Starting a new software business in an established firm

The purpose of this research is to provide an academic study to facilitate and improve the establishment and running of Expression Business Unit in Microsoft's Developer Division. This business unit was created in 2005 to help Microsoft expand into the computer-aided designer market. New business creation within the existing business is commonly called corporate entrepreneurship. This thesis will review the literatures in this area and use the Expression business as a case study.This thesis documents the efforts of a company starting a new business based on the research in business, organization and product. The principle study areas of this project are (1) How to collect market data, conduct market research and competitive strategy analysis for a new business (2) Build a business plan for a corporate venture (3) How to organize an effective corporate venture (4) The similarities and differences between start a start-up company and start a new venture in an established firm.Most of materials used in this thesis are from the author's personal involvement, internal Microsoft presentations, the author's interviews and meetings with key stakeholders involved in this new Business Unit. This project uses academic research to identify the existing theories and practices on corporate venturing. Through the research, this project also details the problems raised in the planning phase.In the end, the author will propose improvements to the current business planning. The improvement is built on top of the existing business and product planning framework, with the intents to enhance Expression venture's product and market areas. Also several areas requires further study have been outlined.