1. Michelin’s startup journey…
…gaining traction in a dynamic space
Johannes Mutzke
Global Incubator Program Office
Michelin Group

2. WHY?
WHAT?
WHERE?
HOW?
So what?

4. Back to our roots…
“Innovation Dynamic”
“Innovation is our main growth driver, as it has been since our beginning. But, it’s everyone’s business, and we must do everything possible to unleash the creative capabilities of Michelin employees.”
– Jean-Dominique Senard, Managing Partner

5. WHY?
WHAT?
WHERE?
HOW?
So what?

6. A renewed focus on innovation…
“Innovation Dynamic”
Corporate Innovation Board
Innovation Strategy, Priorities & Decisions
Prospective
Inputs on Long-Term Trends & Scenarios in the Market & Environment
Future Focus
(Inputs)
R&D + Product Lines
Innovation in our Core Business
Incubator
New Business Activity Beyond our
Core Business
(The Machine)
Innovation Processes
InnovUp
Generating & Collecting Ideas to Answer a Specific Question
Participatory Ideation
(Inputs)
InnovaGo
Collecting Spontaneous Ideas from Employees

7. The rationale for the incubator…
Technology
Desired Path
Extensive benchmarking with other companies has let to significant learnings & insights…
Source: inspired by EADS

8. Our mission… Mission: 5 Innovation Domains:
In the broad mobility space, the mission of the IPO is, to seek, promote, develop and deliver, novel business activities, beyond our core business
which will create value and contribute to profitable growth for the Groupe.
It is expected this mission will increase the innovation capability of the Michelin Groupe.
Alternative Tires
Services
5 Innovation Domains:
Flexible Composites
Travel Agent
Maintenance Services
Farm to Market Logistics
Road Mobility Web Services
Tire
Mobility Solutions, connectivity, others …

9. WHY?
WHAT?
WHERE?
HOW?
So what?

10. Our global activities…
Q1 2015
Q4 2013
Q2 2014
UNITED STATES
Internal: 5 start-ups + 1 venture (ex. Tweel)
External: Ramp-up collaboration
ASIA
Internal: 3 start-ups
External: India Angel Network
EUROPE
Internal: 5 start-ups
External: SymbioFC, Revisersavoiture.com, Emerald Fund, Ecomobility Fund

11. An adaptive investment approach…
Gaining an understanding of the roles and limitation of each. Corporates generally struggle to create startups, but are capable of accelerating them.
Entrepreneurial (“Home Grown”)
Minority Stake
(“Land & Learn”)
Majority Stake or Acquisition
(“Strategic Move”)

12. WHY?
WHAT?
WHERE?
HOW?
So what?

13. Example of “drill-down”…
Our approach for execution…
A process built for maturation and progressive de-risking of concepts
Seek & Promote
Develop & Deliver
IPO LEADERSHIP
Buy
Grow
Example of “drill-down”…
Initiatives
Ventures
Corporate Growth
Early Stage
Investment (Min, Maj, 100%)
Business-/Field-
Experimentation
(”Prove It”, Early Stage)
Growth & Acceleration
Make
Entrepreneurial

14. Michelin Corporate Leadership Incubator Program Office (IPO)
Supporting organization…
Michelin Corporate Leadership
Incubator Program Office (IPO)
Domain #1
Domain #2
Domain #3
Geo-Zones
North America
Europe
Asia
Central Product Lines

15. WHY?
WHAT?
WHERE?
HOW?
So what?

16. People & process: entrepreneurship in a mature organization…
Business Activity
Sustainers
Scalers
Salvagers
Typical People Profile in a Mature Organization
Infusing org with people-capabilities
Starters
Time
Source: inspired by Proctor & Gamble, Futureworks

17. Fast, Consistent, Flexible
People & process: 5 conditions for a successful “incubation funnel”
Vision & Championing
(buy-in, commitment, support, protection, faith)
Focus & Sponsorship
(clear strategy, core business alignment, verticals)
Fast, Consistent, Flexible
Adoption/
Integration/Pull
(onboarding, stakeholder management, avoid orphans & “island of abandoned toys”)
Connectivity
(partners, deals, internal- & external- ecosystem)
Support & Control/Governance
(coaching/mentoring, process,
birth & death rate, “nesting plan”- people deliverables)

18. Summary of lessons learned “on the journey”…
“presence” over immediate return
It’s a people business – “compassion & mindshare”
Know what you bring to the party…and what you don’t – avoid becoming known as a complicated partner
Realize the role and limits of internally-oriented activities – go outside for the rest
Adjust internal processes to “play the game you’re in” (…speed, agility, etc.)
Be very clear on desired strategic outcomes & ambitions – design your business model accordingly
Manage stakeholders “aggressively” and preserve delicate balance between autonomy and relevance
gazelle or elephant?
aquarium beside the ocean
aircraft carrier vs speedboat
what are you hunting?
balancing act…

19. Michelin’s startup journey…
THANK YOU
Michelin’s startup journey…
…gaining traction in a dynamic space