intrapreneurship or extrapreneurship?

IntroInnovationUnknown watersReasonable risk?CultureOpenness

INTRA- OR EXTRAPRENEURSHIP?Alcatel-Lucent / MerkaptPhilippe MÉDA, Mai 2012


Philippe MÉDA / business designer


Our secret sauce

startups multinationalspeople

in transition

Innovativebusinessmodel

X X+( ) ( )


Innovation as seen in MBAs


(Real life)


Thomas Edison

Light bulb inventor orCo-innovator of the energy grid?


Innovation accelerates


38 Years

13 Years

4 Years

3 Years

88 Days

Time to reach 50 millions users

Really!


Really!


Crisis accelerate further


2002

Innovation doesn’t care about your product



Product?Service?

Experience?Way of life?


We don’t see the future*

«There is little reason for an individual to have a computer in their home»Ken OLSEN, CEO Digital Equipment, 1977


«Slow hunch»



(Even them)


« Within a group of macaques, the last to adopt innovation are alpha males»

François TADDEI (Laboratoire de Génétique Moléculaire Evolutive et Médicale, U571 INSERM)

Innovation vs. status quo


Planification Improvisation

Dumb Luck

Innoriskation


Unknown waters


«Here be dragons»


Will it work?

Will somebody pay for it?

Market risk

Techno risk

Unknown waters


Incremental

Unknown waters

Market risk

Techno risk


Incremental

Significative

Unknown waters

Market risk

Techno risk


Rupture

(aka WTF)

Unknown waters

Market risk

Techno risk

Incremental

Significative


ROI Horizon

Innovationpipeline

Unknown waters

RIM SonyNokia

Market risk

Techno risk


Unknown waters

CustomerIntimacy

Operational Excellence

(???)

Product Leadership

Market risk

Techno risk


Unknown waters


Innovation Killers : How Financial Tools Destroy Your Capacity to Do New Thingsby Clayton M. Christensen, Stephen P. Kaufman, and Willy C. Shih, Harvard Business Review, 2008.

DCF Trap

Fixed & Sunk CostsEarnings /Share FocusStage-Gate Innovation

Unknown waters


Unknown waters


Is there such a thing as a reasonable risk?


Innovationpipeline

Strategicportfolio Intrapreneurship

3 Strategies


3 Strategies

Innovationpipeline

We know the problemand the solution

In-house

Status quox ROI

Stock market valuation


3 Strategies

Innovationpipeline

Strategicportfolio


We know the problem, and don’t believe there’s a

clear solution yet

In-house Outsource

Status quox ROI

Budgetx Skills

Stock market valuation


3 Strategies

Innovationpipeline

Strategicportfolio Intrapreneurship


In-house?

We know the problem, and don’t believe there’s a

clear solution yet

In-house Outsource

We don’t really get the problem yet,

but we are the best to create a solution

Status quox ROI

Budgetx Skills

Politicsx Freedom

Stock market valuation VISION


Escape velocity

IntrapreneurPoliticsx Freedom


Get a «Privateer letter of marque» Get «Rules of engagement»Navigate out of the pipeline«Steal» resources from BUs

Be neither in nor outTrap competition in a guerilla

Shortcut decisionsCreate an open network

Flirt with IP infringementSell mockups and prototypes

Pivot when necessaryRamp up...

Or fail and learn fast

Politics x Freedom

The buccaneer’s guide


Incubation

trainingconsultingcoaching

mentoring

Planned innovation vs. Actually doing something

➊ BOOT

«IN»Rules of engagement6 months

➋ BUFF

«THROUGH»Explore and fail early6 months

➌ BOOST

«OUT»Plug in the ecosystem6 months

5 prototypes sales

30 ideas

300

10 3


Removing stage gates


Corsairs want to retire (eventually)


Why intrapreneurship?

Budget Profits

9099

101

IntraPipe

#1 Culture #2 Opportunities #3 Resilience


(Solution: it’s a bank)

#1 Culture


«Financial reverse-engineering»

#1 Culture


#1 Culture


Sexy

#1 Culture

Eliminate wasteFail early

Pivot / Iterate fastGet to actually know customers!


TECHNOLOGY PATENTS ROI

MORE SPECS

COMMODITIZE

SPECIFICATIONS

Innovation pipeline


ADDEDVALUE

BUSINESSMODEL REVENUES

CHANGETHE MARKET

( TECHNOLOGY )

Entre / Intra-preneurship


Degree of openness


Degree of openness

Outsiders

StartupBU

Employees Blue Ocean

FinalStructure

Innovators


Outsiders

StartupBU

Employees

OpenInnovation

Blue Ocean

FinalStructure

Innovators

Degree of openness


1. EXTERNAL R&D Innocentive, P!zer...

2. COOPETITION Mobile, Google, ...

3. WALLED GARDENApple, Facebook,

Salesforce...

4. EXTREMEEXTERNALIZATION

ARM, ATI, Qalcomm...

5. CUSTOMERS DRIVEN INNOVATION P&G, Fiat, Kraft, Starbucks...

6. CROWDSOURCE Fold-it, Ushuhaidi, Open Gvt.

OPEN INNOVATION

Degree of openness


Outsiders

StartupBU

Employees Intraprenarship

OpenInnovation

Blue Ocean

FinalStructure

Innovators

Degree of openness


Outsiders

StartupBU

Employees

Extrapreneurship

Intraprenarship

OpenInnovation

Blue Ocean

FinalStructure

Innovators

Degree of openness


Outsiders Open challenge Open innovationwith customersCo-innovationwith partners

Public incubatorsResearch grant

Insiders Internships

Cross-BU creativityCorporate task force

Market researchStrategic focus

Incubation

trainingconsultingcoaching

mentoring

Work Outside InvestmentAcquisition

New partnershipNew coopetition

Spin-o!

Work Inside New versionNew productNew market

New business lineNew business unit

(Reincubation)

Degree of openness


Extrapreneurship

3. WALLED GARDEN

• One place to bind them all• Hardcore integration of user experience• No, or low, barrier of entry to play in• High ramp up potential

Apple, Facebook, Salesforce...


Outsiders Open challenge Open innovationwith customersCo-innovationwith partners

Public incubatorsResearch grant

Excubation

mentoring Work Outside InvestmentAcquisition

New partnershipNew coopetition

Spin-o!

Extrapreneurship


REVENIR AU COEURIBM, Seesmic, Zodiac

COLLISION DES BESOINS

Hôtel hospitalier (H. Dieu), tourisme médical

MINIMALISMEGoogle, Craiglists, Alibaba,

Dropbox, Youtube, Slideshare...

Nokia N9, Logan Dacia, Minecraft, Jolicloud,

Chrome OS, Boeing Scan Eagle

«BOTTOM-UP»P&G, GE...

INNOVATION OUVERTEInnoCentive, Spigit

«CROWDSOURCE»Wikipedia, Guerra

Creativa, Eyeka, 99designs, iStockphoto

EXTERNALISATION EXTRÊME

Taxi G7

CUSTOMISATION DE MASSE

Maqet.com

«NO FACTORY»Nike

RECRUTER LE CLIENTBeta tests, Apple At Home

Advisors, Labotec

MAXIMISERWoW, Star Wars, Dofus,

Disney

MICRO SÉRIESZynga, Shapeways,

archiduchesse

RECYCLER / REMIXER

FRACTALISERSmart 4x4

TRANSFORMER EN SERVICE

chaud-devant, restoin

PARTAGER L’ADDITIONCrowdfinancing,

friendsclear, mymajorcompany,

wyseed, lookatmygame, macminicolo.net,

colocation, location d’actifs, myfab

MICRO REVENUS

«FREE BUSINESS»limiter (freemium,

période essai, cathode) , appâter, sponsoriser

CHANGER LA GRANULARITÉ

KIndle singles, location auto, payer à la conso

TARIFICATION DYNAMIQUE

offre / demande, temps réel, matière première /

stock

LES CLIENTS DANS L’ENTREPRISE

tupperware, pesinet.org, clicboutique, goldenhook,

supermarmite

GUÉRILLAtupperware, pesinet.org, clicboutique, franchiser

PACKAGER

ÉLARGIR LA RÉMUNÉRATION

$ / recommendation / connaissance

CLIENTS INSOLVABLESmyrecyclestuff

DESTRUCTION CRÉATIVE

MARCHÉS EN CASCADES

Zeri, propagation

DÉPLACEMENTblue ocean

STATUFIERRolex, Channel 5,

McDonald’s

«GO GLOBAL»cavissima.com, levin2.0,

think as a website - go global, jedepose.com

«GO LOCAL»parenco.org,

BÉNÉFICE MUTUEL

«GO GLOCAL»Carrefour City

LONGUE TRAÎNEAmazon, Zappos

«GAMIFY»«micro-rewards», morsel,

epicwin

COURT-CIRCUITERiTunes, Auchan Drive

CONSTRUIRE UN ÉCOSYSTÈME

Google / Apple apps vs. Microsoft, Facebook /

Zynga vs. Myspace, Salesforce

ALLIANCES TEMPORAIRES

merkapt, DavidS vs. Goliath, bundle of apps

COOPÉTITIONIBM / Oracle, Microsoft /

Mozilla, logiciel libre, Peugeot 107 / Toyota

Aygo / Citroën C1

DÉCALER DANS LE TEMPS

crèche de nuit, recrutement de séniors

DÉMATÉRIALISERdigibidi

canaux de communication

modes de distribution

segmentsclients

offreproduits

activités et ressources

clefs

valeurajoutée

partenaires stratégiques monétisation

Structure MarchéO"re

Innovations

COPIER-COLLERJimmy Fairly


Excubation


If you got it right...

AL - MBA External Incubator

HackathonInternational Challenge

Bottom-up Innovation

Students?IPProductSDK

Thanks! Philippe MÉ[email protected]@PMerkapt

«I haven't failed ...I've just found 10,000 waysthat do not work.»

Innovation copilots

mailto:[email protected]

mailto:[email protected]

intrapreneurship or extrapreneurship?

Business

public incubatorsresearch grant

introinnovationunknown watersreasonable risk

status quox roi

innovation doesnt care

stock market valuation

market risk

techno risk

blue ocean