Alignment of external corporate venturing activities for the digital transformation

The effects of rapid digital transformation are causing a disruption in established business models and value chains, resulting in multi-dimensional and unavoidable change. Many established companies struggle to adapt because they lack the skills, processes, and structures needed to transform effectively and quickly. While leading technology companies excel at leveraging startup acquisitions, investments, and collaborations, most manufacturing companies fall short in utilizing external corporate venturing in an effective manner. A key challenge lies in the identification of the objectives which can be addressed through external corporate venturing and the determination of the respectively appropriate types of venture. In this paper, a method that enables manufacturing companies to identify and align the appropriate types of external corporate venturing based on their operationalized digital transformation objectives is presented. The overarching goal is to evaluate different options for action and to create guidelines for strategic alignment.