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Disruptive Scalability – Leap Growth for Exponential Returns | Scott Hamilton | Lunch & Learn


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UCI Applied Innovation is a dynamic, innovative central platform for the UCI campus, entrepreneurs, inventors, the business community and investors to collaborate and move UCI research from lab to market.

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To accelerate collaboration by better connecting innovation partners in Orange County, UCI Applied Innovation created the Cove, a physical, state-of-the-art hub for entrepreneurs to gather and navigate the resources available both on and off campus. The Cove is headquarters for UCI Applied Innovation, as well as houses several ecosystem partners including incubators, accelerators, angel investors, venture capitalists, mentors and legal experts.

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Disruptive Scalability – Leap Growth for Exponential Returns | Scott Hamilton | Lunch & Learn

  1. 1. Disruptive Scalability- Leap Growth for Exponential Returns Scott Hamilton, ENP Institute/Nextworks Strategy
  2. 2. Current Economy - Hay and Pets
  3. 3. Lunch and Learn Objectives 1) Opportunity to bring people to the Cove and highlight the great ecosystem we have here. 2) Networking and facilitated collisions of like-minded people. 3) Content learning on topics related to innovation and entrepreneurship that will help them on their entrepreneurial journeys. (Caveat- Talking about scale is like boiling the ocean)
  4. 4. Your Obligation Today Participate! If you have a question or a specific value proposition you think you can scale (or trying to scale)- speak up If you are an EIR or industry expert- share some of your own successes and learning experiences
  5. 5. ENP Institute (Forums) What is this organization about? Who are we? What can you expect from today? 10 Years, 300 + Forums and C-suite/Key Leader Collaborations 915 Speakers, Over 27,800 Attendees
  6. 6. Advisory Support. •Strategy Development & Offsite Facilitation •Leadership Development •Customer Centricity •Project Excellence •Organization Alignment
  7. 7. Disruption.. Is everywhere
  8. 8. Next Practices Ideas, processes, concepts and solutions that move you beyond the “status quo”. Not “how are others doing it best” but rather, “where do we go from here that represents a true, fundamental shift in value”…
  9. 9. September 11 ENP & Octane Pharmaceutical Sector Impacts on your Business
  10. 10. Sept 27 Disrupt HR 5.0
  11. 11. Who is in the room? Revenues more that $1 billion Revenues more than $300 million Revenues more than $10 million No revenue, I just like pizza…
  12. 12. Industry Sectors Here Healthcare Hospitality Professional Services (consulting) Transportation Technology
  13. 13. What is YOUR Definition of Scale?
  14. 14. Today’s BFO Digital transformation has changed the entire approach, velocity and return on scale. If you don’t base your business platform and infrastructure on relevant, integrated and agile technology applications, your ability to scale will revert to analog speed (or slower).
  15. 15. A Few Key Elements of Scale 1 – Are we operating the business at scale? Operating the business at scale means allocating resources to drive the greatest results and volume. Operating the business at scale is about optimization, not duplication, of efforts. 2 – Are we taking advantage of the scale of the business? Scale is another word for size. Companies can leverage their size by negotiating exclusive dealings, favorable terms and volume discounts with other organizations. 3 – Can the solution scale-up or -down based on demand? Most industries have periods with increased demand (retailers during the holiday season). Cloud companies like AWS let users increase or decrease capacity as needed. 4 – Does the business scale? Scalable businesses grow revenue with minimal to no new operating costs (software). If operating costs increase at the same rate as revenue growth, the business does not scale (professional services). 5 – How fast can we scale the business? Successful companies create a repeatable sales process. Once the process has been developed, companies can accelerate revenue by expanding (scaling) to additional geographies.
  16. 16. Where do you start? Scale Essentials Value Proposition Differentiated Market Strategy Flawless Execution Cash Start up…Scale up or Stall out (fail to scale)
  17. 17. Disrupting Scale for Exponential Growth >Strategic Pivots via the Value-Cost- Market Model >OKRs >Scale mindset
  18. 18. Where scale originates Value Features Benefits
  19. 19. Value Proposition Creation per Jeff Bezos "The balance of power is shifting toward consumers and away from companies… The right way to respond to this if you are a company is to put the vast majority of your energy, attention and dollars into building a great product or service and put a smaller amount into shouting about it, marketing it.“ "Your margin is my opportunity."
  20. 20. Market & Customer Strategy
  21. 21. Growth Model of a Market- Creating Strategy Highest disruptive creation: Offering a breakthrough solution to an existing industry problem Medium disruption: Redefining and solving an existing industry problem Low disruption: Identifying and solving a brand-new problem or seizing a brand new opportunity (i.e. if does not disrupt existing industry- ringtones)
  22. 22. Existing Business- A New Value- Cost Frontier Path one- Look across alternative industries Path Two- Look across strategic groups in your industry Path Three- Look across the chain of buyers and redefine the industry buyer group Path Four- Look across complimentary product and service offerings Path Five – Rethink the functional- emotional orientation of your industry Path Six – Participate in shaping external trends over time
  23. 23. Our advice… “Look at what industry/product/service hasn’t been scaled yet and go for it”
  24. 24. Scale is accelerated by low friction and high adoption- via technology
  25. 25. High Friction Point of Sale
  26. 26. Tesla- Low Friction Point of Sale
  27. 27. Talent- Risk and Rewards for Scale
  28. 28. Talent for Scale Early stage- Fractional C-suite executives and expert support? Right person, right time Contrarian team player Later- Can your leadership keep up with the multiples? Run one short
  29. 29. Cost and Revenue Streams
  30. 30. Cost – Revenue Does the business scale? Scalable businesses grow revenue with minimal to no new operating costs (software). If operating costs increase at the same rate as revenue growth, the business does not scale (professional services).
  31. 31. Internally generated cash Think Amazon Avoid debt Cash flow funds expansion Avoid dilution of shares
  32. 32. Capital Stack Identify cash needs and sources early Tap into multiple sources depending on need and level
  33. 33. Execution and Metrics
  34. 34. OKR- Objectives and Key Results “Ideas are easy, execution is everything… “ John Doerr
  35. 35. Key Metrics Sales per employee Customer growth milestones Viable innovations to your VP
  36. 36. Execution Checklist- More Scale Levers Leadership team aligned – on the same page Stakeholders are aligned Roles and accountability Core values and Purpose are “alive” Plans and performance are visible to everyone
  37. 37. “Leap Growth” Scaling $1 million to $2million Validation of your VP $5 million to $20million Talent $25 million to $100 million Infrastructure $100 million to $500 million Cash/Inorganic/Alliances
  38. 38. Leap Growth Mindset • Quit Trying Harder – Trying harder only produces incremental gains. A quantum shift is an elegant solution requiring far less effort. • Ignore Conventional Wisdom and Approaches– A quantum leap requires an abrupt change in your behavior. It requires finesse over effort, simplicity over complexity, a new paradigm and a fresh perspective. • Think Beyond What Common Sense Would Allow – Quantum leaps require “uncommon sense.” Rethink your thinking. Be unreasonable. Violate the boundaries of the probable. • Suspend YOUR Disbelief – Act as if your success is certain and proceed boldly. • Focus On Ends Rather Than Means – It is critical you have a clear vision of what you want to accomplish. Solutions and tactics will appear. Draw the map as you go. • Rely On The Unseen Forces – When you focus on your clear vision of what you want to accomplish, and move confidently toward it, unexpected and unknown resources materialize to conspire for your success. • Choose Your Own Set Of Rules – You can never avoid risk, but you can choose which risks you will take. Risk believing in yourself. • Trust In The Power Of The Pursuit – Dreams and big ideas begin to transform into reality when they are pursued, because the world behaves differently when you go after what you want. Disciplined action everyday. • Seek Failure and Learn – Unless you are willing to fail, you will never have the opportunity to test the limits of what you’re capable of accomplishing. • Beware of Comfort – Quantum leaps jerk you out of your comfort zone and places you out on the frontier of new experiences. If you aren’t experiencing discomfort, the risk you are taking probably isn’t worthy of you.
  39. 39. Scale Accelerators Internal “disruption teams” The well timed pivot- model and/or markets Strategic Alliances/Licensing/Pa rtnering
  40. 40. Internal Disruption Teams for Scale
  41. 41. Channel Expansion- GSF
  42. 42. A Shift in Market Space
  43. 43. Shifting to Time Based Model of Service
  44. 44. Your Personal Key Attributes for Disruptive Scale Passion Persistence Peripheral vision
  45. 45. You must be you "To model yourself after Steve Jobs is like, 'I'd like to paint like Picasso, what should I do? Should I use more red?" -- Larry Ellison
  46. 46. Persistence (and Agility)
  47. 47. Peripheral vision
  48. 48. Next Practices Strategy 1. Eliminate What processes or services can you eliminate that your industry has long competed on? (Stop doing) 2. Raise Which services should be raised well above the industry’s standard? (Competitive differentiation) 3. Reduce Which processes or services could be reduced well below the industry’s standard? (Save $ and resources) 4. Create What services/customer satisfaction methods should be created that the industry has never offered? (Start doing)
  49. 49. Reading
  50. 50. Thank YOU! Scott Hamilton 888.857.9722