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Accenture Open Innovation

Harnessing the power of open innovation for Indian enterprises.

Overview

REIMAGINE YOUR BUSINESS WITH OPEN INNOVATION

A new breed of digital disruptors is giving long-established industry leaders stiff competition, forcing them to reinvent themselves to stay relevant. Collaboration between large companies and startups can accelerate the pace of innovation, and is a win-win for both. For large companies, it is a means to inject new technology and talent into their innovation processes. For entrepreneurs, it holds the promise of faster commercialization of their products and services. 

“Ecosystem innovation” with a wide range of partners in a broad ecosystem can help get the maximum value from collaboration. We recommend some key action points for all stakeholders—large companies, startups, the government and bridgemakers.

HARNESSING THE POWER OF THE OPEN INNOVATION FOR INDIAN ENTERPRISES [PDF]

Four phases of open innovation

FOUR PHASES OF OPEN INNOVATION

Open innovation is a journey of multiple phases:

  • Corporate ventures
  • Incubators and accelerators
  • Joint innovation
  • Ecosystem innovation

Based on their requirements and market realities, some large Indian companies have launched corporate ventures; some have developed incubators and accelerators; few engage in joint innovation; and almost none engage in ecosystem innovation. But to benefit from network effects and to maximize the value from collaboration, large companies will need a cohesive strategy that interlinks corporate ventures, incubators and accelerators, joint innovation and ecosystem innovation.  

Challenges

CHALLENGES

Accenture has identified three main challenges to collaboration between large enterprises  & startups:

  • Appreciation, assimilation and application deficits in collaboration
  • Cultural divide
  • Government support

Entrepreneurs have a more risk-taking approach while large companies are more risk-averse. Entrepreneurs often doubt large companies’ commitment to supporting their businesses, while large companies often lack confidence in a startup’s ability to move from idea to marketability. Such gaps in collaboration hinder innovation. Bureaucratic processes and siloed research and operations in large companies can also inhibit effective collaboration. Finally, the government needs to create the right policy environment that supports innovation.

Action points for stakeholders

ACTION POINTS FOR STAKEHOLDERS

Successful ecosystem innovation will require concerted and coordinated efforts by all stakeholders—startups, large companies, governments and bridgemakers or organizations that help “connect the dots” among participants, solutions and markets.

  • The government must ensure a conducive digital business environment, provide access to finance, prepare innovation policy to create startup-friendly business environment, improve access to infrastructure, and develop skills and talent.
  • Large companies need to embrace collaboration top down, seed an “intrapreneurship” culture and create a “network effect.”
  • Entrepreneurs need to align to the market, adapt culture, and adopt mentors.
  • Bridgemakers need to accelerate the network effect, bridge the cultural gap and provide shared space.

Recommendations

COLLABORATIVELY, WE WIN

Accenture believes that ecosystem innovation can help maximize the benefits of collaboration for innovation. This will require a cultural transformation—creating an environment of greater trust, and more equal commitment to risks and rewards between large companies and startups. Large companies will need to move from collaboration oriented to a predetermined goal to a more open and entrepreneurial approach. All stakeholders need to commit to using digital technologies and platforms to reach and work with a greater range of talent, ideas and business models. And governments need to put in place incentives and regulations that reward large-scale, experimental innovation models that tolerate a greater degree of risk and failure.

Contact Us

Avnish Sabharwal

Avnish Sabharwal
Managing Director, Growth and Strategy, Open Innovation & Deal Origination, Accenture, India

Muralidharan Chandra

Muralidharan Chandra
Manager and Lead, Open Innovation, Accenture, India