Intrapreneurship or Extrapreneurship?

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My morning presentation for Alcatel-Lucent Bell Labs, on May 4, 2012.

Whether it's incremental or radical, at its core innovation is about changing the market. To do so, most multinationals start to learn that they also have to adapt from within, and at some point escape from the slow-moving innovation pipeline paradigm. From open innovation to intrapreneurship, many innovation trends have been surfacing to answer this issue. But successful or not, these new paradigms are in many cases a gamble, that doesn't fit in a comprehensive strategic vision. Based on our experience with several blue chip companies and our own research, this short keynote will try to give a clear perspective and ground rules to select and implement new forms of innovation.

Philippe Méda has had several lives in innovation markets: as a biotech researcher with a PhD, as a sales and marketing director in large pharmaceutical corporations, but also as a SME manager. He founded in 2007 Merkapt, a consulting and training agency that copilots the innovation process of startups, incubators and multinationals in Europe and Singapore on highly challenging, fast-growing markets.

Published in: Business, Economy & Finance

Intrapreneurship or Extrapreneurship?

  1. 1. Intro INTRA- ORInnovationUnknown watersReasonable risk?CultureOpenness EXTRAPRENEURSHIP? Alcatel-Lucent / Merkapt Philippe MÉDA, Mai 2012
  2. 2. IntroInnovation Philippe MÉDA / business designerUnknown watersReasonable risk?CultureOpenness
  3. 3. IntroInnovation Our secret sauceUnknown watersReasonable risk?CultureOpenness ( )+( ) Innovative people startups X multinationals X business in transition model
  4. 4. IntroInnovation Innovation as seen in MBAsUnknown watersReasonable risk?CultureOpenness
  5. 5. IntroInnovation (Real life)Unknown watersReasonable risk?CultureOpenness
  6. 6. IntroInnovationUnknown waters Thomas EdisonReasonable risk?CultureOpenness Light bulb inventor or Co-innovator of the energy grid?
  7. 7. IntroInnovation Innovation acceleratesUnknown watersReasonable risk?CultureOpenness
  8. 8. IntroInnovation Really!Unknown watersReasonable risk?CultureOpenness 38 Years 13 Years 4 Years 3 Years 88 Days Time to reach 50 millions users
  9. 9. IntroInnovation Really!Unknown watersReasonable risk?CultureOpenness
  10. 10. IntroInnovation Crisis accelerate furtherUnknown watersReasonable risk?CultureOpenness
  11. 11. IntroInnovation Innovation doesn’t care about your productUnknown watersReasonable risk?CultureOpenness 2002
  12. 12. IntroInnovation Innovation doesn’t care about your productUnknown watersReasonable risk?CultureOpenness
  13. 13. IntroInnovation Innovation doesn’t care about your productUnknown watersReasonable risk?CultureOpenness
  14. 14. IntroInnovation Innovation doesn’t care about your productUnknown watersReasonable risk?CultureOpenness
  15. 15. IntroInnovation Innovation doesn’t care about your productUnknown watersReasonable risk?CultureOpenness Product? Service? Experience? Way of life?
  16. 16. IntroInnovation We don’t see the future*Unknown watersReasonable risk?CultureOpenness «There is little reason for an individual to have a computer in their home» Ken OLSEN, CEO Digital Equipment, 1977
  17. 17. IntroInnovation We don’t see the future*Unknown watersReasonable risk?CultureOpenness
  18. 18. IntroInnovation We don’t see the future*Unknown watersReasonable risk?CultureOpenness «Slow hunch»
  19. 19. IntroInnovation (Even them)Unknown watersReasonable risk?CultureOpenness
  20. 20. IntroInnovation Innovation vs. status quoUnknown watersReasonable risk?CultureOpenness « Within a group of macaques, the last to adopt innovation are alpha males» François TADDEI (Laboratoire de Génétique Moléculaire Evolutive et Médicale, U571 INSERM)
  21. 21. IntroInnovation InnoriskationUnknown watersReasonable risk?CultureOpenness Planification Improvisation Dumb Luck
  22. 22. IntroInnovation Unknown watersUnknown watersReasonable risk?CultureOpenness
  23. 23. IntroInnovation «Here be dragons»Unknown watersReasonable risk?CultureOpenness
  24. 24. IntroInnovation Unknown watersUnknown watersReasonable risk?CultureOpenness Techno risk Will it work? Market risk Will somebody pay for it?
  25. 25. IntroInnovation Unknown watersUnknown watersReasonable risk?CultureOpenness Techno risk Incremental Market risk
  26. 26. IntroInnovation Unknown watersUnknown watersReasonable risk?CultureOpenness Techno risk Significative Incremental Market risk
  27. 27. IntroInnovation Unknown watersUnknown watersReasonable risk?CultureOpenness Techno risk (aka WTF) Rupture Significative Incremental Market risk
  28. 28. IntroInnovation Unknown watersUnknown watersReasonable risk?CultureOpenness Techno risk ROI Horizon Innovation pipeline Market risk RI So M No ny kia
  29. 29. IntroInnovation Unknown watersUnknown watersReasonable risk?CultureOpenness Techno risk (???) Operational Excellence Product Leadership Customer Intimacy Market risk
  30. 30. IntroInnovation Unknown watersUnknown watersReasonable risk?CultureOpenness
  31. 31. IntroInnovation Unknown watersUnknown watersReasonable risk?CultureOpenness Innovation Killers : How Financial Tools Destroy Your Capacity to Do New Things by Clayton M. Christensen, Stephen P. Kaufman, and Willy C. Shih, Harvard Business Review, 2008. DCF Trap Fixed & Sunk Costs Earnings /Share Focus Stage-Gate Innovation
  32. 32. IntroInnovation Unknown watersUnknown watersReasonable risk?CultureOpenness
  33. 33. IntroInnovation Is there such a thing as a reasonable risk?Unknown watersReasonable risk?CultureOpenness
  34. 34. IntroInnovation 3 StrategiesUnknown watersReasonable risk?CultureOpenness Innovation Strategic Intrapreneurship pipeline portfolio
  35. 35. IntroInnovation 3 StrategiesUnknown watersReasonable risk?CultureOpenness Innovation pipeline We know the problem and the solution In-house Status quo x ROI Stock market valuation
  36. 36. IntroInnovation 3 StrategiesUnknown watersReasonable risk?CultureOpenness Innovation Strategic pipeline portfolio We know the problem We know the problem, and the solution and don’t believe there’s a clear solution yet In-house Outsource Status quo Budget x ROI x Skills Stock market valuation
  37. 37. IntroInnovation 3 StrategiesUnknown watersReasonable risk?CultureOpenness Innovation Strategic Intrapreneurship pipeline portfolio We know the problem We know the problem, We don’t really get and the solution and don’t believe there’s a the problem yet, clear solution yet but we are the best to create a solution In-house Outsource In-house? Status quo Budget Politics x ROI x Skills x Freedom Stock market valuation VISION
  38. 38. IntroInnovation Escape velocityUnknown watersReasonable risk?CultureOpenness Intrapreneur Politics x Freedom
  39. 39. IntroInnovation The buccaneer’s guideUnknown watersReasonable risk?CultureOpenness Get a «Privateer letter of marque» Get «Rules of engagement» Navigate out of the pipeline «Steal» resources from BUs Be neither in nor out Trap competition in a guerilla Shortcut decisions Create an open network Flirt with IP infringement Sell mockups and prototypes Pivot when necessary Ramp up... Or fail and learn fast Politics x Freedom
  40. 40. IntroInnovationUnknown watersReasonable risk?Culture Planned innovation vs. Actually doing somethingOpenness mentoring Incubation training consulting coaching ➊ BOOT ➋ BUFF ➌ BOOST «IN» «THROUGH» «OUT» Rules of engagement Explore and fail early Plug in the ecosystem 6 months 6 months 6 months 300 5 prototypes sales 30 ideas 10 3
  41. 41. IntroInnovationUnknown watersReasonable risk?Culture Removing stage gatesOpenness
  42. 42. IntroInnovationUnknown waters Corsairs want to retire (eventually)Reasonable risk?CultureOpenness
  43. 43. IntroInnovationUnknown watersReasonable risk?Culture Why intrapreneurship?Openness #1 Culture #2 Opportunities #3 Resilience 90 99 10 1 Budget Profits Pipe Intra
  44. 44. IntroInnovation #1 CultureUnknown watersReasonable risk?CultureOpenness (Solution: it’s a bank)
  45. 45. IntroInnovation #1 CultureUnknown watersReasonable risk?CultureOpenness «Financial reverse-engineering»
  46. 46. IntroInnovation #1 CultureUnknown watersReasonable risk?CultureOpenness
  47. 47. IntroInnovation #1 CultureUnknown watersReasonable risk?CultureOpenness Eliminate waste Fail early Pivot / Iterate fast Get to actually know customers! Sexy
  48. 48. IntroInnovation Innovation pipelineUnknown watersReasonable risk?CultureOpenness MORE SPECS COMMODITIZE TECHNOLOGY PATENTS SPECIFICATIONS ROI
  49. 49. IntroInnovation Entre / Intra-preneurshipUnknown watersReasonable risk?CultureOpenness CHANGE THE MARKET ADDED BUSINESS ( TECHNOLOGY ) REVENUES VALUE MODEL
  50. 50. IntroInnovationUnknown watersReasonable risk? Degree of opennessCultureOpenness
  51. 51. IntroInnovationUnknown watersReasonable risk? Degree of opennessCultureOpenness Innovators Outsiders Blue Employees Ocean Final Structure BU Startup
  52. 52. IntroInnovationUnknown watersReasonable risk? Degree of opennessCultureOpenness Innovators Open Outsiders Innovation Blue Employees Ocean Final Structure BU Startup
  53. 53. IntroInnovationUnknown watersReasonable risk? Degree of opennessCultureOpenness 1. EXTERNAL R&D Innocentive, P!zer... 2. COOPETITION Mobile, Google, ... Apple, Facebook, 3. WALLED GARDEN Salesforce... OPEN INNOVATION 4. EXTREME ARM, ATI, Qalcomm... EXTERNALIZATION 5. CUSTOMERS DRIVEN INNOVATION P&G, Fiat, Kraft, Starbucks... 6. CROWDSOURCE Fold-it, Ushuhaidi, Open Gvt.
  54. 54. IntroInnovationUnknown watersReasonable risk? Degree of opennessCultureOpenness Innovators Open Outsiders Innovation Blue Employees Intraprenarship Ocean Final Structure BU Startup
  55. 55. IntroInnovationUnknown watersReasonable risk? Degree of opennessCultureOpenness Innovators Open Outsiders Extrapreneurship Innovation Blue Employees Intraprenarship Ocean Final Structure BU Startup
  56. 56. IntroInnovationUnknown watersReasonable risk? Degree of opennessCultureOpenness Outsiders Work Outside Open challenge Investment Open innovation mentoring Acquisition with customers New partnership Co-innovation Incubation New coopetition with partners Spin-o! Public incubators training consulting Research grant coaching Work Inside New version Insiders New product Internships New market Cross-BU creativity New business line Corporate task force New business unit Market research Strategic focus (Reincubation)
  57. 57. IntroInnovationUnknown watersReasonable risk? ExtrapreneurshipCultureOpenness • One place to bind them all 3. WALLED GARDEN • Hardcore integration of user experience Apple, Facebook, • No, or low, barrier of entry to play in Salesforce... • High ramp up potential
  58. 58. IntroInnovationUnknown watersReasonable risk? ExtrapreneurshipCultureOpenness Outsiders Open challenge Work Outside mentoring Open innovation Investment with customers Acquisition Excubation Co-innovation New partnership with partners New coopetition Public incubators Spin-o! Research grant
  59. 59. IntroInnovationUnknown waters InnovationsReasonable risk?CultureOpenness Structure O"re Marché valeur activités et partenaires offre canaux de modes de segments ressources monétisation communication ajoutée clefs stratégiques produits distribution clients MAXIMISER INNOVATION OUVERTE ALLIANCES MICRO SÉRIES PARTAGER L’ADDITION LES CLIENTS DANS «GO GLOBAL» CLIENTS INSOLVABLES WoW, Star Wars, Dofus, InnoCentive, Spigit TEMPORAIRES Zynga, Shapeways, Crowdfinancing, L’ENTREPRISE cavissima.com, levin2.0, myrecyclestuff Disney merkapt, DavidS vs. archiduchesse friendsclear, tupperware, pesinet.org, think as a website - go Goliath, bundle of apps mymajorcompany, clicboutique, global, jedepose.com RECRUTER LE CLIENT wyseed, lookatmygame, DÉPLACEMENT goldenhook, REVENIR AU COEUR Beta tests, Apple At Home CUSTOMISATION DE macminicolo.net, blue ocean supermarmite IBM, Seesmic, Zodiac Advisors, Labotec COOPÉTITION MASSE colocation, location «GO LOCAL» IBM / Oracle, Microsoft / Maqet.com d’actifs, myfab parenco.org, Mozilla, logiciel libre, GUÉRILLA DESTRUCTION COLLISION DES «CROWDSOURCE» Peugeot 107 / Toyota tupperware, pesinet.org, CRÉATIVE BESOINS Wikipedia, Guerra RECYCLER / REMIXER CHANGER LA «GO GLOCAL» Creativa, Eyeka, Aygo / Citroën C1 clicboutique, franchiser Hôtel hospitalier (H. Carrefour City GRANULARITÉ Dieu), tourisme médical 99designs, iStockphoto MARCHÉS EN FRACTALISER KIndle singles, location CONSTRUIRE UN auto, payer à la conso PACKAGER CASCADES Smart 4x4 LONGUE TRAÎNE ÉCOSYSTÈME Zeri, propagation «BOTTOM-UP» «NO FACTORY» Amazon, Zappos P&G, GE... Nike Google / Apple apps vs. STATUFIER Microsoft, Facebook / TRANSFORMER EN TARIFICATION Rolex, Channel 5, Zynga vs. Myspace, DYNAMIQUE COURT-CIRCUITER SERVICE McDonald’s MINIMALISME EXTERNALISATION Salesforce offre / demande, temps iTunes, Auchan Drive chaud-devant, restoin Google, Craiglists, Alibaba, EXTRÊME réel, matière première / Dropbox, Youtube, Taxi G7 stock «GAMIFY» Slideshare... DÉCALER DANS LE «micro-rewards», morsel, Nokia N9, Logan Dacia, epicwin TEMPS Minecraft, Jolicloud, MICRO REVENUS crèche de nuit, Chrome OS, Boeing Scan recrutement de séniors Eagle «FREE BUSINESS» limiter (freemium, DÉMATÉRIALISER COPIER-COLLER période essai, cathode) , digibidi Jimmy Fairly appâter, sponsoriser ÉLARGIR LA RÉMUNÉRATION $ / recommendation / connaissance BÉNÉFICE MUTUEL
  60. 60. IntroInnovationUnknown watersReasonable risk? ExcubationCultureOpenness
  61. 61. IntroInnovationUnknown watersReasonable risk? If you got it right...CultureOpenness AL - MBA Students? External Incubator IP Hackathon Product International Challenge SDK Bottom-up Innovation
  62. 62. Thanks! Innovation copilotsPhilippe MÉDApmeda@merkapt.com@PMerkapt «I havent failed ... Ive just found 10,000 ways that do not work.»

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