Post on 26-Dec-2015
Michelin’s startup journey…
…gaining traction in a dynamic spaceJohannes Mutzke
Global Incubator Program Office
Michelin Group
Back to our roots…“Innovation Dynamic”
“Innovation is our main growth driver, as it has been since our beginning. But, it’s everyone’s business, and we must do everything possible to unleash the creative capabilities of Michelin employees.” – Jean-Dominique Senard, Managing Partner
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A renewed focus on innovation…“Innovation Dynamic”
Corporate Innovation BoardInnovation Strategy, Priorities & Decisions
ProspectiveInputs on Long-Term Trends & Scenarios in the Market &
Environment
R&D + Product LinesInnovation in our Core Business
IncubatorNew Business Activity Beyond our
Core Business
InnovUpGenerating & Collecting Ideas to Answer a Specific Question
InnovaGoCollecting Spontaneous Ideas from Employees P
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The rationale for the incubator…
Desired Path
Technology
Extensive benchmarking with other companies has let to significant learnings & insights…Source: inspired by EADS
Our mission…
Mission: In the broad mobility space, the mission of the IPO is, to seek, promote, develop and deliver, novel business activities, beyond our core business which will create value and contribute to profitable growth for the Groupe.
It is expected this mission will increase the innovation capability of the Michelin Groupe.
5 Innovation Domains: Flexible Composites Travel Agent Maintenance Services Farm to Market Logistics Road Mobility Web Services
Services
Tire
AlternativeTires
Mobility Solutions, connectivity, others …
Q22014
Q12015Q4
2013
UNITED STATES
Internal: 5 start-ups + 1 venture (ex. Tweel)
External: Ramp-up collaboration
EUROPE
Internal: 5 start-ups
External: SymbioFC, Revisersavoiture.com, Emerald Fund, Ecomobility Fund
ASIA
Internal: 3 start-ups
External: India Angel Network
Our global activities…
An adaptive investment approach…Gaining an understanding of the roles and limitation of each. Corporates generally struggle to create startups, but are capable of accelerating them.
Entrepreneurial (“Home Grown”)
Majority Stake or Acquisition
(“Strategic Move”)
Minority Stake(“Land & Learn”)
Our approach for execution…A process built for maturation and progressive de-risking of concepts
Ent
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eneu
rial
Cor
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Buy
Make
Grow
Seek & Promote Develop & Deliver
IPO
LE
AD
ER
SH
IP
Early Stage Investment
(Min, Maj, 100%)
Business-/Field- Experimentation (”Prove It”, Early
Stage)
Example of “drill-
down”…
Initiatives Ventures
Supporting organization…
Domain #2 Domain #3
North America
Europe
Asia
Domain #1
Geo-Zones
Central Product Lines
Michelin Corporate Leadership
Incubator Program Office (IPO)
People & process: entrepreneurship in a mature organization…
Starters
Scalers Salvagers
Sustainers
Typical People Profile in a
Mature Organization
Business Activity
Time
Infusing org with people-capabilities
Source: inspired by Proctor & Gamble, Futureworks
People & process: 5 conditions for a successful “incubation funnel” Vision & Championing
(buy-in, commitment, support, protection, faith)
Connectivity(partners, deals, internal- &
external- ecosystem)
Focus & Sponsorship(clear strategy, core business
alignment, verticals)
Support & Control/Governance(coaching/mentoring, process,
birth & death rate, “nesting plan”- people deliverables)
Adoption/Integration/Pull
(onboarding, stakeholder management, avoid orphans &
“island of abandoned toys”)
Fast, Consistent, Flexible
Summary of lessons learned “on the journey”…
It’s a people business – “compassion & mindshare”
Know what you bring to the party…and what you don’t – avoid becoming known as a complicated partner
Realize the role and limits of internally-oriented activities – go outside for the rest
Adjust internal processes to “play the game you’re in” (…speed, agility, etc.)
Be very clear on desired strategic outcomes & ambitions – design your business model accordingly
Manage stakeholders “aggressively” and preserve delicate balance between autonomy and relevance
gazelle or elephant?
aquarium beside the ocean
aircraft carrier vs speedboat
what are you hunting?
“presence” over immediate return
balancing act…