Building a Start-Up Within an Enterprise is Like Swimming Upstream

In the corporate world, it’s rare to witness the birth of a start-up within the walls of a massive international corporation. Yet, this June, Elbit Systems did just that at DataTalks, showcasing a remarkable example of internal innovation.

With a captivating panel, attendees gained an inside look at how a tech giant can foster an entrepreneurial spirit, nurturing a start-up that seamlessly integrates advanced AI with practical, real-world applications.

Building a Start-Up Within a Giant

The concept of establishing a start-up within a multinational corporation like Elbit Systems is a daunting one. Yet, Omer, Director of Big Data and AI, and Idan, Team Leader of DAITA, have embraced this challenge head-on.

“Our journey began in mid-2021, but Elbit’s commitment to AI started back in 2017,” says Rudik. “We were the first organization to invest in AI infrastructure, and although it initially seemed like a costly experiment, it laid the foundation for the innovative product we have today.”

The result of their efforts is DAITA, a product designed to transform how organizations handle and utilize their digital assets. “We’re in an era where managing these resources is a must for any competitive organization,” explains Idan. “AI is no longer a luxury but a necessity. However, effectively leveraging AI requires a robust infrastructure.”

DAITA addresses this need by transforming unmanaged data into managed data, creating a common language for data integration and enabling the seamless development of AI models.

“We developed a common language that bridges different types of data, making it accessible and understandable to everyone in the organization,” says Omer. “This standardization is crucial for building effective AI models.”

Coalition of Innovation

One of the pivotal elements in their success was the establishment of a coalition comprising representatives from key customers and stakeholders.

“It’s like steering a massive cargo ship while a determined salmon swims upstream, trying to shift its course,” explains Idan. “It requires immense mental strength and the creation of a supportive coalition of key stakeholders and customers.”

This group not only provided crucial feedback but also played a significant role in securing the necessary funding and support.

“Creating a coalition is vital,” notes Omer. “It’s about engaging with stakeholders who can fund the project and provide continuous feedback through an agile development approach.”

This approach has enabled them to swiftly adapt and refine their product, ensuring it meets the evolving needs of the market.

“Being an early adopter in an entrepreneurial process is exciting because you have a direct influence on the product,” says Idan. “But it also means being prepared for the maturation process that follows.”

From Internal Innovation to Market Potential

Initially designed to optimize internal processes within Elbit Systems, DAITA’s potential soon became apparent. The project garnered attention and accolades, winning two prestigious awards and sparking discussions about its commercial viability.

“What started as an internal solution to enhance efficiency quickly evolved into a product with significant market potential,” shares Idan. “For example, we partnered with Microsoft to integrate DAITA into their cloud platform, opening new avenues for its application.”

In their panel, the two also touched on the international implications of their work, highlighting how their innovations could benefit Elbit Systems’ global subsidiaries.

“We’re not just focusing on the military sector; our product has applications in the civilian sector, including digital and healthcare industries,” Idan said, underscoring the broad potential of their technology.

As Omer and Idan shared their story at DataTalks, they offered a blueprint for other organizations aiming to foster innovation from within. Their presentation was not just a recounting of technical achievements but a testament to the power of innovation and collaboration within a corporate giant.

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