Innovate Executive Briefing

Doug Berger

Managing Partner, INNOVATE

[email protected]

+1.732.564.0945

Breakaway Growth & Innovation

Executive Briefing

2All Rights Reserved

Chapters in the BreakAway Story

1. What is Breakaway Growth

2. Why innovation often disappoints

3. Playing a new game for new growth

4. The 5 Workstreams

5. An illustrative timeline

6. INNOVATE’s creds

Think of your company as the central character of the

Breakaway story. The central theme is achieving growth

above and beyond the trend line … in which you identify

and exploit new areas of growth and new dimensions of

business innovation … leading to you as more formidable

competitor.

The journey begins with a deep understanding of where

the rules, plays, skills and experience delivering core

business success are hindrances to new growth. Then

playing a new game alongside the old game leading to

future revenue that isn’t an extension of today’s trends.

The journey has the quality of an adventure in which you

encounter setbacks, overcome obstacles, find delightful

surprises including surprising yourself.

Our role, the folks at INNOVATE, is to be your trusted

advisors and catalysts helping you chart new paths that

become well-traveled avenues of your future mainstream.


Core BusinessGrowth Breakaway Growth

Geo Expansion

Market ShareAcquisition

ProductExtensions Problems that New

Technologies Solve

Non-traditionalCustomers

New BusinessModels

Disrupt EstablishedMarkets

New CustomerNeeds

Inorganic Growth

Acquisitions

Corporate VentureCapital

Emerging trends

Horizon 2 … 5 – 10 yearsMost organic growth

is RENEWAL…surfing the trend

line

Redefining yourmarket position

Cross-businessVentures

Horizon 1 … 2 - 5 years

Outside Scope

Horizon 3 … +10 years

Basic Research

“ Breakaway Growth is putting your business on a new

growth trajectory … growth above the trend line ”

TechnologyAdvantage

Market growth


Possible: Growth and Innovation Objectives

1. A robust set of 5 - 10 breakaway growth concepts … establishing a presence in high potential domains

(1) Domains and growth concepts are grounded in trends and industry forces

(2) Includes new business models.

(3) Presented as a compelling business story … easy to grasp in 60 seconds

2. A portfolio of 2-4 growth ventures with seed funding

(1) Representing a balanced portfolio in multiple time horizons, size and risk profile

(2) Playing a new game for the bigness of the opportunity yet establishing market-based proof points

3. Execute individual growth projects as entrepreneurial ventures

(1) Managed as agile start-ups with governance similar to venture capital

(2) Milestone funding vs. annual budgets

(3) Early, market-based signals of success

4. Build your internal capabilities for ‘Big I’ innovation

(1) Developing provocative and disruptive insights to stimulate ideation

(2) Discovering big trends that don’t come with labels on them

(3) Probing interviewing and ideation techniques

(4) Elaborating and pitching business concepts as a start-up

Starting with Success-defined Outcomes in mind


Disruptive Insight … Why most innovation disappoints !

“If we continue to play the Old Game, all we will get is

competitive trend growth.

Breakaway Growth, well above historic trend lines, requires

playing a New Game.

You can’t effectively play a New Game until you deeply

understand how the Old Game is embedded throughout”


Old Game – New Game Methodology

The Game for Core Business The Game for Breakaway Growth

Replace and renew in competitive domains Tap into and execute on future business domains

Stable, predictable market dynamics Customer and competitor uncertainty; disruptive trends

Many, incremental bets … Few kills Portfolio of move-the-dial investments … Disciplined kills

Stage-gate process oriented around product Entrepreneurial oriented around customer developmentand business creation

Late stage customer feedback Early & frequent customer iteration

Internal environment for CONTROL … Avoid risk Internal environment for BIGness … Take and mitigate risks

Launch at scale Agile launch … multi-generational scaling

Playing the New Game involves learning to shift … mindset, processes and practices.

It might best be viewed as a journey, an adventure or a creative process.


A Focus on the Critical Enablers

1. Finding new hunting grounds you can leverage into move-the-dial revenue …

Aligning executive aspirations for the growth businesses of the future

Guiding your enterprise to uncover insights that aren’t in plain sight.

Then using those insights as a springboard for ideas.

Future domains offering big growth don’t often come with labels and flashing lights.

2. Creating a backlog of robust business concepts ….

Transforming ideas into investible business concepts is as much art as process.

Hands-on advice to your innovation team as they draft, iterate and strategically pivot.

Promising concepts waiting in the wings to replace early kills.

3. Venture-style execution …

New growth initiatives have more in common with start-ups than product development. Venturesform hypotheses … then prototype, experiment and iterate with lead customers.

The ‘Innovator’ is central. The team is as important as the concept.

4. Breakaway growth governance and enabling infrastructure …

Uncover & break the hidden cycle that forces new areas of growth back into the Old Game.

A plan to move key stakeholders to where you need to be

Governance is chartered to remove bottlenecks from conventional processes and mindsets.

Workshops, coaching and transformational experiences to develop an entrepreneurial mindset,disruptive thinking and ideation, business concept elaboration and storytelling.


Our Approach – The 5 Workstreams

Venture Portfolio… Seed Funding

New Twists

Move-the-dialideas

Agile Execution

PORTFOLIO BUILDING

• Screen ideas and develop a select portfolio of options that fit with your business requirements

• Transform ideas into compelling business concepts

• Pitching the concepts to investors

DISRUPTIVE FORESIGHT / INSIGHT

The world through disruptive lenses … insights not in plain sight … spot ways to capture differentiatedand sustainable value

BUSINESS CONCEPT IDEATIONCatalyze ideas from diverse sources … internal, industry thought-leaders, senior executives from

outside your industry

ENTREPRENEURIAL VENTURES

• Manage as start-ups with a governance similar to venture capital

• Stay agile and scale only after proof in the marketplace

GOVERNANCE AND ENABLING INFRASTRUCTURE

• Establish governance similar to venture capital.

• Build a risk-managed portfolio.

• Insure that enterprise is playing a New Game in areas of breakaway growth.


Market Foresight / Insight Workstream

Step into the mindset of entrepreneurs instart-ups and Venture Capitalists

Train the core team in principles ofdisruptive thinking.

Provide stimulating examples of game-changing insights from outside industries

Entrepreneurial Mindset1

Internal Discovery

Review recent research

Build idea base with lead employeesfrom within the company

2

Interviews with Externals

Trends from outside the industry thatcould enter the industry

Highest caliber experts (e.g. VCs,researchers, starts-ups)

Sourced through broad network

3

• Big trends not in plain sight

• Insights into customer patterns

• Innovations from outside

• Strategic implications

Uncovering New BusinessTerritories


Internal Insights into Bottlenecks in your Growth Flow

Move-the-dial

BusinessConcepts

Portfolio of

BreakawayGrowth

Ventures

(funded)

Entrepreneurialand disciplined

VentureExecution


VentureExecution


VentureExecution


VentureExecution

Not Enough: savvy, entrepreneurialmanagement of each venture

Bottleneck: not enough move-the-dialbusiness concepts matching executiveaspirations

Not Enough: enabling governance and internal business innovation infrastructure

Not Enough: portfolio discipline of proofpoints, investment scaling, exits and kills

Governance and Enabling Infrastructure


Modes of Ideation … Choosing what’s right for your organization

Ideation Sessions

Catalyzed by Foresight / Insight process

A structured process way beyondbrainstorming … training in disruptivethinking

Mix of internal and external participants

Participants guided in challengingassumptions and finding new opportunities.

Preliminary filtering and elaborating of mostpromising ideas.

Innovation Challenges

Crowdsourcing ideas

Cloud-enabled Idea Management

Put a Business Domain up for ideation toa set of internal employees or open topublic

Idea Geniuses

People with a track record of intuitingbig opportunities.

Immersion

Ethnographic deep dives

Living with customers


Business Concept Workstream

IDEASBOLD IDEAS Ways we create move-the-dial ideas

Discovery

• Review recent research relative todomain

• Build idea base from internalorganizations (e.g. call centers,sales, R&D)

• Mine ideas from outliers withinthe organization

• Interviews with external providers

Ideation

A structured process that goes way beyondbrainstorming

Catalyzed by disruptive insights and discovery

Participants are externals, internal thoughtleaders, key operating managers

Participants challenge assumptions and find newopportunities

Idea Mapping

Establish screening criteria

Preliminary elaboration of ideas

Select top 10 - 15 ideas

Use portfolio tools to organize ideasinto several portfolio views

Input into Venture Conceptdevelopment

Mine ideas from internal and external sources

Guide the core team to design and facilitate structured ideation with externals, internal thought leaders andkey operating managers

Ideation makes use of techniques from Disruptive Thinking and Ideation skills-building workshop

Concludes with Idea Mapping to organize and screen potential ideas for “The Pitch” workstream


< Enabling technologies, potential partners toaccelerate and de-risk >

Big Idea< Insert idea title>

Customer Problem, Unmet Needs, Insights

< What is pain point for the customer? >

< What is the core customer/consumer insight(s)underpinning this idea?>

<Please indicate any market evidence, key trends or factorsthat validate.>

Energy for Idea

< Why it is a big play and why it excites us? >

< Why we should do it? >

< What new capabilities or follow-on opportunities might itbring if we do this right? >

Why Us?

<What do we bring to this idea? >

< What gives us a competitive edge? >

< What makes it sustainable? >

< IP to accelerate this happening >

Value for Us

< How we will make money and/or broadly gain value (e.g.–revenues, brand building, brand stretch, competitivepositioning, hedge >

11

4433

22

Annual Total Market Size interms of Revenue in 2015

BETWEEN

$50M-$200M

BETWEEN

$200M-$500M

GREATER

THAN $500M

< 2-3 sentence description of big idea>

Target Market(s)< Insert information about target customers / consumers. For which specific customer segmentwould this be an exciting, compelling offering? >

External

Enablers

< Assumptions, Risks, Uncertainties >

Description

Hypotheses

6655

THE PITCH

Illustrative Template: One Page Business Concept


‘The Pitch’

‘THE PITCH’

“Start-up Story”Showcase

Gaining Commitment & Seed Funding

Business ConceptElaboration

Customized Business Concept Template

The Big Idea

Customer/Problem/Solution

Execution enablers

Economics

Key hypotheses to test

The Art of Storytelling

Storytelling is a teachable art … coreprinciples underlying the great businessstories

Multimedia learning experiences

Video recordings of ‘practice pitches’

Coaching

Extensive Coaching

Elaborate screened ideas into total business concepts worthy of investment

Deliver an investment story that is exciting and persuasive

Mentorship by an executive on Venture Governance

At the end of the Pitch workstream, approved concepts go into the Breakaway Growth Portfolio


Entrepreneurial Ventures Workstream

Entrepreneurial

Ventures

Agile Execution:

Validate, Pivot, Operate, Scale

Validate / Strategic Pivots

Identify and test key hypothesis

- - Customer acquisition

- - Business model

Make strategic pivots based upon validatedlearnings from real-world

Build strategic relationships

Operate … then Scale

Move from a business in beta-test to anoperating enterprise

Early signals of commercial success

Operate for sustainable cash flow

Multi-generational business building

Put systems in place to scale to next level

Coaching

Ventures have more in common with start-ups that with product development

The composition of the team is as important as the business concept

The critical uncertainty is consumer / customer development


Governance and Infrastructure Workstream

Governance &Infrastructure

Playing the New Game for Breakaway Growth

Governance

Bring to life the spirit of Breakaway Growth

Catalyze action - organization learnings

Rapidly remove bottlenecks in real-time.

Manage the cost of failure not the rate offailure

Provide protection from legacy interestgroups … co-existence with core businesses

Mentoring

Enabling Infrastructure

Developing and deploying talent

Financial management recognizingfundamental market uncertainty

Career safety net

Linking among various growth ventures andwith core businesses

Releasing working capital based upon go-no- go milestones. Kill projects early.

Refreshing portfolio

Communicate a strategic context to the enterprise for Breakaway Growth

Manage an end-to-end Growth Creation Flow

Instill a new organization mindset

Gain new perspectives …. learn and implement new processes and skills


Illustrative: High-Level Timeline

2012

Workstream Element PlanMonth

1Month

2Month

3Month

4Month

5Month

6Month

7Month

8

1. Joint Project Planning

2.. Internal Discovery Audit

3. Insight Interviews

4. Ideation Sessions

5. Concept Screening and Portfolio Mapping

6. Concept Elaboration

7. Venture selection and seed funding

8. Entrepreneurial execution

Key Event / Milestone

Activity

Our Promise: Within 45 days, you will be able to make very informed decisions aboutwhat changes you will need to effectively play the New Game.


ScalableSolutions

Catalysts

for Action

‘New Game’

Execution

GlobalNetwork

Access to our vast network ofthought leaders, world class

experts, premierepractitioners

Impact the challenges ofNEWness head-on

Old Game – New GameMethodology

Disruptive Thinking

Real-time coaching

… PRACTICAL EXECUTION

Venture-style growth projects

Managed-risk portfolios

Action Roadmaps

BOLD IDEAS …

Spot promising hunting grounds

Creative go-to-market models

Break with traditions

Multi-generational

Stretch your competencies and abilities

End-to-end solutions –and/or- Plug-and-play modules

INNOVATE … Our Value Differentiators


INNOVATE … Our creds

Clients

Publications

Articles and interviews on cutting-edge growthand innovation topics


INNOVATE … Our clients say:

The Walt Disney Company - China

“You helped me to clarify the unique business potential and challenges of thePRC and convey that to senior Disney people who are not personally familiarwith our environment. We have begun to shift from a mindset of competitivegrowth to one of seizing the possibilities in an entrepreneurial way.”

Stanley Cheung, Sr. VP – China

Johnson & Johnson

“I have personally found you to be a valuable advisor. You are able to quicklygrasp both the big picture of a business situation and its subtle nuances. Youcaused me to think differently about issues I was facing that helped focusactions.”

Neal Matheson, CTO

Weyerhaeuser

“This was a unique situation for Weyerhaeuser in that it was the first ventureoutside of existing product lines to be pursued in many years. I’ve appreciatedyour candor, sincerity and commitment to assist the team and myself in any waythat you could.”

Grady Mulbery, Business Manager


Founder and Managing Partner, Doug Berger

Doug Berger is an expert in breakaway growth, disruptive thinking and corporateentrepreneurship. He has more than 25 years of experience advising executivesand their global organizations. He has expertise in a broad range of industrysectors including consumer packaged goods, technology, health care, chemicals,entertainment and natural resources.

Doug conducts research on leading innovation practices and publishes TheInnovators ezine. He authored The One Hour Breakthrough: TranslatingAspirations into Action based upon his experience of training and coachingthousands of people in the art and discipline of breakthrough accomplishmentand disruptive thinking.

Doug held leadership positions in the computer industry in IT, large account salesand advanced product marketing. He founded Innovate LLC. in 2003. He has anMBA from Carnegie-Mellon and a BS in Physics, University of Rochester.

Thank you for this opportunity to introduce ourselves. We look forward to beginning a collaboration.

Innovate Executive Briefing

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