briefing innovation compass (by guy bauwen)

Copyright Dr. Guy Bauwen - 2012 19-9-2012 1

Innovation Compass

How to develop a market and build

a successful business

iLab Turning innovation into business

Prof. Dr. Guy Bauwen

Director Knowledge Center

Entrepreneurship & Business Innovation

Rotterdam University of Applied Sciences

Rotterdam, September 18, 2012 [email protected]


International

Entrepreneurship Innovation

Marketing

Finance Creativity

Attitudes &

Talent

Labor

Practices

Knowledge

Center

Entrepreneurship

& Business

Innovation

Major activities:

1. Knowledge Development.

2. Knowledge transfer.

3. Knowledge dissemination.

4. Knowledge valorization.

5. Knowledge Funding.

Innovation Compass: Knowledge Center Entrepreneurship &

Business Innovation

A strong team of proven academic and business domain experts.

Relevant & rigor research projects in collaboration with educators & students

9/19/2012 © Bauwen Consulting - 2011.

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© Bauwen Consulting - 2011.

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3

Fuzzy

Front

End

End

Game

①

Filter

②

Develop

③

Grow

④

Manage

1 2 3 4

Upstream: ideation, filtering, incubation, new product development are critical.

Downstream: introducing, accelerating, managing & pruning are important stages.

Research domain: the innovation life cycle.

Innovation Compass: Knowledge Center Entrepreneurship &

Business Innovation


• Why is the growth race into new territory

for new ventures so challenging?

• How do most new ventures confront the

brutal external and internal realities?

• Why fail most new ventures to deliver the

desired and expected outcome?

• How can new ventures influence their

destiny and reach their destination?

• Which diagnostics, tools & techniques

can new ventures use to succeed?

Organisation

Entrepreneurship

Marketing

Sales

Innovation

Strategy

Innovation Compass: Challenges that will be addressed

Innovation and entrepreneurship are on top of the agenda … Why is the

mortality rate so high? What can we learn from successes & disasters?


Not satisfied with

innovation measurements

Time-to-Volume

not monitored Not satisfied & underperform

at the commercialisation stage

60%

40%

Commercialisation not a regular

leadership subject

Absence of formal processes

ad-hoc decisions

Some facts and figures:

90%

10%

67%

33%

68%

32%

56%

44%

Innovation Compass


• External view

• Five forces: industry attractiveness Industry

Attractiveness

• Internal view & uniquenes

• Resources, processes, values

Resource Based View

• Complement your resources

• Leverage external resources Resource

Dependency View

• Adapt to the environment

• Adaptability & agility & alignment Dynamic

Capabilities

• The sky the limit

• Stretch & go for it Strategic Intent

Innovation Compass: Which lenses do you use?


Understanding the

battlefield & the context

Market dynamics

Competitive positions &

moves

Translating

strategies in actions

Blueprint for action

Monitoring key

indicators

Assessing alternatives

for the company,

customers, strategies

Determining objectives

& goals

Part 1

Part 2

Planning Overview

Innovation Compass: Market Development Models


Time

Desired

Outcome

Vision

Mission

Strategy

External forces

Internal forces

Barriers

Drivers

Threats

Opportunities

Strenghts

Weaknesses

Goals Intent

Resources

Processes

Values 1

2

3

Innovation Compass: Market Development Models


Connecting Sensing

Screening

Speed of

Decision Making

Scaling

Stretching

Seizing

Synchronizing

Internally / Externally

Strategic

Intent

Ambidextrous

Monitoring & Measuring

Innovation Compass: Diamonds of success

Sensing (Connecting)

Capabilities


o Seeing/Listening: have antennas in position;

continuously explore external and internal opportunities.

o Filtering/Interpreting: filter your knowledge, make

choices, determine priorities, take actions.

o Decision making speed: act with agility = adaptability

+ speed and execute as a laser beam.

“Our approach for capturing insights was inadequate for

embryonic markets” Core Routing Manager

“Sensing requires you are open to the world ... You don’t wait until

opportunities come to you”

Sensing is about identifying new growth opportunities,

selecting targets, and acting with agility & anticipating.

Scaling (Shaping) Capabilities


o Scaling right: is about tailoring and bundling your

offering and determining your positioning.

o Scaling down: is about modularizing, simplifying

and optimizing the time to close your orders.

o Scaling up: is about serving demand directly and

indirectly influencing the way the market develops.

Scaling is tailoring and modularizing offerings and influencing

the way the market develops

Shaping

Growth is oxigen

“Be enthusiastic, show passion, but remain with both

feet on the ground”.

“In the battlefield there is no time for learning and watching, but for

the right and the fastest execution”


o Screening: assess fit and attractiveness of

existing and new partners.

o Selecting: make sure the right partners are

chosen and the right mix of partners are active.

o Sharing: walk the talk and exchange

knowledge.

“If I could go back in time, I would definitely evaluate,

select much faster strategic partnerships, decide with

a sense of urgency”.

Collaborating Capabilities

“Don’t just relate … Collaborate“.

Collaborating starts by assessing and selecting the right

partner at the right time and do the right things.


o Seizing: making the right decisions and executing

with discipline.

o Spearheading: getting the time to close an order

under control, to keep promises.

o Synchronizing: make sure the organization is

operationally in line with the market.

“As long as you have not elevated the discussion to a higher level of

business talk, you remain in the technical doldrums”.

Capturing (Seizing) Capabilities

“Measurements drive management decisions & actions”.

Seizing capabilities is about making the right decisions and

executing with discipline


o Mobilizing: energizing & motivating the

stakeholders to move ahead.

o Strategic conflict & dialogues: using constructive

conflict to navigate thru any situation.

o Dynamic stability & ambidexterity: being real

time aligned with the environment.

“People who lead frequently bear scars from their efforts to bring about

adaptive change. Often they are silenced. On occasion they are killed.”.

Leading Capabilities

“Achievers ignore the boundaries of the old and have the courage to

explore the new”

Leading capabilities are ambidexterous, are able to confront

constructive conflicts & leverage dialogues


Lessons for young entrepreneurs

1. Limited business opportunities. Not every good idea can become a great business. Just

because you passionately believe that your product or service is great, and everyone needs it,

doesn’t mean that everyone will buy it. There is no substitute for market research.

2. No written plan. Don’t believe the myth that a business plan isn’t worth the effort. The

discipline of writing down a plan is the best way to make sure you actually understand how to

transform your idea into a business.

3. No revenue model. Even a non-profit has to generate revenue to offset operating costs. If

your product is free, or you lose money on every sale, it’s hard to make it up in volume. If your

customers have no money, your business won’t last long.

4. No intellectual property. If you expect to seek investors, or you expect to have a

sustainable competitive advantage against giants in your industry, you need to register for

patents, trademarks and copyrights, as well as enlist non-compete and non-disclosure

agreements to protect trade secrets. Intellectual property is also often the largest element of

early-stage company valuations for professional investors.

5. Too much competition. Having no competitors is a red flag - it may mean there’s no market

- but finding ten or more with a simple Google search means your area of interest may be a

crowded. Remember, sleeping giants can wake up. So, don’t assume that Microsoft or Procter &

Gamble are too big and slow for you to worry about.

Innovation Compass: Top Reasons Why First-Time Entrepreneurs Fail

Source: Martin Zwilling, Entrepreneur, September 15, 2012.


Lessons for young entrepreneurs

1. Can’t execute. When young entrepreneurs come to me with that “million dollar idea,” I have to

tell them that an idea alone is really worth nothing. It’s all about the execution. If you’re not

comfortable making hard decisions and taking risks, you won’t do well in this role.

2. An inexperienced team. In reality, investors fund people, not ideas. They look for people

with real experience in the business domain of the startup, and people with real experience

running a startup. If this is your first time around, find a partner who has “been there and done

that” to balance your passion and bring experience to the team.

3. Underestimating resource requirements. A major resource is cash funding, but other

resources, such as industry contacts and access to marketing channels may be more important

for certain products. Having too much cash, not managed wisely, can be just as devastating as

too little cash. Don’t quit your day job until new revenue is flowing.

4. Not enough marketing. Having a slick word-of-mouth marketing strategy isn’t enough to

make your product and brand visible in the relentless onslaught of new media out there today.

Even viral marketing costs real money and time. Without effective and innovative marketing

across the range of media, you won’t have customers - or a business.

5. Giving in too early. The most common cause of startup failure is the entrepreneur just gets

tired, gives up and shuts down the company. Despite setbacks, many successful entrepreneurs

like Steve Jobs and Thomas Edison kept their vision until they found success.

Innovation Compass: Top Reasons Why First-Time Entrepreneurs Fail

Source: Martin Zwilling, Entrepreneur, September 15, 2012.

briefing innovation compass (by guy bauwen)

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