Flevy Management Insights Case Study

Innovative Corporate Entrepreneurship Model for E-commerce in Health & Wellness

     David Tang    |    Corporate Entrepreneurship


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Corporate Entrepreneurship to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR To address a growth plateau in a saturated e-commerce market, the organization implemented Corporate Entrepreneurship, resulting in five new product launches, a 35% increase in employee engagement, and 10% of total revenue. This highlights the necessity for a structured innovation approach.

Reading time: 7 minutes

Consider this scenario: The organization is a rapidly expanding e-commerce player in the health and wellness sector that has hit a growth plateau after an initial surge.

It struggles to maintain its competitive edge in a saturated market. The leadership seeks to foster a culture of Corporate Entrepreneurship to drive innovation and capture new growth opportunities, yet faces challenges in aligning internal processes and resources to effectively launch entrepreneurial initiatives within the corporate structure.



Given the stagnation in growth despite a strong market position, it is hypothesized that the company's internal corporate entrepreneurship initiatives are either misaligned with market needs or inadequately supported by current corporate structures. Another hypothesis is that there is a lack of a strategic framework guiding these entrepreneurial efforts, resulting in scattered initiatives with diluted impact.

Strategic Analysis and Execution Methodology

The path to revitalizing the organization's Corporate Entrepreneurship efforts lies in a structured 5-phase consulting methodology. This process ensures a systematic approach to identifying, fostering, and scaling entrepreneurial initiatives within the organization, leading to sustained innovation and competitive advantage.

  1. Assessment of Current Capabilities: Analyze the organization's existing processes, structures, and culture influencing Corporate Entrepreneurship. Key questions include: How is innovation currently managed? What barriers exist to entrepreneurial thinking?
  2. Market and Competitive Analysis: Evaluate market trends, customer needs, and competitive benchmarks to identify opportunities for innovation. This phase involves data analysis and customer feedback to understand the demand landscape.
  3. Strategic Entrepreneurship Framework Development: Create a tailored framework that aligns with the organization's strategic objectives and market opportunities. Determine the resources and support structures needed for successful implementation.
  4. Execution Planning and Pilot Projects: Develop a roadmap for executing the framework with clear milestones and metrics. Launch pilot projects to test assumptions and refine the approach based on feedback.
  5. Scaling and Integration: Systematically scale successful initiatives across the organization. Integrate learnings into business operations and continuously monitor impact.

For effective implementation, take a look at these Corporate Entrepreneurship best practices:

Corporate Entrepreneurship Primer (24-slide PowerPoint deck)
Corporate Entrepreneurship Program Development (31-slide PowerPoint deck)
Hypergrowth Curve (157-slide PowerPoint deck)
View additional Corporate Entrepreneurship best practices

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Corporate Entrepreneurship Implementation Challenges & Considerations

Establishing a balance between the core business operations and entrepreneurial initiatives is critical. The methodology must allow for flexibility and adaptability without compromising on the efficiency of ongoing business activities.

Metrics play an essential role in gauging the success of Corporate Entrepreneurship. The organization should expect to see increased innovation output, measured by the number of viable new product or service launches, and a positive shift in organizational culture towards entrepreneurial thinking.

Resistance to change is a common hurdle. Clear communication of the value and potential of the new initiatives is necessary to secure buy-in across the organization.

Corporate Entrepreneurship KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


You can't control what you can't measure.
     – Tom DeMarco

  • Number of new products/services launched: indicates the output of innovation efforts.
  • Employee engagement in innovation programs: measures the cultural embrace of entrepreneurship.
  • Return on investment for new initiatives: assesses the financial impact of entrepreneurial projects.

For more KPIs, you can explore the KPI Depot, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

An analysis by McKinsey reveals that companies with dedicated innovation structures, coupled with strategic management support, see a 22% higher success rate in achieving sustained growth through entrepreneurial ventures. The organization's methodology should account for the establishment of such structures to nurture and advance innovation.

Corporate Entrepreneurship Deliverables

  • Innovation Strategy Framework (PPT)
  • Corporate Entrepreneurship Roadmap (PPT)
  • Market Analysis Report (PDF)
  • Pilot Project Performance Dashboard (Excel)
  • Cultural Transformation Guidelines (PDF)

Explore more Corporate Entrepreneurship deliverables

Corporate Entrepreneurship Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Corporate Entrepreneurship. These resources below were developed by management consulting firms and Corporate Entrepreneurship subject matter experts.

Alignment with Core Business Objectives

The integration of Corporate Entrepreneurship initiatives must be aligned with the core business objectives to ensure they contribute to the overall strategic goals of the organization. This alignment is crucial in securing the necessary resources and executive support for these initiatives to thrive. A study by BCG indicates that companies with highly aligned innovation strategies and business goals report 40% higher success rates in achieving their innovation targets.

It is imperative to establish a governance model that ensures new entrepreneurial projects reinforce the company's strategic direction. This model should include a cross-functional steering committee that oversees the selection and prioritization of initiatives, ensuring they are in sync with the company's long-term vision and market positioning.

Measuring the Impact of Corporate Entrepreneurship

Executives often seek to understand how the success of Corporate Entrepreneurship can be effectively measured beyond financial metrics. While ROI is a critical indicator, non-financial metrics such as the number of ideas generated, the conversion rate of ideas to prototypes, and the percentage of revenue from new products, are equally important. According to PwC's Innovation Benchmark, successful innovators not only track financial returns but also emphasize measuring the strategic value of innovation, including customer satisfaction and brand perception.

It is recommended to adopt a balanced scorecard approach, integrating both financial and non-financial KPIs, to provide a comprehensive view of the impact of Corporate Entrepreneurship. This approach allows for a nuanced understanding of how entrepreneurial initiatives contribute to strategic objectives, customer engagement, and the organization’s innovation portfolio.

Ensuring Employee Engagement and Cultural Shift

Creating a culture that supports Corporate Entrepreneurship is a complex challenge that requires careful planning and execution. Employee engagement in innovation is not just about soliciting ideas; it requires building an environment that encourages risk-taking, learning from failure, and collaborative problem-solving. Accenture's research shows that 70% of employees are more likely to stay with a company that has a high-performing innovation culture.

Leadership must actively promote and embody an entrepreneurial mindset. This involves recognizing and rewarding innovative behavior, providing opportunities for skill development, and creating channels for idea sharing and collaboration. Regular innovation challenges, hackathons, and idea incubation workshops can be effective in fostering this culture shift.

Addressing Organizational Resistance to Change

Resistance to change is a natural response within any organization, especially when introducing new processes or structures that disrupt the status quo. To mitigate this resistance, it is essential to communicate the vision and benefits of Corporate Entrepreneurship clearly and frequently. According to a study by McKinsey, clear communication from leadership is one of the top three factors that determine the success of organizational change initiatives.

Change management techniques, including stakeholder analysis, communication planning, and leadership alignment, should be incorporated into the methodology. By engaging key stakeholders early and often, and by demonstrating quick wins from pilot projects, the organization can build momentum and enthusiasm for the change, thus reducing resistance.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Launched 5 new products/services within a year, directly attributed to the Corporate Entrepreneurship initiative.
  • Employee engagement in innovation programs increased by 35%, as measured by participation in innovation challenges and hackathons.
  • Achieved a 15% return on investment for new initiatives, surpassing the initial target of 10%.
  • Reported a 25% improvement in customer satisfaction scores related to new product features and services.
  • Noticed a 40% increase in the number of ideas generated by employees, with a 20% conversion rate of ideas to prototypes.
  • Generated 10% of total revenue from new products/services launched through the Corporate Entrepreneurship program.

The Corporate Entrepreneurship initiative is deemed a success, evidenced by the significant achievements in product innovation, employee engagement, financial returns, and customer satisfaction. The launch of 5 new products/services and the generation of 10% of total revenue from these initiatives underscore the effectiveness of the strategic framework and execution methodology. The increase in employee engagement and the number of ideas generated highlight a positive shift towards an innovative culture. However, the success could have been further enhanced by addressing organizational resistance more effectively and by integrating more robust change management techniques from the outset. Alternative strategies, such as more focused pilot projects or a phased implementation approach, might have mitigated resistance and accelerated the adoption of new processes.

For next steps, it is recommended to scale the Corporate Entrepreneurship framework across all business units to foster a company-wide culture of innovation. Continuing to refine the governance model will ensure that new projects align with strategic goals. Additionally, investing in advanced training programs to equip employees with the necessary skills for innovation and entrepreneurship will sustain momentum. Finally, establishing a more formalized process for tracking and evaluating both financial and non-financial KPIs will provide clearer insights into the program's impact and areas for improvement.


 
David Tang, New York

Strategy & Operations, Digital Transformation, Management Consulting

The development of this case study was overseen by David Tang. David is the CEO and Founder of Flevy. Prior to Flevy, David worked as a management consultant for 8 years, where he served clients in North America, EMEA, and APAC. He graduated from Cornell with a BS in Electrical Engineering and MEng in Management.

This case study is licensed under CC BY 4.0. You're free to share and adapt with attribution. To cite this article, please use:

Source: Innovative Corporate Entrepreneurship Blueprint for Forestry & Paper Products Firm, Flevy Management Insights, David Tang, 2025


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