Trevor Owens - The Lean Enterprise

THE LEAN ENTERPRISETrevor Owens (@TO) Author & Entrepreneur

”In 15 years, 75% of the S&P 500 will be replaced by new companies.

Richard Foster

Dropped

100+ UNICORNS

Costs

1. Starting!

2. Growing!

3. Risk

Sustaining

Small Changes!Existing Market!Predictable

Disruptive

Dramatic Change!New Market!Unpredictable

Sustainingvs.

Disruptive

Sustaining! !

Disruptive! !

Old Thinking

Sustaining!Quick Revenue!

Disruptive!10 Year Timeline!

Old Thinking

Sustaining!Quick Revenue!High ROI

Disruptive!10 Year Timeline!Cannibalization

Old Thinking

Sustaining! !

Disruptive! !

New Thinking

Sustaining!Short Lived!

Disruptive!Huge Upside!

New Thinking

Sustaining!Short Lived!Uninspiring

Disruptive!Huge Upside!Attracts Resources

New Thinking

The Startup Curve

BeforeStartup

Source: Paul Graham; avc.com

Time

Hap

pine

ss

The Startup Curve

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Experimenting & Pivoting


Time

Hap

pine

ss

The Startup Curve

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup



Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Starts Working



Time

Hap

pine

ss

The Startup Curve

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

BeforeStartup


Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup



Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Starts Working



Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Product/Market Fit!

Starts Working



Time

Hap

pine

ssThe Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Product/Market Fit!

Scale

Starts Working



Time

Hap

pine

ss

STARTUPS SEARCH

COMPANIES EXECUTE

NEW MANAGEMENT

MVPs Pivots Early Adopters

123

Since 2010

INNOVATION COLONY

Innovation Flow Spin-Out Spin-In

123

Innovation Flow

1. Education!

2. Opportunity!

3. Rewards

Innovation Flow

THREE HORIZONS

1-3 Years Core Business 60%!

4-6 Years Rising Stars 30%!

7-10 Years Disruptive Tech 10%

Time Horizon Area Budget

SPIN-OUT

1. Think Differently!

2. Move Quickly

Give Independence

1. Preferred Shares!

2. Board Seats

Maintain Ownership

SPIN-IN

1. P/M Fit!

2. Corp Dev

Process

1. P/M Fit

Process

1. P/M Fit!

2. Corp Dev

Process

The Startup Curve

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ssInnovation Colony

The Startup Curve

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ss

Innovation Flow

Innovation Colony

The Startup Curve

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup



Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Starts Working



Time

Hap

pine

ss

In. Flow

Innovation Colony

The Startup Curve

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup



Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Starts Working



Time

Hap

pine

ss

In. Flow Spin-Out

Innovation Colony

The Startup Curve

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup



Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Starts Working



Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Product/Market Fit!

Starts Working



Time

Hap

pine

ssInitial

Enthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Product/Market Fit!

Scale

Starts Working



Time

In. Flow Spin-Out

Innovation Colony

The Startup Curve

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

BeforeStartup


Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup



Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Starts Working



Time

Hap

pine

ss

The Startup Curve

InitialEnthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Product/Market Fit!

Starts Working



Time

Hap

pine

ssInitial

Enthusiasm

Reality Sets In

TROUGH OF SORROW

BeforeStartup

Product/Market Fit!

Scale

Starts Working



Time

In. Flow Spin-Out Spin-In

Innovation Colony

Fumbling the Future

Xerox Technology Ventures

$30M Funding $2M Checks

Xerox Tech Ventures

New Entities

80%

20%

>XTV

7 Years

12 Years

XTV>

NO INTERNAL SUCCESS

$2M Funding $100K Investments

Microsoft Accelerator

Independent Entities

7%

93%

$2M

3 Months Later

$20M

3 Months Later

THANK YOUJoin the community —> LeanEnterprise.co !

Trevor on Twitter @TO

Trevor Owens - The Lean Enterprise

Technology

Transcript of Trevor Owens - The Lean Enterprise