20130418 corina kuiper
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The Effectual Catalyst
© The Effectual Catalyst
Corporate Venturing: The Art of Raising Teenagers
Corina Kuiper
18 April 2013
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lunch dinner
Me
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Outline
• Granularity of Innovation ‘the members of the family’
• Disruptive Innovation in large companies “teenagers and parents”
• Managing Disruptive Innovation “the art of dealing with teenagers”
• Granularity of Innovation ‘the members of the family’
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Today’s logic cannot to deal with the global trends: New ways of thinking and working are required
The rise of emerging markets
Aging population
Increased consumer empowerment and sustainable lifestyles
Climate change and sustainable development
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Healthcare: issue is not just money but there are not enough hands to take care of elderly and chronically diseased.
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The rise of
emerging markets
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adults die each year from Cancer
adults die each year from Cardiovascular Disease
people worldwide are affected by Alzheimer's disease
adults have diabetes
people are newly diagnosed with tuberculosis every year and it remains a worldwide threat
people suffer from Asthma; more than 200 million have Chronic Obstructive Pulmonary Disease
285 million
8 million
300 million
24 million
17 million
7 million
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• In 2020 emerging countries will spend 60% of their Healthcare budget on chronic diseases
• In China’s big cities 20% of children between 7-17 are overweight/obese
• In China 85% of deaths are related to chronic diseases
• In China 70% of diseases are chronic diseases (260 million people)
• In US 75% of Healthcare costs are related to chronic diseases
It is getting worse….
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of prescriptions are never filled
Of medicine are taken properly
Direct and indirect healthcare costs due to non-adherence (US) $290 billion
25-30%
50%
Patient behavior and Pharma cost trend
Pharma model is broken
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Change is the key driver of business creation
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“We cannot solve our problems with the same thinking we used to created them”
Albert Einstein
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The logic of the business case today
Opportunities
Global Trends
Business Case
• NPV, • ROI • ….
Strategic Ambition
• Markets • Categories •Brand image
Right To win
• Technology position • Market position
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… with Open Innovation your are no longer limited to your in-house technology/market positions
Opportunities
Business Case
• NPV, • ROI • ….
Strategic Ambition
• Markets • Categories •Brand image
Right To win
• Technology position • Market position
Right To win
• Technology position • Market position
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Global Trends
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HeartStart Home Defibrillator
• No time to read the manual!
• Easy to use
• Specifically designed for use at home
• Life saver
• Making a difference
•80% of the cardiac arrests occurs at home •Brain death and permanent death start to occur in just 4 to 6 minutes •Few attempts succeed after 10 minutes. •Only 5% survives!
We’ve been listening to people...
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The Effectual Catalyst
Disruptiveness to the customer determines how to innovate
Opportunities
Business Case
• NPV, • ROI • ….
Strategic Ambition
• Markets • Categories •Brand image
Disruptiveness
• Existing vs New to world
Right To win
• Technology position • Market position
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Global Trends
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Granularity of Innovation Market life cycle Disruptiveness to consumer
• New to the world
• New adjacent category
• New in the category
• Improved
“The Granularity of Innovation”, A more granular perspective on innovation types driving
enduring company performance. Granularity of Innovation is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst)
OUTSIDE - IN OUTSIDE - IN
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Two dimensions creating view on different types of innovation
emerging
growth
mature
decline
Disruptiveness (proposition is…)
Mar
ket
life
cyc
le (S
egm
en
t/ge
o)
New category
New Business Creation
Product Creation
improved product
new in category
new adjacent category
new to world
New category Existing category
Granularity of Innovation is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst) © The Effectual Catalyst 17
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…. that enables different innovation perspectives From market share battle in existing spaces to opening new spaces
New category Existing category
Granularity of Innovation is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst) © The Effectual Catalyst 18
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Different types of business and business models
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New business New Business Creation
Established business Product creation
• Recombine existing resources
• Mitigating risks
• Existing ecosystem
• Market share battle
• Customer insights known
• Leverage existing channels
• Established business models
• Focus on execution/leverage
• Short/mid-term
• Existing organization
• Generate new opportunities
• Deal with the Unknowable
• New ecosystem
• Building mountains (platform)
• Changing customer behavior
• Building new channels
• New business models
• Learning / iterative
• Mid/long-term
• New capabilities
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Outline
• Granularity of Innovation ‘the members of the family’
• Disruptive Innovation in large companies “teenagers and parents”
• Managing Disruptive Innovation “the art of dealing with teenagers”
•Disruptive Innovation in large companies “teenagers and parents
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The large-company Syndrome: why companies cherish babies and adults
but find it difficult to raise teenagers
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New business New Business Creation
Established business Product creation
• Your identity is know and key asset
• You know more, can do more, and are known by many more people
• You have something to lose
• You maximize on sales/profit
• Your company patience is 1-3 years
• Don’t like uncertainty
• Optimize each business case
• Failures are wrong
• Think before you act (rationale)
• Where does it fit (leverage) – ‘borrow’
• Design for scale
• Carrot and stick incentives have positive impact on performance
• You discover/develop your identity
• You are creating new ways /networks (‘use it or lose it’ principle)
• You have something to gain
• You manage on cash-out (affordable loss)
• Like to be challenged
• Optimize the portfolio
• Fail fast and cheap
• You need to experiment (emotion)
• Building outside the scope – ‘forget’
• Getting to plan B (because A didn’t work)
• Intrinsic motivation drives performance; carrot and stick is counterproductive
Two different brains
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You have a choice:
Scene Setting
Target : develop a new Category in Home Lighting = Scene Setting
Lamps
LivingColours
Living White
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You have a choice
Innovation Matrix is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst) © The Effectual Catalyst 25
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Building a bowling alley
Drakensberg Mountains, South Africa. A classic example of the way in which rock layers of one sort and another are piled one on top of the other to build mountains
Platform
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Climbing mountains vs building mountains
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The danger of not recognizing the teenager
Mistakes…..
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Outline
• Granularity of Innovation ‘the members of the family’
• Disruptive Innovation in large companies “teenagers and parents”
• Managing Disruptive Innovation “the art of dealing with teenagers”
•Managing Disruptive Innovation “the art of dealing with teenagers
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How to get the best out of two worlds?
Create a ‘Living Apart Together’ Environment
BORROW
FORGET
LEARN
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How to get the best out of two worlds?
Create a ‘Living Apart Together’ Environment
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Core NBC
Senior executive
team
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Process / Operating requirements
People & Partners Entrepreneurship
Performance Management
The Venture Framework
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Strategy / Vision and Opportunity
Portfolio
COMMON LANGUAGES
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Guide to teenager development - parent
1. As a parent be consistent (consistent strategy over time)
2. Long term, staged financial support, but don’t spoil them (boxed cash budgets)
3. Set boundaries but within the boundaries give freedom to operate (incubators)
4. Be patient, let them grow up and be realistic in your expectations (all big businesses start small)
5. Let them borrow what you have, who and what you know but don’t prescribe how to use it. Allow them to forget your ‘logic’
6. Challenge and protect; be a coach not a drill sergeant
7. Let them learn from mistakes (fail fast and cheap); there is no substitute for real life experience
8. Encourage them to date with people outside the family and network with new people to find new ways/logics
9. It is not about what they say but what they do that makes the difference
10. Don’t use carrot and stick but build on intrinsic motivation
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Guide to teenager development - teenager
1. Discover your strengths and where they excel (sustainable uniqueness and positioning)
2. Start with what you see in the world, not with yourself (outside in)
3. Define how you will be successful; what is your DNA (business model)
4. The proof of the pudding is in the eating (learning by doing)
5. Pilot to learn/experiment, create stepping stones and leverage what you have
6. It is not an one-man-act but create networks and co-create with friends and share joy and sorrow (partnership/co-creation)
7. It is all about what people do, not what they say; potential friends don’t exist
8. Look for people outside your family that can act as a mirror for your most burning questions and who keep you honest (advisory board)
9. Keep your options open as you will find out you need a plan B because plan A didn’t work (scenario planning, DTA)
10. Translate your dream in what you need to do today and accelerate
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THINK BIG,
ACT SMALL AND
ACCELERATE FAST
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