In the fast-paced world of corporate innovation, established startup scouting consultancies are giving way to a more direct and cost-effective approach. Big companies are abandoning the traditional paths of high-touch consultants, like EY, Accenture, and even startup scouting-specific groups like Plug and Play. Corporations are moving toward platform approaches that offer scalable scouting solutions with a system-of-record platform.
This evolution is reshaping the landscape for high-touch scouting services, challenging their relevance in a world where corporations opt for more hands-on control over their innovation strategies. Enter smaller AI solutions on self-service platforms, like SwitchPitch – a nimble, cost-efficient alternative reshaping corporate innovation’s future.
As the corporate partnership landscape transforms, the dwindling client numbers in popular industries at innovation hubs like Plug and Play reveal more than just preference differences—they indicate a broader change in how businesses approach innovation. The following trends were compiled by comparing innovation consultancy websites’ data, including that of Plug and Play and EY, from both one and two years ago.
1. Fintech
The 50+% decline in financial services and banking clients at innovation consultancies since 2020 is not an isolated event but a symptom of a larger trend. Amr Awadallah, CEO of Vectara, highlights a decreasing emphasis on internal ML and data science teams building solutions from the ground up. Instead, organizations are turning towards fully productized applications or platform interfaces to efficiently deliver data analytics and customer experience outcomes.
2. New Materials and Packaging
The New Materials and Packaging sector has experienced a 13% reduction in innovation consultancy clients since 2020. The adoption of platform business models, as highlighted by Harvard Business Review, emphasizes the value and efficiency they bring. With their high valuations, multi-sided platforms leverage AI to make sense of large data volumes, matching customers with products seamlessly.
3. Travel and Hospitality
The 19% decrease in travel and hospitality clients is just one more example. This, too, aligns with the platformization narrative. The need for efficient customer service, powered by intelligent agents and chatbots, resonates with the AI-driven solutions provided by leading platform firms. As businesses grapple with recovery, the decline in reliance on traditional models shows a pivot towards more responsive and adaptable innovation ecosystems.
In the era of platformization and AI, SwitchPitch acts as a perfect example of an innovation ecosystem platform and service that is adaptive and responsive. By offering a largely self-service, yet advanced, model, SwitchPitch enables businesses to bypass the traditional hurdles associated with conventional scouting services.
This agile approach not only aligns with the evolving needs of corporations but also positions SwitchPitch as a cost-effective alternative to traditional innovation models. SwitchPitch offers businesses the freedom to explore, innovate, and control their journey without the financial constraints associated with high touch scouting collaborations or large and costly deals with VCs. The simplicity of the SwitchPitch model, coupled with its AI-driven search and evaluation capabilities, makes it a compelling choice for companies seeking a dynamic, cost-efficient solution.
To learn more about SwitchPitch, schedule a demo here.