What Corporates can learn from Startups
In case you haven’t noticed: times are changing. Technology – specifically the internet – is a central driver of this change. And technological change has accelerated in the last decades. Marc Andreesen referred to this a couple of years back as “Software is eating the world“. And if it hasn’t happened in your industry yet, be assured it will.
Smaller companies – often referred to as startups – have grasped the opportunity and have or currently are disrupting industries. Zalando for example has entered a fairly mature ecommerce market in 2009 and hit 1€ billion in revenue in 2012. It is now one of the leading ecommerce players in several countries. On the other hand some of the biggest companies in the (German) mail-order business had to close down in the last years. Kodak invented(!) the digital camera in 1975 and filed bankruptcy in 2012.
Here is what is fascinating:
- Big corporates have plenty of resources, a huge customer base, experts in market research etc. Why is it that they fail to innovate?
- Startups most of the time lack resources, a customer base, experts in market research etc. How do they come up with innovative, disruptive and eventually successful business models?
Luckily both questions have been answered. Clay Christensen has described the answer to the first question in his book The Innovator’s Dilemma
Steve Blank and Eric Ries have built a framework called The Lean Startup to answer the second question. Whereas the Lean Startup lays the theoretical foundation, the The Lean Entrepreneur
What does that mean for corporates though? Turning a blind eye and waiting to be disrupted is certainly not a very smart idea. And many corporates are not ignoring change. As there might be a big discrepancy in perception to how fast the change will happen – most have so far underestimated its velocity – corporates know in general that they have to act. Most just don’t know what to do.
The most obvious way to take part in disruptive innovation is by acquiring or investing in startups. This is something corporates have been doing since decades. However, profitable investments are hard even for experienced VCs. Turns out that acquisitions are as well for various reasons.
I have consulted several companies that are going through the innovators dilemma. Some of the companies that are aware of the dilemma are trying a third approach. They want to connect with the startup world to learn how to build (incubate) new business ideas and get into the “startup game”.
This has led to a flood of incubators. Most of which will not be profitable because of mediocre management, war for entrepreneurial talent and lack of knowledge on how to build startups. However, on a broader scale I think it is a positive development. Corporates can learn plenty from startups. Young people can “test” entrepreneurship as a career path in a safe environment. If this helps more people to think and act entrepreneurial and more corporates to integrate elements of the startup mindset and method, I am all for it.
I have put together a slide deck which explains the innovators dilemma, how startups build businesses and what corporates can learn from them. It merely scratches the surface but it is a start for now. Tell me what you think in the comments.
If you like this presentation you might also like my other presentations.
26. November 2013 @ 12:40
What Corporates can learn from Startups http://t.co/fMnKOMdoV5 via @manuelkoelman
26. November 2013 @ 17:25
What Corporates can learn from Startups http://t.co/Pr58nCV8HX via @manuelkoelman
26. November 2013 @ 18:33
RT @wolffpeter: What Corporates can learn from Startups http://t.co/Pr58nCV8HX via @manuelkoelman
26. November 2013 @ 21:40
What Corporates can learn from Startups http://t.co/KW0FDXUqgO
26. November 2013 @ 21:56
RT @bibrue: Good One – my conclusion for corporates: you gotta join @capnamic !! 😉
http://t.co/3Axo12SVJ8 via @manuelkoelman
26. November 2013 @ 22:58
RT @ManuelGerres: What Corporates can learn from Startups http://t.co/C5ZbI6Klpw via @manuelkoelman
27. November 2013 @ 00:33
RT @wolffpeter: What Corporates can learn from Startups http://t.co/Pr58nCV8HX via @manuelkoelman
27. November 2013 @ 01:45
Was große, etablierte Companies von Start-ups lernen können, hergeleitet am “Innovator’s Dilemma” http://t.co/SM8rA05NHd via @manuelkoelman
27. November 2013 @ 05:44
Very relevant for rhe Open Innovation crowd: What Corporates can learn from Startups http://t.co/lEL3yU9Peg via @manuelkoelman
Open Innovation | Pearltrees
27. November 2013 @ 05:51
[…] What Corporates can learn from Startups | LeanEntrepreneur.com […]
27. November 2013 @ 09:28
What Corporates can learn from Startups http://t.co/Y695iEfMFo vía @manuelkoelman
27. November 2013 @ 12:14
RT @manuelkoelman: RT @ManuelGerres: What Corporates can learn from Startups http://t.co/8KvyQ1U1XW via @manuelkoelman
27. November 2013 @ 18:09
What Corporates can learn from Startups http://t.co/Ett6HEylE9 via @manuelkoelman
27. November 2013 @ 21:36
What Corporates can learn from Startups http://t.co/CqX132KLlo via @manuelkoelman
27. November 2013 @ 22:06
Was Corporates von Startups lernen können #businessinnovation http://t.co/acbzaCE9IC
28. November 2013 @ 00:04
RT @netselisaweb: What Corporates can learn from Startups http://t.co/Y695iEfMFo vía @manuelkoelman
28. November 2013 @ 00:04
RT @netselisaweb: What Corporates can learn from Startups http://t.co/Y695iEfMFo vía @manuelkoelman
28. November 2013 @ 01:30
What Corporates can learn from Startups http://t.co/wEbU2oSED5
28. November 2013 @ 07:06
RT @olafjacobi: great presentation – What Corporates can learn from Startups http://t.co/lKMMnSsNSR
28. November 2013 @ 08:41
What Corporates can learn from Startups http://t.co/QxHrLLDeB4 via @manuelkoelman
28. November 2013 @ 09:35
RT @olafjacobi: great presentation – What Corporates can learn from Startups http://t.co/lKMMnSsNSR
28. November 2013 @ 10:26
What corporates can learn from startups. #lean http://t.co/w7vZ8DhcOU
28. November 2013 @ 11:26
RT @CarolinLessoued: What corporates can learn from startups. #lean http://t.co/k6bM0OEi32
28. November 2013 @ 12:27
RT @kathl_fritzsche: What #Corporates can learn from #Startups http://t.co/HeVmu52KQl via @manuelkoelman
28. November 2013 @ 12:45
RT @kathl_fritzsche: What #Corporates can learn from #Startups http://t.co/HeVmu52KQl via @manuelkoelman
28. November 2013 @ 14:21
Thanks for sharing RT @dsemprun: Very relevant for rhe Open Innovation crowd: What Corporates can learn from Startups http://t.co/8KvyQ1U1XW
28. November 2013 @ 14:45
Was Unternehmen von Startups lernen können http://t.co/eTvKIDoOGi RT @olafjacobi
28. November 2013 @ 17:21
What Corporates can learn from Startups http://t.co/Ce5XL4zhx8 via @manuelkoelman
28. November 2013 @ 20:15
Thanks for sharing RT @JCallaghan87: What Corporates can learn from Startups http://t.co/8KvyQ1U1XW via @manuelkoelman
28. November 2013 @ 22:20
RT @TwittAurora: What Corporates can learn from Startups http://t.co/wEbU2oSED5
30. November 2013 @ 09:27
RT @Prof_Kollmann: What Corporates can learn from Startups – http://t.co/clMNfWKmg9 What Corporates can learn from Startups: Big corporate…
1. December 2013 @ 14:43
Thanks for sharing. Too bad you cannot come to @_ExecIO 🙁 RT @Prof_Kollmann: What Corporates can learn from Startups http://t.co/yJHSnPErgi
1. December 2013 @ 17:07
Big corporates and small startups: what they can learn
http://t.co/Cdl25uhwTl
1. December 2013 @ 23:19
What Corporates can learn from Startups http://t.co/vUHpzBF7h3 via @manuelkoelman
2. December 2013 @ 08:25
Thx for sharing 🙂 RT @marioeibl: What Corporates can learn from Startups http://t.co/8KvyQ1U1XW via @manuelkoelman
23. January 2014 @ 09:07
RT @amaruares: Was Corporates von Startups lernen können #businessinnovation http://t.co/acbzaCE9IC
Business Model thinking | Pearltrees
26. January 2014 @ 17:01
[…] What Corporates can learn from Startups | LeanEntrepreneur.com […]
23. February 2014 @ 07:58
What Corporates can learn from Startups http://t.co/2RAQ6LyVFZ
23. February 2014 @ 17:56
RT @oana_co: Love the 18th slide! What Corporates can learn from #Startups http://t.co/Cn1SdlVq7D via @manuelkoelman
23. February 2014 @ 20:30
RT @oana_co: Love the 18th slide! What Corporates can learn from Startups http://t.co/6Pm5oemYiN via @manuelkoelman
25. February 2014 @ 07:38
RT @dorinbd: What Corporates can learn from Startups http://t.co/2RAQ6LyVFZ
Exec I/O Commerce bringt Corporate Entscheider und Startup Gründer zusammen - getContext
16. April 2015 @ 23:35
[…] What corporates can learn from startups […]
19. August 2015 @ 11:50
“What Corporates can learn from #Startups” #leanstartups http://t.co/kMgVvKsZnp
21. August 2015 @ 07:02
RT @unmindit: “What Corporates can learn from #Startups” #leanstartups http://t.co/kMgVvKsZnp