Pivot

Remy Arteaga has more than twenty years' experience in entrepreneurial, innovative, and strategic roles. Remy began his career with GM, where he was part of an internal consulting group, the sole mission of which was to change the way GM did business. There, he developed ideation, customer needs, and competitive analysis business methods that were deployed throughout the company. Following GM, Remy spent several years as an IT consultant before launching his first startup. Over the next 20 years, Remy started up five successful startups in varied industries, from medical devices to software. As COO and founder of Extreme Interactive Media, Inc., he built the company into the top competitor in its media space. In 2007, Remy was named CEO of DualAlign LLC, an Albany, New York–based technology startup focused on computer vision software solutions. Most recently, Remy served as the Program Director of the Entrepreneurship Center at Rensselaer Polytechnic Institute.Joanne Hyland is President of the rInnovation Group (rInnovation) and former Vice President, New Venture Development, at Nortel Networks. As a Founding Partner in rInnovation, Joanne works with major corporations across diverse industries in the U.S., Canada, Denmark, Germany, and elsewhere to link innovation with strategy and to develop systems, leadership and culture capabilities that drive growth and corporate renewal. Joanne speaks regularly on topics related to innovation and corporate entrepreneurship and is/has been a member of the MBA and executive education faculties at Babson College, the Business Institute in Denmark, the Danish Technical University, MIT, Rensselaer Polytechnic Institute, Stanford University, and the Tata Management Training Center. At Nortel Networks, Joanne and her team founded its internal venturing program, a multimillion-dollar investment fund that resulted in twelve business startups, one of which, Bill Me Later®, reached close to a billion-dollar exit in October 2008 when it was bought by eBay/PayPal.

"In short, this book – along with a website that provides a digital toolkit to assist in the logistics of realising the suggested procedures — is packed with practical yet insightful guidance to inspire the budding billionaires of the future." (Elite Business, February 2014)

• List of Trademarks xiiiAcknowledgments xvIntroduction: Is There a Better Way?Part I The Tale of Two Entrepreneurial Worlds 1Chapter 1: Pedal to the Metal 3A Little History 3Traditional Management Tools Fail Entrepreneurs 4Why Startups Fail 7Origins of the Pivot Methodology 8Notes 10Chapter 2: Innovation is Bringing Discipline to Chaos 11Plant = Discovery; Pivot = Incubation; Propel = Acceleration 11Introduction to the D-I-A Model 13If Only I Had Known Then What I Know Now . . . 15Innovation Defined in the Corporate Setting 17Beyond Invention and Creativity 18Emerging Management Discipline 19Innovation Definitions 21Common Language and Mind-Set 23Navigating the Culture Divide 24It’s All about Uncertainty 25Uncertainty versus Risk 25Uncertainty Types: Technical, Market, Resource, Organization 26Innovation Continuum and Uncertainty 27The ABCs of Innovation Uncertainty 27Notes 29Chapter 3: The Corporate Entrepreneur 31An Examination of the Definition 31An In-Depth Look at Corporate Entrepreneurship Models 33Model One: Intrapreneurship 34Model Two: Arm’s-Length Approaches—Corporate Venture Capital and External Corporate Incubators 35Model Three: Internal Venturing—Spin-Ins and Spin-Outs 36Model Four: New Business Creation—Inside Corporate/R&D or Established Divisions 38Model Five: Open Innovation Hybrid Approach 39Model Six: An Innovation Function—Institutionalizing Corporate Entrepreneurship 40A Brief Look at Academic Research 42A Look at Corporate Culture 43Personal Experiences 46Notes 52Additional Notes 53Chapter 4: So, You Want to Be an Entrepreneur? 55Swinging for the Fences 56The Academic Side 59Personal Experiences 63Notes 67Chapter 5: Entrepreneur and Corporate Entrepreneur: Framing the Perspectives 69Comparing Entrepreneurs 71Differences between Entrepreneurs and Corporate Entrepreneurs 71Differences in the Operating Contexts 72Progress in Understanding and Effectively Executing the Two Different Types of Entrepreneurship 74Notes 76Part II Plant = Discovery—The Business Vision 77Chapter 6: Discovery–Attractiveness of the Business Opportunity 79Discovery Principles 81Discovery and Open Innovation 83Discovery Progression: Capturing Innovation Opportunities 85Opportunity Recognition 85Application Generation and the Business Vision 89The Discovery Toolkit in Brief 92Standard Tools 93Idea Uncertainty Assessment Tool 93Genesis Pad Opportunity Description 93Opportunity Screening Criteria 96Opportunity Potential Questions 97Uncertainty Identification Checklist for Discovery 99Opportunity Stakeholder Positioning Steps 99Plant or Discovery Value Pitch 99Advanced Tools 104Words of Caution 107Plant Your Value Pitch: Making the Transition to Incubation with Your Opportunity Concept 107Notes 109Chapter 7: Opportunity and the Entrepreneur 111Opportunity Recognition 112Technology to Market Opportunity 114The Challenge for Universities to Commercialize Technologies 116The Big XYZ 118The Value Proposition 119The Positioning Statement 121Notes 122Chapter 8: Entrepreneur and Corporate Entrepreneur Perspectives: Pursuit of Opportunities 123Getting from Idea to Opportunity 123Attracting Attention 125Note 127Part III Pivot = Incubation—The Missing Link 129Chapter 9: Incubation—Discipline Together with Chaos 131Incubation Principles 133Incubation Objectives 136Incubation Activities and Processes 137Incubation and Living With Chaos: The Learning Plan 142Short, Quick, Inexpensive Learning Loops 143The Learning Plan Methodology 144Dimensions of Uncertainty 148Learning Loop Development Process 152Initiating a Learning Loop 152Evaluating Learning Outcomes 153General Guidelines 153Notes 155Chapter 10: Early Market Engagement: Business Concept Options 157Incubation Progression: Market Learning and Business Model 158Market Learning 160Business Model 164Market Development Considerations 166Learning versus Product Prototype 166Market Entry Approach 167Forget about Finding the Killer Application 167Be Out There 168Move from Office to Market 168Market Development = Market Learning 169Follow the Long and Winding Road 169Innovation Roles 169Building the Team 169Success Depends on People 171The Incubation Toolkit in Brief 173Standard Tools 173Learning Plan Design Template 173Uncertainty Identification Checklist for Incubation 174Technical and Market Concept Testing Approaches 174Technical and Market Concept Testing Outcomes 176Genesis Pad Solution Description 176Transition Readiness Questions 177Pivot or Incubation Value Pitch 179Advanced Tools 180Learning Approach Value and Coaching Requirements 182Accelerated Learning to Achieve Faster Results 182Consistent and Timely Coaching Required 184Pivot to Your Evolved Value Pitch: Making the Transition to Acceleration with Your Concept Proposal 185Notes 187Chapter 11: Business Experiments 189Knowledge Construction 190Define Assumptions 194Define Markets 196Define CTA and Analytics 198Define Product 200Note 201Chapter 12: Validated Learning = Knowledge 203Business Model 204Start Executing Experiment 206Execute: Product, Market Group, and Call to Action (CTA) 207Execute: Assumptions and Analytics 208Execute: Confidence, Results, and Knowledge Loop 209Business Plan 212Notes 216Chapter 13: Entrepreneur and Corporate Entrepreneur Perspectives: Incubation and Hypothesis-Driven Learning 217Learning Is the Antidote to Uncertainties 218Learning How to Learn 219Pivot Startup Methodology and Learning Plan 220Making the Case for Investment 221Part IV Propel = Acceleration—The Business Ramp-up 223Chapter 14: Acceleration—Courage to Invest 225Acceleration Principles 226Moving from Uncertainty to Risk 226Moving from Experimentation to Development 227Acceleration and the Phase Gate Process 228Integrating with Product Development 229The Acceleration Toolkit 232Standard Tools 232Resource and Organization Alignment Plan 233Market and Technology Development Integration Plan 233Propel or Acceleration Value Pitch 235Advanced Tools 235Propel Your Value Pitch: Making the Transition to Operations with Your Business Plan 236Notes 237Chapter 15: Preparing for Growth 239The Startup Ecosystem 241University Ecosystems 244A Time to Scale 246Notes 249Chapter 16: Entrepreneur and Corporate Entrepreneur: The Challenges of Growth 251The Ecosystem 252         The Laws of Diffusion and Resistance 253Scaling 255Balancing TMRO 256About the Authors 257About the Academic Contributing Authors 261About the Companion Websites 265Index 267