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“The challenges between the C-suite and R&D organization is that the R&D organization wants to innovate, but often the C-suite has created a company through just evolution that is really unable to take those innovations and commercialize them efficiently.”  

Edward Jung, CEO, Xinova in our conversation at the 2018 IRI Annual in Atlanta.

Often the problem is the size of the innovation. If a large corporation is producing products and services that generate billions of dollars, they’re not going to be moved nor care about an innovation that only generates millions of dollars. It’s not worth it to them to take on that kind of risk. But the reality is products that generate billions today didn’t start out that way.

As Jung explains, “it has to be small first before it becomes big.”

To avoid the risk of innovation yet still participate in new ideas that become profitable, companies will sometimes let the marketplace play itself out and then purchase a company that has proven itself to be innovative. There’s no risk, but the cost to purchase could be enormous.

Jung recommends a happy medium between the high risk of doing all the innovation yourself, and the low risk of purchasing a successful company at a potentially high cost. Instead, allow the R&D department work with other partners who may be outside of the company.

“That will help de-risk the development and commercialization of their own technologies to make it more palatable to the C-suite and the investors of the multinational to use,” said Jung.


Photo by Leio McLaren (@leiomclaren) on Unsplash

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We are always seeking new problems to solve, as well as innovators and entrepreneurs to help us solve them. Let’s work together to create the future.

Our Worldwide Locations

USA

Xinova
311 ½ Occidental Ave S
Suite 300
Seattle, WA 98104
USA
+1 (206) 800-2678

Japan

Xinova Japan GK
Yaesu Mitsui Building 6F
2-7-2 Yaesu, Chuo-ku
Tokyo 104-0028 Japan
+81-3-6478-6120
xinova.jp

China

Xinova Innovation (Beijing) Consultancy Co. Ltd.
Room 2494, Level 24, Tower 3
China Central Place
77 Jianguo Road
Chaoyang District
Beijing, 100025 China

Singapore

Xinova Asia Pte Ltd.
150 Beach Road
#08-06/08 Gateway West 
189720 Singapore
+65 6408 5080

Korea

Xinova Korea
10th floor, Golfzone Tower
735, Yeongdong-daero
Gangnam-gu 
Seoul 06072, Korea
+82 2 6952 8840
xinova.co.kr

Australia

Xinova Australasia Pty Ltd.
Suite 1, Level 18
227 Elizabeth Street
Sydney NSW 2000 Australia
+61 2 8093 4850

India

Xinova India
Suite No 208, 2nd Floor
Survey No 414
PSR Complex
Govinda Reddy (GR) Layout
Bannerghatta Road
Karnataka, 560076, India

Finland

Xinova Finland
Erottajankatu 5 A 4
FI-00130 Helsinki
Finland

Affiliate offices in Tel Aviv & Vienna