A Diagnostic Analysis of KISTI New Business Development Process for Small and Medium Enterprise

Abstract

I. OVERVIEW 1. INTRODUCTION Identifying and developing new business opportunities are among the strategic priorities of many firms. Firms should renew and update their business portfolio in order to achieve sustainable growth because demand for even the most successful products and services will eventually decline. Competitors may introduce alternative offerings that threaten their market position, shifting customer preferences may reduce demand for existing products, disruptive technologies and innovations may emerge, making the current products less attractive or even irrelevant. Hence it is critical for firms to continuously develop new businesses. We call this process corporate entrepreneurship, i.e., building new businesses inside established firms. It can include starting new lines of business or new product units, setting up new areas of practice, opening offices in new geographies, managing spinoffs or creating new joint ventures—as well as establishing firm-wide processes to ensure the successful development of new businesses.