This document discusses creating an internal ecosystem at a company to foster innovation. It addresses that executives need to set the vision and create the right environment for innovators. This includes having a two pizza sized team, ensuring the right skillsets and mindsets, and allowing for mistakes through a safe sandbox environment. It also notes that new ventures on average take years to become profitable and few have positive cash flow in the first two years, showing the need for patience and an innovation accounting process within companies.

1. Container
Ships
&
Speedboats
Janet Bumpas

6. Executives
Innovators

7. Internal
Ecosystem
Executives
Innovators

8. Innovators

9. Your first idea is
not always a
good idea

10. 23% of startups
that fail, fail due to
wrong team
CB Insights: The Top 20 Reasons Startups Fail

11. So what
makes a
good team?

14. If you can’t feed a
team with two
pizza’s, it’s too large.
Jeff Bezos
CEO and Founder Amazon

15. Two Pizza Team?

16. Skillset ToolsetMindset

17. HustlerHacker Hipster

18. Ownership
(80%)

19. Never Give Up
(20%)

20. Misfits

21. Internal
Ecosystem
Executives
Innovators

22. Executives:
Set Vision &
Create
Environment

23. 1. Strategic
Alignment

24. 2. Portfolio
Management

26. Horizon 1
Horizon 2
Horizon 3
Time
Mature
Business
0-12 months
Generates
today’s cash
flow
Emerging Business
36-72 Months
Options on future
high growth
businesses
Rapidly Growing
or Adjacent
Market Business
12-36 Months
Today’s revenue
growth and
tomorrow’s cash
flow

30. H1 H2 H3
Google 70% 20% 10%
Lean Enterprise: How High Performance Organizations Innovate at Scale Lean. O'Reilly. Dec 4, 2014. Jez Humble, Joanne Molesky, and Barry O’Reilly
Intuit 60% 30% 10%

31. Executives:
Set Vision &
Create
Environment

32. Safe
Sandbox

33. AlignmentProtection

34. Investing time,
money, and
resources before
having results

35. https://hbr.org/2004/07/what-every-ceo-should-know-about-creating-new-businesses
How long does it take corporate
ventures, on average, to become
profitable?

36. https://hbr.org/2004/07/what-every-ceo-should-know-about-creating-new-businesses

37. https://hbr.org/2004/07/what-every-ceo-should-know-about-creating-new-businesses
How many had a positive cash flow in
the first two years?

38. https://hbr.org/2004/07/what-every-ceo-should-know-about-creating-new-businesses

39. https://hbr.org/2004/07/what-every-ceo-should-know-about-creating-new-businesses

40. https://hbr.org/2004/07/what-every-ceo-should-know-about-creating-new-businesses

41. Innovation
Accounting

42. Internal
Ecosystem
Executives
Innovators

43. Speedboat Container Ship
Our first five ideas failed. No bonus for you this year!

44. Speedboat Container Ship
We made it up
Denied.
Can we have some money? What’s your ROI?

45. Speedboat Container Ship
Totally brand new product!
Does that fit our
brand guidelines?

46. Innovators Container Ships
This new product is
going to be huge!
That’s not in my three
year plan. Sorry

47. Speedboat Container Ship
I just made up an unbranded fake
door experiment
Oh, no, no.
Those are not approved.

48. Speedboat Container Ships
We’ve talked with lots
of customers and….
Who gave you permission
to talk to them?

50. Innovation
Culture

52. Can I have a picture from a Philips
masterclass?

53. Your first idea is
not always a
good idea

54. Thank You
Janet.Bumpas@scaleupnation.com