Every CEO talks about innovation, but few established organisations are good at doing it. I explain why that's difficult using Clayton Christensen's RPV framework and how it can be done using Lean Startup tools

1. Mukom Akong T | @perfexcellent
In Established Organisations
INNOVATION
Cracking the Enigma of

2. How many of you used a Kodak product in the last 90 days?

3. How many of you used a Kodak product in the last 90 days?
CANON
NIKKON
SONY
OLYMPUS
PENTAX

4. INNOVATION

5. WHAT INNOVATION IS/ISN’T

6. WHAT INNOVATION IS/ISN’T
Creativity | Ideas
Invention
R&D
Investment
Patents
About technology
Hackathon
Design
Innovation labs

7. WHAT INNOVATION IS/ISN’T
Creativity | Ideas
Invention
R&D
Investment
Patents
About technology
Hackathon
Design
Innovation labs
IDEA
which creates
new VALUE
for a CUSTOMER
and the BUSINESS
Creativity | Ideas
Invention
R&D
Investment
Patents
About technology
Hackathon
Design
Innovation labs

8. WHAT INNOVATION IS/ISN’T
Creativity | Ideas
Invention
R&D
Investment
Patents
About technology
Hackathon
Design
Innovation labs
IDEA
which creates
new VALUE
for a CUSTOMER
and the BUSINESS
Innovation = Idea + Customer Value + Business Value
Creativity | Ideas
Invention
R&D
Investment
Patents
About technology
Hackathon
Design
Innovation labs

9. “We must become like startups to be more
innovative”
- The CEO

10. Challenge #1 - An Established Company …

11. Challenge #1 - An Established Company …
… EXECUTES a proven business
model. It’s what startups are when they
grow up!

12. Challenge #1 - An Established Company …
“A startup is a temporary
organisation used to
SEARCH for a repeatable &
scalable business model”
- Steve Blank
Is fundamentally different from a Startup!

13. Challenge #1 - An Established Company …
Is fundamentally different from a Startup!

14. Mistake #1
The WISH…

15. The REALITY

16. Challenge #2 - CAN it?
Trying to create a startup inside corporations

17. “Independent of the CAPABILITIES of its
people, organisations themselves have
capabilities that determine what they can or
cannot do. These capabilities are
determined by its Resources, Processes &
Values”

18. Ideas

19. ? Drama
Improvement
Invention
InnovationIdeas

20. Drama
Improvement
Invention
InnovationIdeas
Capabilities

21. RESOURCES
Drama
Improvement
Invention
InnovationIdeas
Capabilities
Tangible and intangible assets that can be build, bought or sold

22. RESOURCES
PROCESSES
Drama
Improvement
Invention
InnovationIdeas
Capabilities
How employees transform resources → valuable products | services

23. RESOURCES
PROCESSES
VALUES
Drama
Improvement
Invention
InnovationIdeas
Capabilities
Standards by which employees set priorities than enable them make
operational judgement

24. Resources are the Least of Your
Problems
Cash
Staff
Technology
Human capital
Accumulated knowledge
Relationships
RESOURCES

25. Resources are the Least of Your
Problems
Cash
Staff
Technology
Human capital
Accumulated knowledge
Relationships
RESOURCES
Employees lack the idea development knowledge, skills & experience

26. “Innovation has nothing to do with how
many R&D dollars you have. When Apple
came up with the Mac, IBM was spending
at least 100 times more on R&D. It’s not
about money. It’s about the people you
have, how you’re led, and how much you
get it.”

27. Innovation Requires A Different Skillset

28. Innovation Requires A Different Skillset
Quantitative analysis
Business case
Strategy & planning
Budget control
Role power

29. Innovation Requires A Different Skillset
Qualitative analysis
Prototyping
Interviewing
Idea management
Experimentation
Relationship power
Quantitative analysis
Business case
Strategy & planning
Budget control
Role power

30. Process - Bringing Light to Dark Arts
Framework
Common vocabulary
Tools & techniques
Danger: all existing processes are EXECUTION-optimised
PROCESSES

31. Innovation Drama!
Hackathons | Design Thinking | Brainstorming | Pitchfests
What we get when there’s no Innovation Process!

32. A simplified Innovation Process

33. A simplified Innovation Process
Brainstorming | Environmental Analysis

34. A simplified Innovation Process
Who might this
help?
Customer Profile | Job-To-Be-Done

35. A simplified Innovation Process
Seek
Problem-Solution
Fit
Who might this
help?
Value Map | Lean Canvas

36. A simplified Innovation Process
Seek
Problem-Solution
Fit
Seek
Product-Market
Fit
Who might this
help?
Prototyping | Testing

37. A simplified Innovation Process
Seek
Problem-Solution
Fit
Seek
Product-Market
Fit
Who might this
help?
Prototyping | Testing

38. Seek
Business Model
Fit
Business Model Canvas | Lean Canvas

39. Seek
Business Model
Fit
Strategic
Alignment?
Innovation Strategy

40. Seek
Business Model
Fit
Strategic
Alignment?
Spin-out
Innovation Strategy

41. Seek
Business Model
Fit
Strategic
Alignment?
Spin-out
Divest | Sell
Innovation Strategy

42. What is the data really saying? VALIDATE! VALIDATE!!

43. VALUES
Culture
Innovation KPIs
Attitude to failure
Decision-making
Politics
“What are we?”
This is the hardest part to change
VALUES

44. RESOURCES
PROCESSES
VALUES
Drama
Improvement
Invention
InnovationIdeas
Capabilities

45. Which of These is Most Creative?

46. Which of These is Most Creative?
Mouse, GUI, Object-Oriented Programming, WYSIWYG, mouse, mobile computing
What if Xerox’s had NOT seen itself as the king of photocopiers?