Anton Volovyk completed his studies at IE Business School under the guidance of a banking mentor and obtained an MBA from Harvard. He is recognized for his expertise in business growth, authority, and app monetization.
The decision to prioritize core business enhancement or venture into uncharted territories is a pivotal choice for every expanding company. Distinguishing between refining existing assets and venturing into innovative domains is crucial.
Tech enterprises aiming to penetrate unfamiliar markets commonly opt to acquire nascent businesses or groups and assimilate them into their existing frameworks. This is attributed to the complexities involved in detaching mature organizations from their core operations. Transitioning from one to 100 poses more significant challenges than initiating from scratch. Surprisingly, less than 8% of internally launched businesses manage to achieve scalability.
Furthermore, expansion strategies may not solely rely on mergers and acquisitions (M&A) tactics. Substantial resources, a privilege predominantly enjoyed by industry giants such as Adobe, Google, or Meta, along with the expertise to procure and effectively integrate ventures, are imperative for this approach. Nonetheless, failure rates in acquisitions range from 70% to 90%.
At Reface, we embarked on a challenging endeavor to explore avenues for business growth. This article delves into our methodology for evaluating novel solution concepts and determining their viability for pursuit.
Methodology or Revolution?
While drawing inspiration from the renowned Y Combinator for idea generation is beneficial, it cannot serve as the primary strategy for a company constantly seeking fresh concepts. Hence, we have cultivated our unique approach through trial and error, external consultations, and extensive research in the field. This strategy, as opposed to solely adopting the “noticing” approach, may yield a higher number of ideas suitable for evaluation.
Establishing a dedicated space conducive to birthing new ideas stands as the initial crucial step in fostering innovation within an established organization. Amidst the daily operations of a functioning enterprise, employees often remain engrossed in their routine tasks, adhering to established procedures and defined objectives rather than exploring novel concepts or initiating projects. Therefore, creating an environment that stimulates idea generation becomes imperative.
This may involve forming a compact, specialized team (preferably comprising no more than five members) to oversee idea generation, curate a diverse pool of ideas, and devise a framework for evaluating and prioritizing concepts aligned with your business strategy. To mimic the scenario of a startup founder launching a venture, we advocate for collaborative brainstorming in the initial stages of idea exploration, gradually transitioning to individual ownership during idea execution.
Maintaining a steady influx of concepts is equally vital. We have devised a system that scrutinizes recent ML research publications, tracks social media trends for emerging themes, and monitors various sources of inspiration.
Throughout the ideation process, we offer two key recommendations. Firstly, adopt a laser-focused approach with targeted leaps towards specific concepts. Swiftly pivot to the next idea post-rejection. Secondly, emphasize exploring appealing idea spaces over fixating on a singular concept. Even if the initial idea falters, delving into the right domain can unveil viable alternatives. We prioritize fertile ground, believing that innovation naturally thrives in such environments.
