In my 2014 book I coined the term "Innovation Colony" to represent a new innovation structure which delivers predictable results over Innovation Labs, Skunkworks, and Intrapreneur Programs. Buy the book: www.leanenterprisebook.com Join the community: www.leanenterprise.co

1. I’d like to share
with you an
experience…
Trevor Owens (@TO) - Author & Entrepreneur

2. I’ve met thousands of
innovators in big
companies

3. FACT:
They are just as smart
as the best
entrepreneurs

4. I can’t even count how
many times…

5. They did everything the
right way

6. They had a breakthrough
product

7. They were positioned to
be extremely successful
in the market

8. But then…

10. The corporate anti-
bodies came around…

11. They said,
“We don’t like this.”

12. “This is threatening.”

13. And the project got quietly
shut down.

14. Their only mistake was
thinking too big…

15. Enterprises are not structured
to disrupt themselves

16. Most have tremendous pressures
to deliver short-term results

17. To hit their quarterly numbers

18. Business unit leaders want
quick wins

19. That’s how the system is
designed.

20. But there IS a better way

21. A structure to support
disruptive innovation

22. INNOVATION COLONY

23. (Most) Innovation Labs talk
about disruptive innovation

24. But they are beholden
to what business unit
leaders need

25. SUSTAINING
INNOVATIONS

26. DISRUPTIVE
INNOVATIONS
GET LEFT ON
THE SHELF…

27. Innovation Flow
Spin-Out
Spin-In
1
2
3
Innovation Colony

28. Innovation Flow

29. FACT:
1 in 10 VC investments
pays for the other 9

30. FACT:
1 in 1000 YCombinator
investments is worth more
than all the others
combined

32. Table stakes means a
massive sample size of
ideas to choose from

33. Enterprises have the
people

34. They need the
entrepreneurial energy

35. This is how Intuit fosters
innovation flow…

36. #1 Education

37. Employees need training to
deal with uncertainty and
use Lean methods

38. Not just a few, a critical
mass (30%), so the culture
will change

39. Intuit runs quarterly
bootcamps on Lean,
design thinking, and
brainstorming

40. After several years, almost
everyone has attended
them

41. #2 Opportunity

42. Unstructured time
(10% time) shields
employees, so they can
think outside the box

43. Innovation Challenges
engage the whole company
and make disruption a
sport

44. #3 Rewards

45. Innovation Vacation
rewards employees for
testing new ideas

46. The Founder’s Award gives
employees who create
significant new business
lines an exit strategy

47. Hint: They don’t have to
leave the company to earn
a 7-figure payout

48. SPIN-OUT

49. Once we have enough
ideas, we spin-out the
most promising ones

51. Shield them from
corporate anti-bodies

52. Bring in outside talent and
expertise (if needed)

54. But maintain ownership
and control through
preferred shares and
board seats

55. Most will fail

56. But a few will mature into
incredible opportunities

57. SPIN-IN

58. When they get customers
and prove the product

59. When most of the
uncertainty is gone

60. We want to acquire the
remaining shares in the
business

61. This process is not unlike
the one Corp. Dev. does
every day

62. 1. P/M Fit!
2. Corp Dev

63. Big win for the innovators!

64. Even bigger win for us.

65. Let’s put it in perspective

66. According to YCombinator,
every successful disruptive
innovation follows the same
pattern

67. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness

68. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness

69. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness

70. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness

71. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness

72. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Product/
Market Fit!
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Product/
Market Fit!
Scale
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness

73. The Trough of Sorrow is the
hardest part

74. Most startups fail here
because they can’t find
customers

75. Corporate bureaucracy kills
the agility startups need
to pivot and survive

76. Without bureaucracy,
less than 5% make it to
Product / Market Fit

77. But a single win creates
enormous wealth

78. This is how
the Innovation Colony
maps to this process

79. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness Innovation ColonyInnovation Colony

80. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness Innovation ColonyInnovation Colony
Generate Innovation Flow

81. Education, Opportunity,
and Rewards

82. To get a big sample size

83. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness Innovation ColonyInnovation Colony
In. Flow

84. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness Innovation ColonyInnovation Colony
In. Flow Spin-Out

85. Letting innovators take the
risk is best for them
AND for us

86. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Product/
Market Fit!
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Product/
Market Fit!
Scale
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Innovation ColonyInnovation Colony
In. Flow Spin-Out

87. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Product/
Market Fit!
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Happiness
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Product/
Market Fit!
Scale
Starts
Working
Experimenting
& PivotingSource: Paul Graham; avc.com
Time
Innovation Colony
In. Flow Spin-Out Spin-In

88. Bring them back in
for the good part

89. When our resources can be
used to scale the business

90. When the product is proven

91. There are smart innovators
in every company

92. Who dream big

93. Don’t let their only
mistake be

94. Growing up in the wrong
environment

95. Expand your horizons

96. “Actionable insights that will allow any successful enterprise
to continue to innovate in today’s fast-
changing environment.”
Brad Smith, CEO of Intuit

97. Want even more?!
Join the community LeanEnterprise.co
Follow Trevor on Twitter @TO