Innovation

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Innovation

  1. 1. lsoftware development e a n The Fastest Learner Wins Living with Black Swansmary@poppendieck.com Mary Poppendieck www.poppendieck.com
  2. 2. Agenda1. Compelling Offer Observing2. Immediate Connection Questioning3. Adoption Chain Networking4. Validated Assumptions2 Experimenting August 12 Copyright©2012 Poppendieck.LLC l e a n
  3. 3. Todd Park 2010 Harvard Graduate (Economics) Booz Allen Hamilton Consultant (Managed Care) Athenahealth (1997)  Maternity Clinic  Health Care Records  Very successful IPO Retirement (2007) US Health and Human Services CTO (2009) 2011 Artist Regina Holliday3 August 12 Copyright©2012 Poppendieck.LLC l e a n US Federal Government CTO (2012)
  4. 4. Agenda1. Compelling Offer Observing2. Immediate Connection Questioning3. Adoption Chain Networking4. Validated Assumptions4 Experimenting August 12 Copyright©2012 Poppendieck.LLC l e a n
  5. 5. Strategic Inflection Point Business goes on to new heights 10x change in some element of the business. What worked before doesn’t work now. The executives are the last to know.5 August 12 Copyright©2010 Poppendieck.LLC l e a n Business declines
  6. 6. Compelling Offer10X Improvement in some aspect of the offerSalesforce.com  SaaS gave a 10X reduction in installation and operating costsSkype  Peer-to-peer IP telephony for a 10X reduction in long distance chargesWikipedia  Open source collaboration for a 10X increase in the speed and a 100X reduction in cost for encyclopedia development and maintenanceDropbox  10X improvement in ease of use and safety for those who wanted to keep multiple devices in sync.YouTube  Cell phones gave a 10X improvement in capability to take casual videos,6 August 12 Copyright©2012 Poppendieck.LLC l e a n YouTube gave a 10X improvement in ease of sharing those videos. See also: http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2732
  7. 7. Working Backward PRESS RELEASE Heading – Working Backward Name the product in a way the reader (i.e. your target customers) will understand. Sub-Heading – 1. Write a Press Release Describe who the market for the product is and what benefit they get. One sentence only underneath the title. Summary – Give a summary of the product and the benefit. Assume the reader will not read anything else so make this good. Problem - Describe the problem your product solves. Solution – 2. Write a list of FAQ’s Describe how your product elegantly solves the problem. Quote from You – (and answers) A quote from a spokesperson in your company. How to Get Started – 3. Describe the Customer Describe how easy it is to get started. Experience Customer Quote – Provide a quote from a hypothetical customer that describes how they experienced the benefit. 4. Write a User Manual. Closing and Call to Action –7 http://www.allthingsdistributed.com /2006/11/working_backwards.html August 12 Copyright©2012 Poppendieck.LLC l e a n Wrap it up; give pointers where the reader should go next. http://www.quora.com/What-is-Amazons-approach-to- product-development-and-product-management
  8. 8. Exercise: Write a Press ReleaseInnovation Skill: ObservingWorking as a group, write a pressrelease for a product real or imaginary. 1. Aim the press release at PRESS RELEASE consumers of the product. Title – 2. Create a tag line to quickly Central theme (Tag line) – summarize the central theme. Summary (10X effect) – 3. Summarize the offer in Problem – terms of its10X effect. Solution – 4. Center your message on a Getting Started – single theme that will define what the product is and is not. 8 Call to Action – August 12 Copyright©2012 Poppendieck.LLC l e a n
  9. 9. Agenda1. Compelling Offer Observing2. Immediate Connection Questioning3. Adoption Chain Networking4. Validated Assumptions9 Experimenting August 12 Copyright©2012 Poppendieck.LLC l e a n
  10. 10. Release Cycle 6 MonthsQuick & Dirty Value Stream Map: Need a Need a Feature Feature Design Develop Harden UAT Release Cycle Release Cycle Release Cycle Value-Added Time Total Cycle Time Time Total Cycle Start Average Start End Development Model:  Releases are very painful  Avoid releases!10 August 12 Copyright©2012 Poppendieck.LLC l e a n Thanks to Kent Beck for his ideas on cadence.
  11. 11. Release Cycle Quarterly Hardening: 2 – 4 weeks Early integration testing becomes essential Typically: 2 – 4 week iterations Code from each iteration goes to integration testing Business issues (if software is sold/delivered to customers):  How to price and sell releases?  Which releases to support?  Supporting multiple branches11 August 12 Copyright©2012 Poppendieck.LLC l e a n can create a support nightmare
  12. 12. Release Cycle MonthlyNow you need:Hardening  3 daysCross Functional TeamVisualizationShort Daily MeetingsSBE/TDD really working! Works best for:  Software as a Service (SaaS) [Any download to local machines is pushed.]12 August 12 Copyright©2012 Poppendieck.LLC l e a n  Internal Software
  13. 13. Release Cycle Weekly/Daily/ContinuousKanban works wellIterations become irrelevant The teamEstimating is not very important is everyone.No branching – Develop on the trunkTest & deployment automation is essentialRapid cycles of learning drive portfolio decisions Things. Just. Work.  One or our large web-based customers has been deploying daily for five years!  Google: gmail deploys 2X/week13 August 12 Copyright©2012 Poppendieck.LLC l e a n  What is the fastest release cycle here?
  14. 14. Immediate Connection Bent Victor Our Inventing on Principle http://vimeo.com/36579366 Guiding Principle: People should not be told what to do. Combining Principles: Teams should adjust whatBent’s Guiding Principle: they are doing based on Creators need an what team members learn immediate connection with what they create. directly from their efforts.Bret Victor invents tools that enable people to understand andcreate. He has designed experimental UI concepts at Apple, interactivedata graphics for Al Gore, and musical instruments at Alesis. 14 August 12 Copyright©2012 Poppendieck.LLC l e a n
  15. 15. Exercise: Draw a Feedback Matrix Innovation Skill: Questioning I adjust what I do based on: Immediatevisibility of results 1. Have everyone at the table plot a point for a typical development team members. 2. Add additional points for members frominfo about results different functions. 3. Plot the ideal pointDelayed for team members working on that 15 Indirect information about consumers August 12 l e a n Direct connection with consumers Copyright©2012 Poppendieck.LLC compelling offer.
  16. 16. Agenda1. Compelling Offer Observing2. Immediate Connection Questioning3. Adoption Chain Networking4. Validated Assumptions16 Experimenting August 12 Copyright©2012 Poppendieck.LLC l e a n
  17. 17. The Age of the Platform Contributor Consumer17 August 12 Copyright©2012 Poppendieck.LLC l e a n Platform (infrastructure and rules)
  18. 18. Adoption Chain Innovators often forget Complementors! 3G Music? Repair? Books? Networks?The first MP3 Player The first 3G Phone Run-flat tires The first e-reader 1998 2002 Honda Odyssey 2005 2006 18 August 12 Copyright©2012 Poppendieck.LLC l e a n
  19. 19. Cost vs. Relative BenefitAdopters see value differently.Innovator’s Perspective Adopter’s Perspective Innovator ++ Relative ++ Benefit Product Distributor + Cost ++ Product Cost + Additional Retailer - Costs/Risks Consumer ++ +++ New New Old This adoption chain Product Product Product will not work! Benefit Benefit Benefit If any organization on the adoption chain perceives19 a negative value, the adoption chain is broken. August 12 Copyright©2012 Poppendieck.LLC l e a n The Wide Lens, by Ron Adner
  20. 20. Exercise: Evaluate the Adoption ChainInnovation Skill: NetworkingYou would like to develop a product with compelling valueand provide immediate connection between the productcreators and consumers. In order to achieve this, you need Adoption Chainthe cooperation of organizations within and outside of you Party 1 ++company that are not part of your immediate team. ++1. Make a list of the parties who must change the way they Party 2 + do things in order for the improvement to be successful.2. Look at the benefits to be gained and the cost of change Party 3 - from the perspective of each party. Party 4 ++3. Are there parties where the cost outweighs the benefit? +++4. What can be done to change the equation so the benefits 20 are greater than the cost for that party? August 12 Copyright©2012 Poppendieck.LLC l e a n
  21. 21. Agenda1. Compelling Offer Observing2. Immediate Connection Questioning3. Adoption Chain Networking4. Validated Assumptions21 Experimenting August 12 Copyright©2012 Poppendieck.LLC l e a n
  22. 22. Validated AssumptionsOnly a few large companies have been able to sustain growthover time by coming up with successful new disruptivebusinesses. These companies share a common practice: Theyhave systems in place that encourage small, cross-functionalemployee teams to conduct frugal experiments. Scott Cook, IntuitValidated Assumptions:1. List assumptions that must be true in order for the product to succeed. a) Which ones are most important?2. Devise experiments to determine whether critical assumptions are true. a) Create a measurable hypotheses that will demonstrate clear cause and effect. b) Run many, quick experiments to test the hypotheses. Lean Startup: 1. Start with a Business Success Model a) Success metrics which demonstrate clear cause and effect. 2. Establish a baseline – with a Minimum Viable Product l e a n 3. Target every initiative at improving a success metric 4. Do not add capabilities without validation (eg. split test) 22 August 12 Copyright©2012 Poppendieck.LLC
  23. 23. Experimental Approach Site visitors are randomly A assigned to see version A or B B Don’t Miss this excellent paper: Online Experimentation at Microsoft by Kohavi , Crook, & Longbotham Presented at KDD 2009 (Knowledge Discovery & Data Mining) http://exp-platform.com/expMicrosoft.aspx14.5% Conversion B is better than A 18.6% Conversion Amazon.com Case Study 1. Most of the time the guess about how customers Amazon’s Greg Linden created a prototype will behave will be wrong – even for experts! which gave personalized recommendations based on items in the shopping cart. The feature 2. Test early – don’t waste a lot of time on in- was opposed by a marketing SVP who told Greg depth analysis or planning the perfect design. to stop, but Greg created a test anyway. He was 3. Test often – most experiments don’t tell much. allowed to pushed it live. The feature ‘won’ by such a wide margin that it was immediately 4. A failed experiment is not a failure – it’s a l e a n adopted, increasing sales by an estimated 3%. learning opportunity. The only failures are failure http://glinden.blogspot.com/2006/ 04/early-amazon-shopping-cart.html to learn or failing to conduct a good experiment. 23 August 12 Copyrignt©2011 Poppendieck.LLC
  24. 24. Why?Impact MapsWhy? Who? Who?Who?How? How? How?What? What? What?Connections=Assumptions24 August 12 Copyright©2012 Poppendieck.LLC l e a n Images and ideas from: Impact Mapping Handbook by Gojko Adzic – Available soon Check out:www.impactmapping.org
  25. 25. Exercise: Find andValidate AssumptionsInnovation Skill: ExperimentingValidate assumptions for your compelling offer.1. Draw an Impact Map. Impact a) Start with the goal – make it measurable. Map b) Who needs to be involved? c) How will they contribute? Why? d) What needs to be done to support each contribution? Who?2. List the assumptions connect each node on the map. How?3. Prioritize the assumptions; select the top two. What?4. How will you measure these two assumptions? Assump- tions?5. 25 Devise an experiment to validate each assumption. August 12 Copyright©2012 Poppendieck.LLC l e a n
  26. 26. lsoftware development e a n Thank You! More Information: www.poppendieck.commary@poppendieck.com Mary Poppendieck www.poppendieck.com

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