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Pattern of Innovation

 Riak Usage at BestBuy.com
10 Second Background
       Check
Joel Crabb, Chief Architect,
  BestBuy.com
What I do:
• Build scalable business platforms
• Build developer-focused work
  environments
• Innovate (hopefully)
Agenda

Define Innovation
Innovation is a Pattern
The Pattern at BestBuy.com
How Riak supported the Pattern
“Lives are about
  imagination and
  what we can
  create.”

~ Ed Freeman

Lecture on Corporate Social Responsibility

6/2011
Innovation Defined

The products and/or technologies
               that
    change their industry or
     create new industries.
What is Innovative?

   Ideas are innovative


Products are the innovation
Innovative Ideas

Example:


Rethink the game of fetch with your
 dog
Product Innovation
What's Not
 Innovative?
Incremental Change


Category Expansion


     Copying
Indoor Chuckit - Category
       Expansion
Innovation
  Innovation is scored by the
          marketplace


   Innovation is defined after
     products are created


Innovation changes industries or
The Consumer Decides Which
  Products are Innovations
Innovation Will Happen
At Best Buy, we've decided that we must
   differentiate ourselves in core ECommerce
   technology


We have been a retail company


We will be a technology company that does
 retail
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
Where do you start?
Recognize that innovation has a pattern


Look for the pattern inside your own
  company
The Pattern of Innovation
The Innovation Journey


Andrew Van de Ven
Douglas E. Polley
Raghu Garud
Sankaran Venkataraman
Innovation Periods

         Initiation


      Development


Implementation/Termination
Initiation Period

     Gestation


      Shock


      Plans
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
Gestation -
        BestBuy.com
The operations team had speculated
  for 5-6 years on how to remake its
  ECommerce systems


Development was extremely difficult


A Web Architecture team was formed
  in the Dotcom business unit in 2010
Finding the Pattern
What 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
Initiation Period -
             Shock internal
Shocks are incidents either
  or external that cause the
  company to change how it
  evaluates ideas


The company must change its
  business model and create new
  products to survive
Shock - BestBuy.com
Shock
to the
System


Innovative
Ideas
Emerge
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
Initiation Period -
         Plans
  Also called the Roadshow
             or
Finding executive sponsorship


 The idea has created enough
   momentum that you are now
planning the budget and roadmap
Plans - BestBuy.com
We developed financials and a
 roadmap to migrate off our
 proprietary system in 3 years


To get organizational commitment
  we promised to complete the
  project in 18 months
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
Finding the Pattern
      Are you truly passionate?


Reality check: this is difficult


Find anyone with organizational
  power and present your idea,
  budget, timeline and expected
  business benefit
Development Period
Intertwined      Ongoing Concerns
Phases
Proliferation    Wide Participation
Setbacks         Sponsors/Executives
Criteria Shift   Developing Relationships
                 Infrastructure
                 Development
Intertwined Phases
Proliferation - ideas and scope
  multiply once you have funding


Setbacks - nothing goes smoothly
  the first time


Criteria Shift - redefine success
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
Ongoing Concerns
Wide Participation - individuals from all parts of
  business work on the project

Sponsors/Executives - frequent steering
  committee meetings

Developing Relationships - support needed
  throughout organization and externally

Infrastructure Development - key components
   are need both internal and external
Riak and the Pattern
Infrastructure Development


Key components and tools are needed


External partners co-develop
  infrastructure
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
Executing the Pattern
Identify infrastructure you can
  create and infrastructure others
  can create for you.


Infrastructure may be public,
   government established, or
   created jointly with competitors.
Infrastructure -
       BestBuy.com

Product Catalog was a proprietary
  system


Data is inaccessible outside of Dotcom


The product data is the fulcrum for
Riak as Product
          Catalog
 We selected Riak in 2010 because:
 • Designed for redundancy
 • Masterless
 • Scalable

However the main reason was we felt
  that Basho would work with us
Basho - Infrastructure
      Partner
  Worked with us to improve:
           Search
         Replication
           Tuning


  Co-Development occurred
Final Period
Implementation or Termination


Once in production or once the
 product launches, the market
 decides


Or, your management decides by
  terminating before launch
Final Period
Harsh 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.”
Innovation follows a pattern


Infrastructure development requires
   partners


For Best Buy, Basho has supplied
  crucial infrastructure
Pattern of Innovation




Source: Van de Ven, p. 25
Joel Crabb

Chief Architect, BestBuy.com


joel.crabb@bestbuy.com

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Pattern of Innovation

  • 1. Pattern of Innovation Riak Usage at BestBuy.com
  • 2. 10 Second Background Check Joel Crabb, Chief Architect, BestBuy.com What I do: • Build scalable business platforms • Build developer-focused work environments • Innovate (hopefully)
  • 3. Agenda Define Innovation Innovation is a Pattern The Pattern at BestBuy.com How Riak supported the Pattern
  • 4. “Lives are about imagination and what we can create.” ~ Ed Freeman Lecture on Corporate Social Responsibility 6/2011
  • 5. Innovation Defined The products and/or technologies that change their industry or create new industries.
  • 6. What is Innovative? Ideas are innovative Products are the innovation
  • 7. Innovative Ideas Example: Rethink the game of fetch with your dog
  • 9. What's Not Innovative? Incremental Change Category Expansion Copying
  • 10. Indoor Chuckit - Category Expansion
  • 11. Innovation Innovation is scored by the marketplace Innovation is defined after products are created Innovation changes industries or
  • 12. The Consumer Decides Which Products are Innovations
  • 13.
  • 14. Innovation Will Happen At Best Buy, we've decided that we must differentiate ourselves in core ECommerce technology We have been a retail company We will be a technology company that does retail
  • 15. 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
  • 16. Where do you start?
  • 17. Recognize that innovation has a pattern Look for the pattern inside your own company
  • 18. The Pattern of Innovation The Innovation Journey Andrew Van de Ven Douglas E. Polley Raghu Garud Sankaran Venkataraman
  • 19. Innovation Periods Initiation Development Implementation/Termination
  • 20. Initiation Period Gestation Shock Plans
  • 21. 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
  • 22. Gestation - BestBuy.com The operations team had speculated for 5-6 years on how to remake its ECommerce systems Development was extremely difficult A Web Architecture team was formed in the Dotcom business unit in 2010
  • 23. Finding the Pattern What 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
  • 24. Initiation Period - Shock internal Shocks are incidents either or external that cause the company to change how it evaluates ideas The company must change its business model and create new products to survive
  • 25. Shock - BestBuy.com Shock to the System Innovative Ideas Emerge
  • 26. 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
  • 27. Initiation Period - Plans Also called the Roadshow or Finding executive sponsorship The idea has created enough momentum that you are now planning the budget and roadmap
  • 28. Plans - BestBuy.com We developed financials and a roadmap to migrate off our proprietary system in 3 years To get organizational commitment we promised to complete the project in 18 months
  • 29. 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
  • 30. Finding the Pattern Are you truly passionate? Reality check: this is difficult Find anyone with organizational power and present your idea, budget, timeline and expected business benefit
  • 31. Development Period Intertwined Ongoing Concerns Phases Proliferation Wide Participation Setbacks Sponsors/Executives Criteria Shift Developing Relationships Infrastructure Development
  • 32. Intertwined Phases Proliferation - ideas and scope multiply once you have funding Setbacks - nothing goes smoothly the first time Criteria Shift - redefine success
  • 33. 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
  • 34. Ongoing Concerns Wide Participation - individuals from all parts of business work on the project Sponsors/Executives - frequent steering committee meetings Developing Relationships - support needed throughout organization and externally Infrastructure Development - key components are need both internal and external
  • 35. Riak and the Pattern Infrastructure Development Key components and tools are needed External partners co-develop infrastructure
  • 36. 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
  • 37. Executing the Pattern Identify infrastructure you can create and infrastructure others can create for you. Infrastructure may be public, government established, or created jointly with competitors.
  • 38. Infrastructure - BestBuy.com Product Catalog was a proprietary system Data is inaccessible outside of Dotcom The product data is the fulcrum for
  • 39. Riak as Product Catalog We selected Riak in 2010 because: • Designed for redundancy • Masterless • Scalable However the main reason was we felt that Basho would work with us
  • 40. Basho - Infrastructure Partner Worked with us to improve: Search Replication Tuning Co-Development occurred
  • 41. Final Period Implementation or Termination Once in production or once the product launches, the market decides Or, your management decides by terminating before launch
  • 42. Final Period Harsh 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.”
  • 43.
  • 44.
  • 45. Innovation follows a pattern Infrastructure development requires partners For Best Buy, Basho has supplied crucial infrastructure
  • 46. Pattern of Innovation Source: Van de Ven, p. 25
  • 47. Joel Crabb Chief Architect, BestBuy.com joel.crabb@bestbuy.com