These past five years many companies has been disrupted by digital. Retail giants such as Blockbuster, Toy’s R Us and Sears became bankrupt since the dawn of an Amazon driven marketplace. What works before with consumers have dramatically changed; millenials are now growing old and is dominating spending demand.
Companies need to start rethinking their strategies. What works 5 to 10 years ago are now being disrupted with advances in digital. In a 2015 study by Digital Pulse/ HBR, executives are acknowledging its changes to businesses
How Can Businesses Adapt to These Changing Times?
The key is to engaged tech startups. When I was working with multinational companies (AstraZeneca, Accenture, Standard Bank, etc), I noticed that many large companies have difficulty innovating. I often see multi-million projects gone down the drain because consumers are not supporting it.
Here are the top reasons why their digital innovation programs failed:
* Lack of creative vision– the mindset was still traditional. The vision is still inside the box and not innovative enough
* Lack of proper validation and testing– many companies fail to run Lean Startup and other methodologies. Startups are proficient in this methodology to understand what will fly to the public.
* Inadequate tech resource– this oftentimes happen to companies whose core competency is not technology. Some companies try to build tech on their own. They lack the capability and methodology to build the right technologies. I see lots of funds wasted because of this.
How Can Tech Startups Help?
Tech startups are very passionate with innovation. Let’s take the instance of Bird, their electric scooter sharing business was disruptive. Their business was so game-changing they manage to get investments of 100 million USD and have presence in 50+ cities in the US.
Travis VanderZanden their CEO was a former Uber/Lyft executive. They wanted to make office and campus transport more convenient to people by offering eco-friendly scooters. Companies are tapping this startup to make it easier for their employees to commute.
AdMov is a PH startup that has been helping companies disrupt their digital marketing. FMCG companies are this startup to enhance their digital marketing campaigns. They are using AI to be able to distribute ads more efficiently and gain more market intelligence from the riders of Grab.
Instead of building their own platform (which can be very costly), they work with this startup. They provide feedback on what they need. They leverage AdMov’s expertise in the transport marketing segment to make their digital campaigns a reality.
Working with startups is the best way to drive innovation for companies. Corporate knows the pain point and opportunities of the industry. Startups can deliver the needed to innovation to disrupt that industry. To become relevant, companies should learn to tap the power of these startups.
Stay tuned as we share how companies can leverage startups the right way. We will be sharing more info on how to safely invest on a startup to reach your goals.
Author: Bobby Ben Davis Cristuta
Bobby is the CMO and Co-founder for Admov Philippines. He is a serial technopreneur. He is passionate in delivering emerging marketing channels and bring Manila as destination for innovative advertising technologies.