Giving startups a boost in open innovation

With a rising, young middle class that is increasingly mobile-first and tech savvy, Southeast Asia’s internet population is seeing explosive growth. A report by Google and Temasek Holdings estimated that the region’s digital economy is set to grow to more than US$200 billion by 2025, more than six times from US$31 billion in 2015. Along with the digital wave comes the pressing need and opportunity for transformation of various industries, especially in areas such as ecommerce, finance, trade and logistics.

To accelerate the pace of digitalization and innovation, organizations are increasingly looking externally to scout for emerging technologies to complement their internal capabilities. Startups, with their technology and talent pool are attractive targets for collaborations or investments by larger organizations.

Challenges startups face when participating in open innovation

Singapore as a digital innovation and startup hub is also home to a range of open innovation initiatives. There are plenty of corporate incubators and accelerators helping startups to scale, and numerous venture capital investors with presence in Singapore, as well as a myriad of hackathons and events that link large corporates to startups.

When implemented successfully, open innovation can lead to win-win arrangements. Large corporates access innovative ideas and disruptive technologies without having to develop them in-house, increasing speed to market; startups leverage the resources, domain expertise and go-to-market channels of larger corporates.

While open innovation is all the rage, not all startups are able to benefit fully from it. For example, startups venturing into a new domain may find it challenging to understand the pain points and access problem statements of customers. They may require financial support to translate their ideas into proof of concepts (POCs) or prototypes, in order to validate their ideas and be more attractive partners to risk-averse organizations.

Furthermore, many open innovation initiatives end at the award of a good idea. Few have a structured pathway that allow startups to implement their ideas into POCs with customers, leading to commercialization and eventually deployment. This may also not fulfil startups’ goals of customer acquisition and building a track record.

As startups move from the innovation to commercialization stage, they may find themselves encumbered by bureaucracy, such as legal negotiations and IP discussions when working with a much larger company.

Launch of IMDA’s Open Innovation Platform (OIP)

Enter the Infocomm Media Development Authority’s (IMDA) newly launched Open Innovation Platform (OIP), which acts as a neutral, government-driven intermediary that matches business challenges problem owners face to a pool of problem solvers.

How the Open Innovation Platform works. Photo credit: IMDA.

The OIP provides startups access to POC and prototyping opportunities and funding that problem owners are prepared to commit funding to. Additionally, the OIP provides processes and facilities support to help resource-lean startups navigate open innovation.

The first Innovation Call comprises more than 10 challenges from a range of problem owners, including MNCs, SMEs and government agencies, with up to approximately US$300,000 worth of prize monies in total. Startups and tech innovators looking to solve challenges may apply here to be part of the program. Applications close on September 14.

Within two months of its launch, the OIP has already amassed more than 1,000 users registered on its portal. For a start, the challenges are largely based out of Singapore, but IMDA intends to extend the platform to host problem statements from enterprises and government agencies in the rest of Southeast Asia, a region teeming with opportunities for digitalization.

Startups, here’s how you can get in on the action

On September 4, IMDA will be having an event to showcase the OIP and the first Innovation Call. Look forward to actionable tips and insights on how startups and tech innovators can make the most of open innovation initiatives with problem owners.

Startups from IoT, AI, machine learning and blockchain space, and tech innovators looking to solve problems for Singapore and Southeast Asia; students, and research institutes are welcome to apply – simply click on the button below to register.

To learn more about the OIP, you may visit their website and register as a user here.

Converted from Singapore dollars. Rate: US$1 = S$1.37

Speakers

Jan Reinmueller, Head of Digital Village, KPMG
Lydia Loh, Director, Innovation and Capability Development, IMDA

Problem Owner Panelists from DHL, PDPC, LivFresh and WLNA
Moderator: Jacob Chee, Head of Blockchain Initiatives, Tech in Asia

Event Details

Date: 4 September 2018, Tuesday
Time: 6.45pm onwards
Venue: IMDA PIXEL (10 Central Exchange Green #01-02, S138649)