The document discusses four types of innovation that startups embrace: unintended innovation that occurs by accident, desperation innovation that emerges when there are no other options, collaboration innovation through diverse brainstorming, and perspiration innovation through hard work. It then describes four approaches startups use to innovate: not knowing any better due to inexperience, allowing an autocratic genius innovator as CEO, failing more cheaply as startups, and having huge motivation to innovate or die.

1. 1
INNOVATION!
A VIEW FROM START UPS
Presented to I&S Teams at Watson Research Center
Bill Nussey, Silverpop Chairman & VP Corp Strategy
August 24, 2015

2. 2
The Real Truth about startup innovation…

3. 3
How do start ups manage
to drive so much
innovation?

4. 4
There are tons of start ups and
you only read about the ones
where innovation succeeds

5. 5
It was the best of
times, it was the
BLURST of times.
You Stupid
Monkey…
The Reality
About Most
Start ups..

6. 6

7. 7
Four Types of Innovation
Innovation is not a one-size-fits-all… it comes in many different flavors
COLLABORATION1
The most common approach to
innovation – get a bunch of smart
people to brainstorm ideas (hint: the
more diverse their backgrounds, the
better the brainstorming)
PERSPIRATION2
Nothing replaces hard work. Like
Thomas Edison said, “Genius is 1%
innovation and 99% perspiration”

8. 8
Four Types of Innovation
But Startups embrace a few extra kinds that aren’t as common in larger companies
UNINTENDED3
Some of the most amazing
innovation occurs entirely by
accident. The key is recognizing it
as innovation and not an accident.
DESPERATION4
Desperation is often the most
overlooked yet powerful forms of
innovation. Sometimes, the best
innovations emerge when you have
absolutely no options at all.

9. 9

10. 10
Four Approaches that Start Ups Use to Innovate

11. 11
#1 They don’t know any better
Q: Why are there so many twenty-something billionaire start up entrepreneurs?
A: Because they lack the experience to know their ideas won’t work
Even if something failed the way things worked before, it
doesn’t mean it can not work a different way.
Naiveté is one of the most powerful sources of innovation

12. 12
#2 Autocratic Genius Innovator as CEO
 Big companies tend to promote
people no further than their biggest
weaknesses – most companies
avoid having unpredictable and
overly passionate people at the top
 But, every once in a while, a
younger company lets a founder go
“all the way”. And, then, a tiny
handful of those go out and
change the world.

13. 13
#3 It is Less Expensive to Fail
 Failure is inevitable
 Mike Tyson says, “Everyone comes into
the ring with a plan until I punch them in
the mouth”
 When a project fails, most companies will
give up and move onto other projects
 Start ups can re-group and just keep
going… and going… and going
 This is so common and so accepted in
start ups there is even a nice word for it
now: Pivot

14. 14
#4 Huge Motivation to Innovate
 Start ups innovate or die
 They are small and everyone
can make an impact.
 And, the rewards can be
change people’s lives
 But the real secret is that
it’s not really about the
money (at least for most
people)… it’s about the
glory and recognition

15. 15
Thank You
Questions?