How the lean start up revolution is accelerating innovation!


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The lean start-up revolution is challenging the way we educate, manage and lead people and organizations. Israel, the Start-Up Nation provides an evidence based, successful model of innovative entrepreneurship that can be replicated to create start-up entrepreneurs and innovative leaders and organizations globally!

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  • Welcome & acknowledgement
    Brief ETR, ex pat Australian, 30 plus years experience in corporate culture management, change, leadership & executive team effectiveness.
    Relocated to Israel 4 years ago; no kids, corporate career woman, to make a sand change, reinvent ourselves & play in the bigger global learning & coaching game.
    Serial entrepreneur and misfit, having operated my own business for over 30 years.
    Quickly became intoxicated with the entrepreneurial start-up culture, which is a way of life here.
    Discovered that Israel, despite the huge range of global challenges it faces, is a well of infinite creative energy.
    Got hooked to the start-up cult which ultimately busted all of my conventional business and consulting paradigms.
    Sent me back to zero , so I am delighted to share my own emotional rollercoaster of significant and challenging learning experiences with you today, and thanks for making the time to be with me!
  • How I developed the innovate like an Israeli learning system.
    Went thru the 360 degree circle to marinate my ideas, find the flaws, define my business model, and weave and sharpen my story.
    Invent a new language……and a new leadership competence!
    Provocative competence is an intuitive, iterative and generative set of unconventional and disruptive processes, skills and practices
    That result in unexpected, creative outcomes ,
    That can be translated into commercially successful business improvments and ventures.
  • A lot has been written about why innovation & entrepreneurship are important.
    Even The Global Economic Forum and The G20 last week have endorsed the need for innovation and entrepreneurship as a way re-generating economic growth in today's tough times and economic slowdown!
  • No-one is telling you……………………….
    Most of the start-up entrepreneurs in my research studies have impeccable university and business school degrees that support their business acumen and possibly their ultimate success at the "back end" of innovation.
    However, most of them has shared that the most critical success factors lie in how well they deal with the “front end” or ideation phase of innovation.
    As well as with the emotional roller coaster ride of being a start-up entrepreneur.
    In fact, its the "doing" rather than the "knowing" or the "practice" rather than the "theory", that ultimately ensures their success.
    If we want to HAVE expansion, innovation and growth in uncertain, turbulent and unpredictable times,
    We need to DO a lot of things differently and know how to use our imagination & creativity to;
    Think differently
    Be-come provocatively competent leaders
    Who safely and intentionally rock & disrupt the business boat!
    We need to BE different;
    Flexible & adaptive.
  • Why is this important?
    Globally now, we share common challenges and problems, such as;
    Water scarcity, how many of you are aware that Ethiopia and Egypt almost had a war when Ethiopia built a dam upstream, which reduced the amount of fresh water travelling downstream in the Nile to Egypt?
    Traffic, how may of you have travelled by road in Asia and experienced mega traffic jams, one of which reputedly lasted 38 days in China?
    Mega Cities, requiring radical infrastructure innovations to meet the needs of an increasingly urban global population, such as Tokyo, now with a population of 34 million.
    If we shift to the corporate context, organizations globally are facing a new set of challenges and problems:
    Globalization and formidable global and local competition.
    Rapid advances in technology and communications.
    Diverse, non local and virtual workforces.
    Advent of disruptive localized and cost effective innovations in key fields.
    Cross generational and disengaged workforces.
    Declining product lifecycles and diminishing markets.
    Inefficient and obsolete processes.
    Increasing demand for sustainability and corporate responsibility.
  • No-one is telling you……………………….
    Most of the start-up entrepreneurs in my research studies have impeccable university and business school degrees that support their business acumen and possibly their ultimate success at the "back end" of innovation.
    However, most of them has shared that the most critical success factors lie in how well they deal with the “front end” or ideation phase of innovation.
    As well as with the emotional roller coaster ride of being a start-up entrepreneur.
    In fact, its the "doing" rather than the "knowing" or the "practice" rather than the "theory", that ultimately ensures their success.
    If we want to HAVE expansion, innovation and growth in uncertain, turbulent and unpredictable times,
    We need to DO a lot of things differently and know how to use our imagination & creativity to;
    Think differently
    Be-come provocatively competent leaders
    Who safely and intentionally rock & disrupt the business boat!
    We need to BE different;
    Flexible & adaptive.
  • If you have ever been hacked, then you know how important it is to have internet security systems, and now most of us take these pretty much for granted.
    How many of you are aware that these were first developed in Israel, by Checkpoint?
    Established in 1993, Checkpoint pioneered the I.T. security industry with FireWall-1 technology.
    This is still the foundation for most network security technology & today Checkpoint is now a billion dollar company on the Nasdeq.
    How many of you are listening to this webinar on your laptop?
    I expect that some of you are watching & listening to this webinar via your laptop, and this would not be possible without Intel Israel, who developed the microprocessor that all our computers rely on to run.
    Over the past five years, Intel contributed more than $4.1 billion to the development of Israel’s economy.
    Mention Dov Frohman’s book.
  • Let look at what entrepreneurship means;
    The conventional Wikipedia definition versus
    The entrepreneurial reality!
    To develop the skills to be, what Nicholas Taub (the black swan) calls, anti-fragile;
    To survive, thrive and grow within the emotional entrepreneurial rollercoaster!
    To be disruptive and provocative in imaginative, creative and constructive ways that generate innovation.!
  • So lets look at what a start-up company actually is?
    Waze, one of our Israeli case studies recently sold their start-up business to Google for reportedly $1.3 billion.
  • The essence of the start-up business model is that;
    It defines HOW the business enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit.
    It reflects management’s hypothesis about what customers want and how they want it,
    It organizes how an enterprise can best meet those needs, get paid for doing so, and make a profit.
    If it is an internet start-up, it may have a traffic (WAZE) generating business model or it may be a profit generating business model. (ONLINE PIANIST)
    Lets look first at what the co-founders, the Cohen cousins as opposed to the Coen brothers, of the online pianist case developed as their business model:
    An animated online process that teaches people how to play the piano.
    You can choose your favorite tune, from a range of 11 different music categories .
    All you need is a piano keyboard.
    What is hypothesis behind the business model?
    That people can learn how to play the piano online and will ultimately pay to do so, in their own time frame, and be free and flexible about their skills development.
    The business model consists of a free basic subscription, with a tiered series of monthly and annual subscriptions.
    New songs are uploaded daily and currently, there are one million regular members, with the site receiving around 400,000 to 500,000 hits every month.
  • How does the lean start-up differ from conventional business models?
    Favors experimentation over elaborate planning.
    Uses customer feedback to prototype new products and services.
    Embraces iterative design processes over big expensive design up front developments.
  • These are the three key generic steps- that can all be occurring simultaneously.
    One start-up entrepreneur I recently interviewed developed his hypothesis whilst at the Wharton Business School, then spent the next 12 months, spinning around in a 360 degree circle, “marinating his idea”, to find the flaws, until he could perceive a new reality emerging from his hypothesis.
    He then spent 7 months in a “dating process”, to find an appropriate and aligned co-founder, who could fulfill his technology needs, whilst he covered the business and marketing aspects.
    Together they developed, tested and built their business model, iteratively and incrementally.
    Self funding my doing consulting projects on the side, which also supported what we decided to call his “entrepreneurial lifestyle”;
    how to survive (and flourish) without the security and stability of a job, whilst investing all of your physical, financial and emotional resources in something completely new, that may or may not, be successful.
  • How Israeli start-ups typically evolve!
    The intrinsic motivation is developed at home, in high school, in the IDF, and is an essential part of the Israeli entrepreneurial culture, and almost every child aspires to be a start-up entrepreneur.
    Ideas get incubated, in high school, in the Israel Defense Forces (IDF), at university (in Israel or aboard), or in the many start-up hubs and hackathons that operate in the major cities.
    A “start-up gang” will informally develop and get together to seed the start-up solution by creating their unique collaborative DNA. They will be willing to work together, to co-operate, collaborate as a loose team. They will maximize their differences and diversity by arguing and debating, until they generate higher levels of meta thinking. Most often they will then create a workable structure to ensure that they work effectively, with speed and agility and may seek initial crowd funding to finance their initial development.
    The outcome is the development of a business model, or “paradigm shifter” which is then prototyped, through rapid experimentation and improvisation. The intent is to give the market something innovative, of value that is accessible and has NOT previously existed.
    The team may now join an incubator to seek business mentoring, planning and/or financial support.
    They will share and take advice from other start-ups and will think of their competitors as colleagues or resources for improving their own business model or start-up.
    The gang constantly tests their ideas through customer and market feedback to continually iterate and prototype their business model, whilst developing their business plan.
    They will pivot their successes & failures, using every experience as a way to improve what they are developing.
    They may remain in stealth mode, until they have finally validated their proof of concept.
    They may now join an accelerator to seek business mentoring, planning and/or financial support or to obtain Venture Capitalist (VC) investment.
    They will continue to accelerate their business model until it is finally realized via a sale to an external third party or VC Investor, their own market success, or drop it if it fails and start all over again with a new hypothesis or solution, using what they have learnt to improve their chance of success in their new start-up venture.
  • Israeli examples of paradigm shifters or disruptive innovations that changed their industries forever!
  • The ultimate intention:“Whenever you’re going onto the web, you start with a search bar,” he said. “Wherever you’re going in the real world, you’re going to start with Waze.”
  • Highlighted in the famous book “Start-Up Nation”.
  • Why use Israel as a case study?
    Israel provides an evidence based, economically successful model for both innovation and entrepreneurship which enables it to flow and flourish with many of the challenges of the 21st century.
    Ten Israelis have won the Nobel Prize so far.
    Israel has 3rd highest number of registered patents per capita worldwide.
    Israel has the third highest rate of entrepreneurship – and the highest rate among women and among people over 55 – in the world.
    Israel is one of eight countries in the world that have the technological ability to build and launch their own satellites, most recently the Amos 5
    While many doom and gloom articles often dominate world media headlines, and many people perceive Israel to be a war torn and aggressive country, and I can assure you, having lived there now for 4 years, this is not the case.
    I decided to explore the possibilities and the bigger picture by looking at what Israel is really about, what are the cultural drivers, intrinsic motivators, mindsets, behaviours and skills that can be deciphered, replicated and taught.
    What I found was a considerable number of contradictions to the majority of the consulting, cultural and organizational models I have been working with for many years. Largely because of the creative tension that exists between its survival and self actualization needs.
  • Why is more systemic approach to business emerging?
    In the current turbulent, uncertain and globalized business environment, one of the greatest challenges ahead is to find a balance between the two potentially conflicting responses :
    Reacting by reverting back to the “survival of the fittest” power and control based strategies,
    Contributing and collaborating towards co-creating responsible strategies that proactively deal and “work with” the pace and speed of change and globalization.
    Yet nature provides us with a solution to achieve this type of balance:
    Wikipedia describes an eco-system as “a dynamic interactions between plants, animals, and microorganisms and their environment working together as a functional unit.”
    What is a business eco-system?
     James F Moore in The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems defined a “business ecosystem” as:
    “An economic community supported by a foundation of interacting organizations and individuals—the organisms of the business world. The economic community produces goods and services of value to customers, who are themselves members of the ecosystem. The member organisms also include suppliers, lead producers, competitors, and other stakeholders. Over time, they co-evolve their capabilities and roles, and tend to align themselves with the directions set by one or more central companies.”
    It has created a business environment where entrepreneurs and their Start-Up businesses quickly adapt, develop scale, deal with adversity, and develop the resilience required to operate seamlessly in an uncertain, chaotic and unstable world.
    Walk thru eco-system attributes.
  • Embarked on this incredible learning journey, without knowing what I didn't know.
    The old adage, you can only teach most what you need to learn applied to me:
    Find out how it really works, let go of old perceptions, models and processes.
    Experience the emotional rollercoaster.
    Be detached from having to achieve a result or an outcome, surrender to be in the iterative and generative space and emergent process - being able to function within ambiguous boundaries.
  • About ImagineNation
  • The Start-Up Game™ simulates the 5 phases of the new business venture or Start-Up Cycle and takes you thru a visceral and cognitive experience of the emotional rollercoaster.
    Form the Start-Up Gang, and learn how to collaborate, or not.
    Establish the Start-Up, what key problem will we solve, what is our start-up solution and how will we resolve our initial Start-Up business dilemmas to bootstrap our development?
    Pitch our Start-Up’s Solution and Business Model to potential investors or board of management to obtain next step seed funds.
    Solve a range of typical Start-Up Business Challenges, whilst balancing the costs, benefits and consequences of each business decision to preserve seed funds and improve Start-Up value.
    Realize your Start-Up’s ultimate value, within a volatile and uncertain business environment.
    Finally, players simulate and experience an innovative business culture and eco-system.
  • Encapsulates all of my IP and makes it available to the world!
    Don’t have to be a coach to do it, just be a curious and open minded trainer, facilitator, consultant or agent of change!
  • So before you take a giant start-up or entrepreneurial leap, consider;
    How you might develop your emotional resilience and anti fragility and retain your focus and composure within an ambiguous set of business and personal boundaries?
    How you could effectively nourish and flourish within high levels of instability and uncertainty whilst improvising, experimenting and iterating a new business?
    and finally how could you form and sustain your gang, to collectively and effectively achieve the seemingly impossible and solve some of the world’s most challenging and pressing problems?
  • Some people like my 2 heroes, Sir Ken Robinson and Seth Godin, say that current production line approaches to education are not equipped to meet the needs of an uncertain and connected future!
    “We need students who can learn how to learn, who can discover how to push themselves and are generous enough and honest enough to engage with the outside world to make those dreams happen”.
    “It’s education that’s meant to take us into this future that we can’t grasp; How can we use entrepreneurship to break the “education-work-employment” paradigm?”
    There is a need to re-invent education to teach an emerging generation to let go of their expectations around the “education-work-employment” and teach them how to take responsibility for creating their own futures.
    By learning what it means to DO & BE entrepreneurial.
    “At a time when society’s biggest issue is youth unemployment, businesses and governments must work together to help young people foster an entrepreneurial mindset.”
    Not necessarily to create their own start-up, just to know how to operate and succeed in the different playing fields of the 21st century.
  • How the lean start up revolution is accelerating innovation!

    1. 1. How the lean start-up is accelerating innovation! TM Janet Sernack CEO & Founder ImagineNation Compass Learning Pty Ltd 1 TM © Private & Confidential
    2. 2. ImagineNation™: The Start-Up Game The Start-Up Game™ is a unique business simulation, co-created in Israel, by award winning Playful Shark and Israeli Start-Up ImagineNation™ . Integrates adult, experiential and gamification concepts, principles and techniques into a corporate learning context to teach innovative leadership and start-up entrepreneurship. 2 TM © Private & Confidential
    3. 3. ImagineNation™: Why innovation and entrepreneurship? Everyone is talking about innovation and entrepreneurship, how they will help your business expand, grow and succeed in uncertain, turbulent and unpredictable times! 3 TM © Private & Confidential
    4. 4. ImagineNation™: Why innovation and entrepreneurship? Yet not many people know what to DO and how to BE an innovative entrepreneur in your organization or business practice! To solve the problems and maximize the opportunities and possibilities available to us in the 21st century. 4 TM © Private & Confidential
    5. 5. ImagineNation™: Why innovation and entrepreneurship? Challenge Generate business growth Increase business value Satisfy a younger ambitious workforce Engage and retain people Reduce rising costs Succeed in the face of local and global competition NECESSITY IS THE MOTHER OF ALL INVENTION AND INNOVATION! 5 TM © Private & Confidential
    6. 6. ImagineNation™: Why innovation and entrepreneurship? THINK DIFFERENTLY! 6 TM © Private & Confidential
    7. 7. Sub header INTE BE NTIO DISR NALLY UPTI VE ! 7 TM © Private & Confidential
    8. 8. ImagineNation™: Session Focus What is innovative Start-Up entrepreneurship? What is a lean Start-Up and why is this the emerging key business model? Why is Israel considered to be The StartUp Nation? What are the key stages in the evolution of an Israeli Start-Up? What is an innovative business culture and eco-system and how can they be built?  8 TM © Private & Confidential
    9. 9. ImagineNation™: What is a successful innovative entrepreneur? “An entrepreneur with an innovative idea is a rare and valuable find...everyone is capable of coming up with the idea. Put that together with someone who can execute a plan —and watch out.”  9 TM “If innovation is the creation of new capacities for wealth creation, entrepreneurship is the exploitation of these capacities.” © Private & Confidential
    10. 10. ImagineNation™: What does entrepreneurship really mean? Entrepreneurship is the act and  art of being an entrepreneur or  one who undertakes innovations  Or introducing new things,  finance and business acumen, in  an effort to transform  innovations into economic goods. Requir es “an fragile ti ” qualiti e s! Source 10 TM © Private & Confidential
    11. 11. ImagineNation™: What is a start-up company? A startup is a company, a partnership or temporary organization  designed to search for a repeatable and scalable (and disruptive) business model that will generate significant revenue. These companies, generally newly created, are in various phases  of development and research for new markets. They tend defy conventional business development, planning and  management processes 11 TM © Private & Confidential
    12. 12. ImagineNation™: What is the start-up business model? Whenever a business is  established, it employs a  particular business model that describes the architecture of the value creation, delivery, and capture mechanisms employed by the business enterprise. PARAD IGM SHIFT! 12 TM © Private & Confidential
    13. 13. ImagineNation™: How does a lean start-up operate? Steve Blank, consulting associate  professor at Stanford, states that  the lean start-up turns the  traditional and decades old  business development on its head: Requires minimal viable product. Allows pivoting for success, by failing fast to continually learn. Traditional business execute a business model. Start-ups exist to find a new one. 13 TM © Private & Confidential
    14. 14. ImagineNation™: How does a lean start-up get initiated? Making a start-up a temporary organization designed to search for a repeatable and scalable business model. 14 TM © Private & Confidential
    15. 15. ImagineNation™: How does a lean start-up typically evolve? ITERAT GENERA IVE T IV P R OC E E & SS PAYING ! IT F OR W A RD! 15 TM © Private & Confidential
    16. 16. ImagineNation™: What a successful lean start-up achieves! Disrupts the existing industry paradigms. Liberates “out of the box” ideas and solutions by raising the level of thinking; Creates openings that result in “right hand turns”, or inflection points which, Make the shift from “incremental change” to “revolutionary leaps”. 16 TM © Private & Confidential
    17. 17. ImagineNation™: So what did Waze sell Google? The ability (eventually) to maintain Google’s own maps in real time, as Waze does. Waze’s work on understanding the intent of its users, which is key to unlocking the puzzle of how on Earth you show ads to people on their mobile phones. Build an ad network. Promote location based advertising. PARAD IG M SHIFT! 17 TM By drawing on the wisdom of the crowd Incorporating gamification processes. Refreshing maps every 24 hours. Linking to global news services. © Private & Confidential
    18. 18. ImagineNation™: Israel considered The Start-Up Nation! There are currently more than 5,000 “lean start-ups” being developed at this very moment, around the tiny nation (as big as New Jersey) of Israel. See Entrepreneurial Israeli Start-Up culture (and cult). Young people are motivated and to compete to constantly improve the way high tech businesses operate the world we live in and the lives we lead. 18 TM © Private & Confidential
    19. 19. ImagineNation™: Why use Israel as a case study? Israel has the highest venture capital investment per person globally in 2013. Ranks #14 on the 2013 Global Innovation Index. (Population 8 million, as big as New Jersey) Ranks # 1 on Research & development (R&D). Ranks #3 on Venture capital deals/tr PPP$ GDP. Ranks # 4 on Knowledge workers and human capital and #6 on knowledge creation. Ranks #3 on the highest number of registered patents per capita worldwide. Ranks #2 on on worlds most hip start-up centres 19 TM © Private & Confidential
    20. 20. ImagineNation™: What is the Israeli innovative eco-system? The cluster of world class universities, government agencies, venture capitalists, large organizations, Israel Defense Forces and Start-Ups that collaborate informally and internally, to compete externally and globally. This has resulted in Israel taking a global leadership role in disruptive innovation and technology. 20 TM © Private & Confidential
    21. 21. ImagineNation™: An Israeli start-up and the first global learning company to... Research, decipher and replicate the Israeli innovative and entrepreneurial start-up phenomena. Develop the unique innovate like an Israeli learning system. Co-create in Israel a non academic pragmatic “how to” innovative leadership and entrepreneurship corporate curriculum. 21 TM © Private & Confidential
    22. 22. ImagineNation™: About us! We are a generative and provocative global learning company that enables coaches, managers, leaders, and organizations to develop their innovative leadership and entrepreneurship capability by: Creating the mindset flips to perceive the world differently. Developing tolerance to uncertainty, instability and ambiguity. Develop innovative entrepreneurs who see opportunities, pursue and execute them. Making innovation everyone’s job, every day to build highly engaged and passionate work environments. 22 TM © Private & Confidential
    23. 23. A gamified business simulation A business simulation that is part of a customized organizational learning process that brings the lean start-up process "to life“ and develops; Innovative leadership and start-up entrepreneurship A culture of “provocative competence” An innovative culture and business eco-system. Through collaboration, role play, creative tension and the integration of adult and experiential learning principles and gamification processes. 23 TM © Private & Confidential
    24. 24. ImagineNation™: The Coach for Innovators Certified Program A distance learning program that is ICF CCE accredited and will give you what you need to become a more compelling force in your niche market and coach in an emergent and innovative way! 8 Weekly Teleseminars (2 hours each) 4 one on one online meetings Comprehensive Self-Study Program Earn 19 Continuing Coach Education points towards your ICF reaccreditation! Next program starts January 2014! 24 TM © Private & Confidential
    25. 25. ImagineNation™: So what is the real global opportunity? “The Lean Startup isn't just about how to create a more successful entrepreneurial business... it's about what we can learn from those businesses to improve virtually everything we do. I imagine Lean Startup principles applied to government programs, to healthcare, and to solving the world's great problems. It's ultimately an answer to the question “How can we learn more quickly what works, and discard what doesn't?” Questions? TIM O'REILLY CEO O'REILLY MEDIA 25 TM © Private & Confidential
    26. 26. Sub header Thank You! 26 TM © Private & Confidential
    27. 27. ImagineNation™: Why innovative entrepreneurship! “At a time when society’s biggest issue is youth unemployment, businesses and governments must work together to help young people foster an entrepreneurial mindset.” The Economist Magazine, in a recent article, ‘’Generation Jobless”, analyzed figures provided by the International Labor Organization, the OECD, and the World Bank Database, and calculated that, “all told, almost 290 million (15 – 24 year olds) are neither working, nor Break the studying; almost a quarter ofthe planets “educationworkyouth”. employment” paradigm? This trend is exasperated by the mismatch between the skills young people offer and the skills employers need, resulting mostly from “poor basic education”. 27 TM © Private & Confidential