The Value Captor's Process: Getting the Most Out of Your New Business Ventures
Coauthor(s): Thomas Keil.
The high failure rate of corporate ventures is usually chalked up to the fundamental uncertainty of the process. Our research suggests, however, that the disappointing amount of value generated by new business development is rooted in flawed ways of evaluating and managing ventures. These are based on a specious assumption: that the only worthwhile outcome of investment in a venture is a new business. Far too little effort is made to extract value from the so-called failures (ventures that don?t meet market, margin, or growth goals), the misfits (ventures that ultimately don't mesh with the overall corporate strategy), and the unexpected by-products of failures (new technologies, capabilities, or knowledge). By redesigning the process so that choices other than "go" (launching a new business) and "no go" (killing the venture) are fully considered along the way, companies can improve their returns on investment in innovation.
Source: The Harvard Business Review
McGrath, Rita, and Thomas Keil. "The Value Captor's Process: Getting the Most Out of Your New Business Ventures." The Harvard Business Review 85, no. 5 (Spring 2007): 128-136.