3M Innovation Master Class Bernhard Ries
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Transcript of 3M Innovation Master Class Bernhard Ries
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Market-Inspired, Experience-Driven
A Tale of Transformation in the Semiconductor Industry
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A Culture Of Innovation
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1969
1959
1981
1991
1996
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$60BIN FACTORIES
$10B+R&D
43KENGINEERS
TOP 5SOFTWARECOMPANY
4Mft2
MANUFACTURING
107KEMPLOYEES
14nmTECHNOLOGY
3DTRANSISTORS
170SITES
66COUNTRIES
75%of biz outside
of US
$11BCAPITAL
INVESTMENTS
7FABS 5,000+
SKUs
4
Intel Today
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In Pursuit Of Moore’s Law
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Hi-K Metal Gate
Strained Silicon
3D Transistors
65 nm 45 nm 32 nm 22 nm 14 nm 10 nm 7 nm90 nm
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Competition And The Pace Of InnovationAre Accelerating
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Being Market-Inspired
TECHNOLOGYDRIVEN
MARKETDRIVEN
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Becoming Market-Inspired
New market innovation separate from the core4
Outside-insensing process
1Lead with
User Experience2
Innovation portfolio managed by
CEO-led team3
Executives set vision, drive process, and define incentives5
Key Trade-Off: Investing for long-term growth vs. short-term gains
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Outside-insensing process
1
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Outside-In Sensing: Market Watch
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• Sense
• Interpret
• Trigger Action
CompetitionCustomers
Ecosystem End Users
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Becoming Market-Inspired
New market innovation separate from the core4
Outside-insensing process
1Lead with
User Experience2
Innovation portfolio managed by
CEO-led team3
Executives set vision, drive process, and define incentives5
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The search for the next big thing….
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Creating Enduring Experiences:Find some users and make them happy
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User Experience
UserExperience
Systems&
Software
AmazingSiliconAmazing
Silicon
Systems&
Software
UserExperience
Past Today
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No Wires No Passwords Voice and 3D
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Becoming Market-Inspired
New market innovation separate from the core4
Outside-insensing process
1Lead with
User Experience2
Innovation portfolio managed by
CEO-led team3
Executives set vision, drive process, and define incentives5
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Innovation Pipeline FrameworkHorizon 4
Develop & test business ideas
Horizon 3Prove
business concept
Horizon 2Scale business
Horizon 1Defend & extend
business
• BU owned via protected incubation fund
• Engage customers, POCs, trials
• 90% failure rate
• Validate market opportunity via pilots & limited launch
• 50% failure rate
• Rapidly expandfootprint & grow position
• 10-20% failure rate
• Optimize profit /op ex
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Separating New Market Innovation From The Core
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Intel Architecture Group
Then:
Now:
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Executive-Led Vision & Strategy
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Intel CEO Brian KrzanichIntel Investor Day, Nov. 2013
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Becoming Market-Inspired
New market innovation separate from the core4
Outside-insensing process
1Lead with
User Experience2
Innovation portfolio managed by
CEO-led team3
Executives set vision, drive process, and define incentives5
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Results
Strong Push into Ultra Mobile
Accelerated Growth in Data Center
New Products to Expand MarketsPC Innovation
Continued Silicon Leadership
14nm
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Lessons Learned
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• Big changes rarely come at you with a bullhorn, more often as a whisper
• Connect decision makers with the market
• Break down silos between market-facing functions and engineering
• Implement a system to become more market-inspired: Processes, Leadership, Culture
• Being more market-inspired unleashes innovation, creates new value, and helps get to market faster
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Market-Inspired, Experience-DrivenOur Journey Has Just Begun
TECHNOLOGYDRIVEN
MARKETDRIVEN
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