I recently read an article titled “Corporate Accelerators are Dead”, and panicked a bit. We had just launched our AD Stretch Accelerator Program last year! After taking a moment (and having a calming tea), I reflected on our company’s, as well as my own, “accelerated” journey from the viewpoint of a corporate denizen. And here is the upshot—corporate accelerators as innovation theatre are dead, and rightfully so. However, there are some underlying factors that can help accelerators be an effective open innovation tool that creates value for all stakeholders. 

Who owns the problem? And the solution?

“Working with startups” is an exciting phrase for different levels of employees involved with accelerators. However, accelerators often fail because they are locked into providing mentorship from middle-level managers who tend to address the task of unlocking solutions with cookie-cutter pitch presentations. The purpose of startup accelerators should be to solve fundamental business problems that tie back to the company’s vision and strategy. This should find resonance at the C-suite level and earn sponsorship and buy-in.

For our accelerator, at the outset, we created brainstorming sessions with our cross-functional business teams, where they defined their most pressing issues and then discussed whether a particular problem could be solved through a startup collaboration. Only when we had a plurality of voices behind a particular problem did we bring it forward as an “AD Stretch business challenge.”

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Just as importantly, the solution would be owned by the business units. The accelerator’s role is to provide a sandbox and test ideas that we would not be able to test in normal business operations. Continuous and open conversations with every connected piece, including customers, stakeholders and suppliers, can drive positive change. Our pilots with Greenplat and Wastelabs exemplify this collaboration. During the pilots, we brought together our own teams, waste suppliers, converters, and end-users to track our 20t (923m3) waste and also increased AD Circular (our global recycling project) engagement in Brazil by connecting with brands and converters. As a result, Wastelabs AI platform is now being considered a vital tool in waste logistics for AD Circular globally. 

What is the offer?

While corporations can provide scale, opportunity and financial support to startups, it’s important to remember the value that startups can bring to corporations by challenging them to step out of their comfort zones, take risks and experiment.

In AD Stretch, we structured the first two cohorts as non-dilutive. We did this because we saw the collaboration as being instructive to all the participants and because it accelerated our business understanding. We also wanted to be “startup friendly” – this meant tailoring our legal agreements and interactions with the cohorts to be as fair as possible. In general, we treated the startups exactly how we would like to be treated.

This approach paid dividends both tangible and intangible. Our first cohort participants, the startups and employees, saw the investments that we put behind the program and rallied enthusiastically. We tested solutions with StaTwig to build a resilient supply chain by adopting technology in a traditional industry. During the pilot, we focused on the pharma industry by tracking a COVID-19 vaccine rollout in Costa Rica. Here, we connected over 1200 hospitals and pharmacies, but soon realised applications beyond pharma. While working with MakeGrowLab, we tested high-performance nanofiber from biowaste, which can improve paper properties and replace hard-to-recycle plastic for high-value segments. Our teams tested solutions and worked together to make them commercially viable while adapting sustainable solutions at scale.

What are the metrics of success?

Fundamentally, an accelerator needs to show financial return, albeit with an element of strategic patience. We see the program as a pipeline into our product and solutions portfolio as well as our very active Ventures program. 

However, as Danny Allouche, the company’s chief strategy officer, continuously reminds us, “Long-term financial returns aside, a core part of this program is around fundamental learning and culture change.” In the packaging industry, which has long been quite conservative, learning and culture change are fundamental accelerator building blocks. They are best exemplified by the dashboards we share around “What went well and what did not.”

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As we invest in startups we support them as they test, experiment and learn so that innovations can come to market and deliver the desired impact far quicker than if we all chose to do it alone. 

AD Stretch as a platform enables us to constantly challenge ourselves, experiment without fear of failure, and create sustainable solutions at speed. What would take years, possibly decades alone, is happening in a matter of months, and this is why collaboration is at the heart of what we do. More importantly, it is changing how we work and incorporate technology to build impactful and sustainable solutions. 

Strategic Marketing Manager Sandra Patricia Alvarez says of her experience: “After 28 years with Avery Dennison in Latin America, the AD Stretch Accelerator Program has allowed me to break paradigms and provide innovative solutions beyond physical labels, enabling better consumer connections for brand owners. It’s been an extraordinary opportunity to work on marketing solutions and gain a new perspective on the business.“

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Our AD Stretch Accelerator Program’s second cohort received an overwhelming response of over 300 applications from startups around the world. Now, the time has come to showcase the seven exceptional teams that have made the cut. To get a glimpse of innovation in the packaging industry’s future, see our official press release. Here, you will find more details about the startups, their groundbreaking ideas and the immense potential they hold.

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This article is produced by the e27 team, sponsored by Avery Dennison

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