Innovation&

Entrepreneurship

August 14th 2013,Journey 2 Utrecht@fnauta

Innovation EcosystemConstruction Worker

Political Assistant Amsterdam Deputy MayorCivil ServantCinemaTrendwatcherKnowledge LandPM OfficeConsultantProfessorClimate-KIC

Talent&

Knowledge

Business SmartMoney

GovernmentPolicy

Interaction

Talent&

Knowledge

Business SmartMoney

GovernmentPolicy

Interaction

1891 1941

1951

1939 1958

Program

9:00 - 10:30 What is innovation?

10.45 - 12.00 What is a startup?

12.00 - 13.30 Lunch & discussion with entrepreneurs

13.30 - 15.15 Introduction Negotiations

15.30 - 17.30 What is a Business Model?

17.30 - 18.30 Incubators visit, meet & greet entrepreneurs and drinks & bites

0This is a

revolutionary time

Innovation is brutal

Fisker $ 1.200 M

Better Place $ 850 M

A123 350 + ? M

Solyndra 1.000

Miasole 450

VPG 400

Coda 320

1Innovation

What is innovation?

"Innovation is creativity with a job to do"

John Emmerling

What is innovation?

innovate |ˈin"ˌvāt|verb [ no obj. ]make changes in something established, esp. by introducing new methods, ideas, or products: the company's failure to diversify and innovate competitively.• [ with obj. ] introduce (something new, esp. a product): innovating new products, developing existing ones.

What is innovation?

People creating value through the implementation of new ideas

Herman D'hooge, Intel

What is innovation?

People creating value through the implementation of new ideas

Herman D'hooge, Intel

The problem with innovation:

the best ideas don't win!

Five success factors

1. Comparative advantage

2. Compatibility

3. Complexity

4. Testability

5. Visibility

Five success factors

1. Comparative advantage

2. Compatibility

3. Complexity

4. Testability

5. Visibility

Exercise

Exercise

• Groups of 4 to 5 students

• Analyse EV and E-plant with Rogers 5 factors

• Some short group presentations after break

Five success factors

1. Comparative advantage

2. Compatibility

3. Complexity

4. Testability

5. Visibility

Do people resist change?

Some people love change

2%innovators

14%early adopters

34%early majority

34%late majority

16%laggards

source: Everett Rogers, 2001

...others not so much

Nerds

Visionairy

Pragmatic Conservative

Sceptic

{

'Valley of Death'

Further reading

• Rogers - Diffusion of Innovations

• Moore - Crossing the Chasm

Dynamics ofInnovation

Innovation is a puzzle1873 1882 1899

Tablet Computer

GridPad

Innovation is a puzzle

1989 1996 2001 2010

2007

Further reading

• On the Origin of Species - Darwin

• Mastering the Dynamics of Innovation -

Utterback

• Adapt - Tim Harford

2Startups

What is entrepreneurship?

Entrepreneur(ial)

~ORIGIN early 19th cent. from French, from entreprendre ‘undertake’

~one who organizes, manages, and assumes the risks of a business or enterprise

-ial: ~not afraid to undertake a challenge

Entrepreneurship

The process by which individuals – either on their own or inside organizations – pursue opportunities without regard to the resources they currently control

Stevenson, 1989

What is a startup?

• Temporary organization

• designed to search

• for a repeatable

• and scalable business model

Blank, 2012

What is a startup?

A very risky and extremely powerful innovation tool

Nauta, 2013

The goal of a startup

• Total• global• domination• in your chosen• market niche

Ken Morse

Very Risky...

Fisker $ 1.200 M

Better Place $ 850 M

A123 350 + ? M

Solyndra 1.000

Miasole 450

VPG 400

Coda 320

It's how all big companies start

IBM

Entrepreneurship

The process by which individuals – either on their own or inside organizations – pursue opportunities without regard to the resources they currently control

Stevenson, 1989

IBM & startup

Big vs Small

What is best age to become entrepreneur?

Toshiba T-1100:

Intrapreneurs

Excellent resources

• paulgraham.com/articles.html

• WIRED Y-combinator article

• www.steveblank.com

• techcrunch.com

• FastCompany.com

• WIRED.com

• www.businessmodelgeneration.com

Excellent resources

• blog.cleantech.com

• ecorner.stanford.edu

- Stanford Technology Ventures Program podcast (also video)

• www.ted.com

Further reading

• Startup Owners Manual - Steve Blank

• Founders at Work - Livingston

• Raising Verture Capital for Serious

Entrepreneurs - Berkery

3Everything isnegotiable

Do's

• Ask questions, ask questions, ask questions

• Repeat what the other party said

• Make sure you're not in a hurry

• Be friendly

• Say ', and...' instead of ', but...'

• Increase complexity

Dont's

• Argue

- 'Yes, but...', 'With all due respect...', 'I hear what you say...'

• Reduce complexity

• Apply pressure

• 'In between deal'

• Say yes

• Say no

4Business Model

Definition

A business model describes the rationale of how an organization:

• creates

• delivers

• and captures value

What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

For whom are we creating value?Who are our most important customers?

What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?

What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?

What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

Day Month Year

No.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Value Propositionin 7 steps:

1. FOR [the ideal customer]

2. WHO [has this specific pain or problem]

3. OUR [product name]

4. IS A [product category]

5. THAT PROVIDES [this main benefit and reason to buy]

6. UNLIKE [the primary alternative or competitor]

7. OUR PRODUCT [describe the key product features]

Entrepreneurship Program

Try

• Journey

• Tesla

• Solyndra

• E-plant

Intermezzo

How to have impact

Grit!

'Grit is stamina and perseverance for very long term goals'

'Grit is living life like it's a marathon, not a sprint'

6How we

can work together

How we can work together

• Interships at Climate-KIC startups

• Interships in China, India and USA

• ARPA-E conference 2014

• Do a startup!!!

Interships

ShanghaiBengaluruSilicon Valley

Boston Silicon Valley

I wish you lots of griton your Journey...

@fnauta