Everybody is talking about innovation, but the truth is that innovation in large organizations doesn’t really work. There are extremely powerful forces who work against innovation. In this presentation, I will review the challenges of innovation in a large organization. Why is it so hard and what are the shortcuts you should avoid? I will also present the HP Software Innovation case study - how we built a lean innovation machine.

1. How to Build an
Innovation Funnel in
Large Organizations
Tal Atzmon

2. About myself
Passionate Product guy
Worked at Startups and Enterprises
Lecturer
Startup mentor
In the past 2 years, HP Software Innovation

3. Today I will talk about
• The challenges in implementing innovation
in a large organization
• The HP Software Innovation case study

4. Challenge 1:
Organizations are
Killing Innovation

5. Large organizations have
optimized to do something
in the most efficient way.
When someone in the
organization suggests a
new direction, the entire
organization starts working
against the idea.
If everyone is measured on
resource efficiency, then
Innovation is perceived as
distraction.

6. Challenge 2:
Executives are
Looking for Shortcuts

7. The constant pressure to
look for the company’s
next raising star, puts
Executives under a lot of
pressure.
This pressure is causing
them to look for shortcuts
in Innovation.

8. Shortcut #1:
Innovation Events
Hackathons are
great, but what
happens the next
day?
Do the winning
ideas have a chance
to succeed?

9. Shortcut #1:
Innovation Events
Organizations
should create a
Credible Innovation
Platform

10. Shortcut #2:
Innovation should
be Massive
Betting on a
massive innovation
is a huge risk.
Most companies are
not Apple or Google

11. Shortcut #2:
Innovation should
be Massive
Organizations
should focus on
Low Cost
Experiments

12. Shortcut #3:
Innovation is
Invention
Handing the innovation
task to a small elite
group capable of
inventing technology,
reduces the amount of
new ideas

13. Shortcut #3:
Innovation is
Invention
Organizations
should encourage
Every Employee to
Innovate

14. What is a Low Risk Innovation?
What should organizations innovate around, in
order to reduce the risk and cost of Innovation?
• Leveraging an existing technology to a new product
• Upsell existing customers
• Leveraging an existing technology to a new market

15. HP Software Innovation
How we built a lean Innovation
machine

16. Focusing on the following principles:
Credible Innovation Platform
Low Cost Experiments
Every Employee Should Innovate

17. IDEATION
INCUBATION
SEED
GROWTH
• 3 months period
• Every employee can submit an idea
• Online forum
• Interact and get feedback
Innovation Funnel

18. IDEATION
INCUBATION
SEED
GROWTH
• Validate Problem/Solution fit
• 10% of their time (½ a day a week)
• Pitch to the Innovation Council
Innovation Funnel

19. IDEATION
INCUBATION
SEED
GROWTH
• Validate Product/Market fit
• R&D and UX resources
• Build an MVP
Innovation Funnel

20. IDEATION
INCUBATION
SEED
GROWTH
• Handover to the business
• Provide guidance
Innovation Funnel

21. IDEATION
INCUBATION
SEED
GROWTH
Lean Experimentation Funnel
HighCost………..…LowCost
• Fail Fast,
Fail Cheap
• This operation
needs management
and attention

22. IDEATION
INCUBATION
SEED
GROWTH
How do you manage
such an operation?
• The Innovation process is a
Product
• Customers are the
organization employees
• Your goal is to Acquire,
Activate and Retain
customers
Managed Innovation Funnel

23. IDEATION
INCUBATION
SEED
GROWTH
Acquire customers
• Systematic email marketing campaigns
• Targeted email campaigns
• Review the ideas
• Organize idea sourcing events
• Gamification system
Managed Innovation Funnel

24. IDEATION
INCUBATION
SEED
GROWTH
Activate / Retain customers
• 16 weeks program
• Training
• Lean startup
• Interviewing customers
• Success criteria
• 3 customers who confirm the
problem
• Feasible go-to-market
• Prepare for the Council (VC)
Managed Innovation Funnel

25. IDEATION
INCUBATION
SEED
GROWTH
• Executives attend the meeting
• Opportunity to hear new ideas
• Low risk decisions
• Visibility to executive management
Managed Innovation Funnel

26. IDEATION
INCUBATION
SEED
GROWTH
Retain / Referral customers
• Test company customer’s interaction
and satisfaction
• Executive mentorship
Managed Innovation Funnel

27. IDEATION
INCUBATION
SEED
GROWTH
• Periodic meetings with the business
unit
Managed Innovation Funnel

28. IDEATION
INCUBATION
SEED
GROWTH
Past 2 Years Results
600
110
18
11

29. “How can I build an
innovation funnel in
my organization?”
One thing YOU can start today

30. The Core of Organizational Innovation
GROWTH
SEED
INCUBATION
IDEATIONIDEATION
SEED
GROWTH
Show your management
you can reduce the risk
of innovation
• Focus on solving one painful
problem
• Gather customer feedback
• Pitch it to your managers –
reduce their decision making
risk
• Repeat

31. “
Validate a Use Case,
Not a Platform

32. Thank You!
@talatzmon /in/talatzmon/
tal.atzmon talatzmon.me