Finding and Commercializing New Businesses

OVERVIEW:A methodology for technology-based industrial companies is suggested that can systematically improve and diversify their business portfolios. The proposed “Corporate Business Renewal” function is based on lessons learned from successful and unsuccessful corporate-level new business development experiments over the past 30 years (e.g., the New Venture effort at Du Pont in the 1960s). The author argues that the corporate business renewal function described here, and built from historical trial and error, will be an effective approach for the successful worldwide business enterprises of the future. After defining the function, an ideal scenario for its design and implementation is discussed, including its formation, charter, functions, organization, and staffing. Criteria for a renewal business are discussed, and the process for finding and developing such “related diversifications” is described. Several potential pitfalls in establishing and operating such a function are derived from past failures.