Problem

The Chief Medical Officer for PepsiCo sought a new scientific intrapreneurship program to identify, validate, and build new business ventures. Successful initiatives would feature breakthrough technologies, evidence of consumer demand, and investable business models.

PSG Approach

We co-created “Pitch Days,” a 10-month startup platform. PSG managed daily meetings with 30+ cross-functional staff members across global pitch teams. We led tests to gather market evidence; provided strong external viewpoints to critical decisions; and developed competitive differentiation, go-to-market strategies, and business models.

Result

Three internal startups pitched successfully to the COO, CMO, and other C-suite leaders. The pitches earned an average of +$850,000 each in initial funding. The new businesses we launched are forecasted to deliver +$415 million incremental revenue over the next five years.

Problem

Strategy executives at a leading global apparel company sought to create a corporate venture capital fund. They wanted a separate investment vehicle to back internal and external innovations around the unmet needs of existing and future consumers.

PSG Approach

We led a six-month process to structure the entity, form an investment thesis, and persuade key stakeholders. We built decision trees around alternative opportunity spaces and modeled the financials of the anticipated portfolio to enable critical decisions. Our work helped settle difficult questions related to governance, staff, and operations.

Result

Presentations and packages of prepared materials enabled positive discussions with the CEO and Board. A +$100 million fund was approved. Our partner then launched an internal incubator attracting executive sponsorship and warm relationships with internal and external founders.

Partner Problem

“We found a scientific breakthrough that could open new markets for us. Internal business leaders are supportive but aren’t sure what the new venture will look like from just seeing the technology. How do we package this up in a way that’s easily understood for our leaders to justify the investment?” — R&D Executive

Our Approach

PSG performs due diligence to understand customer problems, potential solutions, and business model alternatives. This creates a shared vision and reveals strategic gaps.

We then build a unique financial model to quantify key drivers, capital requirements, and potential returns and risks. Unlike traditional enterprise models, which bias toward existing strategies, we start from scratch to promote fresh thinking and then build execution plans.

We create a business plan and presentation collaboratively, and PSG coaches how to narrate the opportunity persuasively to key decision-makers.

Problem

Leaders of an innovation lab wanted an expert workshop to upskill staff on business model development. They sought engaging instruction and content that provided stimulating concepts, proven techniques, and practical execution guidance.

PSG Approach

We met with leaders of the innovation lab to understand skill gaps in their intrapreneurial teams. PSG scoped the support needed to succeed and the gaps in their experiences holding them back. We then crafted a workshop connected to recent industry trends and critical, upcoming funding meetings with enterprise leaders.

Result

PSG delivered a five-hour training on “Business Model Design & Validation.” This workshop tied the fundamentals of financial analysis to competitive differentiation, business model innovation, and upcoming milestones. Attendees lauded the “math skills, humor, and down-to-earth optimism” of the day.

Problem

“Most of our strategy and finance people size a market based on what’s already out there. But we know with new technology, we’re going to be pulling from new spaces, not just what we’re used to. How do we size the potential for what this could be, acknowledging that solutions exist today outside our current category?” — Marketing Executive

PSG Approach

Typical market sizing in enterprises is anchored to near-term business needs. This is the Total Addressable Market (or TAM) approach. While common and useful, it has drawbacks.

We developed the Total Addressable Problem (TAP) approach to improve this for disruptive markets. This method brings a fresh, necessary shift in perspective.

We understand and estimate how big a future market could be by addressing unserved customers or consumer problems. We then craft solutions and business models for human issues rather than finding solutions for a business problem.

Key questions we explore: Who serves this problem today? How well? Is now the right time to address it? How might we collaborate? How big could the market be for serving this problem? What would the economic structure of competition look like?