Gorillas Can Dance by Shameen Prashantham

Author:Shameen Prashantham [Prashantham, Shameen]
Language: eng
Format: epub
ISBN: 9781119823599
Publisher: Wiley
Published: 2021-08-25T00:00:00+00:00

Figure 4.2 Cooperation Among Corporations in Startup Partnering

The Microsoft-Walmart example indicates that some corporations have had a head start over others in terms of developing expertise in startup partnering – and these companies are in a unique position to work with other gorillas to engage with startups. Walmart aside, James Chou, who leads Microsoft's engagement in East Asia, has regularly worked with well-known multinationals in a range of industries including healthcare, retail, and financial services on joint initiatives. These partnerships essentially allow corporations that might include relative latecomers to the startup world to leverage Microsoft's existing capabilities and, crucially, its pool of startup partners. Of course, Microsoft would value the opportunity for its startups to work with marquee clients and, in the process, utilize its technologies like Azure. Another example of a corporation that has been working with startups for a while now is the Spanish telecoms giant, Telefonica (through its innovation hub network, Wayra). During a discussion I had with Gary Stewart in London when he headed Wayra's activities in the UK, it was apparent that Wayra was, similar to Microsoft, in a position to work with other corporations that are interested to engage with startups. Furthermore, Wayra has engaged in joint efforts with leading academic institutions such as the University of Edinburgh, thus extending its reach well beyond the London ecosystem to include Scotland.

In sum, it is also worth noting that corporations don't have to necessarily do everything by themselves – other gorillas, even competitors in some instances, could be useful allies in working with startups.

Selecting suitable startup partners. The synergy-interface-exemplar framework helps inform the selection criteria for picking startups to work with since the choices made about each facet has a bearing on startup partner suitability. Of course, at an early stage partner selection may not be a very sophisticated process and, as will be noted, refinements can be made along the way. Still, being thoughtful from early on regarding the selection criteria for startup partners can help corporations make a promising start at startup partnering.

First, compatibility in terms of the synergy sought is the natural starting point – and points to a startup's quality and commitment. A key consideration is whether there is the requisite level of commitment to using the corporation's technology (when the synergy relates to building blocks) or if the startup delivers on what is being sought (when the synergy relates to pain points). The implication is that startups need to not only exceed a certain quality but also be genuinely inclined to engage with the corporation, as opposed to merely seeking kudos by being associated with a large corporation.

Second, the nature of the interface might suggest what type of startup is best suited in terms of its openness to ambiguity. Cohort-based interfaces, which have the virtue of potentially enabling serendipitous outcomes, would ideally attract startups with a founding team that is open to close mentoring and collaboration with peers. Funnel-based interfaces, which are good for generating more predictable outcomes, would typically welcome highly focused and efficiency-oriented startups.

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