SlideShare a Scribd company logo
1 of 58
Overcoming the
Innovator’s Dilemma of
Innovation Labs and
Corporate Accelerators
Field Study: about 50 Labs and Corporate Accelerators
Research: about 200 international Reports, Books und Studies
Interviews: 10 Corporate Innovation Experts (September 15)
Reach: over 85.000 Slideshare Views (January 17)
Im Rahmen einer Masterarbeit an der Universität der Künste Berlin 

in Kooperation mit der Universität St. Gallen. 

Betreuung durch Prof. Dr. Dr. Schildhauer und Dr. Nancy Richter (HIIG.de)
Manuel Funk
© Honeypump GmbH
Why
Innovation Labs and
Accelerators fail? *
© Honeypump GmbH
*Don´t get me wrong: This is NOT an argumentation against Labs and Corporate Accelerators.

In contrary: We strongly belief, that corporations need protected environments for experimentation
and radical innovation beyond R&D departments.
Nevertheless many innovation centers do not fulfill expectations and we´ve been curious 

to research the reasons behind this observation.
Thesis 1:
Established companies
underestimate the destructive
power of Technology
Its harder than ever to stay on top
In 10 years 40% of the Fortune 500 will no longer exist
Olin School of Business at Washington University
© Honeypump GmbH / Innosight
German (over-) Engineering:
German companies are World Champions 

in the field of Sustainable Innovation
© Honeypump GmbH
What is missing:
Speed
Startup-Culture
Moonshot-Missions
Disruptive Innovations
Report: Digital Vortex

How Digital Disruption is Redefining Industries
Key insights from a survey of 941 business leaders around the world in 12 industries:
„Digital disruption has the potential to overturn
incumbents and reshape markets faster than
perhaps any force in history.“
„Whatever can be digitized is digitized.“
Wirtschaftshochschule International Institute of Management Development (IMD) in Lausanne
Quelle: Bradley et al, 2015
© Honeypump GmbH
Source: O’Connor 2006, Christensen / Raynor 2013
- Growth imperative
- Disruptive attackers
- Dependence on US technology platforms
- Customer centricity
- Acquiring qualified employees
- Missing interfaces for cooperations
- Exponential technological development
- Complexity and accelerated innovation cycles
Challenges for Established Companies
© Honeypump GmbH
© Honeypump GmbH
Challenges for Established Companies
Exponential Technologies
System of Systems
Product System
Connected Product
Product
Quelle: Porter und Heppelmann 2014
Dissolving Industry Boundaries
Challenges for Established Companies
© Honeypump GmbH
Thesis 2:
Corporate Response is often
inadequate and action-oriented
Wait & See
- Roughly 65% of german SMEs and 33% of international companies 

build on „wait & see“ strategy
- 62% of german companies have no comprehensive digital strategy
Pioneers
- Sofar only 15% of german companies are profiteers of digitalization
- Above-average growth thanks to a commitment to innovation
Source: TNS Infratest, 2015; Bradley et al, 2015; Deburba/Neurohr, 2015
Corporate Response to Digital Disruption
© Honeypump GmbH
Thesis 3:
Companies do not understand
or consider the mechanisms of 

The Innovator´s Dilemma
Foto: whalebonemag.com
1997
Successful, Established Companies
are Prisoners of their Success.
They can neither withdraw from their profitable core business
nor are they able to assert themselves in small, emerging
markets with uncertain prospects for success due to their
processes and structures.
The Innovator’s Dilemma
Source: Christensen, 1997
© 2016 - Honeypump GmbH
1. Companies Depend on Customers 

and Investors for Resources
The decisional routines of companies
systematically reject ideas that customers do not
want (yet). This results in a lack of resources or
the rejection of any disruptive technologies.
Source: Christensen, 1997
Clayton M. Christensen: 5 Principles of Disruptive Innovation
© 2016 - Honeypump GmbH
2. Growth Imperative
Small markets don´t solve the growth needs of
large companies. Strategy of waiting until the new
markets are „large enough to be interesting“
leaves these future markets to small
organizations.
Clayton M. Christensen: 5 Principles of Disruptive Innovation
Source: Christensen, 1997
© 2016 - Honeypump GmbH
3. Markets That Don’t Exist Can’t Be Analyzed
Established planning techniques fail when applied
to disruptive technologies and therefore have to
be replaced with explorative discovery-based
planning.
Clayton M. Christensen: 5 Principles of Disruptive Innovation
Source: Christensen, 1997
© 2016 - Honeypump GmbH
4. Values and Processes
An organization´s capabilities define its
disabilities. The very processes and values that
constitute an organization´s capabilities in one
context (sustainable technologies), define its
disabilities in another context (disruptive
technologies). 



Processes and values are not flexible and very
difficult to change.
Clayton M. Christensen: 5 Principles of Disruptive Innovation
Source: Christensen, 1997
© 2016 - Honeypump GmbH
5. Over-Engineering
In their efforts to stay ahead, many companies
don´t realize the speed at which they are moving
up-market, over satisfying the needs of their
customers and creating a vacuum for disruptive
technologies to enter the market.
Clayton M. Christensen: 5 Principles of Disruptive Innovation
Source: Christensen, 1997
© 2016 - Honeypump GmbH
Source: Christensen, 1997
Time
ProductPerformance
Progress due to sustaining
technologies
Disruptive
Innovation
Progress due to disruptive technologies
Performance
demanded at the
high end of the
market.
Performance
demanded at the
low end of the
market
Over-engineering
Vacuum
© 2016 - Honeypump GmbH
5. Over-Engineering Creates Room for Disruptors
Clayton M. Christensen: 5 Principles of Disruptive Innovation
Photo. Wikipedia
During their best times, successful organizations tend
to take steps that lay the foundation for their later
decline.
Clayton M. Christensen:
© 2016 - Honeypump GmbH
Insufficient Differentiation:
The Failure Framework: Why Good Management Can Lead to Failure
Radical
Innovation
Radical innovations
are significant
Improvements and affect
and/or change entire
companies.
A) New to the world
features
B) Significant (5-10x)
improvement in known
features
C) Significant (30-50%)
reduction in cost
Disruptive
Innovation
Disruptive innovation first
takes a foothold in new
markets and, at first,
often exhibits significant
disadvantages compared
to conventional products.
They satisfy other
customer needs and
have their advantages in
other, new criteria.
High risks, low sales 

and margins
Sustainable
Innovation
Sustainable (incremental)
innovations improve the
performance of 

of established products
or services along the
dimensions of
performance that
customers in major
markets have historically
valued.
Source: Christensen, 1997; O’Connor 2006
© 2016 - Honeypump GmbH
Many disruptive innovations are first discovered in established
companies and subsequently not utilized.


—> Active management decisions against disruptive innovations
out of strategic considerations (risk, margins, cannibalization,
etc.). This favors advanced development of existing products in
existing markets and the associated high, predictable profit
expectations.
Disruptive Technologies Were First Developed
within Established Firms
The Failure Framework: Why Good Management Can Lead to Failure
© 2016 - Honeypump GmbH
Clayton M. Christensen
Overcoming the 

Innovator’s Dilemma
Source: O’Connor 2006, Christensen / Raynor 2013
- First-Mover advantages are essential
- Dealing with the unpredictable
- Separate consideration: resources, processes, values
- Dealing with performance oversupply
- Creating independent organizations
Overcoming the Innovator´s Dilemma
© 2016 - Honeypump GmbH
Creating Independent Organizations
Overcoming the Innovator´s Dilemma
A) Outsource (Service Provider / Agency)
B) Buy (Startup/Company)
C) Build (Lab/Accelerator)
© 2016 - Honeypump GmbH
Creating Independent Organizations
Source: Christensen, 1997
Only independent organizational units can successfully
develop disruptive innovations.
Independent organizational units must be adapted to
the size of the target market in order to (still) be able
to quickly act in smaller markets, while the core
business continues to handle large markets and the
associated growth goals.
Overcoming the Innovator´s Dilemma
© 2016 - Honeypump GmbH
Levitz, 2013
Creating Independent Organizations
Study:
Only 9% of the researched established firms recover 

from a disruptive attack.
Out of these successful companies, all of them 

have founded separate units to master disruptive
technologies.
No single company with an integrated approach was
able to successfully fend off the disruptive attack.
Overcoming the Innovator´s Dilemma
© 2016 - Honeypump GmbH
Gilbert, Eyring, Foster, 2012
Dual Transformation / Ambidextrous Organization
Overcoming the Innovator´s Dilemma
Transformation A: Strategically re-positioning and adapting the
core business to market requirements – what can we do better
than our attackers? What do we need to give up? Why do our
customers come to us? What is the true “need” associated
with the brand?
Transformation B: Building the future. Creating a separate
business area that deals with innovations. Working according
to startup methods, guidance on unexpected customer needs.
© 2016 - Honeypump GmbH
Innovation Labs
Corporate Accelerators
About ⅓ of german
corporations currently
run Innovation Labs or
Corporate Accelerator
Programs
Source: Hochschule für Technik und Wirtschaft, Berlin 2015
© 2016 - Honeypump GmbH
Source: Fieldstudy Summer 2015
© 2016 - Honeypump GmbH
Why Should Companies Launch Innovation Centers?
- Developing new products and services or proofs of concept
- Designing new business models
- Connecting with startups
- Identifying potential partners and forging strategic relationships
- Developing an innovation culture within the organization
- Incubate and invest in startups
- Understanding the digital customer
- Evaluating and testing new technologies
- Become a recognized part of innovation communities
Source: Solis et al. 2015
© 2016 - Honeypump GmbH
The declared purpose of nearly all
researched Labs and Accelerators is
(among other things) developing
disruptive innovations
Field Study and Expert Survey Results:
© 2016 - Honeypump GmbH
However: None of the researched Innovation
Labs and Accelerator programs met the
definition of an
independent organization
Field Study and Expert Survey Results:
© 2016 - Honeypump GmbH
Most Innovation Labs and Corporate
Accelerator Programs do not solve the
company’s Innovator’s Dilemma but
merely shift it.
Hypothesis
© 2016 - Honeypump GmbH
Research Findings
- The Book and the definition of the Innovator’s Dilemma are well known to managers
- They confirm the relevance of the Innovator’s Dilemma
- They confirm the Influence on decisions in innovation management
- Do not provide greater information on Christensen’s recommendations
Innovator’s Dilemma
Source: Primary data from expert interviews 2015
Research Findings
© 2016 - Honeypump GmbH
- Pressure for change is deemed very significant
- Self-critical assessment for preparing the company for changes
- Many companies do not have an established digitalization strategy.
Great Pressure to Change due to Digitalization
Source: Primary data from expert interviews 2015
Research Findings
© 2016 - Honeypump GmbH
- Open Innovation processes and collaborations are established in all companies
- Insufficient differentiation of innovation types
- Innovation Labs and Accelerators have central roles in managing innovation
Innovation Management
Source: Primary data from expert interviews 2015
Research Findings
© 2016 - Honeypump GmbH
Research Findings
Contradiction:
- “Cultural Change” can only be implemented in an affiliated organization.
- “Disruptive Innovation” can only be implemented in an independent organization.
Goals of Corporate Innovation Center
Source: Primary data from expert interviews 2015
, Scale of 1 (not important) to 10 (very important)
© 2016 - Honeypump GmbH
Research Findings
Implementing the Innovation Center partly contradicts the stated goals:

- No independent organizational units, mostly physical separation only
- Significant potential for improvement in the area of Error Culture
- Critical collaboration with existing customers
- C-level support available at all companies
Innovation Center Implementation
Source: Primary data from expert interviews 2015
© 2016 - Honeypump GmbH
Research Findings
Innovation Center Typology
Source: Qwn research 2015
Based on the basic research, we defined 2 Innovation Center types.
Both types have their authorization and can significantly contribute to improved
innovative capability on the part of the companies.
Research and field study shows mostly associated (type 1) innovation

center or a hybrids of both types.
© 2016 - Honeypump GmbH
Research Findings
Summary
Source: Qwn research 2015
© 2016 - Honeypump GmbH
Research Findings
Summary
This Research confirms many of the central findings from theory and field studies.
There are contradictions between theory and practice in the following aspects:
✘ The Innovation Centers’ operative Independence from the core companies is not
implemented in accordance with Christensen. None of the researched Innovation
Centers were an independent organization. 

✘ The definition of the established goals is not congruent in some areas with the
Innovation Center’s positioning and implementation methods. 

© 2016 - Honeypump GmbH
Do Innovation Labs and Accelerators Fail?
In spite of the contradictions, most Innovation Center currently fulfill an
important role in established firms’ innovation management, such as testing
new processes and establishing collaborations and partnerships 

(with startups, universities etc.).
However, the researched Labs are not an exit from the Innovator’s Dilemma
according to Christensen’s criteria. None of the researched companies have
currently been able to implement a convincing strategy for developing
disruptive innovations or produce specific results in the form of
groundbreaking products or services.
Research Findings
© 2016 - Honeypump GmbH
Interpreting the Results
Our research findings allow three different interpretations:
1. Currently associated Innovation Centers make up the foundation for additional,
more consistent forms of autonomous Innovation Centers in accordance with
Christensen.

2. Established Firms with their associated Innovation Centers knowingly go against
Christensen’s advice and provide evidence that they are able to develop disruptive
innovations with their programs - despite the aforementioned operative
interdependence with the parent company.

3. Established firms knowingly focus on developing sustainable innovations and
continue to leave development of disruptive approaches to startups and other
technology driven companies.
Research Findings
© 2016 - Honeypump GmbH
Strategic Framework for Established Firms to Overcome the Innovator’s Dilemma:
Triple Transformation
Triple Transformation
The following three-step solution approach that we have developed 

— inspired by the Dual Transformation Model – is based on the
following findings:
A. One-dimensional solution approaches are not able to satisfy
highly complex and dynamic requirements.
B. Creating an Innovation Ecosystem with clear roles and
boundaries is a significant factor for success.
C. The foundation for all activities is the definition of a radical
Innovation Strategy. There are still significant shortcomings in
most established firms with regard to this aspect.
Strategic Framework for Established Companies to Overcome the Innovator’s Dilemma
© 2016 - Honeypump GmbH
Established Firm / R&D
Sustainable
Innovation
1) Closed
1: Transformation of the Core Company
Intrapreneurship
- Strategic (re-)positioning
- Purpose-definition (customer needs)
- Cultural and organizational adjustment
- Performance oversupply strategy
- Adaptation and acceleration of existing
innovation processes
- Usage and promotion existing innovative
potential inside the corporation via individual
Intrapreneurship Programs 

(e.g. Adobe Kickbox)
Source: Qwn research 2015
© 2016 - Honeypump GmbH
Associated (Type 1)
Corporate
Accelerator
Established Firm / R&D
Partner
Sustainable / Radical
Innovation
Associated (Type 1)
Innovation
Lab
2) Open
2: Associated Labs & Accelerators
Intrapreneurship
- Radical Opening of the innovation process 

via Innovation Centers
- Co-Innovation with partners, universities,
competitors, startups, suppliers and customers
- Exchanging knowledge, employees and
resources with core companies
- Establishing open / lean processes 

and structures
- Cultural Change: Error culture, unpredictability,
exploration
- Focusing on sustainable/radical innovation
- Utilizing and marketing the results in the 

core company
Source: Qwn research 2015
© 2016 - Honeypump GmbH
Associated (Type 1)
Corporate
Accelerator
Autonomous (Type 2)
Innovation
Center
Established Firm / R&D
Startups
Partner Excubation
Sustainable
Innovation
Disruptive
Innovation
Sustainable / Radical
Innovation
Associated (Type 1)
Innovation
Lab
CEO
1) Closed 2) Open 3) Autonomous
3: Autonomous Innovation Center
Intrapreneurship
Source: Qwn research 2015
© 2016 - Honeypump GmbH
Autonomous (Type 2)
Innovation
Center
Startups
Excubation
Disruptive
Innovation
3) Autonomous
3: Autonomous Innovation Center
- Standalone organization without any links to
the core companies (except CEO)
- Mission: Disruption of existing business
model / Moonshot-Mission
- Clear proposition for the market (MTP)
- Defined long-term capitalization, no traditional
business planning / reporting
- No sharing of resources and employees, with
core company, no visits
- Individual values, processes, structures

(e.g. ExO, Lean Startup, Holacracy, Reinventing
Organizations)
- Development and marketing under standalone
brands
Source: Qwn research 2015
© 2016 - Honeypump GmbH
Associated (Type 1)
Corporate
Accelerator
Autonomous (Type 2)
Innovation
Center
Established Firm / R&D
Startups
Partner Excubation
Sustainable
Innovation
Disruptive
Innovation
Sustainable / Radical
Innovation
Associated (Type 1)
Innovation
Lab
CEO
1) Closed 2) Open 3) Autonomous
Intrapreneurship
Triple Transformation Modell
© 2016 - Honeypump GmbH
© 2016 - Honeypump GmbH
Manuel Funk
Manuel Funk is Entrepreneur, Strategy Advisor and Futurist with over 20 years
experience. His work is focused on Digital Strategy, Business Transformation, Data,
Innovation & Future Management.
Founder and Managing Partner of HONEYPUMP, Future & Innovation Think Tank.
Founder of KNOWEAUX Applied Futures, adaptive Scenarios & Future Modelling Programs
Founding Partner of katapult:NOW, a Network of Tech & Innovation Entrepreneurs
About the Author
Complete study and detailed sources on request.
English Version: bit.ly/1oBpRhI
We offer Consulting and strategic Advisory on Innovation, Labs, Accelerators, Intrapreneurship
Non-Artificial Intelligence

Digital Strategy
Future-Modelling
Innovation Management
Labs & Accelerators
© 2016 - Honeypump GmbH
FUTURE & INNOVATION
Honeypump GmbH
Straßburger Str. 55, 10405 Berlin
www.honeypump.de
Manuel Funk
manuel@honeypump.de
linkedin.com/in/manuelfunk
@manuelfunk
+49 172 4044495

More Related Content

What's hot

Decision Analysis in Venture Capital workshop for Stanford Angels and Entrepr...
Decision Analysis in Venture Capital workshop for Stanford Angels and Entrepr...Decision Analysis in Venture Capital workshop for Stanford Angels and Entrepr...
Decision Analysis in Venture Capital workshop for Stanford Angels and Entrepr...Ulu Ventures
 
Blue ocean strategy
Blue ocean strategyBlue ocean strategy
Blue ocean strategyGopal Dosaya
 
Team Quantum - 2022 Technology, Innovation & Great Power Competition
Team Quantum  - 2022 Technology, Innovation & Great Power CompetitionTeam Quantum  - 2022 Technology, Innovation & Great Power Competition
Team Quantum - 2022 Technology, Innovation & Great Power CompetitionStanford University
 
Presentation on 'Competing on Resources', article by David J. Collins & Cynth...
Presentation on 'Competing on Resources', article by David J. Collins & Cynth...Presentation on 'Competing on Resources', article by David J. Collins & Cynth...
Presentation on 'Competing on Resources', article by David J. Collins & Cynth...Himanshu Arora
 
Product Strategy
Product StrategyProduct Strategy
Product StrategyMatt Hunter
 
Partners Healthcare Case Analysis
Partners Healthcare Case AnalysisPartners Healthcare Case Analysis
Partners Healthcare Case AnalysisSarang Ananda Rao
 
Marriott case
Marriott caseMarriott case
Marriott caseTHAO BUI
 
Carolinas healthcare system
Carolinas healthcare system Carolinas healthcare system
Carolinas healthcare system Sanmeet Dhokay
 
The Marvel Way: Restoring the Blue Ocean
The Marvel Way: Restoring the Blue OceanThe Marvel Way: Restoring the Blue Ocean
The Marvel Way: Restoring the Blue OceanChandniAntala
 
Airbus A3XX: Developing the World’s Largest Commercial Jet
Airbus A3XX: Developing the World’s Largest Commercial Jet Airbus A3XX: Developing the World’s Largest Commercial Jet
Airbus A3XX: Developing the World’s Largest Commercial Jet Rishi Bajaj
 
Airbus a3xx developing the worlds largest commercial jet Case Analysis
Airbus a3xx developing the worlds largest commercial jet Case AnalysisAirbus a3xx developing the worlds largest commercial jet Case Analysis
Airbus a3xx developing the worlds largest commercial jet Case AnalysisNeeraj Mehra, CFA
 
Stanford marketing in semiconductors for publication_sa
Stanford marketing in semiconductors for publication_saStanford marketing in semiconductors for publication_sa
Stanford marketing in semiconductors for publication_saSander Arts
 
Midland Energy Resources, Inc. Cost of Capital
Midland Energy Resources, Inc. Cost of CapitalMidland Energy Resources, Inc. Cost of Capital
Midland Energy Resources, Inc. Cost of CapitalKivanc Ozuolmez
 

What's hot (20)

Decision Analysis in Venture Capital workshop for Stanford Angels and Entrepr...
Decision Analysis in Venture Capital workshop for Stanford Angels and Entrepr...Decision Analysis in Venture Capital workshop for Stanford Angels and Entrepr...
Decision Analysis in Venture Capital workshop for Stanford Angels and Entrepr...
 
Blue ocean strategy
Blue ocean strategyBlue ocean strategy
Blue ocean strategy
 
Innovation at 50x 031616
Innovation at 50x 031616Innovation at 50x 031616
Innovation at 50x 031616
 
Team Quantum - 2022 Technology, Innovation & Great Power Competition
Team Quantum  - 2022 Technology, Innovation & Great Power CompetitionTeam Quantum  - 2022 Technology, Innovation & Great Power Competition
Team Quantum - 2022 Technology, Innovation & Great Power Competition
 
Presentation on 'Competing on Resources', article by David J. Collins & Cynth...
Presentation on 'Competing on Resources', article by David J. Collins & Cynth...Presentation on 'Competing on Resources', article by David J. Collins & Cynth...
Presentation on 'Competing on Resources', article by David J. Collins & Cynth...
 
Product Strategy
Product StrategyProduct Strategy
Product Strategy
 
Invest Pitch
Invest PitchInvest Pitch
Invest Pitch
 
Partners Healthcare Case Analysis
Partners Healthcare Case AnalysisPartners Healthcare Case Analysis
Partners Healthcare Case Analysis
 
Marriott case
Marriott caseMarriott case
Marriott case
 
Carolinas healthcare system
Carolinas healthcare system Carolinas healthcare system
Carolinas healthcare system
 
Blue ocean strategy
Blue ocean strategyBlue ocean strategy
Blue ocean strategy
 
MVP Tree
MVP TreeMVP Tree
MVP Tree
 
VC 201: The Investment Memo
VC 201: The Investment MemoVC 201: The Investment Memo
VC 201: The Investment Memo
 
The Marvel Way: Restoring the Blue Ocean
The Marvel Way: Restoring the Blue OceanThe Marvel Way: Restoring the Blue Ocean
The Marvel Way: Restoring the Blue Ocean
 
Airbus A3XX: Developing the World’s Largest Commercial Jet
Airbus A3XX: Developing the World’s Largest Commercial Jet Airbus A3XX: Developing the World’s Largest Commercial Jet
Airbus A3XX: Developing the World’s Largest Commercial Jet
 
Crown Cork & Seal in 1989
Crown Cork & Seal in 1989Crown Cork & Seal in 1989
Crown Cork & Seal in 1989
 
Airbus a3xx developing the worlds largest commercial jet Case Analysis
Airbus a3xx developing the worlds largest commercial jet Case AnalysisAirbus a3xx developing the worlds largest commercial jet Case Analysis
Airbus a3xx developing the worlds largest commercial jet Case Analysis
 
Stanford marketing in semiconductors for publication_sa
Stanford marketing in semiconductors for publication_saStanford marketing in semiconductors for publication_sa
Stanford marketing in semiconductors for publication_sa
 
Midland Energy Resources, Inc. Cost of Capital
Midland Energy Resources, Inc. Cost of CapitalMidland Energy Resources, Inc. Cost of Capital
Midland Energy Resources, Inc. Cost of Capital
 
State of the Cloud 2017
State of the Cloud 2017State of the Cloud 2017
State of the Cloud 2017
 

Viewers also liked

Innovation Labs und Corporate Acceleratoren im Innovations-Dilemma
Innovation Labs und Corporate Acceleratoren im Innovations-DilemmaInnovation Labs und Corporate Acceleratoren im Innovations-Dilemma
Innovation Labs und Corporate Acceleratoren im Innovations-DilemmaManuel Funk
 
Start-up Lingo For Dummies
Start-up Lingo For DummiesStart-up Lingo For Dummies
Start-up Lingo For DummiesNasscom Startups
 
Strategic Analysis: Google
Strategic Analysis: GoogleStrategic Analysis: Google
Strategic Analysis: GoogleJosh Schumacher
 
Some examples of strategic alliances
Some examples of strategic alliancesSome examples of strategic alliances
Some examples of strategic alliancesShelly Agarwal
 

Viewers also liked (7)

Disruption ball
Disruption ballDisruption ball
Disruption ball
 
Innovation Labs und Corporate Acceleratoren im Innovations-Dilemma
Innovation Labs und Corporate Acceleratoren im Innovations-DilemmaInnovation Labs und Corporate Acceleratoren im Innovations-Dilemma
Innovation Labs und Corporate Acceleratoren im Innovations-Dilemma
 
Start-up Lingo For Dummies
Start-up Lingo For DummiesStart-up Lingo For Dummies
Start-up Lingo For Dummies
 
Melt Frame Course no 1
Melt Frame Course no 1Melt Frame Course no 1
Melt Frame Course no 1
 
Strategic Analysis: Google
Strategic Analysis: GoogleStrategic Analysis: Google
Strategic Analysis: Google
 
Melt frame 2
Melt frame 2Melt frame 2
Melt frame 2
 
Some examples of strategic alliances
Some examples of strategic alliancesSome examples of strategic alliances
Some examples of strategic alliances
 

Similar to The Innovator´s Dilemma of Innovation Labs and Corporate Accelerators

Introducing new market offering
Introducing new market offeringIntroducing new market offering
Introducing new market offeringMahfuzur Rahman
 
Reinvent your business before it.......
Reinvent your business before it.......Reinvent your business before it.......
Reinvent your business before it.......Ajay Kumar
 
STUDY ON INNOVATIONCULTURE: WE CAN BE EFFICIENT, TRUE, BUT NOT INNOVATIVE
STUDY ON INNOVATIONCULTURE: WE CAN BE EFFICIENT, TRUE, BUT NOT INNOVATIVESTUDY ON INNOVATIONCULTURE: WE CAN BE EFFICIENT, TRUE, BUT NOT INNOVATIVE
STUDY ON INNOVATIONCULTURE: WE CAN BE EFFICIENT, TRUE, BUT NOT INNOVATIVEMarc Wagner
 
Unlocking Trapped Value of Innovation Investments​
Unlocking Trapped Value of Innovation Investments​Unlocking Trapped Value of Innovation Investments​
Unlocking Trapped Value of Innovation Investments​accenture
 
Ch08 innov and new prod dev
Ch08 innov and new prod devCh08 innov and new prod dev
Ch08 innov and new prod devRakeshNimhan
 
Let the Innovators Innovate - How rethinking the engineering support model ca...
Let the Innovators Innovate - How rethinking the engineering support model ca...Let the Innovators Innovate - How rethinking the engineering support model ca...
Let the Innovators Innovate - How rethinking the engineering support model ca...Kelly Services
 
Lesson 2 the business plan hentreplan
Lesson 2   the business plan hentreplanLesson 2   the business plan hentreplan
Lesson 2 the business plan hentreplanMervyn Maico Aldana
 
Coralie_Bailly-Lean_Manufacturing_any_size_company
Coralie_Bailly-Lean_Manufacturing_any_size_companyCoralie_Bailly-Lean_Manufacturing_any_size_company
Coralie_Bailly-Lean_Manufacturing_any_size_companyCoralie Bailly
 
Responding to the Impact of #Covid19 Pandemic & Economic Crisis and Beyond - ...
Responding to the Impact of #Covid19 Pandemic & Economic Crisis and Beyond - ...Responding to the Impact of #Covid19 Pandemic & Economic Crisis and Beyond - ...
Responding to the Impact of #Covid19 Pandemic & Economic Crisis and Beyond - ...Richard Platt
 
Respond to the following in a minimum of 175 words new products
Respond to the following in a minimum of 175 words new productsRespond to the following in a minimum of 175 words new products
Respond to the following in a minimum of 175 words new productsaryan532920
 
Building an innovation engine - foundations for growth: how to identify and b...
Building an innovation engine - foundations for growth: how to identify and b...Building an innovation engine - foundations for growth: how to identify and b...
Building an innovation engine - foundations for growth: how to identify and b...John Pisciotta
 
Transforming Local Best Practices to a Global Competence by Marcus Tennant an...
Transforming Local Best Practices to a Global Competence by Marcus Tennant an...Transforming Local Best Practices to a Global Competence by Marcus Tennant an...
Transforming Local Best Practices to a Global Competence by Marcus Tennant an...ISA Marketing & Sales Summit
 
Growth Strategies: Growth Drivers - Entrepreneurship and Leadership
Growth Strategies: Growth Drivers - Entrepreneurship and LeadershipGrowth Strategies: Growth Drivers - Entrepreneurship and Leadership
Growth Strategies: Growth Drivers - Entrepreneurship and LeadershipPavel Luksha
 
It services, it consulting and outsourcing in central europe
It services, it consulting and outsourcing in central europeIt services, it consulting and outsourcing in central europe
It services, it consulting and outsourcing in central europeAristoteles Kabarganos
 
[DSC Europe 23] Philipe Reinisch - Why new products still fail. Unlocking the...
[DSC Europe 23] Philipe Reinisch - Why new products still fail. Unlocking the...[DSC Europe 23] Philipe Reinisch - Why new products still fail. Unlocking the...
[DSC Europe 23] Philipe Reinisch - Why new products still fail. Unlocking the...DataScienceConferenc1
 
Dr. Darryl Klassen
Dr. Darryl KlassenDr. Darryl Klassen
Dr. Darryl Klassenichil
 
Open innovation in SMEs, including low tech SMEs
Open innovation in SMEs, including low tech SMEsOpen innovation in SMEs, including low tech SMEs
Open innovation in SMEs, including low tech SMEsRaffael3
 
Moorhouse_PharmaConsumerBusiness_NPD_whitepaper
Moorhouse_PharmaConsumerBusiness_NPD_whitepaperMoorhouse_PharmaConsumerBusiness_NPD_whitepaper
Moorhouse_PharmaConsumerBusiness_NPD_whitepaperJabar Kazmi
 

Similar to The Innovator´s Dilemma of Innovation Labs and Corporate Accelerators (20)

Introducing new market offering
Introducing new market offeringIntroducing new market offering
Introducing new market offering
 
STIA305 07
STIA305 07STIA305 07
STIA305 07
 
Reinvent your business before it.......
Reinvent your business before it.......Reinvent your business before it.......
Reinvent your business before it.......
 
STUDY ON INNOVATIONCULTURE: WE CAN BE EFFICIENT, TRUE, BUT NOT INNOVATIVE
STUDY ON INNOVATIONCULTURE: WE CAN BE EFFICIENT, TRUE, BUT NOT INNOVATIVESTUDY ON INNOVATIONCULTURE: WE CAN BE EFFICIENT, TRUE, BUT NOT INNOVATIVE
STUDY ON INNOVATIONCULTURE: WE CAN BE EFFICIENT, TRUE, BUT NOT INNOVATIVE
 
Unlocking Trapped Value of Innovation Investments​
Unlocking Trapped Value of Innovation Investments​Unlocking Trapped Value of Innovation Investments​
Unlocking Trapped Value of Innovation Investments​
 
Ch08 innov and new prod dev
Ch08 innov and new prod devCh08 innov and new prod dev
Ch08 innov and new prod dev
 
Let the Innovators Innovate - How rethinking the engineering support model ca...
Let the Innovators Innovate - How rethinking the engineering support model ca...Let the Innovators Innovate - How rethinking the engineering support model ca...
Let the Innovators Innovate - How rethinking the engineering support model ca...
 
Lesson 2 the business plan hentreplan
Lesson 2   the business plan hentreplanLesson 2   the business plan hentreplan
Lesson 2 the business plan hentreplan
 
Coralie_Bailly-Lean_Manufacturing_any_size_company
Coralie_Bailly-Lean_Manufacturing_any_size_companyCoralie_Bailly-Lean_Manufacturing_any_size_company
Coralie_Bailly-Lean_Manufacturing_any_size_company
 
Responding to the Impact of #Covid19 Pandemic & Economic Crisis and Beyond - ...
Responding to the Impact of #Covid19 Pandemic & Economic Crisis and Beyond - ...Responding to the Impact of #Covid19 Pandemic & Economic Crisis and Beyond - ...
Responding to the Impact of #Covid19 Pandemic & Economic Crisis and Beyond - ...
 
Respond to the following in a minimum of 175 words new products
Respond to the following in a minimum of 175 words new productsRespond to the following in a minimum of 175 words new products
Respond to the following in a minimum of 175 words new products
 
Building an innovation engine - foundations for growth: how to identify and b...
Building an innovation engine - foundations for growth: how to identify and b...Building an innovation engine - foundations for growth: how to identify and b...
Building an innovation engine - foundations for growth: how to identify and b...
 
Transforming Local Best Practices to a Global Competence by Marcus Tennant an...
Transforming Local Best Practices to a Global Competence by Marcus Tennant an...Transforming Local Best Practices to a Global Competence by Marcus Tennant an...
Transforming Local Best Practices to a Global Competence by Marcus Tennant an...
 
Growth Strategies: Growth Drivers - Entrepreneurship and Leadership
Growth Strategies: Growth Drivers - Entrepreneurship and LeadershipGrowth Strategies: Growth Drivers - Entrepreneurship and Leadership
Growth Strategies: Growth Drivers - Entrepreneurship and Leadership
 
Software As Solutions
Software As SolutionsSoftware As Solutions
Software As Solutions
 
It services, it consulting and outsourcing in central europe
It services, it consulting and outsourcing in central europeIt services, it consulting and outsourcing in central europe
It services, it consulting and outsourcing in central europe
 
[DSC Europe 23] Philipe Reinisch - Why new products still fail. Unlocking the...
[DSC Europe 23] Philipe Reinisch - Why new products still fail. Unlocking the...[DSC Europe 23] Philipe Reinisch - Why new products still fail. Unlocking the...
[DSC Europe 23] Philipe Reinisch - Why new products still fail. Unlocking the...
 
Dr. Darryl Klassen
Dr. Darryl KlassenDr. Darryl Klassen
Dr. Darryl Klassen
 
Open innovation in SMEs, including low tech SMEs
Open innovation in SMEs, including low tech SMEsOpen innovation in SMEs, including low tech SMEs
Open innovation in SMEs, including low tech SMEs
 
Moorhouse_PharmaConsumerBusiness_NPD_whitepaper
Moorhouse_PharmaConsumerBusiness_NPD_whitepaperMoorhouse_PharmaConsumerBusiness_NPD_whitepaper
Moorhouse_PharmaConsumerBusiness_NPD_whitepaper
 

Recently uploaded

Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMMemorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMVoces Mineras
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyotictsugar
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03DallasHaselhorst
 
business environment micro environment macro environment.pptx
business environment micro environment macro environment.pptxbusiness environment micro environment macro environment.pptx
business environment micro environment macro environment.pptxShruti Mittal
 
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdftrending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdfMintel Group
 
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City GurgaonCall Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaoncallgirls2057
 
WSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfWSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfJamesConcepcion7
 
Buy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy Verified Accounts
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSendBig4
 
MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?Olivia Kresic
 
Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Seta Wicaksana
 
Chapter 9 PPT 4th edition.pdf internal audit
Chapter 9 PPT 4th edition.pdf internal auditChapter 9 PPT 4th edition.pdf internal audit
Chapter 9 PPT 4th edition.pdf internal auditNhtLNguyn9
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Servicecallgirls2057
 
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...ssuserf63bd7
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessSeta Wicaksana
 
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCRashishs7044
 

Recently uploaded (20)

Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMMemorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQM
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyot
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03
 
business environment micro environment macro environment.pptx
business environment micro environment macro environment.pptxbusiness environment micro environment macro environment.pptx
business environment micro environment macro environment.pptx
 
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdftrending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
 
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City GurgaonCall Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
 
Call Us ➥9319373153▻Call Girls In North Goa
Call Us ➥9319373153▻Call Girls In North GoaCall Us ➥9319373153▻Call Girls In North Goa
Call Us ➥9319373153▻Call Girls In North Goa
 
WSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfWSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdf
 
Buy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail Accounts
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.com
 
MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?
 
Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...
 
Chapter 9 PPT 4th edition.pdf internal audit
Chapter 9 PPT 4th edition.pdf internal auditChapter 9 PPT 4th edition.pdf internal audit
Chapter 9 PPT 4th edition.pdf internal audit
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
 
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
 
WAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdfWAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdf
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
 
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
 
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information TechnologyCorporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
 

The Innovator´s Dilemma of Innovation Labs and Corporate Accelerators

  • 1. Overcoming the Innovator’s Dilemma of Innovation Labs and Corporate Accelerators
  • 2. Field Study: about 50 Labs and Corporate Accelerators Research: about 200 international Reports, Books und Studies Interviews: 10 Corporate Innovation Experts (September 15) Reach: over 85.000 Slideshare Views (January 17) Im Rahmen einer Masterarbeit an der Universität der Künste Berlin 
 in Kooperation mit der Universität St. Gallen. 
 Betreuung durch Prof. Dr. Dr. Schildhauer und Dr. Nancy Richter (HIIG.de) Manuel Funk © Honeypump GmbH
  • 3. Why Innovation Labs and Accelerators fail? * © Honeypump GmbH *Don´t get me wrong: This is NOT an argumentation against Labs and Corporate Accelerators.
 In contrary: We strongly belief, that corporations need protected environments for experimentation and radical innovation beyond R&D departments. Nevertheless many innovation centers do not fulfill expectations and we´ve been curious 
 to research the reasons behind this observation.
  • 4. Thesis 1: Established companies underestimate the destructive power of Technology
  • 5. Its harder than ever to stay on top In 10 years 40% of the Fortune 500 will no longer exist Olin School of Business at Washington University © Honeypump GmbH / Innosight
  • 6. German (over-) Engineering: German companies are World Champions 
 in the field of Sustainable Innovation © Honeypump GmbH What is missing: Speed Startup-Culture Moonshot-Missions Disruptive Innovations
  • 7. Report: Digital Vortex
 How Digital Disruption is Redefining Industries Key insights from a survey of 941 business leaders around the world in 12 industries: „Digital disruption has the potential to overturn incumbents and reshape markets faster than perhaps any force in history.“ „Whatever can be digitized is digitized.“ Wirtschaftshochschule International Institute of Management Development (IMD) in Lausanne Quelle: Bradley et al, 2015 © Honeypump GmbH
  • 8. Source: O’Connor 2006, Christensen / Raynor 2013 - Growth imperative - Disruptive attackers - Dependence on US technology platforms - Customer centricity - Acquiring qualified employees - Missing interfaces for cooperations - Exponential technological development - Complexity and accelerated innovation cycles Challenges for Established Companies © Honeypump GmbH
  • 9. © Honeypump GmbH Challenges for Established Companies Exponential Technologies
  • 10. System of Systems Product System Connected Product Product Quelle: Porter und Heppelmann 2014 Dissolving Industry Boundaries Challenges for Established Companies © Honeypump GmbH
  • 11. Thesis 2: Corporate Response is often inadequate and action-oriented
  • 12. Wait & See - Roughly 65% of german SMEs and 33% of international companies 
 build on „wait & see“ strategy - 62% of german companies have no comprehensive digital strategy Pioneers - Sofar only 15% of german companies are profiteers of digitalization - Above-average growth thanks to a commitment to innovation Source: TNS Infratest, 2015; Bradley et al, 2015; Deburba/Neurohr, 2015 Corporate Response to Digital Disruption © Honeypump GmbH
  • 13. Thesis 3: Companies do not understand or consider the mechanisms of 
 The Innovator´s Dilemma
  • 15. Successful, Established Companies are Prisoners of their Success. They can neither withdraw from their profitable core business nor are they able to assert themselves in small, emerging markets with uncertain prospects for success due to their processes and structures. The Innovator’s Dilemma Source: Christensen, 1997 © 2016 - Honeypump GmbH
  • 16. 1. Companies Depend on Customers 
 and Investors for Resources The decisional routines of companies systematically reject ideas that customers do not want (yet). This results in a lack of resources or the rejection of any disruptive technologies. Source: Christensen, 1997 Clayton M. Christensen: 5 Principles of Disruptive Innovation © 2016 - Honeypump GmbH
  • 17. 2. Growth Imperative Small markets don´t solve the growth needs of large companies. Strategy of waiting until the new markets are „large enough to be interesting“ leaves these future markets to small organizations. Clayton M. Christensen: 5 Principles of Disruptive Innovation Source: Christensen, 1997 © 2016 - Honeypump GmbH
  • 18. 3. Markets That Don’t Exist Can’t Be Analyzed Established planning techniques fail when applied to disruptive technologies and therefore have to be replaced with explorative discovery-based planning. Clayton M. Christensen: 5 Principles of Disruptive Innovation Source: Christensen, 1997 © 2016 - Honeypump GmbH
  • 19. 4. Values and Processes An organization´s capabilities define its disabilities. The very processes and values that constitute an organization´s capabilities in one context (sustainable technologies), define its disabilities in another context (disruptive technologies). 
 
 Processes and values are not flexible and very difficult to change. Clayton M. Christensen: 5 Principles of Disruptive Innovation Source: Christensen, 1997 © 2016 - Honeypump GmbH
  • 20. 5. Over-Engineering In their efforts to stay ahead, many companies don´t realize the speed at which they are moving up-market, over satisfying the needs of their customers and creating a vacuum for disruptive technologies to enter the market. Clayton M. Christensen: 5 Principles of Disruptive Innovation Source: Christensen, 1997 © 2016 - Honeypump GmbH
  • 21. Source: Christensen, 1997 Time ProductPerformance Progress due to sustaining technologies Disruptive Innovation Progress due to disruptive technologies Performance demanded at the high end of the market. Performance demanded at the low end of the market Over-engineering Vacuum © 2016 - Honeypump GmbH 5. Over-Engineering Creates Room for Disruptors Clayton M. Christensen: 5 Principles of Disruptive Innovation
  • 22. Photo. Wikipedia During their best times, successful organizations tend to take steps that lay the foundation for their later decline. Clayton M. Christensen: © 2016 - Honeypump GmbH
  • 23. Insufficient Differentiation: The Failure Framework: Why Good Management Can Lead to Failure Radical Innovation Radical innovations are significant Improvements and affect and/or change entire companies. A) New to the world features B) Significant (5-10x) improvement in known features C) Significant (30-50%) reduction in cost Disruptive Innovation Disruptive innovation first takes a foothold in new markets and, at first, often exhibits significant disadvantages compared to conventional products. They satisfy other customer needs and have their advantages in other, new criteria. High risks, low sales 
 and margins Sustainable Innovation Sustainable (incremental) innovations improve the performance of 
 of established products or services along the dimensions of performance that customers in major markets have historically valued. Source: Christensen, 1997; O’Connor 2006 © 2016 - Honeypump GmbH
  • 24. Many disruptive innovations are first discovered in established companies and subsequently not utilized. 
 —> Active management decisions against disruptive innovations out of strategic considerations (risk, margins, cannibalization, etc.). This favors advanced development of existing products in existing markets and the associated high, predictable profit expectations. Disruptive Technologies Were First Developed within Established Firms The Failure Framework: Why Good Management Can Lead to Failure © 2016 - Honeypump GmbH
  • 25. Clayton M. Christensen Overcoming the 
 Innovator’s Dilemma
  • 26. Source: O’Connor 2006, Christensen / Raynor 2013 - First-Mover advantages are essential - Dealing with the unpredictable - Separate consideration: resources, processes, values - Dealing with performance oversupply - Creating independent organizations Overcoming the Innovator´s Dilemma © 2016 - Honeypump GmbH
  • 27. Creating Independent Organizations Overcoming the Innovator´s Dilemma A) Outsource (Service Provider / Agency) B) Buy (Startup/Company) C) Build (Lab/Accelerator) © 2016 - Honeypump GmbH
  • 28. Creating Independent Organizations Source: Christensen, 1997 Only independent organizational units can successfully develop disruptive innovations. Independent organizational units must be adapted to the size of the target market in order to (still) be able to quickly act in smaller markets, while the core business continues to handle large markets and the associated growth goals. Overcoming the Innovator´s Dilemma © 2016 - Honeypump GmbH
  • 29. Levitz, 2013 Creating Independent Organizations Study: Only 9% of the researched established firms recover 
 from a disruptive attack. Out of these successful companies, all of them 
 have founded separate units to master disruptive technologies. No single company with an integrated approach was able to successfully fend off the disruptive attack. Overcoming the Innovator´s Dilemma © 2016 - Honeypump GmbH
  • 30. Gilbert, Eyring, Foster, 2012 Dual Transformation / Ambidextrous Organization Overcoming the Innovator´s Dilemma Transformation A: Strategically re-positioning and adapting the core business to market requirements – what can we do better than our attackers? What do we need to give up? Why do our customers come to us? What is the true “need” associated with the brand? Transformation B: Building the future. Creating a separate business area that deals with innovations. Working according to startup methods, guidance on unexpected customer needs. © 2016 - Honeypump GmbH
  • 32. About ⅓ of german corporations currently run Innovation Labs or Corporate Accelerator Programs Source: Hochschule für Technik und Wirtschaft, Berlin 2015 © 2016 - Honeypump GmbH
  • 33. Source: Fieldstudy Summer 2015 © 2016 - Honeypump GmbH
  • 34. Why Should Companies Launch Innovation Centers? - Developing new products and services or proofs of concept - Designing new business models - Connecting with startups - Identifying potential partners and forging strategic relationships - Developing an innovation culture within the organization - Incubate and invest in startups - Understanding the digital customer - Evaluating and testing new technologies - Become a recognized part of innovation communities Source: Solis et al. 2015 © 2016 - Honeypump GmbH
  • 35. The declared purpose of nearly all researched Labs and Accelerators is (among other things) developing disruptive innovations Field Study and Expert Survey Results: © 2016 - Honeypump GmbH
  • 36. However: None of the researched Innovation Labs and Accelerator programs met the definition of an independent organization Field Study and Expert Survey Results: © 2016 - Honeypump GmbH
  • 37. Most Innovation Labs and Corporate Accelerator Programs do not solve the company’s Innovator’s Dilemma but merely shift it. Hypothesis © 2016 - Honeypump GmbH
  • 39. - The Book and the definition of the Innovator’s Dilemma are well known to managers - They confirm the relevance of the Innovator’s Dilemma - They confirm the Influence on decisions in innovation management - Do not provide greater information on Christensen’s recommendations Innovator’s Dilemma Source: Primary data from expert interviews 2015 Research Findings © 2016 - Honeypump GmbH
  • 40. - Pressure for change is deemed very significant - Self-critical assessment for preparing the company for changes - Many companies do not have an established digitalization strategy. Great Pressure to Change due to Digitalization Source: Primary data from expert interviews 2015 Research Findings © 2016 - Honeypump GmbH
  • 41. - Open Innovation processes and collaborations are established in all companies - Insufficient differentiation of innovation types - Innovation Labs and Accelerators have central roles in managing innovation Innovation Management Source: Primary data from expert interviews 2015 Research Findings © 2016 - Honeypump GmbH
  • 42. Research Findings Contradiction: - “Cultural Change” can only be implemented in an affiliated organization. - “Disruptive Innovation” can only be implemented in an independent organization. Goals of Corporate Innovation Center Source: Primary data from expert interviews 2015 , Scale of 1 (not important) to 10 (very important) © 2016 - Honeypump GmbH
  • 43. Research Findings Implementing the Innovation Center partly contradicts the stated goals:
 - No independent organizational units, mostly physical separation only - Significant potential for improvement in the area of Error Culture - Critical collaboration with existing customers - C-level support available at all companies Innovation Center Implementation Source: Primary data from expert interviews 2015 © 2016 - Honeypump GmbH
  • 44. Research Findings Innovation Center Typology Source: Qwn research 2015 Based on the basic research, we defined 2 Innovation Center types. Both types have their authorization and can significantly contribute to improved innovative capability on the part of the companies. Research and field study shows mostly associated (type 1) innovation
 center or a hybrids of both types. © 2016 - Honeypump GmbH
  • 45. Research Findings Summary Source: Qwn research 2015 © 2016 - Honeypump GmbH
  • 46. Research Findings Summary This Research confirms many of the central findings from theory and field studies. There are contradictions between theory and practice in the following aspects: ✘ The Innovation Centers’ operative Independence from the core companies is not implemented in accordance with Christensen. None of the researched Innovation Centers were an independent organization. 
 ✘ The definition of the established goals is not congruent in some areas with the Innovation Center’s positioning and implementation methods. 
 © 2016 - Honeypump GmbH
  • 47. Do Innovation Labs and Accelerators Fail? In spite of the contradictions, most Innovation Center currently fulfill an important role in established firms’ innovation management, such as testing new processes and establishing collaborations and partnerships 
 (with startups, universities etc.). However, the researched Labs are not an exit from the Innovator’s Dilemma according to Christensen’s criteria. None of the researched companies have currently been able to implement a convincing strategy for developing disruptive innovations or produce specific results in the form of groundbreaking products or services. Research Findings © 2016 - Honeypump GmbH
  • 48. Interpreting the Results Our research findings allow three different interpretations: 1. Currently associated Innovation Centers make up the foundation for additional, more consistent forms of autonomous Innovation Centers in accordance with Christensen.
 2. Established Firms with their associated Innovation Centers knowingly go against Christensen’s advice and provide evidence that they are able to develop disruptive innovations with their programs - despite the aforementioned operative interdependence with the parent company.
 3. Established firms knowingly focus on developing sustainable innovations and continue to leave development of disruptive approaches to startups and other technology driven companies. Research Findings © 2016 - Honeypump GmbH
  • 49. Strategic Framework for Established Firms to Overcome the Innovator’s Dilemma: Triple Transformation
  • 50. Triple Transformation The following three-step solution approach that we have developed 
 — inspired by the Dual Transformation Model – is based on the following findings: A. One-dimensional solution approaches are not able to satisfy highly complex and dynamic requirements. B. Creating an Innovation Ecosystem with clear roles and boundaries is a significant factor for success. C. The foundation for all activities is the definition of a radical Innovation Strategy. There are still significant shortcomings in most established firms with regard to this aspect. Strategic Framework for Established Companies to Overcome the Innovator’s Dilemma © 2016 - Honeypump GmbH
  • 51. Established Firm / R&D Sustainable Innovation 1) Closed 1: Transformation of the Core Company Intrapreneurship - Strategic (re-)positioning - Purpose-definition (customer needs) - Cultural and organizational adjustment - Performance oversupply strategy - Adaptation and acceleration of existing innovation processes - Usage and promotion existing innovative potential inside the corporation via individual Intrapreneurship Programs 
 (e.g. Adobe Kickbox) Source: Qwn research 2015 © 2016 - Honeypump GmbH
  • 52. Associated (Type 1) Corporate Accelerator Established Firm / R&D Partner Sustainable / Radical Innovation Associated (Type 1) Innovation Lab 2) Open 2: Associated Labs & Accelerators Intrapreneurship - Radical Opening of the innovation process 
 via Innovation Centers - Co-Innovation with partners, universities, competitors, startups, suppliers and customers - Exchanging knowledge, employees and resources with core companies - Establishing open / lean processes 
 and structures - Cultural Change: Error culture, unpredictability, exploration - Focusing on sustainable/radical innovation - Utilizing and marketing the results in the 
 core company Source: Qwn research 2015 © 2016 - Honeypump GmbH
  • 53. Associated (Type 1) Corporate Accelerator Autonomous (Type 2) Innovation Center Established Firm / R&D Startups Partner Excubation Sustainable Innovation Disruptive Innovation Sustainable / Radical Innovation Associated (Type 1) Innovation Lab CEO 1) Closed 2) Open 3) Autonomous 3: Autonomous Innovation Center Intrapreneurship Source: Qwn research 2015 © 2016 - Honeypump GmbH
  • 54. Autonomous (Type 2) Innovation Center Startups Excubation Disruptive Innovation 3) Autonomous 3: Autonomous Innovation Center - Standalone organization without any links to the core companies (except CEO) - Mission: Disruption of existing business model / Moonshot-Mission - Clear proposition for the market (MTP) - Defined long-term capitalization, no traditional business planning / reporting - No sharing of resources and employees, with core company, no visits - Individual values, processes, structures
 (e.g. ExO, Lean Startup, Holacracy, Reinventing Organizations) - Development and marketing under standalone brands Source: Qwn research 2015 © 2016 - Honeypump GmbH
  • 55. Associated (Type 1) Corporate Accelerator Autonomous (Type 2) Innovation Center Established Firm / R&D Startups Partner Excubation Sustainable Innovation Disruptive Innovation Sustainable / Radical Innovation Associated (Type 1) Innovation Lab CEO 1) Closed 2) Open 3) Autonomous Intrapreneurship Triple Transformation Modell © 2016 - Honeypump GmbH
  • 56. © 2016 - Honeypump GmbH Manuel Funk Manuel Funk is Entrepreneur, Strategy Advisor and Futurist with over 20 years experience. His work is focused on Digital Strategy, Business Transformation, Data, Innovation & Future Management. Founder and Managing Partner of HONEYPUMP, Future & Innovation Think Tank. Founder of KNOWEAUX Applied Futures, adaptive Scenarios & Future Modelling Programs Founding Partner of katapult:NOW, a Network of Tech & Innovation Entrepreneurs About the Author Complete study and detailed sources on request. English Version: bit.ly/1oBpRhI We offer Consulting and strategic Advisory on Innovation, Labs, Accelerators, Intrapreneurship
  • 57. Non-Artificial Intelligence
 Digital Strategy Future-Modelling Innovation Management Labs & Accelerators © 2016 - Honeypump GmbH
  • 58. FUTURE & INNOVATION Honeypump GmbH Straßburger Str. 55, 10405 Berlin www.honeypump.de Manuel Funk manuel@honeypump.de linkedin.com/in/manuelfunk @manuelfunk +49 172 4044495