Since our webinar with Jan Sedlacek at StudioHub, the corporate landscape has shifted even further. With economic volatility, accelerating technological disruption, and shifting consumer behaviors, corporations are facing an urgent need to diversify their revenue streams.
The time for slow, incremental innovation has passed. Legacy industries once thought stable are struggling, and those that fail to embrace venture building risk falling behind. The Startup Studio model isn't just an interesting concept—it’s a necessity for corporations seeking resilience and growth.
Our conversation with Jan was a wake-up call then, and it’s even more relevant now. Corporate venture building is no longer optional. The companies that act today will be the ones shaping the industries of tomorrow.
In one of our earlier past webinars at StudioHub, we explored the future of corporate innovation and venture building through the Startup Studio model in the corporate context. The spotlight was on Jan Sedlacek, the esteemed founder of Stryber Startup Studio.
Jan delved into strategies driving corporate evolution, revolving the conversation around leveraging startup studio models to expedite corporate innovation and fortify against disruptive forces in the business landscape.
Jan's insights were grounded in stark experiences within traditional corporate structures. His analogy likening his role in a sinking corporate giant to a crew member polishing the Titanic's insignia encapsulated the challenges faced by many companies amidst disruptive waves in the digital era.
The narrative gained strength from compelling data. Jan emphasized the imperative need for corporate transformation, citing examples from the travel industry's upheaval due to online platforms like TripAdvisor and Google. For instance, online penetration in the flight industry reached a critical 20%, signifying an industry flip according to industry expert Scott Galloway of NYU Stern.
One striking revelation was the correlation between diversification and shareholder value. Jan highlighted a surprising correlation: companies diversifying their portfolios outperformed the market, revealing that diversified companies surpassed market performance significantly (the most diversified companies may perform even 54% better annually) challenging the conventional belief in the "conglomerate discount."
Jan's roadmap to corporate unicorns emphasized the fusion of transformation and diversification. He stressed the need for CEOs to align with industry trends, craft a clear vision, and establish dedicated innovation hubs within corporate structures.
In discussions about scaling new ventures within established corporations, data illuminated the high-risk nature of these endeavors. Jan's metaphor of plants and unicorns underscored the need for a nurturing environment. Intriguingly, 89% of new ventures face failure from launch to expansion, indicating the challenging terrain of corporate innovation.
What emerged from this data-driven discourse was a clear mandate for corporates: evolve, innovate, and diversify. Jan's approach, underpinned by data, reframed the discourse on corporate innovation, offering tangible strategies for navigating the dynamic business landscape.
The lessons gleaned from Jan's journey serve as a clarion call to embrace change, cultivate innovation, and envision a future where corporate unicorns drive value and evolution in the ever-changing business ecosystem.
In the intricate world of corporate innovation, Jan furthermore delved deep into the challenges faced by corporations when striving to embrace innovation within structured environments. He vividly portrays the tug-of-war between reinvention and maintaining a successful core business model.
Complexities in Reinventing Oneself
Jan speaks of the constant dynamic of reinvention, humbling oneself in the face of an uncertain future. He sheds light on the paradigm shift between the innovative, evolving landscape and the stable, hierarchical nature of established core business models.
The Dichotomy: Core Business versus Innovation
The discussion highlights the established core model's focus on efficiency, short-term goals, and market leadership. Jan emphasizes the challenge of balancing this model with the need for transformative innovation, which requires a different paradigm.
Navigating Paradigm Shifts
Jan cautions against transformational initiatives that solely focus on cultural changes or superficial agility. Instead, he advocates for a methodological approach that harnesses corporate strengths while avoiding the pitfalls of the operational excellence paradigm.
Strategic Innovation Approach
He introduces the concept of creating a metaphorical fence—setting clear rules and boundaries—while fostering innovation in adjacencies rather than within the core. Jan emphasizes a methodological building process, customizing the Lean Startup approach to suit the corporate context.
The Value of Strategy in Innovation
Strategy plays a pivotal role in Jan's approach, bridging the gap between financial goals, corporate finance, investment, and startup economics. The emphasis lies in defining where innovation needs to happen while avoiding complete detachment from the core.
The Perils and Rewards of Corporate Venture Building
Acknowledging the resistance to venture building within corporates, Jan underlines the importance of stakeholder buy-in, which often needs alignment with the CEO's agenda. However, he notes that venture building can yield substantial returns despite challenges, though measurable benchmarks remain elusive due to limited disclosure.
Successes Amid Challenges
While hard data on corporate venture building success is scarce, Jan emphasizes the track record's existence, albeit behind closed doors. The value addition of venture building is tangible, though the difficulty lies in reaching the finish line, given the multiple potential points of failure.
Conclusion: The Complexity of Success in Corporate Innovation
In a landscape where benchmarks and quantifiable successes remain challenging, Jan stresses the importance of case studies and experiential insights, highlighting the ongoing learning curve in navigating successful corporate innovation.
Moving Forward
This intricate, data-rich discussion illustrates the complexities and challenges surrounding corporate innovation. It underscores the need for a nuanced, methodological approach, navigating the tension between established core models and the necessity for transformative ventures. As the quest for successful corporate innovation continues, Jan's insights offer a beacon for those venturing into this demanding terrain.
About the Author
Jan is the founder of Stryber, a corporate Venture Builder and corporate Venture Studio builder headquartered in Switzerland with offices around the world. Jan started his career in Web design before moving to strategy consulting at Roland Berger, founding multiple startups and ultimately founding Stryber. At Stryber he has led the venture building and studio building work with leading European corporates.
