inno vits workshop business model canvas and disciplined experiments 19 feb 2013 stefano mizio
TRANSCRIPT
InnoVits WorkshopBusiness Model Canvas and Disciplined Experimentation.Some thoughts on why Big companies are starting to apply start up
strategies and tools
19 Feb 2013
Stefano Mizio
Who am I? Stefano Mizio
• Co-Founder of startup (LBS)• Spent a period in Silicon Valley as Technology
scout (exploration)• 15 years in Vodafone Italy (4 years as Head of
Mobile Internet technology – nimble/agile - group).
• A famous startup Omnitel: since 1995 Head of technology departments.
• MBA Thesis on Organizational Design (Innovation inside established organization/Ambidexerity framework)
Stefano Mizio
Agenda for today
• Large companies&startups cultures– Performance Engine vs Innovation initiatives
• Run disciplined Experiments
• Business Model Canvas and more
Stefano Mizio
Performance Engine
Performance engine strives to make every task, every process as repeatable and predictable as possible .
Innovation is neither repeatable nor predictable; it’s exactly the opposite: nonroutine and uncertain
V. Govindarajan –C. Trimble – The other side of innovation Stefano Mizio
Ambidexterity how organizations survive in the face of change?
Exploitation is about efficiency, increasing productivity, control, certainty.
Exploration is about search, discovery, autonomy, innovation and embracing variation.
Ambidexterity is about doing both
M.Tushman – C. A. O’Reilly III– Ambidextrous organizations Stefano Mizio
Exploration and…The raison d’etre for the ambidextrous form as opposed to a spin out is to allow an organization to experiment and to leverage organizational assets and capabilities that would not be available if the business were operating indipendently.
Stefano Mizio
A new trend…Large companies are embrancing open innovation and less hierarchical management and are integrating entrepreneurial behaviors with their exisisting capabilities
Scott D. Anthony – The new corporate garage Stefano Mizio
Modern Day (management) Neologisms
CORPORATE ENTREPRENURSHIP
ENTREPRENEURIAL ORIENTATION
INTRAPRENEURSHIP
LEAN ENTERPRISE
INTERNAL CORPORATE VENTURING
Stefano Mizio
Intrapreneurship/Corporate Entrepreneuship
Intrapreneurship can be defined as using entrepreneurial skills without taking on the risks or accountability associated with starting your own business. Instead, intrapreneurs are employees in larger organizations, who act as entrepreneurs while having the resources and capabilities of the larger firm to draw upon
Corporate Entrepreneurship: is the process by which individuals inside organizations pursue opportunities without regard to the resources they currently control (Stevenson)
Stefano Mizio
Big companies are starting to apply start up strategies
Four Eras of Innovation• Lone Inventors (Edison, Wright brothers)
• Corporate Labs (DuPont,, P&G)
• VC-backed Start-ups• Corporate Catalysts
Scott D. Anthony – The new corporate garage Stefano Mizio
Run disciplined exp.
Companies need to be learning-focused and failure tolerant.
Building a culture of experimentation
Or better … disciplined experimentationInnovations as experiments
Stefano Mizio
Run Disciplined Experiment
V. Govindarajan –C. Trimble – The other side of innovation
Learning : the process of turning speculative predictions into reliable predictions
Stefano Mizio
Innovation initiatives are deliberate departures from the past
Ongoing operation (90% data, 10% unknowns): central focus is to execute the plan.
Innovation initiative (10% data, 90% unknown): the plan is a hypothesis.
Shifting attention from data to assumptions
Stefano Mizio
14images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
Business Model Canvas Stefano Mizio
Product/Market fit
9 Guesses
Guess Guess
Guess
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Guess
GuessGuess
Stefano Mizio
Customer Development Model or How we search for the business Model
Stefano Mizio
Steve Blank – Customer Development Manifesto
Learning and Discovering
Design experiments, start listening
“…finding the right customers and market is unpredictable, and we will screw it up several times before we get it right.” S. Blank
testing your hypotheses outside the building
Pivot
Search Execution
Discovery
• How big is the market?• Who’s the customer?
– What’s their problem/need
• What’s the product/service/need?– Does it solve the customers
problem?
• How do you create demand?
• How do you deliver the product?• How do you make money?
Steve Blank – Customer Development ManifestoStefano Mizio
Pivoting
“Pivoting” is when you change a fundamental part of the business model.
A structured course correction designed to test a new fundamental hypothesis about the product, strategy and engine of growth. E. Ries
Eric Ries – The Lean StartupStefano Mizio
An example: Canvas Updated
•Research Labs•Equipment Manufacturers•Distribution Network•Service Providers
•Technology Design•Marketing•Demo and customer feedback
•Cost Reduction•Remove labor force pains
•IP – Patents•Robust Technology
•Demo, demo, and demo!!•Proximity is paramount
•Mid/Large Organic Farmers•Agricultural corporations•Weeding Service Providers
•Mid/Large Conventional Farmers
•Direct Service•Indirect Service• … then Dealers
Value-Driven
S. Blank – New Rules for the new bubble Stefano Mizio
So…• If you are an MBA student and you like
startup culture/openness/ innovation attitude a growing number of “incumbents” are going to hire intrapreneurs (I’m not sure in Italy but the world is your battlefield ).
• If you are a startupper: several methodologies are in place to help your job so, pivot and persevere and… Good Luck!
Stefano Mizio
