Leveraging innovation for established enterprises has not always been easy, mainly because they’re steeped in tradition. On the other hand, startups leverage lean operating models and risk-taking to accelerate growth ahead of established businesses.
Most enterprises are increasingly exposed to Nokia-like fate for over-protecting their core business model and rigidity – most but not all.
Contrariwise, top-performing companies excel in their industry because they embrace innovation while maintaining their core. They invest in new field-leveling ventures for a portion of the eager markets. So how do you build a successful venture?
Think like a Startup
Ideating new ventures is not always a walk in the park. It requires a good plan and execution. To create and accelerate new ideas, the enterprise requires:
- The right workforce: thinking and acting like a startup requires the mind of serial entrepreneurs. These senior entrepreneurs generate a following in the market through unconventional methods before you start developing a solid core.
- Establish an innovation model: The venture’s ideation and selection are just the tip of the iceberg. The ideas should lead to an actual business, free from the rigidity of the current corporate structure and supported by funding throughout the development stage.
- Have an innovation mindset: the innovation lab needs a clear field established upon a model with links to the corporate resources. It should be away from the mother company’s politics, influence and policies.
Startups are outshining bigger and established corporations by leveraging exponential technologies. They accelerate growth by using new technology and new organizational techniques. For example, Airbnb bypassed hospitality establishments such as Hilton within a few years with the help of exponential technologies and methods.
Airbnb is an exponential organization that leverages assets without owning them. It also rides on the back of disruptive technologies to trot past linear growing organizations.
Enterprises can avoid sliding into digital darwinism by connecting with external innovation (establishing a hybrid model). Your business can provide resources such as an established brand, access to data, process excellence, experience with regulators, and business relationships. On the other hand, the exponential organization can inject fresh ideas, willingness to take risks, and agility to scale rapidly.
The accelerator is the bridge between outside innovation and the enterprise. The program provides easy access to early-stage ventures and innovations in a much cheaper, faster, and more effective way.
The accelerator offers access to exponential technologies while promoting an entrepreneurial spirit and culture within the organization.
Through the accelerator, the enterprise supports startups with essential resources such as office space, knowledge, and mentoring to take off. The primary objective of an accelerator is to generate economic benefit and foster innovation.
Typically, the successful establishment of the accelerator requires a strong leadership commitment. This setup must continuously engage the management through the journey towards exponential technologies and growth.
The organization must be ready to provide the resources needed by the accelerator. These include:
- The people required to establish and run the accelerator
- Management buy-in and support
- The financial resources necessary to establish and run the accelerator
Usually, the enterprise should set aside 5-10% of the money it looks to generate through the accelerator as capital.
Do You Need to Change the Core Model?
The agility, risk-taking behavior, and ability to maximize and leverage exponential technologies by startups may motivate a transformation into a similar model. Nevertheless, there’s no need for a total overhaul of the business model. Your current model has a lot of good that has brought the corporation to its current position in the market.
Instead, you can leverage the services of consultants and proven entrepreneurs to build a parallel business model while you focus on the core.