Companies can think like a startup too

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!