Innovation: End-to-End

Stages and Programs

Israel Vicars

Tilling

• Igniting innovation– Introduce Context• Corporate innovation group• Shared definitions of entrepreneurship and innovation

– Create Motivation• Value proposition for participants• Expressed buy-in from leadership

– Establish Community• Gather the entrepreneurs• Provide a forum and meeting place

2 Stage I

Tilling

• Stage I Programs– Marketing

• Email campaign• Intrapreneur networking events• Online engagement

– Education• Business Fundamentals

– Overview of business fundamentals for non-business types– Resource: Crossing the Chasm, by Geoffrey Moore; Custom materials

covering basic finance, strategy, and marketing

• Pitch Training– Components of the business hypothesis that make up an idea and how to

quickly pitch an idea in a meaningful way– Resource: Art of the Start, by Guy Kawasaki

3 Stage I

Soil

• What will be the sources of innovation?– Industry changes

• Inefficiency looking for a solution• Opportunity from upheaval• Leveraging the latest technologies

– Market changes• Shifting demographics• New consumer habits and desires

• Leveraging company resources and competencies– Within divisions– Across divisions– Beyond divisions

4 Stage II

Soil

• Stage II Programs– Education• Sources of Innovation

– Identifying the industry and market changes that can be the impetus for innovations

– Resource: Entrepreneurship and Innovation, by Peter F. Drucker

• Business Model Analysis– Expose the immediate opportunities within the family of

companies– Resource: Business Model Generation, by Alexander

Osterwalder and Yves Pigneur

5 Stage II

Seeds

• Collect ideas– Quarterly Outreach Program (Stage III Program)

• Evaluate ideas– Completeness

• What is the product/service? • Who is the user? • Why do they want the product/service? • How does the business make money?

– Potential• Long term profitability• Scalability6 Stage III

Nurture

• Expand and revise ideas– Work with Program Champions to “flesh out” ideas

• “Pre-market” market research = community research• Technology features User benefits• Best position in value chain

• Assess need for mock-up– Useful for communicating product concept during

early market research– May be the best way to encapsulate the idea (e.g.

Twitter)

7 Stage IV

Nurture

• Stage IV Programs– Education

• Idea expansion– Expanding and evaluating an idea to create a robust business

hypothesis that addresses issues surrounding the customer, technology, and business model

– Resources: Mind-mapping software; Managing Intellectual Capital, by David J. Teece; The Inmates are Running the Asylum, by Alan Cooper

– Development• Mock-up production

– Provide resources for the development of early stage product concepts

8 Stage IV

Prune

• How do we assess ideas?– Micro-market outlook• What is size and behavior of target market?

– Macro-market outlook• Is broader market growing or shrinking?

– Appropriability of industry– Team• Fitness of team to tasks• Gaps in team’s skill sets, resources

9 Stage V

Prune

• Stage V Program– Education• Opportunity Assessment

• Testing a business idea for the most common opportunity-related reasons for failure: market reasons, industry reasons, and entrepreneurial team reasons

• Resource: The New Business Road Test, by John Mullins

10 Stage V

Grow

• Prepare the business plan– Internal and external experts advise on key subject

areas– Corporate innovation group works closely with

Program Champion through completion• Upgrade mock-up to beta version (if

applicable)• Recruit potential team members

11 Stage VI

Grow

• Stage VI Program– Development• Beta-version production

– Provide resources for development of beta version

• Business Plan Consultants– Organize community of internal and external experts who can

advise on all subject areas of the business plan

12 Stage VI

Produce

• Launch the business• Manage its growth• Guide to profitability• Increase autonomy with success

13 Stage VII

Harvest

• Outcomes– New Revenue• Liquidation• Standalone Division

– Increased dynamic capability• Employees’ sense of empowerment• Employees’ ability to recognize and seize new

opportunities

14 Stage VIII