Develop - iteratively adapting the selected combination in the marketplace to fine-tune the new product and associated business strategies
The fourth step is the process by which XL TechGroup begins to develop the NewCo. An XL TechGroup internal team is organized to lead the NewCo through the development process. Because the introduction of a market-changing solution ultimately changes the market itself, the strategic development is iterative. The objective is to refine and adapt rapidly and inexpensively until the strategy stabilises. Accordingly, XL TechGroup manages this process with internal XL TechGroup staff who are experienced in successive adaptations to a changing market.
XL TechGroup solely funds each NewCo to enable maximum flexibility to adapt to changing market dynamics. The NewCo is staffed with an interim/serial CEO and senior managers from within XL TechGroup. Engineering and sales/marketing professionals with relevant industry expertise are also brought in at this stage, as necessary, to take up key roles in the business in order to facilitate company development.
This methodology allows the NewCo to benefit from having staff who are highly experienced in the process of both creating new companies and nurturing them through the start-up phase. It is not until the NewCo's direction and product strategy have matured after a number of iterations, that the first members of a permanent senior management team are brought in to lead the NewCo into the final stage.
Reducing Management Risk