Pivot E-Book

Remy Arteaga

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 405

Veröffentlichungsjahr: 2013

Beschreibung

A proven approach to achieving entrepreneurial success in new corporate ventures and startups Every day, business and corporate startups take action based on assumptions. Yet these assumptions are based largely on guesswork that leads to everything from costly mistakes to the failure of ventures. Fortunately, there are ways to overcome these issues and excel in your business endeavors--and this book will show you how. Engaging and informative, Pivot provides entrepreneurs with practical guidance for achieving success in corporate ventures as well as new startups. Based on more than fifteen years of academic research and many more years of experience in business and corporate startups, this book skillfully addresses topics ranging from resources and organizational uncertainties to the scope and scale of new business opportunities. * Reveals how to successfully conceptualize new business opportunities, pivot as required to experiment with these opportunities, and accelerate to the marketplace * Captures the capabilities needed to quickly build a business by understanding and systematically reducing uncertainties from market landscape and technology to talent and organizational positioning * The digital component of this book includes a world-class strategic innovation methodology that is in demand from corporations worldwide Written with today's serious entrepreneur in mind, Pivot will provide you with the tools you'll need to get ahead of the competition and achieve consistent success.

Leseprobe

Table of Contents

Title Page

Copyright

Dedication

List of Trademarks

Acknowledgments

Introduction: Is There a Better Way?

Inspiration for the Book

How We Got Here

The Book Is Not…

How the Book Is Organized

Notes

Part One: The Tale of Two Entrepreneurial Worlds

Chapter 1: Pedal to the Metal

A Little History

Traditional Management Tools Fail Entrepreneurs

Why Startups Fail

Origins of the Pivot Methodology

Notes

Chapter 2: Innovation is Bringing Discipline to Chaos

Plant = Discovery; Pivot = Incubation; Propel = Acceleration

Innovation Defined in the Corporate Setting

It's All about Uncertainty

Notes

Chapter 3: The Corporate Entrepreneur

An Examination of the Definition

An In-Depth Look at Corporate Entrepreneurship Models

A Brief Look at Academic Research

A Look at Corporate Culture

Personal Experiences

Notes

Chapter 4: So, You Want to Be an Entrepreneur?

Swinging for the Fences

The Academic Side

Personal Experiences

Notes

Chapter 5: Entrepreneur and Corporate Entrepreneur: Framing the Perspectives

Comparing Entrepreneurs

Notes

Chapter 6: Discovery–Attractiveness of the Business Opportunity

Discovery Principles

Discovery and Open Innovation

Discovery Progression: Capturing Innovation Opportunities

The Discovery Toolkit in Brief

Plant Your Value Pitch: Making the Transition to Incubation with Your Opportunity Concept

Notes

Chapter 7: Opportunity and the Entrepreneur

Opportunity Recognition

Technology to Market Opportunity

The Challenge for Universities to Commercialize Technologies

The Value Proposition

The Positioning Statement

Notes

Chapter 8: Entrepreneur and Corporate Entrepreneur Perspectives: Pursuit of Opportunities

Getting from Idea to Opportunity

Attracting Attention

Note

Chapter 9: Incubation—Discipline Together with Chaos

Incubation Principles

Incubation and Living with Chaos: The Learning Plan3

Notes

Chapter 10: Early Market Engagement: Business Concept Options

Incubation Progression: Market Learning and Business Model

Market Development Considerations

The Incubation Toolkit in Brief

Learning Approach Value and Coaching Requirements

Pivot to Your Evolved Value Pitch: Making the Transition to Acceleration with Your Concept Proposal

Notes

Chapter 11: Business Experiments

Knowledge Construction

Define Assumptions

Define Markets

Define CTA and Analytics

Define Product

Note

Chapter 12: Validated Learning = Knowledge

Business Model

Start Executing Experiment

Execute: Product, Market Group, and Call to Action (CTA)

Execute: Assumptions and Analytics

Execute: Confidence, Results, and Knowledge Loop

Business Plan

Notes

Chapter 13: Entrepreneur and Corporate Entrepreneur Perspectives: Incubation and Hypothesis-Driven Learning

Learning Is the Antidote to Uncertainties

Learning How to Learn

Pivot Startup Methodology and Learning Plan

Making the Case for Investment

Chapter 14: Acceleration—Courage to Invest

Acceleration Principles

Acceleration and the Phase Gate Process

The Acceleration Toolkit

Propel Your Value Pitch: Making the Transition to Operations with Your Business Plan

Notes

Chapter 15: Preparing for Growth

The Startup Ecosystem

University Ecosystems

A Time to Scale

Notes

Chapter 16: Entrepreneur and Corporate Entrepreneur: The Challenges of Growth

The Ecosystem

The Laws of Diffusion and Resistance

Scaling

Balancing TMRO

About the Authors

Remy Arteaga

Joanne Hyland

About the Academic Contributing Authors

Professor Gina O'Connor

Professor Lois Peters

About the Companion Websites

Index

Cover Design: Paul McCarthy

Cover Image: © Getty Images / Paul Taylor

Copyright © 2014 by Remy Arteaga and Joanne Hyland. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data:

Arteaga, Remy, 1962-

Pivot : how top entrepreneurs adapt and change course to find ultimate success / Remy Arteaga and Joanne Hyland.

pages cm

Includes bibliographical references and index.

ISBN 978-1-118-55971-0 (cloth); ISBN 978-1-118-55997-0 (ebk);

ISBN 978-1-118-55984-0 (ebk)

1. New products. 2. New business enterprises. 3. Creative ability in

business. 4. Entrepreneurship. I. Hyland, Joanne, 1960- II. Title.

HF5415.153.A77 2014

658.4′063–dc23

2013020676

To all of those who have shared my dream of making a difference in our companies and the world, this book is for you—our collective wisdom of what innovation is and will be. I could not have written it without all the valuable learning experiences we have shared together for over 30 years. You are not just colleagues but friends, and I thank you. This book is also for Monique, my partner in business and in life, and Tara, our very much loved dog whom we almost lost in the final days of writing this book. Their love and support throughout the process have been unconditional; and, of course, I cannot forget Nikita, seizing every opportunity to be the center of attention. And for Dad, whom we did lose on July 31st, 2013. You are far better off where you are now. I know how proud you would have been to see the final product.

Joanne Hyland

To my beautiful wife, Barbi Bistrowitz, you inspire me every day with your smarts, and you have partnered with me on so many startups—this book could not have been written without your love and support. This book is also for my mom, Hilda, who instilled the entrepreneurship bug in me with crackers and cheese. I don't think I could have gotten through this book, much less this life, without my pets past and present; you will always have a space in my heart and mind. Not to be forgotten, to my dad, Pepe—this one's for you.

Remy Arteaga

List of Trademarks

1. Facebook® is a registered trademark of Facebook, Inc.

2. Big XYZ™ is a trademark of Bisart LLC.

3. Learning Plan™ is a trademark of rInnovation Group.

4. The Pivot Startup™ is a trademark of Bisart LLC.

5. Bill Me Later® is a registered trademark of Bill Me Later Inc.

6. Gorilla® glass is a registered trademark of Corning Inc.

7. Lotus™ glass is a trademark of Corning Inc.

8. MotionSense® is a registered trademark of Moen Incorporated.

9. Swiffer® is a registered trademark of Procter & Gamble.

10. NetActive® is a registered trademark of NetActive Inc.

11. Genesis Pad™ is a trademark of Innovation Genesis LLC.

12. SIGMA WATERHEATER™ is a trademark of Grundfos.

13. PayWithMe™ is a trademark of PayWithMe LLC.

14. Trade Shades™ is a trademark of Cory Goodenough and Jonny Rio.

15. Stage-Gate® is a registered trademark of the Product Development Institute.

16. Google Trends™ is a trademark of Google, Inc.

17. MySpace™ is a trademark of Myspace LLC.

18. Friendster® is a registered trademark of Friendster, Inc.

Acknowledgments

We would first like to acknowledge our academic contributing authors, Professors Gina O'Connor and Lois Peters, for their exceptional insights and commentaries in Chapters 5, 8, 13, and 16. We also appreciate their excellent feedback for guiding us in how to make each chapter clearer, more consistent, and have the right type of impact.

This book would not have been possible without the Rensselaer Polytechnic Institute (RPI) team's academic research and the two foundational books: Radical Innovation: How Mature Companies Can Outsmart Upstarts (Harvard Business School Press, 2000) and Grabbing Lightning: Building a Capability for Breakthrough Innovation (Jossey-Bass, 2008). These books provide the principles and inspiration for the Discovery, Incubation, and Acceleration (D-I-A) model being put into practice through our teaching, training, coaching, and consulting activities. Dr. Mark Rice has also been a source of inspiration from the beginning, starting at RPI, and then in collaboration with Babson College, while he was dean of the Business School.

We are similarly indebted to Jake Schonberger, Kyle Brody, Cory Goodenough, Jonny Rio, and Chase Darlington for letting us share their journeys through the startup process. The Pivot Startup methodology molds together ideas born of experience and research. The seed was first planted at General Motors, where a rising executive, Tim Costello, took the risk of recruiting a very brash young engineer, Remy, into the Methods team. Tim's insights on new product development and the results from the Methods team served as one of the inspirations for The Pivot Startup. Jacob Brix, a doctoral student from Denmark, also assisted with his keen insights on knowledge construction and innovation.

Special thanks to Jeff Hovis of Product Genesis. He contributed tools to make the Discovery and Incubation Toolkits even more robust. We have had a wonderful partnership over the years, become friends, and I (Joanne) look forward to many years to come. Over the past few years, we have developed another great partnership with the International Society for Professional Innovation Management (ISPIM), offering a good blend of academic theory with the practice, and a vehicle for getting the word out. Thank you, Iain and the rest of the ISPIM team, for sharing our passion about innovation.

For their direct contributions to this book, I would like to thank all my corporate colleagues and friends from Grundfos (Lars Spicker Olesen, Soren Bro, Jesper Ravn Lorenzen, Jesper Bagge Pedersen while at the Danish Technical University, Steve Pierson, and Arun Ramasamy); from Moen (Louise Quigley and Mike Pickett); and from NOVA Chemicals (Alan Schrob). As much as you have learned from us, we have learned from you.

Denmark became our incubator of sorts for progressing our thinking and tools. I would like to thank Hanne Arildsen for taking a chance in our early days and bringing our company and D-I-A model to Denmark while she worked at Danfoss, and I thank Stig Poulsen for carrying on the torch. Hanne and I met while I was teaching a segment on corporate venturing at MIT, thanks to Ken Morse. I extend thanks to Thomas Schafer and Rasmus von Gottberg (we also met at MIT) from Novozymes for seizing upon the importance of uncertainty reduction in new business development, and many others who made it work—Karolina, Helle, Marianne, Kristoffer, and Henriette, to name a few. Peter Bruun, Jacob Holst, and Peter Skat-Rordam at the Danish Technical University also believed in our model for new business creation, which we continue to teach today. We have worked together to evolve it to a world-class certificate program in entrepreneurial leadership. Lars Ib, at the Danish Business Institute, is also a believer and has made it an important module in his MBA curriculum. I thank Mads Prebensen for introducing me to Lars and bringing us to Grundfos. Henning Sandager, Thorbjorn Machholm, and Fei Chen (we met at Novozymes initially) have also played a key role in embedding the D-I-A mind-set in Grundfos through the leadership they provide. I also want to thank Allan Silfverberg and Martin Groth for being eager to learn and contribute great insights to our business based on their master's thesis. With these believers and our teaching at the Danish Technical University and the Business Institute, I am delighted we have had the opportunity to have such a great impact in a highly innovative country. There are many others, and you are in my thoughts.

It goes without saying that I have worked with a number of great companies in the United States and Canada in addition to Moen and NOVA Chemicals, such as Westinghouse with Joanna, Kate, Tom, Cenk, and John; Air Products with Ron, Martha, and Nancy; Kennametal with George; and Hewlett-Packard (HP) with Rich, to name a few. Each of you has added new dimensions to our thinking and twists on the D-I-A model. Finally, I would not even be writing this book without my Nortel Networks Corporation experiences. I want to thank my Business Ventures Group team and other colleagues who were a part of this venturing experiment. You were all important contributors to our success. I want to particularly thank Rene, Susan, and Garth for all you did to guide me in the years we were getting started; Jeff for our great partnership; and Pat for making us all more effective communicators. It was just not the right place and time for us to continue.

In 2001, if you had asked what we thought about systematizing what we do in an innovation tool platform, Gina and I would have said, no way. Well, here we are in 2013 doing it. Of course, we still have a few lingering questions and we are likely not completely there yet, but isn't that what learning is all about? So thank you all (those mentioned and in my thoughts) for being a part of the journey so far, and we hope you continue on this path with us.

I (Remy) am grateful to my students at RPI for having given me more than I ever gave them. Their enthusiasm, optimism, and intelligence energized me. I love them all and wish them only the very best as the move on to their careers. Some of the students at RPI took it upon themselves to challenge my thinking on entrepreneurship, including Arthur Ford, Ben Prager, Cory Goodenough, and Logan Shire. A special thank-you goes out to Sam Hagen of UpSmart.com for sitting through many meetings discussing startup methodologies. My time at RPI, as Entrepreneur in Residence and Program Director of the Severino Center for Technological Entrepreneurship, led to many of the insights in the book. The daily mentoring of university startups gave me the opportunity to observe the startup process over and over again. I am of course indebted to Dr. Gina O'Connor and Dr. Lois Peters for their guidance, mentoring, and support. They went from being my professors to becoming my friends—priceless.

The following experiences, in addition to many I could not fit here, helped form the tapestry of ideas in the book. First is my time as founder and COO at Extreme Interactive Media Inc.—my second startup. It was driven with a gunslinging approach to entrepreneurship, and due to extraordinary selflessness on the part of Al Isaacs, Barbi Bistrowitz, and “Freakboy” John Brodigan, we were able to successfully exit. Next, I had the chance to mentor some wonderful startups over the years, including PayWithMe, Vitalvio.com, Vulcan Technologies, Green Energy Efficiency Solutions (GEES), VirtuallyShow.com, and Synderela.com. Synderela LLC sticks in my mind, as it was the first fashion startup I ever mentored. The women at the startup, Nicole Petito, Susan Dimeo, and Yalenis Cepeda, spent countless of hours discussing ideas with me, and for that I am very grateful. Finally, my time as CEO of DualAlign.com taught me so many lessons about what to do and not to do with a startup. I am thankful to all the members of DualAlign LLC for their support and encouragement over the years.

Introduction: Is There a Better Way?

It was Friday morning, July 20, 2012, when Remigio Arteaga (Remy, as he is known to his friends) and Joanne Hyland were meeting in Troy, New York, to discuss their new cloud innovation platforms. As the meeting entered its fourth hour, Remy began to think back to his third startup, Ironsilk—a web platform that enabled the delivery of premium content to members. It was launched in 2001, a year after Remy's second startup was acquired. Remy thought back to how excited he was then. Like so many startups, Ironsilk started with a detailed business plan covering everything from business model to five-year financial projections. Remy spent considerable time working on Ironsilk's business plan. Today, premium content can be found everywhere, but at the time it was an unproven business model. In fact, the debate on whether to restrict content to registered members was still a few years away.

Remy's idea was to have Ironsilk deliver premium content from video game websites to fans of such websites. In return for viewing free premium content, fans would opt in to receive third-party e-mail advertisements. By opting in for e-mail advertisements, fans' e-mails became a valuable asset that was then shared with third-party advertisers for a fee. This fee was then split between Ironsilk and the video game website owners. With the success of his previous venture and a strong business plan at his back, Remy put pedal to the metal and quickly developed and launched Ironsilk. Ironsilk grew quickly and in the first six months had roughly 500,000 members. You might think that this is the story of another great success—but not quite. There were a couple of key assumptions that Remy baked into the startup. One was the rate that advertisers were willing to pay. Another was the amount of work needed to manage the video game owners. Both assumptions proved to be wrong, and Ironsilk was closed within the year. Its demise could have been prevented, Remy thought.