Idea in Brief
The Problem
Established corporations have many resources and capabilities that ought to give them an advantage over start-ups. But every so often a couple of misfits with a laptop manage to steal a corporation’s lunch.
Why It Happens
Incumbents lack the entrepreneurial muscle to take an idea from small to big. If an idea is radical enough and sound enough, a nimble start-up can disrupt an incumbent’s value chain.
The Solution
Create a hybrid start-up—a new model that combines the best of people, processes, and resources from both inside and outside the company. Evidence suggests that it is two or three times as likely as an independent start-up to succeed.