Gartner Research

Fuel Innovation by Funding Ideas Using Venture-Capital-Like Practices

Published: 06 February 2014

ID: G00260025

Analyst(s): Rand Leeb-du Toit, Jackie Fenn

Summary

Many innovation initiatives successfully generate numerous ideas but often stall before funding. Executives who are responsible for innovation should know how internal incubation funds are designed to overcome the challenges of funding ideas and progressing them into value-creating innovations.

Table Of Contents
  • Key Challenge

Introduction

Analysis

  • Use Internal Incubation Funds as a Tool to Identify and Develop High-Benefit Opportunities and to Cultivate a Participatory Innovation Culture
  • Create a Staged Evaluation Process With Multiple Projects, Stage Gates and Potential Outcomes
    • Deal Flow
    • Staged Evaluation Process
    • Project Outcomes
  • Consider Developing an Investment Charter That Will Assist in Selling the Concept to Senior Executives, Giving Them a High Degree of Comfort That the Fund Will Be Utilized in the Organization's Best Interests

Case Studies

  • Shell GameChanger
    • Key Lessons Learned From GameChanger
  • Southern Company Intellectual Property and Incubator Program
  • Boa Vista Servi├žos Incubation Fund

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