Corporate Venturing: The Case Study of Xerox Technology Ventures

1201 Words5 Pages
1. Corporate venturing is defined as creating a new business within your firm (Block & MacMillan, 1993). Loosely, the process involves creating a climate for new ventures to emerge, identifying the best ventures, choosing a development strategy, directing the venturing process and ensuring the venture's long term survival (Ibid). Old-established firms often struggle with corporate venturing, because they do not have processes in place or established to ensure that the best of the ideas are brought to fruition. Burgelman (1983) argues that major diversified firms benefit from having a specific process to turn the results of research and development into viable ventures over the long run. Xerox had a few different motivations for establishing Xerox Technology Ventures. The company had been involved in venture capital since the early 1970s, and had set up an investment banking subsidiary in the early 1980s, so there was a certain amount of experience and infrastructure already in place to facilitate the development of XTV. Xerox also realized that diversification was important to success. Its own history had made that point clear. For example, the photocopier product at the core of its business was at one point a new venture that the company pursued. The same can be said of the laser printer. Other products that were either developed by Xerox or to which Xerox made a major contribution at an early stage the personal computer, the mouse and other peripherals were now booming

More about Corporate Venturing: The Case Study of Xerox Technology Ventures

Open Document