Beta Golf Case Solution

1. Why does Beta Group exist?

In 1983, Zider founded the Beta group. The purpose behind the exitance is to apply and develop a systematic approach toward innovation. Zider has worked for Boston Consulting Group (BCG), and he realized that large companies don't focus on much of innovations, and he realized that they are a lot of industries that need attention in terms of R&D and investment. Zider termed this the "innovation gap ."Most companies are more focused on managing their employees and resources. They are not as focused on innovation as they should be. Zider also observed the usually venture capitalists were rarely funding research and development projects, and because of this, they have ignored many industries that require a significant amount of investment in terms of R&D. Currently, VCs are investing in ideas with low risk in terms of technology and high market growth and usually, the technology development occurs before the VC enters in a project. Beta Group was founded to foster a systematic approach that, according to Zider, is "Business Engineering ."Through rigorous market analysis, the development of a concept is referred to as business engineering. Zider wanted to come up with something which not only could develop the concepts and ideas but could also test and implement them. The idea behind the Beta group is not just to develop venture capital but to help new ideas with implementation. The idea is to help and nurture new ideas, make business plans according to the idea, look for key operating officers who are capable of doing the job, manage finances and actually prepare small companies for operation. 

To establish a Beta group, Zider recruited one of his partners from BCG and also raised $300,000 from BCG and also a donation of $1.5 million. For BCG, it's a great opportunity to receive equity on Beta's projects. The beta group came into existence because of these multiple reasons, which are mentioned above.  

2. What economic function does it serve?

Beta Group's main function is to help small companies to implement their ideas. The company helps startups with marketing plans, finding the right resources, and managing their financials. The beta group manages everything that can help the company to come into existence. The company realized that VCs usually rarely invest in R&D, and because of this, many industries are being ignored, and these industries seem to have a lot of potentials. The beta group identified this gap in the market, and their purpose is to help companies with R&D. Also, the Beta group has identified that VCs are investing in only those companies that have low risk in terms of technology, and they enter into the project much later, they enter when the technology development has been done already. Beta Group has helped small companies from the beginning since the idea was generated. 

The beta group is an investment process that not only helps the companies to come up with innovative ideas but also, they help them with testing that idea and implementing the idea. Beta group’s concept is to help small companies with R&D. Zider’s approach is to help startups in a systematic way, and he termed this approach "Business Engineering" the company is also focusing on increasing the profitability of an investment, ensuring that investment has been made in the right business idea and also Beta group works towards the minimization of risk associated with any business idea. The operating operations of Beta group are different, and they distinguish the company’s investment strategy. The company is coming up with a new concept, and this will help the overall economy also. Also, to run the company smoothly, the company has enough money. They have received an investment of $300,000, and also, they have received a donation of $1.5 million. 

3. What is the business model for Beta? What does this tell us about translating innovation into value?