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Making elephants dance -Lean startup for corporations

  1. John McIntyre Managing Director a presentation by:
  2. Let’s  take  a  moment  to  remember  1987   Provide  by: Janice  Frazer,   Director  of  Innovation  Practice  at  Pivotal  Labs
  3. “To  meet  the  demands  of   the  fast-­changing   competitive  scene,  we   must  simply  learn  to  love   change  as  much  as  we   have  hated  it  in  the  past.” –Tom  Peters, Thriving  on  Chaos:   Handbook  for  a  Management  Revolution 1987
  4. Let’s  take  a  moment  to  remember  1987   Model  8580: 20  MHz  Intel  80386  (32  bit) Up  to  16  Mb  of  high  speed  RAM   (=2MB)   140  Mb  of  disk  storage Advanced  graphics   Optional  16  MHz  80387  Math  Co-­ Processor OS/2  or  DOS Mouse $10,895
  5. 1987 1-­7
  6. 1996/97 “Disruptive technologies typically enable new markets to emerge.” “The reason is that good management itself was the root cause. Managers played the game the way it was supposed to be played. The very decision-making and resource-allocation processes that are key to the success of established companies are the very processes that reject disruptive technologies: listening carefully to customers; tracking competitors’ actions carefully; and investing resources to design and build higher-performance, higher-quality products that will yield greater profit. These are the reasons why great firms stumbled or failed when confronted with disruptive technological change.” ― Clayton M. Christensen, The Innovator's Dilemma (1997): When New Technologies Cause Great Firms to Fail
  7. 1996/97 ”The Lesson is, we all need to expose ourselves to the winds of change”. “Businesses fail either because they leave their customers or because their customerleave them !” ― Andrew S. Grove, Only the Paranoid Survive
  8. 2005
  9. 2005 Failure   story  
  10. 2011
  11. Why  does  this   matter?
  12. S&P  500  churn  since  2002 ADDED TO the index LEFT the index
  13. Increased  Topple  Rate “Back in the 1930’s, a company coming on the S&P 500 list could expect to remain there for 65 years… the average life-­time of a company on the S&P 500 has declined to about 15 years, a decline of almost 80%.” “businesses … do not know how to adapt to the new conditions of the Information Era, and thus await a languishing future to be followed soon by death.” - Steve Blank - 2015 The  decline  of  the  blue  chip
  14. Software  is  eating  the  world,  disrupting   entire  industries $6B  Valuation   Financial  Services $19B  Valuation   Transportation $3.2B  Acquisition  by  Google   Home  Automation $3.3B  Valuation   Travel  &  Hospitality $20B  Valuation   Entertainment $28B  Valuation Auto/Home  Energy
  15. Developers  will  save  the   world!
  16. define: a·gile -- solves  the  problem  of  waiting  long   periods  of  time  before  development   can  begin. Provide  by:  Reuven Cohen
  17. de·sign think·ing -- proven  and  repeatable  problem-­solving   protocol  focusing  on  customer  empathy.
  18. lean start·up -- Emphasizing customer  development   to  lead  product  development  and   bsuiness decision  making.  
  19. Desirability ViabilityFeasibility ØDesign  Thinking ØLean  Startup ØAgile
  20. define: in·no·va·tion -- a new method, idea, product.
  21. in·cre·men·tal in·no·va·tion
  22. dis·rup·tion in·no·va·tion disturbance or problems that interrupt an event, activity, or process (or business).
  23. fail fast. “Develop a culture of experimentation, be willing to try stuff, do it quickly. But if it’s not working, be willing to fail fast and pivot.” David Brown, Managing Partner of Techstars.
  24. Innovation Is Worthless unless it solves real problems for real people.
  25. Ten things from studying ten of the world’s fastest growing startups What high-flying companies know about growth that no one else does. Startup Growth Engines: How Today’s Fastest Growing Startups Unlock Extraordinary Growth is more than 160 pages filled with the research, quotes, and insights packed into each case study. I hope it becomes a valuable part of your library—especially as a growth leader or entrepreneur looking for breakthrough growth.
  26. Lesson 1: Growth is nothing without the product. “Companies fail for two main reasons—trying to grow when they shouldn’t, or being too timid when they should.” Product is the foundation of growth. Without it, sustainable growth is impossible. -- Marc Andreessen
  27. Lesson 2: Growth is never ‘done’ All of these companies have a relentless focus on growth. It’s not just something they pay lip service to. They put headcount, resources, and effort into growth.
  28. Lesson 3: Growth is not marketing, marketing is not growth It takes real growth teams across engineering, product, and yes, marketing, to design the growth programs that really move the needle.
  29. Lesson 4: Doing what everyone else is doing is the wrong strategy. None of these breakout companies did it the same way that the incumbents grew in their vertical or type of business. They all picked their own path, often leaving people wondering what they were thinking.
  30. Lesson 5: Don’t try to boil the ocean. In “Startups Always Have a Chasm to Cross,” Andy Rachleff, co-founder of Wealthfront, highlights the critical importance of being laser-focused on a niche early to achieve growth.
  31. Lesson 6: Growth hacks have nothing to do with short-term tactics. The term “growth hacking” is in the hype cyclewhitewash, as journos and others have misappropriated its meaning and assigned it to nearly every known digital marketing tactic.
  32. Lesson 7: Do things that don’t scale, build things that do. Paul Graham’s advice to startups is to “do things that don’t scale” to get initial traction. This means things like concierging new customers, and taking the time out to visit and talk with users, etc. In each of these companies’ cases they followed that advice in one way or another.
  33. Lesson 8: There are analytics and then there are insights. Lots of people track analytics. Plenty of dashboards, plenty of vanity metrics. Avinash Kaushik calls it ‘data puking.’ Lots of numbers, little insight. All of these successful companies uncovered real insights that drove growth.
  34. Lesson 9: Combining multiple growth engines can lead to faster growth. It has an asset—all the code—a network, and more. These things all work together to drive massive adoption and growth.
  35. Lesson 10: There are no silver bullets. None of these companies have a single silver bullet. They didn’t just explode into millions of users and downloads. Even the products that we think of as “magical” use meticulous growth strategies to drive adoption and growth.
  36. Bonus Growth is a team sport. The best companies are growth organizations at their core. It’s in their DNA. From the top to the bottom everyone makes growth the imperative. There is no lone growth hacker—everyone at the best growth companies knows they have a role to play in driving growth.
  37. Always be branding. And remember.. dis·rup·t·his innovate or die
  38. Over  60   corporate   accelerators   opened  in  the   last  4  years
  39. Hacking  a  Corporate  Culture:  Stories,  Heroes  and  Rituals  in  Startups   and Companies Posted  on  September  9,  2015  by  steveblank |   Corporate  Innovation  Requires an   Innovation Culture Innovation  in  an  existing  company  is  not  just  the  sum   of  great  technology,  key  acquisitions,  or  smart   people.  Corporate  innovation  needs  a  culture  that   matches  and  supports  it.  Often  this  means  a change   to  the  existing  company’s  culture.
  40. Why  Corporate  Entrepreneurs  are  Extraordinary   – the  Rebel Alliance Posted  on  August  25,  2015  by  steveblank |   I’ve  spent  this  year  working  with  corporations  and   government  agencies  that  are  adopting  and   adapting Lean  Methodologies.  The  biggest  surprise   for  me  was  getting  schooled  on  how  extremely   difficult  it  is  to  be  an  innovator  inside  a  company  of   executors.  —– What  Have  We  Lost?  
  41. Program  Structure 12Week  Program   12 Participating  Teams Mix  of  Corporate  &  Startup  Teams
  42. Program  Focus Desirability Viability Feasibilit y ØDesign  Thinking ØLean  Startup ØModern  Leadership
  43. Program  Curriculum Designed  to  validate  business  model quickly  &  effic Mentored By Experts Weekly Working Sessions 10   Custome rs  Per   Week Evidence   Based Peer   Review Presenting Identify   Resource s   Required  
  44. Customer  Development  Manifesto A  Startup  Is  a  Temporary  Organization  Designed  to  Search  for  A  Repeatable  and  Scalable  Business  Model 1.  There  Are  No  Facts  Inside  Your  Building,  So  Get  Outside,  Get  out  of  the  Building! 2.  Pair  Customer  Development  with  Agile  Development 3.  Failure  is  an  Integral  Part  of  the  Search  for  the  Business  Model 4.  If  You’re  Afraid  to  Fail  You’re  Destined  to  Do  So 5.  Iterations  and  Pivots  are  Driven  by  Insight 6.  Validate  Your  Hypotheses  with  Experiments 7.  Success  Begins  with  Buy-­In  from  Investors  and  Co-­Founders 8.  No  Business  Plan  Survives  First  Contact  with  Customers 9.  Not  All  Startups  Are  Alike 10.  Startup  Metrics  are  Different  from  Existing  Companies 11.  Agree  on  Market  Type  – It  Changes  Everything
  45. Program  Key  Metrics
  46. Innovators  Programs 5 Locations,  44  Teams,  28  Startups,  16  Internal  Innovation  Teams    
  48. “The  Innovators  Program  is  about   empathizing  with  customers,   listening  to  them  and   understanding  how  to  create   value.  This  was  an  investment  in   me.  I  gained  the  ability  to  grow  a   product  from  an  idea.”   –Ian  Firth,  Senior  Architect  at  Citrix, Innovators  Program  Participant “The  Innovators  Program  is  about   empathizing  with  customers,   listening  to  them  and   understanding  how  to  create   value.  This  was  an  investment  in   me.  I  gained  the  ability  to  grow  a   product  from  an  idea.”   –Ian  Firth,  Senior  Architect  at  Citrix, Innovators  Program  Participant
  49. INCLUDE  VENTURE  TOOLKIT   LOGO “We  were  pushed  to  find   paying  customers  before   completing  the  product  and   we  did.  We’ve  now   successfully  raised  a  seed   round  of  $1.7M  and  we’re   gearing  up  for  a  ground-­ breaking  year  thanks  to  the   Innovators  Program”.   -­ Miro Salem,  Founder,  3Ten8 “We  were  pushed  to  find   paying  customers  before   completing  the  product  and   we  did.  We’ve  now   successfully  raised  a  seed   round  of  $1.7M  and  we’re   gearing  up  for  a  ground-­ breaking  year  thanks  to  the   Innovators  Program”.   -­ Miro Salem,  Founder,  3Ten8­GXDH_M?t=31
  50. “It’s  a  completely  new   way  of thinking  that  we   will  carry  forever  for   internal  projects  and   innovation  at  Citrix”   – Marta  Guerra,  Founder,  CubeFree “It’s  a  completely  new   way  of thinking  that  we   will  carry  forever  for   internal  projects  and   innovation  at  Citrix”   – Marta  Guerra,  Founder,  CubeFree
  51. Strong  Coalition  of  Program  Partners  Partner  Driven  Program
  52. Collider solves  developer's  problems  in  real-­time  or  less! Collider runs  in  a  developer's  environment  and  can   assist    if  a  developer  getting  stuck Collider  provides  the  right  knowledge,  to  the  right   people,  at  the  right  time Raleigh  Demo  Day  December  8th
  53. “We  are  deeply   committed  to  the   Raleigh  innovation   community  and  our   partnership  with  Citrix   has  delivered   exceptional  value”   –DeLisa  Alexander,  CPO,  Red  Hat “We  are  deeply   committed  to  the   Raleigh  innovation   community  and  our   partnership  with  Citrix   has  delivered   exceptional  value”   –DeLisa  Alexander,  CPO,  Red  Hat
  54. “The  Innovators  Program   plays  a  key  role  in  my   vision  to  grow  new  lines   of  business  from  within.   This  is  the  first  of  what  I   hope  to  be  many  new   products  that  we  develop   using  this  approach” – Jesse  Lipson,  Citrix  Sharefile   Founder   “The  Innovators  Program   plays  a  key  role  in  my   vision  to  grow  new  lines   of  business  from  within.   This  is  the  first  of  what  I   hope  to  be  many  new   products  that  we  develop   using  this  approach” – Jesse  Lipson,  Citrix  Sharefile   Founder  
  55. Join  the  rebel  alliance Innovate  or  die!
  56. a presentation by: Available  on  SlideShare