Post on 18-Jan-2017
transcript
© IST Institute
Corporate Startup Summit 20.10.2016 - Frankfurt
IMPLEMENTING CORPORATE STARTUPS TEAMS SUCCESSFULLY
Christoph Selig, Ph.D. candidate IST Innovation institut – focussing on strategic innovation with embedded entrepreneurial teams
Current Ph.D. candidate at institute for strategic innovation & technology management (IST) Leading research project – Corporate Entrepreneurship, embedded entrepreneurial teams Entrepreneurship program manager at HTWG Konstanz Coordinator of industry best-practice group in Baden-Württemberg
Academic background Master of Engineering industrial engineering HTWG Konstanz Bachelor of Engineering industrial engineering der HTWG Konstanz Exchange semester DTU Copenhagen focus on innovation and entrepreneurship
Profession background IST Institute since 2014 Festo AG – Marketing concepts for global marketing campaigns
inno-ist.org
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IST focusses on technology-oriented companies and their challenge in dynamic markets: Implementing strategic responsiveness
Firm 1: not successfulFirm 2: missing chancesFirm 3: sustained success with strategic responsiveness
Market parameters
timeMarket
Source: IST / CoPS, Walter Isaacson “Steve Jobs”
... creating an
“entrepreneurial
and
agile
organization” …
(Steve Jobs)
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Firms need to combine centralized efficiency of their core business with synergies from decentralized innovation: Ambidexterity
Source: IST / CoPS – Gard, Baltes, Katzy “Managing autonomy of teams in Corporate Entrepreneurship”, IAMOT 2013, Porto Alegre, Brazil
Entrepreneurial Teams Efficient hierarchy• Advantages from agility
based on flexibility & passion• Focus on investment in strategic
options, with risk & failure tolerance
• Incentives for experimental learning: „try early & fail cheap“
• Scaling based on intangible assets, technology capabilities and mobile market access
The “both-handed” ambidextrous organization
Industrial Core
• Advantages from stability, standardization, repetition
• Focus on planning, quality, processes, specialization
• Incentives for risk averseness, cost reduction, documentation
• Mass-produced physical-goods scaling by smarter automation & logistics
Strategic Innovation
Planning practices fail in disruptive context: Agile modes of trial & error are vital for building capability-based advantages
Planning vs. Agility / Adaptability Omitting need for prediction by
establishing trial & error modes of operation
Enable small errors with bearable losses but chance of over-proportional gain (convexity)
Optimize cost per unit of trial rather than a risk of failing to identify patterns & structures
“I did not fail! I just found ten thousand ways that didn’t work”*)
Source: Siemens AG / Pictures of the future 2013, * Edison, inventor of the light bulb, IST
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The suitable organizational design is depending on the corporates’ position in the market and the technological knowhow
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Source: Burgelmann, R.; (1984) Managing the internal corporate venturing process | Garrett, R. P.; Covin, J.G.; (2015) Internal Corporate Venture Operations Independence and Performance
JointVenture
JointVenture
Acquisition
Base Related Unrelated
Bas
eR
elat
edU
nrel
ated
JointVenture
JointVenture
Internal Development
Acquisition
CorporateVenture
TECHNOLOGY / KNOWLEDGE
MA
RK
ET
Joint Acquisition – CVC
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Internal Corporate Venture
Joint Venture – BMW / Sixt
In such an environment Embedded Entrepreneurial Teams enable industrial organizations to successfully step into digital options
Formal decision making Risk averseness with
front-up analytics Problem solving with
consensus seeking Availability of resources
(capital, …) and access Elaborated processes Efficient administrative
backboneSource: Aldrich, E.H.; Auster, E.R:, 1986. Even Dwarfs Started Small. Liabilities of age and size and their strategic | Ireland, R. D., Covin, J. G., & Kuratko, D. F. (2009). Conceptualizing corporate entrepreneurship strategy // Tirole, J. (1986). Hierarchies and bureaucracies: On the role of collusion in organizations. | Chesbrough, H. (2000). Designing corporate ventures in the shadow of private venture capital | Baron, R. A. (2002). OB and entrepreneurship: The reciprocal benefits of closer conceptual links.
Low/no hierarchy, informal decision-making
Intuitive risk taking, illusion of self-control
Problem solving by proto- typing and experimenting
Scare resources, boots-trapping approach
Rather routines thanprocesses evolving
Start-up Organization
CorporateOrganization
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Minimal organization with links and pipelines to corporate
Analytical risk taking Problem solving without
a formal consensus seeking Structurally separated with
access to (some) corporate resources
Managing corporate Stakeholders …
Embedded Entrepreneurial Team EET
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The interface between the embedded entrepreneurial team and the parent corporate has impact on the teams performance and success
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No blueprint for implementing corporate startups – highly individualized
Autonomyhigh strategic & structural auto-nomy positive performance
impact
Financing / Sponsorship bootstrapping,
stage-gate process, budget
Incentive, reward further career
options, financial interest, failure
culture
Network accesslinking pin, network internal experts and stakeholders, access to external partners
Roles of the advisory board trade off between demanding and
promoting
Shared Servicesaccess to admin and secretarial services, basic
function in team
Source: IST Institute – Corporate Entrepreneurship study Germany | Selig, C., Stettina, C., Baltes G. (2016): The Corporate Entrepreneur
The corporate entrepreneur differs significantly from entrepreneurs and corporate managers – but lends from both
Risk-averse, seeking stability Team orientation Leadership role Need for power Stakeholder management &
communication focus Analytical decision making, Efficiency & execution driven …
Risk-taking, tolerance for ambiguity Extrinsic motivation, egoistic Innovative, creative, visionary Need for achievement Full autonomy Intuitive decision making Effective & outcome driven …
Start-upentrepreneur
Corporatemanager
Source: Brandstätter, Hermann (2011): Personality aspects of entrepreneurship. A look at five meta-analyses | Zhao, Hao; Seibert, Scott E. and Lumbkin, G. T.; (2010): The Relationship of Personality to Entrepreneurial Intentions | Ciavarella, M. A.; et al. (2004): The Big Five and venture survival | Rauch, A., & Frese, M. (2007). Let's put the person back into entrepreneurship research | Busenitz, L. W., & Barney, J. B. (1997). Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making. | Dyer, J. H., Gregersen, H. B., and Christensen, C. (2008). Entrepreneur behaviors, opportunity recognition, and the origins of innovative ventures | Fagiano, D. (1997). Managers vs. leaders: A corporate fable.
Analytical risk-taking, reproducible problem solving
Intrinsic motivation (achievement) Entrepreneurial leader Need for autonomy Stakeholder management Transparent decision making Innovative initiator …
Corporate entrepreneur
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First findings indicate corporate entrepreneur characteristics – with consequences for management, incentives and hiring schemes
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Source: Selig, C., Stettina, C., Baltes G. (2016): The Corporate Entrepreneur: A driving force for strategic renewal and radical innovation in established companies.
Team setting Decisive project leader role
Career Track Well educated, professional experience
Mgmt. style Cautious risk taking, problem solving, illusion of self-control
Financial motivation Within a corridor, no upside needed no downside acc.
Hygiene factorsAutonomy, individual impact, original creation
Corporaterelation Conscious & stra-tegic stakeholder management
Motivation Leave a mark – this project is “my baby”
Norms &ValuesHigh score on (family) values, trustable
Attractive career option for generation Y?
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Cannibalization of the core business to master digital transformation to ensure sustainable competitiveness via implementing corporate startup
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Source: legic – homepage 2016 | CoPS - LEGIC Identsystems Ltd - From selling ID-cards to providing access to an ID network
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Business: Product business – selling locks and ID-cards as a key
Threat: Replacement of ID cards through mobile devices, endanger existing business model
Challenge: Company needs to cannibalize their current core business (lock & key)
Solution: Implementing internal startup team – top down initiated to develop new business using new digital technologies
Learnings: external corporate entrepreneur supports internal change; top down support needed for overall corporate transformation
Contact information
M. Eng. Christoph SeligInstitut für Strategische Innovation & Technologiemanagement
Hochschule KonstanzBrauneggerstraße 5578462 Konstanz
cselig@htwg-konstanz.de
Mob +49 176 8373 0797Tel +49 7531 206 310
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