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Value Creation LU INNOVATION SYSTEM SVEN OLSSON 2015-03-04

Disposition 2015-03-04 VCF WORKSHOP

1.  Introduction 2.  Business Plan, 5 disciplines 3.  Presentation training, NABC

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What is a good idea?

»  Innovative

» Commercial potential

» Patentable

» Goods or Services?

» Hi scientific level

» Proximity to the Market

» Entrepreneur

Not very Important

Very important

Not very Important

Both!

Not Important

An advantage

Can join later © LU Innovation 2015, SOL

Everything starts with an idea •  Nano robots that clean blood vessels

•  Car tires that never wear out

•  Powder that eliminates contaminations and salt from water

•  Activated nano particles that eliminate virus

•  Bacteria that produce snow

© LU Innovation 2015, SOL

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Communicating

Your Idea If you don’t communicate your idea to others

You don’t have anything

© LU Innovation 2015, SOL

Business Plan

Market analysis

Market plan

Business concept

Business Idea

Financing

Production

Organization

Economy

© LU Innovation 2015, SOL

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Business plan

Business plan development Must be done in interaction with customers!

Concept Innovation

plan Venture

plan Business

plan

Champion NABC Value propostion Goal: POC Validation by customer Verification funding

Team Value Chain GTM plan Business model Goal: First investment

Inventor Idea Invention

Staff the company Process Production Goal: Commercialize

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Why do we need a business plan?

» Describe goals internally, externally

» Answer all kinds of questions

» Different target audience

» Dynamic document

» Helps in the decision-making process

Writing a business plan, makes you think through the business idea thoroughly.

© LU Innovation 2015, SOL

Five disciplines of innovation

1.  Important customer needs

2.  Value creation, NABC

3.  Innovation Champion

4.  Innovation Teams

5.  Organizational alignment

=> Success

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Discipline 1: Important customer needs

»  Important, not interesting

» Customer need, not customer wants

» Sense of urgency

Interesting ideas

Important needs

Curtis Carlson:

”Selecting an important unmet customer and market need at the right time is the critical starting point for all success.”

Innovation The Five Disciplines for …

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Discipline 2: Value creation

» Who defines value?

THE CUSTOMER!

NABC

A method developed by SRI to develop a value proposition.

Value proposition A compelling answer to the question: -  “Why will we win?” -  “Why will we succeed?”

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Discipline 3: Innovation Champion

» Drives the Value Creation process

» Assembles and motivates the Innovation Team

» Perseveres and drives to success

•  Fail quickly to succeed sooner •  Ask for ideas before asking for resources •  Listen and learn •  Surround yourself with enthusiastic volunteers •  Thank the thinkers; praise the participants •  Iterate

Discipline 4: Innovation team

» Different personalities

» Unique, complementary skills

» A shared strategic vision

» Shared rewards

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Discipline 5: Organization Alignment

» Align the team for Success

» Align the team with the innovation’s goals

» … and with the organization’s goals

Five disciplines of innovation

1.  Important customer needs

2.  Value creation, NABC

3.  Innovation Champion

4.  Innovation Teams

5.  Organizational alignment

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Presenting your idea 2015-03-04 SVEN OLSSON

Pitching the idea » Before you write a Business play

»  … or a project plan

» You need to pitch your idea to others

» … partners, investors, customers ….

© LU Innovation 2015, SOL

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The decision process » First an emotional decision… » …then ”Cognitive motivation”

» Nano robots that clean blood vessels

» Car tires that never wear out

» Powder that eliminates contaminations and salt from water

» Activated nano particles that eliminates virus

» Bacteria that produce snow

» The Elevator Pitch © LU Innovation 2015, SOL

The elevator pitch » Limited amount of time

» Seize the opportunity when it comes

» Create interest

» Communicate the essentials

» Give an easy-to-remember summary

© LU Innovation 2015, SOL

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Communicating what ? » Business ideas

– Customers

–  Investors

» Applying for funds

» Making a scientific speech

» Applying for a job

» …

© LU Innovation 2015, SOL

The Elevator Pitch

The Elevator Pitch – three parts

Hook

Close

Core

The Hook - Create interest: Ex. “Are you having trouble hearing? You are not alone.” “More than two thousand ideas have been patented for new mousetraps and only two are really used.” Tell a story © LU Innovation 2015, SOL

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The Elevator Pitch The Core - your Value Proposition

Hook

Close

Core N B C A The Close - What is the request ? A new meeting? Funding? Additional partners? A reference to another person? …?

© LU Innovation 2015, SOL

NABC

»  Important Need

– What problem do we solve ?

– Define the playing ground, state of the art

– Provide facts, scientific background

» Our unique Approach

– How do we solve the problem ?

– What is our approach for addressing the need

© LU Innovation 2015, SOL

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NABC

» Benefit per cost

– What is the user benefit ?

– What is the superior customer value ?

– How does it compare to the cost ?

» Competition and alternatives

– Who are the competitors ?

– What alternatives are available ?

– Now ? In the future?

© LU Innovation 2015, SOL

© LU Innovation 2015, SOL

Pitfalls »  Do not concentrate on the approach

–  nAbc

–  NabC

»  Do not just say “faster”, “cheaper”, “better”

–  Be specific and quantitative

–  If you don’t know, guess - take a “SWAG”

»  Do not forget the Close

–  What do you want to achieve ? Next step ?

»  Iterate, iterate, iterate … N: What the world needs is a little red wagon A: Our approach is to build a little red wagon B: The benefits are that we will have a little red wagon C: There is no competition, since our wagon is a nice

shade of red.

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Creating value

» You define you project (what not to do)

» You learn how to present

– What is essential and not

– What works and not

» You will be prepared for ”odd” questions

» You learn how people react

Different perspectives

» Green hat Positive feedback

» Red hat Suggestions for improvement (no criticism!)

» Glasses Eye of the customer

» White hat Investors view

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Giving or Taking Energy

» There are persons that make you lose all energy

» … others that give you energy

» How do I become a person that gives energy ?

Hints

» Mention the positive things – there is always something

» Bring it home to you

» Don’t use “but”

– Use “and” but

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A process for training

» Pitch 4 minutes, NABC

» Feedback

– Positive, Improvements

– Different perspectives

– Only listen (No defence)

» Do it again

That’s it