inno vits workshop business model canvas and disciplined experiments 19 feb 2013 stefano mizio
TRANSCRIPT
InnoVits Workshop Business 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 experimentation
Innovations 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
14 images 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
Guess
Guess
Guess
Guess
Guess Guess
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 Manifesto
Stefano 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 Startup
Stefano 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
•Direct Service with
equipment rental
•($1,500/d; 120d/yr )
•Low density: $1,500/d
•High density: $6,000/d
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
