How to Reduce the Risk of New Technology Commercialization Failure
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The document discusses a webinar on reducing the risk of new technology commercialization failures. It provides biographies of the speakers, Clay Phillips and Arik Johnson. The webinar will cover lean innovation and intelligence methods. Lean innovation involves customer discovery, hypothesis testing with minimal viable products, and pivoting based on validation of the business model and product-market fit. Two case studies will be discussed: a flow battery technology startup and applying habits for a large healthcare provider. The document encourages participants to ask questions during the webinar.
How to Reduce the Risk of New Technology Commercialization Failure
- 1. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by How to Reduce the Risk of New Technology Commercialization Failure A Complimentary Webinar from Aurora WDC 12:00 Noon Eastern /// Wednesday 8 April 2015 ~ featuring ~ Clay Phillips Arik Johnson
- 2. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by Clay Phillips Clay Phillips is VP Business Development ofLaunchPad Central, where he leads the cultivation ofnew relationships and consulting engagements involving the application oflean start-up innovation methods with large enterprises that need to accelerateand improve the commercialization ofnew technologies and business models. With 30 years ofaccumulated experience, his professionalinterests and expertise are in the areas ofbusiness development, strategicintelligence,transformative innovation, and alliance management. As an independent advisor, he helped technology start-ups discover new growth opportunities, worked with an NGO on sustainablemobility technology and business model strategies, and served as an instructor for an NSF sponsored Innovation Corps program focused on energy and transportation led by the University of Michigan and Next Energy, a Detroit based incubator. As an executive for General Motors, he led and participated in some of the most criticaldecisions faced by the company. These included working with Clayton Christensen and his team on disruptive technologies and business models in the transportation sector for a new R&D structure and investment portfolio, leading the strategic due diligence effort for several major alliancepartnerships, serving as a founding member of the company’s corporate venture capital arm, running the company’s strategic intelligence effort, and overseeing the development of commercialization, open innovation and partnering strategies for several advanced technology internal start-up programs. Clay served as an intelligenceofficer with the U.S. Navy. He holds a BA degree from Trinity College in Hartford, Connecticut and an MBA from Columbia University in New York City. Clay is an avid musician who plays guitar and sings in a classic and originals rock band that performs exclusively for charities and fundraising events. Email: clayphillips3@comcast.net The Intelligence Collaborative is the online learning and networking community powered by Aurora WDC, our clients, partners and other friends and dedicated to exploring how to apply intelligence methods to solve real- world business problems. Apply for a free 30-day trial membership at http://IntelCollab.com or learn more about Aurora at http://AuroraWDC.com – see you next time!
- 3. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by α Use the Questions pane onyour GoToWebinar control panel and all questions will be answeredin the secondhalf of the hour. α You are welcome totweet any comments on Twitter where we are monitoring the hashtag #IntelCollab or eavesdrop via http://tweetchat.com/room/IntelCollab α Slides will be available after the webinar for embedding and sharing via http://slideshare.net/IntelCollab α To viewthe recording anddownload the PPT file, please register for atrial membershipat http://IntelCollab.com. Questions,Commentary & Content
- 4. Lean Innovation & Intelligence: How to Reduce the Risk of New Technology Commercialization Failure Clay Phillips Aurora WDC April 2015 1
- 5. Outline • Reprise from Indianapolis 2013: “Innovation Intelligence” • What is “Lean Innovation?” • How does lean innovation work in practice? • Case1: Flow battery technology start-up • Case 2: Habit formation for a large health care provider 2
- 6. 3 • Intelligence can have an important strategic role and impact when an industry is going through fundamental disruptive changes • Different frameworks, tools, skills, and methods are needed to be effective in a disruptive environment • Innovation intelligence: the application of intelligence principles to the creation of a new and unique competitive advantage, new businesses, and the transformation or destruction of old ones Innovation Intelligence G2 Indianapolis, October 2013
- 7. Innovation Intelligence G2 Indianapolis, October 2013 “The application of intelligence principles to the creation of a new and unique competitive advantage,new businesses,and the transformation or destructionof old ones” • Systems level view • Blind-spots and orthogonal sectors / actors • Leave no assumption unturned • Draw from and influence corporate VC, M&A and alliance formation • Draw from and influence IP strategy • Balance new business models with new technology • Ambidextrous and agile • Creative, constructive, and credible 4
- 8. Then, I saw the light….of lean innovation 5
- 9. What is Lean Innovation? 6
- 10. What is Lean Innovation? • Customerand business model discovery • Hypothesis and evidence based via open ended interviews (“get out of the building”) • Product-market fit • Ecosystem dynamics • Minimal viable product • “Pivots” • Investment vs. technology readiness levels 7
- 11. What Does Lean Innovation Do? Tests problems before solutions,which saves time and money otherwise spent trying to refine a productor service that is fundamentally commerciallynon-viable 8
- 12. The Business Model Canvas 9
- 13. STEP 1: ALIGNMENT + ASSESSMENT STEP 2: CORE PRINCIPLES CUSTOMER DISCOVERY + CUSTOMER SEGMENTS STEP 6: REVENUES + UNIT ECONOMICS STEP 7: CUSTOMER RELATIONSHIPS STEP 8: SYNTHESIS + INVESTMENT READINESS LEVEL STEP 3: PRODUCT- MARKET FIT STEP 4: MAPPING THE ECOSYSTEM + SIZING THE MARKET STEP 5: CHANNELS + PARTNERS ROADMAP TO IMPLEMENTATION Typical Steps for a Lean Innovation “Workout” 10
- 14. Enterprise Accelerators Government Universities Lean innovation applies to governments, academics, accelerators and enterprises • National ScienceFoundation adopted the methodology as the centerpiece of the Innovation Corps program • Graduate level program in leading universities as fast way to vet pre- startups • Increasingly used by angel and venture investors as the principal vetting tool for investment candidates • Tailored application within larger enterprises to evaluate internal start- up programs and manage a broader innovation portfolio 11
- 15. Find Filter Fund • Customer Discovery • Value Propositions • Product-Market Fit • Business Model Canvas • Minimum Viable Product • Investment Readiness Levels • Key Performance Metrics • Investment Allocation • Trends and Weak Signals Scanning • Brainstorming and Ideation • Blind-spot detection Refine Down-select Learn Integrate Lean Innovation focuses on filtering ideas and integrating the complete find-filter-fund cycle 12
- 16. Markets Innovation Incremental New New Transformative Current Increasing Uncertainty A fundamental problem for larger enterprises is reaching beyond incremental innovation and growth 13
- 17. Shark Tanks Companies often have too many ideas to cull through and do not have an efficient way to figure out which ones have more promise than the others 14
- 18. Sometimes the “HiPPO*” has the final say *Highest Paid Person’s Opinion 15
- 19. Lean Innovation vs. Conventional Product Development Idea Plan Funding Build Launch Customer Response Go/No Go Idea Customer Discovery Hypothesis/Test/Iterate Go/No Go Launch Funding Build No businessplan survivesfirstcontactwiththe customer: mostnewinitiativesfail. Optimizing thebusiness modelbeforefunding improvesthechances forsuccess 16
- 20. Start-up Enterprise Objectives Entrepreneurial success: launch, funding, speed Intra-preneurial success: accelerated growth, integration Culture Embryonic Established Structure Flat Hierarchies Business Models Open Established Pain Points Business acumen Adopting new business models Risk Tolerance Moderate to high Low to moderate Decision Making Fidelity Low to moderate High Bias Disruptive change Incremental change Startup vs Enterprise Applications of Lean Innovation 17
- 21. Lean Innovation DNA Total Quality Management (Deming) Agile Development Toyota Production System Lean Innovation 18
- 22. Lean Innovation Thought Leaders 19 Alexander Osterwalder Eric Ries Steven Blank
- 23. Gasoline is • liquid • doesn’t suffer fromrange anxiety • pump-able So is PEF battery !!! PEF battery = 4X energy of existing lead-acid, 1/2 cost of Li-ion, 3 minute charge replenishment RedOx Flow Batteries Pump-ableFormatHigh Energy Density SolidLi-ion Batteries Case 1: Innovation Corps Flow Batteries Initial Value Proposition 20
- 24. Nissan Motor Light Trucks Co. ScaniaMAN Freightliner DAIMLER AG Geely Chery Proton GAZ Volvo Truck RVI / Mack Great Wall BYD 50.4%51.2% 41% 5.9% 16.7% 3.5% 89.3% 19.9% 3% 44.4% 15% 99.3% 80.1% 25% 77% 44%51.4% 6% 93.4%100% 100% 100% 100% 100% 100% 45.5% 100% 100% 100% 75% 89.2% 17.4% 100% 85% 54.2% Last update: April 2014 OEMs in outer ring have ≥5% global market share italics = voting stock CHINA / SE ASIA EUROPEJAPAN INDIA 3% 15% 100% 70% 14% 2.4% Traditional Global Automotive“Gameboard” REALITY CHECK: 20 years TOO SLOW FOR A START-UP TO SURVIVE 21
- 25. • EUV are simpler stepping stonemarket to thebigger vision • 5X more EUVs than EV sales ! • BIGGER market with SMALLER value supply chain • Competition areCHEAP Lead-acid battery RE-FOCUS BASED ON CUSTOMER DISCOVERY All ofour yearsofproud earth changing workwith blood sweatand tearswould début in…Baggage Handlers EvolvedAwareness: Electric UtilityVehicles •TAM$600 M •SAM $300 M •Target$75 M Initial Delusion: Total USAuto Sales • TAM$40B • SAM$10B • Target$2.5B CurrentEV Market •TAM$720 M •SAM $140 M •Target$7.2 M BEFORE I-CORPS AFTER ALL THE INTERVIEWS 22
- 26. CUSTOMER ARCHETYPE FLEET of utility vehicles Controlled ecosystem: • 10-100 utility vehicles at location • One recharge/replenishment station Operate24/7: • Look for high reliability equipment • Easy maintenanceor accessibleservices • Cost may or may not bea critical issue Influenced by: • Operations managers, Purchasing offices • Zero emissions indoors • May beregulated by city/state policies/OSHA Picture fromour in person customer interview with Voss at plant floor 23
- 27. TECHNOLOGY-TO-MARKET May-June 2014 Learned: • Importance of Value Proposition • CustomerDiscovery Process • Business Language • Nuances of EV/OEMworld • Start-up process • Funding opportunities • Policies and Regulations Extended the Network Identified Path Forward as a Start-up Company Found Prospective Partners December 2014 Founded “Influit Energy LLC” 24
- 29. CLIENT GOALS 1. Improve the clinical care and health outcomes of our patients through the development of a new clinical product line. 2. Identify specific commercializable product/service initiatives with potential to generate patient growth and a new revenue stream. 3. Learn a new methodology for accelerating business development and the commercialization of innovation. One Healthy Habit is aligned with our commitment to be national leaders in the transformation of healthcare.
- 30. Integrated Healthy Habits as Possible Solution Applying BJ Fogg’s Habit Formation Principles 27
- 31. 28 Four Independent Initiatives Became an Integrated Portfolio
- 32. Intelligence is a Critical Element of Lean Innovation 29
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- 34. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by Thank you! Now how about a little Q&A? Clay Phillips Email: clayphillips3@comcast.net The Intelligence Collaborative is the online learning and networking community powered by Aurora WDC, our clients, partners and other friends and dedicated to exploring how to apply intelligence methods to solve real- world business problems. Apply for a free 30-day trial membership at http://IntelCollab.com or learn more about Aurora at http://AuroraWDC.com – see you next time!
- 35. The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by Still time to register… G2.RECONVERGE.net