Stefan Korn, CEO Creative HQ

Startup Innovation for large organisations

Creative HQ – We Are Wellington’s Startup Base We work with entrepreneurs and startups to help grow their businesses. We help anyone looking to get involved in the startup space - from students to investors to large organisations – we educate them about open innovation and the Lean Startup Methodology. Over the last 12 years we have created over 100 startups – here are some of them:

Creative HQ – We Are Wellington’s Startup Base We run Lightning Lab, New Zealand’s national startup accelerator which has generated over $4m in private investment in startups to date. We run the Global Growth Programme, our regional business incubation programme which has produced 112 startups to date, contributing over $20m in total annual revenues and over 150 FTE jobs from our startups. We also run open innovation and acceleration programmes with large organisations Inland Revenue MBIE Callaghan

Innovation Victoria University

Why is innovation important?

• Many large organisations and industries face the dilemma of “disrupt or be disrupted” (Apple – Music / Phones, Amazon – publishing, etc)

• Organisations must foster innovation to attract and retain Generation Y

talent (2014 Deloitte Millennial Survey) - Gen Y believe businesses and government are not doing enough to address pressing issues.

• Sharemarkets are paying a premium for innovative companies (Xero rated most innovative growth company by Forbes, 2014)

However enterprises often struggle with innovation because of their size, mindset (strict risk management and control) and patch protection -> Enter Open and Startup Innovation

Benefits of open / startup innovation?

• Startup innovation is rapid, inexpensive and very effective – 3 months is the longest innovation cycle

• Customer-centricity is “baked in” to all innovation techniques –

understand the mindset of customers is paramount. Consumer buy-in or industry buy-in to a new product/service is assured through direct involvement in the development

• Most techniques make use of the power of communities / crowds to leverage significant pools of knowledge, expertise and manpower

Who uses open / startup innovation?

Walt Disney Company, Barclays Bank, Microsoft, Proctor & Gamble, Mondolez, Sprint, City of Los Angeles, United Nations …

What are the innovation techniques used?

Startup / open innovation uses a collection of approaches to improve an organisation’s innovative capabilities, such as:

• Lean Startup Methodology • Hackathons • Startup Weekends • Crowdsourcing competitions • Enterprise accelerator programmes • Corporate incubators

The Lean Startup Methodology

A “scientific method” for creating new products / services that customers need/want developed by Eric Ries. Involves an iterative approach to

• create “Minimum Viable Products” (MVPs) based on “Market Hypotheses”

• test, measure and refine MVPs • achieve product/market fit • scale once product/market fit has been achieved

The lean startup methodology is inherently customer-centric and follows the principles of design thinking.

Hackathons

A hackathon (aka hack day, hackfest or codefest) is a time-bound event (often 24h) where programmers and UI/UX designers create “hacked together” solutions (often involving large amounts of data).

• Often used for community engagement to solve civic issues (e.g. “Hack Miramar”)

• Used on a large scale in the US (using data from data.gov)

Startup Weekends

A 54-hour event where developers, designers, marketers, business managers and startup enthusiasts come together to share ideas, form teams and build working prototypes for startup ideas.

A global movement: +1500 events, with more than 45,000 alumni across 400 cities in over 100 countries. Many organisations use the same format under a different name / brand – e.g. in NZ: “Innes48 Business Startup Competition”

Crowdsourcing competitions: APP4IR Key facts • 300 participant registrations • 58 submissions • 6 shortlisted teams presented to

Inland Revenue “dragons” • Winners Matt Innes and Josh Lee

developed solution with IR team

Outcomes for IR • Very positive response from businesses and

government - alternative procurement tapping into NZ talent

• Vast amount of customer insight • Delivery of the app in less than 12 months

(very short by Inland Revenue standards)

Examples: C-Prize

Enterprise Accelerators: The MBIE R9 Accelerator

Key features of a business accelerator • 12-week, mentor-intensive, “pressure cooker” environment to develop an

investable proposition and present at an investment event • Based on design-thinking, lean startup and customer centricity • Originally created in the US (e.g. YCombinator and TechStars) – have

produced companies like DropBox, AirBnB and Uber

Summary

• Startups are renowned for their ability to innovate rapidly and disrupt markets/industries

• Large organisations and industries can use “startup techniques” to benefit from rapid/lean innovation or to “self-disrupt”

• Startup and open innovation techniques offer tried and tested methods – local partners like Creative HQ are available to help enterprises make use of these techniques

Wellington’s Startup Base

Thank you