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Lean ScaleUP - Frank Mattes - Coggle Diagram
Lean ScaleUP - Frank Mattes
Emerging Business Opportunities
85 – 90% van de Emerging Business Opportunities komt niet voorbij de “Minimum Viable Product” fase
within proven existing business model success rate is 40-60%, outside core this is 10-15%
smaller companies are not significantly better at building new businesses than large corporates
Why innovation is a leadership priority
innovation excellence correlates with business success: higher revenue and margins
insurance against irrelevance
industry boundaries blur
future value pools emerge
improve job-to-be-done
existing business model loses relevance
service-centered business models gain in importance
sustainability becomes as essential as financial viability
potential solutions
Startup acquisisition:
only 1 out of 12 companies consider their relations with startups to be very satisfying
M&A:
failure rate between 70-90%
Build business-Building capabilities
: statistically the best of organic growth options
Creating new business
Leverage unfair advantage
Intangible assets
operational and functional capabilities
advanced expertise and know-how
growth-enabling capabilities
priviliged assets such as brand and reputation
technology and IT
transactional data
Metrics to reveal business building problems
what is financial impact of past innovation activities launched 3-5 years ago?
how high is the core's management attention for innovation?
How deep is the Valley of Death after MVP?
Does innovation have the proper distance from Core?
Root cause Scaling up problem
One company, 2 systems
Journey through white space
operating model needs to be a mix between efficiency and agility model
organizational home
Validation of organizatiional context is missing in startups validation: Contextuality
present along entire journey:
basic validation, why pursue this innovation?
validating worth to be scaled : which corporate assets to be leveraged
validating - ready to be scaled: is innovation and ties to Core scalable?
transitioning from validation to Scaling up
Scaling up: how and when should corporate assets be leveraged
Other causes
Incompatible governance and KPI's
a different time horizon, a different pace
scaling up requires special people
no solid model that can be taught
organizational inertia
limited access to corporate assets and two-front war
no common view on the elephant in the room
Summarized:
INEFFECTIVE METHODOLOGY
DUAL LEADERSHIP INEFFECTIVE
INEFFECTIVE COLLABORATION BETWEEN CORE AND NON-CORE
Organizational structure
ambidextrous organisation: exploit and explore separated
dual operating model: switching from one to other as context requires
Green space = reshaping the core
PRE SCALING
Worthy to be scaled
Ready to be scaled
Pressure test
Develop initial scaling up plan
ensure proper governance and effective funding apparatus
build an outstanding execution team
Identify docking points to the company
Establish the collaboration model
Framework
Track 1 Customer and Value
Customer and problem
Value Proposition
Value Creation
Value Delivery and value capture
Value enablers (ecosystem and platforms)
Value potential (market size and attractiveness)
Track 2 Technology
Prototype
Minimum Viable Product
Minimum Marketable Product
Track 3: Corporate Context and Business Model
Business model, commercial model and financials
Corporate Context
Risk, legal and regulatory issues
Track 4: Capabilities and Organisation
Cabilities and people
Operating model and organization
Health, safety, security, environment, cybersecurity
Stages in Pre Scaling
Stage 1 Business Foundation: Validated business model
Stage 2 Business Strategy: creating an MVP and a validated winning strategy
Size and attractiveness of Service Available Market (3-5 yrs)
identify critical positions to seize
robust IP basis
make/buy/partner choices
1/3/5 yr growth strategy
Stage 3: Business Design
Minimum marketable product including reliable and scalable business, with first customer using in own environment
test if innovation can cross the chasm
endpoint is product market fit
output is detailed business model, reliable business case, plus a preliminary Scaling up budget
Stage 4: Transition to Scaling up
PATHWAYS
inside existing BU
inside New Business BU
Dedicated Scaling up function
Spin out (Self)
Spin out (Venture Builder)
Activities in the "Green zone"
Ground Control
Build trust between core and non core
develop and maintain high bandwith communication
facilitate translation of KPI's from one side to the other
facilitate precise and timely definition of boundary conditions for the scale up
facilitate capability exchange
organize core resources to resolve scale up issues
8 success factors p. 186
Be clear on why they are working with corporate ventures
Effective collaboration model
Lean Collaboration Governance in place
Access to corporate assets is arranged
Instilling the right mindset on a broad base - not just 1 person
Embrace the differences corporate/ startup
Communicate as equal partners
Accept failure
Formula: Success = Corporate context(embedded) x Assumptions(clear) x Launch (capability) x Excellence in the launched bus operations
Products fail due to
Value Prop does not fill a significant gap
product does not meet customers' need in unique, compelling, defensible way
product and VP do not provide enough benefit relative to switching cost or competitor solutions
marketing, sales and distribution efforts do not reach the beachhead markets
SCALING UP
Industrializing the Product
Feature work
Growth work
Product/market fit expansion work
Scaling work: scalable, high-performing, solid and secure platform that allows taking on new levels of feature, growth and product/market-fit expansion work.
Making the market
Chasm, beachheads and bowling alleys
Growing the organization