Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Intrapreneurship: Tackling The Challenges of Bringing New Innovation to Market
1. CopyrightCraigRhinehart2014
Intrapreneurship:
Tackling
The
Challenges
of
Bringing
New
Innova6on
to
Market
1
Craig
Rhinehart
Intrapreneur
Director,
IBM
Smarter
Care
Strategy
and
Market
Development
IBM
So:ware
Group
Blog:
h;p://CraigRhinehart.com
Twi;er:
@CraigRhinehart
Email:
Craig@Rhinehart.com
2. CopyrightCraigRhinehart2014
• First
job
at
14
(paper
boy)
…
First
startup
at
19
(photo
retouching)
…
first
acquisi6on
at
22
(computer
business)
• 30+
years
as
both
intrapreneur
and
entrepreneur
in
business
strategy,
innova6on,
products
and
marke6ng
• Former
Founder
and
CEO
including
several
start-‐
ups
and
early
stage
companies
• Emphasis
on
enterprise
soWware
and
systems
integra6on
in
ECM,
analy6cs,
cogni6ve
compu6ng,
photography,
broadcast
video,
interac6ve
learning
• Industry
exper6se
includes
healthcare,
life
sciences,
government,
legal,
educa6on,
insurance,
media
and
entertainment
• 8
career
acquisi6ons
(3
buy
and
5
sell)
• 8
years
at
IBM
…
4
years
at
FileNet
• Acquired
twice
by
IBM
(Tarian
and
FileNet)
About
The
Speaker
2
Mentors
entrepreneurs
-‐
mul6ple
programs:
• American
Corporate
Partners
• Accelerate
DC
(George
Washington
University,
Virginia
Tech
University,
Johns
Hopkins
University)
• George
Mason
University
• University
of
Maryland
School
of
Business
Informa6on
is
my
own
and
doesn’t
necessarily
represent
IBM’s
posi6ons,
strategies
or
opinions
3. CopyrightCraigRhinehart2014
• Penicillin:
When
Alexander
Fleming
was
looking
for
his
wonder
drug
to
cure
diseases,
he
probably
never
thought
it
would
look
like
mold.
Yes,
had
Dr.
Fleming
been
a
li;le
more
6dy
and
a
li;le
less
innova6ve,
he
might
have
just
cleaned
the
mold
from
a
contaminated
Petri
dish
he
found.
Instead,
he
no6ced
it
was
dissolving
all
the
bacteria
around
it
and
inves6gated
further.
Voila!
Wonder
drug.
• Pacemakers:
Electrical
engineer
John
Hopps
was
conduc6ng
research
on
hyperthermia
when
he
discovered
that
if
a
heart
stopped
bea6ng
due
to
cooling,
it
could
be
started
again
by
ar6ficial
s6mula6on.
This
led
to
the
inven6on
of
the
pacemaker,
and
countless
lives
have
been
saved
ever
since.
• Microwaves:
Percy
Spencer
of
the
Raytheon
Company
was
conduc6ng
radar
research
with
vaccuum
tubes
when
he
accidentally
melted
a
candy
bar
in
his
pocket.
He
put
some
popcorn
in
his
experiment,
and
thus
was
born
the
microwave
popcorn
industry.
• Corn
Flakes:
What
happened
the
last
6me
you
leW
a
pot
on
the
stove
too
long?
When
John
Kellogg
and
his
brother
Will
leW
a
pot
of
boiled
grain
on
the
stove
for
several
days,
the
resul6ng
mess
became
the
launching
point
for
their
famous
breakfast
cereal.
• The
Slinky:
Naval
engineer
Richard
Jones
wasn’t
trying
to
invent
what
is
arguably
the
best
toy
ever
(your
opinion
may
vary
–
see
Silly
Pu;y).
He
was
working
on
tension
springs
designed
to
monitor
power
on
naval
ba;leships
when
one
of
them
fell
to
the
floor.
Killer
Ques6on
from
that
moment:
Is
this
fun
or
what?
3
h;p://philmckinney.com/archives/2013/10/unintended-‐
consequences-‐5-‐innova6on-‐failures-‐that-‐changed-‐the-‐world.html
…
and
they
almost
didn’t
happen
5 Innovations That Mattered
4. CopyrightCraigRhinehart2014
• Background
on
Intrapreneurship
• Why
Organiza6ons
Struggle
to
Commercialize
Innova6on
• Types
of
Innova6on
/
Commercializa6on
Process
• Real
World
IBM
Commercializa6on
Examples
• Invita'on:
Take
The
Survey
-‐
Get
the
Full
Results
and
Report
• Q&A
Session
Intrapreneurship
Webinar
Agenda
This
presenta6on
will
feature
preliminary
findings
from:
The
First
Annual
Intrapreneurship
Benchmark
Survey
on
Commercializing
Innova'on
4
5. CopyrightCraigRhinehart2014
"A
person
within
a
large
corpora>on
who
takes
direct
responsibility
for
turning
an
idea
into
a
profitable
finished
product
through
asser>ve
risk-‐
taking
and
innova>on”
Intrapreneur
De7ined
The
term
is
generally
credited
to
Gifford
Pinchot
as
far
back
as
1982
The
American
Heritage
Dic>onary:
• Not
a
perfect
defini6on
because
every
company
has
people
who
do
this
• There
is
a
collabora6on
and
decision
making
component
in
support
of
risk
taking
• Also
requires
strategy,
execu6on
and
delivery
of
results
5
7. CopyrightCraigRhinehart2014
• 67%
of
the
most
innova6ve
companies
say
innova6on
is
a
compe66ve
necessity
regardless
of
sector
or
geography
(1)
• Leading
innovators
have
grown
16%
higher
then
the
least
innova6ve
(1)
• Innova6on
transforma6on
underway
(1)
• 91%
of
companies
believe
innova6on
is
a
strategic
priority
(2)
The
Importance
of
Innovation
A
key
driver
of
organic
growth
for
all
companies
(1)
(1)
PWC
Report
“Breakthrough
Innova6on
and
Growth”
-‐
September
2013
(2)
GE
Report
“Global
Informa6on
Barometer”
-‐
January
2013
7
8. CopyrightCraigRhinehart2014
Intrapreneurs:
Similari>es
• Requires
vision
and
strategy
• Uses
leadership
and
strong
execu6on
to
succeed
• Needs
internal
funding
• Similar
process
of
validate,
plan,
build,
launch
and
grow
• Opportunity
driven
Intrapreneurs:
Differences
• Usually
Fearful
Fear
of
failure,
career
embarrassment,
confronta6on
or
peer
percep6on
• Stakeholders
and
Mo6ves
Not
just
financial
…
NIH
syndrome,
lack
of
alignment
(on
priori6es)
or
lack
of
skills
• Navigates
Exis6ng
Culture
May
have
li;le
or
no
influence
over
culture
• Has
Star6ng
Points
Ability
to
leverage
customers
Entrepreneurs:
Similari>es
• Requires
vision
and
strategy
• Uses
leadership
and
strong
execu6on
to
succeed
• Needs
external
funding
• Similar
process
of
validate,
plan,
build,
launch
and
grow
• Opportunity
driven
Entrepreneurs:
Differences
• Usually
Fearless
Simply
start
over
or
pivot
mentality
• Stakeholder
Mo6ves
Almost
exclusively
financial
(investors)
• Creates
New
Culture
• Starts
from
Blank
Page
Must
create
customer
base
Intrapreneur
or
Entrepreneur?
Mostly
similar,
the
main
differences
are
in
fears
and
stakeholder
mo6ves
Who
REALLY
has
the
most
at
stake?
8
9. CopyrightCraigRhinehart2014
Public Company Innovation Funding
“Con6nuing
budget
reductions are
like
dying
a
painful
death
by
a
thousand
cuts”
• The
larger
the
company,
the
more
acute
the
problem
• Quarter
to
quarter
financial
decisions
(cutbacks)
have
unintended
downstream
innova6on
consequences
• There
is
tension
between
organic
innova6on
investment
and
fiduciary
shareholder
budget
responsibility
where
innova6on
almost
always
loses
9
10. CopyrightCraigRhinehart2014
1. Innova>on
or
Idea>on
Phase
• Differen6ate,
expand
or
otherwise
extend
through
new
inven6on(s)
or
other
forms
of
innova6on
2. Commercializa>on
Phase
• Commercialize,
license
or
otherwise
prepare
the
innova6on
for
go-‐to-‐
market
/
market
adop6on
• Approaches
will
be
driven
by
type
of
innova6on
(incremental,
enabling,
breakthrough)
3. Market
Adop>on
Phase
• Repeatable
and
scalable
adop6on
/
revenue
growth
from
new
innova6on
3 Phases of Innovation Success
1
2
3
10
11. CopyrightCraigRhinehart2014
• Incremental
Innova>on
*
Logical
extension,
module
or
expansion
to
an
exis6ng
offering
that
extends
the
current
value
as
well
as
leverages
exis6ng
paths
to
market
• Enabling
Innova>on
*
Significant
innova6on
that
enables
new
value
to
be
delivered
…
or
something
new
to
be
achieved
but
s6ll
leverages
exis6ng
paths
to
market
• Breakthrough
Innova>on
**
Significant
innova6on
that
enables
new
value
to
be
delivered…
or
something
new
to
be
achieved
but
requires
new
paths
to
market
*
Similar
to
Sustained
Innova6on
**
Similar
to
Disrup6ve
Innova6on
Commercialization Approaches Will Vary
Tac6cs
are
innova6on
specific
(experiments,
milestones,
funding,
process,
agility,
biz
model)
11
12. CopyrightCraigRhinehart2014
• The
Innovator’s
Dilemma
• The
Innovator’s
Solu6on
both
by
Clayton
Christensen
• Ten
Types
of
Innova6on:
The
Discipline
of
Building
Breakthroughs
by
Larry
Keeley,
Helen
Walters,
Ryan
Pikkel,
Brian
Quinn
• The
Innovator's
DNA:
Mastering
the
Five
Skills
of
Disrup6ve
Innovators
by
Jeff
Dyer,
Hal
Gregersen,
Clayton
Christensen
• Business
Model
Genera6on
by
Alexander
Osterwalder
and
Yves
Pigneur
Innovation
Bookshelf
Presenters
Opinion:
The
Most
Impacwul
Books
on
Innova6on
12
13. CopyrightCraigRhinehart2014
• EvereT
Rogers:
Demonstrated
the
applica6on
of
diffusion
theory
to
technology
adop6on
in
1962
book
“Diffusion
of
Innova6ons”
• Geoffrey
Moore:
Expanded
the
model
with
“Crossing
The
Chasm”
in
1991
…
is
now
the
de
facto
way
to
bring
new
technology
solu>ons
to
market
• Moore’s
book
introduced
a
systema6c
method
and
tools
to
prevent
new
products
and
solu6ons
from
ending
up
in
the
“chasm”
Proven
Adoption
Models
Exist
Entrepreneurs
and
large
enterprises
drive
adop6on
that
fuels
growth
WTH THROUGHOUT BUSINESS LIFE CYCLE
C-LEVEL BUSINESS ACUMEN
CRAIG RHINEHART
Marketing Solutions Spanning the Business Life Cycle
Rogers’s
Original
Model
PRENEUR DRIVING ECONOMIC GROWTH THROUGHOUT BUSINESS LIFE CYCLE
RAGING INFORMED INTUITION AND C-LEVEL BUSINESS ACUMEN
CRAIG RHINEHART
Marketing Solutions Spanning the Business Life Cycle
om | 703.868.0120
hinehartprofile
nehart
ehart.wordpress.com
| Ashburn, VA 20147
RENEUR DRIVING ECONOMIC GROWTH THROUGHOUT BUSINESS LIFE CYCLE
AGING INFORMED INTUITION AND C-LEVEL BUSINESS ACUMEN
CRAIG RHINEHART
Marketing Solutions Spanning the Business Life Cycle
m | 703.868.0120
nehartprofile
nehart
ehart.wordpress.com
Ashburn, VA 20147
Moore’s
“Chasm”
Model
The
“Chasm”
13
14. CopyrightCraigRhinehart2014
Innova6on
commercializa6on
is
not
a
well
understood
process
• 68%
of
the
corporate
entrepreneurs
we
surveyed
described
their
approach
to
innova6on
as
unstructured
and
free-‐
flowing
(1)
• 40%
said
that
their
companies
came
up
with
lots
of
good
ideas
but
couldn’t
get
enough
of
them
to
the
commercializa6on
stage
(1)
• Research
shows
that
structured
and
formal
processes
for
innova6on
are
more
likely
to
result
in
viable
new
ideas
(1)
• More
important,
the
absence
of
a
formal
process
correlated
with
poor
performance
in
bringing
new
products
and
services
to
market
(1)
(1)
Ernst
&
Young
Report
“Igni6ng
Innova6on:
How
Hot
Companies
Fuel
Growth
from
Within”
-‐
2010
Some Innovation Killers
14
15. CopyrightCraigRhinehart2014
• Even
though
84%
of
execu6ves
say
innova6on
is
extremely
or
very
important
to
their
companies’
growth
strategy
...
only
39%
say
their
companies
are
good
at
commercializing
new
products
or
services
(1)
There
is
a
Sizable
Gap
Most
organiza6ons
struggle
to
bring
organic
innova6on
to
market
(1)
McKinsey
&
Company
Report
“Innova6on
and
Commercializa6on”
-‐
2010
15
16. CopyrightCraigRhinehart2014
Polling Question 1
• Innova6on
is
important
to
the
long-‐term
health
and/or
compe66ve
advantage
of
an
organiza6on?
1. Strongly
agree
2. Agree
3. Somewhat
agree
4. Somewhat
disagree
5. Disagree
6. Strongly
disagree
16
18. CopyrightCraigRhinehart2014
Polling Question 2
• How
would
you
characterize
your
organiza6ons
ability
to
commercialize
its
own
innova6on?
1. Excep6onal
2. Above
average
3. Average
4. Below
average
5. Poor
18
19. CopyrightCraigRhinehart2014
Ability
to
Commercialize
Innovation?
PRELIMINARY
SURVEY
FINDINGS
How$would$you$characterize$your$organiza3ons$
ability$to$commercialize$its$own$innova3on?$
Excep&onal+
Above+average+
Average+
Below+average+
Poor+
72%
20%
8%
8%
38%
26%
The
First
Annual
Intrapreneurship
Benchmark
Survey
on
Commercializing
Innova'on
19
20. CopyrightCraigRhinehart2014
Mountains
of
Innovation
–
Top
10
Companies
1. IBM
-‐
6,809
(patents)
2. Samsung
-‐
4,675
3. Canon
-‐
3,825
4. Sony
-‐
3,098
5. MicrosoW
-‐
2,660
6. Panasonic
-‐
2,601
7. Toshiba
-‐
2,416
8. Hon
Hai
Precision
Company
-‐
2,279
9. Qualcomm
-‐
2,103
10. LG
Electronics
-‐
1,947
Other
innova6ve
notables
include
Apple,
Google,
Hewle;-‐Packard
2013
was
the
21st
consecu6ve
year
that
IBM
topped
the
annual
list
with
6,809
patents
• In
2013,
the
United
States
Patent
and
Trademark
Office
(USPTO)
granted
more
than
270,000
patents
• The
USPTO
awarded
76,850
patents
to
the
top
50
companies
alone.
h;p://www.huffingtonpost.com/2014/01/18/
innova6ve-‐companies_n_4624014.html
20
21. CopyrightCraigRhinehart2014
• IBM
Case
Manager
IBM
SoWware
that
adds
case
management
func6ons
and
value
to
exis6ng
business
process
management
plaworm
h;p://www-‐03.ibm.com/soWware/products/en/casemana
• IBM
Cúram
Solu6on
for
Healthcare
Reform
IBM
SoWware
that
adds
healthcare
reform
specific
func6ons
and
value
to
exis6ng
social
services
plaworm
..
supported
by
mul6ple
modules
h;p://www-‐03.ibm.com/soWware/products/en/healthcare-‐reform
• IBM
Content
Collector
for
Email
IBM
SoWware
that
adds
email
integra6on,
specific
func6ons
and
value
to
exis6ng
content
collec6on
engine
…
also
extended
by
other
“collectors”
h;p://www-‐03.ibm.com/soWware/products/en/contcollforemai
Incremental Innovation
21
22. CopyrightCraigRhinehart2014
• IBM
Pa6ent
Similarity
Analy6cs
(Research
Version)
• IBM
Advanced
Care
Insights
(Commercial
Version)
Originally
invented
by
IBM
Research,
now
commercially
available
IBM
SoWware
that
enables
a
new
type
of
advanced
analysis
of
big
data
h;p://www.research.ibm.com/healthcare/projects_pa6entsimilarity.shtml
h;p://www-‐03.ibm.com/soWware/products/en/advanced-‐care-‐insights
• IBM
TAKMI
(Research
Version)
• IBM
Content
Analy6cs
(Commercial
Version)
Originally
invented
by
IBM
Research
(a
top
100
inven6on),
now
commercially
available
IBM
SoWware
that
analyzes
and
visualizes
unstructured
data
...
core
natural
language
processing
engine
also
used
in
IBM
Watson
h;p://www-‐03.ibm.com/ibm/history/ibm100/us/en/icons/takmi/
h;p://www-‐03.ibm.com/soWware/products/en/category/content-‐analy6cs
Enabling Innovation
22
23. CopyrightCraigRhinehart2014
• IBM
DeepQA
(Research
and
Jeopardy!
Versions)
• IBM
Watson
(Commercial
Version)
Originally
invented
by
IBM
Research,
now
commercially
available
IBM
SoWware
that
processes
informa6on
more
like
a
human
than
a
computer
…
by
understanding
natural
language,
genera6ng
hypotheses
based
on
evidence
and
learning
as
it
goes
h;p://researcher.watson.ibm.com/researcher/view_group.php?id=2099
h;p://www.ibm.com/smarterplanet/us/en/ibmwatson/
Breakthrough Innovation
IBM
DeepQA
IBM
Watson
2011
2007
2014
Jeopardy!
Challenge
QeepQA
Research
Begins
Ecosystem
Announced
Healthcare
Solu6on
Announced
New
Business
Unit
Formed
Business
Unit
Expanded
Commits
$1
Billion
23
24. CopyrightCraigRhinehart2014
Valida6on
Itera6on
Early
Adop6on
5 Must Haves for Any Successful Project
1. Strong
Execu6ve
Support
/
Sponsorship
2. The
“Right”
Innova6on
/
Alignment
Supported
by
Strong
Business
Case
3. Experiments,
Metrics
and
Milestones
4. Realis6c
/
Flexible
Plan
and
Timeline
5. Right
Team
with
Persevering
Leader
24
25. CopyrightCraigRhinehart2014
Polling Question 3
• Which
tools
do
you
use
to
assess
or
advance
innova6ve
ideas
within
your
organiza6on?
1. SWOT
Analysis
2. Business
Modeling
Tool
(such
as
Business
Model
Canvas)
3. Business
Case
or
ROI
Analysis
4. We
have
an
in-‐house
tool
5. Other
25
27. CopyrightCraigRhinehart2014
World Famous Innovation Failures
Bad
vision,
poor
execu6on
and
lack
of
market
valida6on
all
contributed
to
these
1. Ford
Edsel
(1957)
2. Sony
Betamax
(1979)
3. Colgate
Kitchen
Entrees
(1982)
4. New
Coke
(1985)
5. Premier
Smokeless
Cigare;es
(1988)
6. The
Newton
of
Apple
(1993)
7. Harley
Davidson
Perfume
(1994)
8. BIC
Women’s
Underwear
(1998)
9. The
Zune
of
MicrosoW
(2006)
10. Cocaine
Energy
Drinks
(2006)
h;p://www.linkedin.com/today/post/ar6cle/
20130923083142-‐206580-‐world-‐famous-‐innova6on-‐failures
27
28. CopyrightCraigRhinehart2014
1. Ini6ate
or
help
improve
your
Intrapreneurship
program
2. Improve
your
individual
intrapreneurship
skills
3. Look
for
an
intrapreneurial
project
to
get
involved
with
Explore
AIPMM
Product
Innova6on
Leadership
cer6fica6on
h;p://www.aipmm.com/html/cer6fica6on/strategic-‐innova6on.php
3
Things
You
Can
Do
To
Make
A
Difference
28
29. CopyrightCraigRhinehart2014
• The
First
Annual
Intrapreneurship
Benchmark
Survey
on
Commercializing
Innova6on
h;ps://www.surveymonkey.com/s/intrapreneurshipbenchmark
• Launched
May
21,
2014
• Closes
June
30,
2014
• Full
Report
Available
in
Q3
Take
The
Survey
…
Get
The
Results
Suppor6ng
Blog:
Help
Stop
the
Senseless
Killing
of
Important
Innova@on
h;p://wp.me/pKZJd-‐ez
29
30. CopyrightCraigRhinehart2014
Q&A
30
Craig
Rhinehart
Contact
Informa6on
Blog:
h;p://CraigRhinehart.com
Twi;er:
@CraigRhinehart
Email:
Craig@Rhinehart.com
or
craigrhinehart@us.ibm.com
The
First
Annual
Intrapreneurship
Benchmark
Survey
on
Commercializing
Innova6on
h;ps://www.surveymonkey.com/s/
intrapreneurshipbenchmark