Corporate collaboration with Israeli startups is increasingly popular, yet success is far from assured without an effective way of bridging the gap
In the mile-a-minute world of technological innovation, strategic partnerships can often be the crucial difference between a groundbreaking idea coming to fruition or getting bogged down by the innumerable challenges lurking at every stage of the development pipeline. These challenges and the ever-growing range of solutions available to meet them have sent multinational corporations on a global shopping spree to seek out the brightest minds and optimal conditions for innovation activity.
However, it is not enough to find the best new idea out there if you are unable to test the concept in real-world conditions and lay the proper groundwork that will ultimately enable the innovation to arrive to the market and make a real impact.
A ‘proof of concept’ (POC) is one of the most expedient ways in which large corporations can test new solutions to existing marketplace challenges, and indeed there is no shortage of willing partners who are prepared to engage in such collaborations. Of all the possible sources of technological innovation, one country, in particular, has shown itself to be a global hotspot of unprecedented progress.
Despite its tiny size and lack of natural resources, Israel has forged a reputation as one of the first places that multinational corporations (MNCs) turn to in search of creative technological solutions. The vastly disproportionate amount of innovation activity occurring in Israel means that key players from almost every industry imaginable are increasingly looking to the “Startup Nation” for the opportunity to expand their portfolios with new and exciting breakthroughs that are changing the world as we know it.
Unlike a traditional pilot program, which is intended only to iron out the wrinkles in what is ostensibly a market-ready solution, a POC is a much more flexible approach, requiring less of a commitment of resources. POCs are intended to embody a limited-scope process to evaluate the feasibility of a startup’s product or service. Often designed to run their course in mere months, POCs are fast-moving, highly versatile projects that allow MNCs to quickly and accurately assess the long-term prospects of a brand-new idea.
In fact, of the MNCs operating in Israel today, more than 70% are (or have been) engaged in a POC with an Israeli startup. However, despite the large volume of POCs conducted in Israel by MNCs and the incredibly high rate of success – roughly 80% are successful in validating the initial concept – only 20% of these solutions end up reaching the larger marketplace as part of long-term integration into the business model.
Why are so few POCs ultimately adopted?
The question then remains: given such a high initial success rate, why are so few of these solutions ultimately adopted by their MNC patrons? In order to answer this query, Start-Up Nation Central and OurCrowd have conducted extensive research – including dozens of interviews with personnel on both sides of the equation – and compiled the ultimate guide to planning and executing a successful POC between MNCs and Israeli startups.
Whether your company operates in agriculture, healthcare, climate, finance, data analysis, or any other tech-driven arena, the fundamental principles of launching a successful collaboration are the same; finding the right partner and putting the strongest framework in place to ensure the maximum potential for taking a solution from the drawing board to the boardroom.
From the vaguely quantifiable cultural disparities to the highly detailed minutia of regulatory issues, governance, and intellectual property rights, our POC Playbook walks you through the concrete steps required to ensure a successful outcome. From assessing an organization’s unmet needs and pain points to identifying the startups with the most promising solutions to bridging the sociocultural gap that extends far beyond a mere difference in language, this book provides all the information you need to optimize your chances of making the biggest splash possible in the ocean of technological innovation.
Whether you are interested in effectively adopting innovation to your corporation, or you are seeking more ways to validate your tech solution among some of the world’s most powerful companies, the POC Playbook is a must-read for anybody who wants to better understand how to maximize the immense potential of cooperation between startups and MNCs.
Join the exclusive POC Playbook launch webinar on June 13, 2022, at 18:30 Israel time (11:30 EST, 17:30 CET) where we will reveal valuable insights from those who have successfully walked this tightrope in recent years, helping pave the way for the next big challenge to become the next big profit-maker.