The Future of Corporate Innovation and Entrepreneurship

"We propose that corporations equipped for the challenges of the 21st century think of innovation as a sliding scale between execution and search.

  1. For companies to survive in the 21st century they need to continually create a new set of businesses, by inventing new business models.
  2. Most of these new businesses need to be created outside of the existing business units.
  3. The exact form of the new business models is not known at the beginning. It only emerges after an intense business model design and search activity based on the customer development process.
  4. Companies will have to maintain a portfolio of new business model initiatives, not unlike a venture capital firm, and they will have to accept that maybe only 1 out 10 initiatives might succeed.
  5. To develop this new portfolio, companies need to provide a stable innovation funding mechanism for new business creation, one that is simply thought of as a cost of doing business.
  6. Many of the operating divisions can and should provide resources to the new businesses inside the company.
  7. We need a new organizational structure to manage the creation of new businesses and to coordinate the sharing of business model resources.
  8. Some of these new businesses might become new resources to the existing operating units in the company or they could grow into becoming the new profit generating business units of the company‚Äôs future."