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© Copyright 2014 Innosight LLC 0
© Copyright 2014 Innosight LLC
The Future of Innovation
Scott D. Anthony
March 2014
@ScottDAnthony
© Copyright 2014 Innosight LLC 1
moremore
moremoremoremoremore
© Copyright 2014 Innosight LLC 2
The trouble
with our times
is that the
future is not
what it used
to be.
© Copyright 2014 Innosight LLC 3
The reality of today’s world
“On average, an S&P 500 company is now
being replaced about once every two
weeks. And the churn rate of companies
has been accelerating over time.”
© Copyright 2014 Innosight LLC 4
© Copyright 2014 Innosight LLC 5
© Copyright 2014 Innosight LLC 6
In the cellphone industry…
© Copyright 2014 Innosight LLC 7
© Copyright 2014 Innosight LLC 8
© Copyright 2014 Innosight LLC 9
© Copyright 2014 Innosight LLC 10
bigger moremore
moremoremoremoremore
© Copyright 2014 Innosight LLC 11
"Running a startup is like being
punched in the face repeatedly, but
working for a large company is like
being waterboarded.”
© Copyright 2014 Innosight LLC 12
It has never been easier to
start a company …
© Copyright 2014 Innosight LLC 13
75%
© Copyright 2014 Innosight LLC 14
0.1%
© Copyright 2014 Innosight LLC 15
It has never been easier to
start a company …
… but it has never been harder
to build a business.
© Copyright 2014 Innosight LLC 16
Never faster,
sometimes better
© Copyright 2014 Innosight LLC 17
Goal 1: Eradicate extreme poverty and hunger
Goal 2: Achieve universal primary education
Goal 3: Promote gender equality and empower women
Goal 4: Reduce child mortality
Goal 5: Improve maternal health
Goal 6: Combat HIV/AIDS, malaria, and other diseases
Goal 7: Ensure environmental sustainability
© Copyright 2014 Innosight LLC 18
© Copyright 2014 Innosight LLC 19
beyond the
bigger moremore
moremoremoremoremore
© Copyright 2014 Innosight LLC 20
© Copyright 2014 Innosight LLC 21
How did this become the patron saint of innovation?
百花運動
“The policy of letting a
hundred flowers bloom
and a hundred schools of
thought contend is
designed to promote the
flourishing of the arts and
the progress of science”
Mao later boasted that he
“enticed the snakes out
of their caves.”
© Copyright 2014 Innosight LLC 22
Genius is 1 percent inspiration
and 99 percent perspiration
© Copyright 2014 Innosight LLC 23
While scores of people
worldwide worked on
inventing a lightbulb, Edison
conceived a fully operational
system. His technical platform
included generators, meters,
transmission lines, and
substations, and he mapped
out both how they would
interact technically and how
they would combine in a
profitable business.
© Copyright 2014 Innosight LLC 24
Everybody has a plan …
until they get punched in the face
© Copyright 2014 Innosight LLC 25
‘Everything looks like a failure in the middle’
© Copyright 2014 Innosight LLC 26
Be DEFT, have HOPE
D
E
F
T
ocument your plan
valuate it exhaustively
ocus on key unknowns
est, learn, and adjust
© Copyright 2014 Innosight LLC 27
Best practice in experiment design
We know unequivocally that the traditional MBA
curriculum for running large companies like IBM, GM,
and Boeing does not work in startups. In fact, it’s toxic.
The search for a business model requires dramatically
different rules, roadmaps, skill sets, and tools in order
to minimize risk and optimize chances for success.
© Copyright 2014 Innosight LLC 28
beyond the
moremore
moremoremoremoremore
back to
bigger
© Copyright 2014 Innosight LLC 29
What can you learn from the marshmallow challenge?
© Copyright 2014 Innosight LLC 30
Source: Tom Wujec, The Marshmallow Challenge, TED April 2010 http://www.ted.com/talks/tom_wujec_build_a_tower.html
© Copyright 2014 Innosight LLC 31
Source: Tom Wujec, The Marshmallow Challenge, TED April 2010 http://www.ted.com/talks/tom_wujec_build_a_tower.html
© Copyright 2014 Innosight LLC 32
Source: Tom Wujec, The Marshmallow Challenge, TED April 2010 http://www.ted.com/talks/tom_wujec_build_a_tower.html
© Copyright 2014 Innosight LLC 33
Innovative behaviors comes naturally to us as children.
We systematically unlearn how to be curious and creative
Source: Tom Wujec, The Marshmallow Challenge, TED April 2010 http://www.ted.com/talks/tom_wujec_build_a_tower.html
© Copyright 2014 Innosight LLC 34
© Copyright 2014 Innosight LLC 35
© Copyright 2014 Innosight LLC 36
When in doubt…
36
© Copyright 2014 Innosight LLC 37
beyond the
moremore
moremoremoremoremore
back to
bigger
for a purpose
© Copyright 2014 Innosight LLC 38
Over the years I’ve seen more and
more of my classmates come to
reunions unhappy, divorced, and
alienated from their children.
I can guarantee you that not a single
one of them graduated with the
deliberate strategy of getting
divorced and raising children who
would become estranged from them.
And yet a shocking number of them
implemented that strategy.
The reason? They didn’t keep the
purpose of their lives front and
center as they decided how to spend
their time, talents, and energy.
−Clayton Christensen
© Copyright 2014 Innosight LLC 39
Purpose for profits, not purpose of profits
© Copyright 2014 Innosight LLC 40
beyond the
back to
bigger moremore
moremoremoremoremore
for a purpose
© Copyright 2014 Innosight LLC 41

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Scott Anthony The Future Of Innovation

  • 1. © Copyright 2014 Innosight LLC 0 © Copyright 2014 Innosight LLC The Future of Innovation Scott D. Anthony March 2014 @ScottDAnthony
  • 2. © Copyright 2014 Innosight LLC 1 moremore moremoremoremoremore
  • 3. © Copyright 2014 Innosight LLC 2 The trouble with our times is that the future is not what it used to be.
  • 4. © Copyright 2014 Innosight LLC 3 The reality of today’s world “On average, an S&P 500 company is now being replaced about once every two weeks. And the churn rate of companies has been accelerating over time.”
  • 5. © Copyright 2014 Innosight LLC 4
  • 6. © Copyright 2014 Innosight LLC 5
  • 7. © Copyright 2014 Innosight LLC 6 In the cellphone industry…
  • 8. © Copyright 2014 Innosight LLC 7
  • 9. © Copyright 2014 Innosight LLC 8
  • 10. © Copyright 2014 Innosight LLC 9
  • 11. © Copyright 2014 Innosight LLC 10 bigger moremore moremoremoremoremore
  • 12. © Copyright 2014 Innosight LLC 11 "Running a startup is like being punched in the face repeatedly, but working for a large company is like being waterboarded.”
  • 13. © Copyright 2014 Innosight LLC 12 It has never been easier to start a company …
  • 14. © Copyright 2014 Innosight LLC 13 75%
  • 15. © Copyright 2014 Innosight LLC 14 0.1%
  • 16. © Copyright 2014 Innosight LLC 15 It has never been easier to start a company … … but it has never been harder to build a business.
  • 17. © Copyright 2014 Innosight LLC 16 Never faster, sometimes better
  • 18. © Copyright 2014 Innosight LLC 17 Goal 1: Eradicate extreme poverty and hunger Goal 2: Achieve universal primary education Goal 3: Promote gender equality and empower women Goal 4: Reduce child mortality Goal 5: Improve maternal health Goal 6: Combat HIV/AIDS, malaria, and other diseases Goal 7: Ensure environmental sustainability
  • 19. © Copyright 2014 Innosight LLC 18
  • 20. © Copyright 2014 Innosight LLC 19 beyond the bigger moremore moremoremoremoremore
  • 21. © Copyright 2014 Innosight LLC 20
  • 22. © Copyright 2014 Innosight LLC 21 How did this become the patron saint of innovation? 百花運動 “The policy of letting a hundred flowers bloom and a hundred schools of thought contend is designed to promote the flourishing of the arts and the progress of science” Mao later boasted that he “enticed the snakes out of their caves.”
  • 23. © Copyright 2014 Innosight LLC 22 Genius is 1 percent inspiration and 99 percent perspiration
  • 24. © Copyright 2014 Innosight LLC 23 While scores of people worldwide worked on inventing a lightbulb, Edison conceived a fully operational system. His technical platform included generators, meters, transmission lines, and substations, and he mapped out both how they would interact technically and how they would combine in a profitable business.
  • 25. © Copyright 2014 Innosight LLC 24 Everybody has a plan … until they get punched in the face
  • 26. © Copyright 2014 Innosight LLC 25 ‘Everything looks like a failure in the middle’
  • 27. © Copyright 2014 Innosight LLC 26 Be DEFT, have HOPE D E F T ocument your plan valuate it exhaustively ocus on key unknowns est, learn, and adjust
  • 28. © Copyright 2014 Innosight LLC 27 Best practice in experiment design We know unequivocally that the traditional MBA curriculum for running large companies like IBM, GM, and Boeing does not work in startups. In fact, it’s toxic. The search for a business model requires dramatically different rules, roadmaps, skill sets, and tools in order to minimize risk and optimize chances for success.
  • 29. © Copyright 2014 Innosight LLC 28 beyond the moremore moremoremoremoremore back to bigger
  • 30. © Copyright 2014 Innosight LLC 29 What can you learn from the marshmallow challenge?
  • 31. © Copyright 2014 Innosight LLC 30 Source: Tom Wujec, The Marshmallow Challenge, TED April 2010 http://www.ted.com/talks/tom_wujec_build_a_tower.html
  • 32. © Copyright 2014 Innosight LLC 31 Source: Tom Wujec, The Marshmallow Challenge, TED April 2010 http://www.ted.com/talks/tom_wujec_build_a_tower.html
  • 33. © Copyright 2014 Innosight LLC 32 Source: Tom Wujec, The Marshmallow Challenge, TED April 2010 http://www.ted.com/talks/tom_wujec_build_a_tower.html
  • 34. © Copyright 2014 Innosight LLC 33 Innovative behaviors comes naturally to us as children. We systematically unlearn how to be curious and creative Source: Tom Wujec, The Marshmallow Challenge, TED April 2010 http://www.ted.com/talks/tom_wujec_build_a_tower.html
  • 35. © Copyright 2014 Innosight LLC 34
  • 36. © Copyright 2014 Innosight LLC 35
  • 37. © Copyright 2014 Innosight LLC 36 When in doubt… 36
  • 38. © Copyright 2014 Innosight LLC 37 beyond the moremore moremoremoremoremore back to bigger for a purpose
  • 39. © Copyright 2014 Innosight LLC 38 Over the years I’ve seen more and more of my classmates come to reunions unhappy, divorced, and alienated from their children. I can guarantee you that not a single one of them graduated with the deliberate strategy of getting divorced and raising children who would become estranged from them. And yet a shocking number of them implemented that strategy. The reason? They didn’t keep the purpose of their lives front and center as they decided how to spend their time, talents, and energy. −Clayton Christensen
  • 40. © Copyright 2014 Innosight LLC 39 Purpose for profits, not purpose of profits
  • 41. © Copyright 2014 Innosight LLC 40 beyond the back to bigger moremore moremoremoremoremore for a purpose
  • 42. © Copyright 2014 Innosight LLC 41