Let’s cut through the buzzwords for a minute. Every established company talks a good game about innovation these days. But when you look under the hood, it’s often just tinkering around the edges – a new feature here, a slightly faster process there. Real innovation, the kind that can ensure your company thrives for decades to come, requires a different mindset. That’s where corporate venture building (CVB) comes in.
Disruption is the Constant
If the past few years have taught us anything, it’s that the only thing predictable about the business world is how unpredictable it is. Pandemics, supply chain snarls, new technologies – the pace of change keeps accelerating. Customers are demanding more, and smaller, nimbler competitors are popping up overnight. Waiting around to see what happens is a recipe for falling behind.
Beyond the R&D Lab
Corporate venture building isn’t just about pouring more money into your existing research and development. It’s about venturing into wholly new territories your current business model doesn’t touch. Building (or investing in) ventures designed to disrupt your industry, or even create entirely new industries, is how you stay ahead of the curve.
From Legacy Players to Innovation Leaders
Don’t think this isn’t for you just because you’re not a Silicon Valley startup. Companies that have been around for decades are proving CVB can work in any sector. Take Ananda Development PLC. – they’ve launched a venture that’s completely rethinking real estate business, and it’s attracting a whole new customer base. Many other companies, where a CVB project is tackling a major industry issue in a way their traditional business units never could.
The Takeaway
CVB is a strategic tool for navigating a constantly changing business landscape. It allows you to experiment, test new markets, and attract top talent who crave an entrepreneurial environment. If your company is serious about staying relevant, it’s not a question of if you should explore venture building, but how.
Up Next: So, you’re intrigued by CVB, but how do you avoid the common pitfalls that doom many well-intentioned ventures? Let’s dive into that in Part 2 of this series.
