Matin Ebrahimchel - How to Successfully Ramp Up an Incubator Within Corporates

1. LAB1886
CEO – MATIN EBRAHIMCHEL
JULY , 23RD 2018
CASCAIS - PORTUGAL
INNOVATION LABS IN CORPORATES
- HOW TO SET UP A SUCCESSFUL INCUBATOR -

2. REINVENTING
THE GARAGE.
THE MENU FOR TODAY:

3. MATIN IS THE CEO OF LAB1886 GMBH AND HIS HEART IS GREEN-WHITE

4. MATIN IS THE CEO OF LAB1886 GMBH AND HIS HEART IS GREEN-WHITE
LAB1886 IS THE INCUBATOR OF DAIMLER AG AS AN OWN LEGAL ENTITY 4
• MERCEDES BENZ CARS
• DAIMLER TRUCKS
• MERCEDES BENZ VANS
• DAIMLER BUSES
• FINANCIAL SERVICES

5. MATIN IS THE CEO OF LAB1886 GMBH AND HIS HEART IS GREEN-WHITE
LAB1886 IS THE INCUBATOR OF DAIMLER AG AS AN OWN LEGAL ENTITY 4
• MERCEDES BENZ CARS
• DAIMLER TRUCKS
• MERCEDES BENZ VANS
• DAIMLER BUSES
• FINANCIAL SERVICES
WITH AROUND 290.000 EMPLOYEES AND 165 BN REVENUE IN 2017

6. MATIN IS THE CEO OF LAB1886 GMBH AND HIS HEART IS GREEN-WHITE
LAB1886 IS THE INCUBATOR OF DAIMLER AG AS AN OWN LEGAL ENTITY 4
• MERCEDES BENZ CARS
• DAIMLER TRUCKS
• MERCEDES BENZ VANS
• DAIMLER BUSES
• FINANCIAL SERVICES
WITH AROUND 290.000 EMPLOYEES AND 165 BN REVENUE IN 2017
AT LAB1886 WE ENABLE OUR DAIMLER PARTNERS TO EXECUTE DIGITAL
PRODUCTS. OUR GOAL IS TO RAPIDLY IDEATE, INCUBATE AND CREATE
MEANINGFUL DIGITAL SOLUTIONS.

7. BUT WHAT DOES AN INCUBATOR ACTUALLY NEED TO BE
SUCCESSFUL WITHIN A CORPORATE?

8. LET´S GO!!!

9. PARADIGM SHIFT: THE MOST VALUABLE COMPANIES BY
MARKET CAP ARE IN DIGITAL TECH
9
Tech
Other
$406B
2001
$365B $272B $261B $260B
2011
$406B $376B $277B $237B $228B
2017
$754B $579B
$509B $411B$423B$423B

10. 10
SPEED OF
DISRUPTIONIS HIGHER THAN EVER BEFORE.

11. BILL GATES
“IF GM HAD KEPT UP WITH
TECHNOLOGY LIKE THE
COMPUTER INDUSTRY HAS,
WE WOULD ALL BE DRIVING
$25 CARS THAT GOT 1,000
MILES TO THE GALLON.”
11

12. HUGE CORPORATIONS
CANNOT COMPETE WITH
THE SPEED OF DIGITAL
PLAYERS.

13. IN THE NEW
WORLD, IT IS
NOT THE BIG
FISH WHICH
EATS THE
SMALL FISH,
IT´S THE FAST
FISH THAT
EATS THE
SLOW FISH.

14. 14
WE ARE THE INDUSTRIAL
INCUBATOR DESIGNED TO
DELIVER DAIMLER DIGITAL
INNOVATIONS
AT LIGHTNING SPEED.

15. ENTERING THE INNOVATION
FACTORY
OUR CORE BELIEF
We help DAG to become
THE mobility provider of
the future by building
game-changing products
and ventures
Ideate, validate, build,
launch, and scale next-
generation mobility
businesses
OUR PROCESSWHAT WE DO
We believe in user-centered
design, team co-creation,
speed & agility and our team
of experts

16. 16
We build a safe
biosphere to attract
top experts with
an entrepreneurial
mindset.
EXPERTS
Highly motivated
talents with
extraordinary
tech skills.
NETWORK
Privileged access
to a network of strategic
partners.
CULTURE
Entrepreneurs as role models
and a culture where failing is
part of the learning process.
CAPITAL
Access to financing,
low risk and
high stability.
BRAND
Joint infrastructure and
strong support to empower
the pioneering spirit.
INNOVATION
ECOSYSTEM

17. 17
WITH
A GLOBAL
SET-UP.
Located at hotspots all
over the world, Lab1886
is best positioned to get
things moving: ideating,
evaluating and creating
digitally driven solutions
is our driving force.
Lab1886 USA
Atanta
Lab1886 China
Beijing
Lab1886 Europe
Stuttgart & Berlin and
who knows: Lisbon?

18. BY 2035, NEW MOBILITY TECH WILL DRIVE 40% OF AUTO
INDUSTRY PROFITS
VERTICALGROWTH
(PLAYANEWGAME)
CURRENT REVENUE NEW REVENUE HORIZONTAL GROWTH
(PLAY THE SAME GAME BETTER)
NEW BUSINESS
RE-ENGINEER
DIGITAL ATTACK
RE-IMAGINE
CREATE PROFITABLE
VERTICAL GROWTH
VENTURES
UNLOCK PROFITABLE
HORIZONTAL GROWTH
OPPORTUNITIES

19. BY 2035, NEW MOBILITY TECH WILL DRIVE 40% OF AUTO
INDUSTRY PROFITS
VERTICALGROWTH
(PLAYANEWGAME)
CURRENT REVENUE NEW REVENUE HORIZONTAL GROWTH
(PLAY THE SAME GAME BETTER)
NEW BUSINESS
RE-ENGINEER
DIGITAL ATTACK
RE-IMAGINE
CREATE PROFITABLE
VERTICAL GROWTH
VENTURES
UNLOCK PROFITABLE
HORIZONTAL GROWTH
OPPORTUNITIES

20. 20
BEST OF BOTH WORLDS
DAIMLER ASSETS ENTREPRENEURIAL APPROACH
CUSTOMER ACCESS
BRAND & REPUTATION
INTELLECTUAL PROPERTY
CASH RESERVES
DISRUPTOR MINDSET
AGILE TEAMS
SPEED & FLEXIBILITY
FAIL FAST CULTURE
MARKET KNOWLEDGE
CASH CONSCIOUSNESS
+

22. 22
OUR PROCESS

23. 23
BORN
FROM
IDEAS
STAGE GATES
INCUBATION
START-UPS / M&A
Innovation sprints
Existing BU idea pipeline
Crowd sourcing & funding
(ideas from employees)
Outside innovations /
startup screening
Re-integrate into BU
Scale in separate legal entity
Scale further within
Incubator structure
BUY OR BUILD
Exit
SHARK TANK
(PORTFOLIO FILTER)
CONCEPT COMMERCIALIZATION

24. 24
Desirability
Market Friction
Customer Latent Needs
Viability
Competitive Differentiation
Addressable Market
Clear Monetization
Feasibility
Technical
Regulatory
Partnerships
Strategic Fit
Alignment with DAG
strategy
Strategic use of DAG
assets
Shark Tank
WE FILTER IDEAS THROUGH 5 LENSES

25. HOW WE DEVELOP A BUSINESS
CONCEPT (7-12 weeks) INCUBATION (6-10 months) COMMERCIALISATION
DISCOVERY
12 weeks
Extensive research
and ideation with
LAB 1886. Includes
Validation
Outcome:
Market research
User research
+ Validation outcomes
VALIDATION
7 weeks
Existing Idea:
shortened research
and ideation phase
Outcome:
Concept development
Business case
MVP DEF.
7 weeks
Outcome:
Validated concept
Incubation budget
Tech specs
BETA
3 months
Outcome:
MVP launch
Feature Backlog
.
SCALE & GROWTH
Operational Business
Product live (Hardcoded)
Founded company
Venture team
Operations
Validated go- to market strategy
ALPHA
3 months
Outcome:
Validated MVP
Product market fit

26. 26
AN ECOSYSTEM OF INNOVATIVE MINDS
CONCEPT INCUBATION COMMERCIALISATION
VENTURE
ARCHITECTS
Develop strategic context,
identify market needs and
manage ecosystems.
STRATEGIC
DESIGNERS
Usage behaviour research
and industrial design.
UI/UX
DESIGNERS
Design key user
experiences and
interfaces.
PRODUCT
MANAGERS
Overall responsibility
for product delivery.
ENGINEERS
Front-end and back-end
engineers responsible
for implementation.
VEHICLE
CONCEPT
ENGINEERS
Car experts responsible
for handling hardware
implications.

27. 27
THE LAB1886 PRODUCT / MARKET FIT TESTING APPROACH
LEAN PROTOTYPING PRODUCT DEVELOPMENTMULTIVARIATE TESTING
Development of project specific
landing pages, prototypes,
questionnaires based on LAB 1886
toolkit
Product development and feature
prioritization based on quantitative and
qualitative user feedback minimizes
risk of failure and enables high-speed
development
Iteratively test real-world user
behavior and customer willingness
to pay on different landing pages,
prototypes
Until fully working
landing goes life
Few days
Quantitatively verified
product offering
3-4 weeks
5.2%3.2% 2.4%
CONVERSION CONVERSIONCONVERSION

29. BACK TO
THE GARAGE.

30. THE HANGAR
AN INNOVATION CAMPUS,
WHERE PEOPLE COME TOGETHER TO
CREATE, LEARN AND IDEATE.
A SPACE
AS FLEXIBLE AS THE TEAMS
WORKING IN IT.
A HOTHOUSE
FOR „THE NEW”.
A HOME
FOR THE PROJECTS AND START-UPS
TO WORK IN A PERFECT, CREATIVE
ENVIRONMENT.

31. LAB1886 WORKING SPACE
HANGAR 9, STUTTGART

32. LAB1886 – MOBILE INCUBATOR
BUSINESS BUILDER ON WHEELS

33. KEY
SUCCESS
FACTORS

34. 34
WHAT HAVE WE
LEARNED

35. 35
BEGINNINGS
ARE CHALLENGING.

36. LEARNING BY
DOING…BUT LEARN
FAST!

37. EXECUTE
IDEAS FASTER THAN
EVERYBODY ELSE IN
YOUR ORGANISATION

38. AND WE HAVE THE LICENSE TO KILL:
WE CAN QUICKLY DETERMINE IF THERE
IS A BUSINESS BEHIND YOUR IDEA.

39. WE ARE DAIMLER'S SWITZERLAND:
WE ARE COMPLETELY NEUTRAL
AND INDEPENDENT, NO POLITICS!

40. WE ENSURE CUSTOMER-FOCUS
AND MARKET POTENTIALS.

41. WE ARE NOT
AFRAID TO FAIL,
AND FAIL FAST.
WE LIKE FAILING AS LONG AS
WE LEARN SOMETHING.

42. 42
RIGHT TALENT
SPEED
SEPARATE ENTITY
HIGH MANAGEMENT ATTENTION
STRONG CULTURE & TEAM
FREEDOM
EXECUTION COUNTS

43. 43
IN A NUTSHELL – WHAT’S IN FOR A CORPORATE?
THE LICENSE TO KILL:
WE CAN QUICKLY
ELIMINATE NON-
PROFITABLE PROJECTS
THROUGH OUR
VALIDATION PROCESSES
END-TO-END
INNOVATION
PROCESS
SUPPORT FROM THE BEST
DIGITAL TALENT POOL OF
THE WORLD
WORKSHOP TRAINING IN
NEW WORKING METHODS
CULTURAL CHANGE
DRIVEN BY COCREATION
100% RE-FINANCED

44. THE COMPANY TRUSTS US.

45. 45
THANK
YOU