20130418 corina kuiper

The Effectual Catalyst

© The Effectual Catalyst

Corporate Venturing: The Art of Raising Teenagers

Corina Kuiper

18 April 2013



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3

lunch dinner

Me


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Outline

• Granularity of Innovation ‘the members of the family’

• Disruptive Innovation in large companies “teenagers and parents”

• Managing Disruptive Innovation “the art of dealing with teenagers”




Today’s logic cannot to deal with the global trends: New ways of thinking and working are required

The rise of emerging markets

Aging population

Increased consumer empowerment and sustainable lifestyles

Climate change and sustainable development

© The Effectual Catalyst 5


Healthcare: issue is not just money but there are not enough hands to take care of elderly and chronically diseased.

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The rise of

emerging markets


adults die each year from Cancer

adults die each year from Cardiovascular Disease

people worldwide are affected by Alzheimer's disease

adults have diabetes

people are newly diagnosed with tuberculosis every year and it remains a worldwide threat

people suffer from Asthma; more than 200 million have Chronic Obstructive Pulmonary Disease

285 million

8 million

300 million

24 million

17 million

7 million



• In 2020 emerging countries will spend 60% of their Healthcare budget on chronic diseases

• In China’s big cities 20% of children between 7-17 are overweight/obese

• In China 85% of deaths are related to chronic diseases

• In China 70% of diseases are chronic diseases (260 million people)

• In US 75% of Healthcare costs are related to chronic diseases

It is getting worse….

8 © The Effectual Catalyst 8


of prescriptions are never filled

Of medicine are taken properly

Direct and indirect healthcare costs due to non-adherence (US) $290 billion

25-30%

50%

Patient behavior and Pharma cost trend

Pharma model is broken



Change is the key driver of business creation

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“We cannot solve our problems with the same thinking we used to created them”

Albert Einstein


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The logic of the business case today

Opportunities

Global Trends

Business Case

• NPV, • ROI • ….

Strategic Ambition

• Markets • Categories •Brand image

Right To win

• Technology position • Market position



… with Open Innovation your are no longer limited to your in-house technology/market positions

Opportunities

Business Case

• NPV, • ROI • ….

Strategic Ambition


Right To win


Right To win



Global Trends


HeartStart Home Defibrillator

• No time to read the manual!

• Easy to use

• Specifically designed for use at home

• Life saver

• Making a difference

•80% of the cardiac arrests occurs at home •Brain death and permanent death start to occur in just 4 to 6 minutes •Few attempts succeed after 10 minutes. •Only 5% survives!

We’ve been listening to people...


http://www.chainofsurvival.com/cos/COSoverview_detail.asp

http://www.americanheart.org/


Disruptiveness to the customer determines how to innovate

Opportunities

Business Case

• NPV, • ROI • ….

Strategic Ambition


Disruptiveness

• Existing vs New to world

Right To win



Global Trends


Granularity of Innovation Market life cycle Disruptiveness to consumer

• New to the world

• New adjacent category

• New in the category

• Improved

“The Granularity of Innovation”, A more granular perspective on innovation types driving

enduring company performance. Granularity of Innovation is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst)

OUTSIDE - IN OUTSIDE - IN



Two dimensions creating view on different types of innovation

emerging

growth

mature

decline

Disruptiveness (proposition is…)

Mar

ket

life

cyc

le (S

egm

en

t/ge

o)

New category

New Business Creation

Product Creation

improved product

new in category

new adjacent category

new to world

New category Existing category

Granularity of Innovation is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst) © The Effectual Catalyst 17


…. that enables different innovation perspectives From market share battle in existing spaces to opening new spaces

New category Existing category

Granularity of Innovation is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst) © The Effectual Catalyst 18


Different types of business and business models


New business New Business Creation

Established business Product creation

• Recombine existing resources

• Mitigating risks

• Existing ecosystem

• Market share battle

• Customer insights known

• Leverage existing channels

• Established business models

• Focus on execution/leverage

• Short/mid-term

• Existing organization

• Generate new opportunities

• Deal with the Unknowable

• New ecosystem

• Building mountains (platform)

• Changing customer behavior

• Building new channels

• New business models

• Learning / iterative

• Mid/long-term

• New capabilities


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Outline




•Disruptive Innovation in large companies “teenagers and parents



The large-company Syndrome: why companies cherish babies and adults

but find it difficult to raise teenagers



22 © The Effectual Catalyst 22


New business New Business Creation

Established business Product creation

• Your identity is know and key asset

• You know more, can do more, and are known by many more people

• You have something to lose

• You maximize on sales/profit

• Your company patience is 1-3 years

• Don’t like uncertainty

• Optimize each business case

• Failures are wrong

• Think before you act (rationale)

• Where does it fit (leverage) – ‘borrow’

• Design for scale

• Carrot and stick incentives have positive impact on performance

• You discover/develop your identity

• You are creating new ways /networks (‘use it or lose it’ principle)

• You have something to gain

• You manage on cash-out (affordable loss)

• Like to be challenged

• Optimize the portfolio

• Fail fast and cheap

• You need to experiment (emotion)

• Building outside the scope – ‘forget’

• Getting to plan B (because A didn’t work)

• Intrinsic motivation drives performance; carrot and stick is counterproductive

Two different brains



You have a choice:

Scene Setting

Target : develop a new Category in Home Lighting = Scene Setting

Lamps

LivingColours

Living White



You have a choice

Innovation Matrix is courtesy of Fred van Ommen (Bizz Innovation Group) Corina Kuiper (The Effectual Catalyst) © The Effectual Catalyst 25

../../../../Videos/You Tubes/Adaptive healing rooms by Philips.avi


Building a bowling alley

Drakensberg Mountains, South Africa. A classic example of the way in which rock layers of one sort and another are piled one on top of the other to build mountains

Platform



Climbing mountains vs building mountains



The danger of not recognizing the teenager

Mistakes…..


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Outline




•Managing Disruptive Innovation “the art of dealing with teenagers



How to get the best out of two worlds?

Create a ‘Living Apart Together’ Environment

BORROW

FORGET

LEARN



How to get the best out of two worlds?

Create a ‘Living Apart Together’ Environment


Core NBC

Senior executive

team


Process / Operating requirements

People & Partners Entrepreneurship

Performance Management

The Venture Framework


Strategy / Vision and Opportunity

Portfolio

COMMON LANGUAGES


Guide to teenager development - parent

1. As a parent be consistent (consistent strategy over time)

2. Long term, staged financial support, but don’t spoil them (boxed cash budgets)

3. Set boundaries but within the boundaries give freedom to operate (incubators)

4. Be patient, let them grow up and be realistic in your expectations (all big businesses start small)

5. Let them borrow what you have, who and what you know but don’t prescribe how to use it. Allow them to forget your ‘logic’

6. Challenge and protect; be a coach not a drill sergeant

7. Let them learn from mistakes (fail fast and cheap); there is no substitute for real life experience

8. Encourage them to date with people outside the family and network with new people to find new ways/logics

9. It is not about what they say but what they do that makes the difference

10. Don’t use carrot and stick but build on intrinsic motivation



Guide to teenager development - teenager

1. Discover your strengths and where they excel (sustainable uniqueness and positioning)

2. Start with what you see in the world, not with yourself (outside in)

3. Define how you will be successful; what is your DNA (business model)

4. The proof of the pudding is in the eating (learning by doing)

5. Pilot to learn/experiment, create stepping stones and leverage what you have

6. It is not an one-man-act but create networks and co-create with friends and share joy and sorrow (partnership/co-creation)

7. It is all about what people do, not what they say; potential friends don’t exist

8. Look for people outside your family that can act as a mirror for your most burning questions and who keep you honest (advisory board)

9. Keep your options open as you will find out you need a plan B because plan A didn’t work (scenario planning, DTA)

10. Translate your dream in what you need to do today and accelerate




THINK BIG,

ACT SMALL AND

ACCELERATE FAST

20130418 corina kuiper

Health & Medicine

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