These slides present a possible innovation framework for Corporates consider and highlights where each innovation efforts live. It covers Incremental innovation, Transformation innovation through to Open Innovation and defining Growth Agenda. It also covers the 3 horizons. Horizon 1 is focused on optimizing the existing business via incremental innovation (i.e. better systems, process, products etc), and Horizon 2 is focused leveraging the business model into new areas as it has a competitive advantage (i.e. Amazon leveraging its online retail business model and moving to the physical world with Amazon Go) and Horizon 3 is about exploring and creating a new business model (think Google and Google car and now called https://waymo.com/ - separate company, new business model. Also reviews what is the difference between an Incubator vs Accelerator from a Business Model point of view.

1. Innovation framework
Franki Chamaki
Red Garage Ventures

2. Source IP only, IP and Talent or talent only?
Classified – Confidential - Page 2
Supported by internal/external communication (e.g. Newsletter, annual innovation festival, internal dashboard)
Governance (e.g. set up a cross-functional “Innovation Board” to drive innovation internally)
Internal & offline
Team brainstorm
sessions (eg
inventium.com.au)
Internal & online
Internal crowdsourcing
platform
(e.g.brightidea.com)
External & offline
Acquire early start-up
venture (new IP)
Engage “innovation”
external firms (ie Design
Thinking)
External & online
Run hackathon
(e.g. GE Industrial
Hackathon)
Set up internal Design
thinking teams (e.g. AMP,
Westpac)
Scout new IP
(eg prescouter.com)
Sponsor third party
R&D (i.e. University)
External hosted crowd
sourcing hosted
externally for
(e.g. edisonnation.com,
kaggle.com ,
openideo.com,
innocentive.com )
Internal hackathon
(eg atlassian fedex
days)
Framed Problem Within Focus Area(s)
Define Focus Area(s) within Growth Agenda
Know Growth Agenda (Opportunities & Adjacencies)
Incremental innovation to Transformation innovation
Hosted internally
crowdsource for externa
(e.g.
pgconnectdevelop.com )
CORPORATE INNOVATION FRAMEWORK

3. Source IP only, IP and Talent or talent only?
Classified – Confidential - Page 3
Supported by internal/external communication (e.g. Newsletter, annual innovation festival, internal dashboard)
Governance (e.g. set up a cross-functional “Innovation Board” to drive innovation internally)
Internal & offline
Team brainstorm
sessions (eg
inventium.com.au)
Internal & online
Internal crowdsourcing
platform
(e.g.brightidea.com)
External & offline
Acquire early start-up
venture (new IP)
Engage “innovation”
external firms (ie Design
Thinking)
External & online
Run hackathon
(e.g. GE Industrial
Hackathon)
Set up internal Design
thinking teams (e.g. AMP,
Westpac)
Scout new IP
(eg prescouter.com)
Sponsor third party
R&D (i.e. University)
External hosted crowd
sourcing hosted
externally for
(e.g. edisonnation.com,
kaggle.com ,
openideo.com,
innocentive.com )
Internal hackathon
(eg atlassian fedex
days)
Framed Problem Within Focus Area(s)
Define Focus Area(s) within Growth Agenda
Know Growth Agenda (Opportunities & Adjacencies)
Incremental innovation to Transformation innovation
Hosted internally
crowdsource for externa
(e.g.
pgconnectdevelop.com )
70%
Horizon 1
Optimizing existing
business model
20%
Horizon 2
Leverage existing
business model in new
fields
(and create a competitive advantage)
10%
Horizon 3
Explore a
new business
model
CORPORATE INNOVATION FRAMEWORK & 3 HORIZONS

4. Source IP only, IP and Talent or talent only?
Classified – Confidential - Page 4
Supported by internal/external communication (e.g. Newsletter, annual innovation festival, internal dashboard)
Internal & offline
Team brainstorm
sessions (eg
inventium.com.au)
Internal & online
Internal crowdsourcing
platform
(e.g.brightidea.com)
External & offline
Acquire early start-up
venture (new IP)
Engage “innovation”
external firms (ie Design
Thinking)
External & online
Run hackathon
(e.g. GE Industrial
Hackathon)
Set up internal Design
thinking teams (e.g. AMP,
Westpac)
Scout new IP
(eg prescouter.com)
Sponsor third party
R&D (i.e. University)
External hosted crowd
sourcing hosted
externally for
(e.g. kaggle.com ,
openideo.com,
innocentive.com )
Internal hackathon
(eg atlassian fedex
days)
Framed Problem Within Focus Area(s)
Define Focus Area(s) within Growth Agenda
Know Growth Agenda (Opportunities & Adjacencies)
Incremental innovation to Transformation innovation
Hosted internally
Crowdsourcing for
external
(e.g.
pgconnectdevelop.com )
Considerations
• As Henry Chesbrough (who coined Open Innovation) in his 2003 book "Open
innovation: The new imperative for creating and profiting from technology" argues
companies cannot remain competitive with centralized, internal, R&D processes.
• He believes that companies can and should use external ideas as well as internal
ideas, and internal and external paths to market, as the firms look to advance their
technology.
• This is the essence of RGV's Innovation framework
Governance (e.g. set up a cross-functional “Innovation Board” to drive innovation internally)
CORPORATE INNOVATION FRAMEWORK

5. Source IP only, IP and Talent or talent only?
Classified – Confidential - Page 5
Supported by internal/external communication (e.g. Newsletter, annual innovation festival, internal dashboard)
Internal & offline
Team brainstorm
sessions (eg
inventium.com.au)
Internal & online
Internal crowdsourcing
platform
(e.g.brightidea.com)
External & offline
Acquire early start-up
venture (new IP)
Engage “innovation”
external firms (ie Design
Thinking)
External & online
Run hackathon
(e.g. GE Industrial
Hackathon)
Set up internal Design
thinking teams (e.g. AMP,
Westpac)
Scout new IP
(eg prescouter.com)
Sponsor third party
R&D (i.e. University)
External hosted crowd
sourcing hosted
externally for
(e.g. kaggle.com ,
openideo.com,
innocentive.com )
Internal hackathon
(eg atlassian fedex
days)
Framed Problem Within Focus Area(s)
Define Focus Area(s) within Growth Agenda
Know Growth Agenda (Opportunities & Adjacencies)
Incremental innovation to Transformation innovation
Hosted internally
Crowdsourcing for
external
(e.g.
pgconnectdevelop.com )
Considerations
1. What's the problem? Need to have a 100% clear problem area. Circular Economy
is too board. Need to be specific and start with "How might we...." solve xxx. Apply
Design Thinking and have the participants immerse in the problem.
2. How are you going to communicate: We need to communicate the problem along
to the right groups and to help them understand what you like to be solved. We need
to communicate objective of the hackathon (ie just sources ideas vs funding a
startup), explain the judging criteria, explain IP treatment. This is an ongoing
process which include pre, during and post event
3. How are you going to support the event? Need to have both right mix of Subject
Matter Experts (ie Circular Economy experts in the define problem area) as well as
"startup" folks supporting the team during the event and to facilitate and ensure they
keep true to the problem at hand. They also help ensure they apply a "lean startup"
thinking to quickly test and validate ideas.
4. How are you going to reward the winner(s)? What will the winners get? Access
to funds, access to scale partner? Access to incubation services? All?
5. How are you going treat IP? Typically participants "own" the IP but have the
option to sell % to get funding to grow
6. What happens after the event? How are you going nurture and incubate?
Need to have a clearly defined "incubation" approach (erg first 3 month is business
model validation, secure first customer, scale etc)
7. Clear judging criteria - communicate how you are going to judge. In ours we had:
1. 25% - Innovation - show us how different unique your idea is!
2. 25% - Execution - show us a prototype/demo/mock up!
3. 25% - Customer Validation - show us you can secure a customer!
4. 25% - Use of asset - show us how you leverage Coke asset/waste in your
idea
Governance (e.g. set up a cross-functional “Innovation Board” to drive innovation internally)
CORPORATE INNOVATION FRAMEWORK

6. Classified – Confidential - Page 6
Criteria
Framed Problem Within Focus Area(s)
RED GARAGE VENTURES HACKATHON PARTER ASSESSMENT
1. Clear structured event approach (i.e. help define problem,
education night, marketing of event, reach participants, during
event)
2. Good access to communities (i.e. universities, startup and
domain expertise)
3. Clear marketing resources for pre, during and post approach
4. Pre event problem or asset immersion (i.e. education/training
night)
5. Clear judging panel recruitment process
6. Clear judging idea criteria process
7. Clear post event approach (i.e. incubation, communication)
8. Physical space engaging, access to resources (i.e. wifi),
transport
9. Within budget
10.Unique selling point (make event fun, have in-hack
workshops e.g. how to create mvp, how to validate ideas,
how pitch, how to set up a shareholders agreement)

7. Source IP only, IP and Talent or talent only?
Classified – Confidential - Page 7
Supported by internal/external communication (e.g. Newsletter, annual innovation festival, internal dashboard)
Internal & offline
Team brainstorm
sessions (eg
inventium.com.au)
Internal & online
Internal crowdsourcing
platform
(e.g.brightidea.com)
External & offline
Acquire early start-up
venture (new IP)
Engage “innovation”
external firms (ie Design
Thinking)
External & online
Run hackathon
(e.g. GE Industrial
Hackathon)
Set up internal Design
thinking teams (e.g. AMP,
Westpac)
Scout new IP
(eg prescouter.com)
Sponsor third party
R&D (i.e. University)
External hosted crowd
sourcing hosted
externally for
(e.g. kaggle.com ,
openideo.com,
innocentive.com )
Internal hackathon
(eg atlassian fedex
days)
Framed Problem Within Focus Area(s)
Define Focus Area(s) within Growth Agenda
Know Growth Agenda (Opportunities & Adjacencies)
Incremental innovation to Transformation innovation
Hosted internally
Crowdsourcing for
external
(e.g.
pgconnectdevelop.com )
Integration morals
Source: https://timreview.ca/article/490
1. “Cross-Leverage” model: leaves the acquisition as a
separate business unit, but merges the technology and
people into the main company. Pro: operates as a
separate "product line" but uses company's shared
assets (i.e. marketing, R&D, distribution). Con: time lag to
get things done as it now depended on shared resources
1. “New Bet” model turns an acquisition into a new,
standalone business unit within the company to pursue a
new market segment. Pro: standalone allow for full
independence but leverages brand, customer base, and
distribution assets
1. “Top Up” model breaks up the acquired entity into
portfolio elements and consolidates it into the acquiring
company. Pro: allows for full company integration
quicker, filling gaps and more organic (reduce company
shock). Con: May not take advantage of startups' IP to
full potential as its watered down.
1. “Double Down” model consolidates both companies’
assets into the acquired company. Pro: works well if the
startup's market distribution, brand, customer base, and
leadership team are more effective. Pro: company
cultural on both sides needs to be managed.
Governance (e.g. set up a cross-functional “Innovation Board” to drive innovation internally)
CORPORATE INNOVATION FRAMEWORK

8. Incubate Pitch Accelerate
CORPORATE INCUBATION APPROACH
Moving an idea into a new business model

9. Moving idea into a new business model
Incubate Pitch Accelerate
● Lean startup principles
○ Business model validation
● Working infrastructure
○ Internal Job forum allowing
staff to join the startup for
short assignments, good for
fostering corporate
innovation cultural
○ External on-demand
employees like upwork vs.
freelancer vs. fiverr vs. guru
site sub site
● Mentor network
● Business model validation
● Funding & reporting governance
○ Quarterly reporting and
funding request (i.e. list
assumptions to test, and
how and when)
● Customer traction. Focus is
Product/Market fit
● Articulate the problem, value
proposition, plan to scale, why to
“back” this team/idea.
● Define the team and founders
● Key milestone, return and fund/
resources required
● SAFE Note - no-loan funding with
% rights at raising time on based
on funds injected and valuation
● Convertible Note - funding loan
with equity rights/terms
● Collaboration Deed - fully funded,
wages etc own IP but specific
options to commercialize
● Business loan/Private
investors/bootstrapping
CORPORATE INCUBATION APPROACH

10. Incubator or. Accelerator?
CORPORATE INCUBATION APPROACH
Incubator key focus:
“product/market fit”.
Its aim is to validate,
through experimentation,
that the unique value
proposition addresses a
customer segment(s) and
their problem
An Incubator’s purpose is about ensuring Value Proposition and Customer Segment are validated
(e.g. find product/market fit)
This means giving it the right resources (i.e. funds, freedom) and mentor/network support to explore
the problem area within a set time frame to find the product/market fit
Incubation
Incubating an idea is like
Incubating an egg – you need to
ensure you have the right
temperature (i.e. sufficient
money), humidity (i.e. spend
cadence) , turning the egg (i.e.
validating the ideas) and
environment (i.e. mentor network,
office space/ resources)

11. Incubating to accelerating
CORPORATE INCUBATION APPROACH
Hatching key focus:
“Reach more people”.
Its aim is find resources (ie
money/team or both) to
continue growing the
customer base and
proving “traction”
Once product/market fit has been established, its time to “nurture” its growth. One avenue to access
funds (or/and team) and structured program is through VCs, Accelerator or Private (return for equity)
to drive growth
A pitch is your reason to “scale up”. Its how you going to Channel or “distribute” your solution to reach
more customers. A pitch therefore is a plan on how you going to exploit the Customer Segment with
your validated Value Proposition. Learn more about Pitching here
Hatching out
This is the stage where you
have validated product/market fit
and need funds/ a team to scale
your idea by “pitching” your idea
for funds at a VC, angel
investor, an internal or external
accelerator, corporate growth
board etc.

12. Incubating to accelerating
CORPORATE INCUBATION APPROACH
This assumes your business model’s most critical assumptions have, to large extend, being proven.
You have demonstrated a clear product/market fit and have shown (repeatability) customer traction
This is about validating other aspect of your business model – including pricing model, formalizing
partnerships, building repeatable process
Accelerating
A structured approach to
accelerate the “testing” of the
other business model
assumptions
Accelerating key focus:
“Validating other area”.
Its aim is continue to
validate other important
assumptions of your
business model