ayes2010 - dean stanton
DESCRIPTION
Dean Stanton Director, Head of Strategy – BrandGreen Strategy Consultants Pte Ltd Dean has 17 years’ international experience in strategy, innovation and private equity. Over the past 6 years, he has been intimately involved in the successful creation and launch of a series of low carbon ventures. From February to August 2010 he led the detailed proposition development work for the new Singapore Carbon Label, the first of its kind in the region. He has collaborated with the UK’s Carbon Trust since 2006, creating valuable new businesses in sectors as diverse as Green IT, Renewable Energy, Low Carbon Buildings, Sustainable Change and Carbon Footprinting, including the initial ideation work which led to the world’s first Carbon Label. Formerly, Dean has worked at senior levels with The Boston Consulting Group, OC&C Strategy Consultants and Arthur Andersen. He holds Bachelors and Masters degrees from the University of Cambridge, is a Course Instructor with SIMTech in Sustainable Manufacturing, and has taught innovation, entrepreneurship and corporate strategy on a number of prestigious MBA programmes worldwide.TRANSCRIPT
AYES 2010
(Sanitized Version)
Innovation as Process:
Lessons from the
Corporate World.
Today
Background
About Us
Innovation as Process
White Space, Proposition Development
Case Study (deleted from this version)
Carbon Trust Enterprises
Today
Background
About Us
Innovation as Process
White Space, Proposition Development
Case Study
Carbon Trust Enterprises
Put simply We work with boards of
directors and senior
management to turn their
most strategic sustainability
challenges into business
opportunity.
• Financial
• Non-financial
Building the business case
Developing a real world action plan
• Top level strategy
• Tactics on the ground
• Helping clients see how doing the right thing makes powerful business sense
• Working closely with clients to build an actionable strategy
Making sustainability “business as usual”
• Staff
• Customers
• Suppliers
• Community
• Helping make the changes that lead to breakthrough transformation
(1) Sustainability strategy.
.
… guiding clients on the long term journey to sustainability
New products, services, brands and businesses
BrandGreen innovation process
Opportunity Evaluation
Commercial Proposition “Scope”
Business Case “Develop”
Proof of Concept “Build”
Establish Business “Launch”
Decision Gates
Go / No Go Board Launch Ready Idea Screening
Fast track: from idea to reality in 3-6 months
(2) Strategic innovation.
… our structured approach to innovation maximizes success rate and speeds time to launch
New ideas
Government
Investors / advisors Education / IOs / NGOs
Corporates
… from top 100 companies and financial investors, to government agencies and NGOs
Our clients.
Today
Background
About Us
Innovation as Process
White Space, Proposition Development
Case Study
Carbon Trust Enterprises
Observations.
Innovation is much talked about these days.
Few understand what it means in the real world, and fewer still actually
practise innovation in a meaningful way.
Innovation
As Process
Many equate innovation
with entrepreneurship,
yet the world’s most
successful innovators
historically have been
larger corporates.
Today we will look at:
The concept of “white space”
The structured innovation process
Examples from the corporate world that may be of value to young entrepreneurs (next section)
“White Space”
Innovation
As Process
Enterprise Proposition
Branded Proposition
Filters
Market Failure Significant emissions Reductions not happening
Market Attractiveness Customer demand Trends
Green IT Opportunity Landscape
Right to Play Competitive advantage Feasibility
Want to Play Fit with assets and skills Do-ability
… abnormal returns can be achieved by identifying and capturing white space opportunities
[Indicative Only]
Structured innovation.
Innovation
As Process
…well developed innovation methodologies and tools are available to support decisions at each “stage gate”
Commercialisation “stage gate” methodology
Formal ideas capture.
…there isn’t scope today to look at the varieties of ideation, but we can reinforce the need for rigour in documentation
Capturing:
Description of the idea
Who are the target customers?
What needs does it address?
How do we make money out of it?
Validation questions?
Proposition development.
Lifting the lid on innovation practitioners’ trade secrets!
Capturing:
Customer needs
Precedents and parallels
The opportunity How? Benefits?
Target customers
Sizing the
opportunity
High Level Opportunity Summary Template
Proposition development.
Capturing:
Existing players
Existing products
Relative competitive advantage
Sizing and growth rates
Key criteria for comparison
Mapping the market and identifying the high growth, high value white space
Market Map Template
Proposition development.
Capturing:
Clear articulation of the target market
Precise identification of the customer needs that are currently unmet
Mapping of which competitors are playing in which part of the space
Clear description of the opportunity scope and boundaries
Clearly articulating the opportunity
Opportunity Definition Template
Proposition development.
Capturing:
The future direction of the new product / business
New market sectors / customer segments
Geographical expansion
Feature migration
Product / service enhancements
Mapping the future sustainability / migration path options over time
Sustainability Map Template
Proposition development.
Capturing:
The capabilities needed to capitalise on the identified opportunity
Mapping existing capabilities and assets
Identifying capability gaps
Highlighting strategies to close the capability gaps
Mapping the capability needs and performing detailed capability gap analysis
Capabilities Template
Proposition development.
Capturing:
The revenue model: how you make money
Key assumptions
First five year revenue projections
Defining the revenue model and developing base case financial projections: financial attractiveness
Financial Headlines Template
Proposition development.
Capturing:
Risks
Issues
Mitigation approach
Risks and issues capture schedules, completed throughout the project, will avoid surprises and enable course correction
Risks and Issues Template
Templates
10 Page Proposition
Template
Generic proposition template
XX Month 2010
Sub-header
Add logo
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xxx
xxx
xxx (Source: xxx)
xxx
xxx (Source: xxx)
Customer needs Addressable market and trends
23
xxx
Low High
Low
High
XXX
XXX
XXX XXX
XX
XX
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The opportunity
Competitors
The customer needs and market
xxx
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The proposition –
“xxx”
xxx (Source: xxx)
“xxx”
xxx (Source: xxx)
xxx
xxx (Source: xxx)
Profitability H xxx
Acquisition M xxx
Retention L xxx
The customer The proposition
Why (company)?
26
Sustainability map
xxx
xx
• xxx
Time
xxx
xxx
xx
• xxx
xxx
27
Capabilities
Capabilities required Existing capabilities within
xxx H M L • xxx
xxx H M L • xxx
xxx H M L • xxx
xxx H M L • xxx
xxx H M L • xxx
xxx H M L • xxx
xxx H M L • xxx
xxx H M L • xxx
xxx H M L • xxx
xxx H M L • xxx
xxx
xxx
xxx
There are some capability gaps emerging
28
Xxx
xxx
• Xxx
– Xxx
Xxx
xxx
• Xxx
– xxx
Xxx
xxx
• Xxx
– Xxx
Xxx
xxx
• Xxx
– xxx
Financial headlines
(SGD m unless stated) Year 1 Year 2 Year 3 Year 4 Year 5
XXX £ £ £ £ £
Revenue projections
Revenue model Assumptions
29
Risks and issues management
Risks and issues Mitigation approach
• xx • xx
• xx • xx
• xx • xx
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• xx • xx
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Next steps
XXX
• X
• X
• X
• X
• X
