Corporate Venturing Ch 2: Getting Started

1
Corporate Venturing Ch 2Getting Started

• Senior management is key
• Can make or break venture
• Superficial commitment maybe worse than no
  commitment at all
• Balance How do you create a new venture without
  sacrificing base business?
• Management must create a venturesome climate

2
Strategies for Creating a Venturesome Climate

• Everyone adopt a venturesome mind-set
• Dont offer extra rewards, part of the job
• Demonstrate and sustain significant level of
  commitment
• Assign good people to the venture
• Assign necessary resources

3
Strategies for Creating a Venturesome Climate,
Cont.

• Develop in-depth knowledge of new customers and
  markets
• Build organizational confidence
• Empower creators of new business
• Build momentum

4
Business Development Strategy

• Revolutionary
• New business radically different from existing
  (base) business
• Advantages vs. disadvantages
• Evolutionary
• Extending existing know-how into new products,
  services and markets
• Advantages vs. disadvantages

5
How Does One Select a Venture

• Strategic fit?
• Size of venture
• Desired market position, market share
• Amount of investment
• Financial performance requirements

6
ICV Selection Criteria, Cont.

• Time horizon
• Risk levels
• Social responsibility and corporate values
• Feasibility
• Impact of venture on company's reputation

7
Managing Disappointment

• Distinguish between bad decisions and bad luck
• Focus on learning, not blame
• Redirect the venture if necessary
• Have the courage to quit