Digital tie-up failure puts Indian companies at $52 billion growth risk

Large and small businesses globally are failing to use digital collaboration to innovate together, putting at risk growth opportunity of about $1.5 trillion, a report said today. In case of India, the figure stands at $52 billion. According to a report by Accenture, large companies and entrepreneurs face cultural barriers to achieve open innovation. [caption id=“attachment_2174469” align=“alignleft” width=“380”]  Thinkstock[/caption] “Failure to use digital collaboration puts at risk a $1.5 trillion growth opportunity globally, and as much as $52 billion for India,” the report said. The study, titled ‘Harnessing the Power of Entrepreneurs to Open Innovation’ was conducted in collaboration with G20 Young Entrepreneurs Alliance, surveyed over 1,000 entrepreneurs and 1,000 large firms in the G20 economies including India. Big corporates are increasingly realising that working and collaboration with startups is critical to their own growth and innovation, it further said. The report said 82 per cent of corporates believe that they can learn from startups about how to become digital and they expect the proportion of their revenue by collaboration with entrepreneurs to rise from an average of 9 per cent to 20 per cent in five years. Large firms and entrepreneurs agree that today’s corporate venturing and incubator models of collaboration will increasingly give way to more open and joint innovation, whereby corporates do not just fund startups, but use digital collaboration to jointly create innovations in broader networks of partners. “In the digital economy, corporations have the opportunity to disrupt their markets by working more effectively with innovative startups to jointly create new products and services,” said Accenture CTO Paul Daugherty. “Corporates should not just fund startup innovation, but actively participate in it by pooling ideas, assets and intellectual property. And it will require them to take new approaches to sharing risks and rewards more equitably,” he said. PTI