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INNOTECH:
INNOVATION CENTER BEST PRACTICES
October 8, 2015
Austin Convention Center
Your Panel Today
Steve Guengerich Tom Halbouty Gregg Hansen Mike Millard
Your Panel Today
Steve Guengerich
Invent
Innovate
Improve
Definitions:
• Invent – to create or produce (something useful)
for the first time.
• Innovate – to change something that is
established, especially by introducing new
methods, ideas, or products.
• Improve – to make or become better.
Definitions:
• Invent
• Innovate
• Improve
Lessons learned & inspiration from the world of new ventures
Economists estimate that innovation in its various forms
accounts for 30 percent to 40 percent of the gains in
growth and productivity by the American economy
during the 20th century, more than any other factor.
- What Ideas Are Worth (SONEcon, 2011)
http://www.sonecon.com/docs/studies/Value_of_Intellectual_Capital_in_American_Economy.pdf
THE PROBLEM WITH “BIG”
SCALE VS. PRODUCT/MARKET FIT
Problem/
solution fit
Product/
market fit
Scale
Validated learning
Pivots
Growth
Optimizations
Experimenters Specialists
Every process works until you add people.
Key is harmonizing your resources with balanced investment in…
Innovation
Center
Specialists
Every process works until you add people.
Key is harmonizing your resources with balanced investment in…
Your Panel Today
Tom Halbouty
Plato – How do you balance continuity and change at the
same time?
 “There's a way to do it better—find it.” Thomas Edison
 “The reasonable man adapts himself to the world; the unreasonable
one persists in trying to adapt the world to himself. Therefore all
progress depends on the unreasonable man.” George Bernard Shaw
(Co-founder London School of Economics)
 “Heroism and the respect it commands is a form of compensation by
society for those who take risks for others. And entrepreneurship is a
risky and heroic activity, necessary for growth or even the mere survival
of the economy.” Nassim Taleb (Black Swan/Antifragile)
 “Herd animals benefit by the few that search for new food and water.
Those that stay in the center of the herd are the safest in the short run,
but the herd will perish without those with the curiosity and heart to
explore.” Tom Halbouty
PEOPLE AND INNOVATION
(1) Allen Fahden – Innovation on Demand
 Start-ups, 47% advancers
 Large corporations, 3%
advancers
Your Panel Today
Gregg Hansen
Gregg Hansen
Austin IT Innovation Center
THESE FORCES WITHIN INDUSTRY ARE STILL CRITICAL
 Electrification of vehicle - Chevrolet Volt
 The increasing role of Information Technology
 Connectivity of vehicle, Internet of Things – OnStar
 Autonomous Vehicles
GENERAL MOTORS
 Size and scale of a Fortune 6 organization
 2014 sales of more than 9.9 million vehicles, 3.4 million in North America
 Production in 31 countries and doing business in more than 120 countries
 218,000 employees and >20,000 dealers globally, 169 manufacturing/assembly facilities
worldwide
 A big family
 GM brands include Chevrolet, Cadillac, Buick, GMC, Holden, Opel, and Vauxhall
 In China, GM markets under Baojun, Jiefang, and Wuling brands
 OnStar offers breakthrough technology for navigation, entertainment, diagnostics,
safety and security
 The new GM – a success story
 2014 - $155.9 billion in revenue; to date, 22 consecutive profitable quarters
2018
GM IT: DRIVING INNOVATION
2 GM-managed
data centers
2012
23
supplier-managed
data centers
80%
IT staff
running
day-to-day
operations
80%
IT staff
actively
engaged in
innovation
90% OUTsourced 90% INsourced
THE ROAD AHEAD:
IT TRANSFORMATION OBJECTIVES
 Double the speed of delivery
 Triple innovation (number of projects)
 10X business value (revenue of IT)
 Data center transformation
 Global, common applications
 Application simplification
 Extreme integration
 Reduce risk, increase reliability,
protect the enterprise
 Enable rapid business transformation
 Enterprise data warehouse
 Information, Information, Information
2016 Buick Cascada
Your Panel Today
Mike Millard
Q & A
Steve Guengerich Tom Halbouty Gregg Hansen Mike Millard
INNOTECH:
INNOVATION CENTER BEST PRACTICES
“That’s A Wrap!”
Thank YOU!!

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IT Executive Luncheon: Innovation Centers

  • 1. INNOTECH: INNOVATION CENTER BEST PRACTICES October 8, 2015 Austin Convention Center
  • 2. Your Panel Today Steve Guengerich Tom Halbouty Gregg Hansen Mike Millard
  • 5. Definitions: • Invent – to create or produce (something useful) for the first time. • Innovate – to change something that is established, especially by introducing new methods, ideas, or products. • Improve – to make or become better.
  • 7. Lessons learned & inspiration from the world of new ventures
  • 8. Economists estimate that innovation in its various forms accounts for 30 percent to 40 percent of the gains in growth and productivity by the American economy during the 20th century, more than any other factor. - What Ideas Are Worth (SONEcon, 2011) http://www.sonecon.com/docs/studies/Value_of_Intellectual_Capital_in_American_Economy.pdf
  • 9. THE PROBLEM WITH “BIG” SCALE VS. PRODUCT/MARKET FIT Problem/ solution fit Product/ market fit Scale Validated learning Pivots Growth Optimizations
  • 10. Experimenters Specialists Every process works until you add people. Key is harmonizing your resources with balanced investment in…
  • 11. Innovation Center Specialists Every process works until you add people. Key is harmonizing your resources with balanced investment in…
  • 13. Plato – How do you balance continuity and change at the same time?
  • 14.  “There's a way to do it better—find it.” Thomas Edison  “The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” George Bernard Shaw (Co-founder London School of Economics)  “Heroism and the respect it commands is a form of compensation by society for those who take risks for others. And entrepreneurship is a risky and heroic activity, necessary for growth or even the mere survival of the economy.” Nassim Taleb (Black Swan/Antifragile)  “Herd animals benefit by the few that search for new food and water. Those that stay in the center of the herd are the safest in the short run, but the herd will perish without those with the curiosity and heart to explore.” Tom Halbouty
  • 15. PEOPLE AND INNOVATION (1) Allen Fahden – Innovation on Demand  Start-ups, 47% advancers  Large corporations, 3% advancers
  • 17. Gregg Hansen Austin IT Innovation Center
  • 18. THESE FORCES WITHIN INDUSTRY ARE STILL CRITICAL  Electrification of vehicle - Chevrolet Volt  The increasing role of Information Technology  Connectivity of vehicle, Internet of Things – OnStar  Autonomous Vehicles
  • 19. GENERAL MOTORS  Size and scale of a Fortune 6 organization  2014 sales of more than 9.9 million vehicles, 3.4 million in North America  Production in 31 countries and doing business in more than 120 countries  218,000 employees and >20,000 dealers globally, 169 manufacturing/assembly facilities worldwide  A big family  GM brands include Chevrolet, Cadillac, Buick, GMC, Holden, Opel, and Vauxhall  In China, GM markets under Baojun, Jiefang, and Wuling brands  OnStar offers breakthrough technology for navigation, entertainment, diagnostics, safety and security  The new GM – a success story  2014 - $155.9 billion in revenue; to date, 22 consecutive profitable quarters
  • 20. 2018 GM IT: DRIVING INNOVATION 2 GM-managed data centers 2012 23 supplier-managed data centers 80% IT staff running day-to-day operations 80% IT staff actively engaged in innovation 90% OUTsourced 90% INsourced
  • 21. THE ROAD AHEAD: IT TRANSFORMATION OBJECTIVES  Double the speed of delivery  Triple innovation (number of projects)  10X business value (revenue of IT)  Data center transformation  Global, common applications  Application simplification  Extreme integration  Reduce risk, increase reliability, protect the enterprise  Enable rapid business transformation  Enterprise data warehouse  Information, Information, Information 2016 Buick Cascada
  • 23. Q & A Steve Guengerich Tom Halbouty Gregg Hansen Mike Millard
  • 24. INNOTECH: INNOVATION CENTER BEST PRACTICES “That’s A Wrap!” Thank YOU!!