In this system of “Predictability DNA”, risk is a bad thing. Predictability refers to outcomes such as quarterly and annual targets, as well as the processes that ensure execution. The underlying business logic puts predictability front and centre. This business system plays out in a so-called “red ocean” with known markets, known competitors and a known technology base. This system is designed to flawlessly and efficiently execute on a chosen business model. It comprises today’s core business and the space of incremental innovation. The first system is designed to execute day-to-day operations. To understand what is happening it is helpful to understand that under one company roof you find two engines, or to be more precise, management systems. The problem of corporate evolution and extinction Let’s explore the problem and the solution. ![]() These combined approaches together formulate a toolbox for corporate innovators to potentially identify “On Demand” viable new venture ideas and then develop the venture through the Lean Scaling methodology from start-up to scaleup.īut what are the challenges faced as corporate startups run the gauntlet on achieving scale to satisfy its corporate investors? Roadmapping can be used in an exploratory mode to identify new sources or non-incremental innovation and map the necessary capabilities and the vision for the ventures to be started and subsequently Scaled-up. The collaborative nature of roadmaps supports strategic alignment and dialogue between functions in the firm and between organisations. Recognising that companies sit within a business network of firms and organisations that can influence the way the focal firm creates and captures value through the provision of a product or service. Ecosystem mapping is an approach to explore different configurations and partnerships in the ecosystem and consider potential innovations that can deliver new services including business venture ideas.Ī second approach is to use strategic roadmapping as a planning technique. One answer lies in ecosystem mapping and strategic roadmapping. If a company wanted to stimulate more ideas for new ventures, how could it start and how should it align, coordinate and synchronise its venture scaling activity? ![]() Harvest the Ecosystem to Identify New Ventures In the second part, founder of Lean Scale-up, Frank Mattes outlines the approach for taking startups through the Scaling-up journey. The first part describes the front-end of ecosystems mapping and roadmapping. These taken together provides a front-end to stimulate high-potential new venture ideas.Īn additional methodology can then be used to nurture these ideas from a start-up state to, with success, a scale-up corporate venture that delivers significant returns to the parent corporation. The first is ecosystem-mapping that identifies sources of value exchange between ecosystem members. The second is strategic roadmapping that can be used in exploratory mode to map a narrative for growth. The IfM at Cambridge University has created a suite of front-end innovation and technology management approaches. By knowing where the problem sits, we can develop solutions. The good news is that the root cause of venture scaling failure can be located. According to both McKinsey and Bain, 85-90 per cent of corporate startups fail and do not create a meaningful business impact. If one looks outside the company walls, firms are not successful in building new technology-enabled businesses. This is just one side of a bigger problem. Only 13 per cent of companies have deployed AI in production and in Retail, only one of five stores has deployed automation. Statistics speak loud and clear and tell a sad story: According to Capgemini, only 10 per cent of Automotive companies have mastered the basics of Smart Factories so that they are ready to scale. Many companies find that they are not able to scale-up new technology in-house and achieve the business impact they expect. How can companies in the current business environment almost choose the growth directions they want? ![]() The article discusses how the Institute for Manufacturing’s approaches can be combined with the Lean Scale-up(TM) methodology for venture scaling in the 2021 Peer Group. Companies can use ecosystem-thinking to stimulate radical startups and carefully scale-up these embryonic businesses to generate new growth. As part of their innovation strategies, large companies are looking to start and scale new corporate ventures, but the success rate is low.
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