Why Companies Fail in Adjacent Businesses

Faced with a never-ending list of core business projects, companies often fail to create and launch businesses that generate new growth. ICG boldly expands our client’s business beyond the core tapping their full potential. Our guided approach is unique; it has been built on 35+ adjacent market launches and our combined experience spanning hundreds of person-years. ICG works hand in hand with our clients to identify creative strategies, explore a variety of options, drive informed decisions and guide execution excellence.

Teams lock into a rigidly defined business strategy

New businesses that lock into a rigidly defined business strategy too early rather than use an evidence-based approach are significantly more likely to fail.

Applying core business metrics and funding too early

After launch, companies apply core business metrics and funding models too early thereby increasing the likelihood of failure and large losses.

One-offs don’t deliver sustainable growth 

One adjacent business is not enough to establish a sustained capability. A rigorous methodology and portfolio approach delivers higher returns and more organizational stability.

De-risking the innovative idea increases the failure rate

Operationally driven leaders are programmed to avoid risk by scaling back the innovative business idea. This leads to a loss of value and increases the likelihood of failure