Introduction to The Growth and Innovation Group (GIG).

1. The Growth and Innovation Group Discover, Shape and Launch New Growth Platforms

7. The track record is not impressive…….. Copyright Hatfield Group LLC WinOvations Inc. Reference: G. Stevens and J. Burley, “3000 Raw Ideas = 1 Commercial Success!” Research • Technology Management, 40(3): 16-27, May-June, 1997.

11. Time Start-up Growth Maturity and Decline Growth and Renewal Cash Flow Higher Risk Hard To Identify, implement: New Business Development Lower risk Easier to identify Opportunities: Line Extensions Renewal

12. New Business Development has significant uncertainties, however they fall into predictable categories. Mark P. Rice F. W. Olin Graduate School of Business Babson College Olin Hall 242A Babson Park MA 02457 Gina Colarelli O’Connor* Rensselaer Polytechnic Institute Lally School of Management and Technology Pittsburgh Building #2214 110 Eighth Street Troy NY 12180 Richard Leifer Rensselaer Polytechnic Institute Lally School of Management and Technology Pittsburgh Building #2110 110 Eighth Street Troy NY 12180 A COMPREHENSIVE MODEL OF UNCERTAINTY ASSOCIATED WITH RADICAL INNOVATION

18. These Principles and tools are captured in three processes that Discover, Shape, and Launch New Business Platforms Process Input Output Business Platform Discovery Broad and incomplete concepts of potential advantaged offerings, industries where they can be applied, business models that could be used Partially validated and highly robust Business Platforms due to multiple iterations with market opinion leaders and a broad range of capability experts Business Platform Shaping Partially validated and highly robust Business Platforms due to multiple iterations with market opinion leaders and a broad range of capability experts Validated Business Platforms across 11 hypotheses through multiple market interviews across the value chain and design experiments across critical offering and manufacturing hypotheses Business Platform Launch Validated Business Platforms across 11 hypotheses through multiple market interviews across the value chain and design experiments across critical offering and manufacturing hypotheses Initiated Business Platforms with key internal capabilities, critical partnerships, early stage customers, initial offerings, and development agreements in place.

24. GIG utilizes S-Curves as a tool to identify and describe Discontinuities across value chains

25. The high level flow of how GIG consistently discovers robust new Business Platforms: Search for market discontinuities where advantaged offerings can potentially fit…….. Underneath the Discontinuities lie multiple openings and needs. Flexibly shape advantaged offerings to meet openings and needs and create projects…. Projects are then linked for synergistic development into Business and Offering Platforms for Validation and Implementation

29. These Principles and tools are captured in three processes that Discover, Shape, and Launch New Business Platforms Process Input Output Business Platform Discovery Broad and incomplete concepts of potential advantaged offerings, industries where they can be applied, business models that could be used Partially validated and highly robust Business Platforms due to multiple iterations with market opinion leaders and a broad range of capability experts Business Platform Shaping Partially validated and highly robust Business Platforms due to multiple iterations with market opinion leaders and a broad range of capability experts Validated Business Platforms across 11 hypotheses through multiple market interviews across the value chain and design experiments across critical offering and manufacturing hypotheses Business Platform Launch Validated Business Platforms across 11 hypotheses through multiple market interviews across the value chain and design experiments across critical offering and manufacturing hypotheses Initiated Business Platforms with key internal capabilities, critical partnerships, early stage customers, initial offerings, and development agreements in place.

30. Yet the literature tells us more is needed beyond Process to succeed……. “ Emphasis must shift: from ideas to execution and from leadership excellence to organizational excellence.” Building Breakthrough Businesses Within Established Organizations, by and Vijay Govindarajan and Chris Trimble Harvard Business Review May 2005

31. GIG: A Holistic Approach to New Business Development Four Elements for Effective Organizational Design Integrated at three levels of the Organization

33. Portfolio View: Risk vs Return Model Portfolio Size = NPV in MMUSD $7.4 MM $42.8 MM $5.4 MM $24.4 MM $6.5 MM $21.4 MM $3.7 MM - 5.0 10.0 15.0 20.0 - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Value Risk NPV/Current Burn Platform 1 Platform 6 Platform 7 Platform 2 Platform 4 Platform 3 Platform 5