CSSI - Corporate Innovation Workshop - Summary

Workshop Summary | Corporate Startup Summit International
© 2016 itheca Group, Pragmatic Solutions 2016-04 - CSSI Workshop - Summary - 1-1.docx | Version 2016-05-15 | 1
Introduction
Innovation practices all aim for one superior goal: establishing a profitable, repeatable and scalable business
model. In other words: capturing value with an accepted solution to a problem worth solving within the given
restrictions.
Unfortunately, there is no «one-size-fits-it-all» set of practices for successful innovation. Innovation activities
come in different flavors. Sometimes innovation comes from within a line-of-business, sometimes from a
dedicated team or organizational unit. In some cases, innovation aims for disruption, a new model, or it
simply exploits efficiency potential.
But innovation practices also attend to stakeholder interests. While some practices try to increase the
sponsor’s control over innovation activities in order to reduce the sponsor’s perception of risk, other
practices address the innovator’s need for maximum freedom of discretion and self-determination in order to
cope with the innovation challenge.
In our workshop at the Corporate Startup Summit International in Zurich (April 27-28, 2016), we invited the
attendees to collect, share and discuss practices which foster successful (corporate) innovation. Due to the
expected number of workshop participants, we organized the collection in eight different stations, each
equipped with a large Moving Wall. The subjects were derived from our Corporate Innovation Framework, a
framework to successfully set-up, organize, lead and govern corporate innovation:
Corporate Innovation Framework © itheca Group
In this document, you will find the workshop results we collected with the help from our facilitators from
itheca Group and Pragmatic Solutions.
Organizational Model
& Governance
Approach & Culture
Funding
Corporate
Innovation
Access &
Resourcing

Corporate Innovation Framework domain: Organizational Model

Corporate Innovation Framework domain: Governance

Corporate Innovation Framework domain: Funding

Corporate Innovation Framework domain: Resourcing

Corporate Innovation Framework domain: Collaboration with Marketing & Sales

Corporate Innovation Framework domain: Collaboration with corporate services

Corporate Innovation Framework domain: Approaches, methodologies, principles

Corporate Innovation Framework domain: Culture

Corporate Innovation Framework domain: Organizational Model
Approach/ Measure/ Principle
Goal
Dos
Don’ts
1. In this example in Israel was innovation
fully embedded in the line organization and
supported by a risk taking leadership
H=10%/V=20%
Good leadership creates the right culture and
establishes an organization, which allows to
innovate as a natural process of doing business.

Goal
Dos
Don’ts
2. This company enabled radical/disruptive
innovation with high risk in an outside
incubator of a group company.
H=95%/V=85% (at group company)
H=5%/V=5% (at Headquarters)
This worked and was so successful, that the HQ
brought the key person to the HQ in order to
repeat it there.
After this key person arrived at the HQ the stable
but slow organization rejected the radical
innovation: You can not implant successful
concepts from other places without facing side
effects.
3. F10 Incubator from SIX. This company
choose to set the incubator outside of the
traditional organizational structure.
H=90%/V=90%
Give freedom, budget and time.
Use this setup for radical innovation (and not for
operations).
4. Experience: This company choose to
establish a semi-autonomous
organizational approach.
The approach failed after they could not
deliver results and was given up.
H=Horizontal: 50%/V=Vertical: 50%
Use existing experience and reputation even if
setup is not optimal.
Knowing the power and incentive system or the
help of the top management can help.
Use the existing freedoms of the setup, take risks
and market your progress.
Don’t try to merge corporate culture & innovation, if
it is a bad compromise, which wants to please
everybody.
The MbO system killed the this approach, because
they silos had different incentive systems, which
prevented needed collaboration.
Sponsor had final say over Innovator.
Placement: V=Vertical 0%= full Sponsor / 100%= full Innovator
H=Horizontal 0%=Fully integrated / 100%= totally autonomous

Corporate Innovation Framework domain: Governance
Goal
Dos
Don’ts
Steering board (member of Executive board) is
accountable for sponsoring, guiding the innovation
in the corporation
Controlling of innovation portfolio with one metric:
traction control
Build up internal & external (Lab) Innovation teams:
Internal for strategic and process innovation
projects, External for Product or Service-Projects
Focus on collaboration between teams. Agile
Development in X-functional teams is much better
than in hierarchical, project-based teams.
Make sure that not always the same people are
working on Innovation projects. Better to ensure the
‘right’ people.
Some projects are IT dominated – don’t forget the
business people

Goal
Dos
Don’ts
It’s not clear to measure traction over different
projects. Each project has it’s own KPI. How
compare different projects?
Build up a platform for innovation – everybody can
be part of this platform
Open for all, better collaboration, the democratic
way

Corporate Innovation Framework domain: Funding
Goal
Dos
Don’ts
Time budget for quarterly quality circles
Goal: To elaborate new services driven by internal
quality circles which are held in collaboration of
different business units
Works well for generating new ideas, for keeping
cost under control, for being effective and for
supporting alignment
Works only if team member stay motivated and
therefor engaged. No motivation à money is lost
3-min. Pitch (new, strategic fit, solving a customer
problem), 3 months 20%, up to KCHF 30, Boot
camp
Goal: To generate new revenues à new products
and services
Works well for hands on and focused prototyping,
pivoting and getting customer feedback
Decision making (evaluation and selection from
project lists without numbers) is difficult
Project funding with sponsor
Goal: To benefit from project methodologies by
managing focus, resources and outcome
(deliverables)
Works well for risk management and from an
accountable perspective
Project start is quite unpredictable because sponsor
involvement is needed first
New external start-up with new team
Goal: Value based business and corporate
development with “no silos”
Works well for cost control and for getting into
seed money
Death Valley after seed phase slows down time to
market

Corporate Innovation Framework domain: Resourcing
Goal
Dos
Don’ts
Have people to apply for innovation jobs
Goal: Get enough of the right resource
Placement: V–80% /H-50%
People need safety
People need to get returns
Uncertainty regarding future carrier
Incentive to participate
Goal: getting the right people on board
Tolerate failure
Empower them
Create free space for new thinking
Corporate creates roadblocks or do not remove
them

Goal
Dos
Don’ts
Projektbörse -> freie Wahl des Arbeitsauftrags
durch Mitarbeiter
Goal: right motivated people
Short team assignment (about 3 months)
Employee should not be proposed by the boss, free
choice
Don’t overcomplicate the process
Autonomous team creation
50% from inside, 50% from outside the corporation
Goal: mix of insider knowledge and fresh views,
improve idea from outside
Focus more on customer USN
Longer up to speed rhythm
Budget to hire professionals / contractors
Goal: limit risks / liabilities
Flexibility
Lack of permanent hire candidates
Limited external budget
Employees branding -> make job appealing to
talent
Make employees speak for themselves (honesty)
Don’t oversell
Need the right environment to reinforce trust in
employees message
HR promote talent pool, time sharing with actual
job
Feeling of job safety
Changes in day to day job
Create more pressure, less time for the normal job
Placement: V=Vertical 0%= full Sponsor / 100%= full Innovator
H=Horizontal 0%=Fully integrated / 100%= totally autonomous

Corporate Innovation Framework domain: Collaboration with Marketing & Sales
Goal
Dos
Don’ts
Frühzeitige Einbindung von Kunden.
Goal: Mach es richtig von Anfang an.
Frühzeitige, laufende Einbindung mit einem
beständigen Team.
Performance-abhängige Rewards.
Keine Partikularinteressen zulassen.
Ohne Knowhow loslegen.
Loslaufen. Später abstimmen. Mit Fakten zurückkommen. Learnings ableiten.
Abgestimmtes Vorgehen.
Goal: First Mover Impact, Differentiation,
Optimization, ...
Zu grosser Zeitverlust verhindern.
First Mover Advantage kann nicht realisiert werden.
Gemeinsame Absatzplanung. Lieferdruck («Come to a conclusion»).
Verkaufsdruck, (Selbst-)übererschätzung

Goal
Dos
Don’ts
Gemeinsame Ziele, Teams, Kultur.
Goal: Alignment
Competition zwischen verticals

Corporate Innovation Framework domain: Collaboration with corporate services
Goal
Dos
Don’ts
Vollständige Autonomie für das Corporate Startup,
Führung im Sinne eines VC
Vollständige Unabhängigkeit von den Corporate
Services (HR, IT, Procurement, Finance)
Abschaffung der Corporate Compliance
Funktionen
Aushebelung Weisungen, Richtlinien, Standards
des Konzerns

Goal
Dos
Don’ts
Bei Sinnhaftigkeit und Anwendbarkeit, Nutzung
gemeinsamer Infrastruktur/Corp. Services – mit
Entscheidungskompetenz im Startup, ob im
Einzelfall die Corp. Services genutzt werden
Mismatch zwischen Startup- und Konzern-Kultur
Inflexibilität von Konzern-Prozessen
Schwierige Nutzung von Synergien,
Inkompatibilitäten zwischen technischen Standards,
Prozessstandards, ...
Prozesse dauern zu lang/zu kompliziert (gerade im
HR Bereich)
Notwendigkeit: Verschlankung der
Entscheidungsstrukturen im Konzern
In Abhängigkeit von der Reife des Startups kann
sukzessive die Autonomie reduziert werden und
die Nutzung der Corp. Services verlangt werden
Ist abhängig vom Geschäftsmodell und
Führungsanspruch des Konzerns:
Schwieriger Übergang von der Startup-Kultur zur
Konzern-Kultur: Ist eine solche Transformation mit
dem ursprünglichen Startup-Team und als
eigenständige Firma möglich – oder muss die
Einheit dann vollständig integriert werden?

Corporate Innovation Framework domain: Approaches, methodologies, principles
Goal
Dos
Don’ts
Lean Startup Understand the different phases and act
accordingly (problem solution fit, product market
fit, scale)
Start with 15 minutes F2F problem interviews.
Follow up later with solution interviews.

Goal
Dos
Don’ts
A not transparent KPI/incentive structure may
render important experiment impossible
Design thinking Understand the different phases and act
accordingly (Explore, Ideate, Prototype, Scale)
Customer Journey Understand and map out the different roles like
user, customer, stakeholder ..)
Lean canvas
Business model canvas
Value proposition canvas
Use your canvas not only at the beginning but also
as living document combined with your scorecard
while you go through the different phases.
Some companies are not yet ready to deal with the
full transparency of risks and hypothesis.
Apply agile development when executing the
product development after the ideation phase
Company was experienced in agile development
originating from their core product development
activities.
Other approach is to collaborate with contract
development company that works agile.
Stage Gate I most cases the definition of the phases
(originating from product improvement in the core
business) does not fit the innovation project
Use trend radar and startup screening Search for new opportunities or threats

Corporate Innovation Framework domain: Culture
Goal
Dos
Don’ts
Fehler machen und daraus lernen belohnen. Eine
konstruktive Fehlerkultur pflegen.
Gemachte Erfahrungen (Learnings) kommunizieren
und im Unternehmenswissen verankern.
«Trial and Error» culture engages people to work
better.
Fehler wiederholen nicht belohnen.
Gemachte Erfahrungen niederschreiben und (in
einem IT-System) archivieren.
Die Möglichkeit eines «Fehlschlags» (= unerwar-
teter Ausgang eines Experiments) von Anfang an
einbeziehen und als einen Teil des Weges ansehen.
«FAIL» bedeutet «First Attempt in Learning».

Goal
Dos
Don’ts
Den Mut wertschätzen und ggf. belohnen,
Experimente zur Validierung von Annahmen
durchzuführen.
Wagnisse (eingehen).
«NO» bedeutet «Next Opportunity».
Querdenken: «Think outside the box»
Glaubhafte, authentische Kommunikation zwischen
allen Beteiligten.
Offene Kommunikation ohne Angst vor
Repressalien.
Vertrauenskultur (Trust) schaffen.
Stakeholder Management etablieren.
Mitarbeitende oder andere Stakeholder «für dumm
verkaufen».
Work with what you have/ work with the people
you have. Take people for what they are.
Stärken der Beteiligten ausbauen, begeistern.
Set realistic goals.
Keine «mission impossible». Keine unrealistischen
Zeit- und Kostenrahmen.
Rolemodels entwickeln/ installieren.
Skalierbarkeit (Scalability) sicherstellen.
Change Agents einsetzen.
Konsistentes Verhalten der Beteiligten über Zeit
sicherstellen.
Change Agents nach dem Transformationsvorhaben
zu entlassen sendet die falschen Signale.
Unternehmen mit zwei Kulturen: Entrepreneurship
vs. Alltagsgeschäft. Wechsel erwägen.
Respekt für Werte und Geschichte/ Tradition der
Firma.
(Continuous) Change als Aufgabe und Kultur
etablieren.
Kultur zum Thema machen. Klare Ziele. Wie wollen
wir miteinander arbeiten.
Impact von Kultur verstehen: «culture eats strategy
for breakfast».
Streight talk. «Learner» anstelle «Knower» Haltung.
Keine zu grosse oder unklare Aufgabenstellung.

Further Reading
As a source of inspiration, here is an excerpt of our recommended readings on Innovation and Business
Transformation. We successfully applied many of the principles and practices described to Corporate
Innovation projects ourselves. Needless to mention that not every practice meets every purpose in every
situation. If you want to know more, get the full English and German list of recommendation etc., contact us
at cssi16@itheca.com.
Title Author
101 Design Methods: A Structured Approach for Driving Innovation in Your
Organization
Vijay Kumar
Accelerate: Building Strategic Agility for a Faster-Moving World John P. Kotter
Agile Product Management with Scrum: Creating Products that Customers Love Roman Pichler
David and Goliath: Underdogs, Misfits, and the Art of Battling Giants Malcolm Gladwell
Entrepreneur's Guide To The Lean Brand: How Brand Innovation Builds Passion,
Transforms Organizations and Creates Value
Jeremiah Gardner; Brant Cooper
Growth Hacker Marketing: A Primer on the Future of PR, Marketing and Advertising Ryan Holiday
Lean Analytics: Use Data to Build a Better Startup Faster (Lean Series) Alistair Croll; Benjamin Yoskovitz
Lean B2B: Build Products Businesses Want Étienne Garbugli
Lean Branding Laura Busche
Lean Customer Development: Building Products Your Customers Will Buy Cindy Alvarez
Lean Enterprise: How High Performance Organizations Innovate at Scale (Lean) Jez Humble
Lean It: Enabling and Sustaining Your Lean Transformation Steven C. Bell; Michael A. Orzen
Little Bets: How breakthrough ideas emerge from small discoveries Peter Sims
Making Sense of Intellectual Capital: Designing a Method for the Valuation of
Intangibles
Daniel Andriessen
Management 3.0: Leading Agile Developers, Developing Agile Leaders Jurgen Appelo
Management Y: Agile, Scrum, Design Thinking &, Co.: So gelingt der Wandel zur
attraktiven und zukunftsfähigen Organisation
Ulf Brandes; Pascal Gemmer; Holger
Koschek; Lydia Schültken
Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next
Stage of Human Consciousness
Frederic Laloux; Ken Wilber
Running Lean: Iterate from Plan A to a Plan That Works (Lean) Ash Maurya
Scaling Lean: Master the Key Metrics for Startup Growth (aka Traction) Ash Maurya
Service Design for Business: A Practical Guide to Optimizing the Customer Experience Ben Reason; Lavrans Løvlie; Melvin Brand
Flu
Small Data: The Tiny Clues That Uncover Huge Trends Martin Lindstrom
Startup Growth Engines: Case Studies of How Today's Most Successful Startups
Unlock Extraordinary Growth
Sean Ellis

Title Author
Strategize: Product Strategy and Product Roadmap Practices for the Digital Age Roman Pichler
Ten Types of Innovation: The Discipline of Building Breakthroughs Larry Keeley; Helen Walters
The Four Steps to the Epiphany Steve Blank
The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail
(Management of Innovation and Change)
Clayton M. Christensen
The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators Clayton M. Christensen
The Innovator's Hypothesis: How Cheap Experiments Are Worth More than Good Ideas Michael Schrage
The Innovator's Solution: Creating and Sustaining Successful Growth Clayton M. Christensen
The Leader's Dilemma: How to Build an Empowered and Adaptive Organization
Without Losing Control
Jeremy Hope; Peter Bunce; Franz Röösli
The Lean Enterprise: How Corporations Can Innovate Like Startups Trevor Owens
The Startup Owner's Manual: The Step-by-Step Guide for Building a Great Company Steve Blank; Bod Dorf
This is Service Design Thinking: Basics-Tools-Cases Marc Stickdorn; Jakob Schneider
TOP 101 Growth Hacks: The best growth hacking ideas that you can put into practice
right away
Aladdin Happy
Traction: How Any Startup Can Achieve Explosive Customer Growth Gabriel Weinberg; Justin Mares
Value Proposition Design: How to Create Products and Services Customers Want Alexander Osterwalder; Yves Pigneur

CSSI - Corporate Innovation Workshop - Summary

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