Necessity to accelerate Innovation, is not restricted to a certain industry. Existing businesses in a variety of industries are acutely aware of the competitive threats posed by their inadequate Innovation chains. In addition, they are aware of the speed with which startups might adopt new technology.
This understanding spawned the Open Corporate Accelerators (OCA) model, which requires less capital commitment than the standard Corporate Accelerator approach.
Typically, a single business initiates traditional Corporate Accelerators for its own benefit. OCAs, on the other hand, accept several sponsors and can tempt a greater number of better mature firms.
OCAs may include academic institutions, corporate sponsors, Original Equipment Manufacturers (OEMs), suppliers, and businesses from many industries.
There are 4 significant distinctions distinguishing an OCA from a typical CA:
- As is the case with Open Innovation programs, sponsors lose ultimate control over the platform's program architecture and subject matter.
- Individual sponsors lose brand visibility under an OCA model due to the non-exclusivity of sponsorships.
- Sponsors might use OCAs to fill particular gaps in their products or processes rather than pursuing broad Innovation, whose initial suitability is uncertain.
- Due to the mass involvement of sponsors and solution providers in an OCA, the novel solution loses its exclusivity.
Sponsors may leverage on the OCA model's Innovation opportunities by adhering to 3 best practices.
- Develop assurance internally for outside Innovation.
- Willingly take up cooperation with competing companies (co-opetition).
- Select areas to pursue.
OCA also reduces the ambiguity involved with collaborations with early-stage startups with untested technologies, resulting in faster, more effective deployments.
Open Corporate Accelerators follow a similar 3-phase structure as conventional Corporate Accelerators.
- Search and Selection
- Solution Conversion
- Solution Assimilation
Let's explore the stages in further depth.
Search and Selection
In phase 1 of the OCA process, it is difficult to match startup technology with BU needs.
This may be achieved by conducting periodic events devoted to certain technology, where entrepreneurs meet with relevant BUs.
Solution Conversion
The most difficult aspect of the 2nd step of the OCA procedure is proving that a startup's solution perfectly meets the sponsor's needs. Startups learn that satisfying sponsors' development requirements is difficult, especially in terms of quality and timeliness requirements.
By requiring startups and BUs to collaboratively create and manage Proof-of-Concept (POC) initiatives, these obstacles can be addressed.
Solution Assimilation
The key problem of the 3rd and final phase is scaling up the solution. Startups typically have several initiatives and are under significant pressure to marshal and schedule the necessary resources to achieve scalability.
Proof-Of-Concept initiatives aid in determining if a solution is beneficial or not. Effective transition from solution adaption to assimilation is accomplished by ensuring that the startup's solution and team are firmly rooted within the sponsoring enterprise.
Interested in learning more about Open Corporate Accelerator (OCA)? You can download an editable PowerPoint on Open Corporate Accelerator (OCA) here on the Flevy documents marketplace.
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