This document discusses innovation and collaboration. It provides examples of great innovations that resulted from experiments gone wrong or attempts to do something different. It emphasizes that executing on ideas is more difficult than having them and discusses different types of innovation like sustaining, disruptive, and breakthrough innovations. It also discusses the importance of collaboration for innovation, including open innovation with startups, and ensuring the right focus and alignment between creativity and business strategy for successful innovation.

1. Topi Järvinen
November 2018
Growth from innovations
and collaboration

2. PwC 2
Innovate and grow

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Most people think it’s all about the idea.
It’s not.
EVERYONE has ideas. The hard part is to
execute on the idea.
Mark Cuban
Serial entrepreneur, VC, Shark
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What can we learn from these great innovations?
4
Teflon Super glue Penincillin
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These are examples of great innovations that are a result of an experiment gone wrong
or an attempt to do something entirely different.

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Superhero inventors or collaboration?
5
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6. innovations?
find
do you
How2

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Innovation opportunities are everywhere
7
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Core product
Add-ons
Services
Channel
Brand
Experience
Business model
Partnerships
Procurement
Core
Enabling
Offering Delivery Financial Process
Customer needs
Innovation
areas
Opportunities,
needs and
requirements
Enablers
Competition Strategy
Technology Culture/mindset Collaboration

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Great innovations all around…
8
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Offering Delivery Financial Process
Airline with a great
service brand
Experience and Brand
Conversational
customer care chatbot
Experience, Enabling process
From sketchpad to shop
floor in three weeks
Core process
Bait and hook
Business model
Always online
roadside assistance
Service, Process?

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… but the best innovate on more than one area
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Offering Delivery Financial Process
Seamless way to use both on-demand
cars and public transportation with a
monthly subscription
Easy way to make restaurant-
quality coffee with a single use,
mail-order capsules

10. for us?
innovation model
the right
What is3

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How well is
the problem
defined?
Who can
solve it?
What is the
right way to
solve it?
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1 2 3

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Companies need to choose
the right innovation type for
their situations to succeed.
Four
innovation
types
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Problemwell-defined
Yes
Breakthrough Sustaining
No
Research Disruptive
No Yes
Domain well-definedInnovate and grow

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Each innovation type has its on toolset and ways of working
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Skunk works
Innovation competitions
Moonshots
Product development
Supplier and scaleup partnerships
R&D Labs
University collaboration
Research papers and
conferences
Startups (internal and external)
Innovation Labs and Garages
Open innovation
15%/20% Rule
Breakthrough Sustaining
Research Disruptive
Ecosystem
collaboration
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Horizon 1: Current business. Focus on
profitability and execution. Defend and
extend current business
Horizon 2: New potential growth
opportunities. Find new growth in
current or adjacent business areas.
Horizon 3: Emerging and future.
Uncover, create and nurture new options
for future growth
Innovation
horizons and
innovation types
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NewAdjacentIncremental
Horizon 1
Current
Horizon 2
Growing
Horizon 3
Emerging
Disruptive
Sustaining
Break-
through
Newvaluepotential t
Market
development

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Innovate and grow
Think
outside
the box?
Find a box
outside the
box?or

16. Align
creativity
with
strategy
rules
needs
Innovation

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Addresses new
markets with more
than $500 million
in potential
revenue
Leverages the
company’s
expertise in
materials science
Represents a
critical component
in a complex
system
Uses patents and
proprietary
process expertise
to defend against
competition
Example:
You can learn from the past
17
Corning looked at their own historical breakthrough products. Found a set of simple
rules to evaluate major innovations.
1 2 3 4
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All DARPA projects must
1.further the quest for
fundamental scientific
understanding
2.have a practical use.
Think big, but
have a focus
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Example
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Any new product must
1. help the instructors attract
clients and keep them
engaged.
2. deliver FEJ = “freeing,
electrifying joy” (not “no
pain, no gain”)
Keep focus on
delivering the
value proposition
19
Example
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20. of innovation
as the engines
organization
People and4

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Having an innovation department is
always a sign that something’s wrong.
Tim Cook
CEO, Apple
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Having an innovation department is
always a sign that something’s wrong.
Tim Cook
CEO, Apple
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Of course, others may disagree.
For example, Google has a very
successful innovation model
that is driven by separate
innovation units.

23. everyone’s
should be
Innovation
job

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Company culture changes
slowly, but the climate can
be changed quickly with
leadership and actions
Focus on
changing the
innovation
climate
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Culture
How and what
we believe
How and what
we perceive
Climate

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Organizational
commitment
+49% +31% +34%
Strong innovation climate makes people more satisfied and
the organization function better
Work engagement
.
Intent to stay
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Increase from Bottom 10% of innovation climate scores to Top 10% of innovation climate scores
Gartner, The Fundamentals of Innovation Culture (2017)

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We don’t know who discovered water,
but we’re certain it wasn’t a fish.
John M. Culkin
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Four types of diversity
that bolsters innovation
Diversity
matters
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Boston Consulting Group 2017
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Fixed mindset Growth mindset
Carol Dweck
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Transformation Innovation
Growth mindset
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30. innovation
to drive
is a great way
Collaboration5

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Open innovation
enables new growth
opportunities
Example
P&G uses their Connect +
Develop –program to find new
innovations and partners.
For example: Swiffer
“Biggest business wins come
from working together”
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Working with
startups to drive
innovation?
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CEO’s are planning to
drive corporate growth
with startup collaboration
(PwC CEO Survey 2018)%
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Fun and
interesting!
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But what about
on next Monday?
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The real business
impact from the
collaboration?
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Imaginatik and Masschallenge 2016
Corporations:
What determines the success of the startup collaboration?
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Startups:
What are the barriers in the collaboration with corporations
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Startups are a great source of inspiration for corporate culture
and product development
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Corporations can learn a lot from startups,
but not everything can or should be imitated
Experiment Analyze
Get it done Follow the process
Fail fast Avoid risk
Be transparent Be careful
Customer obsessed Legacy driven
Find surprises Deliver the plans
Customer dialogue Market insightsStartups Corporations
Learn, not copy

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Startups and corporations are a great fit, really
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Market insights Learn
Agility and customer
obsession
Access to customers
and new markets Grow
1000’s of new options
with low risk
Validated by
corporation Brand
Agile and open
innovator
Startups Corporations

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Learn from startups: move from analysis based to experience
based mindset and development
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Analysis
Experiment
Learn
Adjust
Decide
Executive
decision
Implementation
Validate
at launch
Old way: “We know what to do”
New way: “We don’t know, but we’ll do experiments to find out”
Idea
Idea
pivot
Months
Days
High stakes and
uncertainty create
fear of failure
Focus is kept on
innovation and
value delivery
Launch
Implement /
finalize
validated
1
2
Validate

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Remember your strategic focus and choose the right tools and
goals for the job
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Agile way to develop
new solutions for
existing business needs
Sustaining
Disruptive
Test and learn about the
new technologies and
problems worth solving
Startup
collaboration focus
Different mindset
and ways of working
Difficulties in moving
from the lab into a real
business partnership
Collaboration
challenge

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Each innovation type has its own toolset and focus.
• Business and product development
integration
• Building partnership model
• Preparing for the pilot and commercial
launch
• Helping startups/scaleup with scaling
• Iterating and piloting new ideas and
technologies with customers
• Helping startups to become trustworthy
partners
• If needed, bridging the gap between
the lab stage and the normal product
development
44
Disruptive innovationSustaining innovation
Company
need
Operational
focus
Ecosystem operations and startup collaboration support
Bridging the different innovation horizons

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Don’t force startups to your
models and specs
Take advantage of the
entrepreneurial drive

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Startups are not a
band-aid for your
innovation problems
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Usually the innovation people handle startup collaboration…
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R&D
Innovation
Startup collaboration

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But to succeed, all stakeholders need to be involved
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People
development
Business
R&D
Innovation
Startup collaboration

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Foster different
perspectives, for
example, with
diversity and
collaboration
Enable and
engage the whole
organization to
innovate
Align innovation
activities with
strategy, both short
and long term
Three steps to greater impact from innovation
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1 2 3

50. PwC
You miss 100 percent of the shots you
never take.
Wayne Gretzky
Ice hockey legend
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51. pwc.com
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Topi Järvinen
topi.jarvinen@pwc.com