Based on learnings from multiple innovation centers, the framework allows big corporations to translate strategic business goals into bringing new products to market in lean fashion.

1. disrUPt
Business Driven Innovation
naheed@gmail.com

2. Problem
Growth
Business Development targets incremental
innovation while sidelining disruptive
innovation.
Disruptive Innovation requires new structure
to survive in the organization
Risk
Water-Fall model for product launch
increases Capital Risk
Capital Risk can be mitigated by iterative
product launch and customer validation
Time
Traditional processes take too long to launch
new products to Market
Competitive Market requires quick
opportunity evaluation and execution

3. Solution
Work around the inertia of a 1000 pound
Gorilla.

4. Why does it work?
• One product, one leader.
• Organic growth. No handoffs.
• Streamlined incentives for the team.
• Validation driven funding.
• Strategic leadership buy-in that trickles down the
organization through strict SLAs for new teams.
• Diverse team members with A-players.

5. The Process

8. Phase I – Opportunity
• 1 month – 2 months
• Pick one of the growth areas for the business
• Identify resources that feed into Phase II
o Strategy – Leverage strategy work done by internal units as well as
external consulting firms.
o Design – Basic User Research to understand customer behavior. Either hire
external consulting firm or engage in-house design resources at the
Foundry.
o Technology – Key underlying technology enablers relevant for the
domain.
o Fast pitches from partners and vendors
o Customer asks through Sales channels

9. Phase II – Business Model Innovation
• 10 days
o 2 days – Introduction, Share background knowledge. Training on team based brainstorming (half day).
• Strategy, Design Research and Market technology map.
o 3 days – Breakup into 3 teams with 5 members each.
• Divergence: Create ideas based on the shared knowledge mix. Create 6 solid ideas per team including multiple business models
per idea.
o 1 day – Convergence: Bring teams together and create a wider pitch to the whole team of 15.
o 1 day – Consolidate: Consolidate ideas and pick top 9.
o 1 day – Breakup into 3 teams with 5 members each. Each team is assigned 3 ideas to work on and build a formidable business plan.
o 1 day – Pitch Day – All top 9 ideas are pitched to the wider team. And top 6 ideas are selected for Phase III.
o 1 day – Synthesis for the Startup teams and plan of action. Team selection criteria for Phase III.
• People (15) + Support Staff
o Design (5) -- User Researchers, Designers
o Technology (5) – Developers, Entrepreneurs, Architects, Consultants
o Business (5) – Strategist, Business Development, Product Managers, Sales Managers, Finance, Consultants.
• Selection Criteria
o Company Strategy Alignment
o Viability to build MVP in 12 weeks and market launch in 6 to 9 months
o Existing Complementary Assets inside the company
• Network
• Resources – People, Connections, Sales Relationships
o Market Readiness
o Growth Potential

10. Phase III – Validation
• Equivalent to seed funding with a team of 6 (Total 6 teams)
o 1 Entrepreneur
o 1 Sales/Marketing Manager
o 4 Developers/Architects/Designers
• Recruitment
o Recruit from Phase II if possible
o Resources are loaned from the organization for the duration of the Phase.
o If the concept is validated, all the resources automatically graduate to Phase IV.
• 12 Weeks
o Agile methodology with 1 week or 2 week sprints
o Lean Startup Methodology – build MVP to validate the Business Model
• SLAs with internal organization
o Higher priority for resources (Fast-Track) – Budget, people.
o Time-bound execution. Clear success or failure definitions for startups to Graduate to next phase.
• Funding
o If there is a customer buy-in, the concept is validated and moves to Phase IV, and the team scales up to
support the first client.
o The product teams whose solutions are cancelled returned to host organizations or absorbed into other
expanding teams.

11. Phase IV – Scale
• Equivalent to Series A funding ($3MM) with a team of 20+
o 1 Entrepreneur
o 1 Sales/Marketing Manager
o 4 Developers
o 2 Architects/Developer Operations
o 4 QA, 4 Support
• Recruitment
o The loaned resources are transferred under the Entrepreneur and P&L Setup.
o Financial incentives for the team in place
• 6 Months
o Agile methodology with 1 week or 2 week sprints
o Lean Startup Methodology and iterative product launch cycle
• SLAs with internal organization
o Higher priority for resources (Fast-Track) – Budget, people.
o Time-bound milestones
o Incentives for the company-wide sales teams to cross-sell products.
• Graduation
o Product Realization is the key milestone for this phase with positive Revenue generation.
o Successful products are either absorbed into current Business Units (Complete acquisition) or else they
remain independent units. Group of Independent units could become new growth unit internally.

12. Pillars of Success

13. Culture {Attitude + Action}
• Customer and their Value Proposition first!
o Driven by bringing products to market
• A-Players with diverse background
o Diversity brings tension which leads to creativity.
• Regular show & tells (Demo day every week)
o Pressure build-up, Pressure release cycles
• Cannibalization is ok
o Look at the big picture

14. Incentives
• Intrinsic Motivation
o Potential for risk-takers to develop quickly
o High organizational visibility
o Empowered to make a big impact
• Extrinsic Motivation
o Recognition
o Scale-up promotions
o Financial rewards
• Environment to thrive
o A-Player team-mates
o Culture of performance

15. Innovation Investment
• Revenue expectation/requirement = 3x of investment
FTE 97 per hour
Hours/week 40
Seed Funding Series A (3M)
Phase I Phase II Phase III Phase IV Overhead
People 100 20 6 20 3
Phase Duration (weeks) 2 12 36 50
Time (hrs) 2 80 480 1440 2000
Team Count 1 1 6 4 1
Sunk Costs 19,400.00$ 155,200.00$ 1,676,160.00$ -$ -$ 1,850,760.00$
Investment -$ -$ -$ 11,174,400.00$ 582,000.00$ 11,756,400.00$
FTE Swell 20 36 80 3 139

16. Key Takeaways
• Endorse disrUPt methodology as a unique and
distinct product development concept.
• Help identify one or two product areas to
demonstrate capability (No funding required)
• Create an innovation fund under Chief Marketing
Officer / Head of Strategy with upto $12M success
based funding over 1 year.
• Better leverage with partners (internal/external)