Post on 07-Feb-2017
transcript
Corporate Innovation:
The speed and agility of a start-up, powered by the resources of an enterprise:
• Reduce new product risks• Select projects with higher probability success
probability• Make better ‘build’ versus ‘acquire’ decisions
March 2014
Agenda
The PresentersThe ProblemThe Solution
EvidenceExamples
How to…Summary & Questions
Approximately 45 minutes
Dr. Peter Payne: Life Sciences & Early Stage Companies Xillix Technologies, Oncometrics Imaging, Biomax Technologies, Criterion Laboratories, Biosensus Technologies, University of British Columbia, Simon Fraser University.
Mr. Eamonn Percy: Clean Technologies & Large CompaniesPowerTech Labs, Ballard Power Systems, Pirelli Cables and Optical Systems
PRESENTERS
Problem:Large corporations appear less innovative than ‘start-up’ companies.
Evidence:Large US companies have lost 1.4 market share points ($10Bn USD) to SMEs over the last 5 years.
Examples:Amazon e-books vs. large books storesTesla electric cars vs. large automakers
The Problem
The Problem
You must adapt faster
Corporate Entrepreneurship
Strengths of a start-up company+
Strengths of your established company
= Increase Revenue
The Solution
Strengths of a start-up company Weaknesses of a start-up companyLow fear of failure Unproven business modelAdapt quickly No brand awarenessDisruptive technologies Unproven product
Strengths of a successful company Weaknesses of a successful companyPartners & Network Often slower to respond to marketResources: Capital & facilities Targeted by smaller companiesCan rapidly increase production betriebsblind
EXAMPLES
How?
A systematic approach known asLean Methodology
Lean Methodology is tested and proven effective.Used by world’s best companies
EVIDENCE
National Science Foundation (USA)3X funding success by defining business model early
Intuit Software50%Greater commercial success (new products)BDC preferential Convertible NotesBetter ROI from investments (no public data)
76% growth in Revenue
24% growth in Investment
16% growth in New JobsAug. 2013 data
Out performing Canadian averages by ~25%.
New data. March 2014: $102 Million
Evidence
MANY ‘NEW PRODUCT’ TOOLSSolutions
Start-up + Successful company: best parts
• Diverse team: e.g. Technical, Business, Sales, ‘Disruptor’• Teams should be 3-4 people (not 5+)
• Adequately funded to test hypotheses (product + business model)• Short time-lines• Ability to receive support from other business units• “Failure” does not end your career• Team is rewarded for success
Solution
hypothesishypothesishypothesis hypothesis hypothesis
hypothesishypothesis
hypothesis hypothesis
Solution = scientific methodBusiness Model Canvas
XHow to …
Hypothesis:Our customers require live support 24 hours/day, 7 days per week.
Experiment:Live call customers to see if this is true. Determine to a level of confidence (e.g. p=0.01)
Customer Discovery:What level of support would you like? What else would you like?
Step 1.Scientific method + Customer Discovery
ExampleXAMPLEHow to …
Simplified example:
Confidence level: 1 – 10 (10 = very high confidence)Critical level: 1 – 10 (10 = very critical to success)
Score: (1/Confidence)x(Critical) = proportional to success
e.g.High confidence and highly critical: (1/10)x(10)= 1High confidence and not critical: (1/10)x(1) = 0.1Low confidence and highly critical: (1/1)x(10) = 10Low confidence and not critical: (1/1)x(1) = 1
Higher numbers require action.
Step 2.Weighted result based on ‘critical-to-success’
EXAMPLEHow to …
Project Portfolio ManagementInternal projects are scored (simplified examples):Examine Competition and/or Acquisition Targets
911
141519
7
Determine which projects have the highest probability of best revenue
Project 1 Project 2 Project 3
Project 4 Project 5 Project 6
How to …
SUMMARY
Entrepreneurship Corporate
Questions & Feedback
Dr. Peter Payneppayne@sfu.ca
Mr. Eamonn Percyepercy@percygroup.ca