Innovation driven entrepreneurship

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The document discusses different types and scales of innovation including innovation-driven entrepreneurship, skills-driven entrepreneurship, corporate innovation at Bell Labs, innovation addressing personal or user needs, bootstrap financing cycles, internal innovative processes at Ordinate for language testing, innovation occurring internally or being externally visible, differentiating innovation from operations, Michael Porter's value chain model, providing innovation like the 56k modem, innovating in new domains like synthetic biology, and lessons that big changes may be easier than realized.

Technology Business

Innovation-Driven Entrepreneurship

Brent Townshend
Monday, July 2, 12 1

My ﬁrst job

“Skills-Driven”
Entrepreneurship

Monday, July 2, 12 2

My ﬁrst job

Revenue
0 1 2 3

Employees

Monday, July 2, 12 2

Bell Labs
Corporate Innovation

Monday, July 2, 12 3

“Feel the Need”

Personal Need

Imagining what
others need

AND,
Users often miss
disruptive
change opportunities

Monday, July 2, 12 4

Bootstrap Financing Cycle

Presales

Breakeven

Monday, July 2, 12 6

Ordinate - Language Testing

Monday, July 2, 12 7

Flavors of Innovation

USE IT SELL IT
Internal

Externally Visible

Monday, July 2, 12 9

Innovation vs Operations
100%

75%
Gross Margin

50%

Traditional
Innovative Processes
25% Unique Prod/Service
Pure invention

0%
Innovation

Monday, July 2, 12 13

Value Chain

Michael Porter, 1985
Monday, July 2, 12 14

56k Modem

✦ No product/No service
✦ Pure innovation/invention
✦ Leverage IP maximally

Monday, July 2, 12 15

Scales of Innovation
✦ Innovate in HOW (internal methods)
✦ Innovate in WHAT (product includes innovation)
✦ Ordinate test
✦ PROVIDE the innovation (others incorporate the innovation)
✦ 56k Modem
✦ New DOMAINS of innovation (entire ﬁeld is new)

Monday, July 2, 12 17

A New Frontier:
Synthetic Biology

✦ New ﬁeld = new problems/solutions
✦ opportunity: ﬁrst to innovate/invent

Monday, July 2, 12 18

Genetic Switches
✦ Programmed completely by
sequence of DNA
✦ Analysis/characterization
using next generation
sequencing
✦ Large data/analysis
requirements

Monday, July 2, 12 19

Lessons Learned
Innovation

Return/Employee

1 10 100 1000

Employees

Monday, July 2, 12 20

Bigger Lesson

BIG CHANGE
is easier
than people realize

Monday, July 2, 12 21

Hvala!

Questions?

Monday, July 2, 12 22

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Innovation driven entrepreneurship

1. Innovation-Driven Entrepreneurship Brent Townshend Monday, July 2, 12 1

2. My ﬁrst job “Skills-Driven” Entrepreneurship Monday, July 2, 12 2

3. My ﬁrst job Revenue 0 1 2 3 Employees Monday, July 2, 12 2

4. Bell Labs Corporate Innovation Monday, July 2, 12 3

5. “Feel the Need” Personal Need Imagining what others need AND, Users often miss disruptive change opportunities Monday, July 2, 12 4

6. Bootstrap Financing Cycle Presales Breakeven Monday, July 2, 12 6

7. Ordinate - Language Testing Monday, July 2, 12 7

8. Monday, July 2, 12 8

9. Flavors of Innovation USE IT SELL IT Internal Externally Visible Monday, July 2, 12 9

10. Innovation vs Operations 100% 75% Gross Margin 50% Traditional Innovative Processes 25% Unique Prod/Service Pure invention 0% Innovation Monday, July 2, 12 13

11. Value Chain Michael Porter, 1985 Monday, July 2, 12 14

12. Value Chain Michael Porter, 1985 Monday, July 2, 12 14

13. 56k Modem ✦ No product/No service ✦ Pure innovation/invention ✦ Leverage IP maximally Monday, July 2, 12 15

14. 56k Modem Monday, July 2, 12 16

15. Scales of Innovation ✦ Innovate in HOW (internal methods) ✦ Innovate in WHAT (product includes innovation) ✦ Ordinate test ✦ PROVIDE the innovation (others incorporate the innovation) ✦ 56k Modem ✦ New DOMAINS of innovation (entire ﬁeld is new) Monday, July 2, 12 17

16. A New Frontier: Synthetic Biology ✦ New ﬁeld = new problems/solutions ✦ opportunity: ﬁrst to innovate/invent Monday, July 2, 12 18

17. Genetic Switches ✦ Programmed completely by sequence of DNA ✦ Analysis/characterization using next generation sequencing ✦ Large data/analysis requirements Monday, July 2, 12 19

18. Lessons Learned Innovation Return/Employee 1 10 100 1000 Employees Monday, July 2, 12 20

19. Bigger Lesson BIG CHANGE is easier than people realize Monday, July 2, 12 21

20. Hvala! Questions? Monday, July 2, 12 22

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