Innovation PartnershipsBeing the Benevolent Virus

Malcolm De Leo

Delivering something better by thinking and acting differently.

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Why are innovation partnerships like a virus??

Innovation

The Corporate Body

The body will resist invaders

It can take over as it spreads

Its entry goes unnoticed

It targets a particular system

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Transaction Relationship Partnership Creationship

Definition Unemotional Business

Open Minded Business

Collaborative Business

Innovative Business

Trust Level Neutral Open Respectful Committed

Goal Get Things Done Listen and Learn Leverage StrengthsCollaborate Instinctively

Output Incremental Results Tactical Results Strategic Results Unique Results

What makes Innovation Partnerships Different?They are founded on a creative common purpose…

We strive to avoid the land of the standard…

to find the place of unique collaboration

Collaborative Innovation – Trust Robert Porter Lynch and Todd Welch

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Innovation Partnerships – Process OverviewCommitment to the vision is the key to success

Expose

Envelop

Infect

Breed

Thrive

Be an Innovation Speed Dater

Build a Team Within a Team

Grab an Innovation Foothold

Utilize the Concept of BEVIA

Deal for Lasting Joint Gain

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Exposure: Innovation Speed DatingOwn your partner by understanding

Innovation Extraction: Thoroughly understanding the value proposition within 15 minutes of exposure

Innovation Speed Dating is…• Focused on understanding• Striving for connection• Innovation empathy• Trusting it works• Stretching beyond their vision

Innovation Speed Dating is not…• Focused on doubt• Looking for standards• Needing proof to believe• About your company’s interests• Fitting today’s agenda

Innovation Speed Dating is Critical for….Establishing trust and team

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Envelop: Team within a TeamLoyalty to your partner is more important than your company

CorporatePartner

Why? Commitment to the vision is theFoundation of the Creationship

InnovationPartner

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Experimentation IssuesManaging partner interestsStake holder buy-inFitting experiment to strategyBalancing $$$$$$$$$$$

Key questionsCAN YOU MANAGE EXPECTATIONS?CAN YOU FIND EQUILIBRIUM?CAN YOU BALANCE THEM ALL?

Infect: Set up the Petri DishInnovation is risk and overcoming it involves experimentation

Fin

anci

al A

uth

orit

yLandscape

CXO

Manager

Director

VP

Contributor

Project Leader

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Breed: Proliferation is not a linear processInnovation ownership must be attacked at all levels at all times

Believe

Experiment

Validate

Integrate

I get it

I want to try it

I want to try it again

I want to use it over here

I want to use it everywhereAdapt

Company

Functions

Individuals

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Kinship

Thrive: Negotiate beyond the deal…Creationships exist beyond business terms

Expose

Envelop

Infect

Breed

Relationship

Credibility

Ownership

Formalize YourCreationship!!!!

Key things to think about

• It shouldn’t feel like negotiating• Think towards the test of time• Consider your culture!!!• Don’t forget how you got there• Both sides should own it already• It must be bigger than YOU!!!

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Case Study: Fortune 500 meets Internet Start-upThe principles create lasting joint gain for all

The START-UP Interest: Create revenue to validate

business model and achieve Series B Funding

StrengthsInnovative offeringCollaborative Management

WeaknessesNon-traditional technologyTime pressure to succeed

The FORTUNE 500 Interest: Identify capabilities to help

develop leading edge consumer products

StrengthsPartnership strategy/infrastructureWilling internal experimental partner

WeaknessesInsular ThinkingSponsor not long term economic buyer

Key approaches for success• “Teach” the start-up what the obstacles are in an honest way• Utilize the principle of financial landscape versus authority to create experiment• Fight for a cross-functional team to own the new capability and diversify future sell

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Results…. Expose: Fortune 500 sells unique experiment to Start-up Envelop: First deal completed at $150,000 below asking price to enable willing internal experimental partner to own the relationship success

Infect: First project lead to critical recommendations that helped successful launch on new consumer brand creating validation of new approach

Breed: First key deal enable over 30 key projectsTens of critical consumer insightsPresentations to multiple stakeholders across levels and functionsOpportunity to participate in acquisition work

Thrive: Relationship continues after 4 yearsThe Fortune 500: houses unique capability leading to real value on the marketplaceThe Internet Start-up: Over $1MM invested in partnership

Case Study: Fortune 500 meets Internet Start-upThe principles create lasting joint gain for all

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Lessons learned…top five things

Each step is key to making the journey happen Challenging those around you to ask not “yes, but” but “yes,

how” can be a catalyst for change Optimism and trust are what makes creationships possible Politics is the death of innovation…know your way around

the playing field Leading from the balcony will give you the patience to

succeed!