Contributed By: Doug Allen

#Boom we are in the early stages of an era of great technological revolution. Digital innovations are remaking our markets, companies, economy, and our daily lives just as electricity, and the printing press did before them. Progress with additive manufacturing, virtual reality, IoT, BigData, SMAC, is improving our lives in unprecedented ways. It’s easier to connect, to predict, and to create more so now than ever before – and we are only at the very beginning.

The digital revolution is the best economic news in our lifetimes. Over the next 10 years the digital revolution will shift F500 leadership positions as much as the continents have shifted over the past 600M years. So with all of this opportunity why can your small startup help the mother-ship prosper? Here is what we did @kandy.io.

We built our innovative embedded communicative services on top of GENBAND’s existing technology. Kandy greatly benefited being built inside GENBAND by leveraging their deep science and over 300 patents in real-time communications (see yesterdays post). The intrepreneurship model gave us a much reduced time to market using carrier grade technology and an existing set of customers to sell to.

Trying to accomplish this internally without creating a new brand would have failed – here is why. You see well managed companies are all operating at maximum efficiency. It is important to have the proper staff levels to maintain excellent customer experiences, continue to offer a best in class product set that fulfills a market need, and to do all of this while operating profitably. The most difficult part of creating a new innovative offering within the mother-ship is the risk of shared resources and re-prioritization of employees and capital.

Everyday customers and sales people are demanding new services. It is too tempting to play Robin Hood if not operating as a separate entity. If customer A is paying you 100M it is very difficult for management not to shift resources and change plans every-time an opportunity or need presents itself. Compound that with markets and financial performance and you remain at risk to accomplish your mission.

Existing business process is also a risk. Start-ups need to be agile in every aspect of their business not just development. Established companies are not accustomed to accommodating constant change and rely on extensive metrics to gauge the health of their business and manage cash.

Startups are all in waiting for that incredible moment when as Marc Andressen so eloquently says “the market pulls product out of the startup”. At this moment the Mother-Ship hits warp speed – this experiment confirms to their customers that they are an #innovative company with a very strong future. The new products provide a “halo effect” on their existing product set. It allows for great differentiation from a tightly contested market and offering a new front door for customer and revenue growth.

It is more important for companies to re-invent themselves every day. Digital is no longer a separate strategy – digital must be your strategy. Doing an intrepreneurship can help your company thrive and remain competitive in an ultra competitive and increasingly innovative world. Being left alone to do it is a must. And being steadfast in your resolve and willing to scrum (the rugby type) is a given.