CSSI - Corporate Innovation Workshop - Summary

Workshop Summary | Corporate Startup Summit International

© 2016 itheca Group, Pragmatic Solutions 2016-04 - CSSI Workshop - Summary - 1-1.docx | Version 2016-05-15 | 1

Introduction

Innovation practices all aim for one superior goal: establishing a profitable, repeatable and scalable business model. In other words: capturing value with an accepted solution to a problem worth solving within the given restrictions.

Unfortunately, there is no «one-size-fits-it-all» set of practices for successful innovation. Innovation activities come in different flavors. Sometimes innovation comes from within a line-of-business, sometimes from a dedicated team or organizational unit. In some cases, innovation aims for disruption, a new model, or it simply exploits efficiency potential.

But innovation practices also attend to stakeholder interests. While some practices try to increase the sponsor’s control over innovation activities in order to reduce the sponsor’s perception of risk, other practices address the innovator’s need for maximum freedom of discretion and self-determination in order to cope with the innovation challenge.

In our workshop at the Corporate Startup Summit International in Zurich (April 27-28, 2016), we invited the attendees to collect, share and discuss practices which foster successful (corporate) innovation. Due to the expected number of workshop participants, we organized the collection in eight different stations, each equipped with a large Moving Wall. The subjects were derived from our Corporate Innovation Framework, a framework to successfully set-up, organize, lead and govern corporate innovation:

Corporate Innovation Framework © itheca Group

In this document, you will find the workshop results we collected with the help from our facilitators from itheca Group and Pragmatic Solutions.

Organizational Model& Governance

Approach & Culture

FundingCorporate Innovation

Access &Resourcing

http://bit.ly/1WJR9An

http://bit.ly/1TRd2LF

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http://bit.ly/21ZsTLz






Corporate Innovation Framework domain: Organizational Model






Corporate Innovation Framework domain: Governance






Corporate Innovation Framework domain: Funding






Corporate Innovation Framework domain: Resourcing






Corporate Innovation Framework domain: Collaboration with Marketing & Sales






Corporate Innovation Framework domain: Collaboration with corporate services






Corporate Innovation Framework domain: Approaches, methodologies, principles






Corporate Innovation Framework domain: Culture






Corporate Innovation Framework domain: Organizational Model

Approach/ Measure/ Principle Goal

Dos Don’ts

1. In this example in Israel was innovation fully embedded in the line organization and supported by a risk taking leadership

H=10%/V=20%

Good leadership creates the right culture and establishes an organization, which allows to innovate as a natural process of doing business.







Dos Don’ts

2. This company enabled radical/disruptive innovation with high risk in an outside incubator of a group company.

H=95%/V=85% (at group company) H=5%/V=5% (at Headquarters)

This worked and was so successful, that the HQ brought the key person to the HQ in order to repeat it there.

After this key person arrived at the HQ the stable but slow organization rejected the radical innovation: You can not implant successful concepts from other places without facing side effects.

3. F10 Incubator from SIX. This company choose to set the incubator outside of the traditional organizational structure.

H=90%/V=90%

Give freedom, budget and time.

Use this setup for radical innovation (and not for operations).

4. Experience: This company choose to establish a semi-autonomous organizational approach. The approach failed after they could not deliver results and was given up.

H=Horizontal: 50%/V=Vertical: 50%

Use existing experience and reputation even if setup is not optimal.

Knowing the power and incentive system or the help of the top management can help.

Use the existing freedoms of the setup, take risks and market your progress.

Don’t try to merge corporate culture & innovation, if it is a bad compromise, which wants to please everybody.

The MbO system killed the this approach, because they silos had different incentive systems, which prevented needed collaboration.

Sponsor had final say over Innovator.

Placement: V=Vertical 0%= full Sponsor / 100%= full Innovator H=Horizontal 0%=Fully integrated / 100%= totally autonomous






Corporate Innovation Framework domain: Governance


Dos Don’ts

Steering board (member of Executive board) is accountable for sponsoring, guiding the innovation in the corporation

Controlling of innovation portfolio with one metric: traction control

Build up internal & external (Lab) Innovation teams: Internal for strategic and process innovation projects, External for Product or Service-Projects

Focus on collaboration between teams. Agile Development in X-functional teams is much better than in hierarchical, project-based teams.

Make sure that not always the same people are working on Innovation projects. Better to ensure the ‘right’ people.

Some projects are IT dominated – don’t forget the business people







Dos Don’ts

It’s not clear to measure traction over different projects. Each project has it’s own KPI. How compare different projects?

Build up a platform for innovation – everybody can be part of this platform

Open for all, better collaboration, the democratic way






Corporate Innovation Framework domain: Funding


Dos Don’ts

Time budget for quarterly quality circles

Goal: To elaborate new services driven by internal quality circles which are held in collaboration of different business units

Works well for generating new ideas, for keeping cost under control, for being effective and for supporting alignment

Works only if team member stay motivated and therefor engaged. No motivation à money is lost

3-min. Pitch (new, strategic fit, solving a customer problem), 3 months 20%, up to KCHF 30, Boot camp

Goal: To generate new revenues à new products and services

Works well for hands on and focused prototyping, pivoting and getting customer feedback

Decision making (evaluation and selection from project lists without numbers) is difficult

Project funding with sponsor

Goal: To benefit from project methodologies by managing focus, resources and outcome (deliverables)

Works well for risk management and from an accountable perspective

Project start is quite unpredictable because sponsor involvement is needed first

New external start-up with new team

Goal: Value based business and corporate development with “no silos”

Works well for cost control and for getting into seed money

Death Valley after seed phase slows down time to market






Corporate Innovation Framework domain: Resourcing


Dos Don’ts

Have people to apply for innovation jobs

Goal: Get enough of the right resource

Placement: V–80% /H-50%

People need safety

People need to get returns

Uncertainty regarding future carrier

Incentive to participate

Goal: getting the right people on board


Tolerate failure

Empower them

Create free space for new thinking

Corporate creates roadblocks or do not remove them







Dos Don’ts

Projektbörse -> freie Wahl des Arbeitsauftrags durch Mitarbeiter

Goal: right motivated people


Short team assignment (about 3 months)

Employee should not be proposed by the boss, free choice

Don’t overcomplicate the process

Autonomous team creation

50% from inside, 50% from outside the corporation

Goal: mix of insider knowledge and fresh views, improve idea from outside


Focus more on customer USN

Longer up to speed rhythm

Budget to hire professionals / contractors

Goal: limit risks / liabilities


Flexibility

Lack of permanent hire candidates

Limited external budget

Employees branding -> make job appealing to talent


Make employees speak for themselves (honesty)

Don’t oversell

Need the right environment to reinforce trust in employees message

HR promote talent pool, time sharing with actual job


Feeling of job safety

Changes in day to day job

Create more pressure, less time for the normal job

Placement: V=Vertical 0%= full Sponsor / 100%= full Innovator H=Horizontal 0%=Fully integrated / 100%= totally autonomous






Corporate Innovation Framework domain: Collaboration with Marketing & Sales


Dos Don’ts

Frühzeitige Einbindung von Kunden.

Goal: Mach es richtig von Anfang an.

Frühzeitige, laufende Einbindung mit einem beständigen Team.

Performance-abhängige Rewards.

Keine Partikularinteressen zulassen.

Ohne Knowhow loslegen.

Loslaufen. Später abstimmen. Mit Fakten zurückkommen. Learnings ableiten.

Abgestimmtes Vorgehen.

Goal: First Mover Impact, Differentiation, Optimization, ...

Zu grosser Zeitverlust verhindern.

First Mover Advantage kann nicht realisiert werden.

Gemeinsame Absatzplanung. Lieferdruck («Come to a conclusion»).

Verkaufsdruck, (Selbst-)übererschätzung







Dos Don’ts

Gemeinsame Ziele, Teams, Kultur.

Goal: Alignment

Competition zwischen verticals






Corporate Innovation Framework domain: Collaboration with corporate services


Dos Don’ts

Vollständige Autonomie für das Corporate Startup, Führung im Sinne eines VC

Vollständige Unabhängigkeit von den Corporate Services (HR, IT, Procurement, Finance)

Abschaffung der Corporate Compliance Funktionen

Aushebelung Weisungen, Richtlinien, Standards des Konzerns







Dos Don’ts

Bei Sinnhaftigkeit und Anwendbarkeit, Nutzung gemeinsamer Infrastruktur/Corp. Services – mit Entscheidungskompetenz im Startup, ob im Einzelfall die Corp. Services genutzt werden

Mismatch zwischen Startup- und Konzern-Kultur

Inflexibilität von Konzern-Prozessen

Schwierige Nutzung von Synergien, Inkompatibilitäten zwischen technischen Standards, Prozessstandards, ...

Prozesse dauern zu lang/zu kompliziert (gerade im HR Bereich)

Notwendigkeit: Verschlankung der Entscheidungsstrukturen im Konzern

In Abhängigkeit von der Reife des Startups kann sukzessive die Autonomie reduziert werden und die Nutzung der Corp. Services verlangt werden

Ist abhängig vom Geschäftsmodell und Führungsanspruch des Konzerns:

Schwieriger Übergang von der Startup-Kultur zur Konzern-Kultur: Ist eine solche Transformation mit dem ursprünglichen Startup-Team und als eigenständige Firma möglich – oder muss die Einheit dann vollständig integriert werden?






Corporate Innovation Framework domain: Approaches, methodologies, principles


Dos Don’ts

Lean Startup

Understand the different phases and act accordingly (problem solution fit, product market fit, scale)

Start with 15 minutes F2F problem interviews. Follow up later with solution interviews.







Dos Don’ts

A not transparent KPI/incentive structure may render important experiment impossible

Design thinking

Understand the different phases and act accordingly (Explore, Ideate, Prototype, Scale)

Customer Journey Understand and map out the different roles like user, customer, stakeholder ..)

Lean canvas

Business model canvas

Value proposition canvas

Use your canvas not only at the beginning but also as living document combined with your scorecard while you go through the different phases.

Some companies are not yet ready to deal with the full transparency of risks and hypothesis.

Apply agile development when executing the product development after the ideation phase

Company was experienced in agile development originating from their core product development activities.

Other approach is to collaborate with contract development company that works agile.

Stage Gate I most cases the definition of the phases (originating from product improvement in the core business) does not fit the innovation project

Use trend radar and startup screening Search for new opportunities or threats






Corporate Innovation Framework domain: Culture


Dos Don’ts

Fehler machen und daraus lernen belohnen. Eine konstruktive Fehlerkultur pflegen.

Gemachte Erfahrungen (Learnings) kommunizieren und im Unternehmenswissen verankern.

«Trial and Error» culture engages people to work better.

Fehler wiederholen nicht belohnen.

Gemachte Erfahrungen niederschreiben und (in einem IT-System) archivieren.

Die Möglichkeit eines «Fehlschlags» (= unerwar-teter Ausgang eines Experiments) von Anfang an einbeziehen und als einen Teil des Weges ansehen.

«FAIL» bedeutet «First Attempt in Learning».







Dos Don’ts

Den Mut wertschätzen und ggf. belohnen, Experimente zur Validierung von Annahmen durchzuführen.

Wagnisse (eingehen).

«NO» bedeutet «Next Opportunity».

Querdenken: «Think outside the box»

Glaubhafte, authentische Kommunikation zwischen allen Beteiligten.

Offene Kommunikation ohne Angst vor Repressalien.

Vertrauenskultur (Trust) schaffen.

Stakeholder Management etablieren.

Mitarbeitende oder andere Stakeholder «für dumm verkaufen».

Work with what you have/ work with the people you have. Take people for what they are.

Stärken der Beteiligten ausbauen, begeistern.

Set realistic goals.

Keine «mission impossible». Keine unrealistischen Zeit- und Kostenrahmen.

Rolemodels entwickeln/ installieren.

Skalierbarkeit (Scalability) sicherstellen.

Change Agents einsetzen.

Konsistentes Verhalten der Beteiligten über Zeit sicherstellen.

Change Agents nach dem Transformationsvorhaben zu entlassen sendet die falschen Signale.

Unternehmen mit zwei Kulturen: Entrepreneurship vs. Alltagsgeschäft. Wechsel erwägen.

Respekt für Werte und Geschichte/ Tradition der Firma.

(Continuous) Change als Aufgabe und Kultur etablieren.

Kultur zum Thema machen. Klare Ziele. Wie wollen wir miteinander arbeiten.

Impact von Kultur verstehen: «culture eats strategy for breakfast».

Streight talk. «Learner» anstelle «Knower» Haltung.

Keine zu grosse oder unklare Aufgabenstellung.






Further Reading

As a source of inspiration, here is an excerpt of our recommended readings on Innovation and Business Transformation. We successfully applied many of the principles and practices described to Corporate Innovation projects ourselves. Needless to mention that not every practice meets every purpose in every situation. If you want to know more, get the full English and German list of recommendation etc., contact us at [email protected].

Title Author

101 Design Methods: A Structured Approach for Driving Innovation in Your Organization

Vijay Kumar

Accelerate: Building Strategic Agility for a Faster-Moving World John P. Kotter

Agile Product Management with Scrum: Creating Products that Customers Love Roman Pichler

David and Goliath: Underdogs, Misfits, and the Art of Battling Giants Malcolm Gladwell

Entrepreneur's Guide To The Lean Brand: How Brand Innovation Builds Passion, Transforms Organizations and Creates Value

Jeremiah Gardner; Brant Cooper

Growth Hacker Marketing: A Primer on the Future of PR, Marketing and Advertising Ryan Holiday

Lean Analytics: Use Data to Build a Better Startup Faster (Lean Series) Alistair Croll; Benjamin Yoskovitz

Lean B2B: Build Products Businesses Want Étienne Garbugli

Lean Branding Laura Busche

Lean Customer Development: Building Products Your Customers Will Buy Cindy Alvarez

Lean Enterprise: How High Performance Organizations Innovate at Scale (Lean) Jez Humble

Lean It: Enabling and Sustaining Your Lean Transformation Steven C. Bell; Michael A. Orzen

Little Bets: How breakthrough ideas emerge from small discoveries Peter Sims

Making Sense of Intellectual Capital: Designing a Method for the Valuation of Intangibles

Daniel Andriessen

Management 3.0: Leading Agile Developers, Developing Agile Leaders Jurgen Appelo

Management Y: Agile, Scrum, Design Thinking &, Co.: So gelingt der Wandel zur attraktiven und zukunftsfähigen Organisation

Ulf Brandes; Pascal Gemmer; Holger Koschek; Lydia Schültken

Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness

Frederic Laloux; Ken Wilber

Running Lean: Iterate from Plan A to a Plan That Works (Lean) Ash Maurya

Scaling Lean: Master the Key Metrics for Startup Growth (aka Traction) Ash Maurya

Service Design for Business: A Practical Guide to Optimizing the Customer Experience Ben Reason; Lavrans Løvlie; Melvin Brand Flu

Small Data: The Tiny Clues That Uncover Huge Trends Martin Lindstrom

Startup Growth Engines: Case Studies of How Today's Most Successful Startups Unlock Extraordinary Growth

Sean Ellis




mailto:[email protected]



Title Author

Strategize: Product Strategy and Product Roadmap Practices for the Digital Age Roman Pichler

Ten Types of Innovation: The Discipline of Building Breakthroughs Larry Keeley; Helen Walters

The Four Steps to the Epiphany Steve Blank

The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)

Clayton M. Christensen

The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators Clayton M. Christensen

The Innovator's Hypothesis: How Cheap Experiments Are Worth More than Good Ideas Michael Schrage

The Innovator's Solution: Creating and Sustaining Successful Growth Clayton M. Christensen

The Leader's Dilemma: How to Build an Empowered and Adaptive Organization Without Losing Control

Jeremy Hope; Peter Bunce; Franz Röösli

The Lean Enterprise: How Corporations Can Innovate Like Startups Trevor Owens

The Startup Owner's Manual: The Step-by-Step Guide for Building a Great Company Steve Blank; Bod Dorf

This is Service Design Thinking: Basics-Tools-Cases Marc Stickdorn; Jakob Schneider

TOP 101 Growth Hacks: The best growth hacking ideas that you can put into practice right away

Aladdin Happy

Traction: How Any Startup Can Achieve Explosive Customer Growth Gabriel Weinberg; Justin Mares

Value Proposition Design: How to Create Products and Services Customers Want Alexander Osterwalder; Yves Pigneur




Leadership & Management

CSSI - Corporate Innovation Workshop - Summary