University of Dublin Trinity College

Leadership  &  Innova0on  

Presenta)on  to  M.Sc.  classes  

13th  February  2013  

Paul  Woods  

Background  •  Commercial  experience  

  Led  teams  winning  customer  service  and  ICT  team  of  the  year.  

  Successful  design,  launch  and  scaling  of  many  products.    

  Direct  transac)on  experience;  acquisi)ons  and  sales.    

  Integrated  start-­‐up  into  Vodafone  in  2008.    

  Opera)ons  management  (IT  /  Service  /  logis)cs  /  call  centres).  

•  Technical  experience  

  Strong  knowledge  of  engineering,  product  and  process  design.    

  Managed  P&L  of  eircom’s  infrastructure  division.  

  Programmed  fault  tolerant  distributed  systems.    

  Evaluated  IPR  ranging  from  encryp)on,  early  cancer  detec)on,    

 hea)ng,  energy,  food  preserva)on  …  

Leadership  •  Leadership  and  management  differ    

  Leaders  role  is  to  set  a  vision  and  inspire  and  mo)vate  a  team  desire  to  execute.    

  Managers  role  is  to  plan,  organise  and  coordinate.    

  Natural  born  leaders  enjoy  leadership  and  developing  the  poten)al  of  their  followers.  

•  Leadership  poten)al  can  be  developed  

  Develop  innate  knowledge  of  weaknesses.  

  Challenge  yourself  to  con)nuously  develop.  

•  How  do  leaders  you  admire  lead  and  behave?  

  What  values  do  they  hold?  

  How  do  they  start  and  finish  their  day?  

  Strategic  vision:  Amazon  versus  Apple?

Innova)on  •  Innova)on  comes  from  the  La)n  word  innovare:  “to  change”  

  Passion  is  key  to  innova)on,  willingness  to  go  beyond  the  status  quo.    

  Lack  of  innova)on  can  quickly  damage  large  companies;  Microsoe,  HP,  Dell  …  

•  Difficult  tradeoff  in  ensuring  business  focus  while  retaining  innova)on  

  This  tradeoff  usually  provides  gaps  for  new  start-­‐ups.    

  Many  corporate  companies  allow  start-­‐ups  take  the  risk  and  acquire  if  successful.    

Understanding  value-­‐add  key  •  Problems  that  can  be  solved  

  Iden)fying  new  markets  or  beher  products  /  services  for  exis)ng  markets.    

  Social  networks,  a  new  market  based  on  humanity’s  innate  social  dimension.  

  A  Kindle  allows  you  to  carry  thousands  of  books.    

•  Opera)ng  efficiency  

  Opera)ng  efficiency  can  offer  value-­‐add,  either  due  to  lower  overheads  or  directly  in  product  design.  

  A  drone  can  pull  a  higher  g  force,  fly  for  longer,  an  operator  can  manage  many,  and  that  operator  isn’t  put  in  danger.    

•  Ecosystem  

  Keystone  strategy,  developing  an  ecosystem  that  acts  as  a  biosphere  for  growth.  

  Ensuring  clear  /  stable  incen)ves  to  join  ecosystem!    Example  app  developers.

Start-­‐up  culture  /  team  •  Convex  lens  leadership  

  Think  big!  Choreograph  team  like  an  orchestra.    

  Darwinian  selec)on.  Limited  resources  /  )me,  understand  when  to  pivot  /  adapt.    

•  Team  

  Many  start-­‐up  CEOs  would  not  make  good  corporate  CEOs  and  vice  versa.  

  Start-­‐up  environment  only  suited  to  high-­‐energy  individuals.    

  It’s  easy  to  find  a  good  idea,  pulng  in  place  a  great  team  is  hard.    

  Highly  incen)vise  team  for  success,  rapidly  deal  with  underperformance.    

•  Culture  

  Culture  of  ‘demo  or  die’.  

  ‘Will  to  win’  needs  to  be  cul)vated  and  protected.  

Vectors of differentiation •  There  are  many  vectors  of  differen)a)on  including  

  Free  to  customer  (Google).  

  Ease  of  use.  

  Improving  customers  produc)vity.  

  Design  aesthe)cs  (Apple).  

  Reducing  customers  total  cost  of  ownership  (cloud  compu)ng).  

  Unique  fundamental  capabili)es  (Kindle  versus  tablet).  

  Ecosystem  (Amazon  /  Facebook).  

  Low  cost  (airlines).  

Thinking outside the box •  If  a  baby  incubator  cost  $25,000,  could  a  product  with  equivalent  benefit  be  made  for  $25?  

  Yes!  Engineer  insulated  infant  sleeping  bag  with  wax  hea)ng  module.    

•  CLV  for  the  customer  (i)  using  current  service  can  be  denoted  as:  

Where  

CFi,k  =  the  net  cash  flow  

D  =  discount  factor  

K  =  )me  period  

•  Time  period  (K)  =  Customer  length  of  service  (LOS)  

  Number  of  transac)ons  a  customer  will  make.  

  Impacted  by  contract  dura)on,  compe))veness  &  special  promo)ons.  

  Long  LOS  not  necessarily  correlated  to  higher  CLV.  

  Acquire  customers  when  CLV  >  customer  acquisi)on  costs.  

Understanding  customer  life)me  value  

•  Current  value  doesn’t  provide  insight  into  poten)al  value  via  up/cross  selling  of  add-­‐ons  or  new  products.  

•  Poten)al  customer  value  can  also  be  calculated  as:  

Where  

i  =  customer  who  uses  service  j  from  compe))ve  op)ons  available.  

ij  =  profit  company  can  make  from  customer  i.  

•  Decision  tree  can  be  used  to  evaluate  poten)al  value  for  distribu)on  of  customers,  taken  into  account  probability  of  up-­‐selling  op)ons.  

•  Acquisi)on  threshold:  weighted  poten)al  value  >  acquisi)on  costs.  

Understanding  poten)al  value  

Super trends highlight opportunity ①  Popula)on  growth  and  aging  

  New  healthcare  products  /  services  and  approaches  to  preventa)ve  care.  

②  Globalisa)on  and  urbanisa)on  

  Smart  ci)es,  grids  &  water  management.  

  New  forms  of  ci)zen  protec)on,  ways  of  working  …  

③  Intelligence,  knowledge  and  innova)on  

  Designing  and  interpre)ng  big  data.  

  Decision  support  tools  that  can  take  increasing  variety  of  inputs.      

④  Environmental  and  resource  strain  

  New  technologies  to  op)mise  and  control  use  of  scarce  resources.  

Conclusions •  Leadership  is  a  choice  

  Many  are  born  with  leadership  traits,  but  skills  can  also  be  developed  /  honed.  

  Iden)fy  key  weaknesses  and  embrace  opportuni)es  for  personal  growth.  

•  Innova)on  requires  passion  

  Innovators  don’t  just  consider  rewards,  love  to  challenge  the  status  quo.    

•  Customer  value  

  Understanding  value-­‐add  is  key  to  developing  a  successful  company.  

  Consider  economics  of  customer  acquisi)on  and  prospec)ve  life)me  value.  

•  Super  trends  

  Several  super  trends  emerging,  opening  up  opportuni)es  for  you  all!