When silos exist in startup ecosystems, systems, processes, and organizations act in isolation. Silos create inefficiencies that ultimately harm startups, along with the other organizations involved in the ecosystem.
For startup ecosystems to retain good health, the flow of data, knowledge, talent, funding, and other resources is essential. In this post, we will explore three types of silos that generate inefficiencies and stagnate startup ecosystems, stopping the flow of resources and ideas.
1. Insufficient Ecosystem Mapping
When roles of entrepreneur-support organizations are not transparent, startups often have difficulty figuring out which organizations to work with, and organizations’ operations often overlap significantly. Startups need specific assistance during each stage of their development, so it is crucial that they are able to identify organizations that are best-suited to their developmental needs. If organizations are all providing similar services, there will be unmet needs during key stages of startup development. Additionally, operational overlap also means that entrepreneur-support organizations will be competing for funding from similar sources.
Using Startup Commons’ Ecosystem Mapping Tool, ecosystem developers can solve the problems of operational overlap and startups identifying the proper support organizations. Rather than simply listing support organizations, our mapping tool illustrates the role each organization plays in relation to startups’ development phases.
2. Opaque Impact Metrics
When organizations fail to adopt and share common impact metrics, operations become less transparent, funding becomes a guessing game, and all accountability is lost. Similar to how customer acquisition rates and costs quantify startup success, impact metrics should be used to quantify the success of support-organization operations and government programs. Before anything can be improved, it first needs to be measured.
Startup Commons’ KPI Data Dashboard makes data collection and benchmarking easy. With our comprehensive tool, ecosystem developers and policy makers can make data-driven decisions to implement ecosystem-growth strategies.
3. Segregated Vertical
Events, support organizations, and startup communities often focus on specific verticals, such as biotech or video games. This leads to echo chambers and closed sub-communities within larger startup ecosystems. Similar to academia, these sector-specific silos create narrow-minded thinking and reduce cross-sector collaboration, which is essential for tackling difficult problems.
For example, what does a fintech company do if they are trying to encourage millennials to provide microloans to smallholder farmers? Although they may be able to build a transaction platform on their own, it may be wise for them to partner with agtech companies to source potential loan candidates, along with video game developers to produce interactive educational content.
Startup Commons breaks down silos associated with specific verticals using the Ecosystem Portal. This one-stop-shop showcases events, people, startups, and service providers in your ecosystem.
Now that you understand how silos can stagnate startup ecosystems, we hope you take time to investigate Startup Commons’ digital solutions. If you want to learn more, feel free to contact us!
Startup Commons Workshop, one day before Slush 2017: Breaking and Connecting Startup Ecosystem Silos
Working with advanced cities in the context of startup ecosystem development you easily find out that the most common challenge for them is breaking and connecting startup ecosystem silos, which is avoiding, from economic development perspective, collecting data variety coming from diverse data types, sources and formats.
In practice this means that data in a silo is not just isolated from broader processes, services and human team, it is also isolated from broader decision-making so therefore there are city benefits that data silos are not currently leveraging, holding back the pace of city startup ecosystem development.
Startup Commons is organising again our Startup Ecosystem Development Workshop taking place on November, 29 during SLUSH 2017 event in Helsinki, covering not only implementing end-to-end digital solutions to knock down ecosystem silos but also planning strategy and building local digital team so that economic development and digital development functions are understood and operated closely together at all levels, from finance to strategy to operations. The workshop is targeted to key stakeholders responsible for city, regional or national economic development
Our workshop program will cover this time the following topics:
To see the full program and to register please go to the event page.
Additionally, you will have opportunity to connect with your global peers to share best practises and build cross border relationship.
Startup Commons has assisted national and local governments at various Ecosystem Maturity levels and population sizes in US., EU and Asia on policy-making and developing solutions, services and instruments on how to nurture and grow a thriving startup culture and how to develop startup ecosystems in a globally connected world.
Early-bird tickets available until next November, 11th. But hurry up, there are only five tickets left!
NOTE: Exact venue location of the workshop in Helsinki will be confirmed closer to event time and details. Details are updated on the event site and all ticket holders will be notified by email, once the location is defined.
Supporting startup ecosystem development, from entrepreneurship education, to consulting to digital infrastructure for connecting, measuring and international benchmarking.
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