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Interestingly, this model was advocated for in The Innovator's Dilemma, which was the book that coined the term disruptive innovation. However the parent compa
by Eridrus 11y ago
Interestingly, this model was advocated for in The Innovator's Dilemma, which was the book that coined the term disruptive innovation.
However the parent company is unlikely to be the first customer, since they're unlikely to want the product themselves. Cisco probably didn't want Meraki's business until Meraki proved it to be a valuable one.
- downandout 11y agoIf a company spins out its critical R&D functions and gives the new company its intellectual property, then yes, it will want the "product" :) . What I'm talking about is creating a new company that begins with the express purpose of doing exactly what the internal R&D department was doing before, with a long-term contract from the parent to do exactly that. The parent becomes its first built-in, guaranteed, life-long customer. You're talking about buying companies that already have IP, which is a different thing.