Shruti Kasat - Collaborative Innovation

8/16/2019 Shruti Kasat - Collaborative Innovation

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COLLABORATIVE INNOVATION


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REASONS FOR COLLABORATIVE INNOVATION

SCALE

CULTURE

INNOVATION

CREDIBILITY

CORPORATIONS STARTUPS

Access to fundsand network that canhelp startups to scale

Lack of strategicresources to help

them grow

Conservative styleof management to

ensure stability

Foster creativity byhiring explorers to

spur new ideas

Designed to execute apredictable business

model

Agile nature ensuresrisk taking attitude to

innovate

Have credibility tobargain for deals andhave millions of clients

Faces challenges inbuilding credibility and

are thus require venturecapitalists, investors etc.


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EXECUTIVE SUMMARY

SeventhGeneration

Wal-Mart

Lyft

General Motors

Vayable

Airbnb

This report aims at highlighting the importance of collaborative innovation between a corporate company and a startup or a

small medium firm. The unfulfi lled innovation needs of organization are highlighted and an analysis is carried out on the

changes acknowledged that led to creation of new products or services. The key lessons learnt are summarized to conclude

the research. The exploratory research is done in context of synergies built in order to achieve a shared goal.

Region : United States of America

Industries Covered: Retail, Automobile & Hospitality


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Firm Name Firm Description Innovation Needed Search MethodCollaboration: Structure an

ResultsWalmart

100,000,000+employees

A leader in sustainability, corporatephilanthropy and employmentopportunity, Wal-Mart Stores, Inc. or“Walmart” serves customers andmembers more than 200 milliontimes per week at more than 8,400retail units under 55 differentbanners in 15 countries.

As part of its broad sustainability goal to sellproducts that sustain people and theenvironment, Walmart was looking to expandtheir number of sustainable offerings.

Founder of SeventhGeneration JefferyHollender was attractedby Walmart's efforts insustainability. Wal-Martimproved the efficiencyof its sprawling truck fleetby 15 percent. Itlaunched experimental,energy-conserving storesthat feature windturbines, solar panels,and xeriscape gardens. It

became the world'slargest buyer of organiccotton.

This enticed Hollenderwho was initially a hugeWal-Mart critique topartner with them.

Structure:Wal-Mart launched a new rconcept - Marketside - opeand staffed independently fWal-Mart. Marketside is a wowned subsidiary. AlthougSeventh Generation was seto Marketside they were dobusiness with Wal-Mart.

Results:Seventh Generation alsopartnered with Walmart on

several key initiatives, incluparticipation in Walmart’sChemical Intensive ProducSustainable Network, whicdeveloped an ingredientscreening program for housand personal care products at Walmart. This has resultachievement of sharedsustainability goals for the

SeventhGeneration

51-200employees

Seventh Generation is committed tobeing the most trusted brand ofhousehold and personal-careproducts for living home. Their

products are safe for both peopleand environment.

Seventh Generation, a niche player inenvironmental friendly household productsneeded to extend its influence in the industry . Italso wanted to extend its leadership in

transparency and consumer education on theenvironmental footprints of its products, whereSeventh Generation required to engage with bigretailers and companies working to develop thescience to support a sustainability index through‘The Sustainability Consortium’.

WALMART AND SEVENTH GENERATION

Sources:i. (2010, July 22). Retrieved from corporate.walmart.com: http://corporate.walmart.com/_news_/news-archive/2010/07/26/seventh-generation-walmart-announce-strategic-partnership-to-offer-environmentally-friendly-sustainable-products-at-more-than-1500-storesii. Dominguez, A. (2010, August 6). GreenBiz. Retrieved from www.greenbiz.com: https://www.greenbiz.com/blog/2010/08/06/why-walmart-doing-business-seventh-generation


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Firm Name Firm Description Innovation Needed Search Method Collaboration: Structure and Results L

GeneralMotors

215,000+employees

General motors is a globalautomotive company. Earning

customers for life is thefoundational promise ofGeneral Motors. It has over20,000 dealers in 140countries.

A network of self driven cars is toestablished.

GM hatched the deal to exclusivelyuse the Chevrolet Bolt as its first selfdriving vehicle. The collaborationwith Lyft was done in hopes to shapethe future of the global autoindustry.GM also aims at enlisting Lyft as oneof their primary customers for theupcoming release of the electric Boltsedan.

Lyft was seeking $1billion in funding.

General Motors fundedwith $500 million tobring Lyft's post moneyvaluation to $5.5 billion.

GM President Dan Ammann's vision of seeing thefuture of personal mobility as connected, seamless

and autonomous,” is being rapidly implemented wGM and Lyft working together.

Key elements of the GM and Lyft alliance include:- Autonomous On-Demand Network: The jointdevelopment of a network of on-demand autonomovehicles will leverage GM’s deep knowledge ofautonomous technology and Lyft’s capabilities inproviding a broad choice of ride-sharing services.- Rental Hub: Beginning immediately, GM will beca preferred provider of short-term use vehicles to Lydrivers through rental hubs in various cities in the U- Connectivity: Lyft drivers and customers will haveaccess to GM’s wide portfolio of cars and OnStarservices, leveraging two decades of experience inconnectivity. This will create a richer ride-sharingexperience for both driver and passenger.- Joint Mobility Offerings: GM and Lyft will alsoprovide each other’s customers with personalizedmobility services and experiences through theirrespective channels.

Lyft500 +

employees

Lyft is a digital startup thatmatches drivers withpassengers who request ridesthrough its app for iPhone orAndroid.

Future of transportation needs to bechanged. An autonomous ondemand network was to be created.

GENERAL MOTORS AND LYFT

Sources:i. GM and Lyft to Shape the Future of Mobility . (2016, January 4). Retrieved from http://media.gm.com/media/us/en/gm/home.detail.html/content/Pages/news/us/en/2016/Jan/0104-lyft.html

ii. Griswold, A. (2016, January 4). Why General Motors is making a $500 million bet on Lyft. Retrieved from http://qz.com/585520/why-general-motors-just-made-a-500-million-bet-on-lyft/iii. Lunden, I. (2016, March 14). Lyft and GM partner on Express Drive, a rental service that paves the way for autonomous cars. Retrieved from http://techcrunch.com/2016/03/14/lyft-gm-express-drive/


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Firm Name Firm Description Innovation Needed Search Method Collaboration: Structure and Results Lessons Learne

Airbnb

2000+employees

AirBnB is a global peer to peer network

that matches touristswith local residents who are offeringcheap accommodations.In addition, they may offer extra

services, such as preparingbreakfast or acting as an impromptutour guide.

The world is quickly filling up

with myriads of "Airbnb of X".Thus, Airbnb needs to find away to tap into them. Airbnbwanted to launch a‘experiences’ features withintheir application.

Both of these

companies aresharing economywebsites. Thus,Vayable was inAirbnb’s radar for apartnership.

Structure:

While startups are not formallyrelated financially or throughpartnerships to Airbnb, guests andhosts may often interact with them tofoster a better experience. Vayablewill be able to list s ervices on Airbnb’splatform and operate on a revenuesharing mechanism.

Result:Both Airbnb and Vayable were able toexplore the untapped market andincrease consumer base.

Airbnb h

blossomservice pgrowing

For Vayainherentlindependlooking fwilling tprofessiotravelersadvancecould nepassion oengagemThis waswith alre

Vayable1-10

employees

Vayable is an international tourismplatform in which local residents offertours of a specific nature based on theirpersonal expertise or experience

In the business model ofVayable, the window ofopportunity for making atransaction was very smallsince travelers usually go forinstant bookings and hostshave day jobs. Thus, thedemand for tour service didnot kick off. An innovativesolution to this was needed.

AIRBNB AND VAYABLE

Sources:i. Cros, T. T. (n.d.). 50 examples of business collaborations.ii. Owyang, J. (2014, April 21). Collaborative Economy . Retrieved from http://www.web-strategist.com/blog/2014/04/21/airbnb-blooms-an-entire-ecosystem-of-startups/: http://www.web-

strategist.com/blog/2014/04/21/airbnb-blooms-an-entire-ecosystem-of-startups/iii. Vayable Overview . (n.d.). Retrieved from LinkedIn: https://www.linkedin.com/company/vayable

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Shruti Kasat - Collaborative Innovation