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Editor's Notes

• #2: (Welcome by Phocuswright moderator – will introduce Simon and Bart based on bios provided. ) SIMON to introduce the topic. - Good afternoon everyone, I’m Simon and today we’re here to discuss ‘Startups & Corporations – a match made in innovation heaven’. Startups are the hot topic at the moment, with them being talked about in the media, at events and becoming an integral part of what we all do. We even saw it this morning at the Travel Innovation Summit with some great travel startups pitching their ideas. - But how can corporations, like Amadeus and yourselves, work successfully with startups - companies which are often seen as polar opposites. - Last year, Amadeus launched Amadeus Next to build a travel tech focused startup community in Asia Pacific and today we’ll share some of our learnings. - But first let’s take a look at the travel and startup landscape today. < CLICK NEXT SLIDE>
• #3: SIMON: We all know travel is huge at 10% of the total contribution to global GDP. That’s 7.6 trillion US$ is total contribution (direct and indirect AND… <NEXT SLIDE>
• #4: the rise of online travel has shaken up the travel industry 20 years Microsoft Expedia Around 40% of total travel sales is booked online 90% of travel decisions are made online Always On Always Connected
• #5: SIMON: And we’ve seen it in the numbers. By 2020, two out of every five global travellers are expected to be Asian, accounting for nearly half of tourism expenditure. So the opportunity is huge. Travel is huge, technology is advanced and it’s the perfect time for a boom in travel tech startups. <CLICK NEXT SLIDE>
• #6: SIMON: 2015 was the year of the unicorn, with more startups than ever before reaching the $1 billion valuation mark. Globally, it’s currently around 160 companies. But if you look at the list of unicorns there’s still no specific category for travel. There’s fintech, e-commerce, healthcare, big data etc. but travel is still not recognised as a standalone area. AirBnb is classed as ‘e-commerce’, Uber is ‘on-demand’ and Skyscanner is defined as ‘internet services’. But we all know, these companies have a huge impact on travel. - We did go ahead define the companies that had a travel focus, and of the 150, there’s <CLICK> 15 who focus on travel and then within that <CLICK> 6 travel related which are valued at $5bn or above. Of the 15 in Asia Pacific, there’s Olacabs here in India, Ucar Group in China or GrabTaxi in Singapore. - So we’re seeing that travel startups can make a lot of money with the right idea! In fact we’re seeing that the balance has shifted east… < CLICK NEXT SLIDE>
• #7: SIMON: The money is coming this way. If you compare all the funding in travel startups in 2014 and you exclude the massive deal of 2.4 bn of Uber, APAC has taken the majority share with 55%. Doubling the funding in the US (27%) and more than 3 times the funding in EUR (17%). So it all looks positive right? The money is there, travel is growing, the time is right. But there’s a problem. <CLICK NEXT SLIDE>
• #8: SIMON: Where are all the travel tech startups? Well, actually they were at the Travel Innovation Summit this morning…. No but in all seriousness, when we began looking at the startups landscape in travel, we saw that in Asia Pacific there was a gap. There’s a lot of startup activity and innovation taking place but travel didn’t seem to be the focus. - India is doing better than other markets – more advanced startup ecosystem, middle class, tech savvy, young population, leapfrogging, investment in India, attitudes towards solving problems. - Red Bus – India problem solved by Indian. We’ve seen that with the OTA growth. - And the startups we did see in travel, had a slightly narrow view. <CLICK NEXT SLIDE>
• #9: SIMON: Of the travel startups we did meet with, we saw this was one the biggest misunderstanding “ Of course I know about travel, I travel all the time.” Just because you’re a traveller, that doesn’t mean you know travel. Many of us here today focus on travel - we’ve got Concur, Ctrip, Yatra, Kayak. We’re all working in travel, and we understand the ins and out of our industry. We get the B2B side that many startups don’t. We know the industry, the technology, what’s possible, what works and what doesn’t. - So we’re best placed to advise startups trying to get into travel. Combine a startup’s idea with our knowledge and that’s when it’s a match made in innovation heaven.
• #10: SIMON: - One of the other main challenges we saw for travel tech startups was that it was difficult for them to get access to customers to validate their ideas and business model. Without being able to test it out in the ‘ real world’ how could they know if it would be a success? After looking at the travel landscape, and the problems faced by startups, this is how Amadeus Next was born. And now I’m going to hand over to Bart to tell you more about it.
• #11: SIMON: Handover slide
• #12: BART: But before we start, I would need to give you an insight in the world of startups. Who knows these startups? Odeo = platform for podcasting >> Twitter The Point = fundraising platform, failed to get traction. pivoted and launched Groupon, which took his original idea for collection action and applied it to local deals. Two years later, the business blew past $100 million in sales. Game Neverending = Social game >> Flickr Burbn, HTML5 app that mimicked Foursquare’s concept of “checking in”, learned from competition, differentiated themselves, focus on square fotos, 2010 after 1 week of launch, no. 1 in App Store, $ 1 Bio in 2 years! So, if your initial idea is good, start/do it! Then you might find that there is something, you either pivot or persevere, if you think you’ve found a business model, you test it and only if the model is proven, you scale What can we learn from this? How do they do it?
• #13: BART: STARTUPS SEARCH, COMPANIES EXECUTE If corporations want to find a new business model that will work, we need to act and work like a startup …. The main difference lies in the fact that Startups search and Companies execute. Big Corporations like Amadeus are sometimes compared to a big tanker. And I consider this as a compliment. Because that is exactly mpanies, like tanker have 1 problem. Making swift turns like here on the picture. Startups on the contrary are not concerned about efficiencies, npv and roi. They are mainly searching for this repeatable and scalable business model that will turn them into awesome companies. They are more concerned to find customers to test their product and validate their assumptions with. And they have to do this before they reach the end of the runway, before they run out of money It’s important to also accept from the beginning that no one party is better than the other. Instead they have different strengths and in a In a VUCA environment, we are better off partnering with startups rather than trying to do it all on our own. And this takes us on to the methodology <CLICK NEXT SLIDE>
• #14: BART - So, how do startups search? How do they work? Best practice we have come across thus far is the Lean Startup Methodology which is used by most startups Startups iterate on the problem worth solving and the customer to for whom this problem is relevant They validate their assumptions by GOOB and talking to their customers Startups build Minimum Viable Products (that version of a product that provides the most learning with the least effort) Measure the success of the MVP by using metrics, they learn based on those metrics, they adapt and decide to pivot or persevere And startups only move forward through validated learnings
• #15: BART: One of the biggest learnings for Amadeus was this. “There are no facts inside the buildings so get the heck outside” And this covers a few of the key learnings: 1) You really do need to think and act like a startup and testing your ideas outside of the comfort of your office – we did this with Amadeus Next. We didn’t take 3 years to put a plan together about what we were going to do, we did it, saw if it worked and adapted it along the way to make it a success. We adopted the lean startup methodology ourselves. 2) It’s about open to ideas from others, recognising that you can’t do it all alone. Amadeus is one of the leading global travel technology companies in the world but that doesn’t mean we know everything. Startups could have a great idea, or they could be more agile to make that happen. When you start thinking of yourself as having a common goal – to drive travel tech innovation forward, you worry less about who came up with it and more about getting it done.
• #16: You might be thinking (and it’s the most common argument for most corporations) - “But we’re not a startup.” We don’t have an office space like this in the picture, we have a huge HQ with thousands of people, bureaucracy and many layers of approvals to get stuff done. Don’t worry, so does Amadeus. But just because you’re not a startup, that doesn’t mean you can’t THINK AND ACT LIKE A STARTUP So we started working like a startup with a small dedicated team of 2 FTEs and several engaged colleagues We are working in a garage and building assumptions, testing and validating, and deciding to pivot or persevere And we focus on finding PS/PM fit by GOOB and talking to customers And only when PS/PM fit is found, only then do we scale and institutionalize it So that is exactly what we did
• #17: This is the Next community we have built so far In only few months time we have been able to get on board 17 startups, 24 partners 80+ startups (14 signed) and 40+ partners (24 on board)
• #18: BART Engagement (Rejuvenate our culture): Corporations should focus on fostering a culture of entrepreneurship within the company. Working closely with startups through co-operation will inspire leaders and decision makers to move toward a change in the company’s core culture, which will encourage internal innovative behaviors When seen through this lens, the disrupting startup is not the enemy. It’s a resource—a competitive friend—that can actually create value for the larger, older corporation. Exposure (innovate big brands) Leadership (solve business problems quicker) Successful companies can’t rest on their laurels. Working with startups helps you keep your finger on the pulse, helps you keep your innovative DNA and spirit and it’s a way to future proof your business Share your strengths: With a startups idea, passion and agility and a corporations experience, customer base and reach, the sky truly is the limited. Give something back: As we mentioned earlier, startups don’t have the same level of knowledge and expertise that corporations do. Amadeus has been around since 1987. Just like your grandparents shared stories with their grandkids, it’s about giving back to the industry and the new generations trying to make it. We feel it’s our duty to give back. Shape the future (Expand into new markets) Create customers of the future Be the drivers of innovation, helping a startup or working together for the benefit of travel tech. Improve the traveller experience, make. So now you’ve heard from us and we’ve shared our experience and learnings with you all, we wanted to get one of our Amadeus Next startup partners to share their side of the story with you. Please sllow me to introduce Praveet from TripHobo. < CLICK NEXT SLIDE>