Startups are known for their speed, innovation, and taking risks, however they often find it challenging to scale. Enterprises, on the other hand, rely on their proven brand presence to scale but find it challenging to take risks. Working together, they can help each other reach positive outcomes. According to KPMG’s New Horizons study, 94% of startups would like to repeat a collaboration process with larger organizations. And based on Imaginatik’s The State of Startup/Corporate Collaboration study, 82% of corporates say interactions with startups are important.
In support of promoting collaboration between enterprises and startups, impress.ai, an AI chatbot software for recruiters, participated in YourStory Start-up Dialogue. Sudhanshu Ahuja, CEO at impress.ai, was invited to moderate the panel of speakers at this event, which was co-hosted by YourStory and Asia PR Werkz, on Wednesday, 24 October 2018.
Topics covered during this event:
- What are corporate partnerships?
- Mistakes made by startups when trying to get corporate partnerships
- How to deal with mismatch in expectations
- Transformative effects of the right partnerships for both sides
- How to prove your credibility
- How to negotiate from a lower bargaining power
- Being ready for a partnership — both for the startup and for the corporate
Ryan Lou, Fintech and Innovation Group, OCBC
Anurag Avula, Co-Founder & CEO, Shopmatic
Vipin Kalra, CEO, BankBazaar,
David Fowler, Director, PwC Singapore’s Venture Hub
Moderator: Sudhanshu Ahuja, CEO, impress.ai
Key takeaways and highlights:
What are corporate partnerships?
Anurag differentiated corporate partnerships into two types: A startup getting an enterprise as a customer versus a startup and an enterprise teaming up to build a symbiotic partnership to use each others strengths for mutual benefit.
He shared an example from Shopmatic, which has achieved this by securing distribution partnerships for its ecommerce platform for SMEs from large enterprises like HDFC and Singtel. Anurag also emphasized that the right incentives need be set at the operational level to make such partnerships work.
Mistakes made by startups when trying to get corporate partnerships
Vipin shared that it is very important for a startup to position themselves correctly when seeking any kind of partnership with an enterprise. He advised startups to really study how the enterprise makes money or what their needs could be and position themselves in the right place based on the enterprise’s needs. He also mentioned that it is important to show the big picture to the enterprise and start from there. Unless the enterprise can see the bigger vision, they won’t be able to see it as worth their time.
Ryan from OCBC Bank shared that startups should look for non-market leaders to partner with. For example, OCBC Bank is looking to partner with startups in markets where they are not market leaders, in places such as South East Asian countries. He also shared that it’s not helpful to think of startups as the competition. Competition is from challengers like Alibaba, Tencent, PingAn, and Grab who are challenging the status quo of the bank. So through partnerships with startups, banks have a better chance of beating the challengers.
David from PwC shared that it’s very important for a startup to come across as credible when working with corporates. When PwC takes a startup to one of their customers, they are risking their own reputation on the startup’s credibility. He also shared that the partnership can be initiated both by an enterprise need as well as by a startup approaching them for a use case that could be useful for one of PwC’s clients.
How to deal with mismatch in expectations
Both Vipin and David shared that since the culture on both sides is different, it’s useful to have a third party helping both sides bridge the communication gap.
Transformative effects of the right partnerships for both sides
Both sides can massively benefit from a similar partnership.
How to negotiate from a lower bargaining power
Ryan and Anurag mentioned that startups needs to show that they have the right people in the team and know what they are talking about. Smaller businesses also need to make sure they comply with enterprise standards.
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Interested to learn how your enterprise business can collaborate with an innovative startup to improve hiring processes? Email firstname.lastname@example.org today!
impress.ai is an AI chatbot software for recruiters. Our conversational bots conduct competency based structured interviews using techniques from Industrial Organizational Psychology, specifically situational judgement questions. The chatbots autonomously interview, engage, and shortlist candidates at scale, 24/7, and actively fight human bias by hiding biasing information from human reviewers.
If you’re looking for one centralised recruitment solution to manage your growing recruitment needs, impress.ai’s AI-powered conversational bots can help make your day easier.
Our clients have experienced:
– Upto 81% reduction in the time to qualify candidates
– See Upto 30% reduction in the cost of hire
– 5X increase in reach
impress.ai is a Singapore based company and we work with several government clients as well as enterprises like DBS Bank, Accenture, and Singtel.