Posted by & filed under Innovation, Organizational learning, Product development.

It is hard to think of a better time to be a bank, insurance company or other corporation who wants to work with startups. Over the past years, companies specializing in organizing hackathons, incubators, accelerators or any other kind of startup related programs and services have sprung up like mushrooms. And that’s why regardless if it is the first time an organization is embarking on the journey to work with startups or already have well-established systems and processes, they can easily find whatever help they need.

At the same time, there are so many players that finding the partner (or partners) for your organization and your specific goals is definitely not the easiest task. And that is why we created this guide to help you find the right partner for you.

Read more »

Posted by & filed under Featured, Human Resources, Innovation, Organizational learning, skills, Startups.

The rapidly changing world requires corporations to re-think all aspects of their organizations. They need to renew their strategies, operations and the way they organize their resources. Some of the most successful companies have realized startups are a good tool for fostering organizational renewal. They understand that in today’s world, they cannot only rely on their in-house resources.

By building relationships within a broader ecosystem of organizations, corporations can mobilize relevant expertise and talent to address unexpected challenges whenever they arise. Bill Joy, the co-founder and Chief Scientist of Sun Microsystems once Read more »

Posted by & filed under Accelerator, Banking, Featured, Fintech, Innovation, Startups.

It’s clear that for startups, having a big bank as a partner is crucial. And that OTP Bank is such a partner. It can make it or break it. It makes your startup bank-validated. But collaboration is not a one-way street. Tweet this. You also need to understand your partner and their motives; why they want to collaborate with you. After all, those are the things that will shape how the future collaboration will really be in practice.

We had a chat with key people in OTP Bank to find out and share with you. And let me tell you, startups are in for a treat. Read more »

Posted by & filed under Accelerator, Banking, Fintech, Innovation, Technology.

Digital technologies have transformed the way we do… everything. And it continues to transform it, every day. We often read about new technology that looks like science fiction… but we’ve exploited only a fraction of the technologies available today.

On October 3rd and 4th I was lucky to take part in OTP Group’s Digital Meetup in Kecskemét. Participants included key people from OTP Group, from its 9 different countries. It also included partners that OTP Bank is working with – such as myself from Nestholma.

I got to see very interesting points of view on digitalization. Banking is going to change a lot in the upcoming years. And not only in the obvious ways. Read more »

Posted by & filed under Corporations, Innovation, Organizational learning.

Hurricane Ophelia decided to pay a visit to Ireland at the same time that we were visiting Dublin for an event about collaborating to make the best out of PSD2. And one can learn a lot from seeing how people react to a hurricane. In a way, dealing with a hurricane can be like dealing with changing markets. Change is like the wind, and when it’s fast and sudden, it’s a hurricane. The hurricane of disruption. Tweet this.

Many industries are going through their own “disruption Ophelia” at the moment. Fintech is going through a regulation hurricane. Knowledge-based industries, in general, are bracing for the AI hurricane. All industries deal with the hurricane of digitalization, one way or another.

Read more »

Posted by & filed under Accelerator, Banking, Customers, Fintech, Innovation, Programs.

Telling the future is difficult. And even more in banking right now, with so many innovations happening. New fintech startups (like you?) claim to disrupt the industry every day. By collaborating with a big bank you can improve your chances of success. And that makes those banks more ready for the future. But in which areas can we make the biggest changes?

For our upcoming program with OTP Bank, we’ve taken a shot at defining the key areas of banking that need new innovations. Read more »

Posted by & filed under Accelerator, Corporations, Human Resources, innovating, Innovation, Marketing, Product development.

How to renew corporations with startups

A whitepaper by Nestholma

Corporations need to renew themselves, and one of the best ways to do that is by working with startups. But that’s easier said than done. Corporations need to understand what they want to get out of the collaboration. They need to understand what they’re getting into. And they need to understand what their options are.

At Nestholma we discuss with many people from corporations. And very often we end up in the same discussions. Those are great conversations: we get to understand the concerns that people have. We also get to see what gaps they have, when it comes to working with startups.

That’s why we decided to put together this whitepaper. In it

  • I dive into what makes working with startups worthwhile for corporations.
  • Take a look beyond the flashy surface: corporations can benefit in branding, innovation and learning.
  • I also explore different ways that corporations engage with startups.
  • I finally dwell into what makes some accelerators more successful, for a particular corporation.

The whitepaper is packed with insights. You can skim through it quickly, and discover new angles for your collaborations. Or you can peruse it. In that case, prepare for a lot of content. You’ll understand what makes some collaborations successful. You’ll also understand why others end up a mere stunt.

Download the Nestholma whitepaper

Corporations need to renew themselves. One of the best ways to do it is by working with startups. This white paper explores the benefits of branding, innovation and learning. It also reviews alternatives and best practices on collaboration.

Click here to download the whitepaper.

This text is born of many discussion. Many of them within Nestholma, and many with our customers and potential customers. But publishing a whitepaper is not the end of a discussion, but the beginning of many others. I would love to hear from you! Feel free to drop me a line at [email protected] and let’s talk!

 

Related post: 4 ways working with startups can make your organization more agile and innovative

Posted by & filed under Accelerator, Banking, Corporations, Fintech, Innovation, Startups.

Collaboration. Collaboration. And collaboration. Be it global warming, science, the economy, collaboration is the word that keeps popping up more and more, especially during the past couple of years. With globalization, we have become so connected that collaboration is pretty much part of our DNA. And the need for collaboration is only increasing. And so are the possibilities.

Companies don’t just see other companies as competitors or suppliers/customers anymore. They are sizing them up to see if they should work together instead of trying to beat each other. That’s even more so in fintech.

Over the past couple of years, the narrative in fintech has changed from fierce competition and trying to one-up everyone else to collaboration. It’s no longer the established players, banks, trying to smother the new entrants, startups, or the startups trying to throw the old masters out the game. Now it’s about the two working together to create something neither could do alone.

Why corporations should work with startups

For corporations, working with startups can give them access to whole new kind of innovation power. While corporations have resources, a huge amount of industry knowledge and plenty of smart people working for them, they are rarely called innovation powerhouses – words often associated with startups.

There are many reasons why corporations can’t be as agile and innovative as startups are. While corporations can learn from startups (and they should!), getting new innovations from startups makes a lot of sense. That way they can get innovations from many startups. And they can get it much faster than by doing it by themselves. Quantity and quality without using much of their own resources.

Collaborating makes sense especially in areas that the corporation doesn’t have knowledge of in-house, for example in AI. Instead of spending resources of acquiring the needed knowledge and then starting to think what could be done with it, they can access the best AI innovations straight from startups.

By working with startups corporation are also bound to learn from them. They will get exposed to the ways startups work, and why they can be so agile and innovative. And those learnings can lead to organization wide changes.

Also, when corporations work with startups it is inevitable that some of the ’startup coolness’ will rub on on them. That’s good for customers, attracting new talents and getting new innovative startups to approach the corporation. It’s a win, win, and win!

 

Collaborating can be beneficial for both startups and corporations

 

Why startups should work with corporations

One of the big differences between startups and corporations is that corporations have a known name, brand value, behind them. They are a known and trusted player in the market while startups are nobodies. No one knows what they do, what they can do, or even if the whole thing is just a scam. Especially in banking gaining the customers’ trust is a very important but difficult issue. After working with a big name in their industry, like a known bank in fintech, startups are immediately on a different level. If that well-trusted corporation trusts them, also the customers think they must be legit and be able to execute what they promise.

Fintech startups also face the problem that they need data, lots of it to be able to make their solution work in real life. And they need users, people to test their solution. And the more the merrier. In such trust-sensitive industry as banking, getting those is far from easy, impossible even.

For lots of startups working in just one market is a luxury they can’t afford. Unless they are in a very market-specific business or work in a huge market like China or the US, aiming to be global is a must. But going global isn’t always (if ever!) so easy. In a new market, everything is different. The competitive environment, laws and regulations, even the customers’ needs among many many other things. There might be amazingly potential new markets, but if there is no entry point, they are often just passed to the ’no’-pile. But with a local partner, preferably with one that already has a great presence in the market, they can get just the knowledge and access to the market they need.

 

Collaboration between startups and banks can make many impossible things possible.

 

One great example of such a partner for startups is YES BANK, one of our partners in the Global Fintech Accelerator.

India & YES BANK

For fintech startups right now India is a very interesting market. And by interesting, I mean hot; hotter than hot even! In India there is a huge need for new fintech solutions. And even more importantly: people are eager to use them. In fact, the fintech adoption rate is on top of the world with 52%, only second to China and growing. The environment in India for fintech startups is also very supportive: investments are booming and the government is being very proactive in supporting fintechs. In short, India is THE place to be for fintechs. But accessing that massive potential is another thing. Foreign startups need an entry point, a partner to help them gain access to the market, the right knowledge and the tools needed. One good example of such is the YES Fintech accelerator by our Global Fintech Accelerator partner YES BANK.

YES BANK is the fifth biggest private sector bank in India – you can say they know the Indian market. And in the YES BANK accelerator startups get access to that knowledge. Startups also get access to their 200+ APIs and their 2 million + retail and 15 000+ corporate customers – just what it is needed to test and validate the startups’ solution.

In their first cohort as well, YES Fintech had two international startups – soCash (Singapore) and Paykey (Israel). The overall cohort ended up with an offtake of 90% wherein 9 out of 10 solutions were taken up by YES BANK.

The accelerator program also provides access to the top 20 global fintech markets, offer mentoring and coaching and much more. Just the knowledge and tools needed to conquer the Indian fintech market and in general, get the startups on a whole new level. You can read more about the accelerator here.

The real winners = customers

While corporations and startups will benefit greatly from collaboration, the real winners will be the customers. No matter what happens and who ’wins’ or ’loses’, customers will get more options and better solutions. And as there are plenty of options, in fact, more and more of them as the world is moving increasingly towards supporting competition (e.g. PSD2 in Europe), the customers can just pick and choose. The winners of the future will be the providers who answer the needs of the customers the best. Needless to say, it has never been a better time to be a banking customer!

 

Read more about YES FINTECH accelerator  and more about our Global Fintech Accelerator.

 

Posted by & filed under Accelerator, Corporations, Entrepreneurship, Innovation, Mentoring, Startups.

Most collaboration between startups and corporations shows very little results. The reason is that they are just trying to improve bits and pieces of, for example, the offering. That’s not enough. The winners will be the ones that can renew their attitude, learn to adapt and embrace the change. Startup collaboration is the best tool for that, but it needs to be done right.

Startup collaboration is not an innovation band-aid

Startups are not innovation band-aidMany corporations still try to filter out the perfect startup candidates before starting to work with them. They usually end up with companies that have a product that can be easily integrated with the current offering. Good for them if they can provide something useful for their customers, but that approach rarely ends up in changing anything. It usually just turns into an incremental improvement.

It doesn’t help you if you do the same thing a bit better than before. Not when in most industries you don’t know how your business will look like in just a few years. Corporations need to break the familiar ways of doing things, break the patterns to get ready for the unknown. Companies need to build skills to be ready for the future. The old skills may not become obsolete, but everyone needs to find new ways of using the old skills in new environments. We need to be experts at finding new uses for the things we’re good at. We also need to become experts in the new things that are needed to solve our customers problems.

While startups can learn a lot from corporations, also the startups can teach the corporations many things. So, why do many corporations go only for the incremental improvements and one-by-one collaboration with startups? Because this way fits their existing way of working. They have used subcontractors and other types of partner forever and startups are no different. Corporations are really good at buying products and services. They have developed efficient procurement models and processes that they want to use also with startups. But that is not enough. In fact, I think that this way of working totally misses the point and the big opportunity.

Turning from individual innovation partnerships to powering the renewal at corporations

Nestholma started with the idea of helping startups and corporations to build new innovations and make deals together. In our accelerator model, we make the startups and corporation work together with clear business goals in mind. That has worked really well in the 20 accelerators we’ve done. Still, over the past two years, we’ve realized that it’s much more than making a few deals happen or arranging a great Demo Day pitching events.

Couple of interesting things have happened: HRD and entreprenership

To make the impact of the accelerators as big as possible, we’ve ended up coaching not just the startups and also the corporation’s employees. Regardless if you talk in the context of change management or broader transformation, our work has been more and more about helping the employees to learn from the startups. This has helped them to become better at facing whatever challenge may lie ahead of them.

Many times the management is a bit worried that the employees may not have enough time to work with the startups. Our experience is that the employees love to work with the startups and find the time if there’s good support for them. Also, we’ve found that it’s not just the innovation people, but everyone in the organization that wants to join from customer care to sales and tech. After working with startups many corporate employees have told us that the work with startups has given them new boost on working with the other things, as well.

The other interesting thing has been the work we’ve done for the ex-employees of Microsoft and Nokia. These companies have laid-off thousands of employees in Finland over the past couple of years. As a Finnish company we wanted to see if we could use our business coaching and accelerator model to help them to find their new path in life as entrepreneurs. In great co-operation with both Microsoft and Nokia, we’ve coached hundreds of ex-employees from these companies. Some have become entrepreneurs, some have gone to work in small companies and some are just using the entrepreneurial mindset to pursue whatever else they want in life (read more in Finnish). Not everyone has ended up being a growth company entrepreneur, but we have found it important give back a little by using our expertise to help them.

Nestholma's startup accelerator and entrepreneurship coaching model.

Business leadership and HR can drive the change with startups

Still, what started out as an interesting experiment and an effort to share our knowledge, turned out to be one of the biggest learnings for Nestholma. This experience in coaching the entrepreneurs has helped us to develop a deep understanding on how to help also the employees still working inside a corporation to change. In fact, we find ourselves increasingly in the same tables with the business leadership and HR. They want concrete business results fast, but they also want to make sure it’s not just what I sometimes call an innovation band-aid. They want to see sustainable impact in the entire organization and business as well as sustainable renewal of the company.

Business leadership and HR want to make sure the entire company is able to quickly

  • adapt to new market conditions
  • find out what are the problems worth solving
  • learn new skills while they are working
  • move effortlessly between different types of internal and external operational models (startups, internal ventures, line organization etc.)
  • reinvigorate the employees to pursue new paths in their personal professional growth
  • turn high level strategic goals into real business initiatives

And we’re very happy to be there. With our two-part accelerator and entrepreneurship coaching model, we can provide the tools to tackle these needs and more. The great thing is that this is also the best way to help the startups learn and succeed.

Topi Järvinen @topij

Start renewing your business today!

Let’s talk how Nestholma can help to renew your entire company and find new businesses with startups and beyond.

I want to hear more