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Corporate Innovation




                  paulshawsmith
                     scientific business strategy
Who Innovates?
All Innovations?




                45%                       55%
Source: Birch (1979)
Radical Innovations?




                   5%                         95%
Source: Birch (1979)
Why?




                   5%          95%
Source: Birch (1979)
Why?
        Money




                   5%          95%
Source: Birch (1979)
Why?
        Money


        People




                   5%          95%
Source: Birch (1979)
Why?
        Money


        People


       Suppliers




                   5%          95%
Source: Birch (1979)
Why?
        Money


        People


       Suppliers


      Customers




                   5%          95%
Source: Birch (1979)
Why?
        Money


        People


       Suppliers


      Customers


     Distribution




                   5%          95%
Source: Birch (1979)
1 Planning




             paulshawsmith
                scientific business strategy
Business Plan?



                         Yes!
                                   No!



                   21%
                                             79%

                                          paulshawsmith
                                             scientific business strategy
Source: Bhide (2000)
“new ventures launched with formal written
      business plans do not outperform ones
             launched without them.”




                                                               paulshawsmith
                                                                  scientific business strategy
Source: Lange, Mollov, Pearlmutter, Singh and Bygrave (2007)
Low levels of planning




                                                         paulshawsmith
                                                            scientific business strategy
Source: Dencker, Gruber, Shah (2009)
High levels of planning




                                                          paulshawsmith
                                                             scientific business strategy
Source: Dencker, Gruber, Shah (2009)
1 Planning




             paulshawsmith
                scientific business strategy
1 Planning




             paulshawsmith
                scientific business strategy
The Corridor Principle




                     paulshawsmith
                        scientific business strategy
Did you change your original idea?


                                                             66%

                  33%
                            No!
                                            Yes!




                                                         paulshawsmith
                                                            scientific business strategy
Source: Bhide (2000)
Great Idea




                               paulshawsmith
                                  scientific business strategy
Source: Ronstadt (1988)
Better Idea




                          paulshawsmith
                             scientific business strategy
Source: Ronstadt (1988)
Better Idea




                                        paulshawsmith
                                           scientific business strategy
Source: Ronstadt (1988)
Better Ide




                          paulshawsmith
                             scientific business strategy
Source: Ronstadt (1988)
Success




                          paulshawsmith
                             scientific business strategy
Source: Ronstadt (1988)
CourseMatch




              paulshawsmith
                 scientific business strategy
CourseMatch




              paulshawsmith
                 scientific business strategy
CourseMatch




              paulshawsmith
                 scientific business strategy
CourseMatch




              paulshawsmith
                 scientific business strategy
CourseMatch




              paulshawsmith
                 scientific business strategy
AMAR BHIDE




You can’t plan an unpredictable future!




                              paulshawsmith
                                 scientific business strategy
AMAR BHIDE




 Planning    Discovering



                paulshawsmith
                   scientific business strategy
2 Begin with the End in Mind




                        paulshawsmith
                           scientific business strategy
Causal Thinking


                                            Market
                                           Research




                  Knowledge


                                              Market
                   People                      Gap
  Tasks



                  Resources




                              paulshawsmith
                                 scientific success strategy
Causal Thinking


                                            Market
                                           Research




                  Knowledge


                                              Market
                   People                      Gap
  Tasks



                  Resources




                              paulshawsmith
                                 scientific success strategy
paulshawsmith
   scientific business strategy
Casual Thinking




                    Cook Book



                                                   Outcome
                     Hire Staff
  Vision



                  Buy Ingredients




                                    paulshawsmith
                                       scientific success strategy
Market Research?

                                                         88%

                   12%
                                   Yes!
                                              No!




                                                      paulshawsmith
                                                         scientific business strategy
Source: Inc. 500 Magazine (2010)
27   Entrepreneurs




                     paulshawsmith
                        scientific business strategy
3to



40    start ups




                  paulshawsmith
                     scientific business strategy
12   to



43   yrs experience




                      paulshawsmith
                         scientific business strategy
$200        million to



$6billion




                         paulshawsmith
                            scientific business strategy
1   IPO




          paulshawsmith
             scientific business strategy
AMAR BHIDE
      "OK, I need to know which of their various groups of students,
         trainees, and individuals would be most interested so I can
               target the audience a little bit more. What other
       information...I've never done consumer marketing, so I don't
        really know. I think probably...I think mostly I'd just try to...I
      would...I wouldn't do all this, actually. I'd just go sell it. I don't
       believe in market research. Somebody once told me the only
            thing you need is a customer. Instead of asking all the
         questions, I'd try and make some sales. I'd learn a lot, you
      know: which people, what were the obstacles, what were the
          questions, which prices work better. Even before I started
       production. So my market research would actually be hands-
                              on actual selling."


Source: Sarasavathy (2007)
                                                          paulshawsmith
                                                             scientific business strategy
AMAR BHIDE
  "Ultimately, the best test of any product is to go to your target
  market and pretend like it's a real business. You'll find out soon
 enough if it is or not. You have to take some risks. You can sit and
  analyze these different markets forever and ever and ever, and
    you'd get all these wonderful answers, and they still may be
  wrong. The problem with the businessman type is they spend a
 lot of time with all their great wisdom and all their spreadsheets
  and all their Harvard Business Review people, and they'd either
 become convinced that there's no market at all or that they have
 the market nailed. And they'd go out there big time, with a lot of
  expensive advertising and upfront costs, because they're gonna
     overwhelm the market, and the business would go under."


Source: Sarasavathy (2007)
                                                     paulshawsmith
                                                        scientific business strategy
2 Begin with the End in Mind




                        paulshawsmith
                           scientific business strategy
2 Begin with the End in Mind




                        paulshawsmith
                           scientific business strategy
Effectual Thinking



                                             Outcome
               Opportunities

                                             Outcome

   Resources
                                             Outcome



    Knowledge                                Outcome




                                             Outcome
                 People


                                             Outcome




                               paulshawsmith
                                  scientific success strategy
Effectual Thinking



                                               Meal 1
                 Knowledge of
                   Cooking
                                               Meal 2

   Ingredients
     on Hand
                                               Meal 3



     Equipment
                                               Meal 4
      Available


                  People I                     Meal 5
                   Know

                                               Meal 6




                                paulshawsmith
                                   scientific success strategy
Effectual Thinking



                 Course
                 Match



    FaceMash



      Partner
      Friends


                Customer
                Students




                           paulshawsmith
                              scientific success strategy
AMAR BHIDE




 Seeking     Combing Your
Resources     Resources


                paulshawsmith
                   scientific business strategy
3 Risk Taking




                paulshawsmith
                   scientific business strategy
Managers Thinking


                     High




                RISK




                      Low

                            Low             High
                                   RETURN
Source: Saravathy (1998)                           paulshawsmith
                                                      scientific business strategy
Managers Thinking


                      High




                 RISK




                       Low

                             Low             High
                                    RETURN
Source: Saravathy (1998)
                                                    paulshawsmith
                                                       scientific business strategy
Entrepreneurs Thinking


                      High




                 RISK




                       Low

                             Low             High
                                    RETURN
                                                    paulshawsmith
                                                       scientific business strategy
Source: Saravathy (1998)
Entrepreneurs Thinking


                     High




                RISK




                      Low

                             Low             High
                                    RETURN
Source: Saravathy (1998)
                                                    paulshawsmith
                                                       scientific business strategy
3 High Returns




                 paulshawsmith
                    scientific business strategy
3 High Returns




                 paulshawsmith
                    scientific business strategy
“When we started the airline 25 years age this year. I went to Boeing. I
           AMAR BHIDE
    remember the telephone call.
    “Hello this is Richard Branson, wonder whether you could sell me a
    second hand 747?”
    “What is the name of your business?”
    “Virgin.”
    “What do you do?”
    “We have a record company and have great bands like the sex pistols the
    rolling Stones.“
    And then there was a long pause, and instead of putting the phone down.
    He said, “We will send a salesman over and as long as your airline goes
    further than your name suggests we will let you have a plane.”

    The key point there is we said to Boeing we don’t know if this is going to
    work. We realise that this is risky, and we want to be able to hand the
    plane back after 12 months if it doesn’t work out. And that is the element
    of protecting the downside and that is the critical thing.

                                                              paulshawsmith
                                                                 scientific business strategy
Source: Wall Street Journal Video, 2009-10-15
Size




                                         R50 million - ‘01



                               R30 million – ‘98

                       100 employee – ‘97




              ‘92 – Gotcha, Wrangler Agencies
               & Biotribe factory                            Time
 Source: Saravathy (1998)
Size




                                        R50 million
                                   Chinese Imports - ‘01
                                 R6 to R13 to dollar


                               R30 million – ‘98

                       100 employee – ‘97




              ‘92 – Gotcha, Wrangler Agencies
               & Biotribe factory                          Time
 Source: Saravathy (1998)
Having lost my business so suddenly, I was now setting up a
 licensing base and succeeding in spreading my risk across a
number of products, licensees and manufacturers. We have
    the brands, they have the factories. With this licensing
    model, we find the best manufacturers and negotiate a
    win/win partnership with them – I provide the product
ideas and brand knowledge and they produce products they
    are already successful at making, but under our brand.
             Together we have a thriving business.




                                              paulshawsmith
                                                 scientific business strategy
R160 million – ‘09
Size




                                        R50 million
                                   Chinese Imports - ‘01
                                 R6 to R13 to dollar


                               R30 million – ‘98              2 employees – ‘05

                       100 employee – ‘97
                                                                             ’04 – 20 Licenses




              ‘92 – Gotcha, Wrangler Agencies              ‘01 – Licensing model
               & Biotribe factory                                                                Time
 Source: Saravathy (1998)
With the benefit of hindsight, I know now that back in
   2001 the business I had built was hugely exposed to
   external risks. Today, I would not employ that many
 people. I would not make and distribute so many diverse
products from just one facility. It makes far more sense to
 outsource production to manufacturing and distribution
experts who have all the expertise and channels in place. I
  would, and do, take forward cover on any international
forex importing and exporting we do. I keep overheads to
 an absolute minimum and maintain tight control over all
             financial aspects of the business.



                                              paulshawsmith
                                                 scientific business strategy
AMAR BHIDE




Increasing      Risk
  Returns     Reducing


                paulshawsmith
                   scientific business strategy
4 Competitive analysis




                     paulshawsmith
                        scientific business strategy
AMAR BHIDE




             paulshawsmith
                scientific business strategy
AMAR BHIDE




             paulshawsmith
                scientific business strategy
paulshawsmith
   scientific business strategy
AMAR BHIDE
                              ?

  ?
             ?




                 ?
  ?

                     ?


                         paulshawsmith
                            scientific business strategy
4 Competitive analysis




                     paulshawsmith
                        scientific business strategy
4 Competitive analysis




                     paulshawsmith
                        scientific business strategy
AMAR BHIDE




     Crazy Quilt Principle:
Build a network of self-selected
           stakeholders




                          paulshawsmith
                             scientific business strategy
AMAR BHIDE




             paulshawsmith
                scientific business strategy
Larry &
  Sergey
(PageRank)
Urs
(New
code)


   Larry &
   Sergey
 (PageRank)
John Doerr
            (OKR)

 Urs
(New
code)


   Larry &
   Sergey
 (PageRank)
John Doerr
            (OKR)

 Urs
(New                     Jim Reese
code)                  (Tight server
                           farm)
   Larry &
   Sergey
 (PageRank)
John Doerr
            (OKR)

 Urs
(New                        Jim Reese
code)                     (Tight server
                              farm)
   Larry &
   Sergey                      Yahoo
 (PageRank)            (Billion page index)
crawler)
                                     (Faster
          John Doerr                 Yahoo
            (OKR)

 Urs
(New                        Jim Reese
code)                     (Tight server
                              farm)
   Larry &
   Sergey                      Yahoo
 (PageRank)            (Billion page index)
crawler)
                                     (Faster
          John Doerr                 Yahoo
            (OKR)

 Urs
(New                        Jim Reese
code)                     (Tight server
                              farm)
   Larry &                                     Overture
   Sergey                      Yahoo           (Auction
 (PageRank)            (Billion page index)    adverts)
crawler)
                                     (Faster
          John Doerr                 Yahoo
            (OKR)

 Urs
(New                        Jim Reese
code)                     (Tight server
                              farm)
   Larry &                                     Overture
   Sergey                      Yahoo           (Auction
 (PageRank)            (Billion page index)    adverts)
The Crazy Quilt              Result 1



                             Result 2


                  Person 1   Result 3




                             Result 4


                  Person 2   Result 5



                             Result 6




                  Person 3   Result 7



                             Result 8



                             Result 9
5 Avoid Surprises




                    paulshawsmith
                       scientific business strategy
AMAR BHIDE




What is the main reason to plan?




                          paulshawsmith
                             scientific business strategy
AMAR BHIDE




        Missing budget




                         paulshawsmith
                            scientific business strategy
AMAR BHIDE




       Missing budget
      Overrunning costs




                          paulshawsmith
                             scientific business strategy
AMAR BHIDE




      Missing budget
     Overrunning costs
    Unplanned expenses




                         paulshawsmith
                            scientific business strategy
AMAR BHIDE




      Missing budget
     Overrunning costs
    Unplanned expenses
    Unforeseen mistakes




                          paulshawsmith
                             scientific business strategy
AMAR BHIDE




      Missing budget
     Overrunning costs
    Unplanned expenses
    Unforeseen mistakes




                          paulshawsmith
                             scientific business strategy
5 Avoid Surprises




                    paulshawsmith
                       scientific business strategy
5 Avoid Surprises




                    paulshawsmith
                       scientific business strategy
Percy
Spencer BHIDE
    AMAR
AMAR BHIDE




             paulshawsmith
                scientific business strategy
AMAR BHIDE




             paulshawsmith
                scientific business strategy
AMAR BHIDE




             paulshawsmith
                scientific business strategy
AMAR BHIDE
AMAR BHIDE




             paulshawsmith
                scientific business strategy
AMAR BHIDE




             paulshawsmith
                scientific business strategy
6 Trends




           paulshawsmith
              scientific business strategy
AMAR BHIDE




The extent we can predict the future,
         We can control it.




                             paulshawsmith
                                scientific business strategy
6 Trends




           paulshawsmith
              scientific business strategy
6 Trends




           paulshawsmith
              scientific business strategy
AMAR BHIDE




The extent we control the future,
 there is no need to predict it.




                           paulshawsmith
                              scientific business strategy
AMAR BHIDE
What can corporate managers
  learn from entrepreneurs?




                      paulshawsmith
                         scientific business strategy
Plan for                  Discover
Innovation        Why?    Innovations




             5%          95%
Plan for                   Discover
Innovation         Why?    Innovations

Plan & Seek                Combine
 Resources                 Resources




              5%          95%
Plan for                   Discover
Innovation         Why?    Innovations

Plan & Seek                Combine
 Resources                 Resources

  Seek                       Risk
 Returns                   Reduction




              5%          95%
Plan for                   Discover
Innovation         Why?    Innovations

Plan & Seek                Combine
 Resources                 Resources

  Seek                       Risk
 Returns                   Reduction

Competitive
                           Crazy Quilt
  Analysis




              5%          95%
Plan for                   Discover
Innovation         Why?    Innovations

Plan & Seek                Combine
 Resources                 Resources

  Seek                       Risk
 Returns                   Reduction

Competitive
                           Crazy Quilt
  Analysis

  Avoid                     Embrace
 Surprises                  Surprises




              5%          95%
Plan for                   Discover
Innovation         Why?    Innovations

Plan & Seek                Combine
 Resources                 Resources

  Seek                       Risk
 Returns                   Reduction

Competitive
                           Crazy Quilt
  Analysis

  Avoid                     Embrace
 Surprises                  Surprises


  Trends                    Creating




              5%          95%
Why Innovation and
Entrepreneurship?




                     paulshawsmith
                        scientific business strategy
paulshawsmith
   scientific business strategy
MIT




paulshawsmith
   scientific business strategy
25,000 Firms




    paulshawsmith
       scientific business strategy
$1.8 trillion




      paulshawsmith
         scientific business strategy
11th Biggest GDP




       paulshawsmith
          scientific business strategy
Steven Covey




     paulshawsmith
        scientific business strategy
paulshawsmith
   scientific business strategy
JOE JACOBSON




               paulshawsmith
                  scientific business strategy
paulshawsmith
   scientific business strategy
100   Million Trees




                 paulshawsmith
                    scientific business strategy
JOE JACOBSON




               paulshawsmith
                  scientific business strategy
HAGEN STEHR




              paulshawsmith
                 scientific business strategy
paulshawsmith
   scientific business strategy
paulshawsmith
   scientific business strategy

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Corporate Innovation

  • 1. Corporate Innovation paulshawsmith scientific business strategy
  • 3. All Innovations? 45% 55% Source: Birch (1979)
  • 4. Radical Innovations? 5% 95% Source: Birch (1979)
  • 5. Why? 5% 95% Source: Birch (1979)
  • 6. Why? Money 5% 95% Source: Birch (1979)
  • 7. Why? Money People 5% 95% Source: Birch (1979)
  • 8. Why? Money People Suppliers 5% 95% Source: Birch (1979)
  • 9. Why? Money People Suppliers Customers 5% 95% Source: Birch (1979)
  • 10. Why? Money People Suppliers Customers Distribution 5% 95% Source: Birch (1979)
  • 11. 1 Planning paulshawsmith scientific business strategy
  • 12. Business Plan? Yes! No! 21% 79% paulshawsmith scientific business strategy Source: Bhide (2000)
  • 13. “new ventures launched with formal written business plans do not outperform ones launched without them.” paulshawsmith scientific business strategy Source: Lange, Mollov, Pearlmutter, Singh and Bygrave (2007)
  • 14. Low levels of planning paulshawsmith scientific business strategy Source: Dencker, Gruber, Shah (2009)
  • 15. High levels of planning paulshawsmith scientific business strategy Source: Dencker, Gruber, Shah (2009)
  • 16. 1 Planning paulshawsmith scientific business strategy
  • 17. 1 Planning paulshawsmith scientific business strategy
  • 18. The Corridor Principle paulshawsmith scientific business strategy
  • 19. Did you change your original idea? 66% 33% No! Yes! paulshawsmith scientific business strategy Source: Bhide (2000)
  • 20. Great Idea paulshawsmith scientific business strategy Source: Ronstadt (1988)
  • 21. Better Idea paulshawsmith scientific business strategy Source: Ronstadt (1988)
  • 22. Better Idea paulshawsmith scientific business strategy Source: Ronstadt (1988)
  • 23. Better Ide paulshawsmith scientific business strategy Source: Ronstadt (1988)
  • 24. Success paulshawsmith scientific business strategy Source: Ronstadt (1988)
  • 25. CourseMatch paulshawsmith scientific business strategy
  • 26. CourseMatch paulshawsmith scientific business strategy
  • 27. CourseMatch paulshawsmith scientific business strategy
  • 28. CourseMatch paulshawsmith scientific business strategy
  • 29. CourseMatch paulshawsmith scientific business strategy
  • 30. AMAR BHIDE You can’t plan an unpredictable future! paulshawsmith scientific business strategy
  • 31. AMAR BHIDE Planning Discovering paulshawsmith scientific business strategy
  • 32. 2 Begin with the End in Mind paulshawsmith scientific business strategy
  • 33. Causal Thinking Market Research Knowledge Market People Gap Tasks Resources paulshawsmith scientific success strategy
  • 34. Causal Thinking Market Research Knowledge Market People Gap Tasks Resources paulshawsmith scientific success strategy
  • 35. paulshawsmith scientific business strategy
  • 36. Casual Thinking Cook Book Outcome Hire Staff Vision Buy Ingredients paulshawsmith scientific success strategy
  • 37. Market Research? 88% 12% Yes! No! paulshawsmith scientific business strategy Source: Inc. 500 Magazine (2010)
  • 38. 27 Entrepreneurs paulshawsmith scientific business strategy
  • 39. 3to 40 start ups paulshawsmith scientific business strategy
  • 40. 12 to 43 yrs experience paulshawsmith scientific business strategy
  • 41. $200 million to $6billion paulshawsmith scientific business strategy
  • 42. 1 IPO paulshawsmith scientific business strategy
  • 43. AMAR BHIDE "OK, I need to know which of their various groups of students, trainees, and individuals would be most interested so I can target the audience a little bit more. What other information...I've never done consumer marketing, so I don't really know. I think probably...I think mostly I'd just try to...I would...I wouldn't do all this, actually. I'd just go sell it. I don't believe in market research. Somebody once told me the only thing you need is a customer. Instead of asking all the questions, I'd try and make some sales. I'd learn a lot, you know: which people, what were the obstacles, what were the questions, which prices work better. Even before I started production. So my market research would actually be hands- on actual selling." Source: Sarasavathy (2007) paulshawsmith scientific business strategy
  • 44. AMAR BHIDE "Ultimately, the best test of any product is to go to your target market and pretend like it's a real business. You'll find out soon enough if it is or not. You have to take some risks. You can sit and analyze these different markets forever and ever and ever, and you'd get all these wonderful answers, and they still may be wrong. The problem with the businessman type is they spend a lot of time with all their great wisdom and all their spreadsheets and all their Harvard Business Review people, and they'd either become convinced that there's no market at all or that they have the market nailed. And they'd go out there big time, with a lot of expensive advertising and upfront costs, because they're gonna overwhelm the market, and the business would go under." Source: Sarasavathy (2007) paulshawsmith scientific business strategy
  • 45. 2 Begin with the End in Mind paulshawsmith scientific business strategy
  • 46. 2 Begin with the End in Mind paulshawsmith scientific business strategy
  • 47. Effectual Thinking Outcome Opportunities Outcome Resources Outcome Knowledge Outcome Outcome People Outcome paulshawsmith scientific success strategy
  • 48. Effectual Thinking Meal 1 Knowledge of Cooking Meal 2 Ingredients on Hand Meal 3 Equipment Meal 4 Available People I Meal 5 Know Meal 6 paulshawsmith scientific success strategy
  • 49. Effectual Thinking Course Match FaceMash Partner Friends Customer Students paulshawsmith scientific success strategy
  • 50. AMAR BHIDE Seeking Combing Your Resources Resources paulshawsmith scientific business strategy
  • 51. 3 Risk Taking paulshawsmith scientific business strategy
  • 52. Managers Thinking High RISK Low Low High RETURN Source: Saravathy (1998) paulshawsmith scientific business strategy
  • 53. Managers Thinking High RISK Low Low High RETURN Source: Saravathy (1998) paulshawsmith scientific business strategy
  • 54. Entrepreneurs Thinking High RISK Low Low High RETURN paulshawsmith scientific business strategy Source: Saravathy (1998)
  • 55. Entrepreneurs Thinking High RISK Low Low High RETURN Source: Saravathy (1998) paulshawsmith scientific business strategy
  • 56. 3 High Returns paulshawsmith scientific business strategy
  • 57. 3 High Returns paulshawsmith scientific business strategy
  • 58. “When we started the airline 25 years age this year. I went to Boeing. I AMAR BHIDE remember the telephone call. “Hello this is Richard Branson, wonder whether you could sell me a second hand 747?” “What is the name of your business?” “Virgin.” “What do you do?” “We have a record company and have great bands like the sex pistols the rolling Stones.“ And then there was a long pause, and instead of putting the phone down. He said, “We will send a salesman over and as long as your airline goes further than your name suggests we will let you have a plane.” The key point there is we said to Boeing we don’t know if this is going to work. We realise that this is risky, and we want to be able to hand the plane back after 12 months if it doesn’t work out. And that is the element of protecting the downside and that is the critical thing. paulshawsmith scientific business strategy Source: Wall Street Journal Video, 2009-10-15
  • 59. Size R50 million - ‘01 R30 million – ‘98 100 employee – ‘97 ‘92 – Gotcha, Wrangler Agencies & Biotribe factory Time Source: Saravathy (1998)
  • 60. Size R50 million Chinese Imports - ‘01 R6 to R13 to dollar R30 million – ‘98 100 employee – ‘97 ‘92 – Gotcha, Wrangler Agencies & Biotribe factory Time Source: Saravathy (1998)
  • 61. Having lost my business so suddenly, I was now setting up a licensing base and succeeding in spreading my risk across a number of products, licensees and manufacturers. We have the brands, they have the factories. With this licensing model, we find the best manufacturers and negotiate a win/win partnership with them – I provide the product ideas and brand knowledge and they produce products they are already successful at making, but under our brand. Together we have a thriving business. paulshawsmith scientific business strategy
  • 62. R160 million – ‘09 Size R50 million Chinese Imports - ‘01 R6 to R13 to dollar R30 million – ‘98 2 employees – ‘05 100 employee – ‘97 ’04 – 20 Licenses ‘92 – Gotcha, Wrangler Agencies ‘01 – Licensing model & Biotribe factory Time Source: Saravathy (1998)
  • 63. With the benefit of hindsight, I know now that back in 2001 the business I had built was hugely exposed to external risks. Today, I would not employ that many people. I would not make and distribute so many diverse products from just one facility. It makes far more sense to outsource production to manufacturing and distribution experts who have all the expertise and channels in place. I would, and do, take forward cover on any international forex importing and exporting we do. I keep overheads to an absolute minimum and maintain tight control over all financial aspects of the business. paulshawsmith scientific business strategy
  • 64. AMAR BHIDE Increasing Risk Returns Reducing paulshawsmith scientific business strategy
  • 65. 4 Competitive analysis paulshawsmith scientific business strategy
  • 66. AMAR BHIDE paulshawsmith scientific business strategy
  • 67. AMAR BHIDE paulshawsmith scientific business strategy
  • 68. paulshawsmith scientific business strategy
  • 69. AMAR BHIDE ? ? ? ? ? ? paulshawsmith scientific business strategy
  • 70. 4 Competitive analysis paulshawsmith scientific business strategy
  • 71. 4 Competitive analysis paulshawsmith scientific business strategy
  • 72. AMAR BHIDE Crazy Quilt Principle: Build a network of self-selected stakeholders paulshawsmith scientific business strategy
  • 73.
  • 74. AMAR BHIDE paulshawsmith scientific business strategy
  • 75. Larry & Sergey (PageRank)
  • 76. Urs (New code) Larry & Sergey (PageRank)
  • 77. John Doerr (OKR) Urs (New code) Larry & Sergey (PageRank)
  • 78. John Doerr (OKR) Urs (New Jim Reese code) (Tight server farm) Larry & Sergey (PageRank)
  • 79. John Doerr (OKR) Urs (New Jim Reese code) (Tight server farm) Larry & Sergey Yahoo (PageRank) (Billion page index)
  • 80. crawler) (Faster John Doerr Yahoo (OKR) Urs (New Jim Reese code) (Tight server farm) Larry & Sergey Yahoo (PageRank) (Billion page index)
  • 81. crawler) (Faster John Doerr Yahoo (OKR) Urs (New Jim Reese code) (Tight server farm) Larry & Overture Sergey Yahoo (Auction (PageRank) (Billion page index) adverts)
  • 82. crawler) (Faster John Doerr Yahoo (OKR) Urs (New Jim Reese code) (Tight server farm) Larry & Overture Sergey Yahoo (Auction (PageRank) (Billion page index) adverts)
  • 83. The Crazy Quilt Result 1 Result 2 Person 1 Result 3 Result 4 Person 2 Result 5 Result 6 Person 3 Result 7 Result 8 Result 9
  • 84. 5 Avoid Surprises paulshawsmith scientific business strategy
  • 85. AMAR BHIDE What is the main reason to plan? paulshawsmith scientific business strategy
  • 86. AMAR BHIDE Missing budget paulshawsmith scientific business strategy
  • 87. AMAR BHIDE Missing budget Overrunning costs paulshawsmith scientific business strategy
  • 88. AMAR BHIDE Missing budget Overrunning costs Unplanned expenses paulshawsmith scientific business strategy
  • 89. AMAR BHIDE Missing budget Overrunning costs Unplanned expenses Unforeseen mistakes paulshawsmith scientific business strategy
  • 90. AMAR BHIDE Missing budget Overrunning costs Unplanned expenses Unforeseen mistakes paulshawsmith scientific business strategy
  • 91. 5 Avoid Surprises paulshawsmith scientific business strategy
  • 92. 5 Avoid Surprises paulshawsmith scientific business strategy
  • 94. AMAR BHIDE paulshawsmith scientific business strategy
  • 95. AMAR BHIDE paulshawsmith scientific business strategy
  • 96. AMAR BHIDE paulshawsmith scientific business strategy
  • 98. AMAR BHIDE paulshawsmith scientific business strategy
  • 99. AMAR BHIDE paulshawsmith scientific business strategy
  • 100. 6 Trends paulshawsmith scientific business strategy
  • 101. AMAR BHIDE The extent we can predict the future, We can control it. paulshawsmith scientific business strategy
  • 102. 6 Trends paulshawsmith scientific business strategy
  • 103. 6 Trends paulshawsmith scientific business strategy
  • 104. AMAR BHIDE The extent we control the future, there is no need to predict it. paulshawsmith scientific business strategy
  • 106. What can corporate managers learn from entrepreneurs? paulshawsmith scientific business strategy
  • 107. Plan for Discover Innovation Why? Innovations 5% 95%
  • 108. Plan for Discover Innovation Why? Innovations Plan & Seek Combine Resources Resources 5% 95%
  • 109. Plan for Discover Innovation Why? Innovations Plan & Seek Combine Resources Resources Seek Risk Returns Reduction 5% 95%
  • 110. Plan for Discover Innovation Why? Innovations Plan & Seek Combine Resources Resources Seek Risk Returns Reduction Competitive Crazy Quilt Analysis 5% 95%
  • 111. Plan for Discover Innovation Why? Innovations Plan & Seek Combine Resources Resources Seek Risk Returns Reduction Competitive Crazy Quilt Analysis Avoid Embrace Surprises Surprises 5% 95%
  • 112. Plan for Discover Innovation Why? Innovations Plan & Seek Combine Resources Resources Seek Risk Returns Reduction Competitive Crazy Quilt Analysis Avoid Embrace Surprises Surprises Trends Creating 5% 95%
  • 113. Why Innovation and Entrepreneurship? paulshawsmith scientific business strategy
  • 114. paulshawsmith scientific business strategy
  • 115. MIT paulshawsmith scientific business strategy
  • 116. 25,000 Firms paulshawsmith scientific business strategy
  • 117. $1.8 trillion paulshawsmith scientific business strategy
  • 118. 11th Biggest GDP paulshawsmith scientific business strategy
  • 119. Steven Covey paulshawsmith scientific business strategy
  • 120. paulshawsmith scientific business strategy
  • 121. JOE JACOBSON paulshawsmith scientific business strategy
  • 122. paulshawsmith scientific business strategy
  • 123. 100 Million Trees paulshawsmith scientific business strategy
  • 124. JOE JACOBSON paulshawsmith scientific business strategy
  • 125. HAGEN STEHR paulshawsmith scientific business strategy
  • 126. paulshawsmith scientific business strategy
  • 127. paulshawsmith scientific business strategy