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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: [email protected]

Vidar Andersen

March 14, 2018
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  1. INNOVATE
    OR DIE
    THE NEW GAME OF GROWTH
    STARTPLATZ

    MARCH 14. 2017

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

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  3. MORE
    VIDARANDERSEN.COM
    VIDAR ANDERSEN
    • STARTUP FOUNDER
    • EDUCATOR
    • INNOVATION ADVISOR
    FOUNDING PRINCIPAL
    +ANDERSEN & ASSOCIATES

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  4. THE 

    OLD VS 

    NEW
    GAME OF GROWTH

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  5. PRODUCT OF
    THE INDUSTRIAL AGE

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  6. ALL ABOUT
    MARKET CAPITALISATION

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  7. DEFENDING
    MARKET POSITION AT ALL COSTS

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  8. CONQUERING
    MARKET SHARE BY ANY MEANS

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  9. AT GLACIAL
    SLOW SPEEDS

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  10. FAILURE
    EQUALS CATASTROPHE

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  11. SPECIALISED
    PROCESSES & PEOPLE

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  12. PREDICTABLE
    ENVIRONMENT

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  13. LIVING IN A
    POST-INDUSTRIAL AGE

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  14. CREATING
    NEW MARKETS

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  15. AND OWNING
    THE NEW MARKETS

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  16. FOREVER
    CONTINUOUSLY

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  17. AT LIGHT SPEED
    FOREVER ACCELERATING

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  18. FAILURE ASSUMED
    PART OF THE PROCESS

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  19. WITH POLYMATHS
    INSTEAD OF SPECIALISED EXPERTS

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  20. UNPREDICTABLE
    ENVIRONMENT

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  21. SHORTER

    LIFE EXPECTANCY FOR CORPORATIONS

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  22. EXPONENTIAL

    TECHNOLOGY DEVELOPMENT

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  23. AUTOMATION

    AFFECTING MOST VERTICALS

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  24. MACHINES

    LEARNING BY THEMSELVES

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  25. YOUR COMPETITION

    NO LONGER PEERS OR NEAR-PEERS
    THE
    AMOUNT OF
    VENTURE
    CAPITAL
    AVAILABLE
    TO
    STARTUPS
    HAVE
    NEVER BEEN
    BIGGER

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  26. 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

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  27. STARTUP VALUATIONS

    RAPIDLY INCREASING

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  28. YOUR COMPANY

    SLOW & RIGID + COMPLIANT

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  29. YOUR NEW COMPETITORS

    FAST & AGILE + BREAKS THE LAW

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  30. "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

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  31. RED PILL
    OR BLUE PILL?

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  32. SEARCH EXECUTION
    EXTEND EXISTING
    OR CREATE NEW
    DISRUPTING CORE
    UNKNOWN UNKNOWNS
    SUSTAINING BUSINESS AS USUAL

    KNOWN UNKNOWNS

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  33. WRONG
    QUESTION

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  34. YOU
    HAVE TO DO
    BOTH

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  35. SEARCH EXECUTION
    IN PARALLEL
    BUSINESS AS USUAL & DISRUPTION
    DISRUPTING CORE EXTENDING BUSINESS AS USUAL

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  36. AMBIDEXTROUS
    DISRUPT OR BE DISRUPTED

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

    someone else will."
    - MARK ZUCKERBERG 

    FOUNDER OF FACEBOOK

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  38. OK

    DONE
    RIGHT?

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

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  40. OPERATIONS
    INNOVATIONS
    NEW KPI & MANAGEMENT TOOLS
    PRODUCT MANAGEMENT & BIZ ADMINISTRATION

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  41. SUSTAINING
    DISRUPTIVE
    OUTSIDE OF DAILY OPERATIONS
    INSIDE OF DAILY OPERATIONS

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  42. MUST BE SEPARATED
    LIVE IN DIFFERENT WORLDS

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  43. WITH GATEWAYS
    BETWEEN THE WORLDS

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  44. 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

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  45. DOING
    THINGS
    THE RIGHT
    WAY IS
    NOT ENOUGH

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  46. “We didn’t do anything wrong,
    but somehow, we lost.”
    STEPHEN ELOP
    CEO NOKIA

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  47. YOU ALSO
    NEED TO
    DO THE 

    RIGHT THINGS

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  48. THE RIGHT
    THINGS
    THE RIGHT
    WAY

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  49. HOW DO 

    WE KNOW

    THE RIGHT
    THINGS?

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  50. NOT BY USING
    OUTDATED 

    TOOLS
    FURTHER COMPLICATIONS

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  51. BCG
    GROWTH MATRIX

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  52. STRATEGY
    MAPS

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  53. WATERFALL
    PROJECT MANAGEMENT

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  54. COMMAND
    LINES

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  55. OUTDATED TOOLS
    • All tools assuming projecting and linearity
    • All tools prohibitive to speed and agility
    • All tools prohibitive to customer centricity

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  56. THE TOOLS THAT WERE ONCE
    SUCCESSFUL FOR EXECUTION 

    HAVE BECOME IMPEDIMENTS 

    THAT ARE ANTITHETICAL TO
    CONTINUOUS INNOVATION

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  57. SO
    WHAT
    TO DO?

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  58. INTRODUCING THE
    THREE HORIZONS

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

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  60. 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
    ≠ ≠

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  61. 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

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  62. HOW TO MAKE IT WORK
    HOW?

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

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  64. METHODOLOGY
    FOR HORIZON 1
    INNOVATION
    EXECUTING KNOWN KNOWNS

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  65. 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

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  66. HORIZON 2 / 3 

    INNOVATIONS
    SEARCHING FOR THE UNKNOWN

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  67. FAIL FAST
    FAIL OFTEN
    LEARN
    ITERATE OR
    PIVOT

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  68. 1. METHODOLOGY
    BUSINESS MODEL
    GENERATION
    CUSTOMER

    DEVELOPMENT
    AGILE
    ENGINEERING
    + +
    THE
    LEAN
    STARTUP HORIZON 3
    SEARCHES FOR

    NEW BUSINESS 

    MODELS THAT
    DISRUPT CURRENT
    CORE BUSINESS
    =

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  69. LEAN METHOD
    HAS COME FULL CIRCLE
    2013
    2011
    THE
    LEAN
    STARTUP
    1940s
    AGILE & KANBAN
    2005
    LEAN INNOVATION
    MANAGEMENT
    2016
    KAIZEN

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  70. 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)

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  71. 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

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  72. 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

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  73. AS PRACTICED BY
    AND MANY, MANY MORE…

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  74. LEAN LAUNCHPAD
    AND ALSO BY GOS

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  75. 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.

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  76. 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.

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  77. 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.

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  78. 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

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  79. 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

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  80. +ANDERSEN 

    & ASSOCIATES
    tomorrow
    today
    PLUSANDERSEN.COM

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  81. We help you

    get ready for
    tomorrow
    today…
    PLUSANDERSEN.COM

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  82. …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

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  83. …achieving a 

    50x speed-up
    of innovation
    the startup 

    way
    PLUSANDERSEN.COM

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  84. THE +A INNOVATION ENGINE
    GENERATE

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  85. MORE
    PLUSANDERSEN.COM
    • Education & Training
    • Programs & Processes
    • Innovation Metrics
    • Management Tools
    • Innovation Outposts
    • Human Assets

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  86. MORE
    PLUSANDERSEN.COM

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  87. MORE
    PLUSANDERSEN.COM

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  88. MORE
    PLUSANDERSEN.COM

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