The Invincible Company – How Companies Merge Startups with Corporate Management

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To know how companies merge startups with corporate management, view the entire article for a clear understanding. It has been explained in detail in three steps. First is explore and exploit; next is business model patterns, and the last is organizational culture. Each step has been described in detail below. 

  1. Explore and exploit:

An invincible company is the one that continually changes before it gets outdated. The author quotes about an invincible company “It explores the future while excelling the present. It creates an innovation and execution culture that lives in harmony under the same roof.”

Invincible has exceeded industry boundaries. We can see this for companies like Amazon, Apple, Tencent, and Ping An. An invincible company has the option of exploring and exploiting. Successful companies have changed their portfolio from search to growth. 

The options are preserved in the search stage, and the successful offerings are retained rather than terminated. It is an art to make an idea into a real business. Also, the authors said the same. Intuition and recognition come from experience and are more of an art. 

Innovation metrics should reduce risk, learning velocity, and expected profitability in the explore stage. 

 The authors have explained Clayton Christensen’s classification of innovation into three main types. They are transformative (radical change, developed by separate teams), Sustaining (consolidating the existing business models), and efficient (operational improvement). 

The innovation path and portfolio options are based on its strategic direction, organizational culture, and brand image. The innovation success can be determined with traditional R&D, business R&D, and execution. 

For companies like Nestle and Gore’s portfolio strategies, Bosch accelerates the program and many. 

2. Business model patterns:

Explained in two types of business model patterns at exploring and exploit invent and shift patterns. Let’s discuss with an example; the market explorers have unlocked the new markets. Gravity creators have made it difficult for the customers to switch to other competitors. 

Based on the massive R&D, sometimes the resource castles create impossible moats. The activity differentiators try to improve the supply chains. And revenue differentiators tries to capture more value with better pricing strategies. 

Coming to the competitive one, we can see Hilti (improved from sales of tools to service package), Netflix (tremendous change from DVDs to streaming), Nintendo Wii (low costs for casual gamers), TED (developed from conferences to global streaming), Adobe (Which shifts to Saas), and 23andMe (which has DNA testing kits, big data sets).

3. Organizational culture:

It explains how companies can create organizational cultures that associate both explore and exploit mindset and skillset. The execution of new ideas must associate with the systematic management of present companies. 

The authors stated that “cultivating corporate culture is like a garden.” They included Amazon’s shareholder’s letters highlighting the bold investments even in the face of hesitation, customer passion, learning from mistakes, and many.

The authors also stated that “exploration and execution from a true partnership to manage and explore the future.” Innovation as a career path should be predicted clearly, or else the talented innovators can shift to other competitors or startups. 

Leadership support and encouragement have been provided for strategic innovation, exploration budgets, and access to users. The organizational design should contain incentivizing entrepreneurial behavior, providing training, and connecting the new assistances to the core values. 

Failures should be considered as learning opportunities. The authors identify as the different skills call for training at the discovery, validation, and scaling stages. 

The entrepreneurial leadership in the invincible companies supports to stay inventive, realistic, market-based, risk-tolerant. According to Steve Jobs, Jeff Bezos, and Elon Musk, the leaders of all the invincible companies, the authors stated that they are incredibly agile intellectually. 

It also observed that the leaders display a crazy ethnic and have set high standards for them and others. 

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