Intra Innovation

Definition of Terms
• Creativity
• Invention
• Innovation
• Entrepreneurship
• Sustainability
Definition of Terms
• Creativity – Thinking up new things
• Invention – Something patently new
• Innovation – Value to market
• Entrepreneurship – Getting $#!T done
• Sustainability – Long term performance

Source: Eyal Benajmin PhD

Types of Innovation
• Incremental
• Breakthrough
• Disruptive
s
• In 2005 P&G bought Gillette for 57B$
Why Innovate?
Why Innovate
• S – Curves
• Handoff
• Survival of the fittest
Why Innovate

Source: Eyal Benajmin PhD

What are the barriers and
setbacks to Innovation?
Entrepreneur Skill Set

Source: The Innovators DNA / Clayton Christensen

Entrepreneur Skill Set – Discovery Skills

Source: The Innovators DNA / Clayton Christensen

Entrepreneur Vs Manager

Source: Eyal Benajmin PhD

 Why Do Startups Beat Established Businesses?

So,
What can the
organization
do about it?

Source: Eyal Benajmin PhD

Innovation Strategies

Source: Eyal Benajmin PhD

The Venture Capital Funnel
Why did they fail?

(Bad plan) + (Great implementation)

= Resounding failure

What is a “Bad plan”? How do we make it

“good”?
Bad Plan
• Old school – Business plan, Prototype, Water fall process
• No (or late) feed back from clients

• The problem – PREMATURE Massive allocation of resources

• No battle plan survives contact with the enemy (i.e. the customer)
Pre-mature scaling
• “74% of high growth Internet startups fail due to premature scaling.”
- Startup Genome Project

• Premature and excessive client contracting efforts (e.g. advertising)

• Hiring too many workers
• Over emphasizing engineering and development
• Raising too much money, too soon.

• Not nearly enough validation efforts

Innovation Funnel
• As most startups fail, we need a LOT of ideas coming in.
• BUT, testing all these ideas is very resource consuming, right?

• WRONG
 Intrapreneurship Maturity Model

Scale, Sustainability
Internal Innovation organizations with funding and processes • Nurturing
Ideas may diverge from existing structure/product lines
A core group of innovation “instructors” to provide mentoring • Supporting
Processes that encourage and support innovation
Train employees to be “Entrepreneurially minded” • Enabling
Encourage employees to come up with new ideas
Employee spontaneously has an Idea
• Opportunistic
and finds herself a champion…
Innovation is counter to the organization culture • No
e.g. fear of failure Innovation

Source: Eitan Katz, Rami Gazit

Innovation Funnel

Problem/ Product/
Solution Fit Market Fit

MVP

Scale and
Pivot?
Growth

Process
Goal
Innovation Funnel
• As most startups fail, we need a LOT of ideas coming in.
• BUT, testing all these ideas is very resource consuming, right?

• WRONG
Hyper Innovation
• We can design a process that
• Supports and spurs Ideation – providing the means for scale
• Mentors Intrapreneurs through validation efforts
• Supports pivots in methods, requirements and end products
• Ascertains resources for validated product/market fit
• So we can have
• More Intra-preneurs
• Faster Go/Pivot/No-Go gating, leasing to reduced waste
• More successful Innovative projects
Glossary
• Product/Market Fit
• MVP – Minimum Viable Product
• Pivot
• Canvas
• Business Model Canvas
• Validated Learning
• Innovative Accounting
The lean startup
• Eric Ries
• Steve Blank
• Dave McClure
• Ash Maurya
• Alexander Osterwalder
What is the purpose of the process?
• “Search for a repeatable and
scalable business model” – Steve MVP
Blank
• Scientific approach Pivot?
• Build – Measure - Learn
• Each cycle is an Experiment aimed at
finding the business model
• Validating the underlying assumptions
Process
Goal

Source: https://blog.next.amsterdam
Business Model
• How to
• Create Value – i.e. usefulness
• Deliver Value
• Capture Value – i.e. revenue
Customer Segments
Customers are willing
• Who are the customers? to PAY (money, info,
• List all potential segments time, etc.)

• Can they be segmented even further?

• Who are the users?
• Who would be the early adopters within the customer segments?

Source: Eitan Katz

The Problem
• What are the 3 main problems your customers have?
• Are they aware of the problem?
• Do they want the problem solved?

Source: Eitan Katz

Unique Value Proposition (UVP)
• What is our promise to the customer?
• Distill to a single statement
• What would make the customer want to here more?

• A tool, for video distributors, which will enhance videos in order to

facilitate information search by making its content accessible

• Ver 2: Make video searchable

Source: Eitan Katz
The Solution
• What is the minimum feature set that demonstrates the
UVP?
• Minimum feature set – Minimum Viable Product – the MVP
• This NOT a prototype

Source: Eitan Katz

Unfair Advantage
• What are our (“Elbit/ELOP/Thermal”) advantages?
• Network effects, unique IP, existing customer base, brand, disruptive business
model

• Bad examples: first-mover, size, price

Source: Eitan Katz

Key Metrics
• What are the main metrics that drive what we do?
• Which experiments you will run to optimize the metric

Source: Eitan Katz

User Metrics
Re
ve • The User pays (not necessarily money)
n
ue • The user likes the product enough to refer
Conversion

Referral other new users

• The user continues to use the product,

Retention indicating she likes it or it is useful

• The user uses the product

Activation indicating a good first visit

• User acquired (e.g.

Source: Eitan Katz
Acquisition download or sign in)
What’s next
• Finding problems to solve
• Design thinking workshop?