321 works with fifteen major groups to achieve, execute and succeed in their innovation process. What is it that pushes large groups to turn to startup studios? How does a startup studio work? What is a venture builder?

Why do large groups use startup studios?

In your opinion, is it a coincidence that the digital camera was not launched by Kodak and if Spotify was not born from Universal or Sony? At 321, we don't believe in chance. We believe in co-construction. We believe in collaboration. Since the creation of 321 in 2019, we have worked with fifteen major groups to realization, execution and success of their innovative ideas. In this article, we come back to the reasons that push large groups to turn to startup studios to carry out their innovation process and the way in which we work, at 321, with these key partners.

How do startup studios contribute to corporate innovation?

The desire to innovate on the part of managers of large groups is obvious. Everyone knows how the acceleration of innovative projects can have an impact on their results and a high potential for their business. Everyone knows that these ideas open up new horizons. But all also encounter difficulties in setting them up.

However, it is not for lack of trying. Large groups have many solutions to innovate: internal labs, open innovation approaches, startup acquisitions, intrapreneurship programs, etc. While innovation approaches are multiplying, few of them are taking shape and developing.

It is from this observation that 321 was born. Leaders have very good internal resources to launch new growth paths, but these activities are often orchestrated with a certain difficulty and results that do not live up to expectations: “ETI and CAC 40 companies have golden assets but are unable to fully and calmly take the digital turn” explains Patrick Amiel, the co-founder of 321.

It must be said that innovating in a large group is a big challenge. Truly innovative ideas challenge an organization's established business models, as well as decision-making processes. “Large companies that decide to innovate by starting their business internally suffer from extremely slow decision-making processes marked by innumerable steering committees. This inertia penalizes their time to market. When the plunge is about to be taken, the market has moved and it is too late.” Patrick Amiel analysis.

As for large groups that decide to go through a consulting firm or marketing agency to successfully carry out their innovation process, it is not much better: “Consulting firms will be excellent at analysing market opportunities but unable to start a business. As for marketing agencies, they will set up an unwavering strategy for you but will not be in a position to find customers.” reasons the director of 321.

What are the advantages for a large group of partnering with a startup studio?

In this context, startup studios are emerging as the the most entrepreneurial solution let him be. They make it possible to test ideas with a high degree of uncertainty while avoiding the need to spend precious time in internal validation processes. Major innovation projects need develop outside the company, independently. “You have to let them crash, pivot, find themselves without impacting the core business” continues Patrick Amiel. In other words, you have to leave the entrepreneurial spirit, so specific and so powerful to take over.

”This is clearly our differentiating point, completes Juliette Morel. Unlike other structures that choose the profiles of former consultants, at 321, we are all serial entrepreneurs. Everyone put together one or two boxes. This pragmatism defines us and explains our DNA, which is strongly oriented towards operations, turnover and hypergrowth.. We are used to blank sheets, we are programmed to identify market opportunities, we are driven by a business focus, we make decisions quickly, we are not afraid to break our own nerves and above all we avoid beginner mistakes.” complete it.

In addition to the entrepreneurial mindset, startup studios are renowned for being able to mobilize the best profiles very quickly for this or that vertical. Successful startups were set up by entrepreneurs who knew how test, adapt, organize quickly to develop but who also knew how to surround themselves with hardened entrepreneurs. This ability to attracting the best entrepreneurs then placing them at the head of the startups created is an undeniable asset.

In short, Major groups are turning to startup studios for agility and entrepreneurial freedom necessary for the expression and execution of innovation. This collaboration is based on the execution know-how of entrepreneurs and on the firepower of major groups. The example of Nestlé, which is among the few to have succeeded in disrupting its business model with Nespresso, is the perfect example of this idea. Indeed, one of the key elements of this success is based on the fact of having developed the project in an external and autonomous structure.

Startup studio and large group: co-creation and co-responsibility

In this large groups/startup studios relationship, it's all about co-creation and co-responsibility, as Patrick Amiel points out:”At 321, we refrain from using the very word “customer”, preferring that of partner. This nuance changes the profound nature of our relationships.” The members of 321 are in fact all aligned on this point: the very idea of supporting corporations in their innovation process requires breaking the customer/supplier relationship. It is the ultimate condition for collaboration. Exchanges are regular and transparent. ”Our main challenge is to succeed in involving corporate women in our reasoning, in transmitting our methodology to them, in leading them on the entrepreneurial path.” explains Juliette Morel, chief of venture design at 321, stressing that the aim of this collaboration is fundamentally to manage to share your beliefs in order to create membership.

It must be said that each has to contribute to the other. Beyond their ability to identify business problems Because of their knowledge of the market, major groups provide a Unfair Advantage, that is, a differentiating element that is not easy to copy or acquire. ”This can be, for example, a powerful data history, a strong brand or even a solid physical distribution network” specifies Juliette Morel. In short, any element that can be activated in concrete terms, which allows us to go further and more quickly and contributes to optimizing the success of the company.”

As for startup studios, they bring agile methods of designing solutions and exploring markets in a rapid iterative approach. They bring their external critical perspective of the idea as well as a Way of Think different. Thanks to their expertise in rapidly testing a new market and identifying a market fit, they are able to saving businesses time and money while helping them learn new ways of thinking fromExperienced entrepreneurs.

How does a startup studio work?

To find the idea with high potential and transform it into a real business, 321 applies a methodology in 3 phases During which 321 positions itself as a co-shareholder and co-pilot.

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1 What is venture design?

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The first phase lasts two to three months. The venture designers are tasked with studying new business opportunities before deciding whether or not to launch. Once the business idea has been validated, the next step is to analyze the go to market. “This means checking point by point the parameters that allow the product or service to be successfully launched on the market. Developing the strategy to establish a position and stand out on the market is a key step in this first phase. In addition to validating that there is a market opportunity, the question is how do we actually take the market? With which strategic partners? With which team?” explains Juliette Morel, chief of venture design at 321.

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2 The venture building phase

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It is then the Build team that takes over with the mission of putting an interim CEO at the head of the new company. The role of this person is to gather a team, put a V1 online, and secure the first clients. Very concretely, this phase aims to build the product and launch it on the market in order to acquire users. A business review is held every week. A board meets every two months to make strategic decisions. At these key moments, a representative of the large group is present. “This is the person responsible for carrying the path of innovation within the large group; it can be the innovation director, the M&A director, the digital & product director or even the CEO,” details Romain Ledru-Mathe, cofounder of 321.

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3 The scale phase

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Next comes the scale phase, during which 321 selects a CEO with equity participation and places them at the head of the newly created company. Their mission is to manage the scale-up, with a growth acceleration strategy, particularly internationally. “It is indeed us who go out and find the executive. We manage 100% of the CEO recruitment; the large groups don’t need to worry about it,” specifies Romain Ledru-Mathe, cofounder of 321.

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This methodology has attracted around fifteen corporate partners, such as Brittany Ferries, which launched with 321 a new platform for alternative travel, and PMU, which saw the opportunity to move quickly into the Web3 field. By turning to startup studios, large groups address challenges of velocity (testing quickly and implementing the project), integration (embedding a new business into the company without damaging the existing one), and responsibility (preserving the company’s historical assets and current clients).

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Potential obstacles to collaboration between large groups and startup studios
While the advantages of working with a startup studio to successfully drive innovation seem clear to Patrick Amiel, he nevertheless reminds us that this type of collaboration can initially intimidate large groups that are not used to “starting from scratch” and are more accustomed to running projects on a larger scale. This awareness is essential for collaboration with the corporate partner to go smoothly. Not to mention the discussions needed to make them accept opening up the capital to third parties: “Of course, as with any innovation process, there is a risk of losing money. But above all, there is a risk of learning enormously.”