Ubs leadership in business development 11 16kort

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Leadership in Business

Development

UBS - 24-11-2016

Agenda

✓Strategy & Direction✓Preconditions for Innovation✓Innovation Culture✓Leadership Styles✓Building Innovation Capability✓Designing the structure for innovation

§ Innovation Portfolio§ Innovation Structure & Governance§ Innovation Process / Way of Working § Innovation Toolkit

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STRATEGY & DIRECTION

Why Innovate?

To deliver more value by offering…

• quicker• better• more efficient

… products or services.

The “why” of innovation is simple: change is accelerating, which means that we don’t know what’s coming in the future, which means more uncertainty than ever, which means we’d better innovate to both prepare for change, and to make change.

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Innovation can come from anywhere, anytime & anyplace.Innovation is not only technology innovation but also product/service innovation, business model innovation and process innovation; innovation ranges from incremental (horizon 1 to disruptive innovation / horizon 3).

Business Development encompasses the creation of long-term value for an organization from customers, markets, and relationships, and, thus, also includes innovation.

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Clayton Christensen: Disruptive Innovation

Opening for Killer Applications

Progression of Technology

Incremental Business Change

Examples

• +++ Uber &c

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Virtual: New RulesUber The world’s largest

Taxi company, ownsNo vehicles

The world’s mostPopular media owner

Creates no content

Facebook

Alibaba The most valuableRetailer, has no inventory

The world’s largestAccommodation provider

Owns no real estate

Airbnb

Something interesting is happening.

Start-up mentality = Survival

No longer exist… No one can live without…

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Unbundling Rabobank (personal)

Insurance

Investing andRetirement

WealthManagement

Loan and Credit

Home Lending

Going to College

Borrowing and Credit

Payments

Unbundling Rabobank (business)

Loan and Credit

Manage Payroll and EmployeesMerchant Services

Funding and Credits

Payments

Insurance

link

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Unbundling iOSMessages Calendar Photos Camera

Notes Videos

Newsstand

Maps

ApplePay

FaceTime

iBooks

Stocks

HealthMail

Apple Watch SafariMusic

Unbundling healthcare *created by www.CBInsights.com

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HOW TO DEAL THE SPEED OF CHANGE?

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Business Adaptability

It’s never going be any slower….With tech innovation gaining ever more speed and on top of that the variety of innovations coming to maturity – AI, robotics, New Materials (graphene), 3D Printing, Sensors, Nano technology – large companies and corporates find it more difficult than ever to keep up. The bureaucracy slowdown can become a meltdown if they are not careful. So grow fast or die slowly…or at least, assure some adaptability of your business design.

Innovation as driver of growth

The key question companies need to address is where and how to grow. It all starts with a vision, a purpose. What is the ‘raison d’être’ of the company. Large companies or corporates lose their entrepreneurial DNA over time. Their purpose dilutes into survival mode, with a focus on short term shareholder objectives.

A company needs to determine its ‘True North’ and requires a purpose all employees identify with. This purpose defines the space where growth can be sought and, consequently, how innovation can be steered and given direction.

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Your Innovation Orchestra

How to innovate yourself?

• R&D• Corporate Venturing / Incubation• Define product-based innovation broadly– packaging, engineering, market research, technology, know-how, etc.

• Product / Service, any value proposition• Design innovation in all you do• Commercial innovation including go-to-market• Business model and cost innovation

improvements in all processes• Connect & Develop; Greater than 50% of

innovation coming from outside the company

How to obtain innovation?

• M&A• Minority Stakes• Venturing Fund / Fund of Funds• Partnerships & JV’s• Licensing• Open Innovation

There are several different ways of creating or obtaining innovation, each requiring a specific skill set to execute on (your ‘sections of an orchestra’):

Content streamingContent creation

+Content streaming

LightingLighting

Consumer ElectronicsMedical Systems

Health &

Wellbeing Company

Forestry Mobile TechnologyNokia Networks

HereNokia Technologies

DVD rental

Visie & Ambitie

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PRECONDITIONS FOR INNOVATIONInnovation Ecosystem Pillars

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So….. How difficult is it??

9 out 10 startups fail

85% of NPD initiatives fail

Yep…....it sure is difficult!!!

Innovation CharterWhat’s needed to be able to innovate?

• Your MTP*/Passion• Preconditions for Innovation• Innovation Strategy• Innovation Structure• Innovation Culture• Innovation Processes• InnovationToolkits

*: Massively Transformative Purpose, Exponential Organisations, Salim Ismail, Yuri van Geest, Michael S. Malone

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Rigorous Process:Develop and apply a rigorous process and measure efficacy.

If you do have a process, people willregress to default behaviour as we are sub-optimal leaners and sub-optimal listeners. We regress to the state of mental laziness and conformational thinking.

Resources:Have resources available when next milestone requires.

Every start-up or venture requires funds. But these funds need only to be provided based on achievements, i.e. achieving milestones. Having said so, once start-ups have achieved their milestone, funding needs to be made available immediately; if you do not do so, this expresses lack of commitment and undermines trust.

Mandate:Ensure innovation has the C-suite backingto develop and grow.

If mandate and governance are not clear, innovation will require complex, time and energy consuming stakeholder management. The focus of activity should be on creating a new business and not on ‘keeping all the frogs in the barrel’.

Direction:Provide teams the direction to develop the company, it’s ‘True North’.

Innovation needs direction to valuable to a company. Leadership needs to take ownership and communicate the direction the company is moving towards and accept the consequences of this choice (as the rest of the company will act on this). The direction needs to be a long term objective.

Purpose

Innovation process: value creation, delivery and capture

Innovation ambition, agenda and strategy

Innovation portfolio- and funnelmanagement

Horizon 1 Horizon 2 Horizon 3

Integrated approach to embedding innovation as a ecosystemIncreasing performance both top down and bottom up.

Higher goal: what is our ambition as a country? And what is our reason to innovate?

Strategic: what innovation goals, themes and roadmapswill help us realize our national innovation strategy?

Tactical: how do we implement selection and governanceprocesses to ensure that (sufficient) innovation projectscontribute to our strategy?

Operational: how do we generate and execute theright ideas and get projects in market fasterwith a higher chance of success?

Capability andculture:

creating an optimum environment through

people, culture, knowledge

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You have gain innovation maturity?*

Level 1 Level 2 Level 3 Level 4 Level 5

Entry Level Innovation Practices Emerging Innovation Practices Co-ordinated Innovation Practice Innovation Leadership Industry Innovation Leadership

• Only broad reference to innovation

• Executive sponsorship vague or unknown

• Idea boxes and brainstorming• Limited competency• No / limited innovation

strategy• Ad-hoc approach• Perceived as ‘too hard to

action’• Limited training

• Recognised need for innovation

• Limited executive sponsorship

• Innovation allocated to function or business unit

• Siloed innovation strategies & practices

• Some strategic success• Some executive

sponsorship• Innovation included in

business strategy• Repeatable processes• Executive level

competence• Common language

• Consistent repeated strategic success

• Strong executive sponsorship

• Innovation central to business strategy

• Fully-integrated innovation program

• Company-wide processes• Core capabilities• Common language• Embedded in culture

• Collaborative innovation practice across and beyond industry

• Innovative business model & structure

• Fully integrated practices and processes

• Innovation central to brand value

*: Source: Berg Consulting Maturity Model

INNOVATION CULTURE

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*: Nathalie Baugartner

Understand what culture really is

Don’t ask youremployees what yourculture is

Culture is howyou do thingsin yourcompany Actual culture:

how yourpeople are

wired

Aspirational culture: what youwrite on your walls, your

website There is no single right culture

Allign yourculture with

everything youdo

Identify youremployees core

values (corevalues are very

personal)

Use your own tools to hire peoplewho fit in the culture

Use culture todevelop yourpeople

Your culture drives engagement

Actively managing yourculture lets people betheir best

The hard things about hard things*The truth is that innovation is a hard thing. And research has established that what makes innovation really hard is the lack of soft skills; it’s about the ability to work with each other.

The 2 biggest inhibitors of innovation are ego and fear**.

Ego is a Me-culture driver, focussing on individualism, hierarchy, elitism, predictability and minimizing mistakes. Fear is in this context, fear for the unknown, fear of failure (as this is not allowed), fear of not being accepted by the boss.

Innovation is a We-culture activity, focussing on group activity, equality, ambiguity and accepting mistakes to learn quicker and better than the competition: it starts by saying and acknowledging “I don’t know’. In this context there is no fear, only ownership, contribution and being part of community.

*: Taken as inspiration from the titel of the book by Ben Horowitz

**: Learn or Die: Every Business Will Be In The Business of Learning, May 2015, Edward D. Hess

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So what are the enabling conditions for a strong Innovation Culture?

In the following slides we have summarised the most important enabling conditions tor creating a strong and sustainable Innovation Culture.

We would like to highlight two additional aspects related to creating an Innovation Ecosystem:

1) To create a Innovation Ecosystem you require more than just the right culture. You require a clear business strategy that is closely linked to your innovation strategy. You require various skillsets from portfolio and funnel management skills to growth hacking, from communication to rewards and recognition.

2) You can only create a strong and sustainable innovation ecosystem and culture with many baby steps. This is about learning how to do this in a for the company relevant way; it’s not one size fits all. And the same rules for creating startups also holds true for creating an innovation ecosystem: learn faster, better and quicker than your competition.

6 enabling conditions for a healthy innovation culture

Openness & Transparency

Communicate frequently, eliminate ego and fear of

failure while being rigorous with time and milestones.

Diversity of thought

Innovation relies on variability, serendipity,

diversity, creativity, accidents and mistakes.

Passion & Energy

Fuel ownership, accountability and

passion by emotional engagement.

Freedom to Act

Being able to speak and act freely with support

from the leadership.

Space & Focus

Provide teams a space and allow them to focus

100% of their time to innovate.

People

Hire curiously optimistic, outcome focused, risk aware people willing to fail in the

pursuit of innovation whilst investing in training.

Innovation and change are about people; companies don’t change, people in companies change. So if your company aspires to grow through innovation and change, how do you create the right environment for these people to enable great innovation and foster growth? Here are 6 enabling conditions you can start thinking about.

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Passion & Energy



Freedom to Act



Space & Focus



People



Openness & Transparency:

• Avoid the biggest inhibitors of change and innovation: ego and fear

• Candour• Conformity to brutal facts• Fact based Meritocracy• Be scientific in assessing your experiments• Rigorous time and milestone management and firm

commitment to deadlines• Learn, Learn, Learn!• Communication: loads of it!!

How to create Openness & Transparency:

Ø Be extremely open yourself; model the behaviour you expect/wantØ Be radically transparent. Provide people with as much information as possible to what’s going on around them. Allowing

people direct access lets them form their own views and greatly enhances accuracy and the pursuit of truth.Ø Communicate the logic and welcome feedbackØ Hypocrisy kills trust; always be truthful and forthcomingØ Base decisions on facts, not opinions. Define OKR’s rather than KPI’s




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Diversity of Thought:

• Devalue hierarchy• Devalue elitism• Accept critical thinking (not negativity)• Fuel creativity• Innovation rides on variance; serendipity, mutation,

accident, and mistake• Diversity of team backgrounds

How to create Diversity of thought:

Ø Recognize that people are built very differentlyØ Think about their very different values, abilities and skillsØ Research shows multidisciplinary collaboration leads to better skills in communication, collaboration, and professional

abilities, a better understanding of the collaborative process and how different professions complement each other, and has apositive effect on future career development and sense of achievement




Freedom to Act:

• Psychological safety• Permission to speak freely• Permission to fail• Let go of control on content; check progress, check

learning• Leadership that is willing (mind-set) and able (skillset)

to act as first line of defence against the "no-machine"

How to create Freedom to Act:

Ø Recognize that effective, innovative thinkers are going to make mistakes and learn from them because it is a natural part of the innovation process. For every mistake that you learn from, you will save thousands of similar mistakes in the future. So, ifyou treat mistakes as learning opportunities that yield rapid improvement, you should be excited by them. But if you treat them as bad things, you will make yourself and others miserable, and you won’t grow.

Ø Provide clear GovernanceØ Set the right expectations: provide clear milestones and let the team achieve these milestones their own wayØ Psychological safety comes from caring for your people.

Freedom to Act



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Space & Focus:

• Enable team to spend 100% of their time on creating; you can’t innovate on the side

• Provide a dedicated environment for innovation• Drive focus in the way the team addresses an

opportunity

How to create Space & Focus:

Ø Space from a mental state perspective: enable looking at the problem from as broad a perspective as possible.Ø Space from a location perspective: provide an environment that is conducive to innovationØ Move from divergence to convergence in a timely fashion so that the team can focus on what the actual value proposition is

and how to deliver thisØ Lean financing: financial pressure forces the team to focus on what really needs to be achievedØ Milestone-based value creation: using milestones help focus the execution of the plan, overall activity and steps to be

achieved to be able to move forward.

Space & Focus



Passion & Energy:

• Fuel ownership and accountability• Fuel passion by emotional engagement• Driven by a need to continuously improve oneself

How to ensure Passion & Energy:

Ø Commitment is defined as “being bound intellectually or emotionally to a course of action.” When it comes to being innovative and creative, the problem is that most executives are only bound intellectually to a course of action.

Ø Link people, do not rank peopleØ Enable collaboration; breaks down internal barriersØ Enable people to do work, don’t tell themØ Teaching soft skills sets is perhaps more important than teaching occupational skillsØ Accept failure as long as there is learning; if there’s no learning, address failure harshlyØ Make it fun to work; remember, when you take yourself too seriously, life ceases to be fun.

*: Author, E.M. Foster said, “One person with passion is better than forty people merely interested.”

Passion & Energy



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People:

• Hire the right people: People who are curiously optimistic, outcome focused and willing to fail in the pursuit of creating new public value streams

• Measure their behaviour• Reward and recognize the right behaviour• Learning as a continuum

How to select the right people:

Ø Most importantly find people who share your visionØ Hire people you want to share your life withØ Weigh values and abilities more heavily than skills Ø Look for people who are willing to look at themselves objectively and have characterØ Conceptual thinking and common sense are required in order to assign someone the responsibility for achieving goals (as

distinct from tasks)Ø Hire right because the penalties of hiring wrong are hugeØ Pay for the person, not for the jobØ Hold people accountable and appreciate them holding you accountableØ Think like an owner and expect the people you work with to do the sameØ Constantly stay in sync with your peopleØ Train and test people through experience

People



Types of Innovation Culture

Entrepreneurial CulturesFormulaic Cultures

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Formulaic Cultures• Orchestrated• Carefully planned• Any new technology is prototyped

– Prototypes are integrated into the design, – Prototypes are endlessly tested, and– Prototypes are weighed to the gram.

• All departments coordinated– materials science– styling, – power train– Ergonomics– manufacturing.

• All of the critical functions together under one roof - hub-and-spoke model with a central core connected to each of the floorsthat house the product groups.

Entrepreneurial Cultures

• True entrepreneurial cultures are rare in large companies. • Often feature a single, rogue innovator, a leader who by timing

or luck finds himself orchestrating a maelstrom of technology disruption.

• Downside: they can rely too heavily on the genius and charisma of the central innovator

• Willing to take risks that normal companies would consider off the charts.

• Cultures almost never satisfied with incremental growth but rather strive for major disruption.

• Weapons: business models. • Use the power of emerging and disruptive technologies to

reinvent the way products and services are used.• Create models and practices that don’t just encourage novel

thinking but also offer channels and forums to openly challenge leadership.

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Google’s 9 principles of Innovation

• Innovation comes from everywhere• Focus on the user• Think 10x, not 10%• Bet on technical insights• Ship & iterate• 20% rule• Default to open• Fail well• Have a mission that matters

General views• Know Thyself

There’s no singular method to creating a culture of innovation. Establishing one, and making it stick, depends on understanding the climate.

• Innovation is business as usualInnovation isn’t just a pet project. From R&D to human resources, customer service to financial operations, success relies on a constant evaluation of creativity—it’s everyone’s job, all the time.

• Just do itYou want to move quickly when innovating. Moving too slowly can be the death knell of new ideas.

• Knock failure off its pedestalInstead of glorifying failure, these companies knock it off its pedestal, disempower it, and move on.

• Lead infectiouslyStrong leaders don’t just maintain control. They communicate their vision clearly, which enables others to think expansively.

• Innovation is a human conditionInnovation is not a rare quality inherent in a lucky few—it’s a way of thinking and behaving that comes naturally. An organization’s job is to foster the right climate to unleash its employees’ innate innovative tendencies.

• Measure what’s meaningful

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Leadership Styles

On leadership building an Innovation Ecosystem

“Leaders of the future need to be strong in their overall people ‘agility’, strategic planning, ability to inspire commitment, capacity to learn, and ability to lead and manage change.”*

Organizations don’t change. People in organizations change.

A healthy Innovation Ecosystem requires organizations to give room to the desire of people to change. Challenging the status quo is not really a problem for most employees. They start fresh and new, with plentiful ideas on how to do things better, but generally after 6 months they have been indoctrinated to accept ‘the way it works here’. They (with a few exceptions) have by then lost their interest, their energy, their belligerence to change or to drive change. Leadership is the only end responsible entity to address this and address this ruthlessly.

*: The Transformation Imperative Collaborative Leadership is Key For Future Success, John Matone

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6 key abilities• The ability to anticipate what can/will happen in the future (pro-active monitor what’s happening

around you, looking ahead, getting a sense of what is happening; prevent getting blind sided•• The ability to challenge - How to think strategically in an ever-changing environment; challenge

basic assumptions of their organization, their industry, of people around them•• The ability to interpret what’s happening – sophisticated pattern recognition, based on limited

information, connecting multiple dots, ambiguous information

• The ability to make tough decisions, e.g. quickly, with limited information, looking at a range of options to maintain flexibility to address complex problem, not just go/no-go decisions

• The ability to align people around a vision, a possible future (bridging conflicts, pulling it together to get a coherent team)

• Learning, Learning, Learning – from success and failure

Leadership styles

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http://www.realdrives.com/nl/

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BUILDING INNOVATION CAPABILITY

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Build CapabilityThis model asserts that innovation should not be the “domain of the few” but must be the “responsibility of the many.” The organization, and preferably a dedicated Innovation Center, provides the framework, tools, assets, and support to help the various parts of the organization drive awareness and engagement, develop innovation talent, and execute with excellence.

Developing capability across a complex is always challenging. You need to define a process/way of working to provide a consistent set of objectives that simultaneously allows organizations to deliver a localized innovation capability while building on a standardized set of capabilities.

One fundamental aspect to Building Capability in an organization is coaching. Any approach should include ‘Learning-by-doing’ programmes, a blend of self-guided e-learning for individuals, instructor-led virtual sessions for teams, and intense face-to-face workshops targeting leaders (Masterclasses).

Standard Tools & Processes. In moving from Pilot to Scale across an organization, an important focus will be to systematically document any processes and tools that accelerate deployment across the organization.

BuildCapability

Spread the word

Imagine the future

Build customer closeness

Spread the wordThis step recognizes that to propel a truly global innovation engine in an organization, you need everyone to get involved. Only by engaging the enable cultural transformation. Arrange of vehicles can be considered to Spread the word:

• an annual event• newsletters• targeted communications• recognition & video testimonials• innovation platform

An Annual Event enables high visibility of leadership commitment to the innovation strategy. This is a community building exercise. This is a typical setting involving internal and external leaders to share their views on innovation, both within as well as outside the company.

Complementary to the Annual Event, a Innovation Platform is the gathering of a high quality innovation community responsible for keeping the overall innovation process up to date through thought-provoking presentations from outside the company. Thus platform can get together on a higher frequency than the Annual Event, e.g. quarterly.

Recognition methods are a token of appreciation of the efforts of innovators and a signal to the broader population of the behaviours that are valued in the organization (creating the right culture).

BuildCapability

Spread the word

Imagine the future


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Imagine the futureImagine the Future is the engine that drives everything else. The organization needs to build a vehicle for ideators to gain visibility, receive feedback, and rally support for ideas. Their own initiative is essential. This emphasis on individual initiative is a critical departure from traditional suggestion systems in which people submit ideas and wait for “someone else” to act upon them. This vehicle needs to support individual initiative by providing ideators with a suite of video tutorials on how to strengthen their idea, build support, and move their idea toward implementation. Participation from other employees should be welcomed and enabled.

Apart from the initiatives from individuals, the organization can seek out Targeted Innovation Initiatives or Challenges, i.e. the organization sponsors an assignment to part of the company or a group of ideators, who then have a limited period of time to generate ideas and receive votes and comments. The sponsoring team evaluates the ideas and awards prizes or other recognition to the winners. Targeted campaigns tend to result in more strategically-aligned ideas than “anytime” submissions, and can be an effective way to draw attention to innovation as part of a larger engagement strategy.

Another tool is that of Incubation Support. In some cases, funding an idea is not enough. Innovators may lack the time or skills to push their own ideas forward to implementation. The Incubation Support team can then pick up assigned ideas and develop them further with the idea owner, thus preventing preventing innovation from being stifled by an inability to connect ideators with those who could execute on the ideas.

BuildCapability

Spread the word

Imagine the future


Build Customer ClosenessAlthough companies rely on input from their customer base, making Customer Closeness an integral part of then innovation strategy is essential to ensure the viability of the strategy. Connecting and co-creating with customers is key in maintaining an outside-in perspective and avoiding push approaches to innovation.In addition, Customer Closeness enables employees to maintain a level of open mindedness and a critical perspective on the deliverables of the company. This in turn drives a drive for excellence with the customer as the focus of attention, and not the organization. The basis is then high level innovation discussions with client companies.

BuildCapability

Spread the word

Imagine the future


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Top 10 Lessons from Startups

1. Start from scratch

2. Fund to scale3. Ask for help4. Export

5. Think Social

6. Think Big

7. Use Technology8. Promote from within9. Form Partnerships

10.Be fun

DESIGNING THE STRUCTURE FOR INNOVATION

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INNOVATION PORTFOLIO

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How to Win (Business/Tech Development)

Use existing product& assets

Add adjacent products and assets

Develop new productsand assets

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Enhancement projectsOptimizing existing productsfor existing customers

Platform projectsExpanding from existing business into “new to the company” business

Transformational projectsDeveloping breakthroughs andinventing things for markets that don’t yet exist

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H3

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How to Win (Business/Tech Development)

Use existing product& assets

Add adjacent products and assets

Develop new productsand assets

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10%Transformational

20%Adjacent

70%Core

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INNOVATION STRUCTURE & GOVERNANCE

Designing an organization structure

Micro

Macro

Individuals: Organizing via crowdsourcing for idea generation

Teams: Selecting the right teams structure for idea generation and implementation

Processes: Stage gate process at the project and organizational levels.

Organizational Structure: Designing an organization structure for innovation challenges

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Emerging End Equipment group supports disruptive technology innovation

History/Evolution of EEE• OST Process (Objectives, Strategies and Tactics) was a framework used throughout the company since 1950’s

• Process set major goals (Objectives), defined major milestones (Strategies) and outlined short term steps with resource allocation (Tactics) in the development of new products

• By 1990’s it was criticized for rigidity that did not promote disruptive technology innovation in the changing electronics industry environment

• TI wanted to employ a venture capitalist approach to concept evaluation where technical and market feasibility were concurrently important

• EEE group and process was crafted by 30 senior executives and external parties in 1997• Centralized group provided better emergent planning and business services targeted at developing disruptive

technology than previous OST process

Key Group Attributes

Group Name Emerging End Equipment (EEE), Established in 1997

Size 100 -125 FTE (~25 business analysts, ~75-100 engineers)

Charter Test marketability of new product concepts and instill venture capitalist discipline into idea screening

Goals • 3 new EEE startups per year• Increase retention of top TI engineers and technologists by incentivizing innovation

Tim

e

- Texas Instruments -

• Phase I: MAP (Market Assessment Process) Program• Phase II: Business planning & technological validation• Phase III: Startup funding

Services Offered• Proof of Concept analysis• Customer/Partner Discussions• Business Plan Development• Internal Board of Directors reviews

Key Business Analysis Enablers

Organizational Chart of Texas Instruments

EEE sits under DSP Systems Catalog* group because this area develops mass-market products instead of customized or specific application products


Greg DelagiSVP & GM

Wireless Terminals

Richard K. TempletonPresident, CEO

Melendy LovettSVP & President

Education Technology

Thomas J. EngibousChairman

Joe Rigazio, GM

Emerging End EquipmentDSP Systems Catalog*

Art GeorgeSVP High-Performance

Analog

*Catalog are products usable in multiple applications by multiple products. Other product lines are driven by customized orders or specific applications

Semiconductor Group96% Revenue ($13.7 B)

Mike HamesSVP Application Specific Products

Educational & Productivity Solutions4% Revenue ($525 M)

Kevin MarchSVP & CFO

Hans StorkSVP & CTO

FinanceR & D

TI Central Research

Matrix structure organization• Engineering teams are divided by product groups

(PG) under VP of BU• PGs are supported by cross-functional marketing

and finance teams

Marketing

Mark DenissenVP & Manager

Worldwide Strategic Marketing

(3 areas) Digital Signal Processor (DSP), Analog, Digital Light Processor (DLP)

Niels AnderskouvVP DSP Systems

IDEA Program

John Van ScoterSVP & GM

DLP Products

Finance and Marketing managers participate in screenings between phases and sit on internal Board of Directors for EEE projects

Dave HeacockSVP High-VolumeAnalog and Logic

Many EEE projects are handed off to this group

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While TI offers many different channels of funding and managerial support for innovators, EEE is the most BIS-like in nature

Culture: TI focuses on enabling technologists to become ‘intrapreneurs’ by providing different layers of support and incentives (e.g. Engineers with successful patent applications receive $1,000 bonuses)


New Product Development (NPD) Teams

IDEA Program

EEE Group

Core Innovation• NPD teams in each BU identify ‘creative

backlog’ and ‘technology roadmaps’ for product pipeline

• Projects are approved by Program Manager and developed by engineering team

• Formal NPD Process has 4 phases: Business, Creation, Validation, Ramp Activities

Disruptive Innovation• EEE analyzes market and competitive landscape with

a VC approach to idea screening• Technical feasibility and business planning is

conducted in ‘Incubation Phase’ and spun off as group to VP with startup funding

Edge Innovation• IDEA Program provides no-strings-

attached seed funding ($50K)for innovators

• Focus: To improve and extend existing product lines

• Size: 3 -5 FTE conduct high-level market analysis to test viability

• Selection criteria is low: 75% of 40 submissions per year get funded

Overall Innovation Vehicles

“I felt very well-supported and encouraged by the managers to develop my ideas. Metrics drive behaviors at any company, and TI understands how to do this.

- Former Engineering Manager, Manufacturing Division

Recognition of top technologists: ‘TI Fellows’ are nominated by peers and management and represent top .1% of engineers. They have same status as VP on technical staff

Innovation

Innovation Network

Innovation Culture

Innovation Funnel

Product Innovation

Operational Excellence

Devops Continuous Improvement

Existing Product

Enhancement

New Bank Products

Internal Startups

Solution ChallengesAcceleration Masterclasses

External Venturing

Emerging Technology

Implements Implements BuildsBuildsFeeds into Converts to

Horizon 2 Feeds

Executes Executes Initiates

Presents

Produces

Prototypes for

Customer Discovery for

Idea Development

Started through

Innovation

Product

CI / Operations

Horizon 1 Feeds

Bootcamps

Feeds into Executes

Innovation Blog

Publishes

Digital / Marketing / Comms

Pitch Days

Participates in

Special Purpose Vehicles

generates

Governance / Legal

Remuneration & Reward

HR

Building for the Future

Global Moonshot Campaign

Go for IT Day

Global Innovation

Farm2Fork

Global initiative

Emerging AgriTech

Days

Localinitiative

Strategic Relationships

Innoleaps

Startup Bootcamp

Stone and Chalk

Universities

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INNOVATION PROCESS / WAY OF WORKING

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Business Creation

Consumer and Market

Intel

Business Programming

Strategy Management review

Value Propositionand Function

Creation

IntegreatedProduct

Development

Local Market Activation

Business Realization

Consumer Care Realization

Supply Chain Management

Sales

Cus

tom

er &

Con

sum

er

Safety Operations HRM Sustainability

F&A

Regulatory Project Management Procurement CRM Legal

Compliance Quality Assurance Design Digital Marketing

Information Services

Cus

tom

er, C

onsu

mer

, Mar

ket

and

Supp

lier

Envi

ronm

ent

Innovation Board

Strategic Market Plan (PMF)Process Overview

UpdatePL Execution Plans

4.

Product Line Launch Plan (linked to Sector Brand Launch Plan)

Floor care & Small appliances 2009 2010 2011 2012 2013 2014 2015Group Project name Key driving region Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3

DryEureka Jumpstart North America22xx Facelift EuropeWoofer PD EuropePriscilla EuropeE5 Mimas EuropeBubble follower EuropeCanister design bagless EuropeGALAXY 2 - bagless Europe23 Super Compact (IDC) EuropeMiranda EuropeGALAXY 1 - bagged EuropeFeather duster on board EuropeEureka UK Albion Facelift North America44B Series Follower (OTS) EuropeCyclonic Miranda EuropeFeather duster on board - Bagless Europe72 Series Follower (OTS) EuropeFutura Europe99 Euro Bagless Price Fighter EuropeNew low end bagged Essential EuropeFutura EuropeBeyond Silence Europe36 Pluto Follower CO Europe12 Series Follower (OTS) Europe72 Sherpa follower EuropeErgospace Replacer EuropeMaximus Replacer EuropeUltraFree Europe

GreenMimas Green EuropePriscilla Green EuropeUltrasaver Europe

WetICE Europe

CP3

CP3

CP3

CP3

CP3

CP3

CP3

CP3

CP3

CP3

CP3

CP3

CP3

CP3

CPCD

CPCD

CP3

CP3

CP3

CPCD

Consumer Opportunity Concept Development Primary Development

Product Development Commercial Launch Completed PD

Sector : Floor care & Small appliances

Product line : Floor care & Small appliances

Product group : DR - Full size

Region : Europe

Generation Plan

2011 2012 2013 2014

Define PL Aspirationsand Strategic Roadmap

3.

Product Line Vision and Targets, including:

• Volumes, NS• Market Shares (value, volume)• GP / EBIT• CAPEX• Product mix

Strategic Roadmap How to reach targets

• Priorities and initiatives for the product line short- and long term

Understand Market Dynamics and PL Position

2.

Industry Lens

Pric

e po

ints

Product typology

Macro, Category, andTechnology Trends

Consumer Lens

0

5

10

15

20

25

30

6.00

am

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am

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am

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0 am

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Four steps to develop the Strategic Market Plan

Collect Strategic, Brand and Other XPL Input

1.

Strategic Input• Corporate Strategy (e.g.

Premium & Mass Strategy): • Sector Strategy (e.g. Sector

Vision and Targets)• Brand Strategy: Brand Portfolio,

Brand Identity

Brand Input• Brand Value Proposition• Brand Roadmap• Brand Launch Plan for next 10

years

Other Input• Segmentation• COA• Design Trends

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LEAN STARTUP TOOL-SET

Lean Start-up MVPValue Proposition Canvas

Teamcomposition

CustomerDevelopment

Expert mentoring

PitchingOnline collaborationand e-learning tools

Growth hacking

Business model prototyping

Start-up tools for an Accelerator for Corporates

ExperimentDesign

StakeholderManagement

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Eric Ries (2011), The Lean Startup

“The only way to win is to iterate faster than the competition!”

culture ofrapid experimentation &iteration

Learn

Measure

Build

Customerdiscovery

Pivot

Search Execution

Analysis

RequirementSpecification

Design

Development

Testing and Integration

Implementation/ Deployment

Learn

Measure

Build

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Business Model

Value Proposition

&

Business Model Prototyping

=

Elaborate planningIntuitionBig design up frontInside the buildingLooking for successWanting confirmationWithin budgetAssumptionsWithin time frame

Traditional vs. Lean Start-up

ExperimentationCustomer FeedbackIterative DesignOutside the buildingLooking for failureAbout being rightBudget?!?FactsAs quick as possible

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Lean & Agile

A fundamentally different mindsettowards value creation

Inspirational Reading

Zero Marginal Cost, Jeremy Rifkind

Exponential Organisations, Salim Ismail, Yuri van Geest, Michael S. Malone

The Brain and Emotional Intelligence: New Insights, Daniel Goleman

Lean Startup, Eric Ries

The Innovator’s Dilemma, Clayton Christensen

The Innovator’s Manifesto, Michael E. Raynor

Drive, Daniel H. Pink

Zero to One, Peter Thiel

Creativity Inc., Ed Catmull

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[email protected]+31(0)639209255

Ubs leadership in business development 11 16kort

Education

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