isaac newton, yogi berra, and marcia brady

Isaac Newton,Yogi Berra, and Marcia Brady

A Tale of Innovation in Corporate America

Joe KleinwaechterVice President, Innovation & DesignWorldpay

“Innovation almost never fails due to a lack of creativity. It’s almost always because of a lack of discipline.”

Ten Types of Innovation, Nagji, et.al.

“An object at rest tends to stay at rest.An object in motion tends to continue in the direction in which it is currently moving.”

Newton’s First Law

Your

tur

n What is innovation?

The

Dev

elop

men

t Cy

cle

Natureabhors a vacuum.

Aristotle

The inertia of the present prevents us from servicing our future.

Problem Statement:

Creativity is innate and natural.

Innovation is an unnatural act….

…that requires a method and

discipline

Horizon 1

Horizon 2

Horizon 3

The

3 H

oriz

on M

odel

Accu

mul

ated

Rev

enue

Time

0-12 months 12-36 months 36-72 months

Horizon 1

Hor

izon

10-12 months

Maximize Economic Return

Trying to Maximize ROI Dominate market share Dominate wallet share

But you lack… Opex

Horizon 2

Hor

izon

212-36 months

Become a Growing Concern

Trying to Find a validating group of partners Increase sales velocity Cross the chasm

But you lack… Time

Horizon 3H

oriz

on 3

36-72 months

Create a Category

Trying to Find a meaningful sponsor/partner Create PR buzz

But you lack… Capex

Gro

wth

/ M

ater

ialit

y M

atri

xHigh

GrowthLow

Growth

Material

NonMaterial

BA

CD

Growth Mature

Emerging Declining

Growth: Low=0-9% High=15%+Material = 5%+ of Total Revenue or Profits

Hor

izon

Mov

emen

t High Growth

Low Growth

Material

NonMaterial

BA

CD

Horiz

on 2

Horiz

on 0

Horizon 1

Horiz

on 3

Hor

izon

Res

ourc

e As

sign

men

ts

1

2

3

70%

20%

10%

Model to be a Sustained Innovator

In theory, there is no difference between theory and practice.

But in practice, there is.

Yogi Berra

2010

Com

pani

esHigh

GrowthLow

Growth

Material

NonMaterial

BA

CD

Microsoft, Intel, IBM, Oracle, HP, SAP, Dell

Growth: Low=0-9% High=15%+Material = 5%+ of Total Revenue or Profits

Apple, Google, NetApp, Cognizant, Sybase, Cisco

Hor

izon

Mov

emen

t High Growth

Low Growth

Material

NonMaterial

BA

CD

Horiz

on 2

Horiz

on 0

Horizon 1

Horiz

on 3

It takes many more resources to generate $1

of revenue in H2 than in H1.

Real

ity

of R

esou

rce

Assi

gnm

ents

1

2

3

48%

33%

19%

Sustained Innovators

70%

20%

10%

Theory

90%

8%2%

Most non-SI

Let’s talk about why that is…

Reco

mm

ende

d Re

adin

g *The Alchemy of GrowthMehrdad Baghai

*Escape VelocityGeoffrey Moore

*Managing the Innovation PortfolioHarvard Business ReviewMay 2012

*Transformational Growth Through InnovationResearch & Technology Executive Council2010