Tart-up or Start up? Two innovation strategies for established companies

When it comes to innovation, start-ups and established companies have different approaches. Start-ups are more agile and thrive on disruption, while established companies tend to stick to the industry status quo. Start-ups have a tough time accessing funding, while established companies have a cash flow from their current business, assets or goodwill which make raising money easier. Start-ups also have fewer decision-makers, while established players have structured decision-making norms. Start-ups focus on launching a new business and scaling it up, while established companies have to run a business as well as deliver innovation. Established companies can choose between two innovation strategies – tart-up and start-up. Tart-up, or continuous improvement, focuses on small value-adding changes that come from all stakeholders. Start-up, or radical innovation, calls for creating a new start with new skills and entrepreneurial mindsets, through organic growth or acquisitions.