What large organisations can learn from startups by Craig Beddis, CMO, Automic on 14-Mar-2014

Gone are the days when large, decades-old corporations alone changed the world – now, the companies changing the way we do business are just as likely to have been started five years ago from a spare room says Craig Beddis, Automic CMO.

Our new research reveals what it is that helps young start-ups succeed – and what others can learn from them. We surveyed start-up companies in the UK, US and Germany to find out their recipe for success: how do they innovate so quickly, what can large organizations learn from the way they work; is culture critical to innovation and how important is IT to success.

The results show the huge influence of the typical 'start-up' mentality on successful innovation: Start-ups are willing to take risks, driven by a common vision and product-focused view. They establish an innovation-friendly corporate culture and go easy on human and financial resources.

Innovation is rooted in the DNA of start-ups

Most start-ups rely on the 'ean start-up approach', a principle of corporate governance that keeps processes as lean as possible. True to the motto 'learning by experience', these start-ups launch new products quickly and rely on the feedback of their customers, meaning they can swiftly correct errors faster and reduce development costs. And while many may imagine young start-ups enjoy a form of creative chaos, in fact 75% have a process and methodology around innovation and product development.

New approaches to tech

Three quarters of start-up respondents automate much of their everyday IT, resulting in greater predictability, sustainability and cost efficiency. This 'work smarter, not harder' approach allows them to focus on innovation rather than everyday tasks and 'keeping the lights on'. In addition, rather than being bound to service providers, start-ups aren't afraid to go elsewhere once service providers no longer meet their needs.

Large company culture can inhibit innovation

Risk-taking is needed in order for organizations to flourish. While large corporations prioritise traditional values such as predictability, reliability and continuity, start-ups focus more on innovation and creativity and empower their people to pursue this. 70% believe companies fail to innovate due to lack of empowerment and resource; 90% believe that business leaders must be willing to fail.

And rather than the consensus approach favored by many large corporates, half of ambitious start-ups say that a strong 'dictatorial' founder and their vision are of crucial importance.

Most big corporations know that innovation is the fuel of success, but they also have to admit that start-ups are ahead when it comes to innovation. Start-ups are clearly more willing to take risks and pride themselves on their flexibility. Larger organizations should take a leaf from the start-up book and look at how they can 'be more start-up' in their approach to innovation.

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For more information, please visit: www.automic.com

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