A cluster-based Accelerator…here helping to enable SMEs with innovative products to market to the big companies of this sector – all located close to one another; the process energised both by collaboration and competition
This novel application of the Accelerator in a cluster suggests how SMEs with innovative products can be promoted by a period of intensive support to help disseminate their innovations into organisations in the cluster, where the latter are working both collaboratively and competitively.
While most commonly Accelerators have been about helping aspiring entrepreneurs to develop their ideas into commercial ventures, some, like this one, have been about helping SMEs to grow. They have done so by focusing on the development of strategy (see Qi3 at http://goo.gl/Od6F1), business model (see The Young Foundation at http://goo.gl/ET1zQ), new concepts (see Watershed http://goo.gl/XCTxK), new products (see Plato, Belgium at http://goo.gl/hzBJ5), and new customer segments and marketing (Fintech below).
The FinTech Innovation Lab London is a three-month long collaborative Accelerator, in its third week as I write, in which seven young businesses in IT have been brought together, all of them carefully selected by the senior IT officers in the thirteen big companies in this project (twelve of them large banks) because their ‘products’ might be valuable to them.
The FinTech Innovation Lab, provides its seven companies with office space in the heart of Canary Wharf for these three months, and provides mentors to help them through the process. And a ‘chaperone’ was appointed by the senior IT officer in each company, whose job it is to help them talk to people in their bank (The cultures of the banking industry and the IT industry are quite different, and selling by the one into the other is recognised as a complicated and arduous process.)
A similar ‘Accelerator’ has been run for the last two years with a number of banks in New York – with evident success – enabling them to make use of products or services from other fields which have no necessary relationship to the banking industry.
The role of these ‘chaperones’ is to identify which of these young businesses might have something that would be of value to their company, and to help their staff to get in front of the right people in their company, people who could help them to make use of their products. One person who has experienced this process is said to have commented that his company was able to achieve in the three months what would otherwise have taken two years.
The process is energised by the fact that having committed to the project, each company’s senior IT officer and its ‘chaperone’ are simultaneously collaborating and competing with those of the other companies to get the most out of the process and out of the IT companies and what they have to offer. Every week, one of the big companies makes a presentation in the co-working space, for example about security problems, about their purchasing hoops, about their current challenges etc.
The programme finishes with ‘Demo Day’on 20th March; and hopes will focus on whether it has stimulated growth in the SMEs, whether it has brought innovative ideas into the banking industry, whether it has identified interesting investment opportunities to present to investors; and whether in the longer term it seems likely to inspire entrepreneurs to see potential in the financial services industry.
In addition to the thirteen big companies and the carefully selected companies in the IT industry (several of which are from other countries – reflecting the international nature of the banking industry), the parties to this exercise, all of whom can hope to gain from it and therefore have an interest in its success, are the major consultancy organisation that is managing the process (which has clients in the banking industry) and the predominant landlord in the area, which has provided space for new business nurseries in the hope that among them might be some future tenants. The TSB is making contributions to the programme. And it is formally supported by the Mayor of London.
If you are interested to learn more and meet the consultant who is running the process, email me firstname.lastname@example.org.
John Whatmore, The Centre for Leadership in Creativity