10 Profound Facts About Innovation for 2015

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This document presents 11 profound facts about innovation for 2015. Some key points include: by 2020, over 3/4 of S&P 500 companies will be companies we have not heard of yet; 93% of executives are looking to innovation to drive growth but 81% do not believe their organizations know how to lead innovation; over the last 10 years, 40 different billion-dollar startups were founded showing the potential of new companies; and the cost to build the next Twitter is low at $160 for a course on building websites plus free hosting, showing barriers to entry are reducing.

Business Technology

11 Profound Facts
About Innovation
for 2015
Presented by LeanEnterprise.co

“By 2020, more than three-quarters
of the S&P 500 will be companies
we have not heard of yet.”
!
-Professor Richard Foster, Yale University
1

93% of executives are
looking to innovation
to drive growth
-PwC study with 1,757 corporate executives
2

81% of executives do NOT
believe their
organizations know
how to lead innovation
-PwC study with 1,757 corporate executives
2

“Over the last ten years, 40 different
billion-dollar startups were
founded.”
!
-Aileen Lee, Cowboy Ventures
3

“Facebook is now worth more than
Disney, Coca-Cola, and Intel.”
!
-Matt Phillips, QZ.com July 2014
4

“A gigabyte of storage in 1993 cost
over $9,000. Now it’s a mere 4
cents.”
!
-Julie Bort, Business Insider 2013
5

“The cost is almost nothing to build
the next Twitter. Assume $160 for a
Ruby on Rails course plus free
hosting on Heroku.”
!
-Courtney Boyd Myers, The Next Web
6

The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Scale
Product/
Market Fit!
Starts
Working
Experimenting
& Pivoting Source: Paul Graham; avc.com
Time
Happiness

“The application of disruptive
technologies at the time of
development were not only
unknown, but unknowable.”
!
-Clay Christensen, The Innovator’s Dilemma
7

“Our findings support the idea a
firm’s scope for strategic change is
bound by external entities (i.e.
existing customers).”
!
-Clay Christensen, The Innovator’s Dilemma
8

9
“Despite the popular conception of
entrepreneurs as risk takers, risk
aversion does not seem to affect
the decision to become an
entrepreneur.”
!
-Noam Wasserman, The Founder’s Dilemmas

10
“The founders of Twitter, Instagram,
Pinterest, Foursquare, Asana, and
others were Google employees who
found it easier to start their
ventures on their own.”
!
-Trevor Owens, The Lean Enterprise

“The average entrepreneur has
fourteen years of work experience
and many of the most successful
worked in large corporations.”
!
-Trevor Owens, The Lean Enterprise
11

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Driving sustainable growth comes from embracing a systems perspective to our innovation activities. Because studies show that how you organize can make the difference between average performance from stand out performance. I’ve found that innovation is not an event and that businesses who create an innovation habit get better results. You will discover that How you innovate is as important as What you innovate.

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Here you get the latest of my presentations where I share messages such as: “We need to rethink the term “innovation” and we should drop the term “innovation culture” entirely.” “Four global megatrends drive business today: Everything moves faster, everything will be connected, knowledge is transparent and disruption hits harder and faster.” “Getting ideas and working with them in the early stages is the easier part. The execution is what really matters. We have begun the transition phase.” “The role of the CTO has changed as real value creation no longer is centered around technology or product itself. Services, processes and business models are key. The internal power needs to shift.” “Disruption hits much harder and much faster than ever before. You can’t plan for disruptive or radical innovation, but you can be sure you will be disrupted.” “Don’t talk about innovation. Focus on how you can transform your company based on values, assets, partners, threats and opportunities.” “The organizational structures need to change. They are not build for the upcoming challenges and opportunities and we need to experiment much more on what will work the best for the future of business.” “Strong organizations do four things very well: They listen, adapt, experiment and execute better than their competitors.” “There is no digital strategy. Just strategy in a digital world.” “If you want to change the perception inside your organization, the outside voice is the most important.” “People first, processes next, then ideas. The key for execution is people – don´t focus too much on ideas and projects.” “Discovery – Incubation – Acceleration: Have the right people for the right project at the right time in the right context. Build people pools, not just project pools.” “Strong change teams know they can´t do it by themselves; they become facilitators and integrators. Education is a key objective.” …and a short story that I really like: “A CFO is wary about investing in the training and education of the employees. He asks the CEO: ”What happens if we invest in developing our people and then they leave our company?” The CEO is a bright person and replies: ”What happens if we don’t and they stay?”

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10 Profound Facts About Innovation for 2015

1. 11 Profound Facts About Innovation for 2015 Presented by LeanEnterprise.co

2. “By 2020, more than three-quarters of the S&P 500 will be companies we have not heard of yet.” ! -Professor Richard Foster, Yale University 1

4. 93% of executives are looking to innovation to drive growth -PwC study with 1,757 corporate executives 2

5. 81% of executives do NOT believe their organizations know how to lead innovation -PwC study with 1,757 corporate executives 2

6. “Over the last ten years, 40 different billion-dollar startups were founded.” ! -Aileen Lee, Cowboy Ventures 3

8. “Facebook is now worth more than Disney, Coca-Cola, and Intel.” ! -Matt Phillips, QZ.com July 2014 4

10. “A gigabyte of storage in 1993 cost over $9,000. Now it’s a mere 4 cents.” ! -Julie Bort, Business Insider 2013 5

11. “The cost is almost nothing to build the next Twitter. Assume $160 for a Ruby on Rails course plus free hosting on Heroku.” ! -Courtney Boyd Myers, The Next Web 6

12. The Startup Curve Initial Enthusiasm Reality Sets In TROUGH OF SORROW Before Startup Scale Product/ Market Fit! Starts Working Experimenting & Pivoting Source: Paul Graham; avc.com Time Happiness

13. “The application of disruptive technologies at the time of development were not only unknown, but unknowable.” ! -Clay Christensen, The Innovator’s Dilemma 7

14. “Our findings support the idea a firm’s scope for strategic change is bound by external entities (i.e. existing customers).” ! -Clay Christensen, The Innovator’s Dilemma 8

15. 9 “Despite the popular conception of entrepreneurs as risk takers, risk aversion does not seem to affect the decision to become an entrepreneur.” ! -Noam Wasserman, The Founder’s Dilemmas

16. 10 “The founders of Twitter, Instagram, Pinterest, Foursquare, Asana, and others were Google employees who found it easier to start their ventures on their own.” ! -Trevor Owens, The Lean Enterprise

17. “The average entrepreneur has fourteen years of work experience and many of the most successful worked in large corporations.” ! -Trevor Owens, The Lean Enterprise 11

10 Profound Facts About Innovation for 2015

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