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Innovation In The Age of R&D

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We are witnessing the acceleration of technology development like never before! In fact, for the first time in history, we reached a point where technology acceleration is faster than our ability as humans to adapt to it. Yet despite all that, Fewer and fewer top management are happy with their companies' innovation efforts. I believe there are 4 reasons why.

Published in: Business

Innovation In The Age of R&D

  1. 1. INNOVATION IN THE AGE OF R&D #withNOVUS www.novuseg.com
  2. 2. TIME RATEOFCHANGE TECHNOLOGY HUMAN ADAPTABILITY WE ARE HERE
  3. 3. Source: PWC- Global Innovation 1000 survey-2017 $702 billion SPENT ON R&D IN 2017 BY THE THE WORLD'S 1,000 MOST “INNOVATIVE” COMPANIES
  4. 4. $22.6B $16.6B $14.9B $14.8B $13.9B $13.3B $13.1B $12.1B $11.5B $10.6B TOP 10 COMPANIES SPENDING ON R&D-2017 Source: Bloomberg, company reports, strategy & global innovation, 1000, OECD
  5. 5. Source: PWC- Global Innovation 1000 survey-2017 3.2%INCREASE IN BUDGET FROM 2016
  6. 6. Source: McKinsey Global Innovation Survey- McKinsey & Company 6%SATISFIED WITH INNOVATION EFFORT
  7. 7. WHY?
  8. 8. 1
  9. 9. MISTAKE TRADITIONAL R&D FOR INNOVATION
  10. 10. TRADITIONAL R&D FOCUSES ON NEW TECH DEVELOPMENT
  11. 11. WITH THE AIM TO TRANSFORM IT INTO A COMMERCIAL PRODUCT
  12. 12. INNOVATION = CREATIVITY + DELIVERY Source: McKinsey & Company
  13. 13. SUSTAINABLE BUSINESS MODEL Source: The Corporate Startup by Dan Toma, E. Gons, Tendayi Viki INNOVATION = SOMETHING NEW +
  14. 14. SUSTAINABLE BUSINESS MODEL INNOVATION = IMPACTFUL CREATIVITY +
  15. 15. COMPONENTS OF SUCCESSFUL INNOVATION COULD NOT BE DEFINED JUST BY TRADITIONAL TECH R&D
  16. 16. WE NEED SOMETHING ELSE
  17. 17. BUSINESS R&D
  18. 18. BUSINESS R&D THE SEARCH FOR VALUE PROPOSITIONS THAT CREATE VALUE FOR A SPECIFIC CUSTOMER Source: Strategyzer Blog- Article by Alex Osterwalder
  19. 19. & IS EMBEDDED IN BUSINESS MODELS THAT CAN PROFITABLY GROW & SCALE. BUSINESS R&D Source: Strategyzer Blog- Article by Alex Osterwalder
  20. 20. SUBSCRIPTION
  21. 21. SUBSCRIPTION
  22. 22. SUBSCRIPTION USAGE FEES
  23. 23. INNOVATION ≠ NEW TECH
  24. 24. INNOVATION = CREATING VALUE FOR THE CUSTOMER & BY THE CUSTOMER
  25. 25. 2
  26. 26. TURNING INNOVATION TO A RISKY DESTINATION!
  27. 27. Time Risk $$$$$ Product Development Release & Validate
  28. 28. Time Risk Learn & Iterate Learn & Iterate Learn & Iterate Learn & Iterate Test Test Test Test $ $ $ $
  29. 29. “When you fall in love with the problem and not the solution it opens your mind up in a really different way.” Kathy Fish, CTO Procter & Gamble
  30. 30. INNOVATION IS A LEARNING INVESTMENT/JOURNEY
  31. 31. 3
  32. 32. LEAVE INNOVATION OUT OF STRATEGY!
  33. 33. YOUR BUSINESS MODEL IS YOUR FORT!
  34. 34. VALUE TIME H1 H2 H3 KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL
  35. 35. VALUE TIME HOLD H1 H2 H3 KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL
  36. 36. VALUE TIME HOLD GROW H1 H2 H3 KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL
  37. 37. VALUE TIME HOLD GROW CREATE H1 H2 H3 KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL
  38. 38. VALUE TIME HOLD GROW CREATE H1 H2 H3 KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL “SIMULTANEOUSLY MANAGE THE PRESENT & INVENT THE FUTURE.” YVES PIGNEUR
  39. 39. BUSINESS R&D SPECTRUM HOLD GROW CREATE
  40. 40. HOLD THE FORT?
  41. 41. HOLD THE FORT?
  42. 42. HOLD THE FORT?
  43. 43. HOLD THE FORT?
  44. 44. HOLD THE FORT?
  45. 45. HOLD THE FORT?
  46. 46. HOLD THE FORT?
  47. 47. HOLD THE FORT?
  48. 48. HOLD THE FORT?
  49. 49. HOLD THE FORT?
  50. 50. HOLD THE FORT? HOW CAN WE DEFEND & IMPROVE CORE BUSINESS MODEL?
  51. 51. GROW THE FORT?
  52. 52. GROW THE FORT?
  53. 53. GROW THE FORT?
  54. 54. GROW THE FORT?
  55. 55. GROW THE FORT?
  56. 56. GROW THE FORT?
  57. 57. GROW THE FORT?
  58. 58. GROW THE FORT?
  59. 59. GROW THE FORT? HOW CAN WE EXPAND & UPGRADE CURRENT BUSINESS MODELS?
  60. 60. GROW THE FORT? HOW CAN WE EXPAND & UPGRADE CURRENT BUSINESS MODELS?
  61. 61. CREATE NEW FORT?
  62. 62. CREATE NEW FORT?
  63. 63. CREATE NEW FORT? HOW CAN WE CREATE NEW BUSINESS MODELS?
  64. 64. DESIRABILITYFEASIBILITY VIABILITY CREATE NEW FORT? ADAPTABILITY
  65. 65. DESIRABILITYFEASIBILITY VIABILITY CREATE NEW FORT? ADAPTABILITY SHOULD WE DO IT?
  66. 66. DESIRABILITYFEASIBILITY VIABILITY CREATE NEW FORT? ADAPTABILITY SHOULD WE DO IT?CAN WE DO IT?
  67. 67. DESIRABILITYFEASIBILITY VIABILITY CREATE NEW FORT? ADAPTABILITY SHOULD WE DO IT?CAN WE DO IT? IS IT WORTH IT?
  68. 68. DESIRABILITYFEASIBILITY VIABILITY CREATE NEW FORT? ADAPTABILITY SHOULD WE DO IT?CAN WE DO IT? IS IT WORTH IT? WILL IT ADAPT & COMPETE?
  69. 69. FREQUENCY DEGREE OF CHANGE
  70. 70. FREQUENCY DEGREE OF CHANGE
  71. 71. FREQUENCY DEGREE OF CHANGE PROCESS INNOVATION IMPROVING THE WAY YOU DO BUSINESS
  72. 72. FREQUENCY DEGREE OF CHANGE PROCESS INNOVATION IMPROVING THE WAY YOU DO BUSINESS
  73. 73. FREQUENCY DEGREE OF CHANGE PROCESS INNOVATION PRODUCT/SERVICE INNOVATION IMPROVING THE WAY YOU DO BUSINESS NEW OFFERINGS FOR CUSTOMERS
  74. 74. FREQUENCY DEGREE OF CHANGE PROCESS INNOVATION PRODUCT/SERVICE INNOVATION IMPROVING THE WAY YOU DO BUSINESS NEW OFFERINGS FOR CUSTOMERS
  75. 75. FREQUENCY DEGREE OF CHANGE BUSINESS MODEL INNOVATION PROCESS INNOVATION PRODUCT/SERVICE INNOVATION IMPROVING THE WAY YOU DO BUSINESS NEW OFFERINGS FOR CUSTOMERS LAUNCHING NEW BUSINESSES
  76. 76. VALUE TIME HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL
  77. 77. VALUE TIME HOLD GROW CREATE 12-18 MONTHS HOW CAN WE DEFEND & IMPROVE CORE BUSINESS MODEL? KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL
  78. 78. VALUE TIME HOLD GROW CREATE 12-18 MONTHS 2-5 YEARS HOW CAN WE DEFEND & IMPROVE CORE BUSINESS MODEL? HOW CAN WE EXPAND & UPGRADE CURRENT BUSINESS MODELS? KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL
  79. 79. VALUE TIME HOLD GROW CREATE 12-18 MONTHS 2-5 YEARS > 5 YEARS HOW CAN WE DEFEND & IMPROVE CORE BUSINESS MODEL? HOW CAN WE EXPAND & UPGRADE CURRENT BUSINESS MODELS? HOW CAN WE CREATE NEW BUSINESS MODELS? KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL
  80. 80. VALUE TIME HOLD GROW CREATE 12-18 MONTHS 2-5 YEARS > 5 YEARS HOW CAN WE DEFEND & IMPROVE CORE BUSINESS MODEL? HOW CAN WE EXPAND & UPGRADE CURRENT BUSINESS MODELS? HOW CAN WE CREATE NEW BUSINESS MODELS? KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET
  81. 81. VALUE TIME HOLD GROW CREATE 12-18 MONTHS 2-5 YEARS > 5 YEARS HOW CAN WE DEFEND & IMPROVE CORE BUSINESS MODEL? HOW CAN WE EXPAND & UPGRADE CURRENT BUSINESS MODELS? HOW CAN WE CREATE NEW BUSINESS MODELS? KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET
  82. 82. VALUE TIME HOLD GROW CREATE 12-18 MONTHS 2-5 YEARS > 5 YEARS HOW CAN WE DEFEND & IMPROVE CORE BUSINESS MODEL? HOW CAN WE EXPAND & UPGRADE CURRENT BUSINESS MODELS? HOW CAN WE CREATE NEW BUSINESS MODELS? KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET
  83. 83. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET
  84. 84. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997
  85. 85. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997
  86. 86. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997
  87. 87. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997 2005
  88. 88. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997
  89. 89. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997 2007
  90. 90. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997 2007
  91. 91. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997 2010
  92. 92. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997 2010
  93. 93. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997 2012 2010
  94. 94. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997 2010 2016
  95. 95. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997 2016 2016
  96. 96. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 1997 2016 2016
  97. 97. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 2016 2016 2016
  98. 98. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 2016 2016 2016
  99. 99. HOLD GROW CREATE KNOWN BUSINESS MODEL UNKNOWN BUSINESS MODEL EXECUTION MINDSET INNOVATION MINDSET 2016 2016 2016
  100. 100. INNOVATION IS ABOUT PREPARING FOR THE FUTURE!
  101. 101. 4
  102. 102. WRONGLY APPLY EXECUTION MINDSET TO INNOVATE!! EXECUTION MINDSET INNOVATION MINDSET
  103. 103. EXECUTION MINDSET INNOVATION MINDSETVS Source: Strategyzer Blog- Article by Alex Osterwalder
  104. 104. EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  105. 105. EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  106. 106. OBJECTIVE EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  107. 107. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS OBJECTIVE EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  108. 108. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING OBJECTIVE EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  109. 109. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING OBJECTIVE METRICS EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  110. 110. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING KPIS & FINANCIAL RESULTS OBJECTIVE METRICS EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  111. 111. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING TESTING ASSUMPTIONS/ HYPOTHESIS (TRUE/FALSE) KPIS & FINANCIAL RESULTS OBJECTIVE METRICS EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  112. 112. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING TESTING ASSUMPTIONS/ HYPOTHESIS (TRUE/FALSE) KPIS & FINANCIAL RESULTS OBJECTIVE METRICS RISKS EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  113. 113. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING TESTING ASSUMPTIONS/ HYPOTHESIS (TRUE/FALSE) KPIS & FINANCIAL RESULTS BEING DISRUPTED BY COMPETITORS OBJECTIVE METRICS RISKS EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  114. 114. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING TESTING ASSUMPTIONS/ HYPOTHESIS (TRUE/FALSE) KPIS & FINANCIAL RESULTS BEING DISRUPTED BY COMPETITORS IMPLEMENTING AN IDEA THAT WON’T WORK OBJECTIVE METRICS RISKS EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  115. 115. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING TESTING ASSUMPTIONS/ HYPOTHESIS (TRUE/FALSE) KPIS & FINANCIAL RESULTS BEING DISRUPTED BY COMPETITORS IMPLEMENTING AN IDEA THAT WON’T WORK OBJECTIVE METRICS RISKS FAILURE EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  116. 116. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING TESTING ASSUMPTIONS/ HYPOTHESIS (TRUE/FALSE) KPIS & FINANCIAL RESULTS BEING DISRUPTED BY COMPETITORS IMPLEMENTING AN IDEA THAT WON’T WORK OBJECTIVE METRICS RISKS NOT AN OPTION! FAILURE EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  117. 117. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING TESTING ASSUMPTIONS/ HYPOTHESIS (TRUE/FALSE) KPIS & FINANCIAL RESULTS BEING DISRUPTED BY COMPETITORS IMPLEMENTING AN IDEA THAT WON’T WORK OBJECTIVE METRICS RISKS NOT AN OPTION! PART OF THE ITERATIVE LEARNING PROCESSFAILURE EXECUTION MINDSET INNOVATION MINDSETVS HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  118. 118. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING TESTING ASSUMPTIONS/ HYPOTHESIS (TRUE/FALSE) KPIS & FINANCIAL RESULTS BEING DISRUPTED BY COMPETITORS IMPLEMENTING AN IDEA THAT WON’T WORK OBJECTIVE METRICS RISKS NOT AN OPTION! PART OF THE ITERATIVE LEARNING PROCESSFAILURE EXECUTION MINDSET INNOVATION MINDSETVS COST OF FAILURE HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  119. 119. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING TESTING ASSUMPTIONS/ HYPOTHESIS (TRUE/FALSE) KPIS & FINANCIAL RESULTS BEING DISRUPTED BY COMPETITORS IMPLEMENTING AN IDEA THAT WON’T WORK OBJECTIVE METRICS RISKS NOT AN OPTION! PART OF THE ITERATIVE LEARNING PROCESSFAILURE EXECUTION MINDSET INNOVATION MINDSETVS COST OF FAILURE NEGATIVE OUTCOME TO BE PUNISHED HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  120. 120. ACHIEVE BEST POSSIBLE FINANCIAL RESULTS REDUCING UNCERTAINTY BY LEARNING AND MEASURING TESTING ASSUMPTIONS/ HYPOTHESIS (TRUE/FALSE) KPIS & FINANCIAL RESULTS BEING DISRUPTED BY COMPETITORS IMPLEMENTING AN IDEA THAT WON’T WORK OBJECTIVE METRICS RISKS NOT AN OPTION! PART OF THE ITERATIVE LEARNING PROCESSFAILURE EXECUTION MINDSET INNOVATION MINDSETVS COST OF FAILURE INVESTMENT TO LEARN WHAT WORKS AND WHAT DOESN’T NEGATIVE OUTCOME TO BE PUNISHED HIGHPREDICTABILITY LOWPREDICTABILITY Source: Strategyzer Blog- Article by Alex Osterwalder
  121. 121. ARE YOU READY TO INNOVATE?
  122. 122. GROWTH FIXED
  123. 123. GROWTH FIXED LIFE IS A PASS/FAIL TEST
  124. 124. GROWTH FIXED LIFE IS A PASS/FAIL TESTLIFE IS AN OPPORTUNITY FOR GROWTH
  125. 125. GO FOR CHALLENGES GROWTH FIXED LIFE IS A PASS/FAIL TESTLIFE IS AN OPPORTUNITY FOR GROWTH
  126. 126. GO FOR CHALLENGES AVOID CHALLENGES GROWTH FIXED LIFE IS A PASS/FAIL TESTLIFE IS AN OPPORTUNITY FOR GROWTH
  127. 127. GO FOR CHALLENGES AVOID CHALLENGES GROWTH FIXED LIFE IS A PASS/FAIL TESTLIFE IS AN OPPORTUNITY FOR GROWTH GIVE UP EASILY
  128. 128. GO FOR CHALLENGES AVOID CHALLENGES GROWTH FIXED LIFE IS A PASS/FAIL TESTLIFE IS AN OPPORTUNITY FOR GROWTH PERSIST GIVE UP EASILY
  129. 129. GO FOR CHALLENGES AVOID CHALLENGES GROWTH FIXED LIFE IS A PASS/FAIL TESTLIFE IS AN OPPORTUNITY FOR GROWTH PERSIST GIVE UP EASILY WORK TO BECOME MASTER
  130. 130. GO FOR CHALLENGES AVOID CHALLENGES GROWTH FIXED LIFE IS A PASS/FAIL TESTLIFE IS AN OPPORTUNITY FOR GROWTH PERSIST GIVE UP EASILY WORK TO BECOME MASTER EFFORTS ARE USELESS
  131. 131. INNOVATION IS A MINDSET & A JOURNEY!

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