the rise of the lean enterprise - future of business 20-oct-14

DanielRingrose

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DanielRingrose

Tuesday, 21 October 2014 DanielRingrose

¹ PWC Pulse 2013² McKinsey M&A Playbook

³ 15 years experience

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DanielRingroseTuesday, 21 October 2014

¹ Associated Press


PROBLEMTop 3 Problems

SOLUTIONTop 3 Features

KEY METRICSKey activities to

measure

UNIQUE VALUE

PROPOSITIONSingle clear compelling

message that states why you

are different and worth buying

CUSTOMER Target Customers

UNFAIR ADVANTAGECan t be copied

CHANNELSPath to customers

COST STRUCTURECustomer Acquisition Costs, Distribution Costs,

Operations, People, etc

REVENUE STREAMSRevenue Model, Lifetime Value, Gross Margin


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WATERFALL INVENTION

AGILE

Solution Feature Value Verified

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Solution Feature Value Assumed

PLAN LAUNCHDESIGN BUILD TEST

PLAN LAUNCH

DESIGN BUILD

TEST

IDEA COMMERCIALIZE

THEORYTEST

LEARN

DESIGN BUILD

TEST

THEORYTEST

LEARNRepeat

LEAN STARTUP

IDEA SCALE

Repeat

Repeat

$ $

$ $

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EMPATHIZE

DEFINE

IDEATE

PROTOTYPE

TEST

LEARNBUILD

IDEAS

DATA

MEASURE

PRODUCT


Startup Founders

TechPartners

UX Partners

TECHNICAL LEAD

a.k.a. Hacker

EXPERIENCE LEAD

a.k.a. Hipster

Startup Team Structure

Domain Experts

BUSINESS LEAD

a.k.a. Hustler

2.5% 13.5% 34% 16%34%

Early Adopers

InnovatorsEarly

MajorityLate

MajorityLaggards

Customer Discovery

Customer Validation

Customer Creation

Company Building

STARTUP GROWTH SCALE MATURITY

Search for Problem & Solution Fit

Search for Product & Market Fit

Market Disrupted

DECLINE

Transition

Find these customers

Rogers Innovation Adoption Curve


Create a separate

innovation capability

Learn how culture

develops in the lab

Engage key leaders

to build new policies

Adjust processes

to empower staff

Reinvent corporate

culture from within

Build a standalone innovation group to avoid internal barriers

Set a clear vision and strategy, but resist scaling and ROI to encourage learning

Drive experiments from ideation pool to find success examples

Once the teams are getting results, focus on how they operate

Find the repeatable processes, and record

Measure any process changes as MVP s

Ensure processes help and don t hinder staff

Share information of how the standalone team works and wins

Find why current policies exist, then find the root cause

Agree the steps to strategically start shifting the culture

Start shifting internal processes to apply new ways of working

Measure employee and operational performance stats

Apply new policies for HR and Finance, then Marketing and IT, then Sales and Ops

Use the changes to promote culture shift

Reconsider strategic direction based on innovation discovery

Disrupt your own marketplace with new business models

Evolve with customer engagement metrics


STAFFEngaging founders, partners, and

training people for your lab

Evaluate existing startup partners, innovation teams, and projects

Find lab key employees Source business project founders Define training needs Apply new incentive models Plan founder shares and SPV s Negotiate vendor contracts

STRUCTUREBuild methods, tools and controls to

operate your innovation lab

Prepare idea capture pipelines Create brand and PR assets Set customer testbed groups Agree governance, approvals and

reporting methods and owners Prepare office and infrastructure Prepare build and testing tools Prepare launch events (if needed)

STRATEGY Agree the vision, model and goals for your company and capabilities

Capability and opportunity audit Agree the engagement models

that are right for your company Confirm lab sponsor and board Work with executives to outline

innovation lab operations Allocate budget and set objective Define brand and entity approach


























STAFF STRUCTUREFOUNDATION

CAPTURE IDEASBusinesses are full of opportunities to find ideas, but need ways to ask

Customer complaints Customer surveys Competitions Employee interviews Online suggestion box tools Staff performance reviews Experience / Ideation workshops Five why s root problem analysis

CHOOSE IDEASDecide which ideas to test based on data, not just executive opinion

Idea sharing and voting by Teams, Staff and Customers

Online idea management tools Idea pitch days Strategic direction support Competitor activity pressure

TEST IDEASGather information to learn about the idea and measure demand

Customer interviews Online surveys Landing pages Pre-registration and pre-orders Paper prototypes Mockup features Video s Adwords and social media adverts



CHOOSE IDEAS TEST IDEAS

DISCOVERCreate MVP s to test business model hypotheses through rapid experiments

Business: Test multiple business concepts in parallel. Measure results

Experience: Focus on core messages to best solve problems for customers

Technology: Use simple tools for rapid build & change of concepts

REFINEUse learnings to tune and focus offers. Drive customer engagement

Business: Narrow business model to areas with highest engagement

Experience: Reduce friction and simplify for customer use

Technology: Optimise architecture around key functions while tuning

GROWBuild out gaps and part-align to core business, still maintaining innovation

Business: Fill in features to support adoption by wider customer base

Experience: Polish E2E customer journeys, visuals, and align to core

Technology: Focus on stability and integration of data to core platforms

IDEATION



CHOOSE IDEAS TEST IDEAS

REFINE GROW

SCALEUse corporate strength to drive

adoption by corporate customer s

Sales and Marketing bundles Operational support merged Technology enterprise grade New contracts with suppliers

TRANSFERBuild methods, tools and controls to


Founder exits or transfers payday Team transfer onto next business Corporate has full ownership Encourage learning to continue

INTEGRATEConnect new business models and solutions into core corporate model

Support transition of team culture Integrate data and identities Build into operational platforms Train core business staff

TRANSITION TO BAU

IDEATION

CREATION