by Doņa Storey
More than ever, the economic environment shows that those who learn the art of collaboration have the great advantage of carving out a growth path. Corporate venturing - traditionally defined as when a company supports innovation and new projects internally - can take other forms, such as when a company is willing to sit down with an entrepreneurial business, regardless of size, and find ways to capture innovation and growth through collaborative partnerships.
This latter concept was recently highlighted in Milwaukee at an event, Corporate Venture Forum, hosted by American Express OPEN and featuring Daniel Isenberg, professor of entrepreneurship practice at Babson Executive and Enterprise Education. He offered an interesting discussion around the concept of corporate venturing and how that is one piece, albeit a critical one, to fostering an entrepreneurial ecosystem to support growth.
It is often entrepreneurs - those willing to risk big and go down roads that others would never even dream of - who can be attractive partners for collaboration to large corporations. Using the manufacturing industry as an example, major corporations may benefit when they find entrepreneurial small suppliers in their supply chain.
We often think of an entrepreneur as being someone that has developed a new technology. But that does not necessarily have to be the case; an entrepreneurial supplier could have a new and innovative go-to-market strategy for an existing product or service.
In order to attract a global corporation's interest and eventually enter into a successful partnership, a small manufacturer needs to become an expert in the prospect's business in order to anticipate how it can best serve its needs. Corporate vision, performance metrics, cultural alignment, and complementary products or services are also factors to be considered when presenting ideas on how to develop a collaborative relationship.
The following are some dos and don'ts that a small manufacturer should consider when planning its move toward developing a collaborative relationship with a global customer.
Don't expect a global corporation to come up with a clear view of how you can collaborate
You must take ownership of the process and understand it is a work in progress that can lead to more than 100 meetings, as was told by one determined entrepreneur at the Corporate Venture Forum. So plan accordingly and manage expectations.
Don't begin a collaborative discussion without doing your research
and having knowledge of how your large customer operates
It is imperative that you understand its brand and position in the industry beforehand. Only after doing this will you have a better picture of what its "hot button" priorities may be for its future growth.
