How to innovate in large organizations with a three-maxima model of management. Looks at Lean Startup and other business models (Innovator's Dilemma, Three Horizons) and why large organizations resist change.
Considers the impact of technology that makes small batches possible, and why this in turn makes experimentation easier, shifting the key competitive advantage from scale to cycle time.
Presented on April 10 at Lean UX NYC
Business research proposal mcdo.pptxBusiness research proposal mcdo.pptxBusin...
Tilting at Windmills: Intrapreneurship in large organizations from Lean UX NYC 2014
1. Tilting at Windmills
Innovation in large organizations.
Photo by Echiner on Flickr. Used under a creative commons license. https://
www.flickr.com/photos/decadence/249922560
Thursday, April 10, 14
10. How to perpetuate something.
Photo by Kamal Hamid. Used under a creative commons license. https://
www.flickr.com/photos/evergreenkamal/395448039
Thursday, April 10, 14
16. The innovation
problem isn’t new.
Picture by James Whatley on Flickr. Used under a Creative Commons license.
https://www.flickr.com/photos/whatleydude/6202872135
Thursday, April 10, 14
17. Companies die because they fail to
move to new business models.
Thursday, April 10, 14
18. Clay Christensen, The Innovator’s Dilemma
CostperMB
$1000
$100
$10
$1
Time
The
Innovator’s
Dilemma
Thursday, April 10, 14
19. Clay Christensen, The Innovator’s Dilemma
CostperMB
$1000
$100
$10
$1
Time
14”
M
ainfram
e
The
Innovator’s
Dilemma
Thursday, April 10, 14
20. Clay Christensen, The Innovator’s Dilemma
CostperMB
$1000
$100
$10
$1
Time
14”
M
ainfram
e
8”
M
inicom
puter
The
Innovator’s
Dilemma
Thursday, April 10, 14
21. Clay Christensen, The Innovator’s Dilemma
CostperMB
$1000
$100
$10
$1
Time
14”
M
ainfram
e
8”
M
inicom
puter
5.25”
D
esktop
The
Innovator’s
Dilemma
Thursday, April 10, 14
22. Clay Christensen, The Innovator’s Dilemma
CostperMB
$1000
$100
$10
$1
Time
14”
M
ainfram
e
8”
M
inicom
puter
5.25”
D
esktop
3.5”
N
otebook
The
Innovator’s
Dilemma
Thursday, April 10, 14
27. $1000
$100
$10
$1
Time
8” 5.25”
The new market
has different
criteria for
success, which
are uninteresting
to incumbents.
Storage
capacity
Thursday, April 10, 14
28. $1000
$100
$10
$1
Time
8” 5.25”
The new market
has different
criteria for
success, which
are uninteresting
to incumbents.
Storage
capacity
Portability
Thursday, April 10, 14
29. Amazon Web Services and the
server value network
Server computing
• Density
• Heat
• GHz
• MIPS
Capex, financing,
TCO, ROI
CIO, enterprise IT
Value
criteria
Money
Buyer
Thursday, April 10, 14
30. Amazon Web Services and the
server value network
Server computing
• Density
• Heat
• GHz
• MIPS
Capex, financing,
TCO, ROI
CIO, enterprise IT
Value
criteria
Money
Buyer
Cloud computing
• Instances
• Objects
• Spinup time
• Scaleout
Opex, demand, time
to result
CTO, coder, app owner,
line of business, startup
Thursday, April 10, 14
31. HP and Dell
missed the
disruption and
the change in
the value
network.
$1000
$100
$10
$1
Time
Thursday, April 10, 14
32. HP and Dell
missed the
disruption and
the change in
the value
network.
$1000
$100
$10
$1
Time
Physical servers:
MIPS, heat,
density, cost per
cycle.
Sold to CIOs
Thursday, April 10, 14
33. HP and Dell
missed the
disruption and
the change in
the value
network.
$1000
$100
$10
$1
Time
Physical servers:
MIPS, heat,
density, cost per
cycle.
Sold to CIOs
Cloud computing:
Opex cost, time to
spin up, scaleout,
objects stored.
Sold to developers,
marketers, startups
Thursday, April 10, 14
34. HP and Dell
missed the
disruption and
the change in
the value
network.
$1000
$100
$10
$1
Time
Elastic resources mean we
can scale up to huge, and shrink
costs when not in use.
Thursday, April 10, 14
41. You are a pariah.
Bad listener: Wilfully ignore feedback from your best customers.
Thursday, April 10, 14
42. You are a pariah.
Bad listener: Wilfully ignore feedback from your best customers.
Cannibal: If successful, destroying existing revenue streams.
Thursday, April 10, 14
43. You are a pariah.
Bad listener: Wilfully ignore feedback from your best customers.
Cannibal: If successful, destroying existing revenue streams.
Job killer: Automation & lower margins are your favorite tools.
Thursday, April 10, 14
44. You are a pariah.
Bad listener: Wilfully ignore feedback from your best customers.
Cannibal: If successful, destroying existing revenue streams.
Job killer: Automation & lower margins are your favorite tools.
Security risk: Advocate of transparency, open data, communities.
Thursday, April 10, 14
45. You are a pariah.
Bad listener: Wilfully ignore feedback from your best customers.
Cannibal: If successful, destroying existing revenue streams.
Job killer: Automation & lower margins are your favorite tools.
Security risk: Advocate of transparency, open data, communities.
Narcissist: Worry constantly about how you’ll get attention.
Thursday, April 10, 14
46. You are a pariah.
Bad listener: Wilfully ignore feedback from your best customers.
Cannibal: If successful, destroying existing revenue streams.
Job killer: Automation & lower margins are your favorite tools.
Security risk: Advocate of transparency, open data, communities.
Narcissist: Worry constantly about how you’ll get attention.
Slum lord: Sell to those with less money, deviants, and weirdos.
Thursday, April 10, 14
47. But there’s hope.
Photo by Tom Grydeland on Flickr. Used under a creative commons license. https://www.flickr.com/photos/thunderchild5/225675725
Thursday, April 10, 14
49. 3D printing.
Photo by Keith Kissel on Flickr. Used under a creative commons license. https://www.flickr.com/photos/kakissel/6165114664
Thursday, April 10, 14
51. Social platforms.
Photo by Michael-Davis Burchat on Flickr. Used under a creative commons license. https://www.flickr.com/photos/curious_e/10473440064
Thursday, April 10, 14
59. Three kinds of innovation
Sustain/core
(optimizing for more of the
same)
Thursday, April 10, 14
60. Three kinds of innovation
Sustain/core
(optimizing for more of the
same)
Improve along
current metrics...
Thursday, April 10, 14
61. Three kinds of innovation
Sustain/core
(optimizing for more of the
same)
Improve along
current metrics...
...or alter
the rate of
improvement
Thursday, April 10, 14
62. Three kinds of innovation
Sustain/core
(optimizing for more of the
same)
Innovate/adjacent
(introduce nearby product,
market, or method)
Improve along
current metrics...
...or alter
the rate of
improvement
Thursday, April 10, 14
63. Three kinds of innovation
Sustain/core
(optimizing for more of the
same)
Innovate/adjacent
(introduce nearby product,
market, or method)
Improve along
current metrics...
...or alter
the rate of
improvement
Switch to a new
value model
Thursday, April 10, 14
64. Three kinds of innovation
Sustain/core
(optimizing for more of the
same)
Innovate/adjacent
(introduce nearby product,
market, or method)
Disrupt/transform
(Fundamentally reframing
the business model & value)
Improve along
current metrics...
...or alter
the rate of
improvement
Switch to a new
value model
Thursday, April 10, 14
65. Three kinds of innovation
Sustain/core
(optimizing for more of the
same)
Innovate/adjacent
(introduce nearby product,
market, or method)
Disrupt/transform
(Fundamentally reframing
the business model & value)
Improve along
current metrics...
...or alter
the rate of
improvement
Switch to a new
value model
Change the business
model entirely
Thursday, April 10, 14
82. Twitter’s 140-character
limit isn’t arbitrary.
It’s constrained by the size of SMS
(160 characters) and username (20
characters.)
http://i.i.cbsi.com/cnwk.1d/i/tim/2011/11/18/
sms_screen_twitter_activity_stream_270x405.png
Thursday, April 10, 14
88. The problem was framing:
Blockbuster thought it was in the
video store management business.
Netflix realized it was in the
entertainment delivery business.
Thursday, April 10, 14