Startups Are Big Business. Can Big Business Please Start Up?

Startups Are Big Business. Can Big Business Please Start Up?
SHARE
THIS



As new technologies drive big business transformation, BCG Digital Ventures’ directors, Vanessa Wolfe-Coote and Craig Boshier, predict the next horizon of innovation will be just as much driven by big businesses as disruptive start-ups.

In this article they discuss how big businesses can jump-start their operations to become the new disruptors rather than the disrupted. The challenge for big businesses is learning how they can harness these transformations to become successful technology innovators and keep up with their recent start-up rivals.

A Tale Of Two Cities

Consider these stories. One is a familiar tale known all too well — Blockbuster’s fate following the firm’s rejection of an alliance with Netflix, and its inability to foresee the looming threat from digital media. By the time Blockbuster finally launched its own online subscription service, Netflix already had 4.2 million subscribers.

The rest is history.

Now contrast Blockbuster’s tactics with how two tech giants, Facebook and Google, work today and it is clear these firms are creating the future.

There was a very public race between the two firms to solve the classic AI challenge of Go. This game required intuition, lateral thinking and had been impossible for a computer to beat until recently. Just hours after Mark Zuckerberg announced Facebook was close to solving the problem, Google’s AI business, DeepMind, announced it had, and in doing so, Google achieved a feat thought to be over a decade away.

Technology giants are an entirely new breed of organisation, changing the way business is done, and diversifying into whole new industries.

Re-Thinking “Success”

A recent Harvard Business Review article said public companies have a one-in-three chance of being delisted in the next five years. That is a rate six times higher than company delistings 40 years ago — despite almost $1.6 trillion being spent on research and development.

Corporations are no longer enduring institutions. Neither scale nor experience guards against an early demise, and most major corporations recognise they need to become innovators in and around technology.

Of course, this is easier said than done.

Too many corporates value short-term incentives over long-term growth. Telstra chief executive, Andy Penn recently said he faced pressure from shareholders to “play it safe” rather than invest in new businesses and broader innovation initiatives in Asia.

It is clear that some businesses want to take a longer view but investors will not let them, and other businesses do not want to take a longer view because of existing internal reward structures and remuneration.

It is a common problem shared by many chief executives and leads to risk-averse and failure-intolerant cultures. Add this to long and costly funding cycles, a siloed approach to delivering products and platforms, and complex and politically charged governance structures, and it is obvious that the message for change is a hard sell.

These unfair disadvantages problematically lead to incremental innovation that happens over multiple years and fails to deliver expected returns, rather than game-changing disruption.

The Corporate Disruptor

It is not all doom and gloom. Some corporates are learning how to leverage their comparative advantages — large and loyal customer bases, established brands and funding — to disrupt themselves and expand into new markets.

There are four reasons why this will happen:

  1. Corporations have begun to adopt a venture capitalist mindset, viewing innovation as a portfolio of investable ideas as opposed to a single product or service idea. In doing so, they view their value chains with a completely different lens, exploring how they can unpack and assemble their assets in new and meaningful ways. They are placing bets across their entire portfolio of innovation, building ambidextrous, multidisciplinary teams governed like start-ups rather than remaining encumbered by operational processes.
  1. Senior management are acutely aware of the external innovation threat and have started to shift its mindset by embracing failure, accepting it’s part in the process — failing smart and fast to contain costs.
  1. Corporations are starting to explore adjacencies, identifying partnerships to accelerate the speed at which ideas are turned into real, running businesses. They are establishing business models and ecosystems that are hard to copy and compete against, as well as shaping their own markets with partner networks.
  1. A relentless customer focus is the enabler of innovation. Corporations are embracing research-led approaches, as opposed to personal bias and business casing. This allows them to focus on identifying real friction in the market to surface new growth opportunities. These same companies are developing processes to enable continual customer learning throughout the product or service lifecycle, pivoting and testing to ensure their offers meet customer and market needs as they evolve over time.

Welcome to the dawn of the corporate disruptor. It is time for big business, so please start up.

Latest News

Women In Media Profile: Kirsty Bloore
  • Media

Women In Media Profile: Kirsty Bloore

Bereft of any Monday motivation? Let today's Women in Media profile be like low-current electric waves to the brain.

by B&T Magazine

B&T Magazine
Arq Group Activates New Branding By Hulsbosch  
  • Media

Arq Group Activates New Branding By Hulsbosch  

Arq Group has launched a new identity created by award-winning agency Hulsbosch, with the business rebranding from Melbourne IT to Arq. Previously known as Melbourne IT, the company was founded in 1996 as one of Melbourne University’s commercial ventures with the sole rights to manage .au domains in the early days of the Internet. Melbourne IT […]

Adshel Unveils ANZ Takeover Via PHD
  • Campaigns
  • Media

Adshel Unveils ANZ Takeover Via PHD

ANZ, in partnership with PHD and Adshel, have taken to the streets with a total take-over of the entire Adshel Live network. For one hour, between 8am and 9am on Tuesday 19 June, ANZ is inviting commuters to download the new ANZ app by showing six different ways the app can help them manage their […]

Nine Launches Big Ideas Pop-Up Store
  • Media

Nine Launches Big Ideas Pop-Up Store

Nine has today launched a new pop-up store, The Big Ideas Store by 9Powered, which will host a series of events, workshops, research studies and guest speakers that demonstrate how Nine’s integrated business works to formulate better solutions to the challenges facing marketers. Over the next two weeks, The Big Ideas Store will highlight how […]

Gillian Armstrong: Adland’s Become “Brainwashed Into Thinking All Directors Have Beards”
  • Advertising

Gillian Armstrong: Adland’s Become “Brainwashed Into Thinking All Directors Have Beards”

Acclaimed Australian director Gillian Armstrong has launched a stinging attack on agency “boys’ club” that, she believes, continue to overlook female directors for TV campaigns. Armstrong, 67, cited stats that show half of all graduate directors leaving Aussie colleges are now female, they’re regularly cleaning-up in short film competitions, however, it’s not translating to directing work within the industry. Only about […]

by B&T Magazine

B&T Magazine
Carat & Initiative Share The Spoils In WA Government’s $65 Million Media Business
  • Media

Carat & Initiative Share The Spoils In WA Government’s $65 Million Media Business

IPG’s Initiative and Dentsu’s Carat have both been awarded a slice of the West Australian government’s $65 million spend. The government account is broken into two entities – campaign and non-campaign – each with its own agency roster. Carat has retained its long-standing position on the agency panel for all campaign work, which accounts for […]

A Golden Opportunity! Lucky Numbers For Sale!
  • Marketing
  • Partner Content

A Golden Opportunity! Lucky Numbers For Sale!

In case you missed it last week, a very lucky phone number – 1800 80 80 80 – is up for sale. And it could be yours!

Partner Content

by Customer Connect

The AppNexus Marketplace Launches Guaranteed Views
  • Technology

The AppNexus Marketplace Launches Guaranteed Views

AppNexus, the world’s leading independent advertising technology company, today announced the launch of Guaranteed Views, a marketplace product that changes the way advertising is bought and sold on the open internet. Guaranteed Views enables marketers and agencies to pay only for ads that are measured as viewable and is the first programmatic product that enables 100% viewable buying at scale outside of Facebook and Google.

Dentsu Aegis Network Predicts Australian Ad Spend Growth Of 2.8%
  • Marketing

Dentsu Aegis Network Predicts Australian Ad Spend Growth Of 2.8%

• Ad spend in Australia forecast to grow by 2.8% in 2018 , with main drivers of growth in Government, Retail, Finance and Gambling sectors. • Global advertising spend to grow by 3.9%, revised up from 3.6% in January 2018. • Digital to overtake TV for the first time, to reach 38.4% of global share (TV 35.5%). In 21 out of the 59 markets tracked, digital will be the leading advertising channel in 2018. • One quarter (25.2%) of global ad spend will be delivered through mobile devices for the first time.

Pac Mags Appoints New Client Strategy Director For Victoria
  • Media

Pac Mags Appoints New Client Strategy Director For Victoria

Seven West Media’s Pacific Magazines has announced the appointment of Emma Baston as client strategy director for Victoria. Baston has worked in senior digital media buying and planning roles at various agencies including UM Australia, Cummins&Partners and MindShare, with exposure across the strategy, communications and creative process. She has also worked at Facebook in a […]

Seamless pattern of a crowd of many different people profile heads. Vector background.
  • Media

SBS Launches Diverse Communities Content Initiative

SBS has launched the Short-Form Content Initiative, a commitment to providing increased opportunities for Australian creatives from diverse communities through the commissioning and production of content for SBS On Demand. SBS has partnered with five of Australia’s screen agencies, including Film Victoria, Create NSW, Screen Queensland, Screenwest and South Australian Film Corporation. The initiative aims […]

BIG W Unveils Toy Mania Via M&C Saatchi
  • Campaigns

BIG W Unveils Toy Mania Via M&C Saatchi

BIG W, the home for families, fun and entertainment, has today launched its annual toy sale campaign – Toy Mania. Running until 11 July, the campaign showcases the frenzy and hysteria that comes with the BIG W toy sale. It also highlights that buying toys can be just as fun as playing with them and […]

Datorama Launches AI-Supported Data Visualisation Tool ‘Data Canvas’
  • Technology

Datorama Launches AI-Supported Data Visualisation Tool ‘Data Canvas’

Datorama, a global technology company, today announced the launch of Data Canvas, a suite of new data visualisation capabilities within its Marketing Intelligence platform. Datorama Data Canvas leverages the power of artificial intelligence (AI) in a brand new way — to help marketers create expert-designed dashboards to tell compelling, data-driven stories. Datorama’s previous AI releases have […]

Who’s Looking The Goods At Cannes Lions 2018
  • Opinion

Who’s Looking The Goods At Cannes Lions 2018

In this opinion, Fjord lead Bronwyn van der Merwe (pictured below) discusses the work to look out for at Cannes Lions 2018. I fully expect there will be some staggering examples of creative brilliance at Cannes Lions this year, and I’d recommend anyone going resists having their attention pulled by projects that are largely based on […]

Opinion

by B&T Magazine

B&T Magazine
We Are Social Acquires Socialize
  • Media

We Are Social Acquires Socialize

We Are Social has acquired Socialize; however, it will not be renamed We Are Socialize or even Margaret for that matter.

Global Marketing Player adm Appoints Country Manager For Australia & NZ
  • Marketing

Global Marketing Player adm Appoints Country Manager For Australia & NZ

International marketing services business adm Group Ltd has appointed Matt Cave as its country lead for Australia and New Zealand. Cave (pictured above) has more than 25 years of industry experience in the Asia-Pacific region, and will be instrumental in driving adm’s expansion throughout Australia and New Zealand. With 26 offices in 19 countries around […]

Weploy CMO Ben Eatwell: “We Want To Help Businesses Challenge The Status Quo”
  • Media
  • Technology

Weploy CMO Ben Eatwell: “We Want To Help Businesses Challenge The Status Quo”

Weploy began with a shared realisation between two friends that recruiting quality staff had become too complicated and it was high-time so declutter the process. Based in Melbourne, the start-up combines Tinder-style online skills-matching with Australian job market, and in doing so, rids eager employers of the strenuous – and at times incredibly uncomfortable – […]

Nielsen Acquires Sydney-Based Media Analysis Business Landsberry & James
  • Marketing

Nielsen Acquires Sydney-Based Media Analysis Business Landsberry & James

Nielsen has announced it has acquired Landsberry & James (L&J), a leading media analysis and software company based in Sydney, Australia. L&J designs, develops and markets software across the entire media analytics, planning, buying and post analysis process for television, digital, radio, advertising expenditure and advertising creatives. Nielsen’s investment in L&J enables an unparalleled and powerful […]

Pac Mags’ Home Beautiful Partners With Harvey Norman To Launch ‘Cooks Co-Op’
  • Marketing
  • Media

Pac Mags’ Home Beautiful Partners With Harvey Norman To Launch ‘Cooks Co-Op’

Home Beautiful and Harvey Norman have partnered on a new content series which will transform a quintessential Aussie shed into a field-to-fork restaurant whilst showcasing culinary local heroes. In 2012, Martin Boetz (pictured above, right) – the chef behind the cult following of Longrain during his 13-year stint – escaped the bustle of the big smoke […]

Music Feeds & Purple Sneakers Join Forces
  • Media

Music Feeds & Purple Sneakers Join Forces

Music Feeds and Purple Sneakers have unveiled a new strategic partnership that will allow music industry and direct advertisers to extend campaign bookings across all Purple Sneakers digital platforms when booking with Music Feeds. Founded in 2005 by Martin Novosel as a club brand and events company, Purple Sneakers is a key player in the Australian […]

by B&T Magazine

B&T Magazine
Headway & App Annie Get Ready For FIFA 2018
  • Media
  • Technology

Headway & App Annie Get Ready For FIFA 2018

Headway, the leading data-driven media buying company, has teamed up with market data and insights company AppAnnie. Together, the companies have unveiled The App Marketer’s Guide to the World Cup – a whitepaper designed to help app marketers succeed. Every year, flagship sporting events are breaking the internet with increasing viewership and the 2018 FIFA World Cup […]

Twitter Makes In-Stream Video Ads Available To All
  • Advertising
  • Media

Twitter Makes In-Stream Video Ads Available To All

Social media giant Twitter has announced it’s making in-stream video ads available to all advertisers – including self-serve – across 12 markets, including Australia. The popular video format attaches pre-roll content in front of premium publisher videos and highlights. The 12 international markets where Twitter’s in-stream ads will be available are Australia, Brazil, Canada, France, […]

Australian Alliance For Data Leadership Appoints New CEO
  • Advertising
  • Marketing

Australian Alliance For Data Leadership Appoints New CEO

The Australian Alliance for Data Leadership (AADL) has announced the appointment of credentialled senior executive Stephen Porges as its new CEO. Porges currently sits on a number of company boards, has considerable public and private sector listed company management expertise, and has been instrumental in successful data-driven businesses. He also brings CEO skills gained at […]

Business , Nicola Lewis poses for a portrait in Surry Hills. Lewis is being appointed to run WPP's GroupM in Australia and New Zealand.  
Pic Jenny Evans
  • Media

Women In Media Profile: Nicola Lewis

GroupM investment chief Nicola Lewis is grilled in latest Women in Media profile. It's more a gentle simmer, really.

by B&T Magazine

B&T Magazine