Only 61 companies of the S&P 500 Index in 1955 were still on the index in 2015. Nearly 88% of the Fortune 500 companies from 1955 has either fallen from the top Fortune 500 companies (ranked by total revenue) gone bankrupt, merged or been acquired by another company. To avoid erosion of business models by smaller and more agile and tech-savvy startups, large corporations constantly seek to foster new innovation that will keep them competitive. To do so, corporates employ a variety of new innovation strategies.
Below is a selection of a few innovation strategies that leading corporations have started to utilize:
- Dedicated strategy team: Corporations often start with staffing an innovation team within the company of full time employees dedicated to developing the strategy, managing, and activating innovation programs.
- Innovation Center of Excellence: Innovation can’t happen in a single group; without broader institutional digestion, new ideas will falter and fall. Some corporations are setting up cross-functional, multi-disciplinary groups to share knowledge throughout the company.
- Intrapreneur Program: Rather than rely solely on external programs, internal employees — dubbed “intrapreneurs” — are given a platform and resources to innovate. These programs invest in employees’ ideas and passions to unlock everything from customer experience improvements to product enhancements and full-blown internal startups that are then launched from within the company.
- Open Innovation – Hosted Accelerator or Corporate Incubator: Hosted inside a corporate office, large corporations invite startups to embed at their physical locations and provide them funding, corporate support, and other perks. This brings innovative startups inside a large company for everything from overnight hackathons to long-term programs.
- External Accelerator: Corporations partner with third-party accelerators to provide sponsorship and/or funding in exchange for relationships with startups and integration opportunities.
You can read the full list on 10 corporate innovation strategies here. Furthermore Tenday Viki, a strategist and innovation consultant, just published his book on “The Corporate Startup”, see if it is something for you here.