Many legacy companies are in trouble.
Their tried-and-true methods of connecting with consumers are failing in the new economy where customer service and customer experience are paramount to any business's success.
The truth is, older brands need to acknowledge that the world has changed. If they are going to survive in this era, they need to start acting more like startups.
In "UNLASHING THE INNOVATORS", author Jim Stengel offers valuable insight from the front lines of many Fortune 500's biggest corporations. Stengel writes: "In a sense, we have discovered the corporate Fountain of Youth--and it is located not among the mangroves and sawgrass of south Florida but in the workings of successful partnerships between iconic companies and energetic startups."
Okay, you've decided to form a partnership with a startup or two. The key question to ask yourself is, how will it serve your needs? And which startup is the ideal partner?
At IBM, Watson (its artificial intelligence platform) is creating the most exciting business opportunity for Big Blue in a generation--and it's spawning all kinds of new relationships with young companies. Target, like Wells Fargo, has selected a handful of commercial themes to pursue, all focused on growing its core business.
A couple of common themes emerge. Whatever their different approaches, these legacy companies have a sure sense of why they're choosing to ally themselves with startups: they have problems to solve, they want to explore new lines of business in particular areas where they feel they lack experience, and in many cases they're trying to revitalize or reinvent themselves with the help of young companies.
Source: Jim Stengel: Unleashing the Innovators: How Mature Companies Find New Life with Startups
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