1. Lean Innovation © Tucker J. Marion 2015 Lean Start-up Methods Lean Manufacturing Quick to prototype Rapid testing, iteration, and validation cycles Incremental investment Reduced waste and inefficiencies Reduced bureaucracy Improved development cycle time Design Thinking Deep understanding of the opportunity

2. New Venture vs. Established © Tucker J. Marion 2015 Model SPanamera No. of employees: 5,800 Est. development cost: <$500M Time-to-market: ~ 3 years U.S. monthly sales, ‘15: ~2,000 est. No. of employees: 17,500 Est. development cost: $1B Time-to-market: > 5 years U.S. monthly sales, ‘15: ~500

3. Beyond the Traditional Product © Tucker J. Marion 2015 Service and business model innovation too! Supercharging Stations Company Owned Dealers

4. The Importance of the Beta… © Tucker J. Marion 2015 Low volume technology beta (batteries, SW)

5. The Path to Validation © Tucker J. Marion 2015 Chassis: Lotus Batteries: Panasonic Lead Partner: Daimler Critical alliances and partners

6. © Tucker J. Marion 2015 The Minimally Viable Product (M.V.P.) How can you best create a viable, saleable prototype?How can you best create a viable, saleable prototype? PROTOTYPE Test and Validate Iterate and Refine Low-cost, lower risk learning cycles The term M.V.P. is courtesy of the work of Steve Blank (steveblank.com)

7. 7 https://31.media.tumblr.com/29c2f634b29aa4ec9d087e86b17f61b0/tumblr_inline_nl0a1lQL u11r9r6pj.jpg Functionality is key! © Tucker J. Marion 2015

8. The Road to M.V.P. Who do you need on your team?Who do you need on your team? Internal ResourcesExternal Resources Founding Team Board Members Mentors Service Providers Alliance Partners Freelancers

9. 9 © Tucker J. Marion 2015 The most successful new ventures use this approach…The most successful new ventures use this approach… Marion, T., Dunlap, D., & Friar, J. (2012). Instilling the Entrepreneurial Spirit in Your R&D Team: What Large Firms Can Learn from Successful Start-ups. Engineering Management, IEEE Transactions on, 59(2), 323-337.

10. 10 Hyper-agile and functional Teams © Tucker J. Marion 2015 Marion, T., Dunlap, D., & Friar, J. (2012). Instilling the Entrepreneurial Spirit in Your R&D Team: What Large Firms Can Learn from Successful Start-ups. Engineering Management, IEEE Transactions on, 59(2), 323-337.

11. © Tucker J. Marion 2015 Consistent, Hyper-Agile Team Opportunity Assessment Fast Concept Resource Allocation Validation Planning Small, Incremental Investment What is the opportunity? Does it tap new markets and customers? Does it include new business model and service innovation? Is it scalable? Test and Assess Can you rapidly develop a prototype or test case? If so, how? List steps and what tasks are needed… What internal or external resources can you use to develop and test the prototype? Who do you need to hire/partner? How much ($$$)? What B2B partners are needed? How will you validate the concept? How many test cases will be needed? Who can be the lead customer? Lean Innovation Framework