: sales force
efficiency
Ascent: Marico Innovation Foundation: incubating
startups to develop ideas and scale up
Build new business capabilities:
Data analytics for business process
improvement
22. Learnings
• Early startups are more adaptive and can
create customized solutions
• Work on project partnerships; invest if
future capacity development possible
Image
23. Work in progress
• Lack of a scouting platforms
• Building trust and common intent with the
startups
• Maintaining momentum and commitment
levels of startups is important
• Startup specializes in one domain
Image
25. 1: Partner: ‘Testing Waters’
I like you and wish to explore working
with you. Lets solve a problem together
without too much investments or too
many risks Project Partnerships
Co-branded solutions
26. 2: Build: ‘We are Friends’
We can work together, create or build
something new and leverage on
respective strengths
Source: Economictimes
“Incubate and Adopt
Partnerships with equity
involvement
27. 3: Buy: ‘We are Family’
We are one entity with a common vision.
We all are different with unique identity
yet we understand each other, adapt and
live together
Acquisitions
Mergers
30. Key Learnings
• Nimble, Entrepreneurial and Risk-taking
organizations
• Commitment and Perseverance
• Top management commitment & dedicated
resource
ImageThe New Innovation Organization
31. Key Learnings
• Involving business units and R&D teams
• Startups to show maturity to adjust and
leverage their strengths
• Transparency in communication
ImageBuilding Collaboration
In India open innovation paradign is in its early stages.
So, why is the journey slow and iterative
I believe that it takes an enlightened CEO to see and believe that there are more smart people outside then inside the organization in your domain. It takes self awareness, humility and an entrepreneurial mindset coupled with non hierarchical organization that is not constrained by “NIH” syndrome to seek ideas from outside. And in the digitally connected world, the cost of seeking these ideas has greatly reduced without reducing the control we have on process.
We at SPJIMR along with FF are conducting a research with Indian organizations to study their innovation ecosystem. Today we would be presenting a snapshot of five companies in our research sample and some key takeways for the corporates who wish to embark on this journey. studied such five
I now request Mr Swaminathan to come and share three of these case studies.
