CIOs responsible for innovation are interested in startups’ promise of innovation and speed, but are daunted by the risks and unknowns. How do you deal with tech startups when 90% fail within 10 years? We offer five steps to help you find your bearings, get started and avoid the biggest pitfalls.
Overview
Key Challenges
- Working with startups sounds attractive to accelerate innovation, but it’s easy to fail, as it’s a foreign activity for many in the organization. It’s often unclear where to start.
- It’s not easy to work with startups, because the cultures and ways of working differ greatly from what traditional organizations are used to.
- Startups come with elevated, hard-to-assess risks. There is inherent uncertainty in startups about their long-term direction, independence and viability.
Recommendations
CIOs involved in innovation and strategic business change leadership who consider working with startups should take these five steps:
- Define your starting point for engaging startups by analyzing which organizational capabilities need enhancement.
- Prepare your internal sponsors for the risks, and make sure they are committed, by explaining the values and risks involved and asking their commitment.
- Bridge the gap between organization and the startup world by appointing someone to be the internal and external liaison.
- Decide and communicate what your organization will be able to contribute that will make startups successful by creating a reverse pitch deck.
- Reduce the risk and impact of startup failure, conflicts around intellectual property, competitive and other risks by preparing legalities and designing an iterative process.
