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The New vs The Old Game of Growth - On Corporate Innovation

These were my slides on a recent presentation with plusandersen.com at Mediengruppe RTL in Cologne, Germany on March 31st 2017. It explains the old game of corporate growth versus the new, what to do to innovate and disrupt and how to manage it within a corporate setting. Bookings: booking@vidarandersen.com

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The New vs The Old Game of Growth - On Corporate Innovation

  1. 1. THE OLD VS THE NEWON THE CORPORATE GAME OF GROWTH LEARN MORE
 PLUSANDERSEN.COM
  2. 2. LEARN MORE
 PLUSANDERSEN.COM +ANDERSEN 
 & ASSOCIATES INNOVATION & GROWTH THROUGH SCIENCE + ENTREPRENEURSHIP
  3. 3. THE 
 OLDVS 
 NEW 
 GAME OF GROWTHTHE NEW GAME RULES FOR CORPORATE INNOVATION
  4. 4. THE OLD GAME
  5. 5. PRODUCT OF THE INDUSTRIAL AGE
  6. 6. ALL ABOUT MARKET CAPITALISATION
  7. 7. DEFENDING MARKET POSITION AT ALL COSTS
  8. 8. CONQUERING MARKET SHARE BY ANY MEANS
  9. 9. AT GLACIAL SLOW SPEEDS
  10. 10. COOKIE-CUTTER PROCESSES & PEOPLE
  11. 11. THE OLD GAME •A product of the industrial age •All about market cap •All about defend and conquer market cap •At relative slow and predictable speed •With replaceable and highly specialised workforce •With well-defined and optimised processes and organisation •A zero sum game with finite growth; The Current pie was all there was •Highly fragile to change and disruption; Assumed growth was finite •Obsolete
  12. 12. THE NEW GAME
  13. 13. LIVING IN A POST-INDUSTRIAL AGE
  14. 14. IT’S ABOUT CREATING NEW MARKETS
  15. 15. & OF COURSE OWNING THE NEW MARKETS
  16. 16. AT LIGHT SPEED FOREVER ACCELERATING
  17. 17. SHORTER
 LIFE EXPECTANCY FOR CORPORATIONS
  18. 18. EXPONENTIAL
 TECHNOLOGY DEVELOPMENT
  19. 19. YOUR COMPETITION
 NO LONGER PEERS OR NEAR-PEERS THE AMOUNT OF VENTURE CAPITAL AVAILABLE TO STARTUPS HAVE NEVER BEEN BIGGER
  20. 20. STARTUP VALUATIONS
 RAPIDLY INCREASING
  21. 21. YOUR CORPORATION
 SLOW & RIGID + COMPLIANT
  22. 22. YOUR NEW COMPETITORS
 FAST & AGILE + BREAKS THE LAW
  23. 23. AUTOMATION
 AFFECTING MOST VERTICALS
  24. 24. MACHINES
 LEARNING BY THEMSELVES
  25. 25. FOREVER CONTINUOUSLY
  26. 26. SEARCH EXECUTION IN PARALLEL BUSINESS AS USUAL + DISRUPTION DISRUPTING CORE EXTENDING BUSINESS AS USUAL
  27. 27. WITH POLYMATHS +AGILE & ITERATIVE PROCESSES
  28. 28. SEPARATED COMPLETELY DIFFERENT WORLDS
  29. 29. WITH GATEWAY BETWEEN THE TWO
  30. 30. SEARCH EXECUTION DISRUPTION MUTUALLY EXCLUSIVE TO SUSTAINING SUSTAINING DISRUPTING
  31. 31. AMBIDEXTROUS DISRUPT OR BE DISRUPTED
  32. 32. SUSTAINING DISRUPTIVE OUTSIDE OF DAILY OPERATIONS INSIDE OF DAILY OPERATIONS
  33. 33. OPERATIONS INNOVATIONS NEW KPI & MANAGEMENT TOOLS PRODUCT MANAGEMENT & BIZ ADMINISTRATION
  34. 34. DOING BOTH WITHIN SAME STRUCTURE WILL FAIL SUSTAIN DISRUPT DESTROY CORE 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
  35. 35. THE NEW GAME •Creation of new markets vs only market cap •And owning the new markets •And continuously creating new markets •With entrepreneurial, polymath, non-cookie cutter people •With adaptive, lean & anti-fragile processes •The search for new business models in parallel to executing business as usual - it’s and, not either-or (ambidextrous) •With an ever more unpredictable globalised, chaotic and continuously and rapidly disruptive post-industrial future •Assumes infinite growth •A game ideal for entrepreneurial types
  36. 36. OUTDATED 
 TOOLS
  37. 37. BCG GROWTH MATRIX
  38. 38. STRATEGY MAPS
  39. 39. WATERFALL PROJECT MANAGEMENT
  40. 40. ORGA CHARTS
  41. 41. COMMAND LINES
  42. 42. OUTDATED TOOLS • Growth Share Matrix • Strategy Maps • Waterfall Project Management (linear) • Organisational Charts • Command Lines • All tools assuming projecting and linearity • All tools prohibitive to speed and agility • All tools prohibitive to customer centricity
  43. 43. THE TOOLS THAT WERE ONCE SUCCESSFUL FOR EXECUTION 
 HAVE BECOME IMPEDIMENTS 
 THAT ARE ANTITHETICAL TO CONTINUOUS INNOVATION
  44. 44. SO WHAT TO DO?
  45. 45. INTRODUCING THE THREE HORIZONS
  46. 46. TIME SALES HORIZON 1 HORIZON 2 HORIZON 3 MATURE BUSINESS 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 ≠ ≠
  47. 47. H1: KNOWN H2: PARTIALLY KNOWN H3: UNKNOWN THE THREE HORIZONS
  48. 48. HORIZON 1 - EXECUTING THE CURRENT CORE BUSINESS MODEL TO GENERATE VALUE TODAY HORIZON 2/3 - SEARCHING FOR NEW BUSINESS MODELS TODAY TO GENERATE VALUE TOMORROW
  49. 49. WHERE TO DO WHAT? HOW TO MAKE IT WORK
  50. 50. HORIZON 1 HORIZON 2/3 OUTSIDE OF DAILY OPERATIONS INSIDE OF DAILY OPERATIONS
  51. 51. METHODOLOGY FOR HORIZON 1 INNOVATION EXECUTING KNOWN KNOWNS
  52. 52. PRODUCT MANAGEMENT HORIZON 1 EXTENDS EXISTING CORE
 BUSINESS MODEL USE 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
  53. 53. HORIZON 2 / 3 
 INNOVATIONS SEARCHING FOR THE UNKNOWN
  54. 54. 1. METHODOLOGY BUSINESS MODEL GENERATION CUSTOMER
 DEVELOPMENT AGILE ENGINEERING+ + THE LEAN STARTUP HORIZON 3 SEARCHES FOR
 NEW BUSINESS 
 MODELS THAT DISRUPT CURRENT CORE BUSINESS =
  55. 55. 2. MANAGEMENT KPI IRL 1 IRL 2 IRL 3 IRL 4 IRL 5 IRL 6 IRL 7 IRL 8 IRL 9 Identify and validate metrics that matter Validate value delivery (Left BMC side) Prototype High-Fidelity MVP Validate Revenue Model (Right BMC side) Validate Product-Market fit Prototype Low-Fidelity MVP Problem-Solution validation Market size & competitive analysis Complete first-pass of business model canvas (BMC) INNOVATION READINESS LEVEL (IRL)
  56. 56. BUSINESS MODEL ENGINEERING CUSTOMER
 DEVELOPMENT AGILE ENGINEERING HYPOTHESES EXPERIMENTS DATA WEEKLY 
 PROGRESS EXPERIMENT
 SCORECARD DATA, TRAJECTORY EXPERIMENTS,
 READINESS LEVEL METHODOLOGIES EVIDENCE BASED PROCESS MANAGEMENT TOOL - INNOVATION METRIC (KPI) + + + = MENTORSHIP 3. PROCESS THE LEAN STARTUP Innovation Readiness Level (IRL) The Lean Launchpad Curriculum
  57. 57. AS PRACTICED BY AND MANY, MANY MORE…
  58. 58. 4. ORGANISATION Executive Chair of the Board CEO Chief of Innovation Chief Internal Ambassador
 (Chief Corporate Concierge) COO CFO CTO CMO Innovator Innovator Innovator Chief Portfolio Manager Chief VC Chief Risk
 Officer HORIZON 1 SUSTAINING CORE BUSINESS HORIZON 2/3 DISRUPTING CORE BUSINESS
  59. 59. 5. STRUCTURE / ENGINE IRL 0-3 IRL 4-6 IRL 9+IRL 7-8 5 OR 12 WEEKS 3 MONTHS G ATE1 G ATE2 G ATE3 G ATE4 G ATE5 PROBLEM OR NEED-
 FIT STAGE SOLUTION- FIT STAGE PERPETUAL 2-5 DAYS PRODUCT- MARKET 
 FIT STAGE COMPANY BUILDING STAGE DISCOVER EXPLOITVALIDATEEXPLORE CUSTOMER CREATION STAGE PEOPLE- IDEA FIT STAGE MANAGEMENT TOOL, INNOVATION READINESS LEVEL KPI (IRL) TIME & QUALITY RISK & QUANTITY IDEATION DEALFLOW PRE-ACCELERATION ACCELERATIONGENERATION EDUCATION SELECTION FINAL DECISION SCALING UP • SPIN IN? • SPIN OUT? • KILL? • EXTEND?
  60. 60. WE HELP 
 YOUR COMPANY 
 GET READY 
 FOR TOMORROW TODAY PLUSANDERSEN.COM
  61. 61. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets
  62. 62. PRE-ACCELERATION ACCELERATIONGENERATION EDUCATION SELECTION FINAL DECISION SCALING UP DEALFLOW LEARNING JOURNEY LEARNING KEYNOTE KILL YOUR COMPANY INNOVATOR MASTERCLASS INNOVATOR BOOTCAMP LEAN LAUNCHPAD MVP AS 
 A SERVICE INNOVATION OUTPOSTS DEMO DAY PITCHING MASTERCLASS EXPERTS AS A SERVICE MENTORS AS A SERVICE TRAIN THE TRAINER SPINNING OUT +ANDERSEN PROGRAMS AT ALL STAGES
  63. 63. +ANDERSEN 
 & ASSOCIATES INNOVATION & GROWTH THROUGH SCIENCE + ENTREPRENEURSHIP LEARN MORE
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