View
806
Download
6
Category
Preview:
DESCRIPTION
Scott Anthony, Managing Director, Innosight Ventures. Scott Anthony's presentation from the 2009 Take Action! Impact Investing Conference in San Francisco.
Citation preview
© Copyright 2009 Innosight Ventures Pte. Ltd.
Disrupting Investment
© Copyright 2009 Innosight Ventures Pte. Ltd. 1www.innosightventures.com
Innosight Ventures’ mission
Innosight Ventures uses the principles and patterns of disruptive innovation to foster the creation of booming growth businesses that improve the lives of unserved
and underserved customers around the world.
© Copyright 2009 Innosight Ventures Pte. Ltd. 2www.innosightventures.com
The theory and practice of disruptive innovation
Grounded in theory … … honed in the field
Disruptive innovation: An innovation that transforms an existing market or creates a new market through simplicity, convenience, accessibility or affordability.
© Copyright 2009 Innosight Ventures Pte. Ltd. 3www.innosightventures.com
What the research shows
Higher Chances of Success
“37% of companies with disruptive innovations succeed, while 6% of those with sustaining
innovations succeed”
Exponential Revenue Growth
“The businesses grew explosively … reaching an average of $250 million in their fourth year
and $750 million by the sixth year “
Disproportionate ReturnsDisruptors$220K, 41% CAGR
Incumbents$47K, 19% CAGRS&P 500$18K, 6% CAGR
“Our research shows the financial upside to disruptive innovation is real, significant—and
most importantly up for grabs”
$10K invested
Greater Resiliency
“Where stock markets sagged and market leaders stumbled, these companies grew on average by more than 30 percent a year. “
© Copyright 2009 Innosight Ventures Pte. Ltd. 4www.innosightventures.com
From theory to action: Four guiding questions
1. Is there an important “job” the customer can’t get done because existing solutions are too expensive, complicated to use or difficult to access?
2. Do we have a disruptive way to delight the customer by getting the job done in a simpler, cheaper, or more accessible way?
3. Can we make early profitability a choice?
4. Can we tell multiple stories that end with a $10 million business in 5 years and a $100 million business in 10 years?
© Copyright 2009 Innosight Ventures Pte. Ltd. 5www.innosightventures.com
Look for nonconsumers with an important job they are struggling to get done
10% Penetration
100%+ Penetration
40%+ Penetration#
© Copyright 2009 Innosight Ventures Pte. Ltd. 6www.innosightventures.com
Make it simple, accessible, and affordable
© Copyright 2009 Innosight Ventures Pte. Ltd. 7www.innosightventures.com
Make early profitability a choice
© Copyright 2009 Innosight Ventures Pte. Ltd. 8www.innosightventures.com
Why the possibility of early profits and multiple paths to success matter
More than 90% of successful new ventures start off following the wrong strategy
Flawed Strategy
Successful Strategy
Point of Learning and Adjustment
© Copyright 2009 Innosight Ventures Pte. Ltd. 9www.innosightventures.com
Doing good by doing well: Shankar’s story
© Copyright 2009 Innosight Ventures Pte. Ltd. 10www.innosightventures.com
Summary messages
• Transformation almost always takes root away from the mainstream; look to the nonconsumers and overshot customers, the nontraditional providers, and the non-obvious geographies
• Simplicity, accessibility, and affordability are underappreciated innovation levers
• Features and functions are nice, but business models are the real driver of transformation
• When you don’t know, place a lot of focused bets and make quick decisions about what to accelerate, shut down, or re-vector
© Copyright 2009 Innosight Ventures Pte. Ltd. 11www.innosightventures.com
For more information
santhony@innosight.com617.393.4520
http://www.innosightventures.comhttp://www.SilverLiningPlaybook.com
http://discussionleader.hbsp.com/anthony
Recommended