Context 

Our client, a major player in the construction industry, established an intrapreneurship program that led to the creation of a startup gaining traction both internally and externally. The company, that developed a platform for ordering low-carbon concrete, required additional funding to expand further. We mentored the intrapreneur in developing multiple comprehensive business plans and diverse funding scenarios.

Mission

In this context, we supported our client to:

• Team, Market, and Growth Analysis: Evaluate the team’s expertise, commercial robustness, and growth prospects
• Financials: Review the company’s financial health and performance to date, as well as future projections
• Business Plan: Craft a strategic business plan that outlines the company’s vision, objectives, and actionable steps for growth
• Funding Requirements: Assess the amount of funding needed for expansion and how it aligns with the business plan
• Funding Scenarios: Build scenarios to explore different funding options and their potential impact on the company’s future

Key figures

Effectuation is a concept in entrepreneurship that emphasizes transforming uncertainty into opportunity by leveraging existing resources rather than relying on predictive planning. Developed by Professor Saras Sarasvathy at the University of Virginia in the late 1990s, effectuation arose from her studies of expert entrepreneurs who navigate unpredictable environments through a unique decision-making framework.

What is Effectuation?

Effectuation is defined as a decision-making process where entrepreneurs start with the resources they currently possess and derive goals from those resources, rather than beginning with a specific goal and acquiring the necessary resources to achieve it. This approach contrasts with traditional causal reasoning, which is linear and goal-oriented.

The Fridge Analogy

A common analogy used to illustrate effectuation is that of planning a dinner party. Instead of creating a detailed menu and shopping for specific ingredients, one assesses what is already available in the fridge and pantry. This encourages creativity and adaptability, allowing for the combination of existing ingredients to create a meal, similar to how entrepreneurs can utilize their current assets—skills, relationships, and knowledge—to innovate.

Applicability to Corporate Innovators

Effectuation is particularly relevant for corporate innovators operating in fast-paced and uncertain environments. By adopting effectuation principles, these innovators can effectively utilize their existing resources for innovation while managing limited budgets. This approach allows organizations to experiment and innovate without overextending their financial resources.

The Six Pillars of Effectuation

1. Bird in Hand Principle: This principle emphasizes starting with the resources you already possess, which can be categorized into three groups: who you are (your traits, tastes, and abilities), what you know (your education, training, expertise, and experience), and who you know (your social and professional networks).
   Example: 3M leveraging its existing adhesive technology to create Post-it Notes.

2. Affordable Loss Principle: Focus on what you can afford to lose rather than potential gains.
   Example: Google exemplifies this through its 20% time policy, where employees dedicate one day per week to personal projects, effectively “losing” productive time. This calculated risk has led to breakthrough innovations like Gmail, demonstrating how a controlled, affordable loss can generate significant value.

3. Lemonade Principle: When life gives you lemons, make lemonade. Embrace surprises and use them as opportunities.
   Example: During the COVID-19 pandemic, General Motors (GM) pivoted its manufacturing capabilities to produce personal protective equipment (PPE) for healthcare workers.

4. Crazy Quilt Principle: Just as a multilayer fabric consists of several layers woven together, the crazy quilt principle involves weaving together partnerships with various stakeholders.
   Example: Siemens collaborates with various stakeholders, including local governments and technology partners, to develop smart city solutions.

5. Pilot-in-the-Plane Principle: Focus on activities within your control.
   Example: Tesla exemplifies this principle by actively shaping its market through innovations in electric vehicle technology and battery production.

6. Non-Predictive Control: Shape the future rather than trying to predict it.
   Example: Toyota’s Just-In-Time (JIT) manufacturing system exemplifies non-predictive control

Aster Capital’s Experience and Toolkit

We have developed a series of workshops aimed at educating corporate innovators on intrapreneurship and essential entrepreneurial tools. Our intrapreneurship toolkit equips project managers with the skills to de-risk their initiatives and foster innovation within their organizations.

Ready to empower your team? Book a meeting with us today to explore how our tools can guide your innovation managers in a structured way.

Want to Go Further? Discover Our Recent Webinar on Effectuation with Michelin, SNCF & EDF

We recently conducted a webinar that explored nine key lessons drawn from over 20 years of experience in the intrapreneurship space. If you’re interested in discussing how to structure a program leveraging effectuation principles, check out our summary and YouTube replay here.

What is Intrapreneurship?

“Intrapreneurship is a dynamic approach where employees, in collaboration with their organizations, initiate innovative and value-creating activities”. This practice is a vital aspect of modern organizations, enabling employees to innovate and drive change within their companies.

During a recent webinar, we gained insights from experts who have successfully led intrapreneurial programs: Marc Evangelista (Michelin, Author of “Effectuons l’Intrapreneuriat”), Valentine Boitelle (SNCF), and Vincent Vidal (EDF). Their experiences highlighted the challenges and successes of fostering intrapreneurial initiatives, such as the Michelin Innovation Lab, SNCF’s La Ruche, and EDF’s incubation program. You can watch the entire webinar here.

Here are nine unexpected lessons derived from our discussions.

Lesson 1: Immediate ROI is a Mirage

Valentine Boitelle (SNCF) cautioned that expecting immediate returns on investment (ROI) from intrapreneurial initiatives can lead to disappointment. While businesses often seek quick results, significant ROI is typically a long-term endeavor. This pressure for instant results can hinder innovation, underscoring the need for patience and a focus on sustainable growth. For SNCF’s Ruche program, the most substantial impact lies in cultural transformation rather than immediate financial returns.

Lesson 2: The Importance of Structured Methodologies

Marc Evangelista (Michelin) emphasized the need for structured methodologies in intrapreneurship, proposing a three-pronged approach.

1. Hypothesis-Driven Methodology: Assessing desirability, feasibility, and viability through statements like “I believe I can…”
2. Effectuation Principles: Drawing inspiration from entrepreneurship principles by leveraging existing resources—skills, knowledge, and networks—rather than waiting for ideal conditions. This approach focuses on “affordable loss,” allowing intrapreneurs to determine what they can risk rather than fixating on potential returns, fostering creativity and adaptability.
3. “Crazy Patchwork”: Engaging external stakeholders for insights while maintaining ethical standards.

Lesson 3: Strategic Disconnection Leads to Failure

Vincent Vidal (EDF) emphasized that alignment of the intrapreneurship program with the company’s strategic priorities is crucial for success. For EDF, the goal is to create new businesses, not to create new offerings. A prime example of this approach is the establishment of Urbanomy, a company focused on decarbonization, and Hynamics, which operates within the hydrogen production value chain. While these initiatives may initially appear disconnected from current operations, they are strategically aligned with EDF’s vision for the next 5 to 10 years. This alignment not only strengthens the overall group strategy but also facilitates the identification of sponsors, which can significantly accelerate project visibility and support.

Lesson 4: Open Innovation is an Underutilized Lever

Valentine (SNCF) discussed how  open innovation can enhance intrapreneurship through collaboration with external partners. Evolving from the La Ruche intrapreneurship program to the Rail Open Lab—an open innovation department with multiple corporates—she aims to create synergies by accelerating intrapreneurship projects within defined sprints. This collaboration not only enriches the projects but also exposes intrapreneurs to the external environment, broadening their perspectives and enhancing their capabilities.

Lesson 5: Impact and KPIs Matter

For Marc (Michelin), there is no magical recipe for establishing KPIs. The most crucial aspect is to align these KPIs with the company’s objectives to effectively monitor progress. Additionally, it is important to focus on the human element of the program. Designed to develop talent, the intrapreneurship initiative should also measure participants’ exposure to innovation tools and methodologies.

To achieve quality outcomes in the intrapreneurship program, it is essential to start with a robust pipeline of projects—essentially creating a funnel for idea generation.

Lesson 6: Intrapreneurs are Not Superheroes, but collaborators

For Vincent (EDF) if intrapreneur views themselves as a superhero, it can lead to detrimental outcomes for both themselves and their colleagues. Intrapreneurs must be open to their ecosystem and build strong teams; they cannot succeed as solo entrepreneurs. He noted that there have been multiple instances where teams fell apart after the incubation period due to a lack of collaboration.

It is crucial for intrapreneurs to engage with their organization and leverage support functions such as marketing, legal, and finance. By actively seeking feedback and fostering collaboration, intrapreneurs can enhance project outcomes and ensure alignment with company goals.

Lesson 7: Budget Ownership Encourages Responsibility

Valentine (SNCF) emphasized that empowering stakeholders with budget ownership for intrapreneurial programs is crucial for their viability. This approach prevents the innovation unit from being viewed merely as an internal “bank” and facilitates the industrialization of new ideas. She also noted that engaging multiple internal sponsors increases project advocates, encouraging them to take a proactive role in advancing initiatives.

At EDF, the budget is managed by the incubator directly. In contrast, Michelin employs a seed funding model that includes salaries, which limits project time and requires finding an internal buyer afterward.

Lesson 8: Ideal Company Profile for Intrapreneurship

Marc (Michelin) emphasized that while there may not be an ideal company for fostering intrapreneurship, several key ingredients are necessary.

First and foremost is the unwavering support from top management throughout the year. Then, the program should be well-structured, with coaches and mentors to help projects progress quickly, which may involve adapting purchasing procedures for a supportive environment. Additionally, it’s important to mobilize competencies that intrapreneurs may lack.

Marc noted that smaller companies often struggle with intrapreneurship programs, as they find it more challenging to accept losses due to the financial investments required.

Lesson 9: The Importance of Dedicated Governance

At EDF, there’s a multi-layered governance which is independent from the rest of the organization. There’s a decision-making layers for the go/no stages, and there’s the mentoring layers. In addition, it’s important for Vincent (EDF) to implicate high-level people to make people move things faster and activate their network.

Conclusion

Intrapreneurship is more than just a trend; it has the potential to create a significant positive impact within companies when structured effectively. By fostering an environment that encourages innovation and collaboration, organizations can harness the creativity of their employees to drive meaningful change and long-term growth.

At Aster Fab, we are keen to help organizations assess their intrapreneurial capabilities. If you’re interested in a 30-minute diagnostic session, please reach out to us at hmaxwell@aster.com. Together, we can unlock the full potential of intrapreneurship within your organization.

For more insights on intrapreneurship, check out the entire webinar here.

Context 

In the energy industry, allocating topics between innovation and R&D teams is not always straightforward, as it involves navigating complex challenges and competing priorities. Key considerations in this allocation process include time horizon focus (short, medium, or long term), business proximity (core, adjacent, or new markets), and the Technology Readiness Level (TRL) scale, among others.

Mission

We aimed to illuminate how leading organizations allocate topics within their teams. This exploration covered:

• Key considerations when allocating topics
• Educational content on five key frameworks
• Insights from interviews with nine leading energy companies—TotalEnergies, Ørsted, Iberdrola, EDF, Engie, Saipem, Enedis, Enel, and Galp—highlighting their unique approaches to balancing innovation and research efforts in a rapidly evolving energy landscape.

Key figures

In our capacity as a consulting firm specializing in assisting companies to audit, design, and establish their corporate venture arms—as well as generate deal flow—we often confront the pressing question: What are the best practices in Corporate Venture Capital (CVC)?

Against the backdrop of the sobering fact that the average lifespan of a CVC is a mere 4 years, we recently organized a panel titled “The CVC Survival Game: Insights from European Survivors,” featuring experts from BMW (Germany), EDP (Portugal), and Equinor (Norway).

Moderated by Hélène Maxwell from Aster Fab, the conversation distilled into 8 actionable tips for mastering the CVC game. Link to the YouTube video here.

1. A Clear and Dynamic Investment Mandate

Mariana Costa of EDP Ventures highlights the crucial need for a well-defined, flexible investment mandate aligned with innovation priorities. “It needs to fall within the investment mandate and align with our strategic objectives,” Costa emphasizes. This nuanced perspective underscores the importance of adaptability in the ever-changing realm of corporate venture capital, ensuring responsiveness to emerging opportunities and evolving industry trends.

2. Embracing Venture Capital Best Practices for Success

Margret Dupslaff underscores the benefits of BMW I Ventures’ single-LP, independent approach, drawing inspiration from venture capital practices. “Our independence allows us to make decisions swiftly, giving us a competitive edge in the VC space,” she emphasizes. This structure enables quick risk-taking, facilitating effective competition in the dynamic VC landscape and allowing investment decisions to be made in as little as 10 days.

3. Focus on Impactful Solutions

All three CVCs—EDP Ventures, Equinor Ventures, and BMW i Ventures—emphasize investments in sustainability. Startups in climate tech and energy transition are particularly sought after. Kristine Marie Kvalø Johansson of Equinor brought attention to the need for a focus on solutions that will make a tangible impact. “Working with carbon capture and value chains is something that I think will be necessary, and we have to scale faster,” Johansson stated. In a landscape teeming with possibilities, the key lies in identifying ventures that align not just with corporate goals but with the broader narrative of making a positive impact on the industry and the world.

4. Expect Failures, Embrace Learning

Both EDP Ventures and Equinor acknowledged the inevitability of failures in the CVC game. “This is Venture Capital. It is what it is. Hopefully, we try to minimize them, but they are part of the game,” said Mariana Costa. The ability to embrace failures as learning opportunities defines the resilience of a CVC player. These setbacks, rather than deterrents, become stepping stones for future successes.

Parallelly, Margaret Dupslaff from BMW i Ventures aligns with this learning ethos, advocating for startups to adopt a similar mindset. Encouraging adaptability and openness, she emphasizes the significance of absorbing insights from corporate partners, leveraging collective expertise for mutual growth.

5. Stakeholder Management is Critical

Effective stakeholder management emerged as a critical element, according to Equinor’s Kristine Marie Kvalø Johansson. She highlighted the importance of proving the value of CVC initiatives both internally and externally. “It’s all about being able to prove what we’re doing, not just externally but also internally,” she explained. This dual focus on maintaining external credibility and internal alignment underscores the delicate balancing act that defines CVC success.

6. Beyond Investment, the Transformative Power of Value Creation

CVC transcends mere financial transactions; it’s a strategic pursuit dedicated to creating lasting value. Mariana Costa from EDP Ventures emphasizes, “Focus on strategic return better reflects our DNA as a strategic investor,” prioritizing long-term collaboration over immediate financial gains. With over €100 million in signed contracts between portfolio companies and Business Units, EDP Ventures exemplifies the power of these strategic partnerships, showcasing a commitment to fostering innovation within the industry.

7. Invest in Relationships and Cultivate Notoriety

Investing in relationships is crucial in corporate venture capital, as Mariana Costa emphasizes the need for a close rapport with companies and internal stakeholders. This commitment extends beyond investments and is a partnership at all levels, with early engagement between startups and Business Units enhancing the likelihood of successful commercial contracts. Additionally, Mariana highlights that “VC is all about relationships”, evident not only in managing the investees but also externally. By cultivating external relationships, you can enrich deal flow, boost your reputation and attract startups, ultimately strengthening the reputation of the CVC.

8. Be Selective and Discern Business vs. Investment Cases

Margret further underscores this by sharing insights from BMW Startup Garage (Venture clienting unit that created POCs with Business Units), where knowledge and deal flow are generously shared. As an illustration, she cites a recent instance involving a company with smart tire technology. While the innovation was intriguing for enhancing road awareness in vehicles, it lacked a substantial investment case due to the limited market size—a perspective that aligns with strategic decision-making in the venture capital realm.

EDP Ventures established in 2008, operates globally with a focus on climate tech companies and energy companies driving the energy transition. With a substantial investment of over €60 million, EDP Ventures has invested in 37 active portfolio companies across the globe. Their investment mandate spans from seed to Series B, with an average ticket size ranging from €1 million to €10 million. The portfolio aligns with EDP Group’s innovation priorities, covering renewable energy, smart networks, distributed energy resources, storage, and more.

Contact: Mariana Costa – mariana.costa@edp.com

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BMW I Ventures established in 2011, has thrived with a significant commitment. Operating with a fully independent fund II of BMW, they have €300 million to deploy. Having invested in more than 60 companies, BMW Ventures typically engages with startups in their Series A to C stages, with an initial ticket size of around €10 million. Notably, 13 of their portfolio companies have reached Unicorn status, showcasing the success of their financial approach. BMW I Ventures focuses on sustainability across the entire automotive value chain, leveraging BMW’s expertise for informed decision-making.

Contact: Margret Dupslaff – margret@bmwiventures.com

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Equinor Ventures, established in 1996, is Equinor’s corporate venture capital arm dedicated to investing in ambitious early-phase and growth companies. This is based on a belief that the innovation, creativity and agility of startups can accelerate the change towards a low-carbon future. Equinor Ventures engages with startups from early to later stages, all this is supported by technical, market and financial guidance, with a strong drive for piloting and implementing the solutions. We are looking to invest around USD 750 million over the next five years and are seeking to allocate 70% of the capital to renewables, low-carbon solutions and future opportunities

Contact: Kristine Marie Kvalø Johansson – krisjo@equinor.com

Context 

We transformed a leading mineral supplier’s approach to innovation by helping them transition from a siloed R&D model to a comprehensive open innovation strategy. The company had been engaging with startups through isolated business units, which limited their potential for collaboration and growth. Our team was tasked with structuring a future Open Innovation department, identifying the appropriate vehicles for engagement, and determining how to organize them effectively. Through tailored workshops and our proprietary methodology, we guided the strategy team in clarifying their innovation objectives and developing a robust portfolio of initiatives.

Mission

• Carried out an audit on their knowledge of the different vehicles available at hand
• Definition of the objectives of the future open innovation department in line with the group’s strategy
• Evaluation of the different vehicles to meet these objectives
• Selection of 5 complementary vehicles to form a portfolio
• Definition of a ramp-up roadmap (walk, run, fly) for the deployment of these vehicles and associated human resources
• Support in the design of the future governance

Key figures

Context 

In a context of growing pressure on the grid, the Innovation department of a major European Transmission System Operator (TSO) wanted to set its innovation priorities for the coming year.

Convinced that the work done internally lacked methodology, Aster Fab’s was asked to map all the technologies of strategic focus.

Mission

We carried out a study into four steps:

• A megatrend analysis to paint a complete picture of all megatrends impacting TSOs in the short and long term. By combining this analysis with the group’s strategy, we were able to identify all the associated challenges for our client.
• Technology analysis to scout and navigate through the technologies to address these challenges. Through this analysis, we were able to prioritize and categorize the technologies and sub-technologies.
• Technology map to present in a visual way to the board the technologies of focus. 5 clusters, 27 technologies and 140 sub-technologies were mapped.
• Prospective analysis on 10 selected sub-technologies to give our client a first flavour of potential applications, the startups operating in the space and other weak signals of interest.

Key figures

EIT Health and Biogen are joining forces to launch ‘neurotechprize’ to advance promising technology solutions addressing Alzheimer’s Disease (AD) from around the globe.

Through the neurotechprize, they aim to accelerate the most promising solutions and technologies addressing the challenge of AD in Germany.

Aster Fab is thrilled to have supported Biogen and the neurotechlab in the design and organization of the prize. 

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4 AREAS OF FOCUS

EIT Health and Biogen have identified four areas of focus that could make a difference in the life of people diagnosed with AD:

1. Accelerating the diagnostic pathway

2. Improving disease monitoring

3. Easing burden on patients

4. Maintaining quality of life

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THE PROGRAM

The program is aimed at health entrepreneurs in the neurotech space seeking support in the validation of their ideas and developing business goals in a supportive and enriching environment.

The program offers participants:

• A tailored three-month journey focused on your team’s objectives, established individually at the beginning of the program
• Intensive mentoring from top experts in business and science
• Access to industry stakeholders
• 10,000€ funding to support participation of founders and/or key team members in the journey

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ADMISSION PROCESS

Shortlisted teams will be invited for an online interview directly by EIT Health staff and Biogen experts. The interviews will take place between 20-26 January 2022. Shortlisted teams will be able to book the time for the interview via link provided in the invitation.

The application score and the result of the online interview will be combined to draw up a list of teams selected to pitch live in front of the Jury.

Up to 15 shortlisted teams (Semi-Finalists) will be invited to pitch their solution in front of the Jury on February 1st, 2022 to secure their spot in the program. The Jury will select up-to 10 teams (Finalists) who will be invited to enter the program (Finalists).

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THE PRIZE

The Jury will be able to award up-to two prizes:

• 1st Prize of 100,000€ for the winning solution
• 2nd Prize of 50,000€ for the runner-up