1. This presentation is owned by GC Venture Consulting. It is for the sole use of intended audiences or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be altered or modified without the express written permission of GC Venture Consulting or its partners. 2014 GC Venture Consulting. All rights reserved. 2-SESSION WORKSHOP FOR EXECUTIVE MANAGEMENT

2. 2014 GC Venture Consulting. All rights reserved. Workshop objective Corporations can save considerable amounts by taking advantage of innovations in the field of marketing. Among such innovations are technologies and platforms that: Enable them to reach customers more efficiently Better understand their needs and wants Engage them in a way that increases their loyalty This workshop is primarily concentrated on this arena and its objective is to increase your turnover, market share and customer retention. 3. 2014 GC Venture Consulting. All rights reserved. BEFORE WE BEGIN Together, we will identify the challenges ... ... and work together to overcome them. 4. 2014 GC Venture Consulting. All rights reserved. TOPIC 1: IDEOLOGICAL Is innovation an integral part of your business strategy or does it orbit around it? TIME: 00:00 00:45 Corporate Strategy Innovation 5. 2014 GC Venture Consulting. All rights reserved. Innovation in relation to Corporate Strategy Innovation is essential for continued corporate growth, yet successful growth reduces the ability of corporations to innovate. Corporate Strategy Incubators, Accelerators & Labs Events, Conferences & Competitions Innovative Positions & Divisions Investments & Aqcuisitions Innovative activities orbit the company strategy but are not part of it. Corporate Strategy Incubators, Accelerators & Labs Events, Conferences & Competitions Innovative Positions & Divisions Investments & Aqcuisitions Disconnected Integrated Innovative activities are an inseparable part of the company strategy. 6. 2014 GC Venture Consulting. All rights reserved. TOPIC 2: METHODOLOGICAL What factors slow or prevent innovation investments within your organization? TIME: 00:45 01:30 Innovation Disconnect Fear Change Capacity 7. 2014 GC Venture Consulting. All rights reserved. Factors that limit innovative investment Innovative element Strategy Risk Structure Accountability Change Overload Tack of a central, cohesive strategy that includes innovation as a core element. This type of strategy is based solely on established methods and leaves no room for innovation despite the fact that innovation could render the strategy more effective. A restrictive risk perception leads corporations to evaluate the risks of adopting an innovative element while the risk of not doing so remains unaddressed. Cumbersome decision-making layers often prevent timely adoption. Innovation managers are seldom authorized to make investment decisions as they are not the end- users. They therefore have to present to others within the corporation and reaching a decision may take 1 2 years! Being accountable for an investment decision plays a key role in preventing innovation. The manager that never makes a decision to invest in innovation assumes less personal risk than the one that does. This practice, however, exposes the company to greater risk as it becomes less competitive. The corporate structure may appear to support innovation while it is actually inefficient and counterproductive. R&D departments are often put in charge of innovation but cannot assess an innovative element that falls outside the scope of the companys main line of business since that is what R&D departments are usually built around. Changes within the corporation can lead to relapse. An innovator that has been in talks with a key individual within an organization may suddenly find that he or she has been replaced. This often sends negotiations back to square one with serious loss of time and may result in lost competitive advantages. Information overload can overwhelm anyone. Knowing what innovative elements are available and how to combine them most effectively is a full-time occupation that managers do not have time for. As long as innovation remains outside the corporate strategy, this problem will persist. 8. 2014 GC Venture Consulting. All rights reserved. TOPIC 3: STRUCTURAL Is your innovation budget truly structured toward innovation? TIME: 01:30 02:15 Sam Determines request validity Ben Needs approval from Kim Kim Needs approval from Mary Mary Needs approval from Betty Betty Needs approval from Sam Sam Authorizes the investment Betty Relays decision to Mary Mary Relays decision to Kim Kim Relays decision to Ben Ben Has moved on May 2014 Opportunity identified August 2015 Opportunity lost 9. 2014 GC Venture Consulting. All rights reserved. Inverting the budget authorization process Innovation/R&D Budget Finance Purchasing Comptroller Budget Payroll Operations Production Safety Environmental Quality Marketing Research Promotion Distribution Selling IT Security Network Data Support Innovation/R&D Budget Finance Purchasing Comptroller Budget Payroll Operations Production Safety Environmental Quality Marketing Research Promotion Distribution Selling IT Security Network Data Support Top down Bottom up R E Q U E S T D E C I S I O N D E C I S I O N C O N F I R M A T I O N A reconfiguration of R&D/Innovative budgets enables autonomous decision-making at multiple levels within corporate divisions. 10. 2014 GC Venture Consulting. All rights reserved. TIME TO RECHARGE & PROCESS When we take our minds off things ... ... we see them more clearly. TIME: 02:15 02:45 11. 2014 GC Venture Consulting. All rights reserved. SECTION 4: PRACTICAL These are the challenges; now lets deal with them systematically TIME: 02:45 03:30 12. 2014 GC Venture Consulting. All rights reserved. END OF WORKSHOP IA-1 SESSION 1 In case questions arise regarding the approach we decided on or you need additional support before we reunite during the second part of this workshop: Snorri H. Gudmundsson, MBA Marketing Management Tel: (+354) 693 2061 Email: shg@gcventureconsulting.com