Presentation from the Open Innovation conference in Austin, TX

1. LEAN INNOVATION
Philip Wheat
Chaotic Moon Labs
Phil@ChaoticMoon.com
@pwheat

2. Do I want to stay for this presentation?
Bullet Points
• “Manhattan project” R&D is a thing of the past.
• There’s plenty of “R” around.
• There’s not nearly enough “D”
• There’s almost no “E”
• Business abhors R and doesn’t want to pay for D
• If you want to be a business – don’t think you’ll change
this – there are great reasons for it.

3. Traditional view
of Research
This is what most people
think of when they think
R&D.

4. The most
productive
Research
environment ever
Surprised? Let’s run
down the items you
have with you that came
from this room.

5. That location
today
Research has been
taken over by
Universities. Both
because of economics
and volume of students
needing to do research
for degrees.

6. Development is Needed
• A large part of the problem with the patent system today is
that it’s easy to patent something and difficult to bring it to
market.
• It’s easier to patent an idea than it is to get it presented in
a peer reviewed journal.
• Execution is almost always an afterthought in research.

7. Lean Innovation
• Lean innovation is a Marketing Term
• “Lean” is a buzzword for doing just what you need.
• “Innovation” is a buzzword for doing something new.
• “Lean Innovation” is doing just what you need to do
something new.

8. “You Ain’t Gonna Need It”
• YAGNI is a catchphrase in Agile development.
• It’s based on the concept of “If you’re building it for an
unspecified future, then you are likely to be wasting your
time.”
• This is NOT about ignoring needs you have NOW.
• Lean Innovation is about finding a way over, around, or
through the NEXT hurdle in your business.

9. Board of
Awesomeness
Built in 2 weeks – used
off the shelf hardware
and software.

10. Smarter Cart
Was filmed by Discovery
Channel on week 2 of
development.
3 off the shelf systems
integrated in a
completely new way.

11. Board of
Imagination
Based on Board of
Awesomeness
Built in less than 5 days
Used off the shelf
hardware with custom
software

12. These are just three examples
• The raw material is happening faster than we can
assimilate
• Raw material is just that – raw material. Unless
something is done with it, the value is minimal.
• Those who can transform basic research into products
create HUGE amounts of wealth.
• Transforming basic research into products is hard (or so
we’ve been told.)

13. KEY POINTS

14. Don’t bite off more than one feature
The industry is full of “game changers” that changed too
many games and failed to change any of them.
Focus on one point. Too small for the market? Tivo
changed the market with a 15 second skip forward feature.
Tivo also got sued for that feature.
Focus on your core and limit your exposure.

15. But be relevant
• Delivering pet food on time wasn’t enough for a business
model.
• Providing the ability to vote on dancing celebrities was.
• Knowing what catches the public eye is key in the
consumer startup world.

16. Startup maturity
• First time startups: Sign all these NDA’s
• Second time startups: Sign these NDA’s around…
• Veteran startups: Here’s what we’re doing – no, tell
everyone. We’re moving faster than you can.

17. The next markets
• (I’m biased – I focus on capabilities)
• Perceptive computing – using all these sensors for more
than Orwellian objectives.
• Pervasive computing – my data where I want it and just
for me (not everyone.)
• Predictive computing – make computing devices more
responsive by being prepared for your choices.

18. The next markets
• (Bob Metcalfe is biased - and he’s created new industries)
• Energy – Watts/person is a basic metric of societal
advancement.
• Education – the more educated the populace is, the more
efficient and informed society is.
• Communications – the better the communications in
society the better the previous two bullet points are
achieved.

19. LEAN INNOVATION
Philip Wheat
Chaotic Moon Labs
Phil@ChaoticMoon.com
@pwheat