Pattern of Innovation

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Innovation follows a pattern defined by extensive research. Knowledge of the pattern will allow you to discover and guide innovation at your company.

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Pattern of Innovation

  1. 1. Pattern of Innovation Riak Usage at BestBuy.com
  2. 2. 10 Second Background CheckJoel Crabb, Chief Architect, BestBuy.comWhat I do:• Build scalable business platforms• Build developer-focused work environments• Innovate (hopefully)
  3. 3. AgendaDefine InnovationInnovation is a PatternThe Pattern at BestBuy.comHow Riak supported the Pattern
  4. 4. “Lives are about imagination and what we can create.”~ Ed FreemanLecture on Corporate Social Responsibility6/2011
  5. 5. Innovation DefinedThe products and/or technologies that change their industry or create new industries.
  6. 6. What is Innovative? Ideas are innovativeProducts are the innovation
  7. 7. Innovative IdeasExample:Rethink the game of fetch with your dog
  8. 8. Product Innovation
  9. 9. Whats Not Innovative?Incremental ChangeCategory Expansion Copying
  10. 10. Indoor Chuckit - Category Expansion
  11. 11. Innovation Innovation is scored by the marketplace Innovation is defined after products are createdInnovation changes industries or
  12. 12. The Consumer Decides Which Products are Innovations
  13. 13. Innovation Will HappenAt Best Buy, weve decided that we must differentiate ourselves in core ECommerce technologyWe have been a retail companyWe will be a technology company that does retail
  14. 14. Why Ecommerce Technology?Clayton Christensen on architecture:“Companies that compete with proprietary, interdependent architectures must be integrated”~ Christensen, Clayton, The Innovator’s Solution, p. 129
  15. 15. Where do you start?
  16. 16. Recognize that innovation has a patternLook for the pattern inside your own company
  17. 17. The Pattern of InnovationThe Innovation JourneyAndrew Van de VenDouglas E. PolleyRaghu GarudSankaran Venkataraman
  18. 18. Innovation Periods Initiation DevelopmentImplementation/Termination
  19. 19. Initiation Period Gestation Shock Plans
  20. 20. Initiation Period - Gestation Particular ideas resurface and are rehashed for years, often with many variations Multiple coincidental developments set the stage for an innovative product or business
  21. 21. Gestation - BestBuy.comThe operations team had speculated for 5-6 years on how to remake its ECommerce systemsDevelopment was extremely difficultA Web Architecture team was formed in the Dotcom business unit in 2010
  22. 22. Finding the PatternWhat ideas constantly resurface in your company over the span of years?“Many new innovative ideas may be generated but are not acted on in an organization until some form of shock occurs. Shocks served to concentrate attention and focus the efforts of diverse stakeholders in the organization.”~ Van de Ven, p. 28-29
  23. 23. Initiation Period - Shock internalShocks are incidents either or external that cause the company to change how it evaluates ideasThe company must change its business model and create new products to survive
  24. 24. Shock - BestBuy.comShockto theSystemInnovativeIdeasEmerge
  25. 25. Finding the Pattern Are you the champion?"During opportune moments, these champions offered their organizations an idea or project as the vehicle to solve a crisis or exploit a commercial opportunity."~ Van de Ven, p. 27
  26. 26. Initiation Period - Plans Also called the Roadshow orFinding executive sponsorship The idea has created enough momentum that you are nowplanning the budget and roadmap
  27. 27. Plans - BestBuy.comWe developed financials and a roadmap to migrate off our proprietary system in 3 yearsTo get organizational commitment we promised to complete the project in 18 months
  28. 28. Plans - Reality“ A second consequence of the initial investment process is that it created unattainable performance expectations for most innovation projects studied”~ Van de Ven, p. 30
  29. 29. Finding the Pattern Are you truly passionate?Reality check: this is difficultFind anyone with organizational power and present your idea, budget, timeline and expected business benefit
  30. 30. Development PeriodIntertwined Ongoing ConcernsPhasesProliferation Wide ParticipationSetbacks Sponsors/ExecutivesCriteria Shift Developing Relationships Infrastructure Development
  31. 31. Intertwined PhasesProliferation - ideas and scope multiply once you have fundingSetbacks - nothing goes smoothly the first timeCriteria Shift - redefine success
  32. 32. Executing the Pattern Can you focus in chaos?The environment will try and force mediocrity on your idea, you must retain the innovative kernel and focus on industry changing innovation
  33. 33. Ongoing ConcernsWide Participation - individuals from all parts of business work on the projectSponsors/Executives - frequent steering committee meetingsDeveloping Relationships - support needed throughout organization and externallyInfrastructure Development - key components are need both internal and external
  34. 34. Riak and the PatternInfrastructure DevelopmentKey components and tools are neededExternal partners co-develop infrastructure
  35. 35. Infrastructure Development Requires communication and community "The industry infrastructure for an innovation system does not emerge and change all at once by the actions of one or even a few key individuals." ~ Van de Ven, p. 162
  36. 36. Executing the PatternIdentify infrastructure you can create and infrastructure others can create for you.Infrastructure may be public, government established, or created jointly with competitors.
  37. 37. Infrastructure - BestBuy.comProduct Catalog was a proprietary systemData is inaccessible outside of DotcomThe product data is the fulcrum for
  38. 38. Riak as Product Catalog We selected Riak in 2010 because: • Designed for redundancy • Masterless • ScalableHowever the main reason was we felt that Basho would work with us
  39. 39. Basho - Infrastructure Partner Worked with us to improve: Search Replication Tuning Co-Development occurred
  40. 40. Final PeriodImplementation or TerminationOnce in production or once the product launches, the market decidesOr, your management decides by terminating before launch
  41. 41. Final PeriodHarsh reality: you only get one shot.“in no instances where innovations were judged as failures by top managers or investors were the innovation entrepreneurs offered another opportunity to manage a subsequent innovation.”
  42. 42. Innovation follows a patternInfrastructure development requires partnersFor Best Buy, Basho has supplied crucial infrastructure
  43. 43. Pattern of InnovationSource: Van de Ven, p. 25
  44. 44. Joel CrabbChief Architect, BestBuy.comjoel.crabb@bestbuy.com

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