This document discusses challenges that large corporations face in developing disruptive innovations internally. It notes that top management often focuses on short-term profits over long-term growth. New ideas are also frequently resisted within organizations. The document argues that corporations need internal startups to foster disruptive ideas, and provides recommendations for setting them up successfully. Key recommendations include establishing entrepreneurial measurements rather than only corporate ones, decoupling startups from financial planning to allow flexibility, and facilitating knowledge sharing between startups and existing business units.

1. DesignThinkingEssentials
CORPORATE
TEAM
REALIZING NEW
BUSINESS MODELS
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“The capabilities of an organization
are becoming incumbrances, if
disruption is beginning.”
Prof. Clayton Christensen, “The Innovator’s Solution”
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“Each new idea passes three stages. First,
it is ridiculed. Second, it is violently opposed.
Third, it is accepted as being self-evident”
Arthur Schopenhauer (1788–1860)
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If an idea first needs to go through those states and
become “self-evident” to the many in a company …
…then competition is likely to
be ahead before we even start.
That is why development of disruptive
innovations in a big company rarely works!
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DO CORPORATIONS NEED
INTERNAL START-UPS?
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Problems
! Top management needs to maximize profit
as quick as possible (shareholders)
! Top management often uses the same
management methodologies to evaluate
and support new business models
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Quarterly profits VS
Organical growth
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FACTS TO
CONSIDER
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Organizational
responsibilities
! Direct organizational positioning
! Create the right environment (space)
! Remove organizational and cultural barriers,
like risk aversity and that failing is only negative
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Guidance
! Executive managers needed (no
development project for “newbies”)
! Motivate the new team via new
incentive models, new styles of working
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Internal marketing
! Reduce in-house competition
! Reduce prejudices against “privileged”
projects, increase transparency
! Create interfaces within your team
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Team
! The best skilled team is needed (not a team
consisting of people with free capacities)
! Create specifications and requirements to
identify the ideal candidates
! Look also externally for the right candidates
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Routine organization VS
Entrepreneurship
! Define and establish entrepreneurial
measurements, not only corporate ones
! Apply the new measurements on your start-up
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ENTREPRENEURIAL
MEASUREMENTS
! Customer problems / insights
! Value proposition
! Value creation
! Validated prototypes
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! Market stress-test
! Market segmentation
! Business plan
! GTM Strategy / Action plan
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Disclosure obligation
! Start-ups have different, unpredictable needs
and can not be compared to corporate
! Decouple start-up projects from your
organizational financial planning
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Double-sided
knowledge transfer
! Create synergies between the new project and
existing projects; Leverage your strengths
! Allow little changes if your start-up has to use
different methods to create insights
! Prioritize the project, to support other
departments not to lose their focus
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