Provide feedback to the following reading:

Developing a new product and taking it to market comes with its own set of challenges. Obtaining proper funding, finding suppliers, hiring employees, building, buying or leasing manufacturing and office space Many of these obstacles can be more easily overcome when the product is coming from inside an existing company. Credit has already been established with lenders and investors and suppliers have already been vetted. Shifting around employees and manufacturing and office space or expanding can even be less complicated. An internal venture does come with a separate set of challenges such as those mentioned by Jack such as ensuring the right people are put on the new project and resources are available. Another problem he mentions is employees remaining in the old product lines or business many recent the new venture and those works on it because people and resources are being directed away from them.

I think there are some questions a company needs to consider when deciding to go with an internal or free standing venture.

Does the new product meet the company's quality standards?

Is it a compliment to current product lines or completely separate?

Is the product intended for current customers or a new market segment?

How quickly can the product reach customers if it is created as a free-standing venture vs. an internal product line?

Would current customers be negatively impacted by a disruption in the status quo if one path is taken over another?

I believe overall the benefits out weight the downsides of bringing in a new product from inside a company. I think overcoming the challenges with established people, funds; practices and such make it easier as well. New and free-standing I think would come with more risk so I guess the big question is “how much risk are you willing to accept?”