Big business and startups must collaborate, rather than compete, to stay globally competitive, a new report said.
The report released by StartupAUS, Australia’s peak body representing startups, found collaborative relationship between big business and startups can produce a more innovative environment in Australia.
The three key requirements for big businesses, according to the report, include:
1. Acquire startups to improve their current businesses and explore new revenue streams
2. Partner with, become customers of, license from, and co-develop with startups on ways to reduce costs and increase efficiencies
3. Cultivate the talent startups have through greater exposure to them, or more permanently through acqui-hire or headhunting
The report - entitled Scaling up our growth opportunities – Why Australia’s big business economy is working to create a thriving startup environment - noted that without a vibrant startup environment, Australia’s largest organisations face increased risk of disruption from startups overseas.
Furthermore, these organisations will be limited in their capacity to respond to the disruption without local IP and innovation to acquire, partner with, or draw upon.
The findings stemmed from an August meeting initiated by StartupAUS and KPMG, which brought together senior executives from the ASX 20 together with leaders of the startup industry.
“Tech startups are often seen as a group who are disrupting large existing markets – think Airbnb, Uber, Netflix, Paypal and Spotify. However, tech startups are actually vital to the existing companies servicing existing markets – especially in the digital world that we are currently living in, said CEO of StartupAUS, Peter Bradd.
“To respond to this change in processes and culture, and to remain relevant moving beyond the next decade, Australia’s top 20 companies must have a vibrant culture of innovation within and around them.
“It is essential they work with external entrepreneurs and innovators. In doing so they can bypass internal barriers, outsource a lot of the initial risk, and allow for much more speed and agility.”
StartupAUS said it is currently working on an ongoing series of leadership sessions and whitepapers to define and reinforce the opportunities to build our startup economy within Australia.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.