corporation innovation oct 2017
TRANSCRIPT
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The Coca-Cola Company’s creation of Red Garage Ventures to Drive Internal
Disruption
Franki Chamaki
Founding Director Red Garage Ventures & HIVERY
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Classified – Confidential | Page 2
Going to cover…
1. Importance of clear innovation goal
2. Leverage internal assets to create a competitor advantage
3. Experiment (i.e. Learn by doing)
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1. Incremental innovation:
Sometimes called continuous
improvement.
2. Radical
innovation: Sometimes called
revolutionary, typically leveraging the same
business model.
3. Transformational
innovation: Sometimes called
disruptive innovation -this changes strategy.
Creates a new business model.
Return
Risk
Existing Business
Model
(70%)
New Business
Model
(10%)
Leveraging existing
Business Model
(20%)
Classified – Confidential | Page 3
Where to play? Define your Innovation Agenda
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Risk
Lean, Six Sigma, Continuous
improvement etc.
Partially known Unknown
Return
Known
Classified – Confidential | Page 4
Horizon 1
Defining your innovation agenda helps define your approach…
Pilots, Agile, Scrum etc.
Lean Start-up (a lot of experimentation)
This means different type of governance regimes, execution approaches and more importantly different kinds of KPIs/reporting and incentives
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Cokes Assets + Start up thinking
=New business model
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Managers not
Explorers
Version 1.0
Inside not
outside
Version 2.0
Connected not
depended
Version 3.0
Learning by Doing
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Sydney was the first prototype
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Coke invests in founders, helps set up a separate independent entity
provides seed funding, becomes the first customer, and then takes a minority share if and when the
business becomes viable.
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Recruitment &induction
Senior levelSupport Independence
Internal Advisor
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Buenos Aires
Rio de Janeiro
Mexico City
San FranciscoBerlin
Bangalore
Singapore
Sydney
Tel Aviv
London
Shanghai
Coca-Cola Entrepreneurial Program
“Founders program” was launched in 2013 to “co-create” with Coke solve big problems
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Launch• Coke scouts and
selects 1-2 founders
• Funders contract / convertible note
• “Deep immersion” of challenges and assets
• Founders launch new company (startup)
• Startup begins searching for problem/solution fit
• Coke supports lean startup andtracks progress
• Develop commercial agreements to scale solution across Coke
• Startup scales the company—beyond Coke
• Coke converts or chooses to follow-on in additionalfunding rounds
• Collaborate with Coke to test assumptions
• Startup iterates on product, expands customers beyond Coke
• Coke helps connect relationships with external investors and media
Build Prove ScaleSet-up• Coke commits to
seed funding and
• Appoints a local Business Unit (BU) Advisor
Coca-Cola Entrepreneurial Program
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Buenos Aires
Rio de Janeiro
Mexico City
San FranciscoBerlin
Bangalore
Singapore
Sydney
Tel Aviv
London
Shanghai
Coca-Cola Entrepreneurial Program
In December 2016 the program closed for new ventures. Re-focus back to the core business
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Circular
Economy
Distribution
Big DataWelling
Hydration
Esens
Asset:
Expertise &
relationships
Asset:
Big dataAsset:
Waste
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Circular
EconomyDistribution
Big DataWelling
Hydration
Esens
Innovation:
Design
Thinking
Innovation:
Hackathon
Innovation:
Trend &
collaboration
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Circular
Economy
Distribution
Big DataWelling
Hydration
Esens
Focus:
Science
Focus: Scale Focus: Model
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① Define the agenda
② Think assets as
platform
③ Learn by doing
④ Just on the edge⑤ Skin in the game