A startup is a newly formed business with particular momentum behind it, based on perceived demand for its product or service. The intention of a startup is to grow rapidly as a result of offering something that addresses a particular market gap. And a startup usually involves innovation, offering a new concept or something that is not widely available. The perceived market gap drives expectations of rapid growth and, as a result, investment that will help fuel that growth. However, there is also risk involved because the business concept is unproven.
India ranks third in the world with 4,200 startups after US and UK, a number that is expected to rise further in next couple of years. Looking at the graph, arises a question in our mind how exactly CIOs can look at startups for inspiration on how to obtain funding. There are quite a few ways to do so like entrepreneurs pitch their ideas to investors all the time; in order for CIOs to get funding for their IT projects they have to act like an entrepreneur.
There are three ways startups make themselves more appealing to potential investors, Selling the vision – If you’ve ever seen an entrepreneur they sell the vision by painting a picture to their potential investors, telling them what the return on investment will be and get the investors excited.
For the IT organization, the vision should be the business case,so think about how you can use that.
Second is just like startup, speeding up the process and choosing to pursue more effective projects over others. This will help IT act more like a startup and also help convince the CEO and CFO that IT projects are worth investing in.Thirdly, hire a social scientist like Startups “employ people like behavioral economists and anthropologists, who go out and watch people using their products. Unfortunately, this is an area where IT is often lacking.
Bringing someone like a social scientist onto the IT team would help increase the effectiveness of the technology and services the company is providing which, in turn, will also help convince the CEO and the CFO to get on board with IT projects.
After all, CIOs are basically the CEOs of IT Inc. They should think of their IT projects as the equivalent of great ideas for a startup and figure out how best to raise money for them.