Entrepreneurs and startups are crucial to economic growth and job creation. Yet despite the mythology that has built up around the disruptive power of startups, the overwhelming majority need to leverage the market presence and scale of larger, established enterprises if they are to be truly successful. Meanwhile, large companies are feeling pressure to innovate and become more entrepreneurial, yet find their culture and structures getting in the way. Large companies and entrepreneurs need to collaborate more effectively and take a journey towards more Open Innovation. But how? This Accenture presentation was made to the G20 Young Entrepreneurs Alliance Summit, Istanbul, Turkey on September 8, 2015.

1. Jitendra Kavathekar: Managing Director, Accenture Open Innovation
Madhu Vazirani: Thought Leadership Senior Principal, Accenture Research
Tuesday September 8, 2015
Harnessing the Power of
Entrepreneurs to Open Innovation

2. 2Copyright © 2015 Accenture All rights reserved.
of Fortune 500 companies have disappeared since
2000, mainly due to the disruption of traditional industry
models by digital technologies.
of revenues of large companies expected to be
generated from digital products and services in the next
3 years, up from 16% today (Source: Accenture Research)
Markets are being disrupted by digital
The last decade saw start-ups and entrepreneurs
disrupt traditional markets.
In the next ten years, large companies will use digital to
disrupt markets themselves.

3. 3Copyright © 2015 Accenture All rights reserved.
Large companies and entrepreneurs
must learn to collaborate effectively
The good news is that large and small companies show
every intention of collaborating with multiple parties
How important will
collaborating with these
stakeholders be in driving
your innovation & growth
in the next 3 years?
“82% of large
companies say they
can learn from
entrepreneurs about
how to become a
digital business”
Source: Accenture Research

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And both camps see the benefits of working
with each other:
• Collaboration based revenues at large companies
will jump from 9% today to 20% in 5 years
• 82% of large companies say they can learn from
entrepreneurs about how to become a digital
business
• 46% feel the need to work with entrepreneurs to
be sufficiently innovative

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The nature of collaboration must change
“How can I create an ecosystem of
partners collaborating on equal
terms?”
“How can I get others to help me
do what I already want to do?”
From bilateral collaboration done on the terms of large companies, to
more open ended collaboration with multiple parties

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The journey to Open Innovation

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Ecosystem Innovation: The power of platforms
Ecosystem innovation
represents a shift to an external
mindset in which risks and
rewards are shared mutually. It
demands greater levels of digital
collaboration in a wider
ecosystem.
“There will be more than 100 new digital
industry platforms from non-tech
companies by 2016” (IDC)
“In 2013, 14 of the top 30 global brands
by market capitalization were platform-
oriented companies” (MIT)

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But large companies and entrepreneurs
do not see eye to eye
Commitment
Entrepreneurs and startups
are four times more likely to
say their large company
partners lack commitment than
corporates are about their
smaller collaborators
Source: Accenture Research
Culture

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How culture compares
Source: Accenture Strategy
Comparative cultural
trends between
startups and large
companies

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Eyes on the prize
NEXT 5 YEARS: 20%
Proportion of large companies’ revenues generated by collaboration with
startups/entrepreneurs
TODAY: 9%
Spillover effects on
economic growth

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Taking action
Large companies
• Visibly embrace collaboration
top-down
• Define and budget for
success
• Seed an “intrapreneurship”
culture
Entrepreneurs
• Align to the market
• Adapt culture
• Time it well
Governments &
policy makers
• Develop co-financing models
• Incent collaboration between
large companies and startups
• Create collaboration networks
• Encourage a borderless
physical world
Bridgemakers
• Open up access to supply
chains
• Accelerate the network effect
of role models and mentors
• Bridge the cultural gap

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Accenture Open Innovation As A Service
Start-ups
• High risk
• High charge velocity
• Delayed economic value
• Seek disruption
Global 2000 Companies
• Immediate economic value
• Low risk
• Low change velocity
• Look for guided disruption
Open Innovation
Tech Labs
Emerging Technologies Group
Growth Platforms
Operating Groups
Delivery
Account Teams
Accenture as a bridgemaker

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Accenture Open Innovation as a service
Discover-Validate Operationalize-ScaleEnvision
Define
Digital
Strategy
Rapid business model & technology
ideation for digital products, services
& experiences
Prototype, launch, and manage digital
products, services and experiences
Future of the
Industry
Build MVP(s) Identify and implement new digital
capabilities, embed as core in the
organization
Your role in the
future
Validation (Market, Technology,
Organization, Partners)
Gap analysis –
Technology,
Organization,
Operations
Kick-start Innovation Program – team,
funding, mandate, exec sponsorship
Develop and execute transformation
roadmap and operating model across
culture, structure, process and
technology
Define Innovation
Strategy

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Be a Catalyst to Change to Open
Innovation