Unidade Strategicas de Negocio
Caso
SITUATION
A new $200 million strategic business unit (SBU) of this global technology services corporation has grown rapidly after its initial launch through a succession of large contract wins.Having achieved a strong initial foundation in its core vertical markets, the leadership of the SBU identified significant competitive and regulatory changes that had the potential to impact the unit’s future growth potential. With the potential for slower growth, the leadership team recognized the urgent need for additional investment capital to strengthen the market position and reaccelerate growth for the unit.
CHALLENGE
As one of the newest and smallest units in the corporation, the SBU was in fierce competition for corporate investment with larger, more mature business units. At the corporate level, the leadership team was challenged with strategically allocating a limited pool of resources between the new SBU and the legacy business units. Leadership had to balance the need to support the legacy business, which contributed the vast majority of current revenue albeit at relatively low growth rates; and the new SBU unit, which had a much higher growth rate and higher potential for future growth.
SOLUTION
The corporation adopted an internal corporate venture capital competition. Under this innovative approach, the SBU leadership and the larger business units would be challenged to develop and “pitch” new strategic growth platforms to an outside board of experienced investment banking, private equity and venture capital executives. The 6-week long competition was designed to use future corporate value creation as the basis to attract corporate investment.
IMPLEMENTATION
To create the most compelling and attractive future growth platform, the SBU leadership adopted a recommendation to “act like a start-up” in approaching the venture competition. The SBU launched a collaborative, codesign process that engaged a multi-disciplinary team of SBU employees
SITUATION
A new $200 million strategic business unit (SBU) of this global technology services corporation has grown rapidly after its initial launch through a succession of large contract wins.Having achieved a strong initial foundation in its core vertical markets, the leadership of the SBU identified significant competitive and regulatory changes that had the potential to impact the unit’s future growth potential. With the potential for slower growth, the leadership team recognized the urgent need for additional investment capital to strengthen the market position and reaccelerate growth for the unit.
CHALLENGE
As one of the newest and smallest units in the corporation, the SBU was in fierce competition for corporate investment with larger, more mature business units. At the corporate level, the leadership team was challenged with strategically allocating a limited pool of resources between the new SBU and the legacy business units. Leadership had to balance the need to support the legacy business, which contributed the vast majority of current revenue albeit at relatively low growth rates; and the new SBU unit, which had a much higher growth rate and higher potential for future growth.
SOLUTION
The corporation adopted an internal corporate venture capital competition. Under this innovative approach, the SBU leadership and the larger business units would be challenged to develop and “pitch” new strategic growth platforms to an outside board of experienced investment banking, private equity and venture capital executives. The 6-week long competition was designed to use future corporate value creation as the basis to attract corporate investment.
IMPLEMENTATION
To create the most compelling and attractive future growth platform, the SBU leadership adopted a recommendation to “act like a start-up” in approaching the venture competition. The SBU launched a collaborative, codesign process that engaged a multi-disciplinary team of SBU employees