New report by Arthur D. Little credits Match-Maker Ventures for our work on bridging the two worlds!
Telecom operators working with start-ups: Venture forth as partners of choice
The latest start-up activity cycle represents not only an accelerated disruption to existing business models but also serves as a renewed opportunity for telecom operators to tap into growth and innovation. At the same time, operators are currently far from being the partners of choice for start-ups, but are rather seen as slow-moving, inefficient, non-decision making and ultimately non-value creating partners.
Amidst increasing corporate venture capital participation in the start-up economy, the report by Arthur D. Little focuses on how to engage with start-ups and advocates fundamental shifts in the engagement models.
To be able to benefit from start-up collaboration, operators need to fundamentally change their mindset, operations, and governance. Specifically, this requires (a) a shift from a procurement mindset to actively pitching for innovation partners and (b) commit to enabling governance that incentivizes innovation or at the very least, provides independence to those who are tasked to drive this within the organization. This would help operators change from simple facilitators of access to customer, billing and technology platforms to partners that actively seek out collaboration and commit to co-creating value by driving internal change.
Match-Maker Ventures credited
In energizing collaboration with startups, our new report that elaborates on the fundamental shifts that operators have to make:
- Seek, not source, startups with a clear value proposition
- Provide Scale to the engagement, going beyond sponsorship
- Sustain the partnership by ensuring fit
To make this happen within an operator environment, Arthur D. Little proposes a way forward in terms of the organizational glue and governance elements.