Who the programs would affect, how they would affect such parties, and how the programs would affect the company all have to be considered when proposing new ideas. Choosing to implement the wrong programs could be significantly detrimental to a company and exhaust its valuable resources such as land, labor, capital, and knowledge. If not properly convinced of a program's benefits, management surely will not spare those resources for new programs and take them away from established ones. The bottom-line behind corporate entrepreneurship is that the entrepreneur must have both business knowledge as well as knowledge of company politics in order for their idea to succeed. .
Managing Internal Corporate Venturing Process.
The main objective in business is to grow and at the same time diversify in order to reduce risks. As a company, GE offers many diversified products and services across many industries such as automotive, medical, and financial. Just as corporate entrepreneurship is a difficult process, internal corporate venturing is no different. Internal corporate venturing is the process of developing new businesses within an established firm. This route is chosen in order to avoid damaging corporate cultures which would probably kill off the idea if it was generated outside of the organization.
Often, as illustrated by the ICV model, new programs start off under a special management team which develops an idea and champions it within the company. Here, the idea is examined for its feasibility and usefulness for the company. The next stage of corporate venturing deals with championing the idea among the organization, and often a new management team takes over. This new team is made up of middle managers who attempt to develop a strategy for the proposal. In the last stage, the venture is shifted to corporate management where it will be approved or denied, structured, and operated.
