Innovation Compass                               How to develop a market and build                                    a su...
Innovation Compass:                       Knowledge Center Entrepreneurship &                                       Busine...
Innovation Compass:                   Knowledge Center Entrepreneurship &                                   Business Innov...
Innovation Compass:                                        Challenges that will be addressed                              ...
Innovation Compass                                                                    Some facts and figures:       Commer...
Innovation Compass:                                       Which lenses do you use?               Industry        • Externa...
Innovation Compass:                         Market Development Models                     Planning Overview               ...
Innovation Compass:                                  Market Development Models                                            ...
Innovation Compass:                                                      Diamonds of success                             A...
Sensing (Connecting)                                                                 Capabilities                    “Our ...
Scaling (Shaping)                                                                 Capabilities                      “Be en...
Collaborating Capabilities                     “If I could go back in time, I would definitely evaluate,                  ...
Capturing (Seizing) Capabilities            “As long as you have not elevated the discussion to a higher level of         ...
Leading Capabilities                “People who lead frequently bear scars from their efforts to bring about              ...
Innovation Compass:                   Top Reasons Why First-Time Entrepreneurs Fail                                  Lesso...
Innovation Compass:                   Top Reasons Why First-Time Entrepreneurs Fail                                  Lesso...
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briefing Innovation Compass (by Guy Bauwen)

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briefing Innovation Compass (by Guy Bauwen)

  1. 1. Innovation Compass How to develop a market and build a successful business iLab Turning innovation into business Prof. Dr. Guy Bauwen Director Knowledge Center Entrepreneurship & Business Innovation Rotterdam University of Applied Sciences g.a.bauwen@hr.nl Rotterdam, September 18, 201219-9-2012 Copyright Dr. Guy Bauwen - 2012 1
  2. 2. Innovation Compass: Knowledge Center Entrepreneurship & Business Innovation Innovation Entrepreneurship Major activities: 1. Knowledge Development.International Marketing Knowledge Center 2. Knowledge transfer. Entrepreneurship & Business 3. Knowledge dissemination. Innovation Finance Creativity 4. Knowledge valorization. 5. Knowledge Funding. Attitudes & Labor Talent Practices A strong team of proven academic and business domain experts. Relevant & rigor research projects in collaboration with educators & students 19-9-2012 Copyright Dr. Guy Bauwen - 2012 2
  3. 3. Innovation Compass: Knowledge Center Entrepreneurship & Business Innovation Research domain: the innovation life cycle. Fuzzy End Front 1 2 3 4 Game End ① ② ③ ④ Filter Develop Grow Manage Upstream: ideation, filtering, incubation, new product development are critical.Downstream: introducing, accelerating, managing & pruning are important stages. 9/19/2012 © Bauwen Consulting - 2011. 3
  4. 4. Innovation Compass: Challenges that will be addressed • Why is the growth race into new territory Organisation for new ventures so challenging? • How do most new ventures confront theMarketing Strategy brutal external and internal realities? • Why fail most new ventures to deliver the desired and expected outcome? Sales Innovation • How can new ventures influence their destiny and reach their destination? Entrepreneurship • Which diagnostics, tools & techniques can new ventures use to succeed? Innovation and entrepreneurship are on top of the agenda … Why is the mortality rate so high? What can we learn from successes & disasters? 19-9-2012 Copyright Dr. Guy Bauwen - 2012 4
  5. 5. Innovation Compass Some facts and figures: Commercialisation not a regular Absence of formal processes leadership subject ad-hoc decisions 33% 60% 67% 40% 32% 44% 10% 68% 56% 90% Time-to-Volume Not satisfied with not monitored innovation measurements Not satisfied & underperform at the commercialisation stage19-9-2012 Copyright Dr. Guy Bauwen - 2012 5
  6. 6. Innovation Compass: Which lenses do you use? Industry • External view Attractiveness • Five forces: industry attractiveness Resource Based • Internal view & uniquenes View • Resources, processes, values Resource • Complement your resources Dependency View • Leverage external resources Dynamic • Adapt to the environment Capabilities • Adaptability & agility & alignment • The sky the limit Strategic Intent • Stretch & go for it19-9-2012 Copyright Dr. Guy Bauwen - 2012 6
  7. 7. Innovation Compass: Market Development Models Planning Overview Understanding the battlefield & the context Market dynamics Part 1 Competitive positions & moves Assessing alternatives for the company, customers, strategies Determining objectives & goals Part 2 Translating strategies in actions Blueprint for action Monitoring key indicators19-9-2012 Copyright Dr. Guy Bauwen - 2012 7
  8. 8. Innovation Compass: Market Development Models Opportunities 3 VisionDesired Barriers Intent GoalsOutcome 2 Threats External forcesResourcesProcesses StrategyValues 1 Mission DriversStrenghts Internal forces Weaknesses Time19-9-2012 Copyright Dr. Guy Bauwen - 2012 8
  9. 9. Innovation Compass: Diamonds of success Ambidextrous Speed of Monitoring & Measuring Decision Making Scaling Connecting Sensing Synchronizing Screening Internally / Externally Stretching Strategic Seizing Intent19-9-2012 Copyright Dr. Guy Bauwen - 2012 9
  10. 10. Sensing (Connecting) Capabilities “Our approach for capturing insights was inadequate for embryonic markets” Core Routing Manager Sensing is about identifying new growth opportunities, selecting targets, and acting with agility & anticipating. o Seeing/Listening: have antennas in position; continuously explore external and internal opportunities. o Filtering/Interpreting: filter your knowledge, make choices, determine priorities, take actions. o Decision making speed: act with agility = adaptability + speed and execute as a laser beam. “Sensing requires you are open to the world ... You don’t wait until opportunities come to you”19-9-2012 Copyright Dr. Guy Bauwen - 2012 10
  11. 11. Scaling (Shaping) Capabilities “Be enthusiastic, show passion, but remain with both feet on the ground”. Scaling is tailoring and modularizing offerings and influencing the way the market develops Shaping o Scaling right: is about tailoring and bundling your offering and determining your positioning. o Scaling down: is about modularizing, simplifying and optimizing the time to close your orders. o Scaling up: is about serving demand directly and Growth is oxigen indirectly influencing the way the market develops. “In the battlefield there is no time for learning and watching, but for the right and the fastest execution”19-9-2012 Copyright Dr. Guy Bauwen - 2012 11
  12. 12. Collaborating Capabilities “If I could go back in time, I would definitely evaluate, select much faster strategic partnerships, decide with a sense of urgency”. Collaborating starts by assessing and selecting the right partner at the right time and do the right things. o Screening: assess fit and attractiveness of existing and new partners. o Selecting: make sure the right partners are chosen and the right mix of partners are active. o Sharing: walk the talk and exchange knowledge. “Don’t just relate … Collaborate“.19-9-2012 Copyright Dr. Guy Bauwen - 2012 12
  13. 13. Capturing (Seizing) Capabilities “As long as you have not elevated the discussion to a higher level of business talk, you remain in the technical doldrums”. Seizing capabilities is about making the right decisions and executing with discipline o Seizing: making the right decisions and executing with discipline. o Spearheading: getting the time to close an order under control, to keep promises. o Synchronizing: make sure the organization is operationally in line with the market. “Measurements drive management decisions & actions”.19-9-2012 Copyright Dr. Guy Bauwen - 2012 13
  14. 14. Leading Capabilities “People who lead frequently bear scars from their efforts to bring about adaptive change. Often they are silenced. On occasion they are killed.”. Leading capabilities are ambidexterous, are able to confront constructive conflicts & leverage dialogues o Mobilizing: energizing & motivating the stakeholders to move ahead. o Strategic conflict & dialogues: using constructive conflict to navigate thru any situation. o Dynamic stability & ambidexterity: being real time aligned with the environment. “Achievers ignore the boundaries of the old and have the courage to explore the new”19-9-2012 Copyright Dr. Guy Bauwen - 2012 14
  15. 15. Innovation Compass: Top Reasons Why First-Time Entrepreneurs Fail Lessons for young entrepreneurs 1. Limited business opportunities. Not every good idea can become a great business. Just because you passionately believe that your product or service is great, and everyone needs it, doesn’t mean that everyone will buy it. There is no substitute for market research. 2. No written plan. Don’t believe the myth that a business plan isn’t worth the effort. The discipline of writing down a plan is the best way to make sure you actually understand how to transform your idea into a business. 3. No revenue model. Even a non-profit has to generate revenue to offset operating costs. If your product is free, or you lose money on every sale, it’s hard to make it up in volume. If your customers have no money, your business won’t last long. 4. No intellectual property. If you expect to seek investors, or you expect to have a sustainable competitive advantage against giants in your industry, you need to register for patents, trademarks and copyrights, as well as enlist non-compete and non-disclosure agreements to protect trade secrets. Intellectual property is also often the largest element of early-stage company valuations for professional investors. 5. Too much competition. Having no competitors is a red flag - it may mean there’s no market - but finding ten or more with a simple Google search means your area of interest may be a crowded. Remember, sleeping giants can wake up. So, don’t assume that Microsoft or Procter & Gamble are too big and slow for you to worry about. Source: Martin Zwilling, Entrepreneur, September 15, 2012.19-9-2012 Copyright Dr. Guy Bauwen - 2012 15
  16. 16. Innovation Compass: Top Reasons Why First-Time Entrepreneurs Fail Lessons for young entrepreneurs 1. Can’t execute. When young entrepreneurs come to me with that “million dollar idea,” I have to tell them that an idea alone is really worth nothing. It’s all about the execution. If you’re not comfortable making hard decisions and taking risks, you won’t do well in this role. 2. An inexperienced team. In reality, investors fund people, not ideas. They look for people with real experience in the business domain of the startup, and people with real experience running a startup. If this is your first time around, find a partner who has “been there and done that” to balance your passion and bring experience to the team. 3. Underestimating resource requirements. A major resource is cash funding, but other resources, such as industry contacts and access to marketing channels may be more important for certain products. Having too much cash, not managed wisely, can be just as devastating as too little cash. Don’t quit your day job until new revenue is flowing. 4. Not enough marketing. Having a slick word-of-mouth marketing strategy isn’t enough to make your product and brand visible in the relentless onslaught of new media out there today. Even viral marketing costs real money and time. Without effective and innovative marketing across the range of media, you won’t have customers - or a business. 5. Giving in too early. The most common cause of startup failure is the entrepreneur just gets tired, gives up and shuts down the company. Despite setbacks, many successful entrepreneurs like Steve Jobs and Thomas Edison kept their vision until they found success. Source: Martin Zwilling, Entrepreneur, September 15, 2012.19-9-2012 Copyright Dr. Guy Bauwen - 2012 16

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