With Prime Minister Malcom Turnbull’s innovation statement at the top of the Federal Government’s agenda, startups at the forefront of innovation are gaining more support, and are in a better position than ever to disrupt traditional business models.
The inability to keep up with innovation is evident amongst big brands, with the 2015 IBM CMO report revealing 82 per cent of CMOs feel they’re underprepared to deal with the explosion of data, up 11 per cent from 2011.
However, the report also shows that while many CMOs feel they are underprepared, 74 per cent intend to seek broader partnerships in the future to help them achieve their marketing goals and keep on top of innovation.
Marc Cowper (pictured above), founder of Sydney-based customer advocacy startup Recomazing, said it’s a great time for Australian startups.
“With Malcom Turnbull’s innovation revolution now in full swing, the stereotypical fledgling Aussie startup industry is now backed by government support, making them more powerful and in an even better position to disrupt traditional business models.
“On top of this, we have seen a trend both internationally and locally where agencies and big brands are creating new roles or entire departments around innovation to ensure they’re collaborating with startups.
“WPP’s MEC UK has recently launched MEC Tonic a new division delivering tech-first solutions to clients by partnering with start-ups and we expect to see the more advanced local agencies roll out the same model”, he said.
This year Australia’s largest tech start-up space, Fishburners, has seen a rapid increase in the number of corporate brands sponsor the space. The latest sponsor NAB recently collaborated with startups by hosting a fin-tech hackathon to tap into startup mentality when approaching financial business challenges.
Recomazing’s founder says it’s no coincidence more brands are looking to partner with startups and demand has never been higher with Recomazing recently raising $660,000 capital to grow their business.
“We have seen brands and their agencies showing a real appetite for collaboration with Recomazing and our globally unique customer experience insights – it is the reason we have been able to partner with industry leaders such as Virgin Mobile and Open Colleges.
“Startups are at the forefront of emerging technology and provide a cost effective solution to any brand wanting to infuse valuable innovation into their business to increase ROI”, he said.
The innovation statement is looking to increase funding for startups through investor tax concessions; entice startup talent to work in Australia by amending visa legislation, and assist startups with international expansion with five ‘launch pads’ setup across the globe.