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This chapter analyzes and considers from the perspective of business models and holistic leadership strategic knowledge creation for leading internal ventures in large corporations to success. The case study takes a close-up look at the games business, focusing chiefly on Sony’s PlayStation.

One lesson learned from the case study was that the elements of productive friction and creative abrasion among practitioners at the knowledge boundaries between project teams, existing organizations, and external partners encouraged creative strategic collaboration among practitioners. Another lesson was that practitioners at all management levels of top management, project leaders, and project staff established distributed business community networks within and outside the company through strategic collaboration based on holistic leadership.

Furthermore, the existence of “community networks (networked knowledge boundaries)” inside and outside the company enabled the integration of different kinds of knowledge and achieved technological innovation (incremental innovation, architectural innovation) in the development of PlayStation as a new product.