Building the Invincible Corporation - Lean Startup...

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  • strategyzer.com

    Building the Invincible Corporation

    @[email protected]

    #1 strategy

    2

    If you like this presentation, please, feel free to share it but keep these copyright restrictions in mind:

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    • This content should not be published on any other online or offline channels other than Strategyzer’s, unless this has been previously agreed upon by Strategyzer AG and formalized in a written agreement.

    • This content cannot be resold or integrated into any physical or software product.

    The Business Model Canvas is licensed as creative commons. Enjoy it and adapt it freely, as long as you reference with citation

    “Strategyzer.com” and share your work under the same license. The Value Proposition Canvas is copyrighted Strategyzer AG and is not to be modified or used in software or other commercial products. Feel free to use the Business Model Canvas and Value Proposition

    Canvas in meetings or for consulting services under the condition of referencing and citing “Strategyzer.com” and fully displaying the

    Strategyzer logo.

    You can find additional information on businessmodelgeneration.com/canvas/bmc under “Legal Info”. 
Please contact [email protected] for any inquiry.

    These slides are copyright of Strategyzer AG and are intended for personal use only. For other uses please inquire about licensing fees with Natasha at [email protected] The following applies to any content you intend to reuse:

    confidence ...

  • surprise !!!

    2014

    2016-70%

    -60%

    -50%

    -40%

    -30%

    -20%

    -10%

    0%

    -80%

    -90%

    -100%2015 20162014

    Hardware Revenue % Change

    products, tech, business models & value propositions

    expire like yogurt in a fridge

    8

    … but there’s another phenomenon

  • 9 10

    … but then there’s those who are practically invincible

    $3billion

    $4.5billion

    $8billion

    xx

    x

    x $12billion

    “You cannot invent and pioneer if you cannot accept failure.”

    — @jeffbezosvs

  • 1. The Business Portfolio Map

    2. A VC Investment Mindset

    3. The 21st Century Org Chart

    14

    Business Portfolio Map

    Google Sidewalks

    Google Ventures

    Google Fiber

    Nest Labs

    Calico

    Google Wave

    Search/Adwords

    Android OS

    Gmail

    You Tube Google Maps

    Waimo

    WazeSelf-Driving Cars

  • Low death/disruption risk

    sustainable

    PROTECT — >

    Business Model Portfolio (EXPLORE)

    Low innovation riskw/ evidences

    High innovation risk

    Low expected return

    High expected return

    TEST — >

    DES

    IGN

    —>

    EXPLORE

    Business Model Portfolio (EXPLOIT)

    Low real return

    High real returnprofitable

    High death/disruption risk

    GR

    OW

    —>

    EXPLORE

    EXPLOITExplore & Exploit BM Portfolios

    Google SidewalksGoogle Ventures

    Google Fiber

    Nest Labs

    Calico

    Google Wave

    Search/Adwords

    Android OS

    Gmail

    You Tube

    Google Maps

    Waimo

    Waze

  • EXPLORE EXPLOIT

    INVENT / INNOVATION (H2/H3) IMPROVE / EXECUTION (H1)

    Business Model Portfolio (EXPLOIT)

    Low real return

    High real return(profitable)

    EXPLOITHigh death/disruption risk Low death/disruption risk

    (sustainable)

    profi

    tabi

    lity

    death risk

    BATTERIES BUSINESS

    Divestiture

    PET CARE BUSINESS

    2017

    % of Net Sales

    Business Model Portfolio (EXPLOIT)

    Low real return

    High real return(profitable)

    High death/disruption risk Low death/disruption risk(sustainable)

    FABRIC & HOME CARE (Fabric Care, Home Care)

    32%

    BABY, FEMININE & FAMILY CARE (Fabric Care, Home Care)

    28%

    BEAUTY (Hair Care, Skin & Personal Care)

    18%

    HEALTH CARE (Oral Care, Personal Health Care)

    12%

    GROOMING (Shave Care, Appliance)

    10%

    %

    Risks are simulated

    Illustration

    Business Model Portfolio (EXPLOIT)

    IMPRO

    VE — >

    Evolution

    CREATE — >Add new BMs

    PROTECT — >Reduce risk

    GR

    OW

    —>

    Incr

    ease

    retu

    rn

    < — EXPIRY

    SPINOFF — >

    MAINTAIN (RENOVATE)

    Low real return

    High real return(profitable)

    High death/disruption risk Low death/disruption risk(sustainable)

    mature BM

  • Business Model Portfolio (EXPLOIT) BM trajectories

    Low real return

    High real return(profitable)

    IMPRO

    VE — >

    sustainable BM

    mature BM

    BM at risk

    profitable BM

    CREATE — >Add new BMs

    < — EXPIRY

    SPINOFF — >

    MAINTAIN (RENOVATE)

    PROTECT — >Reduce risk

    GR

    OW

    —>

    Incr

    ease

    retu

    rn

    High death/disruption risk Low death/disruption risk(sustainable)

    Inventing New Business Models (Explore)

    Business Model Portfolio (EXPLORE)

    High expected return

    (profitable)

    Low expected return

    EXPLOREHigh innovation risk (little validation evidence)

    Low innovation risk(strong validation evidence)

    expe

    cted

    pro

    fitab

    ility

    death risk

  • Business Model Portfolio (EXPLORE)

    Low expected return

    High expected return

    (profitable)

    Evolution

    TEST (VALIDATE) — >Reduce risk (increase expected sustainability)

    DES

    IGN

    —>

    Incr

    ease

    exp

    ecte

    d pr

    ofita

    bilit

    y

    TRANSFER — >

    INVENT —

    >

    IDEATE — > < — KILL

    High innovation risk (little validation evidence)

    Low innovation risk(strong validation evidence)

    new idea

    Low death/disruption risk

    PROTECT — >

    Business Model Portfolio (EXPLORE)

    INVEN

    T — >

    Low innovation riskHigh innovation risk

    Low expected return

    High expected return

    TEST — >

    DES

    IGN

    —>

    IDEATE

    — >

    LAUNC

    H —

    >

    EXPLORE

    Business Model Portfolio (EXPLOIT)

    IMPRO

    VE —

    Low real return

    High real return

    High death/disruption risk

    GR

    OW

    —>

    CREAT

    E — >

    EXPLOREINNOVATION ENGINE

    EXPLOITEXECUTION ENGINE

    BM w/ evidence

    prototyped BM

    mature BM

    new BM at risk

    transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

    ©

  • power battle? power battle?

  • Portfolio Evolution

    Low death/disruption riskPROTECT — >

    Business Model Portfolio (EXPLORE)

    INVEN

    T — >

    Low innovation riskHigh innovation risk

    Low expected return

    High expected return

    TEST — >

    DES

    IGN

    —>

    IDEATE

    — >

    LAUNC

    H —

    >

    EXPLORE

    Business Model Portfolio (EXPLOIT)

    IMPRO

    VE —

    Low real return

    High real return

    High death/disruption risk

    GR

    OW

    —>

    CREAT

    E — >

    EXPLOREINNOVATION ENGINE

    EXPLOITEXECUTION ENGINE

    transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

    ©

    Portfolio Evolution

    Low death/disruption risk

    PROTECT — >

    Business Model Portfolio (EXPLORE)

    INVEN

    T — >

    Low innovation riskHigh innovation risk

    Low expected return

    High expected return

    TEST — >

    DES

    IGN

    —>

    IDEATE

    — >

    LAUNC

    H —

    >

    EXPLORE

    Business Model Portfolio (EXPLOIT)

    IMPRO

    VE —

    Low real return

    High real return

    High death/disruption risk

    GR

    OW

    —>

    CREAT

    E — >

    EXPLOREINNOVATION ENGINE

    EXPLOITEXECUTION ENGINE

    transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

    ©

    ?

    ?Portfolio EvolutionLow death/disruption

    riskPROTECT — >

    Business Model Portfolio (EXPLORE)

    INVEN

    T — >

    Low innovation riskHigh innovation risk

    Low expected return

    High expected return

    TEST — >

    DES

    IGN

    —>

    IDEATE

    — >

    LAUNC

    H —

    >

    EXPLORE

    Business Model Portfolio (EXPLOIT)

    IMPRO

    VE —

    Low real return

    High real return

    High death/disruption risk

    GR

    OW

    —>

    CREAT

    E — >

    EXPLOREINNOVATION ENGINE

    EXPLOITEXECUTION ENGINE

    transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

    ©

    Unbalanced Portfolio

  • Low death/disruption riskPROTECT — >

    Business Model Portfolio (EXPLORE)

    INVEN

    T — >

    Low innovation riskHigh innovation risk

    Low expected return

    High expected return

    TEST — >

    DES

    IGN

    —>

    IDEATE

    — >

    LAUNC

    H —

    >

    EXPLORE

    Business Model Portfolio (EXPLOIT)

    IMPRO

    VE —

    Low real return

    High real return

    High death/disruption risk

    GR

    OW

    —>

    CREAT

    E — >

    EXPLOREINNOVATION ENGINE

    EXPLOITEXECUTION ENGINE

    transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

    ©

    Balanced Risky Portfolio

    5.9% 2.5% 1.1% 0.4%

    25.3%

    64.8%

    Early-StageVenture Returns (2004 - 2013)

    Source: Correlation Ventures (data from VentureSource and other)

    0 - 1.0x 1.0 - 5.0x 5.0 - 10.0x 10.0 - 20.0x 20.0 - 50.0x 50.0x +

    Gross Realized Multiple Range

    70%

    60%

    50%

    40%

    30%

    20%

    10%

    0%

    % o

    f Fin

    anci

    ngs

    6 out of 10 investments lose money

    1 out of 4 makes some money

    4 out of 100 are home runs

    “At Amazon we invented a lot of things that customers did not

    care about at all.” — @jeffbezos

    Low death/disruption risk

    PROTECT — >

    Business Model Portfolio (EXPLORE)

    INVEN

    T — >

    Low innovation riskHigh innovation risk

    Low expected return

    High expected return

    TEST — >

    DES

    IGN

    —>

    IDEATE

    — >

    LAUNC

    H —

    >

    EXPLORE

    Business Model Portfolio (EXPLOIT)

    IMPRO

    VE —

    Low real return

    High real return

    High death/disruption risk

    GR

    OW

    —>

    CREAT

    E — >

    EXPLOREINNOVATION ENGINE

    EXPLOITEXECUTION ENGINE

    transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

    ©

    Balanced Portfolio

    do you have a balanced portfolio that makes you invincible?

  • [email protected]

    Building the Strategic Operating System for the FT Global 500

    47

    If you like this presentation, please, feel free to share it but keep these copyright restrictions in mind:

    • The Strategyzer logo should always fully appear on any slide that contains our illustrations and/or content.

    • This content should not be published on any other online or offline channels other than Strategyzer’s, unless this has been previously agreed upon by Strategyzer AG and formalized in a written agreement.

    • This content cannot be resold or integrated into any physical or software product.

    The Business Model Canvas is licensed as creative commons. Enjoy it and adapt it freely, as long as you reference with citation

    “Strategyzer.com” and share your work under the same license. The Value Proposition Canvas is copyrighted Strategyzer AG and is not to be modified or used in software or other commercial products. Feel free to use the Business Model Canvas and Value Proposition

    Canvas in meetings or for consulting services under the condition of referencing and citing “Strategyzer.com” and fully displaying the

    Strategyzer logo.

    You can find additional information on businessmodelgeneration.com/canvas/bmc under “Legal Info”. 
Please contact [email protected] for any inquiry.

    These slides are copyright of Strategyzer AG and are intended for personal use only. For other uses please inquire about licensing fees with Natasha at [email protected] The following applies to any content you intend to reuse: