BOF APAC 2011: New Business Creation Innovation

RADICAL INNOVATION GROUP

New Business Creation

Governance and Roadmap -- Innovation Insights from Our Research and Consulting

è, péng “Roc”

April 18, 2011


Radical Innovation Group Origins and Focus

Radical Innovation Group

founded in 2001 to respond to

requests for consulting associated

with December 2000 book release.

Focus on most difficult part

of consulting equation -

not “What?” but “How To?”.

Uncovering new pathways for growth and corporate renewal

through new business creation.

2© 2001-2011 All Rights Reserved


Some of Our Clients (Past and Present)

Client Base Fortune 1000 Companies.

Diverse Industry Sectors.

Medium and Large Size Global Players.


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New Business Creation (NBC)

Creating a common language and

discipline to drive growth


Innovation Continuum: NPD and NBC Worlds

Degree of

Uncertainty

Low Medium High

Type of Innovation NPD: Incremental NBC: Evolutionary NBC: Breakthrough

Categories of

Uncertainty (MTRO)

Low Uncertainty Levels Mix of Uncertainty Levels High Uncertainty Levels

Market Timing Short Term:

0 to 2 Years

Medium Term:

2 to 5 Years

Long Term:

5+ Years

Strategic Drivers New Products to Extend

Existing Business

Next Generation and New

Business Models for

Growth

Emerging Markets and

Technologies for Growth

and Renewal

Opportunity Selection Customer Voice and

Market Research

Customer or Market Voice Market and/or Technology

Voice and Opportunity

Recognition

Market Focus Existing Base Existing Base, Adjacent

Markets and New

Application Areas

New Customers,

Applications and Unknown

Business Areas

Process Stage Gate and

Concurrent Engineering

Learning Models and

Discovery Driven

Processes

Learning Models and

Discovery Driven

Processes

Transition Readiness Ready for New Product

Development (NPD)

Process

Incubation, Acceleration

and Interface

Management

Incubation, Acceleration

and Interface Management



Driving Growth through a Disciplined Approach

Pe

rfo

rma

nc

e

Time

R&D Investment Alone

RPI 2006 Research

Findings:

R&D Investment +

NBC Capability

Value Added



NBC System and

Competency Requirements

Insights from RPI’s Research


RADICAL INNOVATION GROUP 8

RPI Research: Moving from Project to System

The journey to make New Business Creation (NBC) a

discipline for sustainable global advantage.

Research Phase I

1995 to 2000

Research Phase II

2001 to 2006


http://www.amazon.com/Radical-Innovation-Companies-Outsmart-Upstarts/dp/0875849032/ref=sr_1_1?ie=UTF8&s=books&qid=1221519845&sr=8-1


Technical

Uncertainty

Market

Uncertainty

Resource

Uncertainty

Organization

Uncertainty

New Business Creation Management Model

Challenge 1:

Ideas to

Opportunities Challenge 2:

Living with

ChaosChallenge 3:

Market

Learning Challenge 4:

Business

Model Challenge 5:

Resource

AcquisitionChallenge 6:

Transition

Management Challenge 7:

Individual

InitiativeBusiness

InfrastructureStrategy

Governance Model

DIA Model

Challenges and

Uncertainties



Self-Described Characteristics:

Superior technical capabilities

Inquisitive

Not afraid to be different

Extremely curious

Assertive (perceived as aggressive)

Risk takers

Entrepreneurial

Passionate

Broadly educated

Integrative

Embrace change

Goal-oriented

Business and market savvy

Traditional New Product

Development Teams:

Cross Functional

New Business Creation

Teams: Cross-Functional

Individuals

vs.

Corporate Entrepreneurs Challenge Status Quo



DIA Model Drives Competencies and Structure

Discovery Creation,

recognition,

elaboration,

articulation

of opportunities

IncubationEvolving the

opportunity into

a business

proposal

AccelerationRamping

up the

business to

stand on its

own

NBC Hub or Focal Point Orchestrates

System and Oversees Transitions/Interfaces

Research

Internal Hunting

External Scouting:

License/Purchase/

Partner/Invest

Technical

Market Learning

Market Creation

Strategic Domains

Focus

Respond

Invest

Conceptualization Experimentation Commercialization



Effective Management System Required

Clear Mission and Scope of

Innovation Activities

Supportive

Leadership &

Culture

Identifiable

Organization

Structure and

Rich Interfaces

Governance and Decision

Making at Project, Portfolio

and Strategic Levels

Learning-Based

Methodologies,

Processes and

Tools

Requisite Skills

Development and Talent

Management

Appropriate

Metrics and

Reward Systems



NBC Roadmap™ and

Critical Success Factors

Avoiding the “Valley of Death”


NBC Roadmap to Architect for Success

Strategic or Innovation Intent.

Entrepreneurial and Operations Cultures.

Education and Expectations Management.

Right Type and Level of Resource Commitment.

Portfolio Flow, Pacing and Transitions.

Appropriate Evaluation Criteria and Metrics.

Internal and External Interface Management.

Uncertainty Reduction.

Staged Learning.

Career Paths and Recognition.

StrategicInnovation

Agenda

Portfolio

Innovation

System and

Talent

Management

ProjectTeam Learning

and Uncertainty

Management



NBC Roadmap to Cross the Valley of Death

Opportunity

Recognition Tool

Value Articulation

Research Marketing & Sales

Valley of Death

Discovery

Incubation

Acceleration

Learning Plan

Project

Commercialization

Path

Transition Readiness

Assessment

1. Acceleration

2. Market

Portfolio Management and Strategic Coaching

Takes place throughout DIA project maturation

Strategic Intent

Defined and

Governance

Model Developed

15

Traditional NPD

Processes and Tools

Operations

1

2

Opportunity

Placement

Decision for

NBC versus

NPD


NBC Governance and Roadmap for Business

Sustainability

1. Make investment in evolutionary and breakthrough

innovation strategically relevant;

2. Maximize return on investment in innovation and

realize this return more quickly;

3. Manage a portfolio of diverse innovation investments

tied to strategic intent and level of risk;

4. Navigate the divide between innovation and dominant

operational excellence cultures; and

5. Prepare leadership team to bring a new discipline to

these chaotic, uncharted waters.
