Point number three is, even if you decide to create a separate unit, you still have to think about what exactly do you separate? And what do you want to keep in common with the core? Should the own unit have its own marketing his own people its own separate culture? Or are there still things that could potentially be shared with the core? And in particular, want to highlight the following four things? Should the new unit have the same name as the core business or not?

Secondly, should the separate unit have its own value chain activities? Or should some of those activities be shared with the core business? Thirdly, suti separate unit have its own organizational environment, its own incentives, its own people, its own culture, its own structures, or should these some of those be shared with the core business? And lastly, should the separate unit be wholly owned by the core business or should a portion of the equity be given to the new management of the new entity? And again, there are no correct answers. But I want you to think about these questions.

And you need to think about them to come up with your ideas that are right for your particular situation. The fourth point I wanted to make is that separation does not mean isolation. You still need to think about synergies between the core and the unit and seek to exploit them. We often talk about the advantage to the startup have narrow, nimble, they're agile, they're quick to move. But remember, you have advantages as well. Your advantages over over any startup is that you have core competencies, things that you are excel at.

And you should not ignore those, but actually exploit them to make most of these and help the innovation grow. And there are many different strategies that can be followed to explore the synergies between the core and the new unit to give the unit, the upper hand versus a new startup. One example is to have a common General Manager. Another example is to have separate cultures but have common shared values. To united to some companies put common incentives in place or transfer people back and forth between the core business and the new unit. We call these things integrated mechanism.

And the idea is, is that you have to think, again for your business, what is the most effective way to exploit those synergies?