Michelin’s startup journey…

…gaining traction in a dynamic spaceJohannes Mutzke

Global Incubator Program Office

Michelin Group

WHY

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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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ory

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Inno

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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 …

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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”)

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Our approach for execution…A process built for maturation and progressive de-risking of concepts

Ent

repr

eneu

rial

Cor

pora

te G

row

th

Gro

wth

& A

ccel

erat

ion

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)

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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…

THANK YOU

Michelin’s startup journey…

…gaining traction in a dynamic space