This document outlines how to build an innovation funnel in large organizations. It discusses challenges like stifling innovation and looking for shortcuts. It then presents HPE Software's innovation funnel model as a case study. The model includes four stages - ideation, incubation, seed, and growth. Ideas are submitted and refined through each stage, which involves validating problems/solutions, building MVPs, and handing projects off to businesses. Metrics are used to manage the funnel. The results for HPE show over 600 ideas submitted, 110 incubated, 18 seeded, and 11 grown into projects over two years. It concludes that organizations should start by validating a use case to reduce innovation risks.

1. How to Build an
Innovation Funnel in
Large Organizations

2. Jonathan
6 years old

3. Guy &
Daniella
4 days old

4. Guy &
Daniella
3 years old

5. There is No Magic Pill
for Innovation

6. About myself
Tal Atzmon, Tel Aviv Israel
Passionate Product guy
Worked at startups and enterprises
Lecturer
Startup mentor
In the past 2 years, HPE Software Innovation

7. Today I will talk about
• The challenges in implementing innovation
in a large organization
• The HPE Software Innovation use case

8. Challenge 1:
Organizations are
Killing Innovation

9. The Beehive
Analogy

10. Challenge 2:
Executives are
Looking for Shortcuts

11. Shortcut #1:
Innovation Events
Organizations
Need a Credible
Innovation
Platform

12. Shortcut #2:
Innovation should
be Massive
Focus on Low Cost
Experiments

13. Shortcut #3:
Innovation is
Invention
Every Employee
Should Innovate

15. What is a Low Risk
Innovation?
• Leveraging an existing
technology to a new product
• Upsell existing customers
Service Manager Smart Analytics
• Leveraging an existing
technology to a new market
Windpark Manager

16. HPE Innovation Showcase
How we built a lean Innovation machine
Credible Innovation Platform
Low Cost Experiments
Every Employee Should Innovate

17. IDEATION
INCUBATION
SEED
GROWTH
• 3 months period
• Every employee can submit an idea
• Online forum
• Interact and get feedback
Innovation Funnel

18. IDEATION
INCUBATION
SEED
GROWTH
• Validate Problem/Solution fit
• 10% of their time (½ a day a week)
• Pitch to the Innovation Council
Innovation Funnel

19. IDEATION
INCUBATION
SEED
GROWTH
• Validate Product/Market fit
• R&D and UX resources
• Build an MVP
Innovation Funnel

20. IDEATION
INCUBATION
SEED
GROWTH
• Handover to the business
• Provide guidance
Innovation Funnel

21. IDEATION
INCUBATION
SEED
GROWTH
Lean Experimentation Funnel
HighCost………..…LowCost
• Fail Fast, Fail Cheap
• This operation needs
management and
attention

22. IDEATION
INCUBATION
SEED
GROWTH
Look at Innovation just like
any other product
• Goals and metrics for each stage
• Follow the metrics and improve
Managed Innovation Funnel

23. IDEATION
INCUBATION
SEED
GROWTH
Acquire
• Systematic email marketing campaign
• Targeted email campaigns
• Review the ideas
• Organize idea sourcing events
• Gamification system
Managed Innovation Funnel

24. IDEATION
INCUBATION
SEED
GROWTH
Activate / Retain
• 16 weeks program
• Training
• Lean startup
• Interviewing customers
• Success criteria
• 3 customers who confirm the
problem
• Feasible go-to-market
• Prepare for the Council (VC)
Managed Innovation Funnel

25. IDEATION
INCUBATION
SEED
GROWTH
• Executives attend the meeting
• Opportunity to hear new ideas
• Low risk decisions
• Visibility to executive management
Managed Innovation Funnel

26. IDEATION
INCUBATION
SEED
GROWTH
Retain / Referral
• Test customer interaction and
satisfaction
• Executive mentorship
Managed Innovation Funnel

27. IDEATION
INCUBATION
SEED
GROWTH
• Periodic meetings with the business
unit
Managed Innovation Funnel

28. IDEATION
INCUBATION
SEED
GROWTH
Past 2 Years Results
“Are these good numbers?”
600
110
18
11

29. IDEATION
INCUBATION
SEED
GROWTH
Innovation Team
Head of Innovation
Incubation Manager
Marcom
Designer
Project Manager
Developers

31. How should I start
innovation funnel in
my organization?
One thing I can start today

32. The Core of Organizational Innovation
GROWTH
SEED
INCUBATION
IDEATIONIDEATION
SEED
GROWTH
Show your management
you can reduce the risk
of innovation

33. “
Validate a Use Case,
Not a Platform

34. Thank You!
@talatzmon
tal.atzmon