Innovation and Knowledge Development
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This document discusses lean innovation and knowledge-based development. It begins with several quotes highlighting how innovation has changed over time. It then discusses the challenges institutions face in accommodating truly revolutionary changes. The rest of the document discusses lean thinking and knowledge management as it relates to technology development. It emphasizes the importance of respecting people, continuous improvement, and skilled individuals.
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Innovation and Knowledge Development
- 2. Knowit Technology Management Lean Innovation and Knowledge Based Development - or, what would Albert say? Pär Hammarström Senior Mgmt Consultant Knowit Technology Management par.hammarstrom@knowit.se 072 202 6277 Presentation to INCOSE Sweden 2013-02-13 @Knowit TM Linköping
- 3. “We wanted flying cars, instead we got 140 characters.” - Peter Thiel …in 1950 an average R&D worker in America contributed almost seven times more to “total factor productivity”— essentially, the contribution of technology and innovation to growth—that an R&D worker in 2000 did. - Azoulay&Jones If computers and the internet mattered to the economy— rather than merely as rich resources for intellectual and cultural exchange, effect would be seen in the figures. And it hasn’t been. - Gordon&Coven Roughly a century lapsed between the first commercial deployments of James Watt’s steam engine and steam’s peak contribution to British growth. Some four decades separated the critical innovations in electrical engineering of the 1880s and the broad influence of electrification on economic growth. In the end, the main risk to advanced economies may not be that the pace of innovation is too slow, but that institutions have become too rigid to accommodate truly revolutionary changes—which could be a lot more likely than flying cars.
- 4. "Our strong investor base offers a solid foundation for boo.com. The fact that such international investors have invested in boo.com reflects the power of our business model and the boo.com brand." Patrik Hedelin, Executive Chairman. (Press Release, Nov 3 1999)
- 5. “A business exist to create a customer.” - Peter F Drucker Technology Management
- 7. Sustainable Success Respect for Continuous Entrepeneurial Decide as late people Chief Engineer as possible Improvement Team Room & Flow/ Visual Cadence Mgmt Amplify Learning Set-based X-Team design Skilled people Management applies and teaches lean thinking Technology Management Adapted from Larman & Vodde
- 8. Something different that has impact. Technology Management
- 9. Product Development is Learning Real World Information Decision Feedback Reflection Decision making rules Mental Model Technology Management
- 11. GUL BLÅ ORANGE SVART RÖD GRÖN LILA GUL RÖD ORANGE GRÖN SVART BLÅ RÖD LILA GRÖN BLÅ ORANGE Technology Management
- 12. The Ladder of Inference I take Actions based on my beliefs I adopt Beliefs about the world The Reflexive Loop (our beliefs affect what I draw Conclusions data we select next time) I make Assumptions based on the meanings I added Observable data Technology Management Chris Argyris
- 13. What do you believe that only you believe? Technology Management
- 14. "Imagination is more important than knowledge." Technology Management
- 15. A Different Perspective Co-ordinating logic Motivation Transparency Perspective Knowledge transfer Enacted environment Contextual environment Technology Management Sven Hamrefors
- 16. Intrinsic Motivation Self • Autonomy Actualization – The desire to be self- directed • Mastery Belongingness – The urge to get better – in search of flow • Purpose – The aspiration to Survival contribute to something bigger than ourselves Technology Management
- 17. Perspectives + Conservative Constructive Reflected experiences Previous enactment - Superstitious Novel - + Gemba - Go see Present enactment
- 18. Directing Factors Co-ordinating logic Sensemaking, flow Create experiences combining the magic Transparency of sw withon every A PC the power Connecting To create a better desk running of internet services everyday life for the many People. MS sw across a world of people. devices Knowledge transfer Technology Management
- 19. Entrepeneurial Behavior Anarchistic Scanning Targeted Scanning Intrinsic Motivation Private Scanning Scanning in principle None Enacted situation Contextual situation Directing factors
- 20. "The secret to creativity is knowing how to hide your sources." Technology Management
- 21. Mindfuck 1, Line B is longer than line A 2, They are equally long 3, We don’t know A B Technology Management
- 22. Mindfuck 1, Line A is in line with line C 2, Line B is in line with line C 3, We don’t know C A B Technology Management
- 23. Mindfuck 1, The mid circles are not equally big 2, The mid circles are equally big 3, We don’t know Technology Management
- 24. “I Know That I Know Nothing” Technology Management
- 25. What Do We Know Waste The Tacit Dimension Personal ->Interpersonal through dialogue and visualizations What we know that we What we don’t know that we know – Known Knowns know – Unknown Knowns What we know that we don’t What we don’t know that we don’t know – Known Unknowns know – Unknown Unknowns Assumptions Ignorance Complicated Complex Technical systems Sociotechnical systems Find the facts Probe – Sense - Respond Trust that patterns will emerge Technology Management
- 26. The Nine Dot Problem Technology Management
- 27. The Problem is about What You See Emptiness = ”Nothing” Invisible = ”Something” Focus on what you know What could be? Technology Management
- 28. “Common sense is the collection of prejudices acquired by age eighteen.” Technology Management
- 29. 4 Mental Models of Innovation Business as usual Let’s fire all the managers Continuous innovation as the bottom line 80/20 Technology Management Gary Hamel
- 30. Linear Model of Innovation Basic Research -> Applied Research -> Development -> Diffusion Basic Research -> Applied Research -> Development -> Production -> Marketing&Sales Market needs-> Development -> Production -> Marketing&Sales Technology Management
- 31. “Keeping the Innovators at the Gate” Technology Management
- 32. The SCRUM Trap Things that I know how to build More of the Same ? Things that I Unknown know my Needs Customers like ? ? Unknown Technology Technology Management
- 33. "If we knew what it was we were doing, it would not be called research, would it?” Technology Management
- 35. Competitive Strategy Competitive Advantage Uniqness Cost Differentiation Competitive Scope Leadership Differentiation Cost Focus Focus Sustaining Innovation Low Cost Technology Management Michael Porter
- 36. Blue Ocean – Red Ocean Technology Management W. Chan Kim & Renée Mauborgne
- 37. The Post Competitive Paradigm “In order to get to the future first, there is no need to excel competitors trying to get the same prize because the number of prizes may be the same as the number of runners.” G. Hamel & C. K. Prahalad Uniqness Known Technology Cost Value Innovation Differentiation New Known Market Market Low Cost New Technology Technology Management
- 38. Product Performance The Innovator’s Dilemma High end demand Sustaining Innovation Disruptive Technology Low end demand Time Technology Management Clayton Christenssen
- 39. Creative Destruction Uniqness Known Technology Disruptive Innovation New Known Market Market Low Cost New Technology Technology Management
- 40. Three Distinct Innovation Strategies Known Technology 1 Apple 70 2,7% 8 P&G 61 2,5% 3 3M 86 5,4% 9 Toyota 6 3,9% 4 GE 32 2,6% Need Seekers Market Readers 7 Toyota 1 4,2% 6 IBM 15 6% 8 P&G 72 2,4% 10 Facebook N/A New Known 1 Apple 53 2,2% Market Market 3 3M 86 5,3% 5 GE 30 3,2% 9 IBM 17 5,9% Technology Drivers 2 Google 34 12,8% 10 Amazon 48 6,1% 5 Microsoft 4 14% 7 Samsung 7 5,9% 2 Google 26 13,6% New Technology 4 Samsung 6 6% 6 Microsoft 5 12,9% R&D spending is far from proportional to success Booz&Co: The Global Innovation 1000 – Why Culture is key 2011 Technology Management Booz&Co: The Global Innovation 1000 – Making Ideas Work 2012
- 41. Strategy and Culture Alignment is Key Distinct Goal Common Goals Advantaged Products • Superior product performance and Services • Superior product quality Distinct Culture Common Culture Need Openess to new ideas • Strong identification with the customer from customers, and orientation toward customer Seekers suppliers, competitors experience and other industries • Passion and pride for the products and services offered Market Technology Readers Drivers Distinct Goal Products customized to local markets Distinct Culture Collaboration across Distinct Goal functions and Developing low cost products geographies Distinct Culture Reverence and respect for Technology Management tech talent and knowledge
- 42. Front End Tools Align Preferred Tools – End-user Insight • Idea workout sessions • Social-network data mining • Focus groups with customers and end-users Need • Direct customer observation Seekers Market Technology Readers Drivers Preferred Tools – Market Insight • Feedback from customer support and sales • Traditional market research Preferred Tools – Tech Foresight • Seed funding for exploratory • Periodic meetings of technical community research • Technology road mapping • External idea scouting and technology Technology Management • Cross–business unit communities of practice
- 43. Culture Eats Strategy for Breakfast Heavyweight Team Heavyweight Team Bad within organization Spinout organization Process Fit Lightweight Team Heavyweight Team within organization Spinout organization Good for commercialization Good Bad (Sustaining Innovation) (Disruptive Innovation) Value Fit Technology Management Clayton Christensen
- 44. Startups as a Role Model Scalable Large Transition Startup Company A startup is the temporary organization used to explore a market for a scalable business model under conditions of great uncertainty. The purpose is not to remain a startup. Failure = failure to transition.
- 45. 100 is the Magic Number Technology Management Scaling Agile @ Spotify with Tribes, Squads, Chapters & Guilds – Henrik Kniberg Crisp
- 46. The Lean Start-up • Entrepeneurs are everywhere – Product Roadmap -> Business Model – Product Owner - > Entrepeneur Build • Validated learning Idea Product – Backlog -> To learn list – On site customer -> Get out of the building Learn Measure – Demo -> Perserve or Pivot Data Technology Management Eric Ries
- 47. The Adoption Cycle Early Majority Late Majority ”Pragmatists” ”Conservatists” Relative % customers Early Adopters ”Visionaries” Innovators Laggards ”Tech entusiasts” ”Skeptics” Time Technology Management Geoffrey Moore
- 48. Technology First – Needs Later Transition point where technology satisfies basic needs Relative % customers Excess Technology Most customers not interested Required Performance Technology Dominates User Experience Dominates (convenience, reliability, cost...) Technology is ”good enough” Time Technology Management Donald Norman
- 49. X-Team Feasible Technology User Viable Business Desirable Experience Technology Management Tim Brown
- 50. Customer Insight Driven – Not Customer Driven Abstract Insight Ideas ABDUCTIVE THINKING Ask why 5 times Describe the benefits Empathize Experiment Analysis Synthesis Prototype and evolve a minimum Observe how a job is done desirable, viable and feasible product Context Artifacts Concretete
- 51. Requirements Analysis vs Design Thinking Show me the facts. How might we? Technology Management
- 52. T-shaped People Technology Management
- 53. Entrepreneurial Chief Engineer? “It comes from saying no to 1,000 things to make sure we don't get on the wrong track or try to do too much.” - Steve Jobs Technology Management
- 54. Experiment! Build What Do I need to Learn? Idea Product What do I need to Build? Learn Measure Data How can I Measure that? Technology Management
- 55. Assumptions Assumptions Assumptions Assumptions Assumptions Assumptions Assumptions Assumptions Assumptions Technology Management Alexander Osterwalder
- 57. To Learn List as Strategy Explore Execute Problem/ Product/ Scale Solution Market Technology/Antropology Minimum Viable Product Product/Business Model Value Proposition Canvas Business Model Canvas Crossing the chasm Assumption Feature MVP Validation Result Technology Management
- 58. “The only real valuable thing is intuition." Technology Management
- 59. Business is Not a Sustainable Success Expand the Problem Space – Sport Explore the Wider System Respect for Continuous Entrepeneurial Decide as late people Focus on the Get out of Improvement Chief Engineer as possible Jobs to solve You are part of a the office System – Define your Role Team Room & Flow/ Visual Cadence Mgmt Amplify Diversify Facilitate People, not your Dialogue process Learning Perspective Set-based X-Team design Design is T-shaped Skilled people not analysis Managment applies and teaches lean thinking Technology Management
- 60. “I think and think for months and years. Ninety-nine times, the conclusion is false. The hundred´th time I am right.” Technology Management