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INNOVATION!A VIEW FROM START UPSPresented to I&S Teams at Watson Research CenterBill Nussey, Silverpop Chairman & VP Corp StrategyAugust 24, 2015

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The Real Truth about startup innovation…

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How do start ups manage to drive so much

innovation?

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There are tons of start ups and you only read about the ones where innovation succeeds

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It was the best of times, it was the

BLURST of times.

You Stupid Monkey…

The RealityAbout MostStart ups..

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Four Types of InnovationInnovation is not a one-size-fits-all… it comes in many different flavors

COLLABORATION1The most common approach to innovation – get a bunch of smart people to brainstorm ideas (hint: the more diverse their backgrounds, the better the brainstorming)

PERSPIRATION2Nothing replaces hard work. Like Thomas Edison said, “Genius is 1% innovation and 99% perspiration”

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Four Types of InnovationBut Startups embrace a few extra kinds that aren’t as common in larger companies

UNINTENDED3

Some of the most amazing innovation occurs entirely by accident. The key is recognizing it as innovation and not an accident.

DESPERATION4Desperation is often the most overlooked yet powerful forms of innovation. Sometimes, the best innovations emerge when you have absolutely no options at all.

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Four Approaches that Start Ups Use to Innovate

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#1 They don’t know any better Q: Why are there so many twenty-something billionaire start up entrepreneurs?A: Because they lack the experience to know their ideas won’t work

Even if something failed the way things worked before, it doesn’t mean it can not work a different way.

Naiveté is one of the most powerful sources of innovation

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#2 Autocratic Genius Innovator as CEO Big companies tend to promote

people no further than their biggest weaknesses – most companies avoid having unpredictable and overly passionate people at the top

But, every once in a while, a younger company lets a founder go “all the way”. And, then, a tiny

handful of those go out andchange the world.

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#3 It is Less Expensive to Fail Failure is inevitable Mike Tyson says, “Everyone comes

into the ring with a plan until I punch them in the mouth”

When a project fails, most companies will give up and move onto other projects

Start ups can re-group and just keep going… and going… and going

This is so common and so accepted in start ups there is even a nice word for it now: Pivot

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#4 Huge Motivation to Innovate Start ups innovate or die They are small and

everyone can make an impact.

And, the rewards can be change people’s lives

But the real secret is that it’s not really about the money (at least for most people)… it’s about the glory and recognition

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Thank You

Questions?