Lecture 1

Question 1

What is new business building?

Answer 1

Commercialisation of new products/services often entering new markets that generate new revenue sources

Question 2

Ceo’s are prioritising new business building more, but what does this lead to?

Answer 2

It leads to revenue growth, additionaly every dollar earned from new ventures is worth double in enterprise value compared to a dollar from their main business

Question 3

Currently new business account for 12% of revenue, what are the survey participants aiming for?

Answer 3

29% of revenue, to reach this the rate of intrapreneurship should increase to 1.5 new businesses per year instead of the current 3.5

Question 4

What is corporate governance?

Answer 4

system of rules, practices and processes used to set objectives and manage a firm. It needs to balance various stakeholders interests.

Question 5

What is an innovation committee?

Answer 5

Board (sub) committees dedicated to innovation, serves as an instance of organisational practices within the scope of corporate governance.

Question 6

only 56 companies of the S&P 500 have committees for science, technology and innovation. What are the benefits?

Answer 6

Internal: Increased visibility of technology issues at board leven, Promotes the enterprise recognition of technology driven opportunities and risks.
External: Promoting development of new IP and commercial opportunities. Signifies boards focus on technology.

Question 7

Did the shares of companies with innovation committees outperform the big indexes

Answer 7

Yes

Question 8

What are internal echo chambers?

Answer 8

Environment within organisations where diverse ideas are slifled, board level committees can look beyond this

Question 9

What is choice mapping?

Answer 9

Breaking down the problem into different into sub-question to answer to avoid cognitive bias.