1) Traditional companies must adapt to constant change and new technologies by enabling flexible workforces that can quickly respond to opportunities in IoT and connected worlds. 2) Industry boundaries are blurring as smart connected products allow companies to compete across broader systems and industries, like a tractor company competing in farm automation. 3) To drive innovation, companies need balanced "performance innovation engines" and an "innovation stack" approach focusing on minimum viable products tested through quick build-measure-learn cycles, rather than fully-formed products.

1. IoT and Connected World in Traditional Business
suggestions on managing innovation stack for traditional companies
byThomasGrones
PMConnectedCar|TEXACARe
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

2. Markets
People Technology
Organization
Today’s organization must be able to work
productively in an environment of constant
change.
Enterprises need more than the right
technology, they need to harness that
technology to enable the right people
to do the right things in an adaptable,
change-ready and responsive liquid
workforce.
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

3. «The main thing that has caused companies to fail,
in my view, is that they missed the future»
Larry Page
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

4. All organizations operate today in the same global environment.
The difference between winners and losers are their strategies and
capabilities to indentify and act on opportunities
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

5. Need for industry boundaries redefinition:
The increasing capabilites of smart, connected product not only reshape
competition within industries but expand industry boundaries.
This occurs as the basis of competition shift…
from discrete product,
to product systems consisting of closely related products,
to system of systems that link an array of product systems together.
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

6. A tractor company – for instance – may find itself competing in a broarder
farm automation industry.
Product Smart
Product
Smart
Connected
Product
+
+
+
Product
System
System of Systems
+
Farm
Equipment
System
Tillers
PlantersCombine
Harvesters
+
Farm
Equipment
System
Wheater
Data
System
Irrigation
System
Seed
Optimization
System
Farm
Management
System
Field Sensors
Irrigation Nodes
Farm Performance DB
Seed DB
Rain Sensors
Source: https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

7. The business context of today
- Market shifts are really unpredictable;
- Small teams can create immense value;
- New markets are winner-take-all;
- Speed is the only competitive advantage;
- For every success, there are multitude of failures
- Proper budget settings on R&D and Launch
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

8. Performance Innovationvs
Problems are well understood
Existing markets
Innovation improves performance
Evolutionary innovation efforts
Satisfying current customer needs
Traditional Business Models
Problems are not well understood
New markets
Innovation as game changer
Revolutionary innovation efforts
Satisfying emerging needs
Emerging Business Models
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

9. Performance and Innovation have to work in Sinergy
It’s the lesson I’ve learned when it’s up to traditional business models
having to face with disruptive business models as «connected» and «IoT»
Performance
Engine Innovation
Engine
Funding
Innovation & learnings
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

10. “Don’t worry about people stealing your ideas.
If your ideas are any good, you’ll have to ram them
down people’s throats.”
Howard Aiken
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

11. Suggested approach to Innovation Stack
beside easy to catch customer audit, and business model the real focus
has to be MVP: minimum viable product
Customer
Development
Business
Model MVP
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

12. Speed is the only competitive advantage
Lean startup need to work together with MVP. Lean is anyway not to be
confused with «low cost», it’s only about speed. The goal is to move
through the build-measure-learn-feedback loop as quick as possibile and
be sure to setup the process.
Tecnology Trigger
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Peak of Inflated Expectations
VISIBILITY
TIME
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

13. MVP Minimal Viable Product
It’s the sweet spot between products without the required features that fail
immediately when shipped and the products with too many features that cut
return and increase risk.
Delightful
Usable
Reliable
Feasible
Usable
Reliable
Feasible
NOT THIS!!! -------
BUT THIS!!! -------
Delightful
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

14. Concepts vs. Products
- Describe your MVP concept to possible stakeholders/buyers;
- Share wireframes or mock-ups, demos;
- Gather feedback from possible buyers (setup personas);
- Do NOT build the product … yet
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

15. In three years from now, when
talking to a customer what
would you want to hear about
your new product ?
Focus for this journey
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones

16. Thanks for Your Attention
Managing innovation stack for traditional companiesin IoT and Connected World – Thomas Grones
byThomasGrones
PMConnectedCar|TEXACARe