Using VC Experience to Create Business Value

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Using VC Experience to Create Business Value

• Corporate Venturing Insights
• Joanne Hyland
• July 2002

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Value Creation

• Value Generation Versus Value Preservation
• Drivers of Change
• Market and Technology Paradigms
• Culture Dimensions
• Entrepreneurial Mindset Valuing Talent and
  Embracing Risk-Taking
• Business Learning Cycle
• Market Experimentation, Insight and Adaptation

3
Value Creation Model

• Understanding Market Dynamics and Opportunities
• Transforming Market Opportunities into Commercial
  Success
• Integrating VC Thinking into the Organization
• Designing the Most Effective Corporate Venturing
  Program

4
Market Dynamics and Opportunities

• Sustainable Business Model
• Business Fundamentals Rule
• Business Scope and Intellectual Capital
• Marriage of Deep Pockets with Startup World
• Digital Economy Building Blocks
• Infrastructure, Interface and Content Plus
  Scalable Revenue Model
• Riding the Next Wave
• Broadband Networks, Wireless Applications,
  Digital Security, Nanotechnology and
  Biocommunications

5
Market Opportunities and Commercial Success

• Systematic Assessment Process to Mitigate Risk
  and Provide Objectivity
• Four Stages Based on Combined Learning From
  Business Development Techniques and VC World
• Discovery Idea Generation and Opportunity
  Shaping
• Seeding Nurture Most Promising Business
  Propositions Through Market Experimentation
• Evaluation Adapting VC Screening Criteria and
  Importance of the Management Team
• Execution Integrating VC Entrepreneurial
  Principles

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VC Thinking and the Organization

• Creating an Executive-Endorsed Corporate
  Venturing Program
• Managing Stakeholder Expectations
• Articulating a Compelling Business Value
  Proposition
• Attracting Quality Deal Flow
• Incorporating Governance in Place of Hierarchy
• Understanding the Value of an Incubation
  Environment

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Elements of the Most Effective Venturing Program

• Capabilities Required in Three Major Areas
• New Business Creation for Deal Flow
• Proactive Mining, Submission Process/Tools,
  Business Proposition Seeding Capability, Seed
  Dollars, Business Startup Acumen Program
• New Business Commercialization to Qualify and
  Grow Ventures
• Business Proposal Development and Analysis
  Expertise, Investment Portfolio Management,
  Market and Strategy Guidance, Commercialization
  Path Decisions, VC Dollars

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Elements of the Most Effective Venturing Program
(Continued)

• Program Operations and Incubation to Protect and
  Guide Ventures
• Talent Management and Innovative Compensation
  Models
• Entrepreneurial Mindset Orientation Program
• Infrastructure Support Services
• Business Governance Models
• Strategic Marketing Communications Program
• Incubator Transition Program
• Decision What to Pursue In-House or Outsource

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Corporate Venturing Success Factors

• Startup Money
• Minimize Resource Competition and Maintain Focus
• Governance Process
• Timely and Appropriate Decision-Making
• Discovery and Qualification Process
• Early Input, Testing and Staffing Before Ramp Up
• Institutionalized Learning Network
• Share Experiences and Transfer Knowledge

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Corporate Venturing Success Factors(Continued)

• Strategic Line of Sight
• Communicate Organizational Vision, Strategic
  Priorities and Intended Results
• Maximizes Resource Utilization by Mitigating
  Conflict, Overlap and Competing Activities
• Valuing Failures (Alongside Successes)
• Feed the Learning Cycle and Embrace Risk
• Measures of Success
• Define Success Based on Appropriate Metrics

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Corporate Venturing Success Factors(Continued)

• Performance Feedback Mechanisms and Constant
  Reinforcement
• Recognize and Reward Teams and Individuals
• Senior Management Commitment (CEO, Executive
  Sponsors and Internal Champions)
• Open Doors and Remove Roadblocks
• Long Term Commitment
• Cultural Change
• Imperative for Creativity and Innovation to
  Thrive and Entrepreneurial Mindset to Develop

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Food For Thought

• Definition of Creating Business Value
• The convergence of passion, commitment and
  masochism with chaos, change and uncertainty to
  inspire the dreams and create the wealth of
  future generations. Joanne Hyland, 2001
• For information about the Radical Innovation
  Group and its Programs,
• please visit us at
• www.radicalinnovationgroup.com