4 ways to build innovations in large companies.
This post is pretty clear with its message. It tries to classify paths which large companies can take to move forward with their innovative projects.
So here it is, how large companies can build innovations in 4 ways:
- Starting Proof of Concept with an external company or individual. In startups world, there are many technologies and innovative business models which large companies can try and test. Asking startups or scientists for opening joint venture project is on of the best way to find innovative solutions that works. Proof Of Concept is a great way to check what is the real value of disruptive technologies. Proof of Concept is not a theoretical contemplation. It is very pragmatic approach to test and evaluate new business models with large company customers, partners or / and stakeholders.
- Building intraprenuership programs inside large company. If you have a pool of talents inside your company (I bet you have), and you would like to give them a chance to come up with new product ideas, the easiest way is to start intraprenuership program. Large companies can give employees a chance to learn how to prepare a business pitch deck, how to design a lean canvas and how to structure funds and teams. It empowers people in taking responsibility for making innovation happens.
- Investing in startups. Pretty clear step for large companies interested in becoming shareholders of startups. A company prepares some budget, scouts for startups, gets shares, waits for shares value to increase or bets on future acquisition. One of the best known models and well tested.
- Accelerating or incubating ideas. Large companies can accelerate innovative projects (give it more and more speed in acquiring customers, in building technology, in getting IP, in scaling) or can incubate projects (help a team to build MVP, define customer profile, go through customer discovery phase). Both activities have different character. Both can be started pretty quickly if you have 2,3 people involved full-time.
If you, as a manager, owner or company advisor, think about innovation, please have some time with your executives and discuss those options. It might give you a great start in your innovation activities.
Arek Skuza – coFounder of K2 Digital Ventures which helps large companies design and scale innovative ventures with audacity and speed of startups.