In this technology-driven era, the collaboration between large corporates and startups is the key to fostering innovation. With rapid changes in the new age business ecosystem, they can leverage digital transformation services and the strengths of each other to grow and stay relevant and competent. Corporates can enter new markets by teaming up with new industry players and keep up with the disruptions, while startups can scale their products and offerings into the markets of established businesses to expand and grow.

This partnership between established corporates and startups can make way for new and sustainable industrial revolution. The matter of concern here is in choosing the right startup consulting partners, in a way that both the sides can benefit in the highest possible level. When each side learns to understand the expectations, culture, interests and work ethics of the other, it leads to a successful collaboration.

Why do corporates need startups?

External innovation and disruption: Corporates need to become aware of the disruptions and market shifts caused by new innovative technologies in their field of business.

More innovative suppliers: When corporates work with only established tech providers, they miss out on potential new sources of revenue.

Better customer focus: Corporates need to leverage the startup method to customize solutions and serve its customers better.

More agile culture: Working with startups can bring more agility and openness to innovation.

Staying abreast of market developments: Corporates can better track changes, developments and disruptions in the markets by collaborating with a startup.

New business lines: Corporates can pursue new business lines and revenue streams and offer new and creative services to their clients.

How can startups benefit from corporates?

Revenue benefits: With corporates having enough money and revenue, startups can be free from seeking outside investments.

Success story for future sales: Corporate customers enhance the reputation of startups, providing them with reference cases for future sales.

Scalable customer base: Startups looking for their first customers can leverage the customer base of large corporates.

Riskless globalization: Partnering with corporates will give startups the opportunities to expand into other countries and refine and optimize their products and services.

Access to corporate assets: Collaborating with corporates can empower startups to make use of underutilized corporate resources to make new business.

Mentoring and market knowledge: An established business can help startups enter the market with its assets and allow it to tap into the knowledge and experience of corporates in the form of mentoring.

Why does the collaboration often fail?

The collaboration is a test for the mind-sets of both. Corporate employees are trained to follow set procedures and rules and are challenged by the nonstandard and creative behaviour of new entrepreneurs. On the other hand, startup players start their companies with an intention to disrupt the status quo of the markets and are often challenged by the ideas and processes of the corporate players.

Here are the many reasons why the collaborations do not reach the end goal:

· The startup spirit often clashes with the culture and spirits of the corporate and its protective middle management.

· Startups lack the resources to handle most processes.

· Large corporate players may not prefer to work with startups if they cannot provide references from previous corporate clients.

· Corporates are usually hesitant to adopt inventions that were developed in partnership with startups.

· Lack of managerial support from corporates can lead to failure of collaborative innovation.

· All units of the corporate silos may not be aligned to the collaboration, which may lead to delays and conflicts.

· Senior management of corporates may fail to understand new technological changes that may impact their business field.

How Gateway Digital can make the partnership easy?

For a seamless collaboration, strategic alignment is required between the corporate and startup. The upper management needs to agree to the conditions of the collaboration and the management expectations of both sides need to be met.

Gateway Digital Oy is a digital transformation solutions expert focusing on specialized technology services and functional services for various businesses. We collaborate with startups with the help of our insight-based business models through consulting, modernization and digital touch points. Equipped with the technology and expertise, our digital consulting and strategy services help businesses identify their best-suited partner.

As a technology specialist, we understand the business concerns of startups and help them accomplish compelling business cases through proof of concept and designs with the help of futuristic market trends, marketing and outreach. Our adaptable onshore and offshore services are at the forefront of innovation and address the entire breadth of clients’ opportunities in the evolving digital world.