Innovation by start-up.

We have solved the problem of FMCG global company, peeking into the world of start-ups.
Woman working

Challenge.

One of the biggest FMCG company in the world encountered important problem in the area of digital assets management. The company employees 95,000 people and prepares hundreds of ad campaigns for its brands. Each campaign requires creation of a huge amount of digital content (pictures, movies, animations) in many different types. So, easy to see that the organization creates hundred thousand of digital content per month, differentiated for the brand they relate to and the area of the world where the product is promoted. The area determines not only the language but also copyrights to digital content and scope of information for the given product expected by the locally applicable law regulations, including manuals.

Brands’ managers entrust the agencies with creation of digital content, which is often duplicated. This is a consequence of difficulties with making catalogues of the content, with recognizing what it contains (on pictures, in videos and animations), with quick searching therethrough and using it depending on the region. It is always easier to have someone else design the digital content. But costs of digital content creation were higher and higher, as well as greater was dependence on external partners. Moreover, majority of digital materials stayed on carriers of external partners, which makes it impossible to catalogue thereof in order to comply with copyrights.

Solution.

K2 Digital Ventures applied Scouting and Proof of Concept processes. We have solved the problem by connecting the client’s internal resources and carefully selected startups, which enabled recognition of content of digital materials, making catalogues, automatic tagging, as well as removal of duplicates and monitoring of copyrights.

During the Scouting process, we carefully described the client’s challenges and presented them to global startups. This way we mapped the global innovators that professionally deal with the subject of digital content. We selected 5 start-ups to Proof of Concept stage. The technology and business model of the start-ups were subject to test in the global organization environment. We run a simulation for the business models and their influence on costs related to digital content creation, indexation, cataloguing and publishing. The PoC stage provided the following information:

  • effectiveness of selected startups (effectiveness expressed in percentage in pictures, video and animation recognition) with regard to challenge of the big organization;
  • the level of scalability of selected startups (how long it takes to process single digital material to make it ready for cataloguing and indexation, how long it takes to process digital content, how long it takes to catalogue and index, taking into account global digital resources of a big organization);
  • what cost structure (business model) should be designed for a big organization to make the cooperation with startups financially beneficial (consumption-based settlement or settlement depending on the quantity of digital content successfully processed; or maybe a premium model the annual license to use start-up services).

The PoC stage enabled selection of 3 startups that signed the contract with our client.

If you want to build innovations in your company or to add new functionalities to your business, feel free to contact me.

Client:
One of the biggest FMCG company in the world
Sector:
FMCG
Services:
Innovation Scouting
Proof-of-Concepts
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