The Old vs The New (game of innovation & growth)

On the challenges of corporate innovation today and the future. Bookings: you@plusandersen.com

Transcript

1. THE OLD VS THE NEW ON THE CORPORATE GAME OF GROWTH LEARN MORE
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2. LEARN MORE
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 & ASSOCIATES INNOVATION & GROWTH THROUGH SCIENCE + ENTREPRENEURSHIP
3. THE 
 OLD VS 
 NEW GAME OF GROWTH
4. THE OLD GAME
5. PRODUCT OF THE INDUSTRIAL AGE
6. ALL ABOUT MARKET CAPITALISATION
7. DEFENDING MARKET POSITION AT ALL COSTS
8. CONQUERING MARKET SHARE BY ANY MEANS
9. AT GLACIAL SLOW SPEEDS
10. COOKIE-CUTTER PROCESSES & PEOPLE
11. 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
12. THE NEW GAME
13. LIVING IN A POST-INDUSTRIAL AGE
14. IT’S ABOUT CREATING NEW MARKETS
16. & OF COURSE OWNING THE NEW MARKETS
17. AT LIGHT SPEED FOREVER ACCELERATING
18. SHORTER
 LIFE EXPECTANCY FOR CORPORATIONS
19. EXPONENTIAL
 TECHNOLOGY DEVELOPMENT
20. YOUR COMPETITION
 NO LONGER PEERS OR NEAR-PEERS THE AMOUNT OF VENTURE CAPITAL AVAILABLE TO STARTUPS HAVE NEVER BEEN BIGGER
21. STARTUP VALUATIONS
 RAPIDLY INCREASING
22. YOUR CORPORATION
 SLOW & RIGID + COMPLIANT
23. YOUR NEW COMPETITORS
 FAST & AGILE + BREAKS THE LAW
24. AUTOMATION
 AFFECTING MOST VERTICALS
25. MACHINES
 LEARNING BY THEMSELVES
26. FOREVER CONTINUOUSLY
27. SEARCH EXECUTION IN PARALLEL BUSINESS AS USUAL + DISRUPTION DISRUPTING CORE EXTENDING BUSINESS AS USUAL
28. WITH POLYMATHS +AGILE & ITERATIVE PROCESSES
29. SEPARATED COMPLETELY DIFFERENT WORLDS
30. WITH GATEWAY BETWEEN THE TWO
31. SEARCH EXECUTION DISRUPTION MUTUALLY EXCLUSIVE TO SUSTAINING SUSTAINING DISRUPTING
32. AMBIDEXTROUS DISRUPT OR BE DISRUPTED
33. SUSTAINING DISRUPTIVE OUTSIDE OF DAILY OPERATIONS INSIDE OF DAILY OPERATIONS
34. OPERATIONS INNOVATIONS NEW KPI & MANAGEMENT TOOLS PRODUCT MANAGEMENT & BIZ ADMINISTRATION
35. DOING BOTH WITHIN SAME STRUCTURE WILL FAIL 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
36. 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
37. “We didn’t do anything wrong, but somehow, we lost.” STEPHEN ELOP CEO NOKIA
38. DOING THINGS THE RIGHT WAY IS NOT ENOUGH
39. YOU ALSO NEED TO DO THE 
 RIGHT THINGS
40. THE RIGHT THINGS THE RIGHT WAY
41. SO HOW DO 
 WE INSURE WE ARE DOING THE RIGHT THINGS?
42. OUTDATED 
 TOOLS FURTHER COMPLICATIONS
43. BCG GROWTH MATRIX
44. STRATEGY MAPS
45. WATERFALL PROJECT MANAGEMENT
46. ORGA CHARTS
47. COMMAND LINES
48. 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
49. THE TOOLS THAT WERE ONCE SUCCESSFUL FOR EXECUTION 
 HAVE BECOME IMPEDIMENTS 
 THAT ARE ANTITHETICAL TO CONTINUOUS INNOVATION
50. SO WHAT TO DO?
51. INTRODUCING THE THREE HORIZONS
52. 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 ≠ ≠
53. H1: KNOWN H2: PARTIALLY KNOWN H3: UNKNOWN THE THREE HORIZONS
54. 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
55. WHERE TO DO WHAT? HOW TO MAKE IT WORK
56. HORIZON 1 HORIZON 2/3 OUTSIDE OF DAILY OPERATIONS INSIDE OF DAILY OPERATIONS
57. METHODOLOGY FOR HORIZON 1 INNOVATION EXECUTING KNOWN KNOWNS
58. 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
59. HORIZON 2 / 3 
 INNOVATIONS SEARCHING FOR THE UNKNOWN
60. 1. METHODOLOGY BUSINESS MODEL GENERATION CUSTOMER
 DEVELOPMENT AGILE ENGINEERING + + THE LEAN STARTUP HORIZON 3 SEARCHES FOR
 NEW BUSINESS 
 MODELS THAT DISRUPT CURRENT CORE BUSINESS =
61. 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)
62. 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
63. AS PRACTICED BY AND MANY, MANY MORE…
64. 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
65. 5. STRUCTURE / ENGINE IRL 0-3 IRL 4-6 IRL 9+ IRL 7-8 5 OR 12 WEEKS 3 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?
66. WE HELP 
 YOUR COMPANY 
 GET READY 
 FOR TOMORROW TODAY PLUSANDERSEN.COM
67. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets
68. 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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