How Otto's collaboration with startups works
Arno Baltruschat, Co-Lead at OTTO DOCK 6, the Otto Group's Venture Client Unit, talks about the Group's collaboration with startups in an interview with the Scaleup Landing Pad Hamburg.
What is the task of OTTO DOCK 6?
Otto's venture client unit OTTO DOCK 6 identifies and prioritizes areas where startup solutions could add the most value to our e-commerce operations through a balanced approach. Half of the challenges are brought to us by management, experts, and various business units, while the other half emerges from roadshows and events where we present the venture clienting approach as a viable solution. Prioritization is aligned with our strategic goals and the potential impact of each challenge.The OTTO DOCK 6 framework provides a structured pathway for startups to partner with Otto and the Otto Group, ensuring mutually beneficial collaborations that foster innovation and drive business success.
The process begins with Problem Identification, where challenges are understood by engaging stakeholders and setting clear objectives. Next is Startup Sourcing, which involves curating and qualifying a list of startups, selecting the best fit through product demos. In the Pilot Preparation & Purchase phase, the pilot's scope and objectives are defined, and contracts are established. During Pilot Management, the solution is tested, progress is monitored, and data is collected against key performance indicators. If successful, the Adoption phase involves negotiating broader implementation and setting up infrastructure for integration. The initial steps typically take 2-3 months, followed by a 3-month pilot phase to evaluate the partnership's potential.
How is the success of a partnership measured?
We measure the success and impact of startup partnerships on OTTO's business by differentiating between direct and indirect impacts. Direct impacts include quantifiable benefits such as cost savings in areas like marketing, increases in productivity, and potential revenue growth. Indirect impacts, while harder to measure, are also significant; for example, introducing new digital and automated technologies can have a transformative effect on our business units. Additionally, these partnerships help us avoid building non-strategic products for our tech stack, ultimately improving our time-to-market. By evaluating both types of impacts, we gain a comprehensive understanding of the value these collaborations bring to OTTO and the Otto Group.
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