Why is corporate entrepreneurship important?

At the World Economic Forum in January 2018, Justin Trudeau, Canada’s Prime Minister, famously said: “ The pace of change has never been this fast, yet it will never be this slow again.”

https://www.weforum.org/agenda/2018/01/pm-keynote-remarks-for-world-economic-forum-2018/

It took 14 years for computers to reach 15 million users. It took the internet 7 years. It took Facebook 3 years. And it took Pokemon Go only 19 days.

The world is changing at a very rapid pace. What works today could stop working tomorrow. Existing organizations that have been around for hundreds of years can suddenly find themselves under existential threat because of sea changes in consumer behaviors, technology trends and more. Companies that do not innovate and reinvent themselves are at risk for obsolescence.

Successful organizations operating at scale are set up to be predictable and repeatable. That’s great for their core business, but not a good model for adapting to change. Startups, on the other hand, are by nature iterative and experimental. Corporations need to find a way to run on two operating systems. A predictable and repeatable one for their core business, and an agile and iterative one for exploring new ventures that could become future growth businesses.

 

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