In open innovation, Start-up approach companies with pilots, so-called Model A tests in which, for a set time, it is determined how the problem would be solved. The company’s Pain points show the efficiency, savings, and convenience of implementing the solutions.
Entrepreneurs begin the exploration journey together with corporate companies. Usually, the quick request or proposal of a pilot arises to help them both. But is this the right bet for their success?
The three main factors that determine the success of integration between the startups and the corporation are: First, the maturity of the solution; second, the organization’s intention or culture of innovation. Third, the level and depth of exploration and personalization of product or service.
Factor 1 – State of maturity for the startup
Through learning and sharing information from both the start and the corporate, technological solutions are continually evolving and improving for their customers. But, the path to technological development is ever-changing. Therefore, it is possible to find solutions that do not reach a Total Market Fit and still explore new avenues and business models.
This stage is crucial. The validation should ensure that the pilot can provide more certainty about the results and benefits. The pilot should therefore be focused on delivering concrete and fact-based support.
Factor 2 – Culture of innovation
A pilot is a good strategy in companies that have a low culture of innovation. The vision should demonstrate the corporation’s advantages when the solution is integrated into processes and protocols.
Early adopters allow you to fully assess a product or solution to determine if it works. You can also make adjustments to the solution and generate a new spinoff.
Factor 3 – Exploration and customization
The third factor refers to when the company is permitted to create a solution with the client. This link allows corporate to coordinate their efforts with the expertise of startups. The latter can gain ground, experience, and consolidate. This type of situation is why it is essential to submit a proof of concept. It must be developed jointly and needs further validation. The solution may even be modified to meet the desired results during the test. A proof of concept will require more effort and resources. However, it will enable the startup to reach a more closely linked result with the corporation.
Wayra – Telefonica Movistar’s corporate investor fund – highlights one practice: the delimitation of expectations between corporate and startup. With a simple document, both sides can describe the resources committed, the scope, and indicators to be considered to determine the success or failure.
It will not be easy to control every variable, entrepreneurs cannot keep their feet on the ground, and companies can’t afford to stop innovating in a constantly changing world. Therefore, I encourage you to venture with pilot models to provide a measured and controlled pathway to innovation and entrepreneurship.