What is an Emerging Business Opportunity?
An Emerging Business Opportunity is a disruptive new business opportunity a corporation believes it can turn into a revenue-generating business because they “somehow change the dynamics in a marketplace- a shift in business models, a set of new customer requirements, a disruptive technology.”- Bruce Harreld, SVP Corporate Strategy IBM ~2005
What is the benefit of establishing EBOs?
Companies benefit from establishing EBOs because it focuses their efforts on strategic business-building, and directs management attention and resources to the most promising ventures.
How are corporate EBOs managed?
Corporate EBOs are often managed as a portfolio of Business Opportunities, by a Unit charged with orchestrating the identification, support and funding of new ventures. The Unit shepherds multiple EBOs through the process of ideating, incubating and scaling new ventures, using a management system separate from that of the core. There is a separate set of policies, processes and procedures used to ensure that these more exploratory businesses have room to operate outside of existing core systems.
What enables EBOs to succeed?
EBOs are more successful when firms ring-fence funding to protect resources from being poached by the core business. EBOs benefit from having leaders who know how to work within the system and are knowledgeable about the organizational levers to be pulled to get things done.