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Lean Launchpad in Corporate Innovation

Lean Launchpad in Corporate Innovation

These were the slides for my Norwegian Lean Startup Circle talk in Oslo, Norway 2018.03.15

Save the dates: June 7th & 8th
The "Innovator Masterclass" is coming to Oslo, Norway

Send an email to [email protected] with the subject
“FUS OSLO” for your 30% early bird personal discount code.

Discount available until end of March 2018 -
Seats are limited, so get yours now.

Vidar Andersen

March 15, 2018
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  1. MORE VIDARANDERSEN.COM VIDAR ANDERSEN • STARTUP FOUNDER • EDUCATOR •

    INNOVATION ADVISOR FOUNDING PRINCIPAL +ANDERSEN & ASSOCIATES
  2. NOW

  3. YOUR COMPETITION
 NO LONGER PEERS OR NEAR-PEERS THE AMOUNT OF

    VENTURE CAPITAL AVAILABLE TO STARTUPS HAVE NEVER BEEN BIGGER
  4. YOU DON’T EVEN NEED VC
 IT DOESN’T MATTER WHERE THE

    AMOUNT OF LOCATION
 & CLASS FREE
 CAPITAL AVAILABLE TO STARTUPS HAVE NEVER BEEN BIGGER
  5. "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
  6. SEARCH EXECUTION EXTEND EXISTING OR CREATE NEW DISRUPTING CORE UNKNOWN

    UNKNOWNS SUSTAINING BUSINESS AS USUAL
 KNOWN UNKNOWNS
  7. "If you don't create the things that will kill Facebook,

    
 someone else will." - MARK ZUCKERBERG 
 FOUNDER OF FACEBOOK
  8. VS

  9. 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
  10. OUTDATED TOOLS • All tools assuming projecting and linearity •

    All tools prohibitive to speed and agility • All tools prohibitive to customer centricity
  11. THE TOOLS THAT WERE ONCE SUCCESSFUL FOR EXECUTION 
 HAVE

    BECOME IMPEDIMENTS 
 THAT ARE ANTITHETICAL TO CONTINUOUS INNOVATION
  12. 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 ≠ ≠
  13. 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
  14. 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
  15. “The electric light did not come from the continuous improvement

    of candles” - OREN HARARI
 PROF, UNIVERSITY OF SF
  16. 1. METHODOLOGY BUSINESS MODEL ENGINEERING CUSTOMER
 DEVELOPMENT AGILE ENGINEERING +

    + THE LEAN STARTUP HORIZON 3 SEARCHES FOR
 NEW BUSINESS 
 MODELS THAT DISRUPT CURRENT CORE BUSINESS =
  17. LEAN METHOD HAS COME FULL CIRCLE 2013 2011 THE LEAN

    STARTUP 1940s AGILE & KANBAN 2005 LEAN INNOVATION MANAGEMENT 2016 KAIZEN
  18. FOUNDER’S PRODUCT VISION BUILD ENTIRE PRODUCT FIND CUSTOMERS FOUNDER’S PRODUCT

    VISION BUILD MVPS ITERATE & PIVOT CUSTOMER NEEDS BUILD MVPS ITERATE & PIVOT 20TH CENTURY TECH STARTUP 21ST CENTURY LEAN STARTUP DESIGN 
 THINKING • Launch-timing driven by Business Plan • Hire Sales Staff Good-Enough Data Launch-timing driven by Customer Validation Hire Sales Staff • Extensive Data • Launch Product • Hire Sales Staff WARNING: NO BUSINESS MODEL FOCUS WHATSOEVER BUSINESS MODEL FOCUS
  19. BUSINESS MODEL ENGINEERING CUSTOMER
 DEVELOPMENT AGILE ENGINEERING HYPOTHESES EXPERIMENTS DATA

    METHODOLOGIES EVIDENCE BASED PROCESS + + MENTORSHIP 2. PROCESS THE LEAN STARTUP The Lean Launchpad
  20. 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) 2011
  21. Feedback is given verbally by peers, mentors and educators and

    is saved at each meetup in writing for posterity by typing the feedback in realtime into a shared document or management system during the meetups.
 Suggested solutions to roadblocks and problems are worked out in the meetup sessions, but with a focus on being as little instructional as possible. It is up to the ventures themselves to drive progress and ask for help. 
 Meetups also allows for educational content to be discussed or questions regarding the methodologies or to receive a custom prepared presentation on a specific topic by the educator. 
 
 In between the meetups, the LLP Educator is available by email and phone or Skype to give feedback and mentoring. THE PEER REVIEW MEETUP
  22. At each meetup, the startups present their progress and findings

    in front of their peers, educator and mentors in a standardised format using a 4 slide (and 4 slides ONLY) presentation. 1. How many customers they talked to and what they learned from it? 2. What they said they would do at the last meetup (5 next steps), what did they do, 
 what did they not do, why, and what did they learn? 3. What changed in the business model since the last meetup, what did they validate or invalidate and what do they base it on,? (Presented using the Business Model Canvas) 4. What are the concrete next 5 steps until the next meetup and what is standing in your way? THE PEER REVIEW FORMAT
  23. TARGET AUDIENCE College or University Students or even Primary School

    & Highschool GOALS • Create more competent startup founders (learning through experience) • Get the right new knowledge to the students before they get taught the old • Avoid students spending a long time (sometimes +6 years) doing the wrong things, building a product nobody needs or wants DURATION
 • 5 Weeks as a part of other curricula • 12 Weeks for credits (1x semester, complete curriculum) LLP FOR STUDENTS
  24. LLP FOR STARTUPS TARGET AUDIENCE Pre-Funding early-stage startups GOALS •

    Create more competent regional startup founders (education through experience) • Validate (or invalidate) the startup idea; iterate, pivot or persevere • Reach a decision on how (or if) to proceed; give up, apply to accelerator, raise funding or bootstrap (self-fund) DURATION
 • 5 Weeks, with meetups in the evening (facilitates having a day-job)
  25. TARGET AUDIENCE Internal (intrapreneurship) H2/H3 corporate innovation ventures / teams

    GOALS • Provide a repeatable support structure for early-stage corp. innovation teams (answers to what and how) • Create more competent corporate intrapreneurs (education through experience) • Avoiding spending too much time or resources on the wrong idea or team, metered funding • Avoiding Innovation Theatre; data-talks, bullshit walks (kills HIPPOs & ZEBRAs) • Reaching a transparent decision on IF and WHEN to commit more resources and time (or not) • Getting results quicker and more frequently (50x speed-up of innovation) 
 DURATION
 • 5 weeks, meetups on work time, either on or offsite • 12 weeks, meetups on work time, either on or offsite • Customised for needs (speed vs risk) LLP FOR CORPORATIONS
  26. TYPICAL SCENARIOS 
 FOR CORPORATE LEAN LAUNCHPAD PROGRAMS • Teams

    have been working on innovation challenges for some time, but with out structure and management wants to bring them to a conclusion 
 (support and decision program for existing teams, one time to clean the slate) • New innovation teams are forming as a result of other efforts, now management needs to provide them with an answer to the question on how to proceed
 (support and decision program for new teams, on a recurring need basis) • The company is currently building out, or already has, a concerted effort, an innovation engine, in place where the Lean Launchpad program is a regular part of the pre-acceleration phase, the validation phase, of internal innovation ventures, metered funding
 (pre-qualifying support and decision program for any team going through the perpetual innovation engine) LLP FOR CORPORATIONS
  27. +20.000 TEAMS WORLD WIDE • Using the Lean Launchpad (LLP)

    • National Science Foundation’s
 Innovation-Corps (iCorps) • +200 Universities, World Wide • +100 Accelerators / Incubators • Several Fortune 500 Corporations
  28. +300 LLP EDUCATORS TRAINED PER 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/
  29. LEAN LAUNCHPAD SCIENTIFIC CASE STUDY The National Science Foundation (NSF)

    is the 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 with an annual budget of 
 $7 Billion
  30. LEAN LAUNCHPAD @ NSF LEAN LAUNCHPAD VALIDATED The NSF had

    a challenge. Most applicants their accelerator program iCORPS were getting were not fundable by their standards of readiness. The NSF is as science-oriented as one can get, so they wanted to experiment with improving their fundability rate by providing the applicants with a fitness program before they could apply and get the data, the scientific facts, on how these applicants would perform compared to the baseline of normal applicants not taking the fitness program to see if there would be a difference, if at all. So the NSF started requiring applicants to take the Lean Launchpad as a prerequisite, as a fitness program, before applying to their NSF iCORPS accelerator.
  31. LEAN LAUNCHPAD WORKS THE SCIENCE IS IN And when the

    data came in, they found that the previous fundability rate of 18% of all applicants without the Lean Launchpad improved to a massive +60% of fundability of the teams that had taken the Lean Launchpad as a pre- accelerator readiness program. The science is in; By using the Lean Launchpad as a pre-accelerator program, The National Science Foundation managed to improve their dealflow with significant 44% hike in fundability.
  32. To cut a long story short, the US Government adopted

    the class to commercialise all science in the US. It is now called the I-Corps, or Innovation Corps. Over 15,000 teams of the US’ best scientists and engineers have taken the class. It is a law now in the United States – they made it a mandated class.
  33. 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. MANAGEMENT KPI THE LEAN STARTUP Innovation Readiness Level (IRL) The Lean Launchpad Curriculum
  34. 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 TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9
  35. NASA/DOD TECHNOLOGY READINESS LEVEL 1 & 2 BASIC TECHNOLOGY RESEARCH:

    • Basic principles observed • Technology concept formulated TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 CONCEPT
  36. RESEARCH TO PROVE FEASIBILITY: • Experimental proof of concept •

    Breadboard validation in lab RESEARCH CONCEPT TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 NASA/DOD TECHNOLOGY READINESS LEVEL 3 & 4
  37. DEMO PROTOTYPE: • Breadboard validation 
 outside of building •

    System demo in real world DEMO RESEARCH CONCEPT TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 NASA/DOD TECHNOLOGY READINESS LEVEL 5 & 6
  38. DEPLOYMENT: • System development • System development in real world

    DEPLOYED CONCEPT RESEARCH DEMO TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 NASA/DOD TECHNOLOGY READINESS LEVEL 7,8 & 9+
  39. 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
  40. 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, etc. 
 (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
  41. 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
  42. INNOVATION READINESS LEVEL 
 3 & 4 PROBLEM / SOLUTION

    FIT: • Problem-solution fit • Low fidelity MVP PROBLEM /
 SOLUTION HYPOTHESES IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9
  43. 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 PROBLEM /
 SOLUTION HYPOTHESES IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9
  44. INNOVATION READINESS LEVEL 
 7 & 8 VALIDATE: • Left

    side of business model canvas • Activities, resources, partners & costs VALIDATE LEFT 
 BMC SIDE PRODUCT/
 MARKET PROBLEM /
 SOLUTION HYPOTHESES IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9
  45. INNOVATION READINESS LEVEL 
 9+ METRICS THAT
 MATTER • Sales

    & revenue metrics • User & customer growth metrics • Engagement metrics • Cohort, funnel, attrition & churn metrics • Etc PRODUCT/
 MARKET PROBLEM /
 SOLUTION HYPOTHESES VALIDATE LEFT 
 BMC SIDE IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9
  46. 3. MANAGEMENT KPI IRL 9+ Identify and validate metrics that

    matter IRL 8 Validate value delivery (Left BMC side) IRL 7 Prototype High-Fidelity MVP IRL 6 Validate Revenue Model (Right BMC side) IRL 5 Validate Product-Market fit IRL 4 Prototype Low-Fidelity MVP IRL 3 Problem-Solution validation IRL 2 Market size & competitive analysis IRL 1 Complete first-pass of business model canvas (BMC) THE INNOVATION READINESS LEVEL (IRL) IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9
  47. 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. MANAGEMENT KPI THE LEAN STARTUP Innovation Readiness Level (IRL) The Lean Launchpad Curriculum
  48. 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 Growth Boards
  49. 5. STRUCTURE - 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 CUSTOMER CREATION STAGE PEOPLE- IDEA FIT STAGE MANAGEMENT TOOL + INNOVATION READINESS LEVEL KPI (IRL) YEARS TIME & QUALITY RISK & QUANTITY DEALFLOW • SPIN IN? • SPIN OUT? • KILL? • EXTEND? CYCLIC RINSE LATHER REPEAT PRE-ACCELERATION ACCELERATION GENERATION EDUCATION SELECTION FINAL DECISION SCALING UP DISCOVER EXPLOIT VALIDATE EXPLORE VET GENERATE
  50. 5. STRUCTURE - 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 CUSTOMER CREATION STAGE PEOPLE- IDEA FIT STAGE MANAGEMENT TOOL + INNOVATION READINESS LEVEL KPI (IRL) YEARS TIME & QUALITY RISK & QUANTITY DEALFLOW • SPIN IN? • SPIN OUT? • KILL? • EXTEND? CYCLIC RINSE LATHER REPEAT ACCELERATION EDUCATION FINAL DECISION SCALING UP DISCOVER EXPLOIT VALIDATE EXPLORE VET GENERATE THE LEAN LAUNCHPAD PROGRAM PRE-ACCELERATION
  51. …by providing actionable answers to the questions of how to

    attract, motivate, support, and retain innovative people and how to generate, discover, explore, and exploit new business models through innovation… PLUSANDERSEN.COM
  52. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes

    • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets
  53. INNOVATOR MASTERCLASS OSLO JUNE 7 + 8 SAVE THE DATES

    Send an email to [email protected] 
 with the subject “FUS OSLO” for a 30% early bird DISCOUNT
 AVAILABLE UNTIL END OF MARCH 2018 - SEATS LIMITED