From the classroom to social transformation:  thanks to the  spin-off,  ideas from academia such as Instagram, WhatsApp, YouTube and Netflix went from being shelf projects at Stanford University to forms of communication and entertainment that changed the lives of millions of people .

From startups to  spin-offs :  unlike  startups  that are born from innovative ideas,  spin-offs  are created within a company, academic center or research institute that has its intellectual property rights protected.

From paper to action:  to increase the opportunities for these ventures and regulate aspects such as the delivery of incentives for the exploitation of intellectual creations, Law 1837 of 2017 was created in Colombia, which defines some categories and favors the inclusion of employees and public institutions in its constitution. “They are also an opportunity for companies to create, find different utility models and identify a differential value in intellectual property, the opportunity to renew and consolidate an innovative organizational culture,” explains Gustavo Buitrago Hurtado, National Director of Extension and Intellectual Property from the National University of Colombia.

From the idea to the business solution:  for  Spin-offs  to be viable, the relevance, feasibility and sustainable projection in the short, medium and long term must be considered. And then other aspects such as commercial survival and profit sharing that encourage the establishment of new R&D funds. Intellectual property rights, for their part, must be considered from the outset because they are part of the business model. “Each case is specific and must be resolved with regard to the product or service, the relationship between the partners and the investment during the planning and execution of the project,” says Adriana García, director of Innovation at Eafit University.

From investment to business benefits:  What do companies gain from  spin-offs ?:

Define the set of unique capabilities of the company: that is, business skills that are in line with the way of doing things, with early challenges, with success stories. Tools that are not easily available and have a lot to do with day-to-day life and very little to do with having a great human team, good assets, a robust portfolio, cutting-edge technology and other elements that can be contracted, bought, incorporated and that are on the market. For example, the ability to make operations profitable, develop customized products in a short time or at a very low cost, leadership in a niche. “There must be between three and six engines that allow the company to reliably and consistently deliver a specific and relevant result in a market,” explains Óscar Prada, Strategy and Consulting Leader at Price Waterhouse Coopers.

Establish a way of playing in the market:  it is the way in which value is going to be generated for customers and for the sector in which the company operates. There are standardized ways to do it, the most common are being a  Category Leader , like Coca-Cola, Intel, General Electric, which have the largest market share in their category; Aggregator , such as Amazon or Apple, that bring together multiple providers into a single experience; Consolidator , such as Cementos Argos and Cisco Systems, that dominate an industry or a market through acquisitions; Player of Reputation , such as Natura, Johnson and Johnson and Bayer, which positioned themselves as reliable suppliers; Low cost, such as Ikea, Ryanair, which offer the cheapest prices with a quality comparable to that of the market; Experience provider , such as Lego and Starbucks that are strong in creating experiences and are viable in all price segments; among other ways such as being  a multi-platform Provider, Solver, Risk Absorber, Challenger, Follower or Niche Specialist,  among others.

Create an offer of products and services with focus and value:  part of the hypothesis that to conquer a market you have to earn a place and be the best doing what really matters to customers. Therefore, products and services must reveal strategy and demonstrate capabilities. The portfolio must be aligned with the strategy and not the other way around. For this reason, the Megas are increasingly relevant to the vision, because they allow defining a clear objective and measuring the strategy based on the generation of income.

Make decisions based on challenges:  make acquisitions, modify the portfolio, divest, integrate production units, etc.

Align costs and investments:  make budgets with a zero base, not with a rear view mirror. Cut expenses where it is due and invest in the new challenges: people who support the challenges, development of potentials, technology, process improvements as planned.

Unify the culture:  The people and atmosphere in the halls of the company must reflect the strategy. For that to happen, you must have where you are going, why, with what tools, with what challenges per position and evaluate and make decisions on those definitions.

Refocus talent:  Hire and train people to power new processes.