innovation(digital october)

The Future of Innovation

Bill Reichert Managing Director

Garage Technology Ventures

The New Rules for Entrepreneurs

Digital October

June 30, 2011

Thanks, Digital October!

“The pace of innovation is accelerating at an exponential rate.”

“The cumulative knowledge of mankind is doubling every four years.”

-- Common Wisdom

The Pace of Innovation

If this were true …

n  My computer wouldn’t freeze

n  Cancer would be cured

n  Energy would be cheap and clean

n  I wouldn’t need to carry roubles.

The Pace of Innovation . . .

“The future ain’t what it used to be!”

-- Yogi Berra . . . Hint: It’s not about new ideas, and

it’s not about new technology

So, What Does the Future Hold?

“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man.” -- George Bernard Shaw

The Engine of Innovation

Reasonable or Unreasonable?

Top Ten New Rules

for Innovators

Future of Innovation

Old Rule: n  Create wealth

New Rule: n  Create value

1. Fundamental Objective

Old Rule: n  Brilliant leader

New Rule: n  Brilliant team

2. Driving Innovation

A Parable: n  The Optimist,

the Pessimist, and the Engineer

The Brilliant Team . . .

Old Rule: n  Craft a Mission Statement

New Rule: n  Create a Wow! Statement

3. Sharing the Vision

“The mission of {???} is to deliver superior quality products and services for our customers and communities through leadership, innovation, and partnerships.”

Mission Statements …

The essence of your value proposition . . .

n  Unique offering

n  Clear benefit

n  Advantage over alternatives

Wow! Statements . . .

n  Fedex: The only solution if you need to get it there overnight

n  Simply Hired: More job listings than any other site on the planet

n  MiaSole: The world’s most efficient and most cost effective thin film solar panels

Wow! Statements . . .

n  What’s your Wow Statement ???

Wow! Statements . . .

Old Rule: n  Plan the work, work the plan

New Rule: n  Get going!

4. Management Style

Old Rule: n  New ideas and technologies

New Rule: n  “Stolen” ideas and technologies . . . applied in new ways

5. Foundation of Innovation

Old Rule: n  Measure ROI, . . .

New Rule: n  Measure customer delight, . . .

6. Business Metrics

Old Rule: n  First mover advantage

New Rule: n  Fast adaptor advantage . . . . . . IBM, Microsoft, Oracle,

Google, Facebook, Apple

7. Competitive Advantage

7. Competitive Advantage . . .

Flatbush National

Bank

Old Rule: n  Build it and they will come

New Rule: n  Everyone sells

8. Marketing Strategy

Old Rule: n  The pace of change is

accelerating

New Rule: n  Change takes time

9. Pace of Change

Actual progress is slower than we thought: n  Mobile payments n  Batteries n  Software n  Bandwidth n  Medicine n  Transportation n  Television.

Pace of Change . . .

Old Rule: n  Technology drives innovation

New Rule: n  People trump technology

10. Source of Innovation

1.  Focus on value 2.  It’s a team sport 3.  Craft a Wow! statement 4.  Don’t just plan, get going! 5.  Steal good ideas 6.  Measure customer delight 7.  Be a fast adaptor 8.  Make everyone customer focused 9.  Be realistic about pace of adoption 10.  People trump technology

Top Ten New Rules for Innovators

New Rules for Innovators

For questions, comments, or slides:

reichert@garage.com

Resources: §  Garage website: www.garage.com §  Art of the Start, the classic book

The Art of Going Global

How to Increase the Likelihood that You Will Achieve World Domination

1.  Learn how to sell

2.  Pick the right geography

3.  Dedicate your team

4.  Find the right partners

5.  Make new mistakes

The Art of Going Global

n  Elena Masolova

n  Nick Puntikov

n  Aynur Abdulnasyrov

n  Marc Burch

n  Bill Reichert

The Art of Going Global

The Art of Attracting Resources When Going Global

How to Increase the Likelihood that You Will Achieve World Domination

Part II

1.  Understand your funding alternatives

2.  Get the right advisors

3.  Connect with funding sources early

4.  Put the right infrastructure in place

5.  Make new mistakes

The Art of Attracting Resources

n  Andrey Kazakov

n  Pavel Bogdanov

n  Boris Ryabov

n  Marc Burch

n  Bill Reichert

The Art of Attracting Resources

The Art of Going Global

How to Increase the Likelihood that You Will Achieve World Domination