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Creating ambidextrous enterprises that innovate and grow


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This presentation explores how enterprises can improve their innovation and growth potential by emulating some of the governance from venture capital and private equity portfolio management practices. Contextualising products into their lean product lifecycle stages with their respective intentions of discovering and forming business models or scaling or growing business models changes performance and management practice expectations to better reach desired outcomes. By doing so a company can both innovate and grow across it's portfolio.

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Creating ambidextrous enterprises that innovate and grow

  1. 1. Ambidextrous Enterprises That Innovate & Grow
  2. 2. Company Types ▪ Global Enterprises ▪ FTSE 100 ▪ Private Companies ▪ Private Equity ▪ Venture Capital Backed Startups Domains ▪ Finance/Fintech ▪ ERP/CRM ▪ New Media/Streaming ▪ Education ▪ Publishing ▪ Proptech ▪ IDV/AML 2 Craig Strong CTO & CPO Roles & Focus ▪ Technology & Software ▪ Product ▪ Transformation ▪ Growth ▪ Innovation Craig Strong @craigstrong @LeanPLC
  3. 3. @LeanPLCCraig Strong @craigstrong
  4. 4. 4 1. Innovation Is High Risk 2. Innovation Is Complex 3. Innovation Is Essential To Survive 4. Innovation Is Non-Linear 5. Innovation Is Management Craig Strong @craigstrong @LeanPLC
  5. 5. 5
  6. 6. 6Jeremy Hope, 2003. Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap. Edition. Harvard Business Review Press. Craig Strong @craigstrong @LeanPLC
  7. 7. 7 Larry Downes is co-author, with Paul Nunes, of Big Bang Disruption: Strategy in the Age of Devastating Innovation Disruption Isn’t Gradual Craig Strong @craigstrong @LeanPLC
  8. 8. 8 Previous Success Is Not An Indicator Of Future Success Craig Strong @craigstrong @LeanPLC
  9. 9. 9 Craig Strong @craigstrong @LeanPLC
  10. 10. 10 Enterprises vs (Venture Capital + Private Equity) ● Global venture capital (VC) spend nearly doubled between 2013 to 2016 reaching an estimated $140 billion annually. ● Investment in fintech alone has reached $100 billion since 2010 and this market is growing substantially. ● Private equity (PE) is accumulating record levels of capital for investment, reaching around $1 trillion in 2017. Craig Strong @craigstrong @LeanPLC
  11. 11. 11 “VC investment in Europe reached $24.4bn (£18.9bn) in 2018, surpassing 2017’s record numbers.“ “UK-based deals made up four of Europe’s 10 deals last year, totalling close to $2bn. This includes the region’s two largest deals — $200m raised by Graphcore and $156m raise by property sales company Nested.” Craig Strong @craigstrong @LeanPLC
  12. 12. 12 ~75% Of VC Backed Startups Fail Craig Strong @craigstrong @LeanPLC
  13. 13. 13 X X Big Ideas - Big Bets Craig Strong @craigstrong @LeanPLC
  14. 14. 14 Big Plans Big Budgets Big Systems High Risk Command & Control Behaviours Cost Of Change is High Constrains Innovation Increased Management Overhead Self Perpetuating Risk Craig Strong @craigstrong @LeanPLC
  15. 15. 15 Traditional Governance Reduces Innovation New Ideas Products Long time to marketBottleneck of ideas Strategic force field which limits ideas internally Craig Strong @craigstrong @LeanPLC
  16. 16. 16 Searching vs Executing Venture Capital Private Equity Enterprises Craig Strong @craigstrong @LeanPLC
  17. 17. 17 Enterprise Portfolio Investments 1. Nagji and Tuff propose a magic ratio for companies to allocate resources within a balanced portfolio; i.e. 70 per cent in core, 20 per cent in adjacent and 10 per cent in transformational. 2. This ratio is not fixed and can be adapted depending on company and industry. 3. Not about the exact number of the different types of products within a company. It is about resources and how they are allocated across the different types of innovation. Craig Strong @craigstrong @LeanPLC
  18. 18. The Lean Product Lifecycle Non-Linear Adaptive Process For Product Innovation Craig Strong @craigstrong @LeanPLC
  19. 19. 19 Products = Business Models Craig Strong @craigstrong @LeanPLC
  20. 20. 20 6 Lifecycle Stages IDEA - During this stage, teams use customer and market insights to generate ideas. EXPLORE - The main focus of Explore is to test assumptions about customer needs, problems and job-to-be-done. VALIDATE - During this stage, team use the insights from Explore to develop a solution for customers, test aspects of our business model including pricing, costs and channels. GROW - Now it’s time to take our product to scale. The main focus during Grow is on increasing customer numbers, revenues and profits. SUSTAIN (Cash Cow) - Focus shifts to sustaining revenues and profits, while optimising operations and reducing costs. . RETIRE - Recycle capabilities and technologies. Customers are not inconvenienced by putting in place a plan to mitigate negative effects on customers. Craig Strong @craigstrong @LeanPLC
  21. 21. 21 The Lean Product Lifecycle Craig Strong @craigstrong @LeanPLC
  22. 22. 22 Evolving Customer Profiles Craig Strong @craigstrong @LeanPLC
  23. 23. 23 De-Risking Investment Funding & Evidence Risk Time Idea Explore Validate Grow
  24. 24. 24 Craig Strong @craigstrong @LeanPLC Pitching vs Managing Lean Product Lifecycle Innovation Accounting Financial Controls
  25. 25. 25 Right Questions Right Time Craig Strong @craigstrong @LeanPLC
  26. 26. 26 Spread Bet Ideas Craig Strong @craigstrong @LeanPLC
  27. 27. 27 Venture Many Bets-Learn Fast Craig Strong @craigstrong @LeanPLC
  28. 28. 28 Geographic Lifecycle Stages Craig Strong @craigstrong @LeanPLC
  29. 29. 29 Adaptive Management Over Process Conformity Craig Strong @craigstrong @LeanPLC
  30. 30. 30 Exploration Vs Execution Recognising Culture Craig Strong @craigstrong @LeanPLC
  31. 31. 31 Communicating Knowledge Craig Strong @craigstrong @LeanPLC
  33. 33. 33 Key Points 1. Governance Is Contextual By Stage 2. Funding Over Budgeting Enables Innovation & Emergence 3. The Product Lifecycle Is Not Linear 4. Enterprises Simultaneously Search & Explore 5. Bet Small & Many Over Bet Big & Few Craig Strong @craigstrong @LeanPLC
  34. 34. Thanks! Any questions? You can find me at ▪ @craigstrong ▪ ▪ 34 Craig Strong @craigstrong @LeanPLC