Innovation Practitioners, Senior Leaders and (Corporate) Venture Capitalists will discuss the major flaws highlighted by evitive's latest study on Corporate Innovation and explore ways to address them effectively. Issues covered range from orchestrating innovation to innovation governance, incentive systems and financing. The session concludes with a selection of proven practice recommendation from evitive.

1. Corporate Startup Summit
November 28th, 2018 - Zurich
Strategic sustaining
Version 1-0 ©
innovation and beyond

2. Pascal is a Senior Partner at
evitive on a mission to evolve
businesses into industry game-
changers.
He is specializing in digital trans-
formation, innovation and ven-
ture building with a track record
in entrepreneurship, startup
mentoring and advisory.
As an advisor, mentor and
co_entrepreneur, Pascal as-
sumes responsibility for more
effective and yet efficient
innovation practices and has
been designing and leading
intrapreneurship as well as
venture building initiatives for
many years.
He has been structuring and
negotiating proof-of-concept
projects with start-ups and
corporates in various industries
and arranging partnerships
between those involved in
innovation.
About
Pascal A. Miserez
for Corporate Startup Summit • Zurich • 2018 ©2
mobile +41 79 320 4123
email pascal.miserez@evitive.net
twitter p_miserez

3. Mike is a Partner at evitive.
Mike combines a broad exper-
tise in customer management
and experience with a suc-
cessful track record in the
financial services industry to
assure profitable growth.
He can rely on over 20 years
of global expertise as leader
of customer experience and
transformation programs.
Mike also is an associate
partner at WATC Consulting
AG Zurich, expert for Kickstart
Accelerator and a member of
the Board of Ambassadors of
the CXPA.
About
Mike Hakkens
for Corporate Startup Summit • Zurich • 2018 ©3
mobile +44 7846 824967
email mike.hakken@evitive.net

4. evitive is an advisory boutique
and service provider speciali-
zing in strategy, innovation and
corporate venturing.
At evitive we believe that, in
today’s globalized economy,
competing well is no longer
enough. Smart businesses set
the rules and evolve into
industry game-changers.
Changing the game as your
co_entrepreneur is our mission.

5. _ A short round of introductions
_ Setting the scene: Strategic sustaining innovation and beyond
_ Facilitated peer group discussion
_ Closing remarks
Agenda
for Corporate Startup Summit • Zurich • 2018 ©5

6. profit
time
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Innovation horizons and product lifecycles
regular product lifecycle
extensive marketing
1 efficiency innovation
2 sustaining innovation

7. profit
time
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Innovation horizons and product lifecycles
3 transformative innovation

8. Trans-
formational
Innovation
Emerging Business
based on Baghai, Coley & White's Three Horizons of Growth as well as Nagji and Tuff’s Innovation Ambition Framework for Corporate Startup Summit • Zurich • 2018 ©9
Peer group focus: Strategic sustaining innovation and beyond
70% 20% 10%
Efficiency
Innovation
Mature Core Business
Sustaining
Innovation
Adjacent Growing Business

9. _ Senior Executives (C-Level) and Board of Directors (Strategy Committee)
_ Companies with headquarters in Switzerland and Germany
_ More than a dozen interviews so far
_ Multiple industries
_ Company size between 10 million EUR and 10 billion EUR
_ Financial market governed and owner governed companies
_ Study will be published once we exceed 40 interviews (in the second quarter of 2019)
Who we talk(ed) to
for Corporate Startup Summit • Zurich • 2018 ©10

10. _ Return on innovation is unsatisfactory… We measure NPV and ROI.
_ We hired ***. Still, innovation takes much too long.
_ We spent marketing money. We received innovation theater.
_ We are simply bad at innovation. We don't get ideas on the ground.
_ We didn't believe disruption could happen to us. We should have started earlier.
_ We have everything. And yet we are not connecting the dots.
_ Our R&D department is mainly technology driven.
_ For us, innovation means working incrementally more cost-efficiently.
_ Our main source of innovation are employees and customers.
_ We delegated innovation to the Head of Innovation. He reports to the CFO.
Some quotes
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11. 1) Lack of incentives for strategic corporate innovation
2) Short-term oriented innovation governance
3) Too much emphasis on efficiency innovation
4) Lack of strategic alignment and orchestration of innovation activities
5) Core business dependent financing
6) Inappropriate team composition
7) Sub-optimal sourcing mix
First findings
The major flaws in strategic sustaining corporate innovation
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12. for Corporate Startup Summit • Zurich • 2018 ©13
Facilitated peer group discussion
Flaw
Cause
Cause
Cause
Remedy
RemedyRemedy
Remedy
Remedy
Remedy

13. _ no long term incentives
_ no real principal (sponsor, champion)
_ no rewards: little to gain, much to loose
_ risk culture: taking risks is hardly appreciated
1) Lack of incentives for strategic corporate innovation
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14. _ conflict of interest (aka corporate immune system)
_ lack of knowledge and experience: avoidance of (more) uncertainty
_ preference of incremental innovation over radical innovation
_ risk culture: taking unnecessary risks is prohibited
2) Short-term oriented innovation governance
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15. _ Cost efficiency (bottom line) over new business (top line)
_ Execution vs. exploration training and DNA of managers involved
_ Lack of entrepreneurial spirit
3) Too much emphasis on efficiency innovation
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16. _ Purpose and goals of innovation
_ Different sponsors and buckets
_ Many cooks on the kitchen
_ Siloed activities
_ Innovation is hardly seen as a value stream
_ Unfavorable balance between push and pull
4) Lack of strategic alignment and orchestration of innovation activities
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17. _ Investment in strategic sustainable corporate innovation often isn't a board-level topic
_ The business units are responsible for innovation themselves
_ Corporate development must be financed from the margin, i.e. the free cash flow
5) Core business dependent financing
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18. _ Singlepreneurs or heterogeneous teams vs. cross-functional teams
_ Groups of experts vs. teams
_ Few diverse, conflated teams only
_ Assigned employees vs. employees who have applied for a position in the team
_ Team dynamics and psychological factors often play no role in team composition
6) Inappropriate team composition
for Corporate Startup Summit • Zurich • 2018 ©19

19. _ Too much «make» vs. «partner» or «buy»
_ Intrinsic team motivation - in love with solution [building] rather than the problem
_ Lack of scouting capabilities and appropriate networks
7) Sub-optimal sourcing mix
for Corporate Startup Summit • Zurich • 2018 ©20

20.  evitive ag  Kasernenstrasse 23, CH-8004 Zürich  www.evitive.net
 mob +4179 3204123  @p_miserez  @evitive_net  pascal.miserez@evitive.net