Lean Innovation Lean Innovation

© Tucker J. Marion 2015

Lean Start-up Lean Start-up Methods Methods

Lean Lean ManufacturingManufacturing

• Quick to prototype

• Rapid testing, iteration, and validation cycles

• Incremental investment

• Reduced waste and inefficiencies

• Reduced bureaucracy

• Improved development cycle time

Design Design ThinkingThinking

• Deep understanding of the opportunity

New Venture vs. EstablishedNew Venture vs. Established

© Tucker J. Marion 2015

Model S Panamera

• No. of employees: 5,800• Est. development cost: <$500M• Time-to-market: ~ 3 years• U.S. monthly sales, ‘15: ~2,000 est.

• No. of employees: 17,500• Est. development cost: $1B• Time-to-market: > 5 years• U.S. monthly sales, ‘15: ~500

Beyond the Traditional ProductBeyond the Traditional Product

© Tucker J. Marion 2015Service and business model innovation too!Service and business model innovation too!

Supercharging Stations

Company Owned Dealers

The Importance of the Beta…The Importance of the Beta…

© Tucker J. Marion 2015Low volume technology beta (batteries, SW)Low volume technology beta (batteries, SW)

The Path to ValidationThe Path to Validation

© Tucker J. Marion 2015

Chassis: LotusBatteries: Panasonic

Lead Partner: Daimler

Critical alliances and partnersCritical alliances and partners

© Tucker J. Marion 2015

The Minimally Viable Product (M.V.P.)The Minimally Viable Product (M.V.P.)

• How can you best create a viable, saleable prototype?How can you best create a viable, saleable prototype?

PROTOTYPE Test and Validate

Iterate and Refine

Low-cost, lower risk learning cyclesLow-cost, lower risk learning cyclesThe term M.V.P. is courtesy of the work of Steve Blank (steveblank.com)

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Functionality is key!Functionality is key!© Tucker J. Marion 2015

© Tucker J. Marion 2015

The Road to M.V.P.The Road to M.V.P.

• Who do you need on your team?Who do you need on your team?

Internal Resources External Resources

• Founding Team• Board Members• Mentors

• Service Providers• Alliance Partners• Freelancers

9© Tucker J. Marion 2015

• The most successful new ventures use this The most successful new ventures use this approach…approach…

Marion, T., Dunlap, D., & Friar, J. (2012). Instilling the Entrepreneurial Spirit in Your R&D Team: What Large Firms Can Learn from Successful Start-ups. Engineering Management, IEEE Transactions on, 59(2), 323-337.

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Hyper-agile and functional TeamsHyper-agile and functional Teams

© Tucker J. Marion 2015

Marion, T., Dunlap, D., & Friar, J. (2012). Instilling the Entrepreneurial Spirit in Your R&D Team: What Large Firms Can Learn from Successful Start-ups. Engineering Management, IEEE Transactions on, 59(2), 323-337.

© Tucker J. Marion 2015

Consistent, Hyper-Agile Team

Opportunity Assessment

Fast Concept

Resource Allocation

Validation Planning

Small, Incremental Investment

• What is the opportunity?

• Does it tap new markets and customers?

• Does it include new business model and service innovation?

• Is it scalable?

Test and Assess

• Can you rapidly develop a prototype or test case?

• If so, how? • List steps and

what tasks are needed…

• What internal or external resources can you use to develop and test the prototype?

• Who do you need to hire/partner?

• How much ($$$)?

• What B2B partners are needed?

• How will you validate the concept?

• How many test cases will be needed?

• Who can be the lead customer?

Lean Innovation Framework