Corporate companies often struggle to develop in-house ventures, despite their vast resources and expertise. This is because traditional corporate structures and processes are often not conducive to nurturing innovation and taking risks. In this blog post, we will explore why corporate companies fail on developing in-house ventures and how the venture building approach can support their efforts in a good way.

Lack of Agility and Flexibility

One of the biggest reasons why corporate companies fail on developing in-house ventures is their lack of agility and flexibility. Traditional corporate structures are hierarchical, with decision-making processes that can be slow and bureaucratic. This can make it difficult for in-house ventures to keep up with the fast-paced and ever-changing business environment. Additionally, corporate companies may be focused on maintaining their existing business models and may be hesitant to take the risks necessary to innovate and develop new ventures.

Resistance to Change

Another reason why corporate companies struggle with in-house ventures is resistance to change. Many corporate companies have long-standing traditions and processes that are deeply ingrained in their culture. These traditions and processes can make it difficult to embrace new ideas and approaches. In addition, employees may be resistant to change because of fear of job loss or a lack of understanding of the potential benefits of a new venture.

The Venture Building Approach

The venture building approach is an alternative to the traditional corporate approach to innovation and entrepreneurship. This approach involves creating a dedicated team of entrepreneurs, designers, and developers who work together to develop and launch new ventures. These teams are given the autonomy and resources necessary to develop and test new ideas quickly. Additionally, the venture building approach emphasizes continuous learning, iteration, and experimentation, which can help corporate companies adapt to the fast-paced and ever-changing business environment.

Corporate companies often struggle to develop in-house ventures due to their lack of agility, resistance to change, and focus on maintaining existing business models. However, the venture building approach offers a viable solution to these challenges. By creating dedicated teams of entrepreneurs and designers who are given the autonomy and resources necessary to innovate and iterate quickly, corporate companies can develop and launch new ventures that are better suited to the fast-paced and ever-changing business environment.