Innovation Strategy Examples - Guide FINAL

Innovation
strategy
examples
How leading organizations arrange
their innovation portfolios to achieve
the corporate vision.
What’s in this guide?
PART I
Innovation strategy basics
PART II
Innovation strategy examples
Innovation strategy basics
PART I
3
“Where should I go?”
“That depends on where
you want to end up”
— Alice & the Cheshire Cat
What is
innovation strategy?
Innovation strategy is a commitment to a common
innovation mission and to a structured set of activities in
order to support the future growth of the organization
6
Who are we to talk?
Our consultants help the world’s largest
organizations achieve the results they’re
looking for. We convert high-level corporate
strategies and missions into crisp, realistic
and actionable plans for growth.
From innovation strategy sprints to

innovation audits, full transformations, and
corporate partnership initiatives, it’s our
bread and butter.
7
What does an innovation
strategy look like?
An innovation strategy outlines the mission

and key initiatives that will get you there.
Good innovation strategies are simple, clear,

and easily understood by everybody involved.
Buy-in from stakeholders is key. If everyone

has the same map (and can read it), everyone
can be aligned on the destination without
arguing about the directions.
No two innovation strategies are the same.
8
The innovation
strategies of big players
The largest and most innovative organizations
in the world have clear innovation strategies.
While they’re private about the specifics (our
clients included), there are ways to determine
what their innovation strategies look like from
the outside-in. Different innovation activities
enable different strategic results.
Using our innovation matrix tool as a lens, you

can assess key initiatives run by organizations
like Apple, Amazon, Samsung, and Google. In
this guide, we’ve backtracked to show you
what their balanced strategic innovation
portfolios are comprised of.
9
“Strategies should be simple
and clear. They should not
require a 75-page presentation”
— Prof Gary P. Pisano, Harvard Business School

Strategy in a nutshell
Strategies should be able to answer the following
three simple questions:
1. WHERE ARE YOU NOW?
2. WHERE DO YOU WANT TO GO?
3. HOW ARE YOU GOING TO GET THERE?
11
Facing true disruption is tough:
“One path leads to despair and utter

hopelessness. The other to total
extinction. Let us pray we have the
wisdom to choose correctly.”
— Annie Hall (Film)
Why do many innovation
initiatives fail?
WE DIDN’T HAVE AN INNOVATION STRATEGY,
WE KEPT CHANGING OUR MINDS,
AND WE FAILED, REPEATEDLY.
LET’S TELL MANAGEMENT WE

WERE JUST BEING “AGILE”.
14
“Strategy is about decisions and
actions, not just intentions and visions”
— Mike Pinder, Board of Innovation
“Our mission is focused on six core aspirations
the company continually strives to achieve”
“…to help make every brand more

inspiring and the world more intelligent”
“Our worldwide operations are aligned

around a global strategy called the 'Plan
to Win’, which centers on…”
16
“Our mission is focused on six core aspirations
the company continually strives to achieve”
F Y !
LU F
“…to help make every brand more
O F inspiring and the world more intelligent”

TO
“Our worldwide operations are aligned
around a global strategy called the 'Plan
to Win’, which centers on…”
17
Fluffy missions that aren’t actionable
18
An innovation strategy changes that
19
Making innovation strategy actionable day-to-day
Your innovation strategy should form

the bridge between your high-
level corporate mission, vision, and
IN TR
intent, and translate all the way STRATEGIC
N A
O TE
S
GROWTH MISSION
down to the day-to-day team
VA G
TI Y
activities that will deliver the desired
O
N
impact results.
TACTICAL
EXECUTION & GOVERNANCE
OPERATIONAL
INNOVATION PROJECT TEAM LEVEL
20
A step-by-step
structured process
6 components of a great
innovation strategy
1 2 3
A powerful A focused An actionable

Growth Mission Innovation Portfolio Innovation Plan
Innovation mission statement & Key activities with the most impact A blueprint for the execution of your
framework on your business new innovation initiatives.
4 5 6
A mapped A structured Optional: playbook for

Innovation Culture Innovation Capability Innovation
Benchmark innovation culture to People, processes, programs, profits Tools, methods & processes to
uncover challenges & opportunities to succeed with your innovation achieve your innovation plan
strategy
23
5 important innovation
strategy tools
The ideal, perfectly structured innovation strategy process
Where you are now Where you want to go How you will get there
1. INNOVATION 2. INNOVATION 3. THREE HORIZONS 4. INNOVATION

AUDIT LANDSCAPES (AS IS) OF INNOVATION LANDSCAPES (TO BE)
Benchmark what Define how far away Align on when you Figure out how far away
already works well and from home you are expect business impact/ from home you want to
what needs further currently playing in return on innovation play in a balanced risk/
improvement at your pursuit of innovation (ROI) investment uncertainty portfolio.
organization for outcomes
innovation.
25
The ideal, perfectly structured innovation strategy process
Where you are now Where you want to go How you will get there
IMPACT!
5. INNOVATION 6. INNOVATION 7. INNOVATION

MISSION MAP MATRIX BLUEPRINT(S)
Defining your 16 innovation initiatives Defining all the details
strategic innovation to build your balanced for each initiative from
intent (in line with innovation portfolio of scoping, people,
corporate vision, initiatives to support the resources, funding, KPI’s,
culture, and values). mission, and vision. teams, and more.
26
Innovation
audit
27
Innovation audit
WHERE YOU ARE NOW
First, you’ll need to audit the

effectiveness of your current
innovation capabilities… and
identify areas for improvement!
An innovation audit is the way to
go. You’ll need to use both
quantitative and qualitative
research methods.
Tell me more
28
Innovation
landscapes
Download the tool
29
Innovation landscapes 10% 5%
WHERE YOU WANT TO GO

DISRUPTIVE ARCHITECTURAL
INNOVATION INNOVATION
Requires new
business model Requires new business model but no Requires entirely new business model &
Use the innovation landscapes new technical competencies new technological competencies
tool to determine the innovation e.g. Google Android, open-source software,

ride-sharing services, the .mp3…
e.g. blockchain, digital imaging, memory foam,
graphene, personalized medicine…
types you’re aiming for now and

in the future. This will help inform FIT WITH EXISTING
BUSINESS MODEL
your resource allocation decisions.
75% 10%
Are you investing too much or too
little in the right innovation types INCREMENTAL RADICAL
(RE)-INNOVATION INNOVATION
for growth? Leverages existing
business model Fits current business model Requires new technical competencies but
& technical competencies leverages existing business model
e.g. next-gen iPhones, Microsoft Windows, e.g. genetic engineering, biotechnology,

Amazon automated warehouses & stores, e-vehicles, Google X…
Tell me more micro-processors, Gillette razors…
Leverages existing Requires new

technical competences technical competences
FIT WITH EXISTING

TECHNICAL COMPETENCIES
30
1. INCREMENTAL (RE)- 2. DISRUPTIVE 3. RADICAL INNOVATION 4. ARCHITECTURAL
INNOVATION INNOVATION INNOVATION
Requires new
Builds upon the Requires an technical Requires entirely new
existing technical entirely new business competencies. disruptive
competencies. model. technologies AND a
new business model.
Significant R&D
Fits the existing business Disrupts the business investments in new Rarely genuinely
model. models of competitors. technologies needed. achieved.
3 horizons
model
Download the tool
3 horizons of innovation
The 3 horizons of model tool

allows you to explore and define
time-based growth
expectations. Use it to indicate
and communicate when return on
your innovation (ROI) will
materialize.
Tell me more
33
Innovation
mission map
Download the tool
Innovation mission map
Use the innovation mission map to

outline where you want to go
and why (in-line with the
corporate vision and mission).
Analyze key internal and external

drivers influencing your innovation
strategy.
Tell me more
35
Innovation
matrix
Download the tool
Innovation matrix
WHERE YOU WANT TO GO HUNTER BUILDER
High investment
Co-create business Top-down Transform organizations
Define your organizational Venture Structural Innovation Innovation
archetype. Map the types of fund partnership lab transformation
programs you’ll pursue to support

and enable your innovation External Co-development Internal Center of
mission and vision. accelerator track accelerator excellence
External focus
Internal focus
Business first
People first
Explore the 16 initiative types to
support your organizational External
incubator
Co-experi-
mentation track
Internal
incubator
Community of
practice
strategic innovation intent.
Co-creation Design Innovation

Tell me more Scouting
session sprint training
EXPLORER Low investment EXPERIMENTER

Bottom-up
Discover connections Spark interest
37
Innovation
blueprint(s)
Download the tool
Innovation blueprint(s)
HOW YOU WILL GET THERE
Blueprints flesh-out all the how

details for each of your chosen
innovation initiatives. From KPIs
and metrics to teaming and
organizational structures. Gain
buy-in and iterate based on
sponsor feedback and inputs.
Tell me more
39
Innovation strategy portfolios
PART II
40
What type of innovator should
your company be?
Innovation matrix
4 INNOVATION ARCHETYPES - 16 FORMATS
HUNTER High investment BUILDER
Using our innovation matrix, we’ve looked

at the innovation initiatives run by some of Venture
fund
Structural
partnership
Innovation
lab
Innovation
transformation
the world’s leading companies to determine

what kind of innovation strategies they have External
Co-
Internal Center of
development
in place - by identifying their innovation accelerator
track
accelerator excellence
External focus
Internal focus
archetype.
Business first
People first
External Co-experi- Internal Community of
Note that no archetype on this matrix is incubator mentation track incubator practice
better than the others. A hunter is not

better than a builder or even an explorer. Scouting
Co-creation
session
Design
sprint
Innovation
training
They are simply different businesses facing

different situations. Every direction on the EXPLORER Low investment
Bottom-up
EXPERIMENTER
Discover connections Spark interest
matrix also implies trade-offs.
42
boardofinnovation.com/tools
Experimenter
Focus: bottom-up, low-investment internal initiatives to spark interest
HUNTER BUILDER
INTERNAL INCUBATOR COMMUNITY OF PRACTICE Co-create business
High investment
Top-down Transform organizations
An incubator separates A community of practice is a

intrapreneurs inside of the cross-functional group of
organization to validate the innovation ambassadors.
solution fit of ideas.
Key metrics:
Key metrics: # practitioners/ambassadors
# projects accelerators # people impacted
External focus
Internal focus
Business first
# intrapreneurs/teams
People first
DESIGN SPRINT INNOVATION TRAINING Internal Community of
incubator practice
A design sprint is a short track A short learning track to grow
to answer business questions the knowledge and interest of
through designing, employees.
Design Innovation
prototyping, and testing with sprint training
customers. Key metrics:

# employees trained EXPLORER Low investment EXPERIMENTER
Key metrics: # mature/satisfied participants Discover connections Bottom-up Spark interest
# solution created & selected

# business challenges
addressed 43
Builder
Focus: top-down, high-investment internal transformation initiatives
HUNTER BUILDER
INNOVATION LAB INNOVATION Co-create business
High investment
An Innovation lab is a separate TRANSFORMATION

entity that hosts internal The Innovation transformation team Innovation Innovation
ventures with high potential is a central group of innovation lab transformation
before they are profitable. leaders responsible for knowledge

development.
Key metrics: Internal
accelerator
Center of
excellence
# successful lab ventures Key metrics:
External focus
Internal focus
Business first
# employees in each venture # transformed processes
People first
# projects launched
INTERNAL ACCELERATOR CENTER OF EXCELLENCE

An accelerator is a virtual or A center of excellence is a formal
physical space to grow group of experts , that coordinates
internal startups outside of the innovation initiatives, to embed
core organization and validate innovation in the organization.
the market fit. EXPLORER Low investment EXPERIMENTER
Key metrics: Discover connections Bottom-up Spark interest
Key metrics: # innovation experts

# validated ventures # people impacted
# intrapreneurs/teams 44
Explorer
Focus: bottom-up, low-investment external initiatives to discover connections
HUNTER BUILDER
EXTERNAL INCUBATOR CO-EXPERIMENTATION TRACK Co-create business
High investment
An external incubator is a A co-experimentation track is a

program to support the joint test between 2 or more
validation of early stage organizations to validate the
external startups. solution fit of an idea.
Key metrics: Key metrics:

# validated start-ups # validated pilots
External focus
Internal focus
Business first
# commercial collaborations # business synergies
People first
SCOUTING CO-CREATION SESSION External Co-experi-
incubator mentation track
Scouting startups is a A co-creation session is a short
methodological process to ideation with customers or
identify relevant startups in partners to turn mutual problems
Co-creation
your field, validate their into ideas. Scouting
session
potential and engage with

their founding members. Key metrics: EXPLORER Low investment EXPERIMENTER
# ideas co-created & selected Discover connections Bottom-up Spark interest
Key metrics: # business synergies

# start-ups scouted
# meetings with founders 45
Hunter
Focus: top-down, high-investment external co-creation initiatives
HUNTER BUILDER
VENTURE FUND STRUCTURAL PARTNERSHIP Co-create business
High investment
A (corporate) venture capital A structural partnership is a

fund invests in external formal collaboration between Venture Structural
opportunities that could 2 companies with the aim to fund partnership
create growth outside of the launch multiple joint ventures.

core of the organization.
Co-
Key metrics: Key metrics: External
accelerator
development
track
# successful ventures # successful partnerships
External focus
Internal focus
Business first
# new value created # licensed IP
People first
EXTERNAL ACCELERATOR CO-DEVELOPMENT
An external accelerator is a A co-development track aims
(physical) environment to to validate the market fit of
support the growth and ventures created by 2 or more
evaluate the value of external organizations.
start-ups.
Key metrics: EXPLORER Low investment EXPERIMENTER
Key metrics: # customers willing to pay Discover connections Bottom-up Spark interest
# validated start-ups # Pirate metrics

# commercial collaborations
46
Strategic innovation
portfolio examples
From leading organizations
HUNTER + BUILDER
Samsung’s archetype
HUNTER/BUILDER
Samsung’s strategy has traditionally been all about incremental Venture
fund
Structural
partnership
Innovation
lab
Innovation
transformation
innovation (its curved mobile phone screens are a prime
example). The organization’s strategy in recent years has been
to diversify its portfolio. Its R&D arm is exploring AI, digital Co-
External Internal Center of
development
health, the Internet of Things, autonomous mobility, data- accelerator
track
center infrastructure, security, privacy, and more. Samsung also
External focus
Internal focus
Business first
People first
strategically invests in a range of external initiatives to co-
create businesses.
incubator mentation track incubator practice
FLUFFY MISSION
“We will devote our human resources and technology to
create superior products and services, thereby Co-creation Design Innovation
Scouting
contributing to a better global society.”
R&D SPEND EXPLORER Low investment EXPERIMENTER

Discover connections Bottom-up Spark interest
US$8.4 million in 2019
49
Samsung’s innovation portfolio
INNOVATION INITIATIVES
Venture Structural Innovation Innovation
fund partnership lab transformation
Internal accelerator Venture funds

Headed by Luke Mansfield, Samsung The Samsung NEXT venture fund
Europe’s consumer-focused innovation team invests in financially promising Co-
devises new products for the European software and services startups that accelerator
development
track
market (including a hugely successful app to will define the future of hardware and
External focus
Internal focus
help customers import data from other software integration. While Samsung
Business first
People first
devices to encourage adoption of Galaxy Venture Investment Corporation invests in
smartphones) and convince senior innovative startups and established
management in South Korea to invest in telecommunication, internet, software, bio-
those projects. engineering, and medical industry incubator mentation track incubator practice
businesses. While Samsung Uventure
rewards promising student concepts with a
Internal incubator cash prize and Samsung internship.
Corporate startup incubation program
C.LAB Outside comprises all of Samsung Co-creation Design Innovation
External incubator
Scouting
Electronics’ businesses. They help startups
grow and create new value with Samsung Samsung created Not a School – a London
Electronics. based education institution for the “next
generation of innovators.” And no doubt EXPLORER Low investment EXPERIMENTER
produced solutions for Samsung’s benefit.
50
Requires new business model but no Requires entirely new business model &
new technical competencies new technological competencies
Requires new
business model
Samsung’s 10% 5%
innovation FIT WITH EXISTING

BUSINESS MODEL
types
INCREMENTAL RADICAL
Fits current business model Requires new technical competencies but
Leverages existing
business model
75% 10%

FIT WITH EXISTING

TECHNICAL COMPETENCIES 51
Samsung’s innovation activities
6 STRATEGIC ACQUIRE ACCELERATE +100

INNOVATION PROMISING NEW VENTURES TO
AREAS STARTUPS MARKET
Centers of excellence Venture fund Internal accelerator
Innovation training (TRIZ) External incubator Internal lab
52
HUNTER + EXPERIMENTER
Google
HUNTER+EXPERIMENTER
Google’s innovation initiatives are all over the matrix, so it’s Venture
fund
Structural
partnership
Innovation
lab
Innovation
transformation
difficult to assign just one innovation archetype. Its parent
company, Alphabet, invests heavily in R&D, which indicates
disruptive, radical, and architectural innovation is the target of Co-
development
a number of Google’s innovation initiatives. accelerator
track
External focus
Internal focus
Business first
People first
FLUFFY MISSION
“Our mission is to organize the world’s information and
make it universally accessible and useful.” incubator mentation track incubator practice
R&D SPEND
US$24.83 billion in 2019 (Alphabet) Scouting
Co-creation
session
Design
sprint
Innovation
training

54
Google
Innovation lab Community of practice

X is an American semi-secret research-and- The Sprint Master Academy is a dedicated
development facility, deemed the “Moonshot group of Googlers that grows and expands
Co-
Factory,” where ideas are born and tested. the company’s Design Thinking and design External Internal Center of
development
accelerator accelerator excellence
track
Notable projects started in X include self- sprint skills. They also mentor others and teach
External focus
driving cars, Android wear, Google Glass, and the methodology internally and externally.
Internal focus
Business first
People first
Loon.
Innovation training
Venture fund CSI Lab is a worldwide user-centered, External Co-experi- Internal Community of
GV, formerly Google Ventures, is a venture prototype-driven Googler-to-Googler class to incubator mentation track incubator practice
capital investment arm that provides seed, develop an innovation mindset through
venture, and growth stage funding to startup hands-on doing.
companies. The firm operates independently
from Google and makes financially driven
investment decisions.
Structural partnership Scouting
Co-creation
session
Design
sprint
Innovation
training
GlaxoSmithKline teamed up with Alphabet to
develop miniature electronic implants for the
External incubator treatment of diabetes, asthma, and other
Google for Startups provides support, chronic conditions. French drugmaker Sanofi EXPLORER Low investment EXPERIMENTER
resources and Campuses (physical hubs) to a and Verily are set to invest around $500
global entrepreneurial community across million in a diabetes joint venture.
more than 125 countries.
55
Requires new
business model
Google’s 25% 5%

BUSINESS MODEL
types
INCREMENTAL RADICAL
Leverages existing
business model
20% 50%

FIT WITH EXISTING

Google’s innovation activities
INVEST IN INVEST IN AND

CO-CREATE
INTERNAL DEVELOP PROMISING
SOLUTIONS
CAPABILITIES VENTURES
Community of practice Venture fund Structural partnership
Innovation training Innovation lab External incubator
57
BUILDER
Amazon
BUILDER
Having achieved the impossible feat that is keeping its startup Venture
fund
Structural
partnership
Innovation
lab
Innovation
transformation
culture while scaling up, innovation is ingrained in every part of
Amazon’s culture – not just the R&D arm.
Co-
development
track
FLUFFY MISSION
External focus
Internal focus
“Our mission is to be Earth's most customer-centric
Business first
People first
company. This is what unites Amazonians across teams
and geographies as we are all striving to delight our
customers and make their lives easier, one innovative External
incubator
Co-experi-
mentation track
Internal
incubator
Community of
practice
product, service, and idea at a time.”
R&D SPEND
US$33.86 billion in 2019 Scouting

59
Amazon
Innovation lab Internal incubator

Amazon’s most visible efforts are found in If any company has an established
Lab126, an R&D subsidiary based in innovation culture, it’s Amazon. They enable Co-
Sunnyvale, California. This is the branch all employees to innovate, which is how accelerator
development
track
responsible for all of the hardware products Amazon Prime came about. It received
External focus
Internal focus
tied to Amazon — the Kindle, Echo, and the internal funding after being pitched
Business first
People first
Fire Phone. The lab continues to push out spontaneously via a 6-page memo (which
devices, launching the Echo Show, Echo positioned the idea as a completed concept
Spot, and redesigning the Fire TV and and talked about why consumers loved it).
original Echo — all within a matter of months. incubator mentation track incubator practice
Innovation transformation
External accelerator Amazon’s leadership team prioritizes
Amazon Accelerator enables manufacturers innovation and encourages all teams to do
to launch brands and innovative products the same. Their innovation culture Scouting
exclusively on Amazon and provides a path encourages the prioritization of long-term
to become an Amazon Private Brand goals over short-term gains.
supplier. Additionally, the AWS Builder
Space is a 10-week program run by the AWS EXPLORER Low investment EXPERIMENTER
Startup team aimed at empowering
founders and helping
early-stage startups tackle their challenges.
60
Requires new
business model
Amazon’s 25% 5%

BUSINESS MODEL
distribution
INCREMENTAL RADICAL
Leverages existing
business model
20% 50%

FIT WITH EXISTING

Amazon’s innovation activities
INVEST IN AND
DISRUPT NEW FOSTER INNOVATION
DEVELOP PROMISING
MARKETS CAPABILITIES
VENTURES
Innovation lab Venture fund Innovation transformation
Internal incubator External accelerator Community of practice
62
HUNTER + BUILDER
IBM
HUNTER+BUILDER
IBM not only develops and incubates innovations in-house, it Venture
fund
Structural
partnership
Innovation
lab
Innovation
transformation
co-creates solutions with partners and encourages adoption
through its external activities. They’re involved in so many
different industries that they’re able to use analogy thinking to Co-
development
borrow insights and innovations from one and apply it to accelerator
track
another - not unlike us.
External focus
Internal focus
Business first
People first
FLUFFY MISSION External Co-experi- Internal Community of
“To help its clients transform their companies and lead in incubator mentation track incubator practice
their industries. Dedication to every client's success.

Innovation that matters - for our company and for the
world.Trust and personal responsibility in all Co-creation Design Innovation
Scouting
relationships.” session sprint training

US$1.553B in 2019 Discover connections Bottom-up Spark interest
64
IBM
Co-development Co-development
IBM encourages external parties to help IBM contributes patents to open source
them improve and develop their products foundations to protect the technology, Co-
via communities such as Linux and Apache. create new businesses, and help them avoid accelerator
development
track
With thousands of outside developers patent infringement altercations. In this way,
External focus
Internal focus
improving upon their offerings, IBM is able IBM’s patent leadership has both an
Business first
People first
to free up its resources to focus on solving its offensive and defensive function.
clients problems directly.

Center of excellence Innovation training incubator mentation track incubator practice
“The IBM Innovation Center for Education IBM offers Design Thinking training to clients
(ICE) co-creates technology- and business- to enable them to implement it in their own
based undergraduate and graduate degrees teams, while its Your Learning platform is a
in collaboration with leading universities and state-of-the-art cognitive-driven ecosystem Scouting
engineering colleges around the globe. By that provides a personalized learning
working with educators and other tech experiences for “IBMers.”
industry leaders, we prepare students to
excel in the latest technology industry EXPLORER Low investment EXPERIMENTER
developments, including: AI, blockchain
cybersecurity tools, cloud and hybrid
multiclouds.” – IBM.com
65
Requires new
business model
IBM’s 25% 5%

BUSINESS MODEL
types
INCREMENTAL RADICAL
Leverages existing
business model
20% 50%

FIT WITH EXISTING

IBM’s innovation activities
ENABLE AND INVEST

HARNESS OPEN FOSTER INNOVATION
IN PROMISING
INNOVATION CAPABILITIES
VENTURES
Co-development track 1 Co-development track 2 Innovation training
Community of practice
67
HUNTER
Apple
HUNTER
Apple used to outsource R&D initiatives, preferring instead to Venture
fund
Structural
partnership
Innovation
lab
Innovation
transformation
focus on product development. But these days, they’re
developing competencies in-house through internal
accelerators while also acquiring startups. Co-
development
track
External focus
Internal focus
Business first
People first
“Bringing the best user experience to its customers incubator mentation track incubator practice
through its innovative hardware, software, and services.”

Scouting

US$13 billion in 2019 Discover connections Bottom-up Spark interest
69
Apple
ACTION PLAN
External accelerator Scouting

Apple Entrepreneur Camp is an external Apple is big on buying startups, having
accelerator for female-led organizations. purchased Xnor.ai, a provider of low-power, Co-
They aim to enable female entrepreneurs edge-based artificial intelligence tools. accelerator
development
track
and encourage women in tech. They give along with AI startups Turi, and Drive.ai,
External focus
Internal focus
hands-on guidance about creating apps. which had been running a ride-hailing
Business first
People first
service with its autonomous shuttles in
Texas.
Venture fund
Apple is said to have invested US$1 billion External Co-experi- Internal Community of
in SoftBank’s venture capital fund, Vision Internal accelerator incubator mentation track incubator practice
Fund II. Part of a joint effort between the Apple’s internal accelerator is pushing
bank and Saudi Arabia’s Public Investment forward an electric car research project,
Fund (PIF), its reportedly aiming to fund entitled “Titan.” Around 5,000 Apple
emerging tech including IoT and AI. employees were announced to have been Scouting
working on the initiative.
Co-development track
Apple partnered with Volkswagen to EXPLORER Low investment EXPERIMENTER
Bottom-up
produce autonomous employee shuttle Discover connections Spark interest
vans. The organisation apparently has more

than 66 road-registered driverless cars in
operation.
70
Requires new
business model
Apple’s 25% 5%

BUSINESS MODEL
types
INCREMENTAL RADICAL
Leverages existing
business model
20% 50%

FIT WITH EXISTING

Apple’s innovation activities
ACQUIRE PROMISING
BRING NEW VENTURES DEVELOP DISRUPTIVE
VENTURES IN NEW
TO MARKET NEW TECHNOLOGIES
MARKETS
External accelerator Venture fund Internal accelerator
Co-development track Scouting Internal incubator
72
HUNTER + EXPLORER
Mircosoft
HUNTER + EXPLORER
While incremental innovations have seen Microsoft thrive in Venture
fund
Structural
partnership
Innovation
lab
Innovation
transformation
recent years, the company has struggled to achieve radical
innovation. Now, Microsoft is going all in on R&D, aiming to
advance its position in a range of markets – including Co-
development
healthcare. accelerator
track
External focus
Internal focus
Business first
People first
“Microsoft’s business strategy is focused on intelligent incubator mentation track incubator practice
cloud and mobile experiences. Additionally, they’re

growing through mergers and acquisitions, augmented
and virtual reality.” Co-creation Design Innovation
Scouting

US$16.9 billion in 2019 Discover connections Bottom-up Spark interest
74
Mircosoft
ACTION PLAN HUNTER High investment BUILDER
External accelerator Venture fund

The Microsoft Innovation Center is a non-profit Part of Microsoft for Startups), M12 is a Mircosoft Venture Structural Innovation Innovation
organization located in Brussels. Created in venture fund. They give entrepreneurs the keys to fund partnership lab transformation
partnership with the Brussels Region, the aim is to the Microsoft ecosystem, partnerships with internal
sustain and enhance the IT sector in the region with innovators, and invest in promising B2B companies.
a specific focus on SaaS and Cloud technologies.
Along with a range of initiatives, the program
supports IT startups with 2 bootcamps a year.
Community of practice External
Co-
Internal Center of
development
Microsoft Reactors has campuses across the globe accelerator
track
dedicated to uniting developer and startup
Innovation lab
External focus
Internal focus
communities for networking and knowledge
Business first
People first
PESU Innovation Lab (India) — The Microsoft sharing. They offer training on new technologies
Innovation lab of PES University brings together and events featuring industry leaders.
students and gives them the means to experiment
with new technologies and develop innovative new
businesses. The club runs an annual summer
External accelerator External
incubator
Co-experi-
mentation track
Internal
incubator
Community of
practice
internship, a roadshow, a hackathon (#Code), an The Microsoft ScaleUp program (formerly known as
ideathon (Incito), and other hands-on workshops. the Microsoft Accelerator) for Series A startups and
Members are recruited through the summer offers access to sales, marketing, and technical
internship and many continue to contribute long support, along with ongoing support from success
after the program is over. managers. This immersive program is available in 8 Co-creation Design Innovation
Scouting
locations across the globe for eligible startups. session sprint training
Scouting
Microsoft for Startups is a comprehensive
incubation program through which the company EXPLORER Low investment EXPERIMENTER
Bottom-up
supports startups in building their first applications, Discover connections Spark interest
or scaling their user base. They provide startups

with technical resources, free cloud use, and their
salespeople will even teach them sales skills.
75
Requires new
business model
Microsoft’s 15% 5%

BUSINESS MODEL
types
INCREMENTAL RADICAL
Leverages existing
business model
30% 40%

FIT WITH EXISTING

Microsoft’s innovation activities
ACCELERATE INVEST IN THE ACQUIRE PROMISING

PROMISING NEW INNOVATORS OF STARTUPS IN NEW
TECHNOLOGIES TOMORROW MARKETS
External accelerator Community of practice Scouting
Innovation lab Venture fund
77
In the last 10 years, innovation-driven companies
have outperformed the S&P 500 by 211%.
Our innovation strategy programs can

transform your enterprise into a future-proof,
customer-centered organization.
Check out our programs

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Innovation

From innovation strategy sprints to

An innovation strategy outlines the mission

Good innovation strategies are simple, clear,

Buy-in from stakeholders is key. If everyone

No two innovation strategies are the same.

Using our innovation matrix tool as a lens, you

— Prof Gary P. Pisano, Harvard Business School

1. WHERE ARE YOU NOW?

2. WHERE DO YOU WANT TO GO?

3. HOW ARE YOU GOING TO GET THERE?

“One path leads to despair and utter

LET’S TELL MANAGEMENT WE

“…to help make every brand more

“Our worldwide operations are aligned

O F inspiring and the world more intelligent”

Your innovation strategy should form

A powerful A focused An actionable

A mapped A structured Optional: playbook for

1. INNOVATION 2. INNOVATION 3. THREE HORIZONS 4. INNOVATION

5. INNOVATION 6. INNOVATION 7. INNOVATION

First, you’ll need to audit the

WHERE YOU WANT TO GO

tool to determine the innovation e.g. Google Android, open-source software,

types you’re aiming for now and

e.g. next-gen iPhones, Microsoft Windows, e.g. genetic engineering, biotechnology,

Tell me more micro-processors, Gillette razors…

Leverages existing Requires new

FIT WITH EXISTING

The 3 horizons of model tool

Use the innovation mission map to

Analyze key internal and external

Define your organizational Venture Structural Innovation Innovation

archetype. Map the types of fund partnership lab transformation

programs you’ll pursue to support

mission and vision. accelerator track accelerator excellence

strategic innovation intent.

Co-creation Design Innovation

EXPLORER Low investment EXPERIMENTER

Blueprints flesh-out all the how

Using our innovation matrix, we’ve looked

the world’s leading companies to determine

better than the others. A hunter is not

They are simply different businesses facing

matrix also implies trade-offs.

An incubator separates A community of practice is a

customers. Key metrics:

# solution created & selected

An Innovation lab is a separate TRANSFORMATION

ventures with high potential is a central group of innovation lab transformation

before they are profitable. leaders responsible for knowledge

# successful lab ventures Key metrics:

INTERNAL ACCELERATOR CENTER OF EXCELLENCE

Key metrics: # innovation experts

An external incubator is a A co-experimentation track is a

Key metrics: Key metrics:

potential and engage with

Key metrics: # business synergies

A (corporate) venture capital A structural partnership is a