How business models can accelerate innovation.

Lessons in parenting and teenage development

Fred van Ommen, SVP Innovation Excellence at Philips, was speaking at a conference in Barcelona last month  (the 2nd Annual Open Innovation in the Life Science Sector to be exact). His chosen topic was how business models can accelerate innovation.  The Life Science Sector is an area that Fred is passionate about . He ran the MRI (magnetic resonance imaging ) business at Phillips for six years, and during that time he doubled the business,  and he did that  by  changing the design of the outside of the machine. Fred realised that the key to success was the anxiety that an MRI produced in people, not the technology inside the MRI.  People are afraid when an MRI  machine makes a  noise and they are also scared by the lack of mobility. Fred’s success was because he considered the human side of the product.  At Barcelona, Fred and his colleague, Corina Kuiper, took this one stage further when they compared business model innovation to parenting and teenage development. Their starting point was that as a parent you have to be consistent, and with innovation you have to have consistent strategy over time.  

The following comparisons flowed naturally after that: 

As a parent you should provide long term, staged financial support, but don’t spoil them (boxed cash budgets):

• Set boundaries but within the boundaries give freedom to operate (incubators);
• Be patient, let them grow up and be realistic in your expectations (all big businesses start small);
• Let them borrow what you have, who and what you know but don’t prescribe how to use it. Allow them to forget your ‘logic’;
• Challenge and protect; be a coach not a drill sergeant;
• Let them learn from mistakes (fail fast and cheap) - there is no substitute for real life experience;
• Encourage them to date with people outside the family and network with new people to find new ways/logics;
• It is not about what they say but what they do that makes the difference;
• Don’t use carrot and stick but build on intrinsic motivation;

As a teenager you must discover your strengths and where you excel (sustainable uniqueness and positioning):

• Start with what you see in the world, not with yourself (outside in);
• Define how you will be successful; what is your DNA (business model);
• The proof of the pudding is in the eating (learning by doing);
• Pilot to learn/experiment, create stepping stones and leverage what you have;
• It is not an one-man-act but create networks and co-create with friends and share joy and sorrow (partnership/co-creation);
• It is all about what people do, not what they say;
• Look for people outside your family that can act as a mirror for your most burning questions and who keep you honest (advisory board);
• Keep your options open as you will find out you need a plan B because plan A didn’t work;
• Translate your dream in what you need to do today and accelerate.