This thesis studies the strategic motivations for large firms to engage in partnerships with young ventures, and aims to design a service model for an intermediary that puts the needs of the large firm at the core. This project was commissioned by, and executed in collaboration with Venture IQ, an innovation scouting company founded in August 2015. Venture IQ develops a software platform (named Catalist) to collect data on companies and share the results of their search efforts with their corporate clients. For every search project Venture IQ carries out the same approach, that spans three phases: Kick-off, Search, and Deep Dive. This approach does not embed client needs or provide structure to its team of analysts.
With the goal of this assignment to redesign Venture IQ’s service model with a focus on client needs, the assignment was formulated as follows:
To develop a service proposition for an open innovation intermediary to aid large firms in the early stages of their search for strategic partnerships with young ventures.
Through phase of discovery including review of literature, explorative interviews with industry experts, analysis of the context and Venture IQ itself, two main research questions are formulated.
1. How can Venture IQ’s service model be designed to better serve individual projects?
2. What role can Catalist fulfill in the future of Venture IQ’s services?
The discovery phase provided insights into a variety of strategic motives that large firms have for searching for an innovation partner. To better understand the differences between individual projects and find answers to the research questions a conceptual typology of three search project types is constructed:
Market search projects - The large firm intends to gain access to new or adjacent markets to leverage their current technologies, products or services
Technology search projects - The large firm intends to gain access to novel technologies that can increase value of the firm’s current market
Explorative search projects - The large firm intends to gain access to, or knowledge about unfamiliar markets and the technologies, products or services that are shaping them
The research questions and the conceptual typology form the foundation for the next phase of in-depth research, during which nine search projects carried out by Venture IQ are investigated through case studies. The data for the case studies was collected through observations of client meetings and discussions, and analysis of correspondence and presentation documents. The nine case study projects were augmented with a survey among the analysts working on those projects to document their experiences. Follow-up interviews were held with analysts to clarify responses where needed.
In addition to the goal of obtaining insights into Venture IQ’s process and client needs, the case studies form a method to learn about how the software platform is currently being used and how it can add more value to the search process. As a result from the case studies three platform user types were defined: Analysts: Venture IQ analysts that execute searches provide clients with results, Client lead users: people at the client firm who lead search projects and have experience in the field of corporate venture capital, and Project-based users: employees at client firms that are involved in specific searches because of their expertise in the field.
The insights derived from the qualitative data are summarized into five clusters, that each form opportunities for design. The design opportunities are collected in the design brief that states the vision for the future of the software platform:
The vision is for Catalist to become the go-to platform for initiating and organizing corporate venture capital searches, and accelerate these with Venture IQ’s data-driven services.
The insight clusters are formulated into design challenges that, together with the design vision, parameters and requirements form the design brief, the foundation for the ideation phase.
Three concepts were composed from ideas that arose during team brainstorms. After detailing these concepts were tested along the requirements stated in the design brief and one concept was selected. The selected concept describes a procedure where clients can initiate new search projects within Catalist whenever they desire to do so. This intake procedure consists of a series of questions that cover all the information that analysts need to start a search. Additionally, project information is captured in a format that allows collaborators (client lead users, project-based users and analysts) to review the project characteristics at all times and make alterations when necessary.
Two iterations of prototype testing with clients have illustrated the value of a structured intake procedure. Despite the low fidelity of the prototypes valuable information was uncovered by asking for specific types of project attributes and motivations. Test users, who were client lead users, acknowledged the value of the procedure. Not only to improve the effectiveness of the search process but also to individually assess the underlying reasons for a new project.
A challenge for the future arose during the prototype tests of the intake questions, as some questions and definitions can still be misinterpreted. It is therefor recommended that the intake procedure is thoroughly tested to smoothen out the ambiguity that some elements might cause.
The most important design features are two elements that are strongly connected: a new experience for the client to start their search for a strategic partner, and a service model that is a guide for the intermediary performing the appropriate search actions.
The final design illustrates an innovative process for client users to interact with each other and with analysts, via Catalist. Aside from the intake procedure, a series of features is designed to make Catalist a central place to collaboratively search for potential partners and share ideas about future projects.
Although Catalist must undergo changes before the final design is realized, the new service model can be put into operation immediately. A simple online survey or intake document can be sent to clients that want to start a new project. From this intake survey analysts can select the appropriate actions and start the search process.