Organizational Capabilities. Resources People, equipment, technologies, cash (tangible) Product designs, information, brands, relationships (intangible) Processes Patterns of interaction, coordination, communication, decision-making
Use a heavyweight team within the existing organization
Use a heavyweight team in a separate spinout organization
Fit with Organization’s Processes
Development may occur in-house through a heavyweight team, but commercialization almost always requires a spinout
Use a lightweight team within the existing organization
(sustaining innovation) (disruptive innovation)
Fit with Organization’s Values
Why was the acquisition made? Was it resources, process or values?
Be careful not to destroy what was unique about process and values of acquisitions (IBM-Rolm, Daimler-Chrysler)
If its processes or values, keep new unit separate, and transfer parent’s resources into the unit (Cisco-StrataCom)
If its resources, then integrate unit with the parent.