RAPIDLY GROWING BUSINESS EMERGING BUSINESS FOCUS: OUTPUT: EXECUTING TO DEFEND, EXTEND, AND INCREASE PROFITABILITY OF EXISTING BUSINESSES ANNUAL PLANNING AND FORECASTING; DETAILED PLANS FOR GROWTH THROUGH ADJACENCIES RESOURCING INITIATIVES TO BUILD NEW BUSINESSES BUSINESS BUILDING STRATEGIES: INVESTMENT, BUDGET, DETAILED BUSINESS PLANS FOR NEW VENTURES UNCOVERING OPTIONS FOR FUTURE OPPORTUNITIES AND PLACING BETS ON SELECTED OPTIONS DECISIONS TO EXPLORE; INITIAL PROJECT PLAN, PROJECT MILESTONES SOURCE: BAGHAI, COLEY, WHITE ≠ ≠ 3-12M 24-36M 36-72M
continuous innovation to a company’s existing business model and core capabilities. Horizon 2 ideas extend a company’s existing business/model and core capabilities to new customers, markets or targets. Horizon 3 is the creation of new capabilities to take advantage of or respond to disruptive opportunities or to counter disruption.
be delivered in the short term of 3 to 12 months Business Model extensions that will be ready 24 to 36 months out Creating new disruptive products or business models 36 to 72 months out
be delivered in the short term of 3 to 12 months Business Model extensions that will be ready 24 to 36 months out Creating new disruptive products or business models 36 to 72 months out
years to develop, in today’s world this is no longer the case. The three horizons are no longer bounded by time. Today, disruptive Horizon 3 ideas can be delivered as fast as ideas for Horizon 1 in the existing product line.
TRADITIONAL PRODUCT MANAGEMENT FOR HORIZON 1 PROJECTS IDEA SCREEN SECOND SCREEN GO TO DEVELOPMENT GO TO TESTING GO TO LAUNCH G ATE 1 STAGE 1 G ATE 2 STAGE 2 G ATE 3 STAGE 3 G ATE 4 STAGE 4 G ATE 5 STAGE 5 SCOPING BUILD BUSINESS CASE DEVELOPMENT TESTING & VALIDATION LAUNCH PROCESS INNOVATION
is the United States government agency that supports fundamental research and education in all the non-medical fields of science and engineering They decide which public scientific research projects will get federal funding for commercialisation in the US with an annual budget of $7 Billion.
Most applicants their accelerator program iCORPS were getting were not fundable by their standards of readiness. The NSF is as science-oriented as one can get, so they wanted to experiment with improving their fundability rate by providing the applicants with a fitness program before they could apply and get the data, the scientific facts, on how these applicants would perform compared to the baseline of normal applicants not taking the fitness program to see if there would be a difference, if at all. So the NSF started requiring applicants to take the Lean Launchpad as a prerequisite, as a fitness program, before applying to their NSF iCORPS accelerator.
came in, they found that the previous fundability rate of 18% of all applicants without the Lean Launchpad improved to a massive +60% of fundability of the teams that had taken the Lean Launchpad as a pre-accelerator fitness program. The science is in; By using the Lean Launchpad as a pre-accelerator program, The National Science Foundation managed to improve their dealflow with significant 44% hike in fundability and has now been turned into law.
TRL 6 TRL 7 TRL 8 TRL 9 BASED ON NASA/DOD TRL TECHNOLOGY READINESS LEVEL • Formal way to assess technology project maturity • Quantify relative risks • Data driven • Adopted by NASA, DOD, FAA, ESA and so on… • Introduced in 1974 by NASA JPL • Also see: http://www.wikiwand.com/en/Technology_readiness_level
BUSINESS MOVE FAST AND BREAK THE RULES PROTECT CORE BUSINESS GO SLOW AND FOLLOW THE RULES HORIZON 1 DAILY OPERATIONS HORIZON 2/3 DISRUPTIVE INNOVATIONS
attract, motivate, support, and retain innovative people and how to generate, discover, explore, and exploit new business models through innovation… plusandersen.com
by “shiny object” • Abandoning core - Horizon 1 (H1) - business • Treating core business (H1) as “old guys who doesn't get it” • Company still dependent on H1 until new tech gets adopted (e.g. Apple, RIM) • Do not demoralise the current product team • Have a transition plan • Insure money, people and infrastructure are in place to cross the Tech transfer, to survive the “Valley of death” PROBLEM SOLUTION
“NOW” • Not investing for long term • CEO and management incentives all about current mission and goals • No incentives for CEO or management on innovation for Horizon 2 and Horizon 3 • You need need a corporate chief innovation officer who understands innovation • And you need a chief innovation officer in all of your divisions PROBLEM SOLUTION
to describe everything and anything in the company • Use the horizons 1 2 3 metaphor to describe and position innovation • Understand that incubators & similar are just the innovation vehicles • Lean is the best methodology for accelerating learning • Lean Launchpad is the best program to implement it PROBLEM SOLUTION
• Projects that are risky are avoided at all costs • “Projects are expensive, years of people and money invested!” • In lean organisations, failure is part of the process • Failure is acceptable because failures are required as learning process, achievable at very low cost and at very high speed • Pivoting from failure gives you more new learnings PROBLEM SOLUTION
goal is to move forward, not to reinvent what already works • Fundamental issues, confusion about the goal of innovation in horizon 1 (H1) • Use the horizons 1 2 3 metaphor to describe what kind of innovation you are talking about • You need a corporate chief innovation officer who understands innovation PROBLEM SOLUTION
(Disruptive) innovations • No divisional or senior job level description for horizon 3 (H3) • No strategy or tactics for integration of H3 into operating dIvisions • Develop meaningful incentives for Horizon 3 innovation • Develop a written job description for H3 support • Develop strategy and tactics for integration of Horizon 3 into the rest of the organisation PROBLEM SOLUTION
(“GO!”) • Bottom of the organization (the innovators) are ready to “GO!” • Middle management kills it (“NO!”)actively, by sabotage or benign neglect • And thus innovation programs die • Prove that it can work • Then communicate, communicate, communicate: • Big idea, shared goal & mission • Strategy, big picture of how the pieces work together • Tactical implementation • Update job specs to include innovation support • Change incentives to include innovation support • Give those who came before much appreciation • Support those who try and fail and try again PROBLEM SOLUTION
our customers” • Legitimate concern of pitching new capabilities in place of the ones that exist • Believe they understand all user needs • Customer discovery is not about pitching new products • It’s about understanding user problems/needs and how they use current solutions • Impossible for a single individual to predict all of users needs now and the future PROBLEM SOLUTION
So they just talk to the subject matter expert • Talks to the same small group of users they've talked to for the past 5 years • They are not talking to the total available market so they miss solving the bigger problems • Focus the organisation on understanding customer problems • Focus on solving current or future problems PROBLEM SOLUTION
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