6New Business Development – Recognizing and Establishing New Business Opportunities

Daniel Witthaut1 and Stephan von Delft2

1 Evonik Industries AG, Corporate Innovation Strategy

2 University of Glasgow, Adam Smith Business School

I have missed more than a thousand shots in my career. I have lost almost three hundred games. Twenty‐six times I have been trusted to take the game‐winning shot and missed. I have failed over and over again in my life. And that is why I succeed.

Michael Jordan, former basketball player, entrepreneur, and chairman of the Charlotte Hornets

The development of a new business is an exciting entrepreneurial task. This chapter describes a model that has been proven in the chemical industry for how to recognize new business opportunities and how to develop them into growing, profitable businesses. The authors believe that it is not only the money spent on innovation that is critical for the success of one’s actions but a well‐structured process that gives guidance on the one side but leaves enough flexibility for creativity and entrepreneurship on the other. As we will show later, new business development in the chemical industry is a process that takes several years, often has a high rate of failure and typically requires a substantial amount of resources (e.g. cash, R&D personnel). Larger corporations therefore seize most new business opportunities in the chemical industry. In this chapter we will hence focus on how established chemical companies recognize ...

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