According to a new report entitled the Global CEO Outlook, Chief Executives in the UK are increasingly looking to collaborate with start-ups in order to drive innovation and support their growth objectives.
The research found that 61 per cent of CEOs in the UK are relying on a network of third-parties to support their growth and innovation objectives, compared to just 53 per cent globally. Moreover, 65 per cent of CEOs have put partnering with third-party cloud technology providers at the top of the list of actions they are planning to take over the next three years, followed by collaborating with innovative start-ups.
Meanwhile, 70 per cent of those surveyed in the UK agreed that the only way for their organisation to achieve the agility it needs is to increase the use of third-party partnerships. In contrast only 53 per cent of CEOs outside of the UK made the same conclusion.
As one of the report’s authors commented, the explosion of new technologies, which has impacted customer behaviours, has changed the landscape for businesses looking to grow. As a result, CEOs are having to turn to new strategies to increase the agility of their often large and multi-layered businesses.
She added that entrepreneurial energy, which is an ability to spot gaps in the market for innovative products that consumers actually want, and speed of response to changing demands are what start-up ventures offer and what big businesses want to emulate. Conversely, small businesses benefit from big businesses’ strong routes to market, greater sophistication in business processes and mentors with worldly-wise experience.
However, she also pointed out that it takes a board that is sufficiently entrepreneurial in its outlook to recognise that small and interesting companies could become a very valuable link in their supply chains.