Corporate innovation with Startups made simple with Pitchworks VC Studio

In this write up we will talk about why corporates need to innovate, why most of them of failing and need to startups and corporate start collaborating with each other for survival

At the end of the conversation the CIO asked us 3 questions which sparked us to write this blog.

1 Do my organisation need innovation ?
2 Even if I need Innovation why are so many other corporates of our size fail in innovation ?
3 How can I test it in most cost effective way ?



First let's address the Elephant in the room, is Innovation optional ?


Relevance for customers
Building Business Reslience
competitive advantage



Corporate innovation is essential for businesses striving to remain relevant and competitive in today's rapidly evolving market. By continuously developing new products, services, and processes, companies can better meet the changing needs and preferences of their customers. For instance, Apple's regular release of new iPhone models keeps them at the forefront of consumer technology, while Amazon's introduction of Prime services has revolutionized online shopping convenience. Statistics show that innovative companies are 2.5 times more likely to have high-performance outcomes compared to their peers.

This proactive approach not only helps in retaining existing customers but also attracts new ones, ensuring sustained growth and market presence.

Furthermore, innovation fosters a culture of creativity and adaptability within organizations, enabling them to quickly respond to emerging trends and disruptions. In essence, corporate innovation is the driving force that keeps companies aligned with customer expectations, ultimately leading to long-term success and relevance.


Business Resilience
Building business resilience is paramount for companies looking to thrive amidst uncertainties and disruptions. Corporate innovation plays a crucial role in fostering this resilience by enabling businesses to adapt, evolve, and maintain continuity during challenging times. For instance, during the COVID-19 pandemic, many companies that swiftly innovated their business models, such as shifting to remote work or expanding e-commerce capabilities, managed to survive and even thrive. According to a McKinsey report, organizations that prioritize innovation are 30% more likely to be high-growth companies. Innovation not only helps in developing new revenue streams but also in creating more efficient processes and resilient supply chains. This agility allows companies to quickly pivot in response to market changes, ensuring they can weather economic downturns, technological disruptions, and other unforeseen challenges. Therefore, corporate innovation is not just a strategy for growth but a vital component of building a robust and resilient business capable of sustaining long-term success.

1. The Corporate
Innovation Made
Simple with Startups
Pitchworks VC Studio
Gokul Rangarajan
Sudharsan Srinivasan
Demystifying corporate innovation
and its challenges solved with startups

2. Innovation for Corporate is not an Option
Innovation is Survival
In this age

3. Why should Corporate Innovate ?
competitive advantageBuilding Business ResilienceRelevance for customers
and for Survival

4. Why should Corporate Innovate ?
high-performance
Innovative Companies
2.5 X
competitive advantage
Legacy Solutions
0>

5. Why should Corporate Innovate ?
Invested
70%
resilient
businesses
On innovation
Invested minimum
$100 K

6. Why should Corporate Innovate ?
ROI
55% Public
companies
investing on
innovation
shareholder return
compared
shareholder Growth return
1.8X

7. Netflix exemplifies corporate innovation and competitive success through its
transition from a DVD rental service to a leading streaming platform. 

By pioneering online streaming in 2007, Netflix disrupted traditional
entertainment models, investing heavily in original content like "House of
Cards" and "Stranger Things" to differentiate itself from competitors. This
strategy not only increased subscriber loyalty but also attracted millions of
new users globally. Continuous innovation in data analytics allowed Netflix to
personalize recommendations, enhancing user experience and retention. As
a result, Netflix has consistently stayed ahead of competitors like Hulu and
Amazon Prime, maintaining its position as a dominant player in the
entertainment industry.
Netflix vs Blockbuster

8. Netflix outpaced Blockbuster by innovating its business model, transitioning
from DVD rentals to a subscription-based service in 1999, and pioneering
online streaming in 2007. This eliminated late fees and provided on-demand
access to a vast library of content, enhancing convenience for customers.
Additionally, Netflix invested heavily in original content and data analytics to
personalize recommendations, creating a superior user experience.
Blockbuster’s failure to adapt to these digital innovations and changing
consumer preferences ultimately led to its downfall, while Netflix emerged as
a leader in the entertainment industry.
Netflix vs Blockbuster

9. Nike surpassed Adidas through relentless innovation across product design,
digital engagement, and marketing strategies. By pioneering technologies
like Air Max and Flyknit, establishing a robust digital ecosystem with
personalized fitness apps, and leveraging high-profile athlete endorsements
and culturally resonant campaigns like "Just Do It," Nike created a
compelling brand identity that resonated globally.
This innovative approach not only differentiated Nike's offerings but also
enhanced customer loyalty, market share, and cultural influence, outpacing
Adidas in key markets and solidifying its leadership in the sportswear
industry.
Nike vs Adidas

10. Philips Healthcare is a notable example of a B2B health tech corporation that has
driven innovation to maintain its competitive edge. By focusing on integrated
solutions for healthcare providers, Philips has developed advanced medical
imaging technologies, patient monitoring systems, and health informatics.

One of their key innovations is the IntelliVue Guardian Solution, which combines
predictive analytics with patient monitoring to detect early signs of patient
deterioration in hospitals. This technology enables healthcare providers to intervene
proactively, improving patient outcomes and reducing hospital readmissions.



Philips Healthcare innovation

11. Are Corporates Really in Innovation ? Failing
with so much technology around

12. “Only 10% of Global 2000 Companies 
succeed with innovation programs despite
significant investments”

13. “70% of Executives believe their companies are
not good at developing breakthrough innovations”

14. “Only 6% of Fortune 500 companies
are satisfied with their innovation performance”

15. Why large Organisation are not able to
Innovate
Not Able To
with so much disruption around

16. REASONS FOR CORPORATE INNOVATION FAILURE
Fear of Failurer
A significant 82% of organisations run innovation
efforts in the same way they handle routine
operations, leading to missed opportunities​ .
Short-Term Focusr
72% of companies admit to missing
crucial growth opportunities due to a
short-term focus
CORPORATE
INNOVATION
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Customer Needs
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can lead to significant losses.
Lack of Alignment
Siloed departments and layers of
management can hinder communication and
collaboration across different parts of the
organization.
The Wrong tools
and Processes
Using outdated or inappropriate tools for
innovation can lead to inefficiencies and
poor outcomes. Tools that do not align with
the company's strategic goals can hinder
innovation efforts.
Lack of Incentive
Insufficient rewards for employees who
innovate. Innovation requires dedicated
time and resources.
m?beM.cec?hetbc.cMc?sbr
to Change
Established Corporates may have processes and
structures that resist change. This resistance can stem
from a desire to protect existing revenue streams or from
bureaucratic hurdles that slow down innovation efforts
Slow Decision-
Making Processes &
Complex Hierarchy
Hierarchies often lead to bureaucratic
decision-making processes that can stifle
innovation.

17. Nest Labs, known for its smart
home products, was acquired by
Google in 2014, marking a
significant collaboration in the
tech industry.
Google Nest earned more than
$3.2 billion in 2023.

18. In 2021 their Contracts Evolve as Collaboration
Reinvigorates American-Based Space Travel.
In 2022 SpaceX, NASA collaboration with NASA began
with contracts to resupply the International Space Station.

19. Proteus Digital Health, a startup in health monitoring and
Otsuka Pharmaceutical a global pharmaceutical company join
hands to launch World's First Digital Pill

20. Cancer data software  tested and acquired by
Pharma giant Roche after being an lead investor in
Flatiron Health 
Series C financing

21. The most impactful and scalable way to Technologies
with a
Access startup
Lean and Standardised process
Immediate
Impact
Measurable
return
Low
Risk
Universal
applicability
Why corporate startup Partnering ?

22. CORPORATE INNOVATION MATRIX
IN HOUSE R&D
HACKATHONS
INTERNAL
SCALE
DEVELOP
IDEATE
HYBRIDEXTERNAL
VENTURE
CLIENT
INNOVATION
LAB
ACCELERATORS
VENTURE
STUDIO
PRODUCT
INNOVATION
VENTURE
PARTNERSHIP
M&A
AQUIRE HIRED
SVP
EXTERNAL VC

23. Thank You
Gokul Rangarajan
Sudharsan Srinivasan