Scale The Imperative to Think Big, Start Small, Scale Fast

Transcription

1 Scale The Imperative to Think Big, Start Small, Scale Fast Saul Kaplan Director, Business Development, Rhode Island Economic Development Corporation

2 What is government s role?

3 What is government s role? a) Zip, nada, no role stay out of the way.

4 What is government s role? b) Ship the $$$... and then stay out of the way

5 What is government s role? c) Ship the $$$... and maybe, just maybe to play a leadership and catalyst role

6

7 Market Drivers The opportunity to position our economy for sustainable jobs and income growth is influenced by four key market drivers: Globalization Invention to Innovation Chains to Networks Intention Value Networks

8 Globalization has diminished the relative importance of community on the business agenda

9 Invention to Innovation: technology is no longer a limiting factor for business innovation

10 Business Innovation Product Innovation Massive/ Breakthrough Significant/ Immediate Marginal/ Incremental Better Mouse Trap Tweaks New Paradigm for Controlling Mice Better Way to Create Make, and Sell Today s Mouse Trap Qualitative/ Perceptual Additive/ Complementary Displacing/ Substitute Systemic/ Wide Ranging Disruptive/ New System Business Model Innovation

11 From Invention to Innovation

12 Business Model Innovation: A Strategic Weapon Wal-Mart Headquarters Supplier Payment Terms Video Conferencing Retail Stores Suppliers Wal-Mart Fleet Distribution Centers

13 Chains to Networks: value creation is as much a function of a knowledge network as a function of a physical supply chain

14 Shifting Economies of Scale from Size to Flexible Capabilities Functional Silos and Empires Cross Functional Work Teams Physical Assets Knowledge Assets Share Taking Market Making Command and Control Distributed Management

15 Intention Value Networks are possible which realign interests to provide value to the individual

16 Intention Value Networks Health Security Wealth Quality of Life Disease understanding National defense Cash management Food Disease recognition Homeland security Investments Shelter Diagnosis Community security Capital access Clothing Treatment Safe workplace Insurance Education Personalized medicine Information security Financial planning Media and entertainment Fitness and nutrition Home security Tax planning Travel and transportation

17 Business Building That Works A key unmet need for business executives is to make business building more predictable and easier to manage: Underestimated Importance Underestimated the Difficulty Key Lessons Learned Imperative for Innovation at Scale

18 Importance of business innovation as a source of competitive advantage has been underestimated by business executives

19 Difficulty of business building and innovation has also been underestimated by business executives death by 1000 initiatives

20 Lessons Learned: executives now realize business innovation will have to be done a different way

21 Unmet Need: scale an environment to think big, start small, scale fast

22 Birth of a Scale-Free Network

23 Proof of Concept demonstrating the network effect faster and cheaper Benefit Net Benefit Costs Cost ($) Lower Cost Net Cost Fewer Users Number of Users

24 Rhode Island: a unique place to scale Compact geography 1000 square miles Diverse and reachable population: 400,000 households/1,000,000 people Access to both physical and idea supply chains Limited number of key stakeholders Accessible government

25 Hydrogen Fuel Cell Cars Public Policy Objective Value for Rhode Islanders Auto Industry Distributors Auto Service Affordable Environment Friendly Cars Environmental Protection Component Suppliers Hydrogen Fuel Cell Cars Auto Parts Auto Dealers Natural Gas Suppliers Gas Stations New Business Investment and Jobs

26 Business Innovation Factory Think Do-Tank Business Innovators Network LEARN Thought Capital Engine DO THINK Experiential Learning Operating Model Management

27 What is government s role?

28 Scale The Imperative to Think Big, Start Small, Scale Fast Saul Kaplan Director, Business Development, Rhode Island Economic Development Corporation