Programs for venturing into new to company spaces are unlikely to be sustainable without establishing a proper organization structure to ensure continuous executive support. This executive support is critical to securing investment of capital and other resources.
And the development and decision making processes themselves need to be carefully designed to support the exploration of new and unfamiliar territory. The focus here is on reducing uncertainty and incorporating both risk and up-side views at major investment decision points.
We bring ten years of experience in establishing and managing a successful Innovation Venturing program. We can help you to set-up, accelerate or turn-around yours. This includes design and implementation of all necessary components of the internal innovation venturing that uses both internal resources and external partnerships.
Organization Design • Execution Strategy • Execution Processes • Performance Metrics
Nearly all companies face the challenge of looking beyond incremental innovation in existing markets to capture growth opportunities in new, rapidly evolving areas. Often, this means entering entirely new spaces by creating new businesses – and commercializing new business models – within an existing corporation. This can be thought of as creating start-ups within an existing corporate structure.
In spite of the obvious advantage of access to substantial corporate resources (capital, brand, channels, manufacturing facilities, research lab, sales force, etc.), large corporations still have profound challenges. The key challenge is allocation of these internal resources to deliver on the established business model versus new business models. Investing in new growth opportunities usually entails greater levels of uncertainty. This creates more reluctance to assign resources and perpetually places new ventures at risk. Given these realities, there is a clear need to establish a structure for executive sponsorship approval of risks and dedication of resources.
We bring expertise in the following areas:
- Group structure and roles
- Connection with internal functions
- Governance structure
- Strategies for building organizational support
- Strategies for leveraging corporate resources
- Partnerships and strategic alliances
- Investment decision making frameworks
- Opportunity development process (leveraging the Agile Transformation Systems key tools and frameworks)
- Frameworks and tools for developing economic model
- Risk management tools and frameworks
- Program performance evaluation and score cards
Group Performance Evaluation
- Metrics and dashboard
Innovation Venturing vs Corporate Venturing
INTERNAL vs EXTERNAL
There are two main types of innovation venturing programs within corporations.
One is an internal venturing – it is based on internal resources, and also includes strategic external partnerships. This is called Innovation Venturing.
The other type is incubating a new business by making an investment in a separate company. This is what is often referred to as Corporate Venturing.
While our prime focus is on the internal type – Innovation Venturing, we have strong partners with expertise in Corporate Venturing and investment deal structuring. We can leverage their expertise as needed to best address your innovation venturing program needs.