Red Riding Hoods should beware of the Wolf

Aside

Unilever and Canary Wharf both invite you to come and help them crack a world-wide problem, but… Corporates are seducing startups into giving them their good ideas, but the odds and the risks against getting your rewards are less evident than they should be. There is a solution. Next week: If you have a tough problem, try a Hackathon.

Here’s a new but increasingly familiar slant for startups – from a big corporate (Unilever). We’ll identify some specific key issues, they say, (in this case how data can be used to attract people to live more sustainably). You come along and work with our staff to suggest ways to crack such issues – at a Hackathon. Our staff will provide background – marketing, sustainability, IT and consumer research, together with one-on-one mentorship. One winner gets £5,000 in prize money, and may be invited to participate in a paid pilot with Unilever, with £31,000 made available to help develop and test their idea.

Level39 at Canary Wharf’s ‘Cognicity’ has launched a similar challenge. Smart City technology companies have been invited to apply for one of six streams – each about a specific aspect of ‘the city of the future’. For each stream, six teams were to be selected to enter an Accelerator with leading technology companies and Canary Wharf Group partners – to develop their technologies and solutions. In each stream, one would receive a £50,000 prize, and ‘pilot their solutions in the ongoing development of Canary Wharf and create a showcase connected city’.

It’s hard to tell whether these are impact enterprises or commercial ventures. Each competition has only one winner; and the costs and benefits of being involved in any pilot are unknowable. There is no mention of who owns the ideas nor who shall have the rights to them. And there is no one there to protect your rights. So if you have a good idea, you would be at risk of being seduced into a process in which, whether you win the prize or not, your ideas may have lost any protection.

Nesta, some time ago in an open innovation pilot, acted as intermediary for P&G by eliciting and selecting relevant ideas and then providing a period of support and development with the help of a VC for their originators (including ensuring adequate protection and the writing of a business plan) and enabling the best to be pitched to P&G. Ultimately, one of these was felt by P&G to have very considerable market potential. (http://www.nesta.org.uk/corporate-connect). This process, known as the ‘Air Lock’ is run regularly now for many different companies by its creaters in Nesta in ‘100% Open’: it builds up communication channels and trust, and it protects IP.

Young businesses in accelerator programmes run by organisations like Techstars and Startupbootcamp expect to get from idea to marketable proposition in 13 weeks (for which the latter take around 7% of equity in return). At that point they are in a position to negotiate with users as investors on a commercial basis rather than simply on the terms dictated by a corporate.

Accessing creative start-up talent is increasingly necessary for larger companies who want to capture the best ideas, people and technologies. As scouting by corporates for good ideas becomes more common, they must not be allowed to play the Wolf to Red Riding Hoods. They should recognize that they do not know what they will be able to catch in their fishing net: vagueness simply raises suspicions.

John Whatmore May 2015

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Startups like Red Riding Hood should beware of corporate wolves

Aside

Unilever and Canary Wharf’s ‘Cognicity’ both invite you to come and help them crack a world-wide problem, but… Corporates are seducing startups into giving them their good ideas, but the odds and the risks against getting your rewards are less evident than they should be. There is a solution.

Here’s a new but increasingly familiar slant for startups – from a big corporate (Unilever). We’ll identify some specific key issues, they say, (in this case how data can be used to attract people to live more sustainably). You come along and work with our staff to suggest ways to crack such issues – at a Hackathon. Our staff will provide background – marketing, sustainability, IT and consumer research, together with one-on-one mentorship. One winner gets £5,000 in prize money, and may be invited to participate in a paid pilot with Unilever, with £31,000 made available to help develop and test their idea.

Level39 at Canary Wharf’s ‘Cognicity’ has launched a similar challenge. Smart City technology companies have been invited to apply for one of six streams – each about a specific aspect of ‘the city of the future’. For each stream, six teams were to be selected to enter an Accelerator with leading technology companies and Canary Wharf Group partners – to develop their technologies and solutions. In each stream, one would receive a £50,000 prize, and ‘pilot their solutions in the ongoing development of Canary Wharf and create a showcase connected city’.

It’s hard to tell whether these are impact enterprises or commercial ventures. Each competition has only one winner; and the costs and benefits of being involved in any pilot are unknowable. There is no mention of who owns the ideas nor who shall have the rights to them. And there is no one there to protect your rights. So if you have a good idea, you would be at risk of being seduced into a process in which, whether you win the prize or not, your ideas may have lost any protection.

Nesta, some time ago in an open innovation pilot, acted as intermediary for P&G by eliciting and selecting relevant ideas and then providing a period of support and development with the help of a VC for their originators (including ensuring adequate protection and the writing of a business plan) and enabling the best to be pitched to P&G. Ultimately, one of these was felt by P&G to have very considerable market potential. (http://www.nesta.org.uk/corporate-connect). This process, known as the ‘Air Lock’ is run regularly now for many different companies by its creaters in Nesta in ‘100%Open’: it builds up communication channels and trust, and it protects IP.

Young businesses in accelerator programmes run by organisations like Techstars and Startupbootcamp expect to get from idea to marketable proposition in 13 weeks (for which the latter take around 7% of equity in return). At that point they are in a position to negotiate with users as investors on a commercial basis rather than simply on the terms dictated by a corporate.

Accessing creative start-up talent is increasingly necessary for larger companies who want to capture the best ideas, people and technologies. As scouting by corporates for good ideas becomes more common, they must not be allowed to play the Wolf to Red Riding Hoods. They should recognize that they do not know what they will be able to catch in their fishing net: vagueness simply raises suspicions.

John Whatmore April 2015

Applied Creativity Sept 2013

Aside

The task of bringing innovations into widespread use needs to have as much emphasis as the development of new technologies or their new products

Processes of innovation do not attract the interest that new products and services do, so we should celebrate the new Level39 at Canary Wharf, a fast-expanding hub of creativity focusing here on financial services and retail, but a model that could find a place in other ‘clusters’; and Angel investing continues to thrive and expand, as do start-ups and Accelerators.

The UK rates highly as a centre of innovationism, with well-identified technological foci and a strongly developing entrepreneurial culture. But while we are plagued by new offers, new deals, new apps, we remain desperately slow to bring major innovations into being, such as HS2, new sources of energy, new airports, new systems (eg in the NHS and in government). Leaders say that innovation is their top priority, but they don’t seem to deliver.

 

 

 

 

 Applied Creativity September 2013

Briefings from John Whatmore at The Centre for Leadership in Creativity

 

 

 

 

john.whatmore@btinternet.com

Join the discussions at https://johnwhatmore.com/

                                     *                                    *                                    *

Level39, Canary Wharf – a throbbing new Innovation Centre

This unique tailor-made innovation eco-system has been carefully designed to meet the varied needs of those who are looking for innovations and those who are seeking to develop them in this part of London; and to bring them together in successful collaborations. What it does and how it does it might have some useful lessons for all those involved in innovationism.

(http://wp.me/p3beJt-65)

Angel investing taking yet more steps forward

Now far from its origins as a side-line for rich single investors, angel investing is becoming a collaboration between different contributors and the UK Business Angels Association – a major supporter of fast-growing young businesses.

(http://wp.me/p3beJt-5S)

 YCombinator a unique experiment

A recent article in the Times (27.7.2013) about YCombinator – as an archetypal Accelerator, emphasises some of its seemingly nuttier aspects; so what do they tell us? (http://wp.me/p3beJt-6d)

Managing to-day’s Accelerators

At a recent Workshop I ran with people involved in Accelerators, it was clear that Accelerators are becoming more institutionalised. They are no longer one-offs, they are part of continuing programmes; they are working with more established entrepreneur ‘teams’; Accelerators are no longer being managed by just one or two individuals but by teams; and they are involving a wider cohort of followers. Moreover they are developing fast. (http://wp.me/p3beJt-5W)

‘Supporters’ becoming more integral to Accelerators

Advisors, Speakers, Mentors and other specialists are getting more and more involved in Accelerators; but generalists, polymaths or iconoclasts should not be excluded. (http://wp.me/p3beJt-6f)

Managing Bubbles

The government would like to discourage ‘bubbles’ caused by overheating, but to encourage others where they are the green shoots of the future. How can they do so? (http://wp.me/p3beJt-61)

Calibrating my Raspberry Pi – my own ‘Outrage Meter’

I don’t need the Press any more: I have found a computer which I can programme to deliver just the items I want that will give me my regular dose of outrage instead of reading the media! (http://wp.me/p3beJt-6h)

 

The Centre for Leadership in Creativity (a ‘virus for creativity’) carries out research and provides consultancy and peer-to-peer learning for organisations looking to enhance their creativity and innovation.

Copyright John Whatmore 2013

The Centre for Leadership in Creativity                         138 Iffley Road,London W6 OPE           

Tel: 020 8748 2553                                             E-mail:  john.whatmore@btinternet.com

 

 

Level39, Canary Wharf – a throbbing new Innovation Centre

Aside

This unique tailor-made innovation eco-system has been carefully designed to meet the varied needs of those who are looking for innovations and those who are seeking to develop them in this part of London; and to bring them together in successful collaborations. What it does and how it does it might have some useful lessons for all those involved in innovationism.

With a simple remit – the development of the area (Canary Wharf) – Level39, 1 Canada Square, opened by Boris Johnson in March of 2013 and headed up by Eric van der Kliej – formerly CEO of Tech City, has quickly become a lightning conductor for those looking for innovations and those with innovations to offer in the kinds of businesses in this area.

Creating the connections and providing a ‘connectious’ space is what its Ideaspace is about – providing space where ideas can be found, developed and connected – without being overwhelmed by the legacy of any corporate culture.

Among its early work was the hosting of the Accenture-backed Fintech Innovation Lab London, a 13-week Accelerator in which a dozen of Canary Wharf’s big banks participated. Seven SMEs – drawn from all over the world – with innovative technologies of potential value to the banks, were housed at Level 39 and provided with a ‘chaperone’ from each of the banks to help them find their way around the labyrinth of people with buying interests and requirements in the bank.

Level39 is now hosting a number of other innovation and acceleration programmes – created by ‘Pivotal Innovations’ which provides custom-designed programmes for corporations and governments looking to innovate and grow.

One of these is the Future Cities ‘Catapult’ Centre (supported by the Technology Strategy Board), which in partnership with Pivotal Innovations is convening cross-sector dialogues (starting with executive breakfasts) with key stakeholders and thought leaders – in finance, real estate, industry and government. The debates will explore viable solutions including critical issues in financing future cities.  They will explore models (eg Rio de Janeiro, Portland Oregon, Songdo in South Korea) and will ask what will interconnected, high-tech, smart cities be like. What new kinds of partnerships might be needed? What investment models might be called into existence? And what enabling policies might make it all happen?

Dassault Systemes, Europe’s second largest software company, has chosen to partner with Level39 and Pivotal Innovations as it expands its strategic focus on financial services in the UK. Its 3D FinTech Challenge 2013 (http://www.f6s.com/3dfintechchallenge2013/info) invites startups to develop solutions for the visualisation of client data in financial services, as a way to condense and simplify such data, such as capital exposure, risk and identity, of which it is often difficult to get a clear perspective, into “single views”, which can be readily understood and acted on. This collaboration too has involved a series of breakfasts with senior executives from London’s banking and insurance industries. Dassault is also showcasing some of its current technology at Level39, such as 3D visualisations of cities like London and Paris on giant touchscreen display units, as an innovative way of presenting information

Designed by Gensler, who also designed Google’s and Facebook’s offices, Level39 has a very wide variety of spaces. It has attracted early-stage businesses eg in retail and financial technology, to take small scale spaces – both entrepreneurs and intrapreneurs – because of its unique ‘connectious’environment. It has 77 drop-in desk spaces, in all sorts of configurations – either for individuals or for startups – most of those startups already post-revenue.

It also has spaces that are specially tailored for innovationism: there are four ‘Sandboxes’ – for Hackathons, for cafeteria-style meetings, for board meetings or discussions, and for presentations, as well as a superb conference room – all with great views over Canary Wharf. Facebook recently held a 48-hr Hackathon in one Sandbox; and the local banks recently held one whose aim was to test their security systems – by trying to hack into each other’s!

It has a cafeteria area with its unique iPad controlled coffee machine; and a Club Lounge will open shortly – for meals, where you can meet and entertain guests (and where you can get a discount if you also agree to commit a certain amount of time to mentoring.)

So what is its secret? In addition to the spaces, perhaps its most valuable asset is Pivotal Innovation’s capabilities in generating and curating provocative innovation events and programmes; and its ability to bring together people with common interests and purposes but who don’t yet know one another.

Its extraordinarily rapid growth (it will shortly open more drop-in spaces on Level 42) and its vibrancy suggest that it has some magic that might be of interest to other cities, like Bristol, Manchester or Liverpool; to other retail centres like Blue Water, Brent Cross or the Airports; to other clusters like the Thames Corridor, Science Parks or Dundee as a centre of the games industry; or even to the NHS or the MoD.