A leader's guide to internal corporate venturing 2.0

Abstract

Purpose

The paper aims to address a pervasive leadership problem: why do so many companies have such a difficult time adapting the innovation approaches that work so well in the venture capital (VC) ecosystem to the corporate environment?

Design/methodology/approach

The paper looks at why innovation approaches of the VC environment do not work so well in the in the corporate environment.

Findings

The paper finds that the root cause lies in the very real differences between established companies and start‐ups that no amount of organizational redesign or process creativity can overcome. Therefore corporations should not attempt to be VCs. Shifting from selecting ideas to “shaping” them is perhaps the largest break from existing standard practice. Most organizations have any number of ideas floating around, some of which keep resurfacing year after year without ever seeming to get any meaningful traction or to be successfully dispatched. The reason is very often that there is a kernel of truth somewhere in the idea but it has proven impossible to develop a viable business plan.

Research limitations/implications

This paper is based on research that the author used for his new book, The Innovator's Manifesto.

Practical implications

The first step is to focus the corporation's efforts on opportunity areas that are strategically relevant. The practitioner should begin by identifying those high‐level spaces that will define the future of thier industry.

Originality/value

The paper reveals that better innovation begins with a fundamentally different approach to an internal innovation strategy. Leaders of corporate innovation initiatives should replace the oft‐repeated mantra of “fail fast” with the new motto “learn fast.”

Citation

Raynor, M.E. (2012), "A leader's guide to internal corporate venturing 2.0", Strategy & Leadership, Vol. 40 No. 1, pp. 16-20. https://doi.org/10.1108/10878571211191657