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Corporate Innovation Developing a lean & curious culture
Michel Duchateau #miduchateau
#miduchateau
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Entrepreneur, trainer & coach • Project Management, Innovation & Entrepreneurship • Startup coach • Hackathon for corporates
Co-‐‑Founder
• Consultancy in governance and management • Agile organisations
Hi, I am Michel !
Welcome #miduchateau
Fond of startups Global Facilitator Startup Weekend Europe
• 15+ Startup Weekend in Brussels, Liège, Leuven, Ghent, Antwerp, Lille, Paris… • Startup Weekend EU Organizer Summit – Teneriffe 2013 • Startup Weekend Global Organizer Summit – La Vegas 2014 • Startup Weekend Belgian Summit – Brussels 2014
Collaborations : Microsoft Innovation Center Brussels, impulse.brussels, Microsoft, Solvay Brussels School, Technofutur TIC, Solvay Entrepreneurs, ICHEC Entreprises, EFPME, Betacowork, Les Jeunes Entreprises, IFAPME, Azimut, SkillsBelgium, JADE, Faculté des Sciences Appliquées de l’ULB, Convidencia, StarTech, WeStartup…
#miduchateau
• 100 entrepreneurs create startups in 54h • They practice lean & agile, networking • Non-‐‑profit association active in 800 cities : 15 SW/week
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WHY ARE YOU HERE ? You are just enthusiastic
You want to meet other enthusiasts
You want to be inspired
You want to contribute
Speakers
Michel Duchateau Coach in Innovation
CreaDelta
Olivier Peeters Fostering Innovation @ Home for Innovation BNP Paribas Fortis
Mabeo Gaba Director Technology Strategy & Innovation
Proximus
Grégory Custinne Software Analyst Expert
Océ Software Laboratories, Canon
Wim Decraene Managing Director Accenture Digital Accenture BeLux
Corporate Innovation
• Why ? • When ? • How ?
Corporate or Startup ? • A company is a permanent organization designed
to execute a repeatable and scalable business model.
Corporate or Startup ? • A company is a permanent organization designed
to execute a repeatable and scalable business model.
• A startup is a temporary organization designed to search for a repeatable and scalable business model.
Steve Blank
Corporate need innovation
• “Our management structure has so many financial, legal and HR hurdles that every initiative needs to match our existing business financial metrics, processes and procedures.”
Corporate need innovation
• “Our management structure has so many financial, legal and HR hurdles that every initiative needs to match our existing business financial metrics, processes and procedures.”
• “More agile competitors are starting to eat into our business.“
• “Some of them are startups!”
• “Our founders built a company known for taking risks and moving fast.”
Steve Blank’s blog, 11.03.2015
Company Lifecycle Ichak Adizes’ model
paEi
Paei
PaEi
pAEi
PAEi
PAeI
pA_I
_A_I
_A__
____
P : Production A : Administration E : Entrepreneurship I : Integration
Source : hbp://www.adizes.com/lifecycle/
The 30 key obstacles to innovation
Lack of a shared vision, purpose and/
or strategy Short-‐‑term thinking/
focus Lack of time,
resources or staff Lack of “spec time” to develop new ideas and opportunities
Innovation not articulated as a company-‐‑wide commitment
Lack of ownership by senior leaders
Leadership expects payoff sooner than is
realistic Lack of a systematic innovation process
Management incentives are not
structured to reward innovation
No reward and recognition program
Constantly shifting priorities
Belief that innovation is
inherently risky
Lack of systematic innovation process
Internal process focus rather than external customer
focus
Inadequate understanding of
customers
Focus on successes of the past rather than the challenges
of the future
Unwillingness to change in the
absence of a burning platform
Unwillingness to acknowledge and learn from past
“failures”
Politics – efforts to sustain the status quo to support
entrenched interests
Rewarding crisis management rather
than crisis prevention
Hierarchy – over-‐‑management and
review of new ideas Micromanagement
Under-‐‑funding of new ideas in the
name of sustaining current efforts
Fear that criticizing current practices and commitments is a high-‐‑risk activity
Risk aversion Addiction to left-‐‑brained, analytical
thinking
Absence of user-‐‑friendly idea management processes
Innovation not part of the performance review process
Lack of skillful brainstorm facilitation
No creative thinking training
Source : h*p://www.torbenrick.eu/blog/strategy/30-‐‑key-‐‑obstacles-‐‑to-‐‑innovation/
The Top 5 key obstacles to innovation
Belief that innovation is inherently risky, fear to fail
No time, resources or staff
Innovation not in the strategy
No systematic innovation process
No reward and recognition program
« Lean culture » ? ü Startups thrive in extreme uncertainty.
ü The future is unpredictable, customers face a growing array of alternatives, and the pace of change is ever increasing.
ü Startups do not use standard forecasts, product milestones, and detailed business plans
ü In a large company “fear of failure” inhibits speed and risk taking while in a startup “fear of failure” drives speed and urgency
#Effectuation #IterativeApproach #CustomerDevelopment #DesignThinking #BusinessModelGeneration #ValuePropositionDesign
Lean Startup is a movement
It is a state of mind to have when you want to create an innovative company, or when you want to put innovation in an existing business.
• Not a method • Not a software
development framework
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#miduchateau
From Lean to Lean Startup
T
2010 : « Business Model Generation » A. Osterwalder, Y. Pigneur, A. Smith
2011 : « The Lean Startup », Eric Ries
1988 : « Triumph of the Lean Production System », J. Krafcik
1996 : « Lean Thinking », J. P. Womack, D. T. Jones
1990 : « The Machine That Changed The World », J. P. Womack, D. T. Jones & D. Roos
1911 : « Principles of Scientific Management », Taylor
1936 : « Kaizen », Toyota
2005 : « The Four Steps to the Epiphany » S. Blank
Mar 2012 : "ʺThe Startup Owner'ʹs Manual"ʺ, Steve Blank
2003 : « Lean Software Development», M. Poppendieck
Mar 2012 : « Running Lean: Iterate from Plan A to a Plan That Works » A. Maurya
1936-‐‑1980 : Toyota Production System
2010 : « The Entrepreneur'ʹs Guide to Customer Development », B. Cooper, P. Vlaskovits
Aug 2012 : « Value Proposition Canvas » A. Osterwalder, Y. Pigneur, A. Smith
Sep 2013 : «Lean Entrepreneur:» B. Cooper, P. Vlaskovits
Customer Development Product Development Business Model
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#miduchateau
Sep 2014 : «Value Proposition Design:» A. Osterwalder, Y. Pigneur
Build-‐‑Measure-‐‑Learn This basic process is to iterate between 3 steps based on prototyping the Product (or service) with an empirical approach.
Build
Measure
Learn
✚ ✚ ✚ Code n
n n Data
¢ ¢ ¢
Ideas
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#miduchateau
Lean Startup
Business
Mod
el Product Development
Customer Development
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#miduchateau
Lean Startup
Business
Mod
el Product Development
Customer Development
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#miduchateau
Timeline of a lean startup
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T Business
Model Product Customer
V1
Pitch1
Interview1
V2
Pitch2 + Landing Page
Interview2
V3
Pitch3 + Landing Page2 + Prototype
Interview3 + Sales
J J+2 J+8
#miduchateau
Get out of the building !
Iterations: learning by doing
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T
J J+2 J+8
#miduchateau
Product Market fit
Business Plan
SCALE ✔ ✔ …
Methods : Business Model Generation, Design Thinking, Lean Startup, Customer Development, Agile methods
Ex : Auchan, Orange, Groupon, Google, General Electric, Qualcomm, Intuit, TheSmartCompany, Data.be
Fail fast !
Lean VS Traditional
Source : h*ps://hbr.org/2013/05/why-‐‑the-‐‑lean-‐‑start-‐‑up-‐‑changes-‐‑everything
STRATEGY
NEW-‐‑PRODUCT PROCESS
NEW-‐‑PRODUCT PROCESS
• Business Model • Hypothesis-‐‑driven
• Business Plan • Implementation-‐‑driven
• Customer Development • Get out of the office and test hypotheses
• Product Management • Prepare offering for market following a linear, step-‐‑by-‐‑step plan
• Agile Development • Build the product iteratively and incrementally
• Agile or Waterfall Development • Build the product iteratively, or fully specify the product before building it
LEAN TRADITIONAL
Lean VS Traditional
Source : h*ps://hbr.org/2013/05/why-‐‑the-‐‑lean-‐‑start-‐‑up-‐‑changes-‐‑everything
ORGANIZATION
FINANCIAL REPORTING
SPEED
FAILURE
• Customer and Agile Development
• Teams Hire for learning, nimbleness, and speed
• Departments by Function • Hire for experience and ability to execute
• Metrics That Maber • Customer acquisition cost, lifetime customer value, churn, viralness
• Accounting • Income statement, balance sheet, cash flow statement
• Expected • Fix by iterating on ideas and pivoting away from ones that don’t work
• Exception • Fix by firing executives
• Rapid • Operates on good-‐‑enough data
• Measured • Operates on complete data
LEAN TRADITIONAL
So what ?
Lessons learned • Accepting failure and running at speed are part of an
innovation culture. • We need to separate out innovation risks from execution risks. • There are now methodologies and best practices that we can
use to build an innovation culture. • We need to make sure that management no longer uses
execution metrics to manage and judge our innovation teams.
Culture of performance
Culture of innovation
A lean & curious culture
Enable
• Contact with reality
• Experimentation • Prototyping • Emancipation of team members
Outcome
• Explore new territories
• Quickly test hypothesizes
• Open and close doors
• Develop Intrapreneurship : to transform an idea into a profitable venture, while operating within the organizational environment.
Open & Collaborative Innovation ?
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Problem solving
Problem solving
Internal
External
‘Beta tes5ng’ and ge8ng feedback
‘Beta tes5ng’ and ge8ng feedback
APIs
Open API / Open Data
Spin-‐Offs / Licensing
Corporate investment fund
Intrapreneurship Program & hackathon
Partnership program with start-‐ups and entrepreneurs
Employees, internal data, any collaborator, internal resources…
Startups, customers, suppliers, partners, universi7es, compe7tors…
Idea contest
Idea contest
Source : hbp://bluenove.com
Open & Collaborative Innovation ?
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Problem solving
Problem solving
Internal
External
‘Beta tes5ng’ and ge8ng feedback
‘Beta tes5ng’ and ge8ng feedback
APIs
Open API / Open Data
Spin-‐Offs / Licensing
Corporate investment fund
Intrapreneurship Program & hackathon
Partnership program with start-‐ups and entrepreneurs
Employees, internal data, any collaborator, internal resources…
Startups, customers, suppliers, partners, universi7es, compe7tors…
Idea contest
Idea contest
Source : hbp://bluenove.com
Innovation hackathon
2-days workshop where :
o Participants turn their ideas into real bootstrapping projects
o They deliver concrete results in a positive competition mindset
o Based on action, prototyping & customer
validation
= “Sprint” , “bootcamp”, “innovation workshop” , …
2-‐‑days workshop where
How does it work ?
Pitch ideas
Vote
Form teams
Teamwork
Presentation
-‐‑ results -‐‑ budget -‐‑ action plan
2 days
Technical, Business or both
Participants • Employees, managers, directors
• They validate their assumptions with real customers like entrepreneurs
Coca-‐‑Cola Global
� Co-‐‑create the new packaging of the future products � 1st event with Marketing, R&D, Sales & Designers from 4 continents
� 40 participants, multidisciplinary teams � 5 innovative projects
CreaDelta.be 35
Coca-‐‑Cola Global
� Business Models + prototypes of new packaging
� Validated with customers in the street!
� Jury amazed by quality!
� 2 projects have been continued
Groupe Auchan : Creative Abitude
“Daring, entrepreneurship & innovation” A cross-functional recurrent innovation program where employees can :
o suggest an improvement plan within their existing business line
o create a new activity via a call for projects
Employees implement their own projects. They become “CréActeurs” [‘CreActors’] and participate to trips in San Francisco or Amsterdam.
CreaDelta.be 37
� 45 participants (employees, managers & directors)
� Participants can access ANY business information of the entire Group in real time.
� Directors authorized participants to by-‐‑pass processes. � 7 innovative Business Models + go-‐‑to-‐‑market strategies
� Budget for pilot validated by the Jury!
Groupe Auchan
Outcomes • Validated Business Model • Running prototype • Go-to-market strategy • Implementation plan • Bullet-proof business case • Presentation useable in steering committee
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What they say
• We delivered in 2 days what we usually do in 4 months
• We experienced methods & tools that we can implement in our team tomorrow
• This is a must-have for training employees
• This is a profitable team building !
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1 step further
Trends 2015
• Hackerspaces, Innovation Labs, Fablabs • Coworking, couveuses, pépinières • Incubators, accelerators • Barcamps, Unconferences, World Café • Continuous Innovation, disruptive innovation • Crowdsourcing, crowdfunding • Open data, Big data, Internet Of Things
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2 steps further
Break the Company Lifecycle
Ichak Adizes’ model
paEi
Paei
PaEi
pAEi
PAEi
PAeI
pA_I
_A_I
_A__
____
P : Production A : Administration E : Entrepreneurship I : Integration
Source : hbp://www.adizes.com/lifecycle/
PAEI
Enable Cooperation Hard Rational Methods Practices Tools
Soft Communication Collaboration Participation Cooperation Network Empowerment
Management & leadership • Participative Dynamics • Participative Management • ParticipAgile Methods
Organization & Governance • Adhocraty • Dynamic Governance • Sociocracy • Holacracy • ParticipAgile
