A Study of Innovation Management in New Business Creation through Activation of Discontinuous Innovation

As explained in C.R. Christensen\´s paper, "The Innovator\´s Dilemma", it has recently come to attention that, in the large enterprises that lead the Japanese economy, new business cannot be created with ease through discontinuous innovation due to their unwillingness to depart from their continuous innovation management style. Some large enterprises, therefore, are willing to implement business creation that may incur risk, through methods such as developing Carve-Outs activities, LLCs (Limited Liability Companies), LLPs (Limited Liability Partnerships), venture start-ups, etc. These methods are implemented separately from their regular businesses. On the other hand, there is a move towards new business creation being implemented through practices such as mergers and acquisitions. However, issues related to knowledge transfer or IP (intellectual property) are involved in implementing these operations, and so we cannot claim that new business can be created merely by executing the practices mentioned above. We have studied several cases in pursuit of new and innovative management, since we believe it necessary to identify methods that are complementary to the above ones. In this paper, as management systems that foster the setting up of new businesses while continuing to engage in our principal businesses, we propose, describe, and verify several management systems designed to generate synergy effects within the management system and respond to the need for continuous innovation, and that are able to respond to discontinuous innovation and the need to move into novel businesses areas