FALL 2013 Class Summary

December,  2013  

•  Course Overview •  Ten Frameworks we learned •  Assignments

2

The Outcome of R&D Proprietary means to a useful human purpose

Technology

The Diffusion of Technology The use of resources and processes to diffuse inventions

Innovation

Maximizing Value The use of strategy and tactics to maximize the value of innovation

Strategy

Case Studies Startups, Large Companies, & Research Institutions

Field Study Profiling a local startup, its innovation and its processes

Group Proj Developing a commercialization strategy for an early stage tech.

Supplements Class discussions, Prof. Blog, LinkedIn group

TEACHING METHODS

3

•  New Products (Features)

•  New Services

•  New Businesses

Research

Invent

Standardize

Patent

Commercialize:

Technology Innovation Curve, e.g. Qualcomm

LAB MARKET

b  

Newness / Risk of Market +

+

Unknown

Newness/Risk of Technology

Known

Known

Unknown Most VC Backed Startups

Most Angel Backed Startups

Most Lifestyle Businesses

Where Eagles Dare (For Visionaries Only)

New Businesses Existing Businesses

Profit & Growth

Mergers & Acquisitions Organic Development

7

Think  about  op7ons  theory  (Black  Scholes)  •     Intrinsic  value  •     Time  value  (Longevity,  Vola7lity)    

Unknown  Large  Opp’t  

LiHle    Compe77on  

Known  Large  Opp’t  

Lots  of  Compe77on  

Me  Too  

Contrarian   What  the?  

Fairy  Tale  

© provenmodels

based on: the Innovator's dilemma by Clayton M. Christensen and the innovators solution by Clayton M. Christensen and Michael E. Raynor

diffe

rent

mea

sure

of p

erfo

rman

ce

time

perf

orm

ance

time new market disruption compete against nonconsumption

low end disruption adressing overserved customers with a low cost business model

sustaining technology bringing a better product into an established market

most demanding customers least demanding customers

Leadership Alignment

Innovation Strategy

Organizational Design

Innovation Process

Agile Enterprise

9  

Determine  your  compe77ve  domain  &  generate  a  

porSolio  of  growth  op7ons    

Redesign  for  innova7on  incl.  structures,  incen7ves,  and  

resource  alloca7on  

Commit  to  agile  strategy,  organiza7onal  redesign  &  

lean  processes  

Manage  idea  flow  and  interfaces;  apply  lean  methods  &  tools  

Why?  

What?   Who?  

How?  

•  Product architecture (Modular Design) •  New Business launch pads (Growth Platforms

or ‘Franchises’) •  Industry Platforms (Essential, Ecosystem

Dependent Networks)

Customer  Valida7on  

Customer  Discovery  

Customer  Development    

Product  Development  

Market  Research  

The  Customer  Development  Way  Tradi6onal  New  Venture  Launch  

We’re  now  giving  the  market  what  it  wants  

SOLUTION  

PERCEIVED  PROBLEM   Customer  

Crea7on  

We  thought  this  was  right,  but  we  were  guessing  

Company  Building  

Sales  &  Biz  Dev  

Product  Development  

Analysis,    Forecas7ng  

 &  Debate  

A  dialogue  approach  to  finding  a  product/market  fit  

13

Strategy  Theme  (Vision)  

Strategic  Choice  Canvas:    (make  specific  to  your  industry)    

1.  Company  Building  Intent  

2.  Business  Model  Type  

3.  Value  Integra7on  

4.  Ver7cal  Specializa7on  

5.  Compe77ve  Posi7oning  

6.  Product  Scope  

 <Plan  A>    <Plan  B>    <Plan  C>  

 Early  Exit      Niche  Player      Large  Company      

 OEM    Components    Consumables    Sodware    Services    IP    MS-­‐PlaSorm  

 Degree  of  Value  Chain  Integra7on  &  Control    

 Degree  of  Ver7cal  Market  Specializa7on    

 Disrup7ve  Innovator      Leapfrog  Innovator      Fast  Follower        

 Single  vs.  Mul7ple  Offerings      Breath  &  Depth  of  Features      Source  of  Novelty      

Intro to Primary Research Finding and reviewing founders of an innovative startup

Original Product Nature of Innovation

14

Impact on Society Creative Business Model

Students’ reflections on what makes a startup innovative varied widely

Founder’s Attitude & Approach Company Culture

Founder Interviews

Expert Interviews

Customer Interviews

Understand problem, company’s solution and competitive environment first hand

Primary Research

15

Strategic Analysis

Provide recommendations based on insight and analysis of research conducted in the market

Proprietary technology helps but it is not sufficient for establishing a winning business

Major Takeaways

Feasibility

Desirability Viability

Innova=on