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

Ideas from across boundaries

Aside

Ideas from across boundaries
Ideas that inspire radical innovations often come from quite different fields.
A meeting at the Rutherford Appleton Laboratory will bring together innovators in Healthcare and Motor Sports – to explore their use of real-time data.

Health monitoring and motor sport currently have a common interest – in making use of real-time data from multiple sources. A novel cross-industry partnering and innovation event will take place at the Rutherford Appleton Laboratory on 24 March with the help of experience in F1 (see below for details). The focus will be on remote monitoring, data acquisition, better analytics and ease of use. Keynote speakers Include Magna, Leica Biosystems, Siemens Healthcare and the Williams F1 racing team.

With the never-ending segmentation of technologies, the need for cross-boundary links is becoming ever more vital. The Innocentive website is a classic approach – in which problems are posted, and it is from other fields that solutions commonly arrive. Open Innovation (P&G) is one source of such links, art and business another (Watershed, Bristol), innovation workshops a third (BT Labs) and partnerships between designers and technologists (Dyson) another.

Increasing life spans and longer independent living mean that holistic health-monitoring can be a valuable asset to health services; but making effective use of the data is, at least at present, more of an art than a science.

Events like this one at the Rutherford Appleton Laboratory with leading-edge practitioners in motor sport and healthcare can help to inspire enduring cross-boundary links. (Maclaren once helped cardiac surgeons at Great Ormond Street Hospital to reduce the risks involved with changing the feed-lines when patients were handed over from Surgery to Intensive Care – by virtue of their expertise in the pit stop. See also ‘ideas via Intermediaries’ – below)

What is needed to encourage the use of real-time data, whether for domestic or public applications, is examples of systems management that are not merely intriguing, but have got real sex appeal; energy management or traffic management don’t have the appeal that F1 does!

If you are wrestling with a difficult problem, join me in this opportunity for thinking up sources that might inspire you with innovative ideas.

For full details of the event, contact gugs@lifesciences-healthcare.com

Ideas via Intermediaries – stories of different perspectives
Including how British Airways used a specialist operating theatre design company to enhance cleanliness in its planes; and another airline used the pit stop as a model for its baggage handling systems
(http://wp.me/p3beJt-9X)

The Internet of Thingummies – my worst Christmas dream
I assembled all my devices and told them that I was giving them all the boot! (http://wp.me/p3beJt-a1)

John Whatmore
February 2015