CIO OPINION
The new operating model should dictate how innovation vehicles are chosen , and that choice should not be made without considering the venture ecosystem or consumer insights .
( Left ) Truc Mai Dupont Vohong , EMEA Vice President of Digital Partnerships and Business Development , Bain & Company and Line Eriksen , Associate Partner , Bain & Company
Creating ambidextrous organisations between original and new
C-suite needs to take a systemic approach to venturing accepting not all bets will land and an appetite for risk in exchange for transforming the industry says Line Eriksen and Truc Mai Dupont Vohong at Bain & Company .
Corporate venturing is an umbrella term for the ways companies can explore innovation opportunities . It encompasses building new ventures , deploying venture capital through various investment models , and forging strategic partnerships . In our experience working with companies using these approaches , there is no single formula for finding the right balance . Multiple bets must be laid .
That is partly because it is not easy to launch a new business . The great majority of corporate start-ups die at the minimum viable product stage when key features of a new product or service are ready to test with customers .
While global corporate venture capital activity slowed throughout 2022 , with CVC-backed funding ultimately falling 43 % from 2021 ' s record high , according to CB Insights , this has not stopped an increasing number of regional companies from tapping into venturing for growth and as a way to address the constant risk of disruption they face from business , societal , political uncertainty , and technical innovation . Through work at Bain ’ s Venture Ecosystem with corporate innovation leaders , venture capitalists , and start-ups , we have identified insights to consider when approaching corporate venturing in the Middle East this year .
Ambidextrous CEOs
To nurture new growth engines , venture leaders advocate creating a completely new culture , lateral to the parent company ’ s , that breaks down silos and
54 INTELLIGENTCIO MIDDLE EAST www . intelligentcio . com