Everyone in corporate innovation knows that you need to set up a separate business unit to maximize your chances for success with corporate innovation. The reasons behind this are critical to understand.
Why setup a new business unit?
- New cost structures
- New culture and values
- New processes
- Less conflict of interest.
- New market size appreciation.
If a new venture is going to be disruptive to your core business, needs to be separate unit. Otherwise it will conflict with the core business and core business will swamp / kill the innovation.
