FRICTIONLESS INNOVATION ACCENTURE BUSINESS JOURNAL FOR INDIA 2018

Big and small firms must join forces and form an open innovation ecosystem to truly taste success.

FRICTION LESSINNOVATION

Digital-powered innovation is disrupting traditional businesses and redrawing the competitive landscape.

Digital native startups are giving traditional firms a run for their money, increasing the pressure to open up their once closed innovation processes and engage with the ecosystem in mutually beneficial collaboration. It’s no secret that open platforms enable innovation, but to tap into this wealth of opportunity, businesses big and small need to form partnerships based on trust and mutual respect.

OPEN INNOVATION IS ON THE RISE …

Accenture’s experience of working with firms shows that a majority of them practice open innovation.

Yet, many firms struggle to create impact at scale, because they lack a long term commitment to open innovation. They are happy to embrace collaboration at the start of their ventures when creativity is expected, but once this phase is over they often revert to playing it close to the vest. In the process, they shut out external resources and miss out on the full potential of open innovation for their enterprise.

HOWEVER, A LACK OF COMMITMENT, CULTURE AND LEADERSHIP IS HOLDING FIRMS BACK.

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HOW CAN YOU OVERCOME THESE BARRIERS?Firms big and small must form an open innovation ecosystem based on trust and mutual respect. They must shift their mindset from “How can I get what I need and move on?” to “How can I create a lasting ecosystem where partners exist on equal footing?”

Big firms need to remove the barriers that hinder smaller firms’ success.For example, legal and practical implications around intellectual property.

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WHAT DOES AN OPEN INNOVATION ECOSYSTEM LOOK LIKE?An open innovation ecosystem consists of enablers, stakeholders and partners, and India has several public and private multidisciplinary institutions that are actively supporting the needs of the innovation ecosystem, providing a robust foundation for open innovation.

• There are several government bodies that help fund startups—for example Startup India, Skill India, Make in India—and promote world class innovation hubs—such as Atal Innovation Mission.

The India Innovation Growth Programme 2.0 (IIGP) guides innovators and entrepreneurs through the stages of ideation, innovation and acceleration.

• In academia, the Indian Institute of Technology Madras (IIT-M) has incubated over 15 deep-tech startups, while students at the Indian Institute of Technology Bombay (IIT-B) created a revolutionary tablet called Braille-Me.1 Other pioneers include the Indian Institute of Science (IISc), the Tata Institute of Fundamental Research, MIT-Sloan and Harvard Business School.

• India’s research institutes include IISc Bangalore, as well as the research arms of IIT.

• Corporate-led incubators or accelerators further enhance open innovation, for example Mahindra’s Spark the Rise program,2 Tata Group’s Innoverse program,3 and Microsoft’s Open Innovation Lab.4

• Industry bodies such as NASSCOM are galvanizing the startup ecosystem, with dedicated initiatives such as the 10K Startups Program and its Product Conclave. Recent initiatives are helping provide the right ecosystem for niche deep-tech startups, including collaborations with MassChallenge, a leading accelerator in Israel.

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FIRMS IN INDIA THAT USE OPEN INNOVATION ECOSYSTEMS• A large industrial equipment maker collaborated with a niche

Internet of Things startup to create a connected boiler. The connected asset is helping the equipment maker transform its maintenance and support model in the short term and its business model in the long term.

• Mahindra collaborated with an external design consultant, which precipitated the successful entry of Scorpio into the high-end SUV market.

• Eureka Forbes, a Mumbai-based consumer goods company, used its partner’s disruptive technology to create its most recent products.

• Biocon, India’s largest pharmaceutical company, provides unmatched products and services by using a combination of ideas generated inside and outside the company.

• 27 leading banks in India, including SBI, ICICI, Axis Bank and DCB, have created a unique blockchain infrastructure: Bankchain. To build this infrastructure, they partnered with Pune-based startup Primchain.

• Accenture in India via its Open Innovation program has worked with more than 75 startups in the country to helps its Indian and global clients with their digital transformation.

What do these firms have in common? They have used the power of open innovation to transform, innovate and scale.

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Sold! How do I create an open innovation ecosystem?

To form an ecosystem, you can either:

1. Develop a ground-up open innovation and ventures program by setting up an internal team and building an ecosystem of startups, venture capitalists (VCs), academia, incubators, accelerators and government bodies. Ecosystems are unique in each country (especially in Israel, the US, the UK and the EU) and require time and long-term commitment. Simultaneously develop a flexible partnering and IP-sharing approach, while internally creating an organization culture that promotes trust, collaboration and an open innovation mindset.

2. Partner with a trusted open innovation and ventures partner such as Accenture who through its existing global ecosystem, can offer ready-to-plug-and-play options. Also, introduce best practices to shape the internal organization to successfully partner and invest (time, money and other resources) in startups and innovators.

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When you are part of an ecosystem, the innovation doesn’t stop at one product or service. The Government of India, for example, has a Collaborative Auto Research (CAR) program with representation from the ecosystem including OEMs and research bodies such as Tata Motors, Mahindra, TVS Motor Company, IIT-B and IISc.

There are many ways to create lasting partnerships that deliver long term value. The key is to recognize that the best partnerships for a business may not always be conventional, and or seem obvious. But if invested in the right manner, they unlock new opportunities that pivot on your core strengths to tap new markets and make greater gains.

Unlocking value within a broader ecosystem means fostering real-time collaboration with partners, customers and even competitors.

To learn more about open innovation and how to build long-lasting ecosystems, download the Accenture Business Journal India 2018 report.

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AUTHOR

REFERENCES1 http://innovisiontech.co/brailleme/

2 http://www.sparktherise.com/rise-prize/

3 https://www.tatainnoverse.com/

4 https://enterprise.microsoft.com/de-ch/ trends/open-innovation-lab/

AVNISH SABHARWAL Managing Director – Accenture Ventures in India

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