GCV Magazine's December 2014 issue contained a brief summary of the incubation models outlined in the upcoming book Collective Disruption (March 2015). In it, author Michael Docherty highlights three approaches to new business incubation that embrace collaboration with the startup ecosystem.
In the book Collective Disruption, I discuss and provide examples of how incubation can be done in at least three ways:
Inside-In (e.g., integrated): This model is focused on internally managed efforts, supplemented by external partners. A corporate team manages transformative innovation efforts with the autonomy, skills, focus and partnerships to create breakthrough opportunities and new businesses. IBM has its Emerging Business Opportunities (EBO) group that has delivered $26 billion in incremental revenue for IBM since it was created in 2000.
Inside-Out (e.g., accelerators): Dedicated corporate accelerators and corporate tie-ins to existing accelerators are hot trends today. In the book, I provide practical advice on the pros and cons of the corporate accelerator model and examples of several variations on the model. Lowe’s Innovation Labs has partnered with Singularity University, along with a variety of startups, in exploring big ideas outside of Lowe’s traditional R&D organization.
Outside-In (e.g., imbedded entrepreneurs): Another approach is to imbed external partners and entrepreneurs directly into corporate venture teams. It’s difficult to pull off without the right entrepreneurs who can navigate the corporate landscape and avoid the landmines. Jarden recruited a food-tech entrepreneur to lead an internal venture when they entered a category for which they lacked the experience and risk profile.
With this link Download GCVDec2014, you can download a pdf of the CGV Magazine article as well. Happy reading!