Data Driven Innovation - Answers to corporate innovation

Answers to the challenges facing corporate innovation today. Booking: you@plusandersen.com

Transcript

1. DATA DRIVEN 
 INNOVATION METHODOLOGIES, METRICS, & MANAGEMENT TOOLS FOR PREDICTABLE INNOVATION AN EXECUTIVE OVERVIEW
2. +ANDERSEN 
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3. METHODOLOGIES TEACHABLE & REPEATABLE 1
4. TIME SALES HORIZON 1 HORIZON 2 HORIZON 3 MATURE BUSINESS RAPIDLY GROWING BUSINESS EMERGING BUSINESS FOCUS: OUTPUT: EXECUTING TO DEFEND, EXTEND, AND INCREASE PROFITABILITY OF EXISTING BUSINESSES ANNUAL PLANNING AND FORECASTING; DETAILED PLANS FOR GROWTH THROUGH ADJACENCIES RESOURCING INITIATIVES TO BUILD NEW BUSINESSES BUSINESS BUILDING STRATEGIES: INVESTMENT, BUDGET, DETAILED BUSINESS PLANS FOR NEW VENTURES UNCOVERING OPTIONS FOR FUTURE OPPORTUNITIES AND PLACING BETS ON SELECTED OPTIONS DECISIONS TO EXPLORE; INITIAL PROJECT PLAN, PROJECT MILESTONES SOURCE: BAGHAI, COLEY, WHITE ≠ ≠
5. H1: KNOWN H2: PARTIALLY KNOWN H3: UNKNOWN THE THREE HORIZONS
6. METHODOLOGY FOR HORIZON 1 INNOVATIONS EXECUTING KNOWN KNOWNS
7. PRODUCT MANAGEMENT HORIZON 1 EXTENDS EXISTING BUSINESS USE TRADITIONAL PRODUCT MANAGEMENT FOR HORIZON 1 PROJECTS IDEA SCREEN SECOND SCREEN GO TO DEVELOPMENT GO TO TESTING GO TO LAUNCH G ATE 1 STAGE 1 G ATE 2 STAGE 2 G ATE 3 STAGE 3 G ATE 4 STAGE 4 G ATE 5 STAGE 5 SCOPING BUILD BUSINESS CASE DEVELOPMENT TESTING & VALIDATION LAUNCH PROCESS INNOVATION
8. METHODOLOGIES FOR HORIZON 2 & 3 
 INNOVATIONS SEARCHING FOR THE UNKNOWN
9. METHODOLOGIES BUSINESS MODEL GENERATION CUSTOMER
 DEVELOPMENT AGILE ENGINEERING + + THE LEAN STARTUP HORIZON 2-3 SEARCHES FOR
 DISRUPTIVE
 NEW BUSINESS =
10. PROCESS SCALABLE & REPEATABLE 2
11. THE EVIDENCE-BASED 
 DATA-DRIVEN 
 PROCESS THE LEAN LAUNCHPAD
12. 2. EVIDENCE-BASED PROCESS BUSINESS MODEL GENERATION CUSTOMER
 DEVELOPMENT AGILE ENGINEERING HYPOTHESES EXPERIMENTS DATA METHODOLOGIES (THEORY) + + MENTORSHIP LEAN LAUNCHPAD CURRICULUM (PROCESS)
13. OUTSIDE
 WORK MEETUPS MENTORING Video Lectures
 Written Material
 Customer Interviews Experience-Based Discussions - Insights 
 Additional Lectures
 Accountability
 Feedback, Peer Review During Meetups
 Between Meetups With experienced
 entrepreneurs THE LEAN LAUNCHPAD (LLP)
14. +4.000 TEAMS WORLD WIDE • The Lean Launchpad Curriculum (LLP) • National Science Foundation’s
 Innovation-Corps (iCorps) • +200 Universities World Wide • +40 Accelerators / Incubators • Fortune 500 Corporations
15. IN EUROPE WITH +ANDERSEN LLP @ University of Cologne (One of 4 german elite universities) Global Corporations & MORE… & MORE…
16. TRAINING +300 
 LLP EDUCATORS A YEAR • Lean Launchpad Educators Training & Certifications • Standardised Process & Curriculum • Standardised, Validated Training & Certification • held at Stanford, Berkeley, Columbia University NYC and more 
 on a regular basis • https://venturewell.org/lean-launchpad/
17. The National Science Foundation (NSF) is a United States government agency that supports fundamental research and education in all the non-medical fields of science and engineering. They decide which public scientific research projects will get federal funding for commercialisation in the US. BUDGET: $7B ANNUALLY
18. NSF's iCORPS accelerator program went from a 18% to a +60% funding rate of projects after requiring applicants to take the lean launchpad as a prerequisite for funding.
19. The Lean Launchpad enables you to go faster: 10x the number of initiatives in 1/5 the time compared to traditional innovation - That’s a 50x speedup kind of fast https://steveblank.com/2015/06/26/lean-innovation-management-making-corporate-innovation-work/
20. LLP ALSO USED BY OTHER G.O. https://steveblank.com/category/nsf-national-science-foundation/
21. INNOVATION METRICS 3 A NEW TRANSPARENT KPI
22. INNOVATION KPI
 MANAGEMENT 
 TOOL
23. 3. INNOVATION MGMT TOOLS WEEKLY 
 PROGRESS EXPERIMENT
 SCORECARD DATA, TRAJECTORY EXPERIMENTS,
 READINESS LEVEL + = BUSINESS MODEL GENERATION CUSTOMER
 DEVELOPMENT AGILE ENGINEERING HYPOTHESES EXPERIMENTS DATA METHODOLOGIES EVIDENCE BASED PROCESS + + MENTORSHIP KPI Management Tool
24. NASA/DOD TRL:
 TECHNOLOGY READINESS LEVEL • Formal way to assess technology project maturity • Quantify relative risks • Data driven • Adopted by nasa, dod, faa, esa and so on • Introduced in 1974 by NASA JPL • Also see: http://www.wikiwand.com/en/Technology_readiness_level TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9
25. NASA/DOD TECHNOLOGY READINESS LEVEL 1 & 2 BASIC TECHNOLOGY RESEARCH: • Basic principles observed • Technology concept formulated CONCEPT TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9
26. NASA/DOD TECHNOLOGY READINESS LEVEL 3 & 4 RESEARCH TO PROVE FEASIBILITY: • Experimental proof of concept • Breadboard validation in lab RESEARCH TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 CONCEPT
27. NASA/DOD TECHNOLOGY READINESS LEVEL 5 & 6 DEMO PROTOTYPE: • Breadboard validation outside of building • System demo in real world DEMO TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 RESEARCH CONCEPT
28. NASA/DOD TECHNOLOGY READINESS LEVEL 7, 8 & 9 DEPLOYMENT: • System development • System development in real world DEPLOYMENT TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 CONCEPT RESEARCH DEMO
29. WHAT THIS MEANS FOR AN INNOVATION 
 METRIC INNOVATION READINESS LEVEL
30. INNOVATION READINESS LEVEL • We can do the same for new 
 innovation ventures • Emphasis is on DATA IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9
31. INNOVATION READINESS LEVEL • A formal way to quantify relative risk • Data driven • Analog to nasa/dod
 technology readiness level (TRL) • ADAPTABLE TO YOUR INDIVIDUAL GOALS, urgency, Verticals and risk aversion (i.e. the IRL is a relative, not absolute, scale) IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9
32. INNOVATION READINESS LEVEL 
 1 & 2 HYPOTHESES: • Value propositions summarised • BMC hypotheses articulated HYPOTHESES IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9
33. INNOVATION READINESS LEVEL 
 3 & 4 PROBLEM / SOLUTION FIT: • Problem-solution fit • Low fidelity MVP PROBLEM /
 SOLUTION IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9 HYPOTHESES
34. INNOVATION READINESS LEVEL 
 5 & 6 VALIDATE: • Product / market fit • Right side of Business Model Canvas • Value props, customer segments, 
 channels, customer relationships & 
 revenue sources PRODUCT/
 MARKET IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9 PROBLEM /
 SOLUTION HYPOTHESES
35. INNOVATION READINESS LEVEL 
 7 & 8 VALIDATE: • Left side of business model canvas • Activities, resources, partners & costs VALIDATE LEFT 
 BMC SIDE IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9 PRODUCT/
 MARKET PROBLEM /
 SOLUTION HYPOTHESES
36. INNOVATION READINESS LEVEL 
 9+ METRICS THAT
 MATTER • Sales & revenue metrics • User & customer growth metrics • Engagement metrics • Cohort, funnel, attrition & churn metrics • Etc IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9 PRODUCT/
 MARKET PROBLEM /
 SOLUTION HYPOTHESES VALIDATE LEFT 
 BMC SIDE
37. IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9 INNOVATION READINESS LEVEL Identify and validate metrics that matter Validate value delivery (Left side of BMC) Prototype High-Fidelity MVP Validate Revenue Model (Right side of BMC) Validate Product-Market fit Prototype Low-Fidelity MVP Problem-Solution validation Market size & competitive analysis Complete first-pass of Business Model Canvas (BMC)
38. TRACKED BY A CENTRAL MANAGEMENT TOOL
39. ORGANISATION MAKING IT MANAGEABLE 4
40. 4. ORGANISATION Executive Chair of the Board CEO Chief of Innovation Chief Internal Ambassador
 (Chief Resource Concierge) COO CFO CTO CMO Innovator Innovator Innovator Chief Portfolio Manager Chief VC Chief Risk
 Officer HORIZON 1 SUSTAINING CORE BUSINESS HORIZON 2/3 DISRUPTING CORE BUSINESS Legal Fast Track 24h response, limited risks assumed Corporate Legal
41. INNOVATION ENGINE CONTINUOUS INNOVATION 5
42. 5. THE ENGINE IRL 0-3 IRL 4-6 IRL 9+ IRL 7-8 WEEKS MONTHS G ATE 1 G ATE 2 G ATE 3 G ATE 4 G ATE 5 PROBLEM OR NEED-
 FIT STAGE SOLUTION- FIT STAGE PERPETUAL DAYS PRODUCT- MARKET 
 FIT STAGE COMPANY BUILDING STAGE DISCOVER EXPLOIT VALIDATE EXPLORE CUSTOMER CREATION STAGE PEOPLE- IDEA FIT STAGE MANAGEMENT TOOL, INNOVATION READINESS LEVEL KPI (IRL) + MNGMT SOFTWARE VET TIME & QUALITY RISK & QUANTITY IDEATE DEALFLOW PRE-ACCELERATION ACCELERATION GENERATION EDUCATION SELECTION FINAL DECISION SCALING UP • SPIN IN? • SPIN OUT? • KILL? • EXTEND? CYCLIC RINSE LATHER REPEAT
43. COMBINING IT ALL FOR HORIZON 3 INNOVATIONS A REPEATABLE PROCESS
44. METHODOLOGIES
 PROCESS & MANAGEMENT BUSINESS MODEL ENGINEERING CUSTOMER
 DEVELOPMENT AGILE ENGINEERING HYPOTHESES EXPERIMENTS DATA WEEKLY 
 PROGRESS EXPERIMENT
 SCORECARD DATA, TRAJECTORY EXPERIMENTS,
 READINESS LEVEL METHODOLOGIES EVIDENCE BASED PROCESS DIGITAL MANAGEMENT TOOLS & INNOVATION METRIC (KPI) + + + = MENTORSHIP THE LEAN STARTUP Innovation Readiness Level (IRL) & Digital Management Tool The Lean Launchpad
45. AS PRACTICED BY AND MANY, MANY MORE…
46. WE HELP 
 YOUR COMPANY 
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47. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets
48. PRE-ACCELERATION ACCELERATION GENERATION EDUCATION SELECTION FINAL DECISION SCALING UP DEALFLOW LEARNING JOURNEY THE KEYNOTE KILL YOUR COMPANY INNOVATOR MASTERCLASS INNOVATOR BOOTCAMP LEAN LAUNCHPAD MVP AS 
 A SERVICE INNOVATION OUTPOSTS DEMO DAY PITCHING MASTERCLASS EXPERTS AS A SERVICE MENTORS AS A SERVICE TRAIN THE TRAINER SPINNING OUT +ANDERSEN PROGRAMS AT ALL STAGES CHANGING CULTURE
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