Innovate Executive Briefing
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Transcript of Innovate Executive Briefing
Doug Berger
Managing Partner, INNOVATE
+1.732.564.0945
Breakaway Growth & Innovation
Executive Briefing
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Chapters in the BreakAway Story
1. What is Breakaway Growth
2. Why innovation often disappoints
3. Playing a new game for new growth
4. The 5 Workstreams
5. An illustrative timeline
6. INNOVATE’s creds
Think of your company as the central character of the
Breakaway story. The central theme is achieving growth
above and beyond the trend line … in which you identify
and exploit new areas of growth and new dimensions of
business innovation … leading to you as more formidable
competitor.
The journey begins with a deep understanding of where
the rules, plays, skills and experience delivering core
business success are hindrances to new growth. Then
playing a new game alongside the old game leading to
future revenue that isn’t an extension of today’s trends.
The journey has the quality of an adventure in which you
encounter setbacks, overcome obstacles, find delightful
surprises including surprising yourself.
Our role, the folks at INNOVATE, is to be your trusted
advisors and catalysts helping you chart new paths that
become well-traveled avenues of your future mainstream.
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Core BusinessGrowth Breakaway Growth
Geo Expansion
Market ShareAcquisition
ProductExtensions Problems that New
Technologies Solve
Non-traditionalCustomers
New BusinessModels
Disrupt EstablishedMarkets
New CustomerNeeds
Inorganic Growth
Acquisitions
Corporate VentureCapital
Emerging trends
Horizon 2 … 5 – 10 yearsMost organic growth
is RENEWAL…surfing the trend
line
Redefining yourmarket position
Cross-businessVentures
Horizon 1 … 2 - 5 years
Outside Scope
Horizon 3 … +10 years
Basic Research
“ Breakaway Growth is putting your business on a new
growth trajectory … growth above the trend line ”
TechnologyAdvantage
Market growth
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Possible: Growth and Innovation Objectives
1. A robust set of 5 - 10 breakaway growth concepts … establishing a presence in high potential domains
(1) Domains and growth concepts are grounded in trends and industry forces
(2) Includes new business models.
(3) Presented as a compelling business story … easy to grasp in 60 seconds
2. A portfolio of 2-4 growth ventures with seed funding
(1) Representing a balanced portfolio in multiple time horizons, size and risk profile
(2) Playing a new game for the bigness of the opportunity yet establishing market-based proof points
3. Execute individual growth projects as entrepreneurial ventures
(1) Managed as agile start-ups with governance similar to venture capital
(2) Milestone funding vs. annual budgets
(3) Early, market-based signals of success
4. Build your internal capabilities for ‘Big I’ innovation
(1) Developing provocative and disruptive insights to stimulate ideation
(2) Discovering big trends that don’t come with labels on them
(3) Probing interviewing and ideation techniques
(4) Elaborating and pitching business concepts as a start-up
Starting with Success-defined Outcomes in mind
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Disruptive Insight … Why most innovation disappoints !
“If we continue to play the Old Game, all we will get is
competitive trend growth.
Breakaway Growth, well above historic trend lines, requires
playing a New Game.
You can’t effectively play a New Game until you deeply
understand how the Old Game is embedded throughout”
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Old Game – New Game Methodology
The Game for Core Business The Game for Breakaway Growth
Replace and renew in competitive domains Tap into and execute on future business domains
Stable, predictable market dynamics Customer and competitor uncertainty; disruptive trends
Many, incremental bets … Few kills Portfolio of move-the-dial investments … Disciplined kills
Stage-gate process oriented around product Entrepreneurial oriented around customer developmentand business creation
Late stage customer feedback Early & frequent customer iteration
Internal environment for CONTROL … Avoid risk Internal environment for BIGness … Take and mitigate risks
Launch at scale Agile launch … multi-generational scaling
Playing the New Game involves learning to shift … mindset, processes and practices.
It might best be viewed as a journey, an adventure or a creative process.
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A Focus on the Critical Enablers
1. Finding new hunting grounds you can leverage into move-the-dial revenue …
Aligning executive aspirations for the growth businesses of the future
Guiding your enterprise to uncover insights that aren’t in plain sight.
Then using those insights as a springboard for ideas.
Future domains offering big growth don’t often come with labels and flashing lights.
2. Creating a backlog of robust business concepts ….
Transforming ideas into investible business concepts is as much art as process.
Hands-on advice to your innovation team as they draft, iterate and strategically pivot.
Promising concepts waiting in the wings to replace early kills.
3. Venture-style execution …
New growth initiatives have more in common with start-ups than product development. Venturesform hypotheses … then prototype, experiment and iterate with lead customers.
The ‘Innovator’ is central. The team is as important as the concept.
4. Breakaway growth governance and enabling infrastructure …
Uncover & break the hidden cycle that forces new areas of growth back into the Old Game.
A plan to move key stakeholders to where you need to be
Governance is chartered to remove bottlenecks from conventional processes and mindsets.
Workshops, coaching and transformational experiences to develop an entrepreneurial mindset,disruptive thinking and ideation, business concept elaboration and storytelling.
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Our Approach – The 5 Workstreams
Venture Portfolio… Seed Funding
New Twists
Move-the-dialideas
Agile Execution
PORTFOLIO BUILDING
• Screen ideas and develop a select portfolio of options that fit with your business requirements
• Transform ideas into compelling business concepts
• Pitching the concepts to investors
DISRUPTIVE FORESIGHT / INSIGHT
The world through disruptive lenses … insights not in plain sight … spot ways to capture differentiatedand sustainable value
BUSINESS CONCEPT IDEATIONCatalyze ideas from diverse sources … internal, industry thought-leaders, senior executives from
outside your industry
ENTREPRENEURIAL VENTURES
• Manage as start-ups with a governance similar to venture capital
• Stay agile and scale only after proof in the marketplace
GOVERNANCE AND ENABLING INFRASTRUCTURE
• Establish governance similar to venture capital.
• Build a risk-managed portfolio.
• Insure that enterprise is playing a New Game in areas of breakaway growth.
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Market Foresight / Insight Workstream
Step into the mindset of entrepreneurs instart-ups and Venture Capitalists
Train the core team in principles ofdisruptive thinking.
Provide stimulating examples of game-changing insights from outside industries
Entrepreneurial Mindset1
Internal Discovery
Review recent research
Build idea base with lead employeesfrom within the company
2
Interviews with Externals
Trends from outside the industry thatcould enter the industry
Highest caliber experts (e.g. VCs,researchers, starts-ups)
Sourced through broad network
3
• Big trends not in plain sight
• Insights into customer patterns
• Innovations from outside
• Strategic implications
Uncovering New BusinessTerritories
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Internal Insights into Bottlenecks in your Growth Flow
Move-the-dial
BusinessConcepts
Portfolio of
BreakawayGrowth
Ventures
(funded)
Entrepreneurialand disciplined
VentureExecution
Entrepreneurialand disciplined
VentureExecution
Entrepreneurialand disciplined
VentureExecution
Entrepreneurialand disciplined
VentureExecution
Not Enough: savvy, entrepreneurialmanagement of each venture
Bottleneck: not enough move-the-dialbusiness concepts matching executiveaspirations
Not Enough: enabling governance and internal business innovation infrastructure
Not Enough: portfolio discipline of proofpoints, investment scaling, exits and kills
Governance and Enabling Infrastructure
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Modes of Ideation … Choosing what’s right for your organization
Ideation Sessions
Catalyzed by Foresight / Insight process
A structured process way beyondbrainstorming … training in disruptivethinking
Mix of internal and external participants
Participants guided in challengingassumptions and finding new opportunities.
Preliminary filtering and elaborating of mostpromising ideas.
Innovation Challenges
Crowdsourcing ideas
Cloud-enabled Idea Management
Put a Business Domain up for ideation toa set of internal employees or open topublic
Idea Geniuses
People with a track record of intuitingbig opportunities.
Immersion
Ethnographic deep dives
Living with customers
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Business Concept Workstream
IDEASBOLD IDEAS Ways we create move-the-dial ideas
Discovery
• Review recent research relative todomain
• Build idea base from internalorganizations (e.g. call centers,sales, R&D)
• Mine ideas from outliers withinthe organization
• Interviews with external providers
Ideation
A structured process that goes way beyondbrainstorming
Catalyzed by disruptive insights and discovery
Participants are externals, internal thoughtleaders, key operating managers
Participants challenge assumptions and find newopportunities
Idea Mapping
Establish screening criteria
Preliminary elaboration of ideas
Select top 10 - 15 ideas
Use portfolio tools to organize ideasinto several portfolio views
Input into Venture Conceptdevelopment
Mine ideas from internal and external sources
Guide the core team to design and facilitate structured ideation with externals, internal thought leaders andkey operating managers
Ideation makes use of techniques from Disruptive Thinking and Ideation skills-building workshop
Concludes with Idea Mapping to organize and screen potential ideas for “The Pitch” workstream
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< Enabling technologies, potential partners toaccelerate and de-risk >
Big Idea< Insert idea title>
Customer Problem, Unmet Needs, Insights
< What is pain point for the customer? >
< What is the core customer/consumer insight(s)underpinning this idea?>
<Please indicate any market evidence, key trends or factorsthat validate.>
Energy for Idea
< Why it is a big play and why it excites us? >
< Why we should do it? >
< What new capabilities or follow-on opportunities might itbring if we do this right? >
Why Us?
<What do we bring to this idea? >
< What gives us a competitive edge? >
< What makes it sustainable? >
< IP to accelerate this happening >
Value for Us
< How we will make money and/or broadly gain value (e.g.–revenues, brand building, brand stretch, competitivepositioning, hedge >
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22
Annual Total Market Size interms of Revenue in 2015
BETWEEN
$50M-$200M
BETWEEN
$200M-$500M
GREATER
THAN $500M
< 2-3 sentence description of big idea>
Target Market(s)< Insert information about target customers / consumers. For which specific customer segmentwould this be an exciting, compelling offering? >
External
Enablers
< Assumptions, Risks, Uncertainties >
Description
Hypotheses
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THE PITCH
Illustrative Template: One Page Business Concept
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‘The Pitch’
‘THE PITCH’
“Start-up Story”Showcase
Gaining Commitment & Seed Funding
Business ConceptElaboration
Customized Business Concept Template
The Big Idea
Customer/Problem/Solution
Execution enablers
Economics
Key hypotheses to test
The Art of Storytelling
Storytelling is a teachable art … coreprinciples underlying the great businessstories
Multimedia learning experiences
Video recordings of ‘practice pitches’
Coaching
Extensive Coaching
Elaborate screened ideas into total business concepts worthy of investment
Deliver an investment story that is exciting and persuasive
Mentorship by an executive on Venture Governance
At the end of the Pitch workstream, approved concepts go into the Breakaway Growth Portfolio
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Entrepreneurial Ventures Workstream
Entrepreneurial
Ventures
Agile Execution:
Validate, Pivot, Operate, Scale
Validate / Strategic Pivots
Identify and test key hypothesis
- - Customer acquisition
- - Business model
Make strategic pivots based upon validatedlearnings from real-world
Build strategic relationships
Operate … then Scale
Move from a business in beta-test to anoperating enterprise
Early signals of commercial success
Operate for sustainable cash flow
Multi-generational business building
Put systems in place to scale to next level
Coaching
Ventures have more in common with start-ups that with product development
The composition of the team is as important as the business concept
The critical uncertainty is consumer / customer development
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Governance and Infrastructure Workstream
Governance &Infrastructure
Playing the New Game for Breakaway Growth
Governance
Bring to life the spirit of Breakaway Growth
Catalyze action - organization learnings
Rapidly remove bottlenecks in real-time.
Manage the cost of failure not the rate offailure
Provide protection from legacy interestgroups … co-existence with core businesses
Mentoring
Enabling Infrastructure
Developing and deploying talent
Financial management recognizingfundamental market uncertainty
Career safety net
Linking among various growth ventures andwith core businesses
Releasing working capital based upon go-no- go milestones. Kill projects early.
Refreshing portfolio
Communicate a strategic context to the enterprise for Breakaway Growth
Manage an end-to-end Growth Creation Flow
Instill a new organization mindset
Gain new perspectives …. learn and implement new processes and skills
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Illustrative: High-Level Timeline
2012
Workstream Element PlanMonth
1Month
2Month
3Month
4Month
5Month
6Month
7Month
8
1. Joint Project Planning
2.. Internal Discovery Audit
3. Insight Interviews
4. Ideation Sessions
5. Concept Screening and Portfolio Mapping
6. Concept Elaboration
7. Venture selection and seed funding
8. Entrepreneurial execution
Key Event / Milestone
Activity
Our Promise: Within 45 days, you will be able to make very informed decisions aboutwhat changes you will need to effectively play the New Game.
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ScalableSolutions
Catalysts
for Action
‘New Game’
Execution
GlobalNetwork
Access to our vast network ofthought leaders, world class
experts, premierepractitioners
Impact the challenges ofNEWness head-on
Old Game – New GameMethodology
Disruptive Thinking
Real-time coaching
… PRACTICAL EXECUTION
Venture-style growth projects
Managed-risk portfolios
Action Roadmaps
BOLD IDEAS …
Spot promising hunting grounds
Creative go-to-market models
Break with traditions
Multi-generational
Stretch your competencies and abilities
End-to-end solutions –and/or- Plug-and-play modules
INNOVATE … Our Value Differentiators
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INNOVATE … Our creds
Clients
Publications
Articles and interviews on cutting-edge growthand innovation topics
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INNOVATE … Our clients say:
The Walt Disney Company - China
“You helped me to clarify the unique business potential and challenges of thePRC and convey that to senior Disney people who are not personally familiarwith our environment. We have begun to shift from a mindset of competitivegrowth to one of seizing the possibilities in an entrepreneurial way.”
Stanley Cheung, Sr. VP – China
Johnson & Johnson
“I have personally found you to be a valuable advisor. You are able to quicklygrasp both the big picture of a business situation and its subtle nuances. Youcaused me to think differently about issues I was facing that helped focusactions.”
Neal Matheson, CTO
Weyerhaeuser
“This was a unique situation for Weyerhaeuser in that it was the first ventureoutside of existing product lines to be pursued in many years. I’ve appreciatedyour candor, sincerity and commitment to assist the team and myself in any waythat you could.”
Grady Mulbery, Business Manager
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Founder and Managing Partner, Doug Berger
Doug Berger is an expert in breakaway growth, disruptive thinking and corporateentrepreneurship. He has more than 25 years of experience advising executivesand their global organizations. He has expertise in a broad range of industrysectors including consumer packaged goods, technology, health care, chemicals,entertainment and natural resources.
Doug conducts research on leading innovation practices and publishes TheInnovators ezine. He authored The One Hour Breakthrough: TranslatingAspirations into Action based upon his experience of training and coachingthousands of people in the art and discipline of breakthrough accomplishmentand disruptive thinking.
Doug held leadership positions in the computer industry in IT, large account salesand advanced product marketing. He founded Innovate LLC. in 2003. He has anMBA from Carnegie-Mellon and a BS in Physics, University of Rochester.
Thank you for this opportunity to introduce ourselves. We look forward to beginning a collaboration.