This document discusses lean startup principles and how large corporations can adopt these principles to promote innovation. It summarizes that the average company lifespan has decreased significantly, and traditional corporate innovation methods like skunkworks projects, intrapreneurship, and innovation labs are often too slow and unable to adapt to market changes. Lean startup practices of building, measuring, and learning through customer development and minimal viable products allows for faster innovation. Large companies can establish innovation colonies that operate separately with lean budgets and metrics focused on experiments and learning rather than short-term revenue. GE has adopted lean practices through initiatives like FastWorks.

1. Lean Enterprise
Singapore
Adrian Tan @iadriantan
adrian@jfdi.asia

2. INTRODUCTION 3
Adrian Tan
Lean Startup Coach, JFDI Asia
Founded 2 startups
Founder Institute/JFDI Alumni
Coached hundreds of startups across Asia

3. WELCOME TO OUR VERY FIRST

4. GETTING TO KNOW YOU

5. Average lifespan has decreased from 61 years in 1958 to 18 years today
BIG COMPANY CHURN

6. Source: Upfront Ventures
COST OF HOSTING

11. Asean Economic
Community (AEC)
Combined GDP of US
$2.6 trillion (2014)
4th Largest
single market
after EU, USA
and China
(projected 2030)
5% Annual
Growth
(EU 2%)
Foreign Revenue by top
1000 companies in
ASEAN
$149.9 billion in 2011 to
$223.9 billion last year
(EU 2%)
Young
population
Half below 28.8
years of age
China: 40.8
EU: 42.1
27 % of
Singapore’s
Direct
Investment
OPPORTUNITIES
http://www.straitstimes.com/asia/se-asia/economics-of-asean-community

12. GDP per Capita of
richest member is
76 times larger
than the poorest's
Population of
largest country is
600 times the
smallest
Uncertainties and
Inconsistencies
● Political
● Economic
● Legal
Protectionist
sentiment in some
member countries
Equity
Limitations
http://www.straitstimes.com/asia/se-asia/economics-of-asean-community
CHALLENGES

13. Customer Discovery
Customer Validation
Customer Creation Company Building
Startups
Agile, Nimble, Fail Fast
Corporations
Scale, Leverage, Distribution, Can’t Fail

14. Startups Corporations
Minimize
Risks
Maximize
Opportunity

15. NEW “SCIENCE” OF STARTUPS

16. 3

17. 17

18. 9 IN 10 STARTUPS FAIL
2

19. 2
UNCERTAINTY

20. 2
The Waterfall Approach
1)Assumed Customers’ Needs
2) Focus on Debugging
3) Product ships late

21. Lean Startup 2
BUILD
MEASURELEARN
1. Understands potential
customer’s needs and
challenges
2. Focus on validated learning
3. Minimal Viable Product gets
shipped quickly

22. Lean Startup 2
BUILD
MEASURELEARN
IDEAS
CODE
DATA

23. 23
Source: “The Lean Enterprise”Trevor Owens/Obie Fernandez
$40 Billion

24. 24
THE LEAN ENTERPRISE
Incubate Early
Acquire Early
Invest Early

25. 25
HOW BIG COMPANIES
INNOVATE

26. Skunkworks R&D
● Lockheed Martin, 3M,
Intel, AWS
● Waterfall style- slow to
market
● Not conducive to
disruptive innovation
● Insufficient for
unpredictable market
shifts and competition

27. Intrapreneurship
● Aims to commercialize employee ideas
● Widely publicized to boost employee
morale and promote innovation
● Waterfall style- slow to market
● Tend to be driven by existing business
units rather than disruptive innovation
● Internal politics may be an issue
● Qualcomm Venture Fest
● Employees didn’t know how to move
projects forward

28. Intrapreneurship
● Aims to commercialize employee ideas
● Widely publicized to boost employee
morale and promote innovation
● Waterfall style- slow to market
● Tend to be driven by existing business
units rather than disruptive innovation
● Internal politics may be an issue
● Qualcomm Venture Fest
● Employees didn’t know how to move
projects forward

29. Innovation Labs
● “Start-up style” for salaried
employees
● Not equipped to scale their
successes
● Mercy at the quarterly budgets
● Budgetary and political pressure
for promising projects
● Xero PARC

30. Hackathons
● Events
● Morale-booster
● Short term
● No real products

31. Innovation Colony
● Corporate accelerators
● Separate locations
● Lean (small) budgets
● Fast to ship
● Market Valuation
● Skin in the game
(equity)
Source: Lean Enterprise by Trevor Owen

32. A Start-Up is human institution
designed to create a new
product or service under
conditions of extreme
uncertainty
-Eric Ries
“The Lean Startup”

33. 33
Discover
Validate
Accelerate
Problem-Solution Fit
Product- Market Fit

34. 34
Discover
Validate
Accelerate
Problem-Solution Fit
Product- Market Fit
Ideate
Problem
Discovery

35. ● What if it FAILS?
● What if it takes too long to make money?
● How am I to account for my employees
time?
BUT!

36. Measure Innovation NOT Revenue
● Experiments made
● Assumptions tested
● Customer Development
● Prototypes developed
● Professional Development
● Employee Morale
$50k, 3 months
100 customer interviews
5 prototypes
Startup Business
$10 million
2 years
3 products
vs
INNOVATION ACCOUNTING

37. How GE does LEAN

38. https://www.youtube.com/watch?
v=nhmQNW1mkSk&feature=youtu.be&t=12m23s

39. Q&A
16