Entrepreneurship for Larger Organizations, IEEE, TEMS Presentation by Ikhlaq Sidhu, UC Berkeley

1. Ikhlaq Sidhu
Ikhlaq Sidhu,
Faculty Director and Founder,
Sutardja Center for Entrepreneurship & Technology
Department of Industrial Engineering & Operations Research
IEOR Emerging Area Professor Award
Entrepreneurship Models
for Larger Organizations
IEEE TEMSCON 2017

2. Ikhlaq Sidhu
What is happening at Sutardja Center (SCET)?

3. Ikhlaq Sidhu
Answer 1: Lots of Students
Our Model Brings Bay Area Executives and Entrepreneurs into the Classroom
1500 Undergraduates
100 Ph.D / Graduate Students
100 Executives
10 Global Partners
Michael Marks, KKR, former CEO, Flextronics
Shomt Ghose, Venture Partner, Onset Ventures
Udi Manber, VP Engineering, Google
Marc Andreesen, Founder, Netscape
Larry Baer, COO, San Francisco Giants
Amine Haoui, CEO, Sensys Networks
Stacey Lawson, Founder In Part, Executive Seibel
Jim Davidson, Managing Director, Silverlake Partners
Donna Dubinsky, Former CEO, Palm
Matt Caspari, co-founder, Aurora Biofuels
Richard Gorman, SVP, Siebel Systems
Mike Olson, founder and CEO, Cloudera
Brodie Keast, EVP, TiVo
David Ladd, Managing Director, Mayfield
Jeff Miller, CEO, Documentum
Eva Miranda, SVP, Sony Corporation
Ravi Mohan, Managing Director, Shasta Ventures
Ted Hoff, Inventor,of the Microprocessor
Nat Goldhaber, Managing Director, Claremont Creek Ventures
Peter Thiel, co-founder and CEO, PayPal
Victoria Hale, founder and CEO, Medicines 360
Steve Newcomb, founder , Powerset (part of Microsoft’s BING)
Pehong Cheng, CEO, Broadvision

4. Ikhlaq Sidhu
5/27/2017 Meat substitutes are on the curriculum at UC Berkeley - San Francisco Chronicle
http://www.sfchronicle.com/business/article/Meat-substitutes-are-on-the-curriculum-at-UC-10881462.php 1/5
By Jonathan Kauffman | January 24, 2017 | Updated: January 25, 2017 2:44pm
0
Meat substitutes are on the
curriculum at UC Berkeley
Biz & Tech
IMAGE 1 OF 4
Ricardo San Martin, a chemical engineering professor, leads the Challenge Lab researching meat substitutes.
Photo: Scott Strazzante, The Chronicle
Answer #2:
And a lot more..
Actually, we have lost track..

5. Ikhlaq Sidhu
Today: A Topic of more interest to our Engineering Leadership Program

6. Ikhlaq Sidhu
Some Companies were able to Adapt and Transform. Others Were Not
• Technical Drivers: Data, Algorithms, Robotics, Network Connectivity
• Structural Drivers: Business Model Adaptation and Shorter Cycles
Netflix
Blockbuster
Adapted
Disrupted

7. Ikhlaq Sidhu
Innovation Journeys
Experimentation
Adaptation/ Pivots
Learning
Searching
Working
Business
Model
Scale
Operations
Measures
Executing
Disruption
http://en.wikipedia.org/wiki/William_C._DurantOriginal story: Steve Blank

8. Ikhlaq Sidhu
www.inno-quant.com
The best people for each phase of Innovation are different 8
Working Model
Characteristics of People in the
Search Phase
Characteristics of People in the
Scaling Phase
Experimentation, Adaptation,
Learning Customer + Technology
Scale, Operations, Measures,
Accounting
Change the world
Don’t deviate from a working
process
Comfortable with unknowns Likes plans, avoids unknows
Skills
Motivation
Characteristics
www.inno-quant.com
In company projects, horizon 1 projects are typically business scaling,
horizon 2 and 3 projects are in the search and experiment phase
11
H1: CoreH2: AdjanciesH3: Moonshot
Searching Phase
Working Business Model
Scaling Phase
Experimental Operational Innovation
The Best People in Each Phase of Innovation Are Different
Early stage projects have more unknown variables.
Early = Higher Risk. Expected Reward is also higher.

9. Ikhlaq Sidhu
Suppose You Are Trying to Create Something New. What Can Go Wrong?
1. Can’t Tell the Story in a way that people can understand
2. Did not get support of stakeholder (internal or external ecosystem)
3. Its not really strategic to the company – or its not the right time for this project – but the innovator
does not understand why
4. HR/Finance can’t or don’t know how to help
5. The team that creates does not want to operationalize, need transition team.
6. Culture or Organization does not support or allow
7. Incentive structure: Does support change?

10. Ikhlaq Sidhu
Tactical Fundamentals

11. Ikhlaq Sidhu
Steve Blank
Operational
Metrics to scale
Completed
Ecosystem
Sales Process
Business Model
Engaging Story
Insight
Sidhu /
Berkeley Method
Technology
Readiness Level
Developed at NASA

12. Ikhlaq Sidhu
Proposed by Steve Blank
Operational
Metrics to scale
Completed
Ecosystem
Sales Process
Business Model
Engaging Story
Insight
Version: Berkeley Method,
Adapted from Steve Blank
Technology
Readiness Level

13. Ikhlaq Sidhu
Identify the Stage of Your Project
Technical Readiness
System Test,
Launch, Ops
System/Subsystem
Demonstration
Development
Progress
Feasibility
Research
Insight Story &
Value
Validation Business
Model
Sales
Process
Complete
Ecosystem
Operational
Metrics
Business Investment Readiness
X
Y
Z

14. Ikhlaq Sidhu
What if the project is a Transformation or Business Model Change:
Adding, Letting Go, and Change Management
X
Dimension A
Dimension
B
Company or
Project: today
Company or
Project: Next
Path
Z

15. Ikhlaq Sidhu
What if the project is a Transformation or Business Model Change:
Adding, Letting Go, and Change Management
Dimension A
Dimension
B
Company or
Project: today
Company or
Project: Next
Path
?
A. What do you need to acquire or learn?
B. What do you need to let go?
C. First principle: You can’t be happy where you are.
D. Its like getting a new degree part time, while you still work at the last job.

16. Ikhlaq Sidhu
What Allows a Firm to Adapt
Three Layers That Effect Innovation In an Existing Organization
www.inno-quant.com
For a company to be effective, there are three layers to the organization:
1) Tactical activities 2) Organizational Culture, and 3) Leadership
12
Tactics and process:
Everyday activities
Story /
Adaptation
Ecosystem
Operational
Innovation
Financial
Innovation or
Diversidy w filters
Culture for operations and / or Innovation
Innovation
Leadership
1
2
3
Culture supports
tactics
Leadership sets culture

17. Ikhlaq Sidhu
Our Framework for Innovation and LeadershipA Language for
Innovation &
Leadership
Transformative Projects
1. Stage of Project
2. Match the Team
3. Story Value
4. Steps and Behaviors
5. Leadership & Culture
6. Psych. of Innovation
& personal dev.
7. Scale, Measures, PM
Strategic Issues
1. Top Down
vs Bottom Up
2. SWOT & Disrupt
Yourself
3. Filtering for Core
Competence

18. Ikhlaq Sidhu
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