Professional Documents
Culture Documents
de gestión de la TT
Carlos S. Baradello, PhD
General Partner, Alaya Capital Partners
Managing Partner, Sausalito Ventures
Professor of Global Innovation & Entrepreneurship
Conversation Themes
Personal Introduction
Corporate Entrepreneurship (CE)
why? – MOTIVATIONS
Innovation: Incremental vs. Radical
Implementation Models of CE
How to Organize/Manage CE?
Closing Reflection
Managing Partner, Professor of Social Innovation &
Carlos S. Baradello, PhD Sausalito ventures Global Entrepreneurship
Hult International Business School
Managing Partner, Professor of Social Innovation &
Carlos S. Baradello, PhD Sausalito ventures Global Entrepreneurship
Hult International Business School
What makes an Established
Firm successful?
• Predictability
• Protect the brand
• Limit risk taking
• Well established repetitive processes
• Fewer products very successful
• Specialization => Over-Specialization
• Mastery of the Product/Market they serve
>> Comfort zone
…in other words, minimize risk taking,
because they have too much to lose!
What makes an Established
Firm successful?
• Predictability
• Protect the brand
• Limit risk taking
• Well established repetitive processes
• Fewer products very successful
• Specialization => Over-Specialization
• Comfort zone
…in other words, minimize risk because they
have too much to lose!
Business Life Cycle
Incubation
&
Acceleration
$Growth$
Survival Renewal
Inception & New
Regeneration Entrepreneurial
stage needed ?
Time
Business Life Cycle of a Firm
Can the corporation enjoy
sustained periods of continuous
Regeneration?
Sales
Consolidation Maturity
$Growth$
Survival Renewal
Inception & New
Regeneration Entrepreneurial
stage needed ?
Time
Ten Key enabling characteristics of
Disruptive Innovations
Silicon Valley (SV) propelling new
ventures(1)?
1. Favorable rules of the game -- pro-business formation.
2. Knowledge intensity -- pro new ideas.
3. A high-quality and mobile work force.
4. Results-oriented meritocracy -- Talent and skills are king.
5. A climate that rewards risk-taking and tolerates failure.
6. Open business environment -- win-win exchanges of
knowledge.
7. Universities and research institutes that interact with industry.
8. Collaborations among business, government, and nonprofits.
9. High quality of life -- a beautiful place to work, live and play.
10. Specialized business infrastructure: Financial, Legal,
Headhunters, Accounting, Consultants, etc.
(1) The Silicon Valley Edge, Edited by Chong-Moon Lee, William F. Miller, M. Gong Hancock, and Henry S. Rowen, Stanford University Press, 2000.
S-Curve of Technology Performance
Market
Extensions
ESTABLISHED Product
Existing CORPORATION
CURRENT Development
Strategy
Market(s) BUSINESS
Operational
Innovation
Efficiencies
Efficiencies
Becoming an Entrepreneur
Managing Firm’s Innovation Process
TECHNOLOGICAL CHANGE
Semi-radical Radical
NEW
Innovation Innovation
SIMILAR
Incremental Semi-radical
Innovation Innovation
SIMILAR NEW
BUSINESS MODEL/MARKETING CHANGE
Market Driven vs. Technology Driven Firms:
Disrupting the Established Firm
Technology
TECHNOLOGICAL CHANGE
Driven
Semi-radical Radical
NEW
Innovation Innovation
SIMILAR
Incremental Semi-radical
Market
Innovation Driven
Innovation
SIMILAR NEW
BUSINESSBUSINESS
MODEL/MARKETING
MODEL CHANGECHANGE
Known vs. Unknown:
Comfort vs. Discomfort Managing the
TECHNOLOGICAL CHANGE “Unknown-
Knowledge”
Semi-radical Radical
NEW
Innovation Innovation
SIMILAR
Incremental Semi-radical
Innovation Innovation
Managing the SIMILAR NEW
“Known-
Knowledge” BUS MODEL/MARKETING CHANGE
Incremental vs. Radical vs. Disruptive
Managing Firm’s Innovation Process
Low Cost New Market
Threats Niche Threats Unrest
History Lesson: Successful
Firms can die FAST!
Market
Extensions
ESTABLISHED Product
Existing CORPORATION
CURRENT Development
Strategy
Market(s) BUSINESS
New NEW
Market(1) BUSINESS
Market BUSINESS
Extensions EXTENSIONS
Existing EXISTING
Markets BUSINESSES
New
Existing Product New
(1) New to the Industry(2)
Product Extension Product(1)
firm Entry
(2) New to the In In In
and/or
world Current Current Current
Industry
Industry Industry Industry
creation
Battle Lines
Towards a Product Management Portfolio
Create
Market NewNEW
Creation(2) INDUSTRY
Options
(10%)
New NEW
Market(1) Develop BUSINESS
New
Market BUSINESS
Businesses
Extensions EXTENSIONS
(20%)
Existing EXISTING
Markets BUSINESSES
Extend and
Protect New
Existing Product New
(1) Core
New to the Business Industry(2)
Product Extension Product(1)
firm (70%)In Entry
(2) New to the In In
and/or
world Current Current Current
Industry
Industry Industry Industry
creation
Battle Lines
Managing Firm’s Innovation Process
TECHNOLOGICAL CHANGE
Semi-radical Radical
NEW
Innovation Innovation
SIMILAR
Incremental Semi-radical
Innovation Innovation
SIMILAR NEW
BUSINESS MODEL/MARKETING CHANGE
Market Driven vs. Technology Driven Firms:
Disrupting the Established Firm
Technology
TECHNOLOGICAL CHANGE
Driven
Semi-radical Radical
NEW
Innovation Innovation
SIMILAR
Incremental Semi-radical
Market
Innovation Driven
Innovation
SIMILAR NEW
BUSINESSBUSINESS
MODEL/MARKETING
MODEL CHANGECHANGE
Known vs. Unknown:
Comfort vs. Discomfort Managing the
TECHNOLOGICAL CHANGE “Unknown-
Knowledge”
Semi-radical Radical
NEW
Innovation Innovation
SIMILAR
Incremental Semi-radical
Innovation Innovation
Managing the SIMILAR NEW
“Known-
Knowledge” BUS MODEL/MARKETING CHANGE
Closed vs. Open Innovation
Other firm´s
Market
Ideas Value
Generation Capturing
Product/Service Innovation
Higher
Degree of Innovation
New-to-the-world products/services
Degree of Risk
New-to-the-firm products/services
Additions to product/service lines
Product improvements/revisions
New applications for existing
products/services
Repositioning of existing products/services
Cost reduction for existing products/services
Lower
Source/Type of the Innovation
Seeing the Unseen, or Connecting the invisible
dots and optimizing the
“…the eureka moment…” value creation opportunity
Scientific Discovery Technological Innovation
New Market insight Market/Retail Innovation
New Production/Process insight Supply Chain Innovation
New Business/Financial insight Business Model Innovation
Human Capital Management
New HR Policies
Innovation
New Social/Ecological insight Social Innovation
Regulatory/Legislative Change Business/Marketing Innovation
Directions for Innovation
MARKETS
T Existing New
P S
E
R E Existing Diversified
C
O R Existing Product/ Market
H Market Space Space
D V
N
U I
O
C C Diversified Diversified
L Product Product/
T E
O New Space Market Space
S S
G
/ /
Y
The Portfolio Management Model
10%
30%
70%
Process Innovation
Higher
Innovation
Major new process
Degree of
Degree of
Risk
Minor new process
Significant revision of existing
process
Modest improvement of
existing process
Lower
Process Innovation
Where can innovation happen?
Administrative systems
Service delivery/logistical systems
Production methods
Financing methods
Marketing or sales approaches
Procurement techniques
Compensation methods
Supply chain management
And more ….
Vs.
Aligning Job Complexity to the Environment
Environment
Stable Changing
Hierarchical with
matrix sub-
Complex organizations Organic
adhering to structure
established
protocols
Task
Hierarchical with
matrix sub-
Machine organizations &
Simple bureaucracy considerable
discretion
Re-Invent Innovation
Management Differentiation
Imperative Process Imperative
Disruption
Imperative
Why Innovate?
Growth
Imperative
Re-Invent Innovation
Management Differentiation
Imperative Process Imperative
Disruption
Imperative
Innovation Management Process
Corporate Entrepreneurship – Areas of Activities
Joint External
Spin Venture Environment
External
Along Co.
Internal Suppliers
Merger venture
Contractors
Acquisition The FIRM
Spin In
Buy
Customers
Spin Out stake
Take
Apps.
Developers stake
Corporate Entrepreneurship – Possible Implementation Models
Impact on the
Business of an Innovation
Impact on the
Business of an Innovation
Impact on the
Business of an Innovation
Impact on the
Business of an Innovation
Corporate Incubator
Motorola
(1) The Four Models of CE, R.C. Wolcott and M.J. Lippitz
Four Models of Corporate Entrepreneurship
“Five Essentials” of
Innovative Enterprises
“Five Essentials” of
Innovative Enterprises
“Five Essentials” of
Innovative Enterprises
Leading Innovative Enterprises develop their own “home-
brewed” models, which share these characteristics
- Chinese Proverb
MEET U.S.
No new business is worth starting in
these times unless it can go global.
— Richard Branson, Virgin Empire
DARE
more than others think it is WISE
EXPECT
more than others think it is PRACTICAL
RISK
more than others think it is SAFE
DREAM
more than others think it is POSSIBLE
DREAM IT!
BELIEVE IN IT!
FAREWELL
Firm: www.SausalitoVentures.com