Company Building Methodology

XL TechGroup does not commercialise IP. Instead, it builds from scratch completely new, market-changing businesses that utilise the best available technology solution to address an identified, significant unmet market need.

Identifying these unmet needs is always the starting point. This allows XL TechGroup to find, in conjunction with its global network of technology partners, the best technology solution for an identified unmet need. This methodology contrasts starkly with the “technology forward” approach of many other companies, whereby a particular technology is promoted, regardless of whether it actually serves a business need or not.

The XL TechGroup methodology is designed to be both self-funding and the foundation for a continuous stream of significant distributions to shareholders.

The systematic process which XL TechGroup pursues when creating businesses has five main steps:

1. Discover	identifying a large, unmet market need via major, multinational Corporate Partners
2. Match	matching the identified unmet market need with a suitable market-changing solution based on technology sourced from Technology Partners
3. Select	rigorously selecting only the most promising combinations of market need and technology solution for company formation
4. Develop	iteratively adapting the selected combination in the marketplace to fine tune the new product and associated business strategies
5. Scale	scaling the new company (once the strategy is fully developed) to commercially exploit the market need

Click each stage for more detail.

In the “Innovator's Dilemma” published in 1997, Harvard Business School's Professor Clayton M. Christensen highlights the challenges that large companies face in attempting to develop disruptive (market-changing) solutions. Professor Christensen demonstrates that large companies, though very good at developing incremental product improvements, are generally unable or unwilling to successfully innovate disruptively, and that true innovation normally comes from early-stage companies.

XL TechGroup has taken Professor Christensen's theory one step further by concluding that smaller companies are the natural vehicles for producing market-changing solutions. The agility of a smaller company combined with the horsepower of a large company produces a combination that is far more effective than either alone. This means that a smaller company like XL TechGroup not only avoids competing directly with large companies, but in fact, becomes their natural partner.

In essence, XL TechGroup's methodology is to collaborate with large companies to discover unmet market needs. Then, XL TechGroup enters into arrangements with, amongst others, a select group of companies, universities and government laboratories to supply market-changing solutions to these needs. The large companies then become the natural “built-in” channel to the market, which facilitates the rapid uptake of the new market-changing solution, thereby reducing market risk.