This document summarizes a presentation on developing successful businesses through innovation. It discusses key aspects of innovation such as ideation, new product development, commercialization challenges, and common reasons why most new ventures fail. It also outlines market development models and "diamonds of success" including sensing opportunities, monitoring progress, scaling capabilities, and maintaining strategic focus. The overall focus is on providing frameworks to help innovators and entrepreneurs overcome challenges and achieve desired outcomes in bringing innovations to market.

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