Tired of incremental improvements? Want to break free from the shackles of the core business and ignite real innovation at your Fortune 100 company? Embrace the VC mindset!
Think of it like this: VCs invest in lots of ideas, knowing most will fail. But the winners pay off big. Corporates need this same approach, but with a twist: aligning investments with your innovation strategy.
Here's the rub:
VCs play a numbers game. You can't predict the "golden idea" without taking risks.
Corporates face different biases: sunk costs, survival bias, and more, clouding judgment.
So, how do we win?
1. Build a Venture Board: A dedicated team to safeguard the innovation budget and make investment decisions based on evidence, not gut feeling.
Innovation Manager: Steers the ship.
Innovation Strategy Owner: Connects the board to the company's innovation vision.
Domain Experts: Evaluate ideas based on specific fields (blockchain, renewable energy, etc.).
External Member: Fresh perspectives from the VC community.
C-Level (case-by-case): For major decisions.
2. Invest in the right evidence:
Early Stage: Validate market need and problem-solving potential. Watch out for confirmation bias and wrong customer segments.
Pre-Revenue/Early-Revenue: Ensure customer acceptance and refine the solution. Avoid focusing solely on TAM or neglecting alternative business models.
Scaling: Prove the business model works and has long-term potential. Don't let retention fall by the wayside or ignore qualitative insights.
3. Remember, it's a team sport:
Collaborate across departments and break down silos.
Foster a culture of data-driven decision making, but don't neglect the "why" behind the numbers.
By adopting the VC mindset, corporates can:
Break free from innovation stagnation.
Make smarter investment decisions based on evidence.
Increase the chances of uncovering game-changing ideas.
So, unleash your inner VC and watch your Fortune 100 company soar to new heights of innovation!
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