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Isaac Newton,Yogi Berra, and Marcia Brady
A Tale of Innovation in Corporate America
Joe KleinwaechterVice President, Innovation & DesignWorldpay
“Innovation almost never fails due to a lack of creativity. It’s almost always because of a lack of discipline.”
Ten Types of Innovation, Nagji, et.al.
“An object at rest tends to stay at rest.An object in motion tends to continue in the direction in which it is currently moving.”
Newton’s First Law
Your
tur
n What is innovation?
The
Dev
elop
men
t Cy
cle
Natureabhors a vacuum.
Aristotle
The inertia of the present prevents us from servicing our future.
Problem Statement:
Creativity is innate and natural.
Innovation is an unnatural act….
…that requires a method and
discipline
Horizon 1
Horizon 2
Horizon 3
The
3 H
oriz
on M
odel
Accu
mul
ated
Rev
enue
Time
0-12 months 12-36 months 36-72 months
Horizon 1
Hor
izon
10-12 months
Maximize Economic Return
Trying to Maximize ROI Dominate market share Dominate wallet share
But you lack… Opex
Horizon 2
Hor
izon
212-36 months
Become a Growing Concern
Trying to Find a validating group of partners Increase sales velocity Cross the chasm
But you lack… Time
Horizon 3H
oriz
on 3
36-72 months
Create a Category
Trying to Find a meaningful sponsor/partner Create PR buzz
But you lack… Capex
Gro
wth
/ M
ater
ialit
y M
atri
xHigh
GrowthLow
Growth
Material
NonMaterial
BA
CD
Growth Mature
Emerging Declining
Growth: Low=0-9% High=15%+Material = 5%+ of Total Revenue or Profits
Hor
izon
Mov
emen
t High Growth
Low Growth
Material
NonMaterial
BA
CD
Horiz
on 2
Horiz
on 0
Horizon 1
Horiz
on 3
Hor
izon
Res
ourc
e As
sign
men
ts
1
2
3
70%
20%
10%
Model to be a Sustained Innovator
In theory, there is no difference between theory and practice.
But in practice, there is.
Yogi Berra
2010
Com
pani
esHigh
GrowthLow
Growth
Material
NonMaterial
BA
CD
Microsoft, Intel, IBM, Oracle, HP, SAP, Dell
Growth: Low=0-9% High=15%+Material = 5%+ of Total Revenue or Profits
Apple, Google, NetApp, Cognizant, Sybase, Cisco
Hor
izon
Mov
emen
t High Growth
Low Growth
Material
NonMaterial
BA
CD
Horiz
on 2
Horiz
on 0
Horizon 1
Horiz
on 3
It takes many more resources to generate $1
of revenue in H2 than in H1.
Real
ity
of R
esou
rce
Assi
gnm
ents
1
2
3
48%
33%
19%
Sustained Innovators
70%
20%
10%
Theory
90%
8%2%
Most non-SI
Let’s talk about why that is…
Reco
mm
ende
d Re
adin
g *The Alchemy of GrowthMehrdad Baghai
*Escape VelocityGeoffrey Moore
*Managing the Innovation PortfolioHarvard Business ReviewMay 2012
*Transformational Growth Through InnovationResearch & Technology Executive Council2010