Innovation Essentials from The Idea Factory Marcus Weldon President of Bell Labs & CTO of Nokia Confidential

Innovation = Invention + Implementation Source: Merriam-Webster Dictionary

Innovation scope is function of path and initial target market Revolutionary Innovation (current market) Evolutionary Innovation (current market) Disruptive Innovation (new market) Adapted from Clayton Christensen, Harvard Business School

But all innovation requires two operating systems “Invention” (Sub-scale, working, non-cost optimized proto-product) Operating System 2 “Implementation” (Scalable, quality, cost efficient production) After John Kotter, Harvard Business School

VC-backed companies: Time to success is ~9 years Years to exit Scott Shane, Case Western Reserve University + 1-2 years Incubation/Seed investment

Industry-backed innovation: Time to success is ~9 years 2 2 3 Years to revolution /disruption 7 7 5 Vectoring DSL Coherent Optical MIMO, Small Cells Bell Labs Analysis

Summary: Two similar models – with key differences 5-7 Years 2-3 Years 2 Years Generalized Invention 7 Years Singular Invention Scale Platform Implementation Scale Implementation(s) New Market Creation Expansion to Platform for Scale & Adjacent Markets Current Market Expansion Platform Extension into Adjacent Markets

Summary: Two similar models – with key differences Ambitious, motivated innovators Desire to change the world Thinkers and ‘Doers’ required Perseverance and adaptation essential Desire to disrupt business models vs. technological models Financial gain vs. STEM field ‘renown’ Singular focused execution vs. generalized solution ‘discovery’