GIC’s shift to Innovation: Leveraging Startup Ecosystem

GIC’s shift to Innovation: Leveraging Startup Ecosystem

Posted 3 months ago
GIC




GICs and Innovation

GIC Market place in India is mainly driven by Technology disruption. The Technology advancement is happening at faster pace and GICs are strategising their game plan to keep up with the pace and to be at the forefront of the technology. However, GICs are also facing challenges in taking the Innovation way and to keep the pace with the change in technologies. Many GICs are working their way to keep the cost and talent arbitrage while also taking the technology initiative to build the expertise and access to technology.The talent on the technology skill availability is main factor which impacts the pace of the change. The model and operational landscape also changes with the technology and hence in turn impacts the pace.

Innovation Center Setup

Setting up Innovation centre involves strategic intent, Business plan, Research on Location, Talent, Competition, Market and Technology. Setting up a task force or hire a Build Operate and Transfer Partner to execute the plan. The local Government related policies and procedures to be taken care of. Risk and Mitigation plans to be finalised. The GICs can take the advantage of existing local Ecosystem also to kick start the innovation which can help them to accelerate many of these build procedures. The GIC Innovation Center need to have the strategy and execution in place to be with the technology disruptions happening. Building Ecosystem of Startups is one of the strategy to move up the ladder to the innovation model.
 

Leveraging the Startup Ecosystem

India has strong ecosystem of 5300 startups,employing over 100000 people. The IndianTechnology startups raised $ 3 Billion investments in H1 2018 across 372 deals. Many of the startups working on Disruptive Technologies. By Partnering with Startups, the GICs can leapfrog the Innovation strategy and advance to gain some time in setting up the Innovation centers. Its a win-win situation, as Startups also get benefit from GIC’s scale, domain expertise, access to SMEs to accelerate the operation and faster time to market. Startup also may get funding and investment support from GICs. GCCs could setup Accelerator or Incubator programs for startups, where GICs innovation is aligned with business strategy. The startups benefit from Business mentorship, Infrastructure, Access to technology & tools. The accelerator approach is suitable when GIC has mid or long Number of Startups in India on Disruptive Technologies

 
By Partnering with Startups, the GICs can leapfrog the Innovation strategy and advance to gain some time in setting up the Innovation centers. Its a win-win situation, as Startups also get benefit from GIC’s scale, domain expertise, access to SMEs to accelerate the operation and faster time to market. Startup also may get funding and investment support from GICs.

GCCs could setup Accelerator or Incubator programs for startups, where GICs innovation is aligned with business strategy. The startups benefit from Business mentorship, Infrastructure, Access to technology & tools. The accelerator approach is suitable when GIC has mid or long term vision on the innovation. Shell and Target are the examples of GICs who have setup accelerator programs for startups.

Conclusion

Startup Ecosystem has been the way to go for GICs strategy and Jumpstarting the Innovation story. Its always a win-win situation and the ecoysystem circle of support keeps both of them engaged on innovation and helps the overall growth.

Source: Deloitte Report- Global In-house Center's (GIC) next frontier, Apr 2018 and INC 42 

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