Wattbox Innovating Innovation

All content © Wattbox Holdings 2009 unless otherwise stated, and may not be reused without advance permission in writing from Watthox Holdings Pty Ltd Innovation as process … Innovation as mindset –Innovation is more than creativity, brainstorming & ideas –Innovation is about combining vision: “what we want to do” choice: “what we could do” constraints: “what we can do” –to create: reality: “what we do” What is innovation? Innovation is doing NEW things in order to achieve desired results Setting GoalsExpanding Options Selecting ProjectsImplementing ChangesAchieving Value

All content © Wattbox Holdings 2009 unless otherwise stated, and may not be reused without advance permission in writing from Watthox Holdings Pty Ltd Where is it needed? If the question is “how the hell do we … ?” then the answer is probably “Innovation”! EXCO CEO Directors Managers Troops What difficult challenge are YOU facing? –deliver exceptional returns sustainably over time? –respond to challenges beyond ‘business as usual’? –maintain position vs. competitive market evolution? –achieve budget despite unexpected circumstances? –solve specific operational problems & issues?

All content © Wattbox Holdings 2009 unless otherwise stated, and may not be reused without advance permission in writing from Watthox Holdings Pty Ltd What is your focus? How to match and exceed expectations … –shareholders? –executive management? –other stakeholders? The Offering Lifecycle Growth Time Performance Expectations Continuous Innovation Source: Standard “S-Curve” model – origin unknown How to find, select and implement new business value streams?

All content © Wattbox Holdings 2009 unless otherwise stated, and may not be reused without advance permission in writing from Watthox Holdings Pty Ltd Major Bank: had to stop innovating – or radically change organisation! It’s difficult ! How the hell do we … –come up with better ways of doing things especially when we pay our people to do them this way –decide which is the BEST way for us to do them especially when we have to allocate budget & resources –manage the process of getting from idea to value especially when we have to fit in with current business agendas –migrate operations across to the new business models especially when we have to change culture, process, structures, etc In short – how the hell do we innovate?? We need to INNOVATE the way we innovate!

All content © Wattbox Holdings 2009 unless otherwise stated, and may not be reused without advance permission in writing from Watthox Holdings Pty Ltd Can you ? Corporate decisions have to consider –weighing opportunity against risk – esp. threat to existing business –protecting existing interests and avoiding cannibalisation –discounting risky future value vs. certainty of current operations –protecting brand, image & shareholder positioning Few corporates are well-suited to internal innovation! Therefore - > corporate structures have to encourage –dominance of operations & implementation mindsets –risk-averse profiles & failure-averse assessments –input-based vs. value-based remuneration structures –risk reduction via stability, reliability, predictability, momentum, scale Innovating new business value is fundamentally different –need to make big waves to create brand, attract customers & investors –innovation & strategy mindsets as well as implementation & operations –opportunity outweighs threats; value is more important than input –risk management via speed, flexibility, manoeuverability

All content © Wattbox Holdings 2009 unless otherwise stated, and may not be reused without advance permission in writing from Watthox Holdings Pty Ltd Wattbox is a network of capabilities, built to achieve value via the 4 Business Mindsets Each has its own philosophies, approaches, tools, strengths, weaknesses -> “culture” –each is a different “language”; how to create cross-mindset co-operation & understanding? Our methodologies utilise the best mindsets & tools at each stage –we create a shared “vocabulary” through well-defined tasks, templates, etc We can ! Implementation Strategy Ideation Operations VALUE identifying better business models deciding which are the BEST ones managing the process from idea 2 value migrating to new activities, systems, etc Using the best capabilities available to achieve value together Advisory & assistance projects Entrepreneurial projects Consulting Ventures

All content © Wattbox Holdings 2009 unless otherwise stated, and may not be reused without advance permission in writing from Watthox Holdings Pty Ltd We can do innovation process Solution Options Project Selection Strategic & Operational Context Staged assessment & selection of potential change projects Typical Innovation Offering Radical Innovations Delivery Projects Budget & resource allocation; Project portfolio management; Project capabilities resourcing; Progress monitoring & control; Project business case achievement Offering Evolution Delivery Projects Maintenance & Enhancement Delivery Projects Projects you want to do & can do now (based on risk & capacity) Projects you want to do but can’t do now (because of risk &/or capacity) Best Practice: Separate Innovation Processes, Portfolios & Resource Pools Advanced Innovation Offering Creative thinking Organisational facilitation Opportunity identification Market & customer insight Strategic insight Operations insight Problem Prioritisation Vision, foresight Strategy, criteria Goals, targets, budgets, metrics Consulting

All content © Wattbox Holdings 2009 unless otherwise stated, and may not be reused without advance permission in writing from Watthox Holdings Pty Ltd We can deliver innovation value Client Innovation Project Portfolio Projects client would do anyway Colour code by risk status Greater innovation capacity – at lower cost & risk to client Projects client would like to do but can’t internally: –higher risk –insufficient capacity Projects owned and controlled by client; Accessing Wattbox Network capabilities & resources Projects undertaken jointly by client and Wattbox Network members as “external” ventures Projects undertaken by client in-house

All content © Wattbox Holdings 2009 unless otherwise stated, and may not be reused without advance permission in writing from Watthox Holdings Pty Ltd Get Wattbox on YOUR team! Project and/or Venture collaborations –Involvement structured on a case-by-case basis –Please contact us with further details Retainer basis –General Advisory (from 2 hours to 1 day per week) –Structured Offerings (typically 2 hours per week) Horizon –planning process so your organisation can ‘take it to the next level’ RedSky –foresight process – identify and manage future opportunities & risks SucceedBed –Innovation portfolio & pipeline management Embryonix –Innovation project delivery … Idea 2 Value Website: