innovation in the uk what it takes

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Concept to Commercialisation - what it takes ! Peter Cochrane COCHRANE a s s o c i a t e s cochrane.org.uk ca-global.org Monday, 28 March 2011

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A practical walk through the process of doing a start up in the UK v the USA experience. Contrasts the different attitudes, success and failure mechanisms.

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Page 1: Innovation in the uk   what it takes

Concept to Commercialisation- what it takes !

Peter Cochrane COCHRANE a s s o c i a t e s

cochrane.org.ukca-global.org

Monday, 28 March 2011

Page 2: Innovation in the uk   what it takes

What it takes - a common misconception!

100%

80%

60%

40%

20%

0%

Energy Required

Idea Beta Alpha Gettingto

Market

~0.1%~1%~5%

~95%

Monday, 28 March 2011

Page 3: Innovation in the uk   what it takes

What it takes - the actuality !

100%

80%

60%

40%

20%

0%

Energy Required

Idea Beta Alpha Gettingto

Market

~0.1% ~1% ~5%

~95%

Monday, 28 March 2011

Page 4: Innovation in the uk   what it takes

How will it fit in the market ?

Monday, 28 March 2011

Page 5: Innovation in the uk   what it takes

Business spectrum...World Economy

1M 10M 100M 1Bn 10Bn 100Bn 1000Bn

Ms

100ks

10ks

1ks

100s

10s

1

Monday, 28 March 2011

Page 6: Innovation in the uk   what it takes

Business spectrum...World Economy

1M 10M 100M 1Bn 10Bn 100Bn 1000Bn

Ms

100ks

10ks

1ks

100s

10s

1

Very Easy

Very Hard

Almost Impossible

Monday, 28 March 2011

Page 7: Innovation in the uk   what it takes

Business spectrum...World Economy

1M 10M 100M 1Bn 10Bn 100Bn 1000Bn

Ms

100ks

10ks

1ks

100s

10s

1

Very Easy

Very Hard

Almost Impossible

Princes TrustLife Style

GoogleFaceBook

Apple, BP MSoft, Shell

Monday, 28 March 2011

Page 8: Innovation in the uk   what it takes

Worlds apart...

982M Land Area Hectares 24M

300M Population 65M

NY ~8M London

12,880G$ GDP 1,260G$Monday, 28 March 2011

Page 9: Innovation in the uk   what it takes

Worlds apart...

Life StyleGolf Course

Build to SellMake money

& retire

Build to Dominate

Build for fun to change &

challenge

Monday, 28 March 2011

Page 10: Innovation in the uk   what it takes

Worlds apart...

Life StyleGolf Course

Build to SellMake money

& retire

Build to Dominate

Build for fun to change &

challenge

Life StyleGolf Course

Build to SellMake money

& retire

Build to Dominate

Build for fun to change &

challenge

Monday, 28 March 2011

Page 11: Innovation in the uk   what it takes

Worlds apart...

Monday, 28 March 2011

Page 12: Innovation in the uk   what it takes

Worlds apart...

>600kpa >400kpa

1980 = 2 x Starts/Year/Head of Population

2010 = 3 x Starts/Year/Head of Population

New Start Ups

Monday, 28 March 2011

Page 13: Innovation in the uk   what it takes

Worlds apart...

>600kpa >400kpa

1980 = 2 x Starts/Year/Head of Population

2010 = 3 x Starts/Year/Head of Population

New Start Ups

~10% year 1~15% year 2~80% year 10

Failure Rate~18% year 1~30% year 2~95% year 10

Monday, 28 March 2011

Page 14: Innovation in the uk   what it takes

How come?

Monday, 28 March 2011

Page 15: Innovation in the uk   what it takes

Bad Money!

- short termism- expensive- punitive deals- self interested- no business support- no value add

- supreme arrogance/know better

Monday, 28 March 2011

Page 16: Innovation in the uk   what it takes

Poor Management!

- inexperienced- unprofessional- stubborn- stupid- believing your own BS- refusing to step aside

- corrupt

Monday, 28 March 2011

Page 17: Innovation in the uk   what it takes

- missing targets- poor customer relationship- under resourcing- running out of money

Poor Management!

Monday, 28 March 2011

Page 18: Innovation in the uk   what it takes

Poor Management!

Monday, 28 March 2011

Page 19: Innovation in the uk   what it takes

Wrong Business Model

Monday, 28 March 2011

Page 20: Innovation in the uk   what it takes

Wrong Business Model

Monday, 28 March 2011

Page 21: Innovation in the uk   what it takes

Bad Idea

Monday, 28 March 2011

Page 22: Innovation in the uk   what it takes

Slow Failure

Monday, 28 March 2011

Page 23: Innovation in the uk   what it takes

Technology Failure

Monday, 28 March 2011

Page 24: Innovation in the uk   what it takes

Fierce Competition

Monday, 28 March 2011

Page 25: Innovation in the uk   what it takes

So, what makes innovation fly ?

A good idea A good leader & a good team

A seductive business plan

Supportive investors

Monday, 28 March 2011

Page 26: Innovation in the uk   what it takes

Good mentors !

Monday, 28 March 2011

Page 27: Innovation in the uk   what it takes

An acceptance that it all looks like this !

Activity Energy

Early StageChaos

Emergenceof Order

Clear Productand MarketDirection

Monday, 28 March 2011

Page 28: Innovation in the uk   what it takes

AND of course...timing & luck !

Monday, 28 March 2011

Page 29: Innovation in the uk   what it takes

Receptive customers help too!

Big Problem Desperation Lots of Money & Panic

Monday, 28 March 2011

Page 30: Innovation in the uk   what it takes

What stops innovation ?

Old minds Old industry Short Termism Destructive investors

Monday, 28 March 2011

Page 31: Innovation in the uk   what it takes

We need a visionaries and risk takers...

...but there is a fine line between calculated risks and doing something really dumb!

Monday, 28 March 2011

Page 32: Innovation in the uk   what it takes

COCHRANE a s s o c i a t e s

cochrane.org.ukca-global.org

Monday, 28 March 2011