Scaling an internet of things start-up: can alliance strategy help?

Abstract

Owners of start-ups in the high-tech field face multiple challenges while scaling-up. The major challenge is to form a proper strategy that guides them to move from building products for point solutions to more industry-focused solutions, retaining skilled resources, efficient workforce management, and improving market reach. This case study is on Distronix, a start-up in the Industrial Internet of Things that could see steady revenue within 3 years of its operations. Distronix wanted to reach the next orbit fast. Distronix wanted to change the organizational blueprint with a proper strategy to scale-up. The young entrepreneurs owning Distronix brainstormed with their employees and the industry experts to strategize the next phase of growth. Market reach and coping with the changing demand of customers on Industrial Internet of Things were the two most important aspects of their strategy. After discussing with stakeholders and the mentors, the owners focused on alliances to increase their delivery and market reach capabilities. They could establish strong alliances, even with larger companies, with proper planning and sustained quality delivery. From the inception of Distronix, owners established alliance, but those were ad hoc and not as per the holistic plan, which provided them a better focus and guidance on alliancing. The alliance strategy seems successful from its revenue growth but needs regular review as the technology stack is getting refreshed fast. Regular monitoring of performance is also critical. The case study shows the importance of a well-thought and well-rounded alliance strategy for a start-up to scale-up confidently.