What is corporate innovation?

Corporate innovation refers to deliberately promoting original and out-of-the-box thinking within the company environment. To achieve this, many firms set up offices in co-working or other shared spaces to get to know startups and identify future markets for potential collaborations.

What is corporate innovation

5 ways corporate venturing boosts corporate innovation

Corporate innovation. Corporate innovation. Corporate innovation.

Every day, new businesses emerge, bringing new value to the market with incredible inventions, new technologies, and innovative business strategies. In addition, recent alterations in consumer behavior are further altering the marketplace. As a result, large organizations are viewed with suspicion, corporate innovation is becoming more and more important, and the response of traditional advertising has diminished. 

Companies are looking for new approaches that will help them to keep up with the ambitious business pace, assert their dominance in the market, and prepare their business for the future. Corporate venturing is a powerful method to attain these objectives.

corporate venturing for corporate innovation

What is corporate venturing?

Corporate venturing is an innovation and growth strategy that allows large and well-established companies to partner up with one or more small, innovative startups to form a joint venture. The purpose is to effectively use the corporate assets and resources in order to produce new products and services.

Entering a corporate venture enables the access of existing businesses into new markets. Moreover, it allows experimentation with new technologies and the generation of new revenue streams for a fraction of the cost and risk of doing it alone.

Startup Scouting for Corporate Innovation with Novable

Why is corporate venturing important?

Considering the rapidly changing market context dominated by millions and millions of disruptive startups, corporate venturing is critical for accelerating corporate innovation and financial success. Here is why:

  • Efficiency. Corporate ventures give established firms the same flexibility, autonomy, and agility as startups when it comes to exploring new prospects. 

  • More opportunities. Many new ideas are usually dismissed in big organizations because they are “irrelevant” or “not related to the primary business objectives”. As a result, many businesses are clinging to old products that could be rendered obsolete by disruptive startups in the near future.

  • Broader knowledge acquisition. Companies are required to learn about new and emerging markets when looking for new business prospects. This leads to new insights that can extend their perspective and provide information that can be applied to the existing market.

  • Lower risk. Companies can test new ideas in a contained environment by creating corporate ventures. This is far less dangerous than trying a new concept, technology, or business strategy across the entire organization. Ideas and concepts that work can be quickly scaled up, while those that don’t can be shut down without causing any significant harm.

Choosing the right venture

When it comes to corporate venturing, it’s critical to anticipate obstacles and have strategies in place to quickly overcome them. The main challenge would be choosing the right venture. Many businesses struggle to focus on the right criteria when selecting new ventures. This will undoubtedly lead to problems in the future, such as not receiving the desired returns or not developing the enterprise using the appropriate tools.

This happens because normally innovation managers would have to use Google, which provides an enormous amount of results. The consequence? Confusion and frustration. No one doubts that Google is useful for many aspects, but when it comes to efficient scouting, the tool offered by Novable does a much better and faster job.

startup scouting for corporate innovation

How does corporate venturing boost corporate innovation?

  1. Everyone wants to be the first to seize new growth possibilities. This can be difficult for companies with rigid regulations and bureaucracies. 
    By investing in independent ventures, corporations can avoid some of the obstacles related to draining rules and administration processes. This allows companies to efficiently experiment with new technologies and business models, just as startups do.
  2. Big corporations find it difficult to test out new technology. On the other hand, startups are known for being able to access, use, and create next-generation technologies. 
  3. Customers are placing a higher value on companies that provide memorable experiences. 
    Startups are excellent to try out new consumer experiences without jeopardizing your brand’s reputation. Because of their modest size and flexibility, they can quickly test new growth marketing, branding, and selling techniques to see what works and what doesn’t.
  4. Large corporations may find it challenging to engage with and reach younger generations. It’s all about convenient digital services, individualized experiences, and a story that represents the customer’s values these days.
    With innovative business models, communications, and digital services, corporate venturing can help overcome the age gap.
  5. User interviews and online surveys are just a few of the approaches utilized to evaluate new concepts. The problem is that many companies have not yet optimized their strategy and are still conducting R&D in the traditional manner. This can be both costly and ineffective.
    Corporate ventures are an excellent opportunity to put fresh ideas and concepts to the test. They act as sounding boards for new technologies, products, and services, testing them in limited, contained settings.
startup scouting for corporate innovation

So, why should corporate venturing be part of your innovation strategy? Corporate venturing is a low-cost, high-impact strategy for accelerating growth, generating new revenue streams, and driving corporation innovation to the next level. 

Let us know your thoughts on LinkedIn!

follow Novable on LinkedIn