companies can think like a startup too
TRANSCRIPT
Companies can think like a startup too!
Franki Chamaki- Cofounders -
Red Garage Ventures
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Source: Bloomberg, McAlinden Research Tobacco's New Fix: Pot & E-cigs, July 28, 2014
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The W.D. & H.O. Wills Warehouse
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Mid 1900
Late 1900
Early 1900
Est 1904From commodity to value ….to experience?
CCA always looked for ways to grow and always looked for ways to challenged the status quo
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…challenge the status quo?
When is it a good time to...
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…think differently?
When is it a good time to...
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When is it a good time to...
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1. Understand what is innovation
2. The i-Paradox3. Why we innovate
4. Types of innovation
5. The 5 i-Skills
Part 1 - Where are we travelling to today…
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Before we ….
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What does innovation mean to you?
What is innovation in one sentence?
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What is innovation?
What’s the difference between?
innovation
CreativityInvention
If valued, it’s priced. If priced, there is a business opportunity.
New growth.
An enabler of new value
CreativityInvention
Innovation
ThoughtIdea
CreationValue
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How do you know when it's time to innovate?
2007Kindle
(e-book readers)
?Lets consider….
Source: “Bookseller Borders Begins a New Chapter 11”, Wall Street Journal, 7/2/11, By Joseph Checker and Jeffrey Trachtenberg
1994Amazon
(online store)
1971Founded
(USA)
2005Stores
Est.1300
2010Stores
Est. 600
2011“Chapter 11”
18 Sept 11
Original Borders bookstore, Michigan,
"Books & Music"
2003Apple iTunes(April 28)
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So, when to
innovate?
Innovation Paradox
When times are good (<2005), and you have ability to do things
differently, the urgency (or desire) is not there
When times are bad (<2010), and you urgently need to do things
differently,
your ability to change is hard
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We asked the question
Will the way your company operates in the future be different
to the way it operates today?
If so, how different?
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Trends & constraints to growth…
Customer preferences Competitors pressure
New HorizonsRegulation push/uncertainty
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These trends are placing constraints to growth
Lack of access to capital
Excessive regulation
Substitution/innovation by competitors
Increasingly sophisticated consumers
Cost/availability of talent
Competitor environment
0% 20% 40% 60% 80%
37%
52%
60%
64%
73%
77%
When asked executives their thoughts on top constraints to growth…
Source: Mar 2005, McKinsey Quarterly survey, n =9345
…and so what are capabilities is most valued to overcome these?
Ability to manage costs
Ability to allocate capital
Ability to manage globally
Ability to find best talent
Ability to innovate
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
4%
10%
17%
25%
43%
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Associating
Networking
QuestioningObservingExperimenting
Coca-Cola
How do you find innovative people within Coca-Cola Amatil? And how
can you become a more innovative leader yourself? Clayton
Christensen
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Types of innovation
1. Incremental innovation:
Sometimes called continuous
improvement.
2. Radical
innovation: Sometimes called
revolutionary, typically leveraging the same
business model.
3. Transformational
innovation: Sometimes called
disruptive innovation - this changes strategy. Creates a
new business model.
Return
Risk
70%
20%
10%
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1. Lean start-up thinking
2. Real examples(turning guesses into fact)
Part 2 – Applying innovation thinking
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Is an iterative process to reduce risk in searching for a right business
model based on validated learning.
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Its about converting an assumption (guess) into a fact
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We use three key things
Create aMinimum
Viable Product(MVP)
Test withCustomers
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Identify the top
(i.e. “riskiest”)Assumption
Our realexample
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Say we have an idea, how can we quickly test it?
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$25 domain + $140 webhosting = $165(via strikingly.com) created in 45mins
Experiment #1 - Riskiest assumption (i.e. top guess)
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1st assumption: People want to receive “text” coaching from their mobile
Minimum Viable Product
(site explains the value proposition)
Customer(Staff wanting to
get fit)
People want to receive “text” coaching from
their mobile
$0 WhatsApp + $2,200 personal trainer = $2,200 (via WhatsApp) created in 2mins, ran for 6 weeks
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2nd assumption: People stay motivated and able to reach their goals
Minimum Viable Product
(WhatsApp + Trainer)
Customer(People training
for Sydney ½ marathon)
Experiment #2 - 2nd riskiest assumption
People stay motivated and able to reach
their goals
$0 Website + $2,650 (so far) app + $2,200 p/t = $4,850 Created in 60mins, running over 6 weeks
Experimenting with Sydney Harbour RunnersPage 30
3rd assumption: People will pay $39 per month for NudgeFX
Minimal Viable Product
(Sign up site and app)
Customer(Sydney Harbour
Runners)
Experiment #3 - 3rd riskiest assumption
People will pay $39 per month for
NudgeFX
So, how to you actually do this today?
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1. Document your assumptions
2. Identify the riskiest
3. Systematically test
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So you have a great idea?
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Prove it!