Picking the best disruption tool to achieve your corporate-venturing goals
There’s no denying that innovating for the sake of it or just to meet certain milestones does not bode well for long-term enthusiasm or success in the corporate-venturing space. What innovation is really about is improving business models and structures, understanding the need for change within your field and meeting company goals.
Strategic innovation should also, however, be something that is taken seriously by corporations if they want to survive in a competitive, rapidly-changing market. ‘Innovation takes birth in sync with the evolution of customers’ expectations and demands, or vice versa. Either way, organisations around the world have to continually innovate themselves and keep up with the people’s wants,’ explains co-founder of Mercer-Mettl, Ketan Kapoor. He goes on to caution that ‘the failure to do so, or being indifferent to your customers’ needs, will make your competitors win. And then, suddenly, customers become indifferent to you — a high-risk gamble to play at.’
When it comes to disruptive innovation, there are numerous ways to go about it, with different tactics that are better, or worse, suited to meeting company goals, depending on a range of factors. From strategic partnerships to mergers and acquisitions and corporate venture capital, there are many effective methods to choose from. But, to find the right one, you need to be able to hone in and define your objectives. Once you have established exactly what the end goal is, you will have a better idea as to which disruption technique to utilise to meet them. Here are four of the most common reasons that many corporates make use of specific venturing tools, as well as the best ones to get the job done.
1. You want to establish an innovation ecosystem
According to professor and innovation, strategy and AI expert, Neil Rubens, ‘innovation ecosystems refer to the inter-organisational, economic, environmental, and technological systems of innovation through which a milieu conducive to business growth is catalysed, sustained and supported.’
In order to create a thriving ecosystem, disruption tools such as the sharing of resources and the hosting of events have been shown to aid in business growth and overall long-term success. This is because it helps you to create a platform for engagement not just with consumers but with other industry leaders as well.
2. You want to create a culture of innovation in the workplace
There are some massive differences in how corporates and startups are run, with both being able to learn from the other when it comes to creating products that will resonate with consumers and go the distance. Traditionally, corporates tend to be more slow-moving and riddled with formal processes, with startups being more agile and collaborative.
Corporates wanting to establish and nurture a startup mindset within their organisation can best benefit from disruption tools such as resource sharing and incubators, which help companies or individuals new to the startup game to develop their business and get better acquainted with innovation best-practice methodology.
3. You want to innovate incrementally to stay relevant
Things might be going well for your corporation business-wise, but with markets rapidly changing and updating to meet consumer demands it’s always a good idea to innovate to stay ahead of the proverbial pack.
For organisations that are looking to innovate on a smaller scale, such as one-off projects or implementing small (but necessary) changes to their business models or product offerings, disruption tools such as accelerators, incubators and venture-development studios can be effective, as can strategic partnerships, where you join forces and share knowledge with other companies or startups with similar or aligned objectives.
4. You want your business to break into new markets
Having a loyal client base is great. But to achieve long-term success, you always need to be a step ahead of your competitors. One way to do this is to try and enter into new markets by identifying and engaging with new sectors or target groups.
And, while this can be done within the company provided you have the time and resources, disruption tools such as mergers and acquisitions and corporate venture capital investment have been shown to yield more effective results when it comes to reaching new markets by giving startups access to a bigger database of prospective clients.
