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1. Build an
Innovation Funnel
Adaptive portfolio management
Friday 31 July 2020, 18:00 CEST
Jurgen Appelo
@jurgenappelo

2. At the end of this session, you will…
Understand the principles of portfolio management
Have a set of good practices for innovation funnels
See why typical agile transformations always fail

3. Introducing innovation funnels
Good practices for innovation funnels
Good practices for portfolio management
About agile transformations
Build an Innovation Funnel
Wrapping up

4. «How can we
have a startup
culture?»
(But we don’t want to lose
our scaleup culture.)
The Innovator’s Dilemma

5. Exploration Execution
Do the right thing
Do the thing right
Lifecycle stages (maturity) of the business model

6. How to solve the Innovator’s Dilemma
Use the Business Lifecycle
Practices depend on business model maturity
Use the Innovation Vortex
Gradually shift from disruptive to sustaining
Create an Innovation Funnel
Grow your own great game of business

7. Innovation
Vortex
Contextualize (Frame)
Empathize
(Discover)
Synthesize
(Define)
Hypothesize
(Ideate)Externalize (Build)
Sensitize
(Test)
Systematize
(Learn)

8. How to solve the Innovator’s Dilemma
Use the Business Lifecycle
Practices depend on business model maturity
Use the Innovation Vortex
Gradually shift from disruptive to sustaining
Create an Innovation Funnel
Grow your own great game of business

10. Innovation
Steering
Committee
https://www.amcham.de/public-affairs/committee-news/news/new-innovation-research-committee-kicks-off-work/

11. Innovation
Center

12. Hackathons /
Innovation
Days

13. Innovation
is a funnel,
not a tunnel.
Photo by Rodion Kutsaev on Unsplash

14. Risk Management (Robert Cooper)
https://www.youtube.com/watch?v=VCWM4ZI_iHo

15. Innovation
Funnel
All ideas are
welcome, but they
need a disciplined
approach to grow
along the lifecycle
stages.

16. Introducing innovation funnels
Good practices for innovation funnels
Good practices for portfolio management
About agile transformations
Wrapping up
Build an Innovation Funnel

17. If we want to
improve innovation,
we need to learn
from the backers of
the best innovators.

18. Innovation Thesis
What do we believe about the
future of the world? What kind
of products do we want to
invest in?

19. Hackathons /
Innovation Days
How many experiments for
new products can we run in
the shortest amount of time?

20. Internal Crowdfunding
How can we use the wisdom of
the crowd among our own
workers to make the best bets
for the future?

21. Demo Days
How can we follow and
measure progress of our
startups?

22. Innovation Scorecard
How can we rate our projects
and decide which ones will
keep our support?

23. Metered Funding
How can we support the right
products with the right amount
of funding?

24. Introducing innovation funnels
Good practices for innovation funnels
Good practices for portfolio management
About agile transformations
Wrapping up
Build an Innovation Funnel

25. Innovation Board
Who will manage
the portfolio of
ideas and teams?

26. Executive Sponsor
Who will be the
company’s innovation
champion?
Photo by Hunters Race on Unsplash

27. Corporate Venturing
Do we invest only in
our own ideas or
also in those of
external startups?
Photo by Markus Winkler on Unsplash

28. Strategic Buckets
How will we mix the
high-risk and the
low-risk projects?
Photo by Nathan Dumlao on Unsplash

29. The top
performers will
earn back the
investment for all.
https://www.linkedin.com/pulse/venture-investors-playbook-part-2-chip-hazard/

30. Make many small bets. The greatest
risk is not taking any risks.
Photo by Michał Parzuchowski on Unsplash

31. Venturing Optimizing
Lifecycle stages (maturity) of the business model

32. Conway’s Law
https://www.goodreads.com/book/show/13629.The_Mythical_Man_Month
Any organization that designs
a system will produce a
design whose structure is a
copy of the organization’s
communication structure.

33. «Reverse» Conway’s Law
The communication structure of any
organization must depend on the
structure of the systems that it designs.
(form follows function)

34. «How can we
have a startup
culture?»
(But we don’t want to lose
our scaleup culture.)
The Innovator’s Dilemma

35. How to solve the Innovator’s Dilemma
Use the Business Lifecycle
Practices depend on business model maturity
Use the Innovation Vortex
Gradually shift from disruptive to sustaining
Create an Innovation Funnel
Grow your own great game of business

36. Intrapreneur
Product
Vision
Startup Team
Product
Vision
Business
Model
Metrics
Dashboard
Scaleup Unit
Product
Vision
Business
Model
Metrics
Dashboard
Agile
Scaling
Growth
Board
Innovation
Board
Innovation
Strategy
Innovation
Portfolio
Gatekeeper
Innovation
Scorecard
Innovation
Accounting
Metered
Funding
Management
Performance
Incentives
Executive
Sponsor
Division
Product
Vision
Business
Model
Metrics
Dashboard
Agile
Scaling
Lean
Production
Growth
Board
Organization
Design
Coaches
Workshop
Training
Innovation Funnel
1 Initiation
2 Expedition
3 Formation
4 Validation
5 Stabilization
6 Acceleration
7 Crystallization
MaturityLevels/LifecycleStages
Exploration
Execution
Innovation
Vortex
Current
Organization
Continuous Innovation & Transformation
8 Expansion
9 Conservation
10 Finish

37. Introducing innovation funnels
Good practices for innovation funnels
Good practices for portfolio management
About agile transformations
Wrapping up
Build an Innovation Funnel

39. Intrapreneur
Product
Vision
Startup Team
Product
Vision
Business
Model
Metrics
Dashboard
Scaleup Unit
Product
Vision
Business
Model
Metrics
Dashboard
Agile
Scaling
Growth
Board
Innovation
Board
Innovation
Strategy
Innovation
Portfolio
Gatekeeper
Innovation
Scorecard
Innovation
Accounting
Metered
Funding
Management
Performance
Incentives
Executive
Sponsor
Division
Product
Vision
Business
Model
Metrics
Dashboard
Agile
Scaling
Lean
Production
Growth
Board
Organization
Design
Coaches
Workshop
Training
Innovation Funnel
1 Initiation
2 Expedition
3 Formation
4 Validation
5 Stabilization
6 Acceleration
7 Crystallization
MaturityLevels/LifecycleStages
Exploration
Execution
Innovation
Vortex
Current
Organization
Continuous Innovation & Transformation
8 Expansion
9 Conservation
10 Finish
Transform
per stage

40. Intrapreneur
Product
Vision
Startup Team
Product
Vision
Business
Model
Metrics
Dashboard
Scaleup Unit
Product
Vision
Business
Model
Metrics
Dashboard
Agile
Scaling
Growth
Board
Innovation
Board
Innovation
Strategy
Innovation
Portfolio
Gatekeeper
Innovation
Scorecard
Innovation
Accounting
Metered
Funding
Management
Performance
Incentives
Executive
Sponsor
Division
Product
Vision
Business
Model
Metrics
Dashboard
Agile
Scaling
Lean
Production
Growth
Board
Organization
Design
Coaches
Workshop
Training
Innovation Funnel
1 Initiation
2 Expedition
3 Formation
4 Validation
5 Stabilization
6 Acceleration
7 Crystallization
MaturityLevels/LifecycleStages
Exploration
Execution
Innovation
Vortex
Current
Organization
Continuous Innovation & Transformation
8 Expansion
9 Conservation
10 Finish
Embrace
evolution

41. Introducing innovation funnels
Good practices for innovation funnels
Good practices for portfolio management
About agile transformations
Wrapping up
Build an Innovation Funnel

43. A product is like one
organism.
The organization is
like its species.
The economy is like
the biosphere.
Photo by Alan Godfrey on Unsplash

44. The only way not to be disrupted is to disrupt yourself.

45. hello@shiftup.work
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