Disruptive Value Creation in the Startup World
Startups in all domains are rewriting market dynamics by challenging conventional companies despite the latter’s immense resources.
According to Richard Foster, a lecturer at Yale School of Management, 75% of the companies on the S&P index will be replaced by 2027 as the average lifespan of today’s companies seemed to have dropped from 67 in the 1920s to 15 years today. For instance, the 2006 list of world’s largest market capitalisation companies featured Exxon Mobile ($362.5bn), General Electric ($348.5bn), Microsoft ($279bn), Citigroup ($230.9bn) and British Petroleum ($225.9bn). However, in 2016 with the onset of Digital Disruption, Apple ($571.4bn), Alphabet ($530.6bn) and Amazon ($362.4bn) topped the same list, with only Microsoft retaining its 3rd spot.
Without analysing the true potential of Steve Sasson’s Charge-Coupled Device (CCD), the visionaries at Kodak might have paved the path to their bankruptcy in 2012. They hushed up CCD tech like a threat in 1975 and 1989, only to be outperformed by competitors like Fuji and entrants like Logitech and Casio and many more. However, from the Kodak Advisory board’s perspective, they had rightfully sustained the existing Film technology Kodak pioneered in and pursued the highest revenue market segment. The current global business scenario is replete with similar instances of disruptive technologies eating away at the market share of established large businesses.
Startups in all domains are rewriting market dynamics by challenging conventional companies despite the latter’s immense resources. Focussed on traditionally boosting revenue, are most large companies still incapable of innovating enough to reclaim lost market capitalisation? At this competitive juncture, only with a board level acknowledgement of the disruptive forces at play, every Corporate CXO could identify the opportunities inherent with the startup threat. Moreover, with an understanding of the core differences in business capabilities & values that exist between startups and corporates; they could collaborate with startups to optimally achieve business objectives. However, to identify and decide which startups to connect with or which startups to acquire, partner or procure from, what senior executives would need is Personalised Intelligence about the startup economy which is still nascent, volatile and is yet to be researched for actionable insights by traditional research firms.
As per GEM global reports, the global startup ecosystem comprises 1.78 million tech startups. Thus, curating the requisite startup as per technological, situational and sectoral needs becomes akin to searching a needle in a haystack. This is where technology could help democratise the global business ecosystem by connecting startups and big businesses through platforms that could provide senior executives with intelligence, interaction and integration to identify relevant startups globally. Not just business directories crammed with data, but simple-yet-detailed user interfaces with a choice of geographic proximity and business maturity to match startups with corporate problem statements. With the boon of Big-Data and Artificial Intelligence exhaustive sources of startup information could be curated and analysed for parameters critical to business success. Moreover, such platforms could provide senior executives with the clarity and structure for engaging with disruptive companies by creating an unbiased but actionable list of startups and scoring them on business-critical factors like product & innovation, leadership team, business traction, financial strength as well as social & media branding.
Leveraging such intelligence, Healthcare CXOs could break the barriers of medical technology by leveraging startup innovations in Robotics, Internet of Things and Augmented/Virtual Reality to further improve surgeries or out-patient care. Senior executives from various industries like Banking, Manufacturing, Transportation, Energy, Hospitality and Retail could optimise their offerings according to the expectations of the evolved consumer with disruptive innovations sourced from such data-backed in-depth intelligence.
In essence, a personalised intelligence interface could empower business leaders to take the right decisions with the right people at the right time. That in turn, would also deliver the desired return on investment by integrating disruptive concepts to create the next flagship product or optimises costs by solving burning business problems. In mitigating the threat of disruption, this is clearly a win-win scenario with inroads of collaboration created by cutting edge technology.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
Around The World