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How to Build an Innovation Funnel in Large Organizations


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Everybody is talking about innovation, but the truth is that innovation in large organizations doesn’t really work. There are extremely powerful forces who work against innovation.
In this presentation, I will review the challenges of innovation in a large organization. Why is it so hard and what are the shortcuts you should avoid?
I will also present the HP Software Innovation case study - how we built a lean innovation machine.

Published in: Leadership & Management
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How to Build an Innovation Funnel in Large Organizations

  1. 1. How to Build an Innovation Funnel in Large Organizations Tal Atzmon
  2. 2. About myself Passionate Product guy Worked at Startups and Enterprises Lecturer Startup mentor In the past 2 years, HP Software Innovation
  3. 3. Today I will talk about • The challenges in implementing innovation in a large organization • The HP Software Innovation case study
  4. 4. Challenge 1: Organizations are Killing Innovation
  5. 5. Large organizations have optimized to do something in the most efficient way. When someone in the organization suggests a new direction, the entire organization starts working against the idea. If everyone is measured on resource efficiency, then Innovation is perceived as distraction.
  6. 6. Challenge 2: Executives are Looking for Shortcuts
  7. 7. The constant pressure to look for the company’s next raising star, puts Executives under a lot of pressure. This pressure is causing them to look for shortcuts in Innovation.
  8. 8. Shortcut #1: Innovation Events Hackathons are great, but what happens the next day? Do the winning ideas have a chance to succeed?
  9. 9. Shortcut #1: Innovation Events Organizations should create a Credible Innovation Platform
  10. 10. Shortcut #2: Innovation should be Massive Betting on a massive innovation is a huge risk. Most companies are not Apple or Google
  11. 11. Shortcut #2: Innovation should be Massive Organizations should focus on Low Cost Experiments
  12. 12. Shortcut #3: Innovation is Invention Handing the innovation task to a small elite group capable of inventing technology, reduces the amount of new ideas
  13. 13. Shortcut #3: Innovation is Invention Organizations should encourage Every Employee to Innovate
  14. 14. What is a Low Risk Innovation? What should organizations innovate around, in order to reduce the risk and cost of Innovation? • Leveraging an existing technology to a new product • Upsell existing customers • Leveraging an existing technology to a new market
  15. 15. HP Software Innovation How we built a lean Innovation machine
  16. 16. Focusing on the following principles: Credible Innovation Platform Low Cost Experiments Every Employee Should Innovate
  17. 17. IDEATION INCUBATION SEED GROWTH • 3 months period • Every employee can submit an idea • Online forum • Interact and get feedback Innovation Funnel
  18. 18. IDEATION INCUBATION SEED GROWTH • Validate Problem/Solution fit • 10% of their time (½ a day a week) • Pitch to the Innovation Council Innovation Funnel
  19. 19. IDEATION INCUBATION SEED GROWTH • Validate Product/Market fit • R&D and UX resources • Build an MVP Innovation Funnel
  20. 20. IDEATION INCUBATION SEED GROWTH • Handover to the business • Provide guidance Innovation Funnel
  21. 21. IDEATION INCUBATION SEED GROWTH Lean Experimentation Funnel HighCost………..…LowCost • Fail Fast, Fail Cheap • This operation needs management and attention
  22. 22. IDEATION INCUBATION SEED GROWTH How do you manage such an operation? • The Innovation process is a Product • Customers are the organization employees • Your goal is to Acquire, Activate and Retain customers Managed Innovation Funnel
  23. 23. IDEATION INCUBATION SEED GROWTH Acquire customers • Systematic email marketing campaigns • Targeted email campaigns • Review the ideas • Organize idea sourcing events • Gamification system Managed Innovation Funnel
  24. 24. IDEATION INCUBATION SEED GROWTH Activate / Retain customers • 16 weeks program • Training • Lean startup • Interviewing customers • Success criteria • 3 customers who confirm the problem • Feasible go-to-market • Prepare for the Council (VC) Managed Innovation Funnel
  25. 25. IDEATION INCUBATION SEED GROWTH • Executives attend the meeting • Opportunity to hear new ideas • Low risk decisions • Visibility to executive management Managed Innovation Funnel
  26. 26. IDEATION INCUBATION SEED GROWTH Retain / Referral customers • Test company customer’s interaction and satisfaction • Executive mentorship Managed Innovation Funnel
  27. 27. IDEATION INCUBATION SEED GROWTH • Periodic meetings with the business unit Managed Innovation Funnel
  28. 28. IDEATION INCUBATION SEED GROWTH Past 2 Years Results 600 110 18 11
  29. 29. “How can I build an innovation funnel in my organization?” One thing YOU can start today
  30. 30. The Core of Organizational Innovation GROWTH SEED INCUBATION IDEATIONIDEATION SEED GROWTH Show your management you can reduce the risk of innovation • Focus on solving one painful problem • Gather customer feedback • Pitch it to your managers – reduce their decision making risk • Repeat
  31. 31. “ Validate a Use Case, Not a Platform
  32. 32. Thank You! @talatzmon /in/talatzmon/ tal.atzmon