Vocabulary
Carve outSometimes known as a partial spin-off. A carve-out occurs when a parent company sells a minority stake in a subsidiary in an ipo or rights offering. In most cases the parent company will spin off the remaining interests to existing shareholders at a later date. Carve outs are often motivated by a wish to capitalize on a resource outside the strategic domain of a company and create shareholder value.
Commercialization
Commercialization is the process of taking a new business from development to full scale operation. It includes steps such as developing partnerships, production launch and ramp-up, development of marketing programs and materials, supply chain development, sales channel development, and service and support development.
Corporate business incubation
Corporate business incubation provides opportunity and an instructive, supportive environment to intrapreneurs at start-up and during the early stages of businesses.
Corporate venturing
The practice of a large company actively seeking to create new businesses and means of generating wealth from existing assets, particularly the potential of people.
Entrepreneurship
The process of identifying, developing and give life to a vision. The vision can be an innovative idea, an opportunity or a better way of doing things. The outcome of this process is the creation of a new business, operating under conditions such as risk and ambiguity.
Hidden asset/resource
An asset or resource that is omitted or understated in the balance sheet of a company. An asset or resource which constitutes a potential commercial opportunity. Examples are r&d findings, technological infrastructure, brands, etc.
Innovation
Innovation = idea + realization + exploitation
Innovation systems
Systematic method to stimulate, guide and support innovation activities. Components include strategy, process, structure, finance, culture and people.
Intrapreneurship
Short for intra-corporate entrepreneurship. This refers to a situation when a person or team, within a large organization, assume direct responsibility for the development of an idea to produce a profitable product or service through assertive risk taking and innovation.
Intrapreneurial process
Systematic method for handling intrapreneurship including sub processes such as identification, development and commercialization.
Organic growth
A company is said to be growing organically when it is increasing the turnover by enhancing its existing business and creating new businesses internally. Contrast this with a company that is growing by acquiring other companies.
Spin-out
A strategy in which a company develops businesses based on its non-core emerging technologies and sells minority stakes to public investors. The venture-capitalized spinouts remain within the corporate orbit or structure. Spin-outs are often motivated by a wish to capitalize on a resource outside the strategic domain and finance the development of such a venture by issuing shares to external investors.
Spin-off
When a company decides that a subsidiary needs to stand on its own, it might do a spin-off, distributing shares of the new entity to existing shareholders, or selling the new business to its managers or even its employees. There are many possible reasons for a spin-off. Management may decide, for instance, that this is a way to maximize shareholder value. Or it may be decide that the subsidiary is not earning the kind returns that other units of the company generate.
Strategic fit
Also known as strategic alignment. This is the fit between a parent company's strategic goals and objectives and that of a subsidiary/venture. This is used to determine whether a venture should be integrated within an existing organizational unit or separated as an externally managed entity.