INNOVATE BEFORE IS TOO LATE

ZILELE BIZ 2015

Iulian Pădurariu

Marketing Background (1997) Business Development Consultant (2005) Specialization in Entrepreneurship & Innovation

If You Don't Innovate, Someone Else Will

http://www.ideastogo.com/innovate-before-its-too-late

BUT HOW?

Startups Corporations

Principles• Strong focus on product and process

innovation based on agile management techniques

• Innovation catalyst at the corporate level

• both short term fixes and long term approach

• involving collaborative intelligence

Step 1: Setting A Second Operating System

“Although traditional hierarchies and processes are optimized for day-to-day business, they can’t handle the challenges of mounting complexity and rapid change.

The solution is a second operating system, devoted to the design and implementation of strategy, that uses an

agile, networklike structure and a very different set of processes. The new operating system continually

assesses the business, the industry, and the organization, and reacts with greater agility, speed, and creativity than the existing one. It complements rather

than overburdens the hierarchy, thus freeing the latter to do what it’s optimized to do. It actually makes

enterprises easier to run and accelerates strategic change.” - John Koter on HBR 2012/11

Step 2: Managing the Innovation Portfolio

• One tool is the Innovation Ambition Matrix (IAM) as a refinement of a classic diagram devised by the mathematician H. Igor Ansoff to help companies allocate funds among growth initiatives.

• IAM replaces Ansoff’s binary choices of product and market (old versus new) with a range of values. This acknowledges that the novelty of a company’s offerings (on the x axis) and the novelty of its customer markets (on the y axis) are a matter of degree. There are three levels of distance - in time - from the company’s current, bottom-left reality. Bansi Nagji and Geoff Tuff in HBR 2012/06

The Innovation Ambition Matrix

cont: Is There a Golden Ratio?

Analysis reveals that the allocation of resources shown below correlates with meaningfully higher share price performance. For most companies, this breakdown is a good starting point for discussion. Bansi Nagji and Geoff Tuff in HBR 2012/06

Mandatory ingredients

• Top level (CEO) sponsorship

• Long term consistency

• Customer Development approachTransformational efforts require a nonlinear process in which potential alternatives remain undefined until market validation (see next slide regarding start-ups development process)

*MVP = Minimum Viable Product

Q & A

MULTUMIM