tilting at windmills: intrapreneurship in large organizations from lean ux nyc 2014

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How to innovate in large organizations with a three-maxima model of management. Looks at Lean Startup and other business models (Innovator's Dilemma, Three Horizons) and why large organizations resist change. Considers the impact of technology that makes small batches possible, and why this in turn makes experimentation easier, shifting the key competitive advantage from scale to cycle time. Presented on April 10 at Lean UX NYC

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  • Tilting at Windmills Innovation in large organizations. Photo by Echiner on Flickr. Used under a creative commons license. https:// www.ickr.com/photos/decadence/249922560 Thursday, April 10, 14
  • Back in 2008. Thursday, April 10, 14
  • Today. Thursday, April 10, 14
  • That escalated quickly. Thursday, April 10, 14
  • When youre a startup your goal is to nd a sustainable, repeatable business model. Thursday, April 10, 14
  • When youre a big company, your goal is to perpetuate one. Thursday, April 10, 14
  • Instead of: Companies are what they repeatedly do. Thursday, April 10, 14
  • How about: Organizations that do things repeatedly are companies. Thursday, April 10, 14
  • Once, this was all about scale. Thursday, April 10, 14
  • How to perpetuate something. Photo by Kamal Hamid. Used under a creative commons license. https:// www.ickr.com/photos/evergreenkamal/395448039 Thursday, April 10, 14
  • Daniel Craig McCallum. Thursday, April 10, 14
  • Hows that working out for you? Thursday, April 10, 14
  • F500 lifespan history Thursday, April 10, 14
  • Fortune 500 Life Expectancy (http://csinvesting.org/2012/01/06/fortune-500-extinction/) 1950 2010... 75 years 15 years Thursday, April 10, 14
  • Fortune 500 Life Expectancy (http://csinvesting.org/2012/01/06/fortune-500-extinction/) 1950 2010... 75 years 15 years Growth by entering a new business Corporate Strategy Board 95 % fail 99 % fail Clay Christensen Thursday, April 10, 14
  • The innovation problem isnt new. Picture by James Whatley on Flickr. Used under a Creative Commons license. https://www.ickr.com/photos/whatleydude/6202872135 Thursday, April 10, 14
  • Companies die because they fail to move to new business models. Thursday, April 10, 14
  • Clay Christensen, The Innovators Dilemma CostperMB $1000 $100 $10 $1 Time The Innovators Dilemma Thursday, April 10, 14
  • Clay Christensen, The Innovators Dilemma CostperMB $1000 $100 $10 $1 Time 14 M ainfram e The Innovators Dilemma Thursday, April 10, 14
  • Clay Christensen, The Innovators Dilemma CostperMB $1000 $100 $10 $1 Time 14 M ainfram e 8 M inicom puter The Innovators Dilemma Thursday, April 10, 14
  • Clay Christensen, The Innovators Dilemma CostperMB $1000 $100 $10 $1 Time 14 M ainfram e 8 M inicom puter 5.25 D esktop The Innovators Dilemma Thursday, April 10, 14
  • Clay Christensen, The Innovators Dilemma CostperMB $1000 $100 $10 $1 Time 14 M ainfram e 8 M inicom puter 5.25 D esktop 3.5 N otebook The Innovators Dilemma Thursday, April 10, 14
  • $1000 $100 $10 $1 Time 8 5.25 Technologies outstrip what the market needs, driven by feedback from the best current customer. Thursday, April 10, 14
  • $1000 $100 $10 $1 Time 8 5.25 Technologies outstrip what the market needs, driven by feedback from the best current customer. High end customer Thursday, April 10, 14
  • $1000 $100 $10 $1 Time 8 5.25 Technologies outstrip what the market needs, driven by feedback from the best current customer. High end customer Low end customer Thursday, April 10, 14
  • $1000 $100 $10 $1 Time 8 5.25 The new market has different criteria for success, which are uninteresting to incumbents. Thursday, April 10, 14
  • $1000 $100 $10 $1 Time 8 5.25 The new market has different criteria for success, which are uninteresting to incumbents. Storage capacity Thursday, April 10, 14
  • $1000 $100 $10 $1 Time 8 5.25 The new market has different criteria for success, which are uninteresting to incumbents. Storage capacity Portability Thursday, April 10, 14
  • Amazon Web Services and the server value network Server computing Density Heat GHz MIPS Capex, nancing, TCO, ROI CIO, enterprise IT Value criteria Money Buyer Thursday, April 10, 14
  • Amazon Web Services and the server value network Server computing Density Heat GHz MIPS Capex, nancing, TCO, ROI CIO, enterprise IT Value criteria Money Buyer Cloud computing Instances Objects Spinup time Scaleout Opex, demand, time to result CTO, coder, app owner, line of business, startup Thursday, April 10, 14
  • HP and Dell missed the disruption and the change in the value network. $1000 $100 $10 $1 Time Thursday, April 10, 14
  • HP and Dell missed the disruption and the change in the value network. $1000 $100 $10 $1 Time Physical servers: MIPS, heat, density, cost per cycle. Sold to CIOs Thursday, April 10, 14
  • HP and Dell missed the disruption and the change in the value network. $1000 $100 $10 $1 Time Physical servers: MIPS, heat, density, cost per cycle. Sold to CIOs Cloud computing: Opex cost, time to spin up, scaleout, objects stored. Sold to developers, marketers, startups Thursday, April 10, 14
  • HP and Dell missed the disruption and the change in the value network. $1000 $100 $10 $1 Time Elastic resources mean we can scale up to huge, and shrink costs when not in use. Thursday, April 10, 14
  • YOU ARE HERE This is a problem of local maxima. Thursday, April 10, 14
  • YOU ARE HERE LOCAL MAXIMUM OPTIMIZATION OF CURRENT METRICS Thursday, April 10, 14
  • YOU ARE HERE GLOBAL MAXIMUMINNOVATION WITH NEW RULES Thursday, April 10, 14
  • YOU ARE HERE SHORT-TERM INVESTORS HATE GOING DOWNHILL Thursday, April 10, 14
  • By trying to innovate in a big organization, you are going against its mandate to perpetuate an existing business model. Thursday, April 10, 14
  • You are a pariah. Thursday, April 10, 14
  • You are a pariah. Bad listener: Wilfully ignore feedback from your best customers. Thursday, April 10, 14
  • You are a pariah. Bad listener: Wilfully ignore feedback from your best customers. Cannibal: If successful, destroying existing revenue streams. Thursday, April 10, 14
  • You are a pariah. Bad listener: Wilfully ignore feedback from your best customers. Cannibal: If successful, destroying existing revenue streams. Job killer: Automation & lower margins are your favorite tools. Thursday, April 10, 14
  • You are a pariah. Bad listener: Wilfully ignore feedback from your best customers. Cannibal: If successful, destroying existing revenue streams. Job killer: Automation & lower margins are your favorite tools. Security risk: Advocate of transparency, open data, communities. Thursday, April 10, 14
  • You are a pariah. Bad listener: Wilfully ignore feedback from your best customers. Cannibal: If successful, destroying existing revenue streams. Job killer: Automation & lower margins are your favorite tools. Security risk: Advocate of transparency, open data, communities. Narcissist: Worry constantly about how youll get attention. Thursday, April 10, 14
  • You are a pariah. Bad listener: Wilfully ignore feedback from your best customers. Cannibal: If successful, destroying existing revenue streams. Job killer: Automation & lower margins are your favorite tools. Security risk: Advocate of transparency, open data, communities. Narcissist: Worry constantly about how youll get attention. Slum lord: Sell to those with less money, deviants, and weirdos. Thursday, April 10, 14

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