Innovation &
Entrepreneurship
July 15th 2014, Journey, Utrecht@fnauta
Innovation Ecosystem Construction Worker
Political Assistant Amsterdam Deputy Mayor Civil Servant Cinema Trendwatcher Knowledge Land PM Office Consultant Professor Climate-KIC
Program
9:30 - 10:30 What is innovation?
11.00 - 12.30 Innovation theory & exercise
12.30 - 13.30 Lunch
13.30 - 14.30 Introduction Business Model Canvas
15.30 - 16.30 Playing with Value Proposition
16.30 - 17.00 Startup talk CarbonOro
17.00 - 17.30 Startup talk Pectcof
0 Congratulations, you live in revolutionary times…
1977: $ 444.272 2014: $ 5.000
1 Innovation
What is innovation?
"Innovation is creativity with a job to do"
John Emmerling
What is innovation?
innovate |ˈinəәˌvāt| verb [ no obj. ] make changes in something established, esp. by introducing new methods, ideas, or products: the company's failure to diversify and innovate competitively. • [ with obj. ] introduce (something new, esp. a product): innovating new products, developing existing ones.
What is innovation?
People creating value through the implementation of new ideas
!
Herman D'hooge, Intel
What is innovation?
People creating value through the implementation of new ideas
!
Herman D'hooge, Intel
Where does innovation come from?
Do people resist innovation?
Some people love change
2% innovators
14% early adopters
34% early majority
34% late majority
16% laggards
source: Everett Rogers, 2001
...others not so much
Nerds
Visionairy
Pragmatic Conservative
Sceptic
{
'Valley of Death'
Why I do this work:
Talent &
Knowledge
Business Smart Money
Government Policy
Interaction
Talent &
Knowledge
Business Smart Money
Government Policy
Interaction
1891 1941
1951
1939 1958
The problem with innovation:
!
the best ideas don't win!
Five success factors
1. Comparative advantage
2. Compatibility
3. Complexity
4. Testability
5. Visibility
Five success factors
1. Comparative advantage
2. Compatibility
3. Complexity
4. Testability
5. Visibility
Exercise
Five success factors
1. Comparative advantage
2. Compatibility
3. Complexity
4. Testability
5. Visibility
Exercise
• Groups of 4 to 5 students
• Compare the Tesla S and the Mitsubishi Outlander with Rogers 5 factors
• Group discussion after the break
Dynamics of Innovation
Innovation is a puzzle1873 1882 1899
Tablet Computer
GridPad
Innovation is a puzzle
1989 1996 2001 2010
2007
Further reading
• On the Origin of Species - Darwin
!
• Mastering the Dynamics of Innovation -
Utterback
!
• Adapt - Tim Harford
2 Startups
What is entrepreneurship?
Entrepreneur(ial)
~ORIGIN early 19th cent. from French, from entreprendre ‘undertake’
~one who organizes, manages, and assumes the risks of a business or enterprise
-ial: ~not afraid to undertake a challenge
Entrepreneurship
The process by which individuals – either on their own or inside organizations – pursue opportunities without regard to the resources they currently control
Stevenson, 1989
DISCIPLINED ENTREPRENEURSHIP
Definition of Entrepreneurship – 2 Types
Entrepreneurship+
SME+(Small!Medium!Enterprise)!
Regional!Markets!Restaurants!Dry!Cleaners!Services!
IDE+(Innova=on>Driven!Entrepreneurship)!Global!Markets!Products!for!Export!
Sustainable!Compe==ve!Advantage!at!Core!
• Δt!is!short!• Linear!growth!• Less!investment!required!
• Δt!is!long!• Exponen=al!growth!• A!lot!of!investment!required!
Start-up
What is a startup?
• Temporary organization
• designed to search
• for a repeatable
• and scalable business model
Blank, 2012
What is a startup?
A very risky and extremely powerful innovation tool
for entrepreneurs
Nauta, 2013
Startup is becoming 'teachable' skill
A startup is designed for:
• Total • global • domination • in your chosen • market niche
Ken Morse
It's how all big companies started
Why I do this work 2
Why I do this work 2
$ 48 trillion: $ 48.000.000.000.000
until 2035
Excellent resources
• paulgraham.com/articles.html
• WIRED Y-combinator article
• www.steveblank.com
• techcrunch.com
• FastCompany.com
• WIRED.com
• www.businessmodelgeneration.com
Excellent resources
• blog.cleantech.com
• ecorner.stanford.edu
- Stanford Technology Ventures Program podcast (also video)
• www.ted.com
3 Business Model
Definition
A business model describes the rationale of how an organization:
• creates
• delivers
• and captures value
What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?
For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?Who are our most important customers?
What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?
What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?
Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
Day Month Year
No.
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Value Proposition in 7 steps:
1. FOR [the ideal customer]
2. WHO [has this specific pain or problem]
3. OUR [product name]
4. IS A [product category]
5. THAT PROVIDES [this main benefit and reason to buy]
6. UNLIKE [the primary alternative or competitor]
7. OUR PRODUCT [describe the key product features]
Exercise
• Groups of 4 to 5 students
• Write the Value Proposition of the Model S and the first iPhone
• Group discussion after the break
4 How do you start a
startup?
www.climate-kic.org
Eternal SunNew horizons in solar &
materials testing
Some tips
• Get an internship at a startup
• Toy around with your idea
• Listen to customers to understand their pain
• Read! Read! Read!
• Use your studies to do research
• Join a crazy nut with a wild idea
• Join the Greenhouse & after that the Accelerator
www.climate-kic.org
Eternal SunNew horizons in solar &
materials testing
Reading
• Startup Owners Manual - Steve Blank
• Founders at Work - Livingston
• Disciplined Entrepreneurship - Aulet
Join!
Entrepreneurship Program
Masterclasses
2014Green Entrepreneurship Valencia, 8-9 January
Negotiations London, 26-27 MarchSales Zürich, 7-8 May
Get ready for investors Copenhagen, 26-27 MayMarketing London, June 23-24
Building Global Business Paris, JulyLeadership & Teams September
Startup Finance OctoberManufacturing November
I wish you lots of fun on your Journey...
@fnauta