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The Old vs The New Game of Corporate Growth - 2018 Best Practice Digitalisierung @ STARTPLATZ DUS Edition

The Old vs The New Game of Corporate Growth - 2018 Best Practice Digitalisierung @ STARTPLATZ DUS Edition

These were my slides for the keynote talk at Best Practice Digitalisierung @ STARTPLATZ in Düsseldorf 2018.03.14 For further inquiries: you@plusandersen.com

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Vidar Andersen

March 14, 2018
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Transcript

  1. INNOVATE OR DIE THE NEW GAME OF GROWTH STARTPLATZ
 MARCH

    14. 2017
  2. http://www.startplatz.de/event/best-practice-digitalisierung/

  3. MORE VIDARANDERSEN.COM VIDAR ANDERSEN • STARTUP FOUNDER • EDUCATOR •

    INNOVATION ADVISOR FOUNDING PRINCIPAL +ANDERSEN & ASSOCIATES
  4. THE 
 OLD VS 
 NEW GAME OF GROWTH

  5. THE OLD

  6. PRODUCT OF THE INDUSTRIAL AGE

  7. ALL ABOUT MARKET CAPITALISATION

  8. DEFENDING MARKET POSITION AT ALL COSTS

  9. CONQUERING MARKET SHARE BY ANY MEANS

  10. AT GLACIAL SLOW SPEEDS

  11. FAILURE EQUALS CATASTROPHE

  12. SPECIALISED PROCESSES & PEOPLE

  13. PREDICTABLE ENVIRONMENT

  14. THE NEW

  15. LIVING IN A POST-INDUSTRIAL AGE

  16. CREATING NEW MARKETS

  17. None
  18. AND OWNING THE NEW MARKETS

  19. FOREVER CONTINUOUSLY

  20. AT LIGHT SPEED FOREVER ACCELERATING

  21. FAILURE ASSUMED PART OF THE PROCESS

  22. WITH POLYMATHS INSTEAD OF SPECIALISED EXPERTS

  23. UNPREDICTABLE ENVIRONMENT

  24. WHY?

  25. SHORTER
 LIFE EXPECTANCY FOR CORPORATIONS

  26. EXPONENTIAL
 TECHNOLOGY DEVELOPMENT

  27. THEN

  28. NOW

  29. AUTOMATION
 AFFECTING MOST VERTICALS

  30. MACHINES
 LEARNING BY THEMSELVES

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

    VENTURE CAPITAL AVAILABLE TO STARTUPS HAVE NEVER BEEN BIGGER
  32. 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
  33. STARTUP VALUATIONS
 RAPIDLY INCREASING

  34. YOUR COMPANY
 SLOW & RIGID + COMPLIANT

  35. YOUR NEW COMPETITORS
 FAST & AGILE + BREAKS THE LAW

  36. "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
  37. SO…

  38. RED PILL OR BLUE PILL?

  39. SEARCH EXECUTION EXTEND EXISTING OR CREATE NEW DISRUPTING CORE UNKNOWN

    UNKNOWNS SUSTAINING BUSINESS AS USUAL
 KNOWN UNKNOWNS
  40. WRONG QUESTION

  41. YOU HAVE TO DO BOTH

  42. SEARCH EXECUTION IN PARALLEL BUSINESS AS USUAL & DISRUPTION DISRUPTING

    CORE EXTENDING BUSINESS AS USUAL
  43. AMBIDEXTROUS DISRUPT OR BE DISRUPTED

  44. "If you don't create the things that will kill Facebook,

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

  46. OK
 DONE RIGHT?

  47. NOT SO FAST

  48. SEARCH EXECUTION DISRUPTION IS MUTUALLY EXCLUSIVE TO SUSTAINING SUSTAINING DISRUPTING

  49. OPERATIONS INNOVATIONS NEW KPI & MANAGEMENT TOOLS PRODUCT MANAGEMENT &

    BIZ ADMINISTRATION
  50. SUSTAINING DISRUPTIVE OUTSIDE OF DAILY OPERATIONS INSIDE OF DAILY OPERATIONS

  51. MUST BE SEPARATED LIVE IN DIFFERENT WORLDS

  52. WITH GATEWAYS BETWEEN THE WORLDS

  53. 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
  54. AND…

  55. DOING THINGS THE RIGHT WAY IS NOT ENOUGH

  56. “We didn’t do anything wrong, but somehow, we lost.” STEPHEN

    ELOP CEO NOKIA
  57. YOU ALSO NEED TO DO THE 
 RIGHT THINGS

  58. THE RIGHT THINGS THE RIGHT WAY

  59. HOW DO 
 WE KNOW
 THE RIGHT THINGS?

  60. NOT BY USING OUTDATED 
 TOOLS FURTHER COMPLICATIONS

  61. BCG GROWTH MATRIX

  62. STRATEGY MAPS

  63. WATERFALL PROJECT MANAGEMENT

  64. ORGA CHARTS

  65. COMMAND LINES

  66. OUTDATED TOOLS • All tools assuming projecting and linearity •

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

    BECOME IMPEDIMENTS 
 THAT ARE ANTITHETICAL TO CONTINUOUS INNOVATION
  68. SO WHAT TO DO?

  69. INTRODUCING THE THREE HORIZONS

  70. H1: KNOWN H2: PARTIALLY KNOWN H3: UNKNOWN HORIZONS

  71. 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 ≠ ≠
  72. 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
  73. HOW TO MAKE IT WORK HOW?

  74. HORIZON 1 HORIZON 2/3 OUTSIDE OF DAILY OPERATIONS INSIDE OF

    DAILY OPERATIONS
  75. METHODOLOGY FOR HORIZON 1 INNOVATION EXECUTING KNOWN KNOWNS

  76. 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
  77. HORIZON 2 / 3 
 INNOVATIONS SEARCHING FOR THE UNKNOWN

  78. FAIL FAST FAIL OFTEN LEARN ITERATE OR PIVOT

  79. 1. METHODOLOGY BUSINESS MODEL GENERATION CUSTOMER
 DEVELOPMENT AGILE ENGINEERING +

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

    STARTUP 1940s AGILE & KANBAN 2005 LEAN INNOVATION MANAGEMENT 2016 KAIZEN
  81. 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) THE INNOVATION READINESS LEVEL (IRL)
  82. 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
  83. 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
  84. AS PRACTICED BY AND MANY, MANY MORE…

  85. LEAN LAUNCHPAD AND ALSO BY GOS

  86. 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.
  87. LEAN LAUNCHPAD 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.
  88. LEAN LAUNCHPAD 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 fitness 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 and has now been
 turned into law.
  89. 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
  90. 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 IDEATE
  91. +ANDERSEN 
 & ASSOCIATES tomorrow today PLUSANDERSEN.COM

  92. We help you
 get ready for tomorrow today… PLUSANDERSEN.COM

  93. …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
  94. …achieving a 
 50x speed-up of innovation the startup 


    way PLUSANDERSEN.COM
  95. None
  96. THE +A INNOVATION ENGINE GENERATE

  97. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes

    • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets
  98. MORE PLUSANDERSEN.COM

  99. MORE PLUSANDERSEN.COM

  100. MORE PLUSANDERSEN.COM