Volkswagen Group subsidiary, Konnect says start-ups are increasingly distinguishing themselves from traditional suppliers as their disruptive nature continues to gather pace.
The German manufacturer opened the Konnect Campus in Tel Aviv to tap into Israel’s vast start-up potential, which allows local partners to engage directly with the parent company and its brands.
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In addition, Wolfsburg can observe developments in connectivity, autonomous driving, smart navigation, cyber security, e-mobility and big data at close quarters.
“These are start-ups – I am not even sure they want to be called suppliers,” Konnect head of strategy and business development, Hemdat Sagi told just-auto on the sidelines at this year’s Central & Eastern European Automotive Forum organised by Adam Smith Conferences in Budapest.
“They want to collaborate and keep their IP. It took us a while to change the terminology – these are start-ups – you treat them as they are small and need fast reactions – it is a whole new perspective. They would not want to work with one OEM – they don’t [necessarily] want exclusivity. They need to develop together and need access to data.
“There will be failures, but we learn from failure. For Israeli start-ups first it is customers; their customers are Tier 1 suppliers and car companies. The car industry starts [to] understand they also need start-ups. The approach [is] disruptive.”
“Israel has become a powerhouse for smart mobility start-ups. Israelis maybe have chutzpah – it is a mix of cultures – a lot of immigrants coming to a small place. We are 8m citizens – surrounded by not too many trade partners forced Israel to think internationally from day one.”
Israel has become a remarkably fertile proving ground for companies embracing the high-tech revolution and is home to an extraordinary 6,000 start-up companies, which tap into the country’s can do attitude in the face of historical and current challenges which show no sign of abating at present.
That can-do attitude may also in part be due to Israel’s geographical location and political isolation, which forces it to maintain a highly trained army, most of whom are required to serve and protect the small country.
“Everyone acknowledges it is the first step in your career, the army,” added Sagi. “The army finds the best minds at 16 or 17. The army has no competition, only other corps. They summon you and they shape you; they have access to the best talent, being mandatory service.
“Any Harvard school would be envious.”
