The Business of Innovation; How to be a Successful Intrapreneur

CDO SUMMIT

The Business of Innovation: How to be a Successful Intrapreneur

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JOIN THE CONVERSATION@DDGinc#CDOintrapreneur2Here are out Handles & HashtagsA public company?A small company?

Who is already in a position of innovation in their businessWho is here because they are about to be in the innovation businessOthers? Why are you here23

WHO WE AREINDEPENDENT ADVISORLARGE CONSULTANCYA boutique consultancy that drives top-line revenue growth through digital transformation. We specialize in implementing new innovation methods and practices with our clients. @DDGinc #CDOintrapreneurDDG stays until the Revenue hits the P&L34WHO WE SERVE

Powerful strategic and creative thinking with a wealth of expertise in digital- VP, Digital Strategy & Development, IBM}

Marketers who not only come up with the big idea but can also execute it flawlessly- SVP, Citibank}

A critical role in the thinking and execution of our brand innovation - SVP, The Economist}True innovators with a great balance of practical business management. I sleep better knowing they are here - GM, NBCUniversal

}@DDGinc #CDOintrapreneur45TODAYS WORKSHOPWhy One Intrapreneur Is Worth A Hundred "Engaged" Employees

Everyone is talking about why the intrapreneur is important.

Intrapreneurs come to the rescueShould big companies give up on innovation?The rise of the intrapreneurbut few are talking about how to do it.}}}}@DDGinc #CDOintrapreneurBusiness magazines, trade publications and university press are talking about the WHY56WHAT IS AN INTRAPRENEUR?How would you define it ?@DDGinc #CDOintrapreneur67A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovationWHAT IS AN INTRAPRENEUR?@DDGinc #CDOintrapreneur7A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovationWHAT IS AN INTRAPRENEUR?8@DDGinc #CDOintrapreneur8A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovationTurning Risk Taking into ProfitWHAT IS AN INTRAPRENEUR?9@DDGinc #CDOintrapreneur910Executing your vision and measuring your outcomesTHE TURNAssessing People, Platforms & ProcessSegmenting your internal audience and developing a unique approach for eachThe benefit for achieving your goalsOrganizations understand that digital transformation is imperative, but face challenges in formulating an effective plan to drive the change.

EVANGELIZEGAUGEEVANGELIZEPROVEREWARDThe DDG Approach: @DDGinc #CDOintrapreneurWe call this process THE TURN because the Intrapreneur is responsible for turning the big ship that is your companyGaugeWhat type of innovation environment is right for you.A new Practice or new methodsNew Products or new brandsEvangelizeAre you taking an Inside Out view or an outside in view on your need for InnovationWho are your protagonists and who are your antagonistsHow can you tell them apartProveWhat form is your innovation practice going to take What previous model are you going to borrow fromThere are plenty of other risks to manage dont make the TURN one of those risksFOCUS on innovation for your business not the process or approach you will take to get thereRewardKnow what you want next for achieving todays goalsHow are you, your company and your customers going to be rewarded

1011THE TURN & RISK

GAUGEEVANGELIZEPROVEREWARD

Accomplishing the Turn requires numerous points of effective Risk-Taking at each stage beginning with the right mind-set.@DDGinc #CDOintrapreneurThere are risks everywhrere along The TurnStarting with the right mindset

1112MIND-SET: WHAT DO YOU SEE A LOT OF IN THIS VIDEO?

@DDGinc #CDOintrapreneurLETS WATCH THIS VIDEO TO EXPRESS THE JOURNEY OF THE INTRAPRENEUR

DID THAT FEEL FAMILIAR TO EVERYONEWHAT DID YOU SEE A LOT OF DURING THAT VIDEO

Its easier to see the trees than the space in-between, even though there is a lot more space than there are trees

DID YOU NOTICE THAT THERE IS A PATH THROUGH THE TREES

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13GAUGING READINESS FOR RISK


@DDGinc #CDOintrapreneur1314GAUGING READINESS FOR RISKWhat type of innovation environment is right for your organization?Organizational ReadinessLowHighNeed for InnovationLowHighJust Milk the Cash CowOur product can always be betterWe need to swing for the fencesThats not what we are aboutNEWMETHODSNEWPRACTICE@DDGinc #CDOintrapreneurIs your organization ready for innovationDo you have an innovation practice?Do you have practitioners scattered throughout your corp?Is there a defined structure for Innovation?

What is the internal perception of the need for Innovation in your company.Do you have the appropriate Brand Ego? more on that laterWould external constituencies agree with your internal assessment of need for innovation?

Product Optimization, New Product, Brand extension

New Methods SCRUM or 20% time (google)

New Practice new organization distinct and separate from the rest of your org.

14GAUGING APPETITE FOR RISKWhat level of relative risk is appropriate for your companyOrganizational ReadinessLowHighNeed for InnovationLowHigh15

Appetite for Risk

@DDGinc #CDOintrapreneurMilk the cowCoach Low innovation company, staying the course, but increasing revenues 5% a yearOwn almost 1/3 of the US handbag market, but that percentage has declined 5 points over the past 2 yearsSwing for the fencesT-MobileLate entrant staying hungry as it grows is businessfirst to break the subsidy model in 2009Fist to offer nationwide 4g serviceNow they are the only US service to offer, Free international roaming, no contractsTheir market share doubled in 2013Changing the way the industry operatesWhats your Risk score today if its ZERO you have a tomorrow problemIt its 100 you have a yesterday problemThe range for appropriate innovation should be pegged againstYour historical level of acceptable risk in your orgYour competitors current appetite for Risk dont want to get out innovatedManagement is always talking about managing risk - Risk Avoidance. But who is talking about the dangers of Avoiding RISK that must be the job of the Intrapreneur

15GAUGING APPETITE FOR RISKWhat level of relative risk is appropriate for your companyOrganizational ReadinessLowHighNeed for InnovationLowHigh

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@DDGinc #CDOintrapreneurOur product can always be betterDominoes Pizza is pizza right? Well Dominos doesnt think so -- 85% of Dominos menu items are new since 2008. Dominos is consistently 1of the top 5 companies in terms of online transactions behind Amazon and Apple (40% of Dominos Sales in the US come through digital ordering channelIts Still Pizza its product innovationThats not whats were aboutIBM Global Experience Lab London, Bangalore, Tokyo, NY full floor and soon to be AustraliaGeneral Mills Innovation IntersectionGE OPEN Innovation Crowdsourcing initiativeEconomist Running the same business for 168 years and now running full steam into the potential demise of their printed formCue their business development team who were permissioned to work on the 2nd brand extension in the companys history launching Economist Education

1617COMMUNICATING THE IMPORTANCE OF RISK


@DDGinc #CDOintrapreneur17Brand Ego: Outside In vs. Inside OutCOMMUNICATING THE IMPORTANCE OF APPROPRIATE RISKINSIDE OUTPEERSEMPLOYEESEXECUTIVES

CUSTOMERSTHE STREETCOMPETITORS

OUSIDE IN18@DDGinc #CDOintrapreneurIs your sense of self derived from customer sentiment or corporate belief

Inside out = artificially high

Outside in = Measured approachUse data to drive your points home and sell Innovation into your companyIts not you, its the data talking

Are you Tracking your Competitors18Organizational ReadinessLowHighNeed for InnovationLowHigh

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COMMUNICATING THE IMPORTANCE OF APPROPRIATE RISKBrand Ego: Outside In vs. Inside Out@DDGinc #CDOintrapreneurWould Pfizer put themselves here?Would Coach put themselves hereWhere would your org. fall on this list

1920MANAGING RISK ADVERSITY OF ANTAGONISTS


@DDGinc #CDOintrapreneur20Friend Vs. Foe21How can I tell the difference?Weve tried that beforeThat didnt work beforeThats not our businessMANAGING THE RISK ADVERSITY OF ANTAGONISTS

Thats not how we do itThat doesnt work hereI dont think Joe would agree with that

@DDGinc #CDOintrapreneur21Friend Vs. Foe22ProtagonistsWeve tried that beforeThat didnt work beforeThats not our businessMANAGING THE RISK ADVERSITY OF ANTAGONISTSThats not how we do itThat doesnt work hereI dont think Joe would agree with thatAntagonists

@DDGinc #CDOintrapreneurListen through what they are saying and hear why they are saying itAre they worried you are going to poach members from their teamAre they worried you are going to marshal financial resources they are looking forAre they worried you are going to disrupt their status quoAre they worried you are going to fall victim to the same pitfalls they encountered previously in the company

2223Better Practices for Managing AntagonistsCollaborate to address blockers directlyConnect early and oftenIts not your opinion, its the data talkingProtagonists & AntagonistsMANAGING THE RISK ADVERSITY OF ANTAGONISTS

@DDGinc #CDOintrapreneurCritical get insights from competitors, customers and the StreetMeasure these conversations and use the dataIts not your opinion, its the data talking

2324PROVING THE RISK IS WORTH ITGAUGEEVANGELIZEPROVEREWARD

@DDGinc #CDOintrapreneur2425PROVING THE RISK IS WORTH IT THE INCUBATOR MODELIf your innovation practice produces all sizzle and no steak how will you create value?@DDGinc #CDOintrapreneurLand of the coolIs it repeatableIs it scalableIs it Real Can you point to something as a lasting impression, artifact, division25

26PROVING THE RISK IS WORTH IT THE INCUBATOR MODEL@DDGinc #CDOintrapreneurTHE VCThey already have a long list of innovation opportunities Just ask themBut they dont have the funding or the capabilities to execute on them or the appetite for risk They wont be rewarded properly because BAU hasnt set this up as a measure for their performanceVCs must have skin in the gameThey must invest their own program dollars for innovationThe company MUST co-fund these projects to ensure appropriate skin in the game and leverage in the model for the VC

THE INCUBATORMust come with 2 critical elementsProcess & Dollars for a new practice within a company with low readinessProcess A way to execute on innovationThis can be lean or agile, running teams in scrum for exampleThey must have a physical space that is separated from the BAU teamsDollarsThey must have dedicated budget for innovation to support the system as a wholeThis budget should also go towards the hardening and scaling of the practice across depts or GEOs

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27PROVING THE RISK IS WORTH IT THE INCUBATOR MODELNEWINNOVATIONPRACTICE@DDGinc #CDOintrapreneurStartupsInnovation projects must be stand alone entities, potentially working side by side, but structured and measured as separate activitiesThese projects must be allowed to fail Which Im sure youve heard before.Defining failure/success at the outset of a project is critical to making this assessment in the future

Closing the LoopSuccessful projects must be able to integrate back into BAU teamsThis is the outcome of the appropriate risk measurement activities in the Guage TurnIf its too cool, too progressive to fit within the org, its probably not the right type of innovation project and is the territory of all sizzle and no steak

Closing The reason this is an important model is because it ensures a repeatability of process and a predefined means to incorporate innovation back into the business at large

2728PROVING THE RISK IS WORTH IT THE INCUBATOR MODELHow do you measure ROI in your business?@DDGinc #CDOintrapreneur2829IMPACTINVESTMENT= RETURNINVESTMENT REQUIREDActual / Planned Investment $Time, FTE, Costs ReqdRTrack Your ActionsDefine Measurable KPIBusiness Metric tied to KPIsIMPACT SIZINGAnalyze impact for each project

Repeatable process

Business impact based decisions

PROVING THE RISK IS WORTH IT THE INCUBATOR MODEL@DDGinc #CDOintrapreneurInnovation must be measured in a different manner than BAUNot going to hit your 8% hurdle rate for ongoing ops

Keys to measurementMeasure something / anything it wont be perfect. The company wont be set up to provide you data in the manner you need but just measure somethingRevenue attribution models inside of large orgs are well defined and highly politicized territory You will not get the attribution you are looking for with an innovation practice at least not in its infancyAscribing impact to Revenue is ideal, but most of you wont be able to directly make that attributionCome up with Proxies for impact to business valueWhat actions are you going to measure in your innovation practice that will lead you to an impact int hese proxiesKPIMeasure early and often what can you measure today that will let you know you are on to something innovativeWhat measures did I set up at the outset that will define when do I kill something

2930REWARDGAUGEEVANGELIZEPROVEREWARD

@DDGinc #CDOintrapreneur30TURN RISK TAKING INTO REWARDCustomer SatisfactionExceeding expectationsEmployees MoraleLeadership PraiseShareholder ValuePersonal rewardCUSTOMERSSELFCOMPANYConstituencies of Reward

31@DDGinc #CDOintrapreneurYou should setup your reward mechanism (both the measurement and the expectations for the rewards themselves at the outset of the Turn.

This will ensure you take only good and appropriate risks for you and your company31TURN RISK TAKING INTO REWARDBe SelfishWhat position will you take after you create a new innovation practice for your company? Know your timeline - how long will the company give you to succeed?How will you be measured during this process and what reward should be earned?

32@DDGinc #CDOintrapreneurYou should setup your reward mechanism (both the measurement and the expectations for the rewards themselves at the outset of the Turn.

This will ensure you take only good and appropriate risks for you and your company3233

DOES THIS VIDEO FEEL DIFFERENT NOW@DDGinc #CDOintrapreneurDOES THIS VIDEO FEEL DIFFERENT NOW

Do you see the trees differently

Are the spaces easier to see now?

Ooh you see that skier this time there are others out there

Do you see the tracks in the powder

BE AN EXPLORER IN WHAT YOU INNOVATE, NOT HOW YOU INNOVATE3334RECAP TURNING RISK TAKING INTO PROFITTHE TURN: Innovate on your business, not your approach to innovation

Gauge your personal and corporate readiness level

Have an appropriate Brand Ego and let the data speak for you

Manage your antagonists, they are critical to your success

Incubator Model - Establish proven & measurable processes for innovation

Be selfish Define your Reward at the outset, not at the end

See the Spaces, not the Trees@DDGinc #CDOintrapreneur34WORKSHOPOrganizational ReadinessLowHighNeed for InnovationLowHigh35@DDGinc #CDOintrapreneur3536CONTINUE THE CONVERSATIONDavid GasparManaging [email protected]

Justin TobinFounder & [email protected]

Christophe JammetFounder & [email protected]

Scott SingerManaging [email protected]

Judy SimmonsVice [email protected]

Eva [email protected]

@DDGinc#CDOintrapreneur@DDGinc #CDOintrapreneur3637AppendixAppendix

http://blogs.hbr.org/2014/03/should-big-companies-give-up-on-innovation/?utm_source=twitter.com&utm_medium=social&utm_campaign=buffer&utm_content=buffer9419b

http://whartonmagazine.com/blogs/defining-the-global-intrapreneur/

http://www.ft.com/cms/s/2/556c3a46-8fdf-11e3-aee9-00144feab7de.html#axzz2wzuXRLvS

http://www.techvibes.com/blog/the-rise-of-the-intrapreneur-2013-08-27

http://solutions.mckinsey.com/Index/blog/blog-repository/2014/03/reinventing-management-consulting-%E2%80%93-the-story-of-an-intrapreneur/

http://www.director.co.uk/MAGAZINE/2014/04-April-2014/Thinking-smart-67_07.html

http://www.forbes.com/sites/larrymyler/2013/09/13/beyond-employee-engagement-why-one-intrapreneur-is-worth-a-hundred-engaged-employees/

http://www.forbes.com/sites/elenabajic/2014/04/09/7-tips-for-being-a-successful-corporate-intrapreneur/?utm_campaign=forbestwittersf&utm_source=twitter&utm_medium=social

http://3plusinternational.com/3plus-event/intrapreneur/?utm_content=buffer7da2b&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

http://solutions.mckinsey.com/Index/blog/blog-repository/2014/03/reinventing-management-consulting-%E2%80%93-the-story-of-an-intrapreneur/

http://steveblank.com/2014/03/26/why-internal-ventures-are-different-from-external-startups/

2x2

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http://dominosbiz.com/Biz-Public-EN/Site+Content/Secondary/About+Dominos/Fun+Facts/

http://investing.businessweek.com/research/stocks/earnings/earnings.asp?ticker=COH

http://www.fastcompany.com/most-innovative-companies/2014/t-mobile

http://www.businessinsider.com/explaining-ebays-turnaround-2014-2?page=237

The Business of Innovation; How to be a Successful Intrapreneur

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Transcript of The Business of Innovation; How to be a Successful Intrapreneur