But, he adds, "If you want to make a real step change you have to give the power to someone to operate outside the paradigm of the organisation, you have to give them support from the board down, give them resources."
"Let them actually go and behave themselves as a start up because that is who you are competing with in that arena," says McDonald, citing how Telecom (now Spark) did this when it created Telecom Ventures (now Spark Ventures), which focused on building digital businesses.
McDonald worked in that division before joining App La Carte, a software as a service provider of mobile apps, which was renamed Puttiapps this week.
"You have to be able to give the freedom to your business whether it is standalone company or a business unit inside your organisation, to behave like a startup, to think about things differently, and to not use your existing technology.
"Be really be clear about what it is you want them to achieve at a macro level," he says. "Point them to the direction of your key assets as an organisation, and give them a mandate to go and do something different with that."
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