The Importance of Viewing Startups as Partners
Due to today’s robust and quickly changing ecosystem, enterprises are aware of the fact that they need to do whatever it takes to uphold market share and stay relevant. This means working with startups to test, integrate and scale new solutions quicker than their competition. Fortunately for enterprises, startups are fond of mergers and acquisitions, causing them to make their innovations more collaborative in nature and shift their attitudes towards possible partnerships.
In the past, we discussed the benefits of collaborating with startups (using the prooV platform, of course) in order to come up with innovative solutions to problems, but startups are more than just solutions to a problem and it is in the enterprises benefit to view them as partners rather than quick fixes.Enterprises know they need to stay relevant in today's robust space - this means working with startups for solutions Click To Tweet
Startup Culture is One to Capitalize On
Enterprises that view startups as partners rather than a quick solution have the ability to capitalize on the culture of startups; that which makes them inherently different from enterprises. A startups McGuyver-like attitude, which is due to their sink-or-swim nature of the startup world, gives it its drive to succeed. It is that attitude that brings about innovative and out-of-the-box creative solutions – something that enterprises desire but are rarely able to emulate.
Partnering with a startup gives enterprises the chance to retain the startup mentality while enjoying the long-term benefits of innovative thinking and game-changing technologies. Working with a more long term goal in mind shifts the relationship towards a more mutually beneficial one in the long run.
Cost Effective Way to Boost Innovation
Ultimately, the name of the game is innovation and startups tend to do it quicker and requiring less resources than most major enterprises. Enterprises that view startups as partners can boost in-house innovation with more efficiency. Instead of building an innovation team, which requires budget approval and a tedious hiring process, enterprises can bring in an existing startup and completely bypass the bureaucratic hassle of building such a team in house.
When partnering with a startup for innovation and creation of new technology, enterprises can easily vet how well the existing startup works together (which is usually the most critical part of forming a new team) and begin working effectively.
Potential for Acquisition
After vetting a startup and seeing how well or poorly the team and technology works within your enterprise, the next possible step is acquisition. If not looking to be merged with a larger conglomerate, enterprises should consider taking in smaller startups and using their thinking and technology in house in a larger capacity.
Since startups are eager to work with enterprises (for budgetary, PoC and validation among other reasons), enterprises can leverage projects to examine potential acquisition of a startup. In doing so, not only can enterprises gain the immediate benefit of whatever solution or technology the startup is working on in the short run, but also understand and closely examine their internal structure for potential purchase in the long run.
When starting a relationship with a startup, it is therefore all the more important to view them as a partner and keep the doors open for future collaboration rather than keep them distant and solely focused on a single solution.