Getting elephants to dance - Wie etablierte Unternehmen erfolgreiche Acceleratoren bauen

Deloitte Digital Getting Elephants to dance! 1

Getting elephants to dance!„Wie etablierte Unternehmen erfolgreiche Accelerator bauen“

A. Harting / O. Kempkens @ Corporate Startup Summit

December 3rd, 2014


The best way to predict the

future is to create it.- Peter Drucker


Accelerators are “in” – and they provide a boost to

the entrepreneurial culture in Germany

Entrepreneurial Culture is key to successful Corporate

Innovation – we have to learn to fail with grace

Corporate Acceleration is an art – not a science –

with many pitfalls to deal with but also great upside

Today’s story


Corporate

Manager

Andreas Harting

Mgmt.

Consultant

CMO, Member of

the Executive

Board, SVP,

Product Manager

Manager,

Associate

>19 years of entrepreneurial, operational & consulting experience

• Business & Digital Transformation

• Global Marketing & Sales

• Venture Capital

Entre-

preneur

Co-Founder/

Managing

Director Co-Founder/

Managing

Director, Deloitte

Digital GmbH


Oliver Kempkens

Design

Thinking

Process &

Innovation Expert,

Project Lead

Visiting Professor,

Visiting Lecturer

>13 years on the border between entrepreneurship & corporate routine

• Business & Digital Transformation

• Design Thinking & User-Centrism

• Change Management

Entre-

preneur

Co-Founder/

Managing

Director

Consulting /

Change

Management

Sr. Director,

SAP

CEO,

Adapt or Die


Return externally developed assets to the

mother company in case of success!

Why do elephants struggle to dance?

Some conclusions from “The Innovator‘s Dilemma“

Pursue disruptive Innovations in small

organizations externally to the mother company


5.000.000

4.000.000

3.000.000

2.000.000

1.000.000

0

-1.000.000

-2.000.000

-3.000.000

-4.000.000

-5.000.000

19

77

19

81

19

85

19

89

19

93

19

97

20

00

20

05

Startups and small organizations are driving innovation and

growth in the labor market

Source: Business Dynamics Statistics, Tim Kane

Net Job Change – Startups

Net Job Change – Existing Firms


>225 programs

world-wide

>4000 companies

accelerated

>200 exits over

$ 3bn

Accelerators are at an all time high and most corporates

are looking into this topic as a driver for innovation

Source: www.seed-db.com, www.ycombinator.com, estimates for 2005-2014

Since 2005:

>700 companies

>$ 4bn funding

>$ 30bn valuation

funding over

$ 7bn


A variety of accelerator models with differing success rates

indicate a maturing business model

Investor funded

Corporate funded

Corporate built

Government built


Axel Springer is a best practice case using an accelerator

to help covering the entire value chain in logical order

Business Stage

Siz

e

0

R&D &

Development

Growth

Investment

Strategic Product

Development

Electronic Media

Division

Early-stage

Investment

Source: Axel Springer SE

Acceleration


Organisation &

CultureProcesses People Space

There are four central elements which are totally different in

a startup and apply for accelerators as well

[ ]


Culture is key to success – also for accelerators

Culture eats Strategy for Breakfast.

– Peter Drucker

„

vs


Established firms often cultivate a culture that does not

deploy their full human potential

Narrow-minded controlling

routines

PotentialProblems

Closed minds & homogeneous

culture

Habitual behavior & routines

Punishment of failure

Rejection of outside ideas (NIH)

Suppression of valuable inside

ideas

Experience

Talent pools (human capital)

Hundreds of ideas & opportunities

Sufficient & stable resources

Deep knowledge of technology &

markets

Proven processes & structures

vs


Optimizing of ERP systems,

claims-handling & supply chain Typical

projects

Understanding & predicting

customers’ needs & behaviors

Increasing efficiency &

productivity and lowering costs

Overarching

goals

Using new insights to serve

customers & foster business

IT professionals &

industry experts

Competency

required

Entrepreneurs, Techies & other

passionate experts

Project completed in time, as

planned and within budget

Success

indicator

Employees use data to generate

new insights & new business

Project approaches differ substantially between the

corporate and the startup world

Corporate IT Project Startup App Project

Traditional Project ManagementProject

structureDiscovery-driven Management


User-centered processes can drive innovation in

established firms and enhance customer satisfaction

Understand Create Deliver

Empathy Define Ideate Prototype Test

Understanding ends in

insight.

Creation ends in

ideas.

Delivery ends in

reality.


Exponentially increased complexity requires new

collaboration processes and more team players

Complex

problems

Single

discipline

Multiple

discipline

Simple

problems

YESTERDAY

TODAY


Corporate organizations need to develop their talents from

managers to intrapreneurs

ACTION

VIS

ION

Source: Amit, 1999

Dreamer InventorEntrepreneur/

Intrapreneur

Artist

Manager

Worker


Intrapreneurs need a different management approach

1 Flat

hierarchies

2 Fewer rules

& regulation

3 Active encouragement

to pursue own ideas

4 Emotional leading

(not via KPI)

5 Transparent

career paths

6 Success and

failure studies


A corporate accelerator needs to use intrapreneurs to act

as a separate “business innovation speedboat”

Corporate

Accelerator

Concept Build & Operate Transfer

1Setting up the

Accelerator Blue

Print & Execution

Roadmap

2Building &

operating the

functional

Organization

3Transferring the

Accelerator to a

fully dedicated

Accelerator Team

STRATEGY & External Resources

IMPLEMENTATION & Internal Resources


Ideally a corporate accelerator goes “all the way” from idea

selection and development to execution

Recurring

Idea screening

& selection

Assessment &

Partner Screening/

Matching

Execution Tracks

Business

Modelling:

Prioritize according to

economic

benefit for corporate

Defining

Execution

Tracks:

• Build

• Cooperate

• JV

• M&A

External

Eco-

system

Launch

Selecting

Projects

& Ideas

Operations

Universities

Entre-

preneurship

Centers

VCs

Startups

…

Supporting:

• Connect to

corporate partners

& startups

• Offer shared

services

Focus of current models


CorporatesEntrepreneurs

& Startups3rd parties &

Co-entrepreneurs

A successful accelerator will become an ecosystem itself,

providing benefits to all parties involved

Professionalized &

transparent innovation

set up

Cultural impact

Fast processes &

execution

Access to startups &

entrepreneurs

Brand enhancement

Smart money investment

Visibility

Access to valuable

resources:

• Infrastructure (IT, office)

• Industry contacts

• Large mentor network

• Critical assets

Reputation & recognition

Expanded own

ecosystem &

footprint

Access to profound

industry knowledge


C-Level Commitment

C-Level Commitment with clear resource allocation

Governance

Independence to work with startups and clearly defined KPIs to C-Level

Simple Processes

Simple & fast decision making on deal flow and management processes

Networking

Internal connection of founders and founders with corporate employees

Passion to Execute

Passionate and execution-driven team

Team

Credibility through real entrepreneurs in the management

Key Learnings: It’s all about team, culture & execution


So let‘s bring the startup and the corporate world together

for something really unique!

If you don't found a startup,

be in intrapreneur!


Thank you!

Small Business & Entrepreneurship

Getting elephants to dance - Wie etablierte Unternehmen erfolgreiche Acceleratoren bauen