A Case Study on the New Business Development Strategy & Execution in an Established High-Tech Business Group
Date Issued
2011
Date
2011
Author(s)
Chen, Sheng-I
Abstract
Taking an established high-tech business group as a case for in-depth study, this research endeavors to explore how an enterprise responds to the situation that its core businesses continue to grow while the growth rate is declining, through new business development initiatives. By considering different aspects of new business development (NBD), this research attempts to find out what challenges an enterprise typically faces in the areas of strategy, organization, mechanism and leadership, and how they can overcome these challenges. By identifying the key factors of NBD success/failure, we hope to provide practical suggestions to other companies facing similar situation.
Our research finds out that encouraging NBD within the enterprise not only can leverage enterprise’s existing resources and competencies to build future growth platform, but also is a good way to retain professional managers and talents as a new development opportunity. Although the decision making regarding NBD is by and large subjective, the assessment processes of new businesses should be rational and objective. Therefore, a systematic mechanism with clear goals, right organization and leadership in place, planning with appropriate measurement, and a structured staged process with clear criteria and decision check points are critical to the success of NBD.
This research suggests that enterprises should always explore and develop new business opportunities as a growth platform. Enterprises should evaluate the new business from business, market, and customer perspectives, instead of from technology perspective. Enterprises should encourage and nurture a culture for internal venturing and “successful failure”. Leaders should recognize the importance and risks of NBD, and the differences between entrepreneurs and professional managers. Properly delegating and dispatching duties will help the NBD and the establishment of entrepreneurships. NBD requires a structured management mechanism and disciplined execution, supported by cross-function team collaboration. We suggest that new business should be managed separately from the core business, to allow proper autonomy. A different set of performance index and incentive scheme are also required.
Lastly, companies should maintain sufficient patience toward new business development. Sustainable and profitable growth should be the long-term objectives.
Subjects
New Business Development
Cross-Function Team
Decion Check Points
Entrepreneurship
Leadership
Type
thesis
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