Innovation through Corporate Entrepreneurship Strategies:- Innovation has never ceased to be a necessity for businesses since innovation is key in the search for new competitive advantages that allow companies to not only survive in the market, but lead a large promising company.
However, if the mere fact of getting really innovative products or processes is not easy, it must be said that the companies with the longest track record have it even worse. But there may be an alternative.
Why Innovations are Important?
I understand that the answers of why we need to innovate new things and shared them to all. First I would say that the current context is pure chaos, chaos caused largely by the rate of change from multiple approaches such as social, technological or business. In fact, we can say that the only constant we have today is change.
Second by technological disruption:- If in previous generations only a disruptive technological innovation was witnessed in the life of a human being, we will live at least four. This number of disruptions will undoubtedly affect the rules of the game in many sectors, innovation being a way out of subsistence and even success.
Third and finally, I must say the huge business competitiveness in which we are immersed. There are thousands of companies offering the same value to the same customer and operating from any region of the world. Forget to compete to start creating , as dictated methodologies such as Blue Oceans.
Need of Innovation
The problem is that companies need are exhausted. Exhausted from fresh ideas. The companies with the longest running and travel have been following rules for many years, which are unnatural to break them, and yet it is necessary to explore these natural limits if they want to find those new ideas.
Another problem is the size, is that the vast majority of the business fabric consists of micro. Entrepreneurs who have overcome the latest crisis have realized two things, the first is that bigger is better the economic crises are overcome, and secondly, is that the economy is cyclical and it is certain that another new crisis will come, the key question is when .
What’s Required for Innovation
To respond to the needs discussed, more traditional companies need new capabilities such as the following:
- More speed
- More experimentation
- More passion
- More freedom
In short, they need traditional businesses in the current context is nothing more than a new attitude .
To find the key to this new attitude, let us reflect on the following questions:
- What if the companies acted as a venture capital fund?
- What if they could create teams with internal staff but also with talent from outside?
- What if they could share the financing of new projects with their own and external capital?
- What if they could accelerate their own projects with staff from inside and outside the company?
Corporate Entrepreneurship is a new business attitude, a new way of doing things to look for different results. Think that if we always do the same, it makes sense to think that the results will always be the same.
Corporate Entrepreneurship consists of copying or imitating the attitudes, methodologies and tools of the Startups to take them to the most traditional and conservative large enterprise.
As I show below, this trend is not new in other continents:
- The 40% of large companies in automotive, chemical, consumer goods, financial services, media and publishing, and telecommunications, already have this FOCUS CORPORATE ENTREPRENEURSHIP.
- The 57% of its leaders in these sectors and actively uses methodologies corporate entrepreneurship.
- 28% is the rate of growth of Corporate Entrepreneurship in USA.
- The 5% is the growth of venture capital investments on internal corporate initiatives in China.
Do you still think that this is a fashion? I begin to think that it is a business trend in the making to find new contexts for innovation , both in products and markets and processes.
How can we apply Corporate Entrepreneurship Policies
Here are the essential ideas to apply and promote Corporate Entrepreneurship projects within a company:
- Forming new leaders of each project, and the other team members in attitudes such as creativity, innovation and open innovation, risk tolerance, change management and others.
- Improving the working environment to an environment of greater confidence in the sincerity reward, and the error will not be punished.
- Creating teams with people inside and outside the company with challenges to real problems.
- Giving these teams budget, time and freedom.
- Becoming the parent company and provider of facilities, financial structure and knowledge. Let us use the most experienced staff as mentors of the new projects.
- Promoting strategies of Open Innovation.
- Promoting business challenges real whose solution may come from internal or external experts.
- Implicating the senior management in the new attitude.
- The parent company becoming involved in the problem, but never in the solution.
These are just some ideas for successful implementation of a strategy of Corporate Entrepreneurship or Interdenominational in a company, Can you think of any better idea?
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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