The need for Ad hoc, Autonomous Business Entities for Disruptive Innovation

One of the lessons of the disruptive innovation research is that when a business requires a new business model, i.e. new processes, new resources and new values, it must be lodged in an ad-hoc, autonomous entity. Building the disruptive venture within the same organization will simply lead to the same result as Nokia: it will fail, swallowed by the power of the existing model, and it won't be for lack of trying. Millions, if not billions of dollars will add to form, but won't deliver actual goods.

Silberzahn