SlideShare a Scribd company logo
1 of 111
Download to read offline
Dealing With Disruption: 
How to Think Like a Start-Up Leader 
in a Large Organization 
Steve Blank 
steveblank.com 
@sgblank
Startups Are Not 
Smaller Versions of 
Large Companies
Startups Are Not Smaller Versions of 
Large Companies 
Large Companies Execute 
Known Business Models
Startups Are Not Smaller Versions of 
Large Companies 
Startups Search for 
Unknown Business Models
What’s A Startup? 
Search Build Execute 
A Startup is a temporary organization 
used to search for a repeatable and 
scalable business model 
Startup 
Large 
Company 
Transition
Startups Search and Pivot 
The Search for the Business Model 
Scalable 
Startup 
Large 
Company 
Transition
Startups Search and Pivot 
The Search for the Business Model 
Scalable 
Startup 
Large 
Company 
Transition 
Search for a Business Model 
- customer needs/product features 
i.e. Product/Market fit 
- Found by founders, not employees 
- Repeatable sales model
Startups Search, Companies Execute 
The Search for the Business Model The Execution of the Business Model 
Scalable 
Startup 
Large 
Company 
Transition
Startups Search, Companies Execute 
The Search for the Business Model The Execution of the Business Model 
Scalable 
Startup 
Large 
Company 
Transition 
Execution 
- Profitable 
- Repeatable 
- Scale 
- Job spec’s 
- Process
Learning Metrics Vs Accounting/KPI’s 
Scalable 
Startup 
The Execution of the Business Model 
Large 
Company 
Transition
Learning Metrics Vs Accounting/KPI’s 
Scalable 
Startup 
The Execution of the Business Model 
Large 
Company 
Transition 
Accounting/KPI’s 
- Balance Sheet 
- Cash Flow Statement 
- Income Statement 
- Return on Net Assets 
- Return on Capital
Learning Metrics Vs Accounting/KPI’s 
The Search for the Business Model 
Scalable 
Startup 
Large 
Company 
Transition 
Startup Metrics 
- Customer Acquisition Cost 
- Viral coefficient 
- Customer Lifetime Value 
- Average Selling Price/Order Size 
- Monthly burn rate 
- etc.
Customer Validation Versus Sales 
Scalable 
Startup 
The Execution of the Business Model 
Large 
Company 
Transition 
Sales 
- Sales Organization 
- Scalable 
- Price List/Data Sheets 
- Revenue Plan
Customer Validation Versus Sales 
The Search for the Business Model 
Scalable 
Startup 
Large 
Company 
Transition 
Customer Validation 
- Early Adopters 
- Pricing/Feature unstable 
- Not yet repeatable 
-“One-off’s” 
- Done by founders
Customer Development Versus 
Scalable 
Startup 
Product Management 
The Execution of the Business Model 
Large 
Company 
Transition 
Product Management 
- Delivers MRD’s 
- Feature Spec’s 
- Competitive Analysis 
- Prod Mgmt driven
Customer Development Versus 
Product Management 
The Search for the Business Model 
Scalable 
Startup 
Large 
Company 
Transition 
Customer Development 
- Hypothesis Testing 
- Minimum Feature Set 
- Pivots 
- Founder-driven
Scalable 
Startup 
Engineering Versus 
Agile Development 
The Execution of the Business Model 
Large 
Company 
Transition 
Engineering 
- Requirements Docs. 
- Waterfall Development 
- QA 
- Tech Pubs
Engineering Versus 
Agile Development 
The Search for the Business Model The Execution of the Business Model 
Scalable 
Startup 
Large 
Company 
Transition 
Agile Development 
- Continuous Deployment 
- Continuous Learning 
- Self Organizing Teams 
- Minimum Feature Set 
- Pivots 
Engineering 
- Requirements Docs. 
- Waterfall Development 
- QA 
- Tech Pubs
Startups Model, Companies Plan 
Scalable 
Startup 
The Execution of the Business Model 
Large 
Company 
Transition 
Business Plan 
- Plan describes “knowns” 
- Known features for line extensions 
- Known customers/markets 
- Known business model
Startups Model, Companies Plan 
The Search for the Business Model 
Scalable 
Startup 
Large 
Company 
Transition 
Business Model 
- Unknown customer needs 
- Unknown feature set 
- Unknown business model 
- Model found by iteration 
The Execution of the Business Model
Startups Protect Mavericks, 
Companies Fire Mavericks 
Scalable 
Startup 
The Execution of the Business Model 
Large 
Company 
Transition 
- Pains in the butt 
- Always looking at something different 
- Doesn’t get with the program
Startups Protect Mavericks, 
Companies Fire Mavericks 
The Search for the Business Model 
Scalable 
Startup 
Large 
Company 
Transition 
- CEO of your company 
- Finds your next market
Strategy and Structure 
Apologies to Alfred Chandler
1870’s: Organize by Functions 
• Problem Companies going from local to regional to national. 
Specialized skills needed 
• Strategy Separate ownership from professional management 
• Structure Organize into functions: Sales, Mfg, Finance, Marketing 
• Tools Organization Chart 
• Leaders U.S. Steel, Standard Oil, Pennsylvania Railroad
CEO 
Organize by Functions 
Sales Marketing 
Engineering Finance 
… 
… 
… 
… 
… 
… 
… 
… 
… 
… 
… 
… 
Mfg 
… 
… 
…
1920’s: Organize by Divisions 
• Problem Companies have dissimilar products and/or national 
geography - functional organization not efficient 
• Strategy Group similar products together by regions or channels 
• Structure Organize companies into self-contained divisions. 
Add corporate staff for shared functions 
• Tools Distributed Accounting, Bus School, Consulting Firms 
• Leaders DuPont, General Motors, Sears, Standard Oil
CEO 
Organize by Divisions 
Bus Div A Bus Div B 
Bus Div C Bus Div C 
… 
… 
… 
… 
… 
… 
… 
… 
… 
Replicate functions 
inside separate 
divisions
CEO 
Organize by Divisions 
Add Corporate Staff 
Adv R&D CIO CMO M&A CFO Legal 
Bus Div A Bus Div B 
Bus Div C Bus Div C
1960’s: Organize by Matrix 
• Problem Companies have complex, short term projects 
• Strategy Temporary organization driven by project 
• Structure Project mgmt across functions as needed by project 
• Tools Gantt Charts, Project Management 
•Leaders NASA, Lockheed, Northrup, Boeing,…
CEO 
Organize by Project 
(Matrix) 
Projects Engineering 
Q/A Finance 
Project Mgr Eng 1 
Eng 2 
Eng 3 
… 
… 
… 
… 
… 
… 
Mfg 
… 
… 
Project Mgr … 
Project Mgr 
Functional Mgmt Functional Mgmt Functional Mgmt Functional Mgmt
21st Century Corporate Issues 
• Continuous and unrelenting disruption 
– China 
– Globalization 
– Transparent pricing 
– Plummeting cost of entry 
– Internet, mobile…
21st Century Corporate Structure Issues 
• Current forms of corporate organizations are 
designed for execution 
• Attempts to “add” innovation break these structures 
– KPI’s, Processes, financials, HR, Bus Units, etc
Continuous disruption requires 
continuous innovation
Types of 
Corporate Innovation
Types of Corporate Innovation 
Types of Corporate Innovation 
Disruptive 
Innovation 
Continuous 
Innovation 
Process 
Innovation
Process Innovation 
• Improve part of an existing business model 
– Cost, revenue, service, etc 
• Can be done by an individual part time 
• Domain of the general manager
Business Model (Continuous) 
Innovation 
• Requires existing business unit resources 
• Uses internal business unit incubator and Investment 
Readiness Level 
• Domain of the general manager 
Example: Pepsi buying Frito Lay/Quaker Oats, Exxon buying 
XTO ($41B)
Disruptive Innovation 
• Requires new & existing business unit resources 
• Uses corporate incubator or Skunk Works 
• Domain of the CEO and board 
Example: Amazon and AWS, Apple and iPod, iPhone
Corporate Innovation Portfolio 
• To run these innovation projects: 
– corporation’s innovation is a portfolio of projects 
– occurs inside Bus Units and Functional Org 
– As well as outside
Innovation Portfolio 
Innovation Portfolio 
Disruptive 
Innovation 
Continuous 
Innovation 
Process 
Innovation 
• Build 
• Buy 
• Partner 
• Open 
Types of Corporate Innovation
Buying Innovation 
What Can You Acquire? 
Disruptive 
Innovation 
Continuous 
Innovation 
Process 
Innovation 
• Revenue 
• Product Line + Users 
• Product Line 
• Teams 
• Intellectual Property 
Why Acquire? 
Innovation Portfolio 
• Build 
• Buy 
• Partner
Building Innovation 
Where Do You Build It? 
Disruptive 
Innovation 
Continuous 
Innovation 
Process 
Innovation 
• Skunk Works 
• Advanced R&D 
• Functional Org 
• Divisional Engineering 
• Intellectual Property 
Type of Innovation 
Innovation Portfolio 
• Build 
• Buy 
• Partner
Issues 
Structure and Tools for Execution 
are not 
Structure and Tools for Innovation
Current Corporate Metrics Focus on 
Execution 
• Finance focus 
– Return on Net Assets, Return on Capital and Internal 
Rate of Return 
– minimum rate of return on a project or investment 
• Execution focus 
– Customer acquisition cost, sales per rep, etc 
Christensen HBR 6/13
CEO 
M&A/Strat 
Finance Legal CTO/R&D CMO 
egy 
HR 
• Hiring policies 
• Promotion Policies 
• Termination Policies 
• Bonus/Incentives 
• … 
• Return on Net Assets 
• IRR 
• Hurdle Rates 
• Net/Gross Margin 
• operating income 
• … 
• Contracts 
• Compliance 
• Governance… 
Bus Div A Bus Div B Bus Div C Bus Div C 
•market share 
•quote to close ratio 
•sales per rep 
•customer 
acquisition/activation 
cost 
•average selling price 
• customer lifetime value 
• churn/retention 
• sales per square foot 
• inventory turns 
• … 
• Strategic/Operational fit 
• Accretion/Dilution 
• Total Shareholder Return 
• Economic Margin 
• Market Value Added 
•… 
• Tech Strategy 
• Future Direction 
• Chief Architect 
•… 
• …
Corporate Innovation Quandary 
• Tools to manage execution are destructive for 
innovation 
• Innovation metrics are different 
• How do we manage to do both without killing the 
core business?
Even Elephants Can Dance 
Implementing Innovation in Large Companies
Start With Lots of Small Wins 
• Develop an experimentation and prototyping culture 
• Use Lean Startup methodology 
– Early Market Testing 
– Fast Iterations 
– Fast Go/No Go Decisions
Operate with Speed and Urgency
Corporate Innovation By Design 
• Start Small 
• Aim High 
• Iterate Fast 
• Fail fast, learning 
• Innovation as incremental but permanent change 
All require cultural change 
CEO/Exec Staff buy-in
The Lean Startup 
A much better way to build innovation
1. Frame Hypotheses 
• Frame Hypotheses 
1. Frame Hypotheses 
• Frame Hypotheses  Business Model Canvas 
Customers 
Get/Keep/ 
Product / Grow 
Service 
Revenue 
Partners 
Activities 
Resources 
Costs 
Channel
2. Test Hypotheses 
• Frame Hypotheses 
• Test Hypotheses 
 Business Model Canvas 

2. Test Hypotheses 
• Frame Hypotheses 
• Test Hypotheses 
Business Model 
Customer Development 
 

Turning Hypotheses Into Facts
There Are No Facts Inside The 
Building, So Get the Heck Outside
3. Build Incrementally & Iteratively 
• Frame Hypotheses 
• Test Hypotheses 
• Build the product 
incrementally & 
Iteratively 
Business Model 
Customer Development 
Agile Engineering 
 
 

Stanford breakfast briefing 111214
Encourage Multi-Disciplinary Teams 
• Pure tech teams lack customer perspective 
– Tend to push the product rather than understand the 
problem 
• Pure business teams lack tech reality/judgment
Core Team of Innovation Managers 
• Office of Chief Innovation Officer 
• They manage the Innovation Cycle 
– Logistics 
– Administration 
– Assessment 
– Training
CEO 
Chief 
M&A/Strat 
Finance Legal CMO 
Innovation 
Officer 
egy 
HR 
Add Corp Innovation Staff 
Bus Div A Bus Div B Bus Div C Bus Div C
Chief Innovation Officer 
• Training 
– Integral to the projects 
– Lean LaunchPad/I-Corps Curriculum 
• Mentors 
– Integral to the projects 
– Corporate and divisions 
• Open Innovation 
– Integral to the projects
Core Business + Disruptive Projects 
• Run Process & Business Model innovation in 
Business Units/Functional Organization 
• Run Disruptive projects in corporate 
• Bottoms up + Top Down innovation
CEO 
Chief 
M&A/Strat 
Finance Legal CMO 
Innovation 
Officer 
egy 
HR 
Add Divisional Lean Innovation Projects 
Bus Div A Bus Div B Bus Div C Bus Div C 
• … 
Lean Project 1 
Lean Project 2 
Lean Project n 
Lean Project 1 
Lean Project 2 
Lean Project n 
Lean Project 1 
Lean Project 2 
Lean Project n 
Lean Project 1 
Lean Project 2 
Lean Project n
CEO 
Chief 
M&A/Strat 
Finance Legal CMO 
Innovation 
Officer 
egy 
HR 
Add Corporate Lean Innovation Projects 
Bus Div A Bus Div B Bus Div C Bus Div C 
• … 
- Disruption 
Lean Project 1 
Lean Project 2 
Lean Project n 
Lean Project 1 
Lean Project 2 
Lean Project n 
Lean Project 1 
Lean Project 2 
Lean Project n 
Lean Project 1 
Lean Project 2 
Lean Project n 
Lean Project 1 
Lean Project 2 
Lean Project n
CEO 
M&A/Strat 
Finance Legal CTO/R&D CMO 
egy 
HR 
• Hiring policies 
• Promotion Policies 
• Termination Policies 
• Bonus/Incentives 
• … 
• Return on Net Assets 
• IRR 
• Hurdle Rates 
• Net/Gross Margin 
• operating income 
• … 
• Contracts 
• Compliance 
• Governance… 
Add Innovation Policies and 
Processes to each function 
Bus Div A Bus Div B Bus Div C Bus Div C 
•market share 
•quote to close ratio 
•sales per rep 
•customer 
acquisition/activation 
cost 
•average selling price 
• customer lifetime value 
• churn/retention 
• sales per square foot 
• inventory turns 
• … 
• Strategic/Operational fit 
• Accretion/Dilution 
• Total Shareholder Return 
• Economic Margin 
• Market Value Added 
•… 
• Tech Strategy 
• Future Direction 
• Chief Architect 
•… 
• …
Innovation As Incremental but 
Permanent Change 
• Each innovation win needs to permanently change the 
corporation 
– New KPI’s 
– New policies 
– New procedures 
– New comp plans 
• Every time an innovation project wins an exception to an 
existing process, institutionalize the exception
Can Start Multiple Ways 
• Top down – CEO mandate 
• Chief Innovation Officer Initiatives 
• Divisioanal projects
Common Corporate Innovation 
Language and Metric 
• Innovation needs a common corporate language 
• All the support functions: HR, IT, Finance, Legal 
need to develop innovation processes and 
procedures
NASA
NASA/DOD 
Technology Readiness Level (TRL) 
• Formal Way to assess project maturity 
• Quantify Relative Risks 
• Data Driven 
• Adopted by NASA, DOD, FAA, ESA…
NASA/DOD Technology Readiness: 
Levels 1 & 2 
Basic Technology Research 
• Basic principles observed 
• Technology concept formulated 
Concept
NASA/DOD Technology Readiness 
Levels 3 & 4 
Research to prove Feasibility 
• Experimental proof of concept 
• Breadboard validation in lab 
Research 
Concept
NASA/DOD Technology Readiness 
Levels 5 & 6 
Demo Prototype 
• Breadboard validation outside the building 
• System demo in real-world 
Demo 
Research 
Concept
NASA/DOD Technology Readiness 
Levels 7, 8, 9 
Deployment 
• System Development 
• System deployed in real-world 
Demo 
Research 
Concept
What Can We Do 
With All This Data? 
The Investment Readiness Level
Investment Readiness Level
Investment Readiness Level 
We can do the same 
for new ventures
Investment Readiness Level 
We can do the same 
for new ventures 
Emphasis is on data
Investment Readiness Level 
• A Formal Way to Quantify Relative Risks 
• Data Driven 
• Analog to NASA/DOD 
Technology Readiness Level (TRL)
Investment Readiness: 
Levels 1 & 2 
Hypotheses 
• Value Proposition summarized 
• Canvas hypotheses articulated 
Hypotheses
Investment Readiness: 
Levels 3 & 4 
Problem / Solution Fit 
• Problem Solution fit 
• Low fidelity MVP 
Problem/Solution 
Hypotheses
Investment Readiness: 
Levels 5 & 6 
Validate 
• Product/Market fit 
• Right side of canvas 
Product/Market fit 
Problem/Solution 
Hypotheses
Investment Readiness: 
Levels 7 & 8 
Validate 
• Left side of canvas 
Product/Market fit 
Problem/Solution 
Hypotheses
Investment Readiness: 
Levels 9 
Metrics That Matter 
Left side of the canvas 
Product/Market fit 
Problem/Solution 
Hypotheses
Technology 
Readiness Level 
Investment 
Readiness Level 
Metrics that Matter 
Validate 
Left side of Canvas 
Validate 
Right side of Canvas 
Product/Market Fit 
Problem/Solution 
Hypotheses
Summary 
• 20th century corporate structures focused on 
execution 
• Continuous disruption requires continuous 
innovation 
• We need a new model for innovation
Thanks
Backup
Medical Device: Cheap DNA Testing 
Source: alexander osterwalder
Medical Device: Cheap DNA Testing 
110K 
5% MARKET SHARE 
HOW COULD YOU 
IMPROVE THIS 
BUSINESS MODEL? 
5.5M 
2.8M 
1.2M 
1M 
$1,000/ DEVICE 
FIXED COST 
50% COMMISSION 
$225/DEVICE 
Source: alexander osterwalder
Medical Device: Cheap DNA Testing 
110K 
5% MARKET SHARE 
5.5M 
2.8M 
1.2M 
1M 
$1,000/ DEVICE 
FIXED COST 
50% COMMISSION 
$225/DEVICE 
Source: alexander osterwalder
Medical Device: Cheap DNA Testing 
110K 
5.5M 
2.8M 
1.2M 
1M 
5% MARKET SHARE 
24.8M 
$75/ STRIP 
$7/ STRIP 
2.3M 
Source: alexander osterwalder
Acquisition Integration Strategies
Buy IP 
Buy Product 
Line 
Buy Teams 
Buy Product 
Line + 
Users/Payers 
Buy Revenue 
Acquisition Intention 
New Venture Phase: Search versus Execution 
Types of Innovation Acquisitons
Acquisitions: Searching or Executing? 
Buy IP 
Buy Product 
Line 
Buy Teams 
Buy Product 
Line + Users 
Buy Revenue 
Acquisition Intention 
New Venture Phase: Search versus Execution 
Searching 
Executing
Acquisition Integration Strategy 
Buy IP 
Buy Product 
Line 
Buy Teams 
Buy Product 
Line + Users 
Buy Revenue 
Acquisition Intention 
Acquirer Strategy 
Integrate 
Independent 
Integrate
Data on Hypotheses, Pivots, 
MVPs, Metrics 
Evidence and Trajectory
Stanford breakfast briefing 111214
Cohort 
Leaderboard
Customer 
Interviews
Hypotheses 
to Test
Invalidated 
Hypotheses
Stanford breakfast briefing 111214
Weekly Canvas 
Updates
Stanford breakfast briefing 111214
Track All 
Hypotheses 
Testing
Stanford breakfast briefing 111214
Scorecard: 
9 way Kanban Board 
with data
Advanced Data Mining

More Related Content

What's hot

Slash - the Startup Studio Playbook (13 dec2018)
Slash - the Startup Studio Playbook (13 dec2018)Slash - the Startup Studio Playbook (13 dec2018)
Slash - the Startup Studio Playbook (13 dec2018)Slash
 
Startup Secrets - Turning Products into Companies
Startup Secrets - Turning Products into CompaniesStartup Secrets - Turning Products into Companies
Startup Secrets - Turning Products into CompaniesMichael Skok
 
Startup Studios - Innovating Innovation White Paper Select Slides by Enhance
Startup Studios - Innovating Innovation White Paper Select Slides by EnhanceStartup Studios - Innovating Innovation White Paper Select Slides by Enhance
Startup Studios - Innovating Innovation White Paper Select Slides by EnhanceAlper Celen
 
Organisational Best Practices of Startup Studios
Organisational Best Practices of Startup Studios Organisational Best Practices of Startup Studios
Organisational Best Practices of Startup Studios Tobi Gutmann
 
Lecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer DevelopmentLecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer DevelopmentStanford University
 
Slash | The Venture Builder Playbook (5 may2021)
Slash  | The Venture Builder Playbook (5 may2021)Slash  | The Venture Builder Playbook (5 may2021)
Slash | The Venture Builder Playbook (5 may2021)Slash
 
Startup Studio Final Report Public Copy
Startup Studio Final Report Public CopyStartup Studio Final Report Public Copy
Startup Studio Final Report Public CopyDaniel Feeman
 
Customer Development at Startup2Startup
Customer Development at Startup2StartupCustomer Development at Startup2Startup
Customer Development at Startup2StartupStanford University
 
Testing Business Ideas by David Bland & Alex Osterwalder
Testing Business Ideas by David Bland & Alex Osterwalder Testing Business Ideas by David Bland & Alex Osterwalder
Testing Business Ideas by David Bland & Alex Osterwalder Peerasak C.
 
Gorilla Labs - Venture Builder
Gorilla Labs - Venture BuilderGorilla Labs - Venture Builder
Gorilla Labs - Venture BuilderNikhil Jacob
 
Best Practices for an Effective Innovation Process
Best Practices for an Effective Innovation ProcessBest Practices for an Effective Innovation Process
Best Practices for an Effective Innovation ProcessMindjet
 
Optimize Your Funnel By Getting Inside Your Buyer's Head
Optimize Your Funnel By Getting Inside Your Buyer's HeadOptimize Your Funnel By Getting Inside Your Buyer's Head
Optimize Your Funnel By Getting Inside Your Buyer's HeadDavid Skok
 
Innovation Management - 2 - Types of Innovation
Innovation Management - 2 - Types of InnovationInnovation Management - 2 - Types of Innovation
Innovation Management - 2 - Types of InnovationJoseph Ho
 
Minimum Viable Product and Pivot
Minimum Viable Product and PivotMinimum Viable Product and Pivot
Minimum Viable Product and PivotBlaz Kos
 
Building a Compelling Value Proposition
Building a Compelling Value PropositionBuilding a Compelling Value Proposition
Building a Compelling Value PropositionStartup Secrets
 
Company Formation - Foundations for an Enduring Company - Competitive Advanta...
Company Formation - Foundations for an Enduring Company - Competitive Advanta...Company Formation - Foundations for an Enduring Company - Competitive Advanta...
Company Formation - Foundations for an Enduring Company - Competitive Advanta...Michael Skok
 

What's hot (20)

Slash - the Startup Studio Playbook (13 dec2018)
Slash - the Startup Studio Playbook (13 dec2018)Slash - the Startup Studio Playbook (13 dec2018)
Slash - the Startup Studio Playbook (13 dec2018)
 
Startup Secrets - Turning Products into Companies
Startup Secrets - Turning Products into CompaniesStartup Secrets - Turning Products into Companies
Startup Secrets - Turning Products into Companies
 
Startup Studios - Innovating Innovation White Paper Select Slides by Enhance
Startup Studios - Innovating Innovation White Paper Select Slides by EnhanceStartup Studios - Innovating Innovation White Paper Select Slides by Enhance
Startup Studios - Innovating Innovation White Paper Select Slides by Enhance
 
Organisational Best Practices of Startup Studios
Organisational Best Practices of Startup Studios Organisational Best Practices of Startup Studios
Organisational Best Practices of Startup Studios
 
Bus model and cust dev jan 2013
Bus model and cust dev jan 2013Bus model and cust dev jan 2013
Bus model and cust dev jan 2013
 
Lecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer DevelopmentLecture 1: Business Model & Customer Development
Lecture 1: Business Model & Customer Development
 
Slash | The Venture Builder Playbook (5 may2021)
Slash  | The Venture Builder Playbook (5 may2021)Slash  | The Venture Builder Playbook (5 may2021)
Slash | The Venture Builder Playbook (5 may2021)
 
Startup Studio Final Report Public Copy
Startup Studio Final Report Public CopyStartup Studio Final Report Public Copy
Startup Studio Final Report Public Copy
 
Customer Development at Startup2Startup
Customer Development at Startup2StartupCustomer Development at Startup2Startup
Customer Development at Startup2Startup
 
Testing Business Ideas by David Bland & Alex Osterwalder
Testing Business Ideas by David Bland & Alex Osterwalder Testing Business Ideas by David Bland & Alex Osterwalder
Testing Business Ideas by David Bland & Alex Osterwalder
 
Gorilla Labs - Venture Builder
Gorilla Labs - Venture BuilderGorilla Labs - Venture Builder
Gorilla Labs - Venture Builder
 
Best Practices for an Effective Innovation Process
Best Practices for an Effective Innovation ProcessBest Practices for an Effective Innovation Process
Best Practices for an Effective Innovation Process
 
Optimize Your Funnel By Getting Inside Your Buyer's Head
Optimize Your Funnel By Getting Inside Your Buyer's HeadOptimize Your Funnel By Getting Inside Your Buyer's Head
Optimize Your Funnel By Getting Inside Your Buyer's Head
 
Innovation Management - 2 - Types of Innovation
Innovation Management - 2 - Types of InnovationInnovation Management - 2 - Types of Innovation
Innovation Management - 2 - Types of Innovation
 
Minimum Viable Product and Pivot
Minimum Viable Product and PivotMinimum Viable Product and Pivot
Minimum Viable Product and Pivot
 
Building a Compelling Value Proposition
Building a Compelling Value PropositionBuilding a Compelling Value Proposition
Building a Compelling Value Proposition
 
Testing Your MVP
Testing Your MVPTesting Your MVP
Testing Your MVP
 
Company Formation - Foundations for an Enduring Company - Competitive Advanta...
Company Formation - Foundations for an Enduring Company - Competitive Advanta...Company Formation - Foundations for an Enduring Company - Competitive Advanta...
Company Formation - Foundations for an Enduring Company - Competitive Advanta...
 
Zero to 50m
Zero to 50m Zero to 50m
Zero to 50m
 
Company Builder
Company BuilderCompany Builder
Company Builder
 

Viewers also liked

SYSTEMS THINKING: Lessons From The Fifth Discipline Fieldbook by Senge, Kleik...
SYSTEMS THINKING: Lessons From The Fifth Discipline Fieldbook by Senge, Kleik...SYSTEMS THINKING: Lessons From The Fifth Discipline Fieldbook by Senge, Kleik...
SYSTEMS THINKING: Lessons From The Fifth Discipline Fieldbook by Senge, Kleik...Joanna Beltowska
 
Business Model vs Lean Canvas
Business Model vs Lean CanvasBusiness Model vs Lean Canvas
Business Model vs Lean CanvasYakup Bayrak
 
Build a Successful Startup! - Day Two
Build a Successful Startup! - Day TwoBuild a Successful Startup! - Day Two
Build a Successful Startup! - Day TwoAhmed Bastawy
 
Business Model Innovation for New Growth
Business Model Innovation for New GrowthBusiness Model Innovation for New Growth
Business Model Innovation for New GrowthDr. Marc Sniukas
 
Updated: Crafting your Business Model
Updated:  Crafting your Business ModelUpdated:  Crafting your Business Model
Updated: Crafting your Business ModelMarty Kaszubowski
 
LEAN SIX SIGMA CANVAS: A Universal Problem Solving (UPS) Worksheet for Lean S...
LEAN SIX SIGMA CANVAS: A Universal Problem Solving (UPS) Worksheet for Lean S...LEAN SIX SIGMA CANVAS: A Universal Problem Solving (UPS) Worksheet for Lean S...
LEAN SIX SIGMA CANVAS: A Universal Problem Solving (UPS) Worksheet for Lean S...Rod King, Ph.D.
 
The Business Model Canvas - Your Plan For Success (Startup Weekend Montreal)
The Business Model Canvas - Your Plan For Success (Startup Weekend Montreal)The Business Model Canvas - Your Plan For Success (Startup Weekend Montreal)
The Business Model Canvas - Your Plan For Success (Startup Weekend Montreal)Davender Gupta
 
Evidence-based Entrepreneurship by Steve Blank
Evidence-based Entrepreneurship by Steve BlankEvidence-based Entrepreneurship by Steve Blank
Evidence-based Entrepreneurship by Steve BlankLean Startup Co.
 
LEAN STARTUP LIFECYCLE: 5 Stages in the Evolution of Billion Dollar $tartups
LEAN STARTUP LIFECYCLE: 5 Stages in the Evolution of Billion Dollar $tartupsLEAN STARTUP LIFECYCLE: 5 Stages in the Evolution of Billion Dollar $tartups
LEAN STARTUP LIFECYCLE: 5 Stages in the Evolution of Billion Dollar $tartupsRod King, Ph.D.
 
Sell First, Build Later with the Lean Startup: Fundamentals, Tools, Methods a...
Sell First, Build Later with the Lean Startup: Fundamentals, Tools, Methods a...Sell First, Build Later with the Lean Startup: Fundamentals, Tools, Methods a...
Sell First, Build Later with the Lean Startup: Fundamentals, Tools, Methods a...Ismail Berkan
 
Making Sense of Lean Startup Strategies
Making Sense of Lean Startup StrategiesMaking Sense of Lean Startup Strategies
Making Sense of Lean Startup StrategiesSathish Hariharan
 
Business Model Design, For a Competitive Startup
Business Model Design, For a Competitive StartupBusiness Model Design, For a Competitive Startup
Business Model Design, For a Competitive StartupMotaz Agamawi
 
Relevance of the business model for startup success
Relevance of the business model for startup successRelevance of the business model for startup success
Relevance of the business model for startup successChristian Schultz
 
Startup Fuze - Business Model, Business Plan & Revenue Models
Startup Fuze - Business Model, Business Plan & Revenue ModelsStartup Fuze - Business Model, Business Plan & Revenue Models
Startup Fuze - Business Model, Business Plan & Revenue ModelsLuis Almanza
 
Business Model - system strategy flow chart with feedback loops for lean startup
Business Model - system strategy flow chart with feedback loops for lean startupBusiness Model - system strategy flow chart with feedback loops for lean startup
Business Model - system strategy flow chart with feedback loops for lean startupKelly Schwedland
 
Validating a Startup business model
Validating a Startup business modelValidating a Startup business model
Validating a Startup business modelBryan Starbuck
 
Business Model Canvas
Business Model CanvasBusiness Model Canvas
Business Model CanvasTom Philip
 
3-Act Business Model Storyboard for LEAN STARTUP PIVOTS: A Visual Template fo...
3-Act Business Model Storyboard for LEAN STARTUP PIVOTS: A Visual Template fo...3-Act Business Model Storyboard for LEAN STARTUP PIVOTS: A Visual Template fo...
3-Act Business Model Storyboard for LEAN STARTUP PIVOTS: A Visual Template fo...Rod King, Ph.D.
 
LEANER STARTUP MODELING: A Value Innovation Storydeck of Standardized Tools f...
LEANER STARTUP MODELING: A Value Innovation Storydeck of Standardized Tools f...LEANER STARTUP MODELING: A Value Innovation Storydeck of Standardized Tools f...
LEANER STARTUP MODELING: A Value Innovation Storydeck of Standardized Tools f...Rod King, Ph.D.
 
Failcon10 387 million ways to fail
Failcon10 387 million ways to failFailcon10 387 million ways to fail
Failcon10 387 million ways to failStanford University
 

Viewers also liked (20)

SYSTEMS THINKING: Lessons From The Fifth Discipline Fieldbook by Senge, Kleik...
SYSTEMS THINKING: Lessons From The Fifth Discipline Fieldbook by Senge, Kleik...SYSTEMS THINKING: Lessons From The Fifth Discipline Fieldbook by Senge, Kleik...
SYSTEMS THINKING: Lessons From The Fifth Discipline Fieldbook by Senge, Kleik...
 
Business Model vs Lean Canvas
Business Model vs Lean CanvasBusiness Model vs Lean Canvas
Business Model vs Lean Canvas
 
Build a Successful Startup! - Day Two
Build a Successful Startup! - Day TwoBuild a Successful Startup! - Day Two
Build a Successful Startup! - Day Two
 
Business Model Innovation for New Growth
Business Model Innovation for New GrowthBusiness Model Innovation for New Growth
Business Model Innovation for New Growth
 
Updated: Crafting your Business Model
Updated:  Crafting your Business ModelUpdated:  Crafting your Business Model
Updated: Crafting your Business Model
 
LEAN SIX SIGMA CANVAS: A Universal Problem Solving (UPS) Worksheet for Lean S...
LEAN SIX SIGMA CANVAS: A Universal Problem Solving (UPS) Worksheet for Lean S...LEAN SIX SIGMA CANVAS: A Universal Problem Solving (UPS) Worksheet for Lean S...
LEAN SIX SIGMA CANVAS: A Universal Problem Solving (UPS) Worksheet for Lean S...
 
The Business Model Canvas - Your Plan For Success (Startup Weekend Montreal)
The Business Model Canvas - Your Plan For Success (Startup Weekend Montreal)The Business Model Canvas - Your Plan For Success (Startup Weekend Montreal)
The Business Model Canvas - Your Plan For Success (Startup Weekend Montreal)
 
Evidence-based Entrepreneurship by Steve Blank
Evidence-based Entrepreneurship by Steve BlankEvidence-based Entrepreneurship by Steve Blank
Evidence-based Entrepreneurship by Steve Blank
 
LEAN STARTUP LIFECYCLE: 5 Stages in the Evolution of Billion Dollar $tartups
LEAN STARTUP LIFECYCLE: 5 Stages in the Evolution of Billion Dollar $tartupsLEAN STARTUP LIFECYCLE: 5 Stages in the Evolution of Billion Dollar $tartups
LEAN STARTUP LIFECYCLE: 5 Stages in the Evolution of Billion Dollar $tartups
 
Sell First, Build Later with the Lean Startup: Fundamentals, Tools, Methods a...
Sell First, Build Later with the Lean Startup: Fundamentals, Tools, Methods a...Sell First, Build Later with the Lean Startup: Fundamentals, Tools, Methods a...
Sell First, Build Later with the Lean Startup: Fundamentals, Tools, Methods a...
 
Making Sense of Lean Startup Strategies
Making Sense of Lean Startup StrategiesMaking Sense of Lean Startup Strategies
Making Sense of Lean Startup Strategies
 
Business Model Design, For a Competitive Startup
Business Model Design, For a Competitive StartupBusiness Model Design, For a Competitive Startup
Business Model Design, For a Competitive Startup
 
Relevance of the business model for startup success
Relevance of the business model for startup successRelevance of the business model for startup success
Relevance of the business model for startup success
 
Startup Fuze - Business Model, Business Plan & Revenue Models
Startup Fuze - Business Model, Business Plan & Revenue ModelsStartup Fuze - Business Model, Business Plan & Revenue Models
Startup Fuze - Business Model, Business Plan & Revenue Models
 
Business Model - system strategy flow chart with feedback loops for lean startup
Business Model - system strategy flow chart with feedback loops for lean startupBusiness Model - system strategy flow chart with feedback loops for lean startup
Business Model - system strategy flow chart with feedback loops for lean startup
 
Validating a Startup business model
Validating a Startup business modelValidating a Startup business model
Validating a Startup business model
 
Business Model Canvas
Business Model CanvasBusiness Model Canvas
Business Model Canvas
 
3-Act Business Model Storyboard for LEAN STARTUP PIVOTS: A Visual Template fo...
3-Act Business Model Storyboard for LEAN STARTUP PIVOTS: A Visual Template fo...3-Act Business Model Storyboard for LEAN STARTUP PIVOTS: A Visual Template fo...
3-Act Business Model Storyboard for LEAN STARTUP PIVOTS: A Visual Template fo...
 
LEANER STARTUP MODELING: A Value Innovation Storydeck of Standardized Tools f...
LEANER STARTUP MODELING: A Value Innovation Storydeck of Standardized Tools f...LEANER STARTUP MODELING: A Value Innovation Storydeck of Standardized Tools f...
LEANER STARTUP MODELING: A Value Innovation Storydeck of Standardized Tools f...
 
Failcon10 387 million ways to fail
Failcon10 387 million ways to failFailcon10 387 million ways to fail
Failcon10 387 million ways to fail
 

Similar to Stanford breakfast briefing 111214

Watermark 040511 387 million ways to fail
Watermark 040511 387 million ways to failWatermark 040511 387 million ways to fail
Watermark 040511 387 million ways to failStanford University
 
Why Startups Are _Not_ Small Versions of Large Companies
Why Startups Are _Not_ Small Versions of Large CompaniesWhy Startups Are _Not_ Small Versions of Large Companies
Why Startups Are _Not_ Small Versions of Large CompaniesStanford University
 
Ny entprenenurial week lecture 111210 customer development
Ny entprenenurial week lecture 111210 customer developmentNy entprenenurial week lecture 111210 customer development
Ny entprenenurial week lecture 111210 customer developmentStanford University
 
Why Product Managers Need Sneakers
Why Product Managers Need SneakersWhy Product Managers Need Sneakers
Why Product Managers Need SneakersStanford University
 
Why fighter pilots run startups 090511
Why fighter pilots run startups 090511Why fighter pilots run startups 090511
Why fighter pilots run startups 090511Stanford University
 
Sxsw New Rules for the New Bubble 031211
Sxsw New Rules for the New Bubble 031211Sxsw New Rules for the New Bubble 031211
Sxsw New Rules for the New Bubble 031211Stanford University
 
Greycroft - Why Accountants Don’t Run Startups
Greycroft - Why Accountants Don’t Run StartupsGreycroft - Why Accountants Don’t Run Startups
Greycroft - Why Accountants Don’t Run StartupsStanford University
 
Demolish the status quo in entrepreneurial education 082311
Demolish the status quo in entrepreneurial education 082311Demolish the status quo in entrepreneurial education 082311
Demolish the status quo in entrepreneurial education 082311Stanford University
 
Steve blank sxsw new rules for the new bubble 031211
Steve blank  sxsw new rules for the new bubble 031211Steve blank  sxsw new rules for the new bubble 031211
Steve blank sxsw new rules for the new bubble 031211Sheila Goodman
 
Everything You Knew About Startups is Wrong, And How to Make it Right
Everything You Knew About Startups is Wrong, And How to Make it RightEverything You Knew About Startups is Wrong, And How to Make it Right
Everything You Knew About Startups is Wrong, And How to Make it RightStanford University
 
Aalto demolish the status quo in entrepreneurial education 090511
Aalto demolish the status quo in entrepreneurial education 090511Aalto demolish the status quo in entrepreneurial education 090511
Aalto demolish the status quo in entrepreneurial education 090511Stanford University
 
How to Be A Successful Agile Product Manager
How to Be A Successful Agile Product ManagerHow to Be A Successful Agile Product Manager
How to Be A Successful Agile Product ManagerThoughtworks
 
Startup university - 5. funding & financials
Startup university - 5. funding & financialsStartup university - 5. funding & financials
Startup university - 5. funding & financialsStartup University
 

Similar to Stanford breakfast briefing 111214 (20)

Watermark 040511 387 million ways to fail
Watermark 040511 387 million ways to failWatermark 040511 387 million ways to fail
Watermark 040511 387 million ways to fail
 
Why Startups Are _Not_ Small Versions of Large Companies
Why Startups Are _Not_ Small Versions of Large CompaniesWhy Startups Are _Not_ Small Versions of Large Companies
Why Startups Are _Not_ Small Versions of Large Companies
 
True ventures 072011
True ventures 072011True ventures 072011
True ventures 072011
 
Ny entprenenurial week lecture 111210 customer development
Ny entprenenurial week lecture 111210 customer developmentNy entprenenurial week lecture 111210 customer development
Ny entprenenurial week lecture 111210 customer development
 
48 hours customer development
48 hours customer development48 hours customer development
48 hours customer development
 
Why Product Managers Need Sneakers
Why Product Managers Need SneakersWhy Product Managers Need Sneakers
Why Product Managers Need Sneakers
 
Why fighter pilots run startups 090511
Why fighter pilots run startups 090511Why fighter pilots run startups 090511
Why fighter pilots run startups 090511
 
Sxsw New Rules for the New Bubble 031211
Sxsw New Rules for the New Bubble 031211Sxsw New Rules for the New Bubble 031211
Sxsw New Rules for the New Bubble 031211
 
Berkeley columbia alumni 092411
Berkeley columbia alumni 092411Berkeley columbia alumni 092411
Berkeley columbia alumni 092411
 
Greycroft - Why Accountants Don’t Run Startups
Greycroft - Why Accountants Don’t Run StartupsGreycroft - Why Accountants Don’t Run Startups
Greycroft - Why Accountants Don’t Run Startups
 
Demolish the status quo in entrepreneurial education 082311
Demolish the status quo in entrepreneurial education 082311Demolish the status quo in entrepreneurial education 082311
Demolish the status quo in entrepreneurial education 082311
 
Steve blank sxsw new rules for the new bubble 031211
Steve blank  sxsw new rules for the new bubble 031211Steve blank  sxsw new rules for the new bubble 031211
Steve blank sxsw new rules for the new bubble 031211
 
Everything You Knew About Startups is Wrong, And How to Make it Right
Everything You Knew About Startups is Wrong, And How to Make it RightEverything You Knew About Startups is Wrong, And How to Make it Right
Everything You Knew About Startups is Wrong, And How to Make it Right
 
Aalto demolish the status quo in entrepreneurial education 090511
Aalto demolish the status quo in entrepreneurial education 090511Aalto demolish the status quo in entrepreneurial education 090511
Aalto demolish the status quo in entrepreneurial education 090511
 
Why fighter pilots run startups
Why fighter pilots run startupsWhy fighter pilots run startups
Why fighter pilots run startups
 
Commonwealth club 020811
Commonwealth club 020811Commonwealth club 020811
Commonwealth club 020811
 
How to Be A Successful Agile Product Manager
How to Be A Successful Agile Product ManagerHow to Be A Successful Agile Product Manager
How to Be A Successful Agile Product Manager
 
Startup university - 5. funding & financials
Startup university - 5. funding & financialsStartup university - 5. funding & financials
Startup university - 5. funding & financials
 
Living the lean startup
Living the lean startupLiving the lean startup
Living the lean startup
 
Biz barcelona 061511
Biz barcelona 061511Biz barcelona 061511
Biz barcelona 061511
 

More from Stanford University

Team Networks - 2022 Technology, Innovation & Great Power Competition
Team Networks  - 2022 Technology, Innovation & Great Power CompetitionTeam Networks  - 2022 Technology, Innovation & Great Power Competition
Team Networks - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Team LiOn Batteries - 2022 Technology, Innovation & Great Power Competition
Team LiOn Batteries  - 2022 Technology, Innovation & Great Power CompetitionTeam LiOn Batteries  - 2022 Technology, Innovation & Great Power Competition
Team LiOn Batteries - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Team Quantum - 2022 Technology, Innovation & Great Power Competition
Team Quantum  - 2022 Technology, Innovation & Great Power CompetitionTeam Quantum  - 2022 Technology, Innovation & Great Power Competition
Team Quantum - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Team Disinformation - 2022 Technology, Innovation & Great Power Competition
Team Disinformation  - 2022 Technology, Innovation & Great Power CompetitionTeam Disinformation  - 2022 Technology, Innovation & Great Power Competition
Team Disinformation - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Team Wargames - 2022 Technology, Innovation & Great Power Competition
Team Wargames  - 2022 Technology, Innovation & Great Power CompetitionTeam Wargames  - 2022 Technology, Innovation & Great Power Competition
Team Wargames - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Team Acquistion - 2022 Technology, Innovation & Great Power Competition
Team Acquistion  - 2022 Technology, Innovation & Great Power Competition Team Acquistion  - 2022 Technology, Innovation & Great Power Competition
Team Acquistion - 2022 Technology, Innovation & Great Power Competition Stanford University
 
Team Climate Change - 2022 Technology, Innovation & Great Power Competition
Team Climate Change - 2022 Technology, Innovation & Great Power Competition Team Climate Change - 2022 Technology, Innovation & Great Power Competition
Team Climate Change - 2022 Technology, Innovation & Great Power Competition Stanford University
 
Altuna Engr245 2022 Lessons Learned
Altuna Engr245 2022 Lessons LearnedAltuna Engr245 2022 Lessons Learned
Altuna Engr245 2022 Lessons LearnedStanford University
 
Invisa Engr245 2022 Lessons Learned
Invisa Engr245 2022 Lessons LearnedInvisa Engr245 2022 Lessons Learned
Invisa Engr245 2022 Lessons LearnedStanford University
 
ānanda Engr245 2022 Lessons Learned
ānanda Engr245 2022 Lessons Learnedānanda Engr245 2022 Lessons Learned
ānanda Engr245 2022 Lessons LearnedStanford University
 
Gordian Knot Center Roundtable w/Depty SecDef
Gordian Knot Center Roundtable w/Depty SecDef Gordian Knot Center Roundtable w/Depty SecDef
Gordian Knot Center Roundtable w/Depty SecDef Stanford University
 
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Stanford University
 
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Stanford University
 
Team Catena - 2021 Technology, Innovation & Great Power Competition
Team Catena - 2021 Technology, Innovation & Great Power CompetitionTeam Catena - 2021 Technology, Innovation & Great Power Competition
Team Catena - 2021 Technology, Innovation & Great Power CompetitionStanford University
 
Team Apollo - 2021 Technology, Innovation & Great Power Competition
Team Apollo - 2021 Technology, Innovation & Great Power CompetitionTeam Apollo - 2021 Technology, Innovation & Great Power Competition
Team Apollo - 2021 Technology, Innovation & Great Power CompetitionStanford University
 
Team Drone - 2021 Technology, Innovation & Great Power Competition
Team Drone - 2021 Technology, Innovation & Great Power CompetitionTeam Drone - 2021 Technology, Innovation & Great Power Competition
Team Drone - 2021 Technology, Innovation & Great Power CompetitionStanford University
 
Team Short Circuit - 2021 Technology, Innovation & Great Power Competition
Team Short Circuit - 2021 Technology, Innovation & Great Power CompetitionTeam Short Circuit - 2021 Technology, Innovation & Great Power Competition
Team Short Circuit - 2021 Technology, Innovation & Great Power CompetitionStanford University
 
Team Aurora - 2021 Technology, Innovation & Great Power Competition
Team Aurora - 2021 Technology, Innovation & Great Power CompetitionTeam Aurora - 2021 Technology, Innovation & Great Power Competition
Team Aurora - 2021 Technology, Innovation & Great Power CompetitionStanford University
 
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...Stanford University
 
Lecture 8 - Technology, Innovation and Great Power Competition - Cyber
Lecture 8 - Technology, Innovation and Great Power Competition - CyberLecture 8 - Technology, Innovation and Great Power Competition - Cyber
Lecture 8 - Technology, Innovation and Great Power Competition - CyberStanford University
 

More from Stanford University (20)

Team Networks - 2022 Technology, Innovation & Great Power Competition
Team Networks  - 2022 Technology, Innovation & Great Power CompetitionTeam Networks  - 2022 Technology, Innovation & Great Power Competition
Team Networks - 2022 Technology, Innovation & Great Power Competition
 
Team LiOn Batteries - 2022 Technology, Innovation & Great Power Competition
Team LiOn Batteries  - 2022 Technology, Innovation & Great Power CompetitionTeam LiOn Batteries  - 2022 Technology, Innovation & Great Power Competition
Team LiOn Batteries - 2022 Technology, Innovation & Great Power Competition
 
Team Quantum - 2022 Technology, Innovation & Great Power Competition
Team Quantum  - 2022 Technology, Innovation & Great Power CompetitionTeam Quantum  - 2022 Technology, Innovation & Great Power Competition
Team Quantum - 2022 Technology, Innovation & Great Power Competition
 
Team Disinformation - 2022 Technology, Innovation & Great Power Competition
Team Disinformation  - 2022 Technology, Innovation & Great Power CompetitionTeam Disinformation  - 2022 Technology, Innovation & Great Power Competition
Team Disinformation - 2022 Technology, Innovation & Great Power Competition
 
Team Wargames - 2022 Technology, Innovation & Great Power Competition
Team Wargames  - 2022 Technology, Innovation & Great Power CompetitionTeam Wargames  - 2022 Technology, Innovation & Great Power Competition
Team Wargames - 2022 Technology, Innovation & Great Power Competition
 
Team Acquistion - 2022 Technology, Innovation & Great Power Competition
Team Acquistion  - 2022 Technology, Innovation & Great Power Competition Team Acquistion  - 2022 Technology, Innovation & Great Power Competition
Team Acquistion - 2022 Technology, Innovation & Great Power Competition
 
Team Climate Change - 2022 Technology, Innovation & Great Power Competition
Team Climate Change - 2022 Technology, Innovation & Great Power Competition Team Climate Change - 2022 Technology, Innovation & Great Power Competition
Team Climate Change - 2022 Technology, Innovation & Great Power Competition
 
Altuna Engr245 2022 Lessons Learned
Altuna Engr245 2022 Lessons LearnedAltuna Engr245 2022 Lessons Learned
Altuna Engr245 2022 Lessons Learned
 
Invisa Engr245 2022 Lessons Learned
Invisa Engr245 2022 Lessons LearnedInvisa Engr245 2022 Lessons Learned
Invisa Engr245 2022 Lessons Learned
 
ānanda Engr245 2022 Lessons Learned
ānanda Engr245 2022 Lessons Learnedānanda Engr245 2022 Lessons Learned
ānanda Engr245 2022 Lessons Learned
 
Gordian Knot Center Roundtable w/Depty SecDef
Gordian Knot Center Roundtable w/Depty SecDef Gordian Knot Center Roundtable w/Depty SecDef
Gordian Knot Center Roundtable w/Depty SecDef
 
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
 
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
Team Army venture capital - 2021 Technology, Innovation & Great Power Competi...
 
Team Catena - 2021 Technology, Innovation & Great Power Competition
Team Catena - 2021 Technology, Innovation & Great Power CompetitionTeam Catena - 2021 Technology, Innovation & Great Power Competition
Team Catena - 2021 Technology, Innovation & Great Power Competition
 
Team Apollo - 2021 Technology, Innovation & Great Power Competition
Team Apollo - 2021 Technology, Innovation & Great Power CompetitionTeam Apollo - 2021 Technology, Innovation & Great Power Competition
Team Apollo - 2021 Technology, Innovation & Great Power Competition
 
Team Drone - 2021 Technology, Innovation & Great Power Competition
Team Drone - 2021 Technology, Innovation & Great Power CompetitionTeam Drone - 2021 Technology, Innovation & Great Power Competition
Team Drone - 2021 Technology, Innovation & Great Power Competition
 
Team Short Circuit - 2021 Technology, Innovation & Great Power Competition
Team Short Circuit - 2021 Technology, Innovation & Great Power CompetitionTeam Short Circuit - 2021 Technology, Innovation & Great Power Competition
Team Short Circuit - 2021 Technology, Innovation & Great Power Competition
 
Team Aurora - 2021 Technology, Innovation & Great Power Competition
Team Aurora - 2021 Technology, Innovation & Great Power CompetitionTeam Aurora - 2021 Technology, Innovation & Great Power Competition
Team Aurora - 2021 Technology, Innovation & Great Power Competition
 
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...
Team Conflicted Capital Team - 2021 Technology, Innovation & Great Power Comp...
 
Lecture 8 - Technology, Innovation and Great Power Competition - Cyber
Lecture 8 - Technology, Innovation and Great Power Competition - CyberLecture 8 - Technology, Innovation and Great Power Competition - Cyber
Lecture 8 - Technology, Innovation and Great Power Competition - Cyber
 

Recently uploaded

Performance Management Notes for MBA Students
Performance Management Notes for MBA StudentsPerformance Management Notes for MBA Students
Performance Management Notes for MBA StudentsManickam Gajapathy
 
Analyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingAnalyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingCIToolkit
 
Test_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenTest_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenolgaz9
 
HR for Non HR_Learning and Development.
HR for Non HR_Learning  and Development.HR for Non HR_Learning  and Development.
HR for Non HR_Learning and Development.azischin
 
Organizations in a Future with Generative AI
Organizations in a Future with Generative AIOrganizations in a Future with Generative AI
Organizations in a Future with Generative AIKye Andersson
 
Tackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanTackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanStefan Wolpers
 
The Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and EffectThe Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and EffectCIToolkit
 
Roadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint PresentationRoadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint Presentationgdscghrcem
 
What is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfWhat is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfBALASUNDARESAN M
 
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...AgileNetwork
 
From Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMFrom Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMGloria Chow
 
Value Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationValue Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationCIToolkit
 
Improving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksImproving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksCIToolkit
 
How the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioHow the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioChristopher Totten
 
A3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingA3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingCIToolkit
 
Forget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsForget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsStephan Koning
 
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementApplying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementCIToolkit
 
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersEmpowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersMahmoud Rabie
 
Making Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsMaking Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsCIToolkit
 

Recently uploaded (20)

Performance Management Notes for MBA Students
Performance Management Notes for MBA StudentsPerformance Management Notes for MBA Students
Performance Management Notes for MBA Students
 
Analyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingAnalyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value Mapping
 
Test_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenTest_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteen
 
HR for Non HR_Learning and Development.
HR for Non HR_Learning  and Development.HR for Non HR_Learning  and Development.
HR for Non HR_Learning and Development.
 
Organizations in a Future with Generative AI
Organizations in a Future with Generative AIOrganizations in a Future with Generative AI
Organizations in a Future with Generative AI
 
Tackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanTackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna Rothman
 
The Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and EffectThe Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and Effect
 
Roadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint PresentationRoadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint Presentation
 
What is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfWhat is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdf
 
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
 
From Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMFrom Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EM
 
Value Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationValue Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process Optimization
 
Improving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksImproving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba Walks
 
How the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioHow the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the Studio
 
A3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingA3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem Solving
 
Forget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsForget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outs
 
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementApplying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
 
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersEmpowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
 
Making Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsMaking Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity Diagrams
 
Capacity2 - Briefing and Facilitation training slides
Capacity2 - Briefing and Facilitation training slidesCapacity2 - Briefing and Facilitation training slides
Capacity2 - Briefing and Facilitation training slides
 

Stanford breakfast briefing 111214

  • 1. Dealing With Disruption: How to Think Like a Start-Up Leader in a Large Organization Steve Blank steveblank.com @sgblank
  • 2. Startups Are Not Smaller Versions of Large Companies
  • 3. Startups Are Not Smaller Versions of Large Companies Large Companies Execute Known Business Models
  • 4. Startups Are Not Smaller Versions of Large Companies Startups Search for Unknown Business Models
  • 5. What’s A Startup? Search Build Execute A Startup is a temporary organization used to search for a repeatable and scalable business model Startup Large Company Transition
  • 6. Startups Search and Pivot The Search for the Business Model Scalable Startup Large Company Transition
  • 7. Startups Search and Pivot The Search for the Business Model Scalable Startup Large Company Transition Search for a Business Model - customer needs/product features i.e. Product/Market fit - Found by founders, not employees - Repeatable sales model
  • 8. Startups Search, Companies Execute The Search for the Business Model The Execution of the Business Model Scalable Startup Large Company Transition
  • 9. Startups Search, Companies Execute The Search for the Business Model The Execution of the Business Model Scalable Startup Large Company Transition Execution - Profitable - Repeatable - Scale - Job spec’s - Process
  • 10. Learning Metrics Vs Accounting/KPI’s Scalable Startup The Execution of the Business Model Large Company Transition
  • 11. Learning Metrics Vs Accounting/KPI’s Scalable Startup The Execution of the Business Model Large Company Transition Accounting/KPI’s - Balance Sheet - Cash Flow Statement - Income Statement - Return on Net Assets - Return on Capital
  • 12. Learning Metrics Vs Accounting/KPI’s The Search for the Business Model Scalable Startup Large Company Transition Startup Metrics - Customer Acquisition Cost - Viral coefficient - Customer Lifetime Value - Average Selling Price/Order Size - Monthly burn rate - etc.
  • 13. Customer Validation Versus Sales Scalable Startup The Execution of the Business Model Large Company Transition Sales - Sales Organization - Scalable - Price List/Data Sheets - Revenue Plan
  • 14. Customer Validation Versus Sales The Search for the Business Model Scalable Startup Large Company Transition Customer Validation - Early Adopters - Pricing/Feature unstable - Not yet repeatable -“One-off’s” - Done by founders
  • 15. Customer Development Versus Scalable Startup Product Management The Execution of the Business Model Large Company Transition Product Management - Delivers MRD’s - Feature Spec’s - Competitive Analysis - Prod Mgmt driven
  • 16. Customer Development Versus Product Management The Search for the Business Model Scalable Startup Large Company Transition Customer Development - Hypothesis Testing - Minimum Feature Set - Pivots - Founder-driven
  • 17. Scalable Startup Engineering Versus Agile Development The Execution of the Business Model Large Company Transition Engineering - Requirements Docs. - Waterfall Development - QA - Tech Pubs
  • 18. Engineering Versus Agile Development The Search for the Business Model The Execution of the Business Model Scalable Startup Large Company Transition Agile Development - Continuous Deployment - Continuous Learning - Self Organizing Teams - Minimum Feature Set - Pivots Engineering - Requirements Docs. - Waterfall Development - QA - Tech Pubs
  • 19. Startups Model, Companies Plan Scalable Startup The Execution of the Business Model Large Company Transition Business Plan - Plan describes “knowns” - Known features for line extensions - Known customers/markets - Known business model
  • 20. Startups Model, Companies Plan The Search for the Business Model Scalable Startup Large Company Transition Business Model - Unknown customer needs - Unknown feature set - Unknown business model - Model found by iteration The Execution of the Business Model
  • 21. Startups Protect Mavericks, Companies Fire Mavericks Scalable Startup The Execution of the Business Model Large Company Transition - Pains in the butt - Always looking at something different - Doesn’t get with the program
  • 22. Startups Protect Mavericks, Companies Fire Mavericks The Search for the Business Model Scalable Startup Large Company Transition - CEO of your company - Finds your next market
  • 23. Strategy and Structure Apologies to Alfred Chandler
  • 24. 1870’s: Organize by Functions • Problem Companies going from local to regional to national. Specialized skills needed • Strategy Separate ownership from professional management • Structure Organize into functions: Sales, Mfg, Finance, Marketing • Tools Organization Chart • Leaders U.S. Steel, Standard Oil, Pennsylvania Railroad
  • 25. CEO Organize by Functions Sales Marketing Engineering Finance … … … … … … … … … … … … Mfg … … …
  • 26. 1920’s: Organize by Divisions • Problem Companies have dissimilar products and/or national geography - functional organization not efficient • Strategy Group similar products together by regions or channels • Structure Organize companies into self-contained divisions. Add corporate staff for shared functions • Tools Distributed Accounting, Bus School, Consulting Firms • Leaders DuPont, General Motors, Sears, Standard Oil
  • 27. CEO Organize by Divisions Bus Div A Bus Div B Bus Div C Bus Div C … … … … … … … … … Replicate functions inside separate divisions
  • 28. CEO Organize by Divisions Add Corporate Staff Adv R&D CIO CMO M&A CFO Legal Bus Div A Bus Div B Bus Div C Bus Div C
  • 29. 1960’s: Organize by Matrix • Problem Companies have complex, short term projects • Strategy Temporary organization driven by project • Structure Project mgmt across functions as needed by project • Tools Gantt Charts, Project Management •Leaders NASA, Lockheed, Northrup, Boeing,…
  • 30. CEO Organize by Project (Matrix) Projects Engineering Q/A Finance Project Mgr Eng 1 Eng 2 Eng 3 … … … … … … Mfg … … Project Mgr … Project Mgr Functional Mgmt Functional Mgmt Functional Mgmt Functional Mgmt
  • 31. 21st Century Corporate Issues • Continuous and unrelenting disruption – China – Globalization – Transparent pricing – Plummeting cost of entry – Internet, mobile…
  • 32. 21st Century Corporate Structure Issues • Current forms of corporate organizations are designed for execution • Attempts to “add” innovation break these structures – KPI’s, Processes, financials, HR, Bus Units, etc
  • 33. Continuous disruption requires continuous innovation
  • 34. Types of Corporate Innovation
  • 35. Types of Corporate Innovation Types of Corporate Innovation Disruptive Innovation Continuous Innovation Process Innovation
  • 36. Process Innovation • Improve part of an existing business model – Cost, revenue, service, etc • Can be done by an individual part time • Domain of the general manager
  • 37. Business Model (Continuous) Innovation • Requires existing business unit resources • Uses internal business unit incubator and Investment Readiness Level • Domain of the general manager Example: Pepsi buying Frito Lay/Quaker Oats, Exxon buying XTO ($41B)
  • 38. Disruptive Innovation • Requires new & existing business unit resources • Uses corporate incubator or Skunk Works • Domain of the CEO and board Example: Amazon and AWS, Apple and iPod, iPhone
  • 39. Corporate Innovation Portfolio • To run these innovation projects: – corporation’s innovation is a portfolio of projects – occurs inside Bus Units and Functional Org – As well as outside
  • 40. Innovation Portfolio Innovation Portfolio Disruptive Innovation Continuous Innovation Process Innovation • Build • Buy • Partner • Open Types of Corporate Innovation
  • 41. Buying Innovation What Can You Acquire? Disruptive Innovation Continuous Innovation Process Innovation • Revenue • Product Line + Users • Product Line • Teams • Intellectual Property Why Acquire? Innovation Portfolio • Build • Buy • Partner
  • 42. Building Innovation Where Do You Build It? Disruptive Innovation Continuous Innovation Process Innovation • Skunk Works • Advanced R&D • Functional Org • Divisional Engineering • Intellectual Property Type of Innovation Innovation Portfolio • Build • Buy • Partner
  • 43. Issues Structure and Tools for Execution are not Structure and Tools for Innovation
  • 44. Current Corporate Metrics Focus on Execution • Finance focus – Return on Net Assets, Return on Capital and Internal Rate of Return – minimum rate of return on a project or investment • Execution focus – Customer acquisition cost, sales per rep, etc Christensen HBR 6/13
  • 45. CEO M&A/Strat Finance Legal CTO/R&D CMO egy HR • Hiring policies • Promotion Policies • Termination Policies • Bonus/Incentives • … • Return on Net Assets • IRR • Hurdle Rates • Net/Gross Margin • operating income • … • Contracts • Compliance • Governance… Bus Div A Bus Div B Bus Div C Bus Div C •market share •quote to close ratio •sales per rep •customer acquisition/activation cost •average selling price • customer lifetime value • churn/retention • sales per square foot • inventory turns • … • Strategic/Operational fit • Accretion/Dilution • Total Shareholder Return • Economic Margin • Market Value Added •… • Tech Strategy • Future Direction • Chief Architect •… • …
  • 46. Corporate Innovation Quandary • Tools to manage execution are destructive for innovation • Innovation metrics are different • How do we manage to do both without killing the core business?
  • 47. Even Elephants Can Dance Implementing Innovation in Large Companies
  • 48. Start With Lots of Small Wins • Develop an experimentation and prototyping culture • Use Lean Startup methodology – Early Market Testing – Fast Iterations – Fast Go/No Go Decisions
  • 49. Operate with Speed and Urgency
  • 50. Corporate Innovation By Design • Start Small • Aim High • Iterate Fast • Fail fast, learning • Innovation as incremental but permanent change All require cultural change CEO/Exec Staff buy-in
  • 51. The Lean Startup A much better way to build innovation
  • 52. 1. Frame Hypotheses • Frame Hypotheses 
  • 53. 1. Frame Hypotheses • Frame Hypotheses  Business Model Canvas Customers Get/Keep/ Product / Grow Service Revenue Partners Activities Resources Costs Channel
  • 54. 2. Test Hypotheses • Frame Hypotheses • Test Hypotheses  Business Model Canvas 
  • 55. 2. Test Hypotheses • Frame Hypotheses • Test Hypotheses Business Model Customer Development  
  • 57. There Are No Facts Inside The Building, So Get the Heck Outside
  • 58. 3. Build Incrementally & Iteratively • Frame Hypotheses • Test Hypotheses • Build the product incrementally & Iteratively Business Model Customer Development Agile Engineering   
  • 60. Encourage Multi-Disciplinary Teams • Pure tech teams lack customer perspective – Tend to push the product rather than understand the problem • Pure business teams lack tech reality/judgment
  • 61. Core Team of Innovation Managers • Office of Chief Innovation Officer • They manage the Innovation Cycle – Logistics – Administration – Assessment – Training
  • 62. CEO Chief M&A/Strat Finance Legal CMO Innovation Officer egy HR Add Corp Innovation Staff Bus Div A Bus Div B Bus Div C Bus Div C
  • 63. Chief Innovation Officer • Training – Integral to the projects – Lean LaunchPad/I-Corps Curriculum • Mentors – Integral to the projects – Corporate and divisions • Open Innovation – Integral to the projects
  • 64. Core Business + Disruptive Projects • Run Process & Business Model innovation in Business Units/Functional Organization • Run Disruptive projects in corporate • Bottoms up + Top Down innovation
  • 65. CEO Chief M&A/Strat Finance Legal CMO Innovation Officer egy HR Add Divisional Lean Innovation Projects Bus Div A Bus Div B Bus Div C Bus Div C • … Lean Project 1 Lean Project 2 Lean Project n Lean Project 1 Lean Project 2 Lean Project n Lean Project 1 Lean Project 2 Lean Project n Lean Project 1 Lean Project 2 Lean Project n
  • 66. CEO Chief M&A/Strat Finance Legal CMO Innovation Officer egy HR Add Corporate Lean Innovation Projects Bus Div A Bus Div B Bus Div C Bus Div C • … - Disruption Lean Project 1 Lean Project 2 Lean Project n Lean Project 1 Lean Project 2 Lean Project n Lean Project 1 Lean Project 2 Lean Project n Lean Project 1 Lean Project 2 Lean Project n Lean Project 1 Lean Project 2 Lean Project n
  • 67. CEO M&A/Strat Finance Legal CTO/R&D CMO egy HR • Hiring policies • Promotion Policies • Termination Policies • Bonus/Incentives • … • Return on Net Assets • IRR • Hurdle Rates • Net/Gross Margin • operating income • … • Contracts • Compliance • Governance… Add Innovation Policies and Processes to each function Bus Div A Bus Div B Bus Div C Bus Div C •market share •quote to close ratio •sales per rep •customer acquisition/activation cost •average selling price • customer lifetime value • churn/retention • sales per square foot • inventory turns • … • Strategic/Operational fit • Accretion/Dilution • Total Shareholder Return • Economic Margin • Market Value Added •… • Tech Strategy • Future Direction • Chief Architect •… • …
  • 68. Innovation As Incremental but Permanent Change • Each innovation win needs to permanently change the corporation – New KPI’s – New policies – New procedures – New comp plans • Every time an innovation project wins an exception to an existing process, institutionalize the exception
  • 69. Can Start Multiple Ways • Top down – CEO mandate • Chief Innovation Officer Initiatives • Divisioanal projects
  • 70. Common Corporate Innovation Language and Metric • Innovation needs a common corporate language • All the support functions: HR, IT, Finance, Legal need to develop innovation processes and procedures
  • 71. NASA
  • 72. NASA/DOD Technology Readiness Level (TRL) • Formal Way to assess project maturity • Quantify Relative Risks • Data Driven • Adopted by NASA, DOD, FAA, ESA…
  • 73. NASA/DOD Technology Readiness: Levels 1 & 2 Basic Technology Research • Basic principles observed • Technology concept formulated Concept
  • 74. NASA/DOD Technology Readiness Levels 3 & 4 Research to prove Feasibility • Experimental proof of concept • Breadboard validation in lab Research Concept
  • 75. NASA/DOD Technology Readiness Levels 5 & 6 Demo Prototype • Breadboard validation outside the building • System demo in real-world Demo Research Concept
  • 76. NASA/DOD Technology Readiness Levels 7, 8, 9 Deployment • System Development • System deployed in real-world Demo Research Concept
  • 77. What Can We Do With All This Data? The Investment Readiness Level
  • 79. Investment Readiness Level We can do the same for new ventures
  • 80. Investment Readiness Level We can do the same for new ventures Emphasis is on data
  • 81. Investment Readiness Level • A Formal Way to Quantify Relative Risks • Data Driven • Analog to NASA/DOD Technology Readiness Level (TRL)
  • 82. Investment Readiness: Levels 1 & 2 Hypotheses • Value Proposition summarized • Canvas hypotheses articulated Hypotheses
  • 83. Investment Readiness: Levels 3 & 4 Problem / Solution Fit • Problem Solution fit • Low fidelity MVP Problem/Solution Hypotheses
  • 84. Investment Readiness: Levels 5 & 6 Validate • Product/Market fit • Right side of canvas Product/Market fit Problem/Solution Hypotheses
  • 85. Investment Readiness: Levels 7 & 8 Validate • Left side of canvas Product/Market fit Problem/Solution Hypotheses
  • 86. Investment Readiness: Levels 9 Metrics That Matter Left side of the canvas Product/Market fit Problem/Solution Hypotheses
  • 87. Technology Readiness Level Investment Readiness Level Metrics that Matter Validate Left side of Canvas Validate Right side of Canvas Product/Market Fit Problem/Solution Hypotheses
  • 88. Summary • 20th century corporate structures focused on execution • Continuous disruption requires continuous innovation • We need a new model for innovation
  • 91. Medical Device: Cheap DNA Testing Source: alexander osterwalder
  • 92. Medical Device: Cheap DNA Testing 110K 5% MARKET SHARE HOW COULD YOU IMPROVE THIS BUSINESS MODEL? 5.5M 2.8M 1.2M 1M $1,000/ DEVICE FIXED COST 50% COMMISSION $225/DEVICE Source: alexander osterwalder
  • 93. Medical Device: Cheap DNA Testing 110K 5% MARKET SHARE 5.5M 2.8M 1.2M 1M $1,000/ DEVICE FIXED COST 50% COMMISSION $225/DEVICE Source: alexander osterwalder
  • 94. Medical Device: Cheap DNA Testing 110K 5.5M 2.8M 1.2M 1M 5% MARKET SHARE 24.8M $75/ STRIP $7/ STRIP 2.3M Source: alexander osterwalder
  • 96. Buy IP Buy Product Line Buy Teams Buy Product Line + Users/Payers Buy Revenue Acquisition Intention New Venture Phase: Search versus Execution Types of Innovation Acquisitons
  • 97. Acquisitions: Searching or Executing? Buy IP Buy Product Line Buy Teams Buy Product Line + Users Buy Revenue Acquisition Intention New Venture Phase: Search versus Execution Searching Executing
  • 98. Acquisition Integration Strategy Buy IP Buy Product Line Buy Teams Buy Product Line + Users Buy Revenue Acquisition Intention Acquirer Strategy Integrate Independent Integrate
  • 99. Data on Hypotheses, Pivots, MVPs, Metrics Evidence and Trajectory
  • 110. Scorecard: 9 way Kanban Board with data

Editor's Notes

  1. Apple: 700K apps for iPhone & iPad / 25B downloads Google: 600K / 10B downloadeds of the retail videos accessed by a mobile device, 70% are accessed by an Apple device Apple App store generates $5.4M/day for top-200 apps Google generates just $679K for top-200 apps
  2. Apple: 700K apps for iPhone & iPad / 25B downloads Google: 600K / 10B downloadeds of the retail videos accessed by a mobile device, 70% are accessed by an Apple device Apple App store generates $5.4M/day for top-200 apps Google generates just $679K for top-200 apps
  3. Apple: 700K apps for iPhone & iPad / 25B downloads Google: 600K / 10B downloadeds of the retail videos accessed by a mobile device, 70% are accessed by an Apple device Apple App store generates $5.4M/day for top-200 apps Google generates just $679K for top-200 apps
  4. Apple: 700K apps for iPhone & iPad / 25B downloads Google: 600K / 10B downloadeds of the retail videos accessed by a mobile device, 70% are accessed by an Apple device Apple App store generates $5.4M/day for top-200 apps Google generates just $679K for top-200 apps