Innovate or Die - On the new vs the old game of growth

These were the slides for my keynote at West Visions Duisburg, DE on October 18th 2017. Bookings: you@plusandersen.com

Transcript

1. INNOVATE OR DIE ON THE CORPORATE GAME OF GROWTH WEST VISIONS
 OCTOBER 18TH 2017
2. MORE VIDARANDERSEN.COM VIDAR ANDERSEN • STARTUP FOUNDER • EDUCATOR • INNOVATION ADVISOR FOUNDING PRINCIPAL +ANDERSEN & ASSOCIATES
3. LEARN MORE
 PLUSANDERSEN.COM +ANDERSEN 
 & ASSOCIATES INNOVATION & GROWTH THROUGH SCIENCE + ENTREPRENEURSHIP
4. SOME OF THE STUFF I HAVE FOUNDED FROM COMPANIES TO STARTUPS TO CORP TECHNOLOGY BEHIND NDA
5. PLUSANDERSEN.COM getGauss.com
6. SOME OF THE PLACES I HAVE BEEN FEATURED AROUND THE WORLD
8. SOME OF THE CUSTOMERS I’VE WORKED WITH AROUND THE WORLD
10. SOME OF THE INSTITUTIONS I’VE TAUGHT AT AROUND THE WORLD
12. CERTIFIED LLP EDUCATOR @ STANFORD
13. LLP LECTURE QIA UNIVERSITY, IRAN
14. THE 
 OLD VS 
 NEW GAME OF GROWTH
15. THE OLD GAME
16. PRODUCT OF THE INDUSTRIAL AGE
17. ALL ABOUT MARKET CAPITALISATION
18. DEFENDING MARKET POSITION AT ALL COSTS
19. CONQUERING MARKET SHARE BY ANY MEANS
20. AT GLACIAL SLOW SPEEDS
21. COOKIE-CUTTER PROCESSES & PEOPLE
22. PREDICTABLE ENVIRONMENT
23. THE OLD GAME •A product of the industrial age •All about market cap •All about defend and conquer market cap •At relative slow and predictable speed •With replaceable and highly specialised workforce •With well-defined and optimised processes and organisation •A zero sum game with finite growth; The Current pie was all there was •Highly fragile to change and disruption; Assumed growth was finite •Obsolete
24. THE NEW GAME
25. LIVING IN A POST-INDUSTRIAL AGE
26. IT’S ABOUT CREATING NEW MARKETS
28. AND OWNING THE NEW MARKETS
29. AT LIGHT SPEED FOREVER ACCELERATING
30. FOREVER CONTINUOUSLY
31. UNPREDICTABLE ENVIRONMENT
32. SHORTER
 LIFE EXPECTANCY FOR CORPORATIONS
33. EXPONENTIAL
 TECHNOLOGY DEVELOPMENT
34. YOUR COMPETITION
 NO LONGER PEERS OR NEAR-PEERS THE AMOUNT OF VENTURE CAPITAL AVAILABLE TO STARTUPS HAVE NEVER BEEN BIGGER
35. STARTUP VALUATIONS
 RAPIDLY INCREASING
36. YOUR CORPORATION
 SLOW & RIGID + COMPLIANT
37. YOUR NEW COMPETITORS
 FAST & AGILE + BREAKS THE LAW
38. AUTOMATION
 AFFECTING MOST VERTICALS
39. MACHINES
 LEARNING BY THEMSELVES
40. SEARCH EXECUTION IN PARALLEL BUSINESS AS USUAL + DISRUPTION DISRUPTING CORE EXTENDING BUSINESS AS USUAL
41. WITH POLYMATHS +AGILE & ITERATIVE PROCESSES
42. SEPARATED COMPLETELY DIFFERENT WORLDS
43. WITH GATEWAY BETWEEN THE TWO
44. SEARCH EXECUTION DISRUPTION MUTUALLY EXCLUSIVE TO SUSTAINING SUSTAINING DISRUPTING
45. RED PILL OR BLUE PILL?
46. WRONG QUESTION
47. YOU HAVE TO DO BOTH
48. AMBIDEXTROUS DISRUPT OR BE DISRUPTED
49. SHIFT 
 HAPPENS REALITY CHECK
50. REMEMBER THIS GUY?
 NEITHER DOES THE WORLD
51. "In the new world, it is not
 the big fish which eats the small fish, it's the fast fish which eats the slow fish." - KLAUS SCHWAB
 WORLD ECONOMIC FORUM
52. "If you don't create the things that will kill Facebook, 
 someone else will." - MARK ZUCKERBERG 
 FOUNDER OF FACEBOOK
53. VS
54. SUSTAINING DISRUPTIVE OUTSIDE OF DAILY OPERATIONS INSIDE OF DAILY OPERATIONS
55. OPERATIONS INNOVATIONS NEW KPI & MANAGEMENT TOOLS PRODUCT MANAGEMENT & BIZ ADMINISTRATION
56. CERTAIN FAILURE IF WITHIN SAME STRUCTURE SUSTAIN DISRUPT DESTROY CORE BUSINESS MOVE FAST AND BREAK THE RULES PROTECT CORE BUSINESS GO SLOW AND FOLLOW THE RULES HORIZON 1
 DAILY OPERATIONS HORIZON 2/3 
 DISRUPTIVE INNOVATIONS
57. THE NEW GAME •Creation of new markets vs only market cap •And owning the new markets •And continuously creating new markets •With entrepreneurial, polymath, non-cookie cutter people •With adaptive, lean & anti-fragile processes •The search for new business models in parallel to executing business as usual - it’s AND, not either/or (ambidextrous) •With an ever more unpredictable globalised, chaotic and continuously and rapidly disruptive post-industrial future •Assumes infinite growth •A game ideal for entrepreneurial types
58. “We didn’t do anything wrong, but somehow, we lost.” STEPHEN ELOP CEO NOKIA
59. DOING THINGS THE RIGHT WAY IS NOT ENOUGH
60. YOU ALSO NEED TO DO THE 
 RIGHT THINGS
61. THE RIGHT THINGS THE RIGHT WAY
62. SO HOW DO 
 WE INSURE WE ARE DOING THE RIGHT THINGS?
63. OUTDATED 
 TOOLS FURTHER COMPLICATIONS
64. BCG GROWTH MATRIX
65. STRATEGY MAPS
66. WATERFALL PROJECT MANAGEMENT
67. ORGA CHARTS
68. COMMAND LINES
69. OUTDATED TOOLS • Growth Share Matrix • Strategy Maps • Waterfall Project Management (linear) • Organisational Charts • Command Lines • All tools assuming projecting and linearity • All tools prohibitive to speed and agility • All tools prohibitive to customer centricity
70. THE TOOLS THAT WERE ONCE SUCCESSFUL FOR EXECUTION 
 HAVE BECOME IMPEDIMENTS 
 THAT ARE ANTITHETICAL TO CONTINUOUS INNOVATION
71. SO WHAT TO DO?
72. INTRODUCING THE THREE HORIZONS
73. 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 ≠ ≠
74. H1: KNOWN H2: PARTIALLY KNOWN H3: UNKNOWN THE THREE HORIZONS
75. HORIZON 1 - EXECUTING THE CURRENT CORE BUSINESS MODEL TO GENERATE VALUE TODAY HORIZON 2/3 - SEARCHING FOR NEW BUSINESS MODELS TODAY TO GENERATE VALUE TOMORROW
76. WHERE TO DO WHAT? HOW TO MAKE IT WORK
77. HORIZON 1 HORIZON 2/3 OUTSIDE OF DAILY OPERATIONS INSIDE OF DAILY OPERATIONS
78. METHODOLOGY FOR HORIZON 1 INNOVATION EXECUTING KNOWN KNOWNS
79. PRODUCT MANAGEMENT HORIZON 1 EXTENDS EXISTING CORE
 BUSINESS MODEL 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
80. HORIZON 2 / 3 
 INNOVATIONS SEARCHING FOR THE UNKNOWN
81. 1. METHODOLOGY BUSINESS MODEL GENERATION CUSTOMER
 DEVELOPMENT AGILE ENGINEERING + + THE LEAN STARTUP HORIZON 3 SEARCHES FOR
 NEW BUSINESS 
 MODELS THAT DISRUPT CURRENT CORE BUSINESS =
82. LEAN METHOD HAS COME FULL CIRCLE 2013 2011 THE LEAN STARTUP 1940s AGILE & KANBAN 2005 LEAN INNOVATION MANAGEMENT 2016
83. 2. MANAGEMENT KPI IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9 Identify and validate metrics that matter Validate value delivery (Left BMC side) Prototype High-Fidelity MVP Validate Revenue Model (Right BMC side) Validate Product-Market fit Prototype Low-Fidelity MVP Problem-Solution validation Market size & competitive analysis Complete first-pass of business model canvas (BMC) INNOVATION READINESS LEVEL (IRL)
84. TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 BASED ON 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
85. BUSINESS MODEL ENGINEERING CUSTOMER
 DEVELOPMENT AGILE ENGINEERING HYPOTHESES EXPERIMENTS DATA WEEKLY 
 PROGRESS EXPERIMENT
 SCORECARD DATA, TRAJECTORY EXPERIMENTS,
 READINESS LEVEL METHODOLOGIES EVIDENCE BASED PROCESS MANAGEMENT TOOL - INNOVATION METRIC (KPI) + + + = MENTORSHIP 3. PROCESS THE LEAN STARTUP Innovation Readiness Level (IRL) The Lean Launchpad Curriculum
86. AS PRACTICED BY AND MANY, MANY MORE…
87. 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
88. 5. STRUCTURE / ENGINE IRL 0-3 IRL 4-6 IRL 9+ IRL 7-8 5 OR 12 WEEKS 3-9 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 2-5 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) TIME & QUALITY RISK & QUANTITY IDEATION DEALFLOW PRE-ACCELERATION ACCELERATION GENERATION EDUCATION SELECTION FINAL DECISION SCALING UP • SPIN IN? • SPIN OUT? • KILL? • EXTEND? CYCLIC RINSE LATHER REPEAT
89. WE HELP 
 YOUR COMPANY 
 GET READY 
 FOR TOMORROW TODAY PLUSANDERSEN.COM
90. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets
91. PRE-ACCELERATION ACCELERATION GENERATION EDUCATION SELECTION FINAL DECISION SCALING UP DEALFLOW LEARNING JOURNEY LEARNING 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
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