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Innovation Storytelling: Nurturing the "Seeds" of Innovation

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There are many models for engaging in corporate venturing and innovation. But how can we expand the models we think of when we think of "strategic partnerships"? And what practices can we engage in so these initiatives aren't conducted as isolated engagements but as ones that can centrally influence the business? Drawing on lessons learned and experiences from PARC today, CEO Steve Hoover will share cases and specific innovation practices we can engage in, particularly for moving ideation to impact, optimizing for timing especially under uncertainty, and for influencing the entire organization.

PARC presented this talk during the "Innovation Storytelling: Nurturing The Seeds of Innovation, Case Study Illustrations" segment at the IBF Corporate Venturing and Innovation Partnering conference on February 7, 2012.

Attended by corporate investors, new business development executives, venture capitalists, private equity investors, mergers & acquisition executives, institutional investors, technology transfer experts, licensing executives, investment bankers, corporate counsel, as well as CTOs, CIOs, CEOs and CFOs of emerging growth companies, this annual International Business Forum event shares strategies to gain a competitive advantage through corporate venturing and innovation initiatives. Over two days, attendees will have an opportunity to share B2B alliance models, investment approaches, strategies to capture technology innovation from external sources, and insights on ways to enhance their corporate venturing initiatives.

Published in: Business, Technology

Innovation Storytelling: Nurturing the "Seeds" of Innovation

  1. 1. Innovation Storytelling: Nurturing the seeds of innovation Stephen Hoover, CEO
  2. 2. The Business of Breakthroughs ® laser printing Ethernet PC workstation Alto WYSIWYG, GUI corporate ethnography multi-beam laser diodes ubiquitous computing collaborative filtering AI/ model-based systems socio-cognitive computing cleantech printed & flexible electronics content-centric networking incorporated 2002 founded 1970 content-centric networking
  3. 3. Just some of the company we keep…
  4. 4. About 25% of our clients are startups…
  5. 5. It’s NOT just about the “seeds”…
  6. 6. … it’s about the whole ecosystem.
  7. 7. How we practice open innovation: PARC’s business model government internal R&D commercial clients Fortune 500 Global 1000 startups PARC | commercial enablers
  8. 8. How to move beyond ideation to impact Access capabilities – not just ideas – to accelerate time to market and reduce risk
  9. 9. Getting access to expertise not otherwise available Getting image from Mickey, Chris, or Suk
  10. 10. Getting access to funding not otherwise available
  11. 11. Getting the timing right given uncertainty Embrace a “real options” mindset to execute on – not just evaluate – innovation efforts
  12. 12. Real Options definition: re  al op  tions Phased approach where investments are gradually increased (or decreased) over time as one learns new information for different types of risk, about the expected returns, and probabilities of success [ ree - uh’l , op - shuh’ns ] e e (rē’ l ŏp’sh ns)
  13. 13. Trading off value and risk: theoretical curves $ risk Cumulative spending Amount of risk time Value of technology
  14. 14. … in reality time $ risk Proof of concept completed Prototype completed Product completed and tested Amount of risk Value of technology Cumulative spending Research Engineering
  15. 15. … and it’s even worse time $ risk Proof of concept completed Prototype completed Product completed and tested Amount of risk Value of technology Research Engineering The shape of these curves are unknown at beginning of project. Cumulative spending
  16. 16. Minimum Viable Product (MVP) strategy time $ risk Proof of concept completed Prototype completed Product completed and tested Amount of risk Value of technology Research Engineering Design/QA MVP MVP MVP MVP MVP Use Real Options mindset: Start small. Define key technical milestones and test MVP hypotheses. If information is positive, “double down” on investment.
  17. 17. Partnering to develop the MVP … and disrupt the market
  18. 18. On impacting the core business Build a big enough lever by architecting the ecosystem
  19. 19. Filling in gaps for an immature ecosystem Production Ramp Research Establish feasibility <ul><li>Opportunity discovery </li></ul><ul><li>Product concept </li></ul>Development Lab scale prototypes Product Realization Manufacturing prototypes <ul><ul><li>Materials </li></ul></ul><ul><ul><li>Process </li></ul></ul><ul><ul><li>Equipment </li></ul></ul>gap gap
  20. 20. Connecting the players to architect the solution
  21. 21. PARC | <ul><li>Some takeaways… </li></ul><ul><li>Think ecosystems, not only portfolios </li></ul><ul><li>Be the architect, not just the broker </li></ul><ul><li>Remember that it’s all about the people </li></ul>
  22. 22. Steve Hoover | [email_address] slides will be posted at: www.slideshare.net/parcinc www.parc.com www.parc.com/subscribe Twitter: @PARCinc

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