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Co-Creation - Agile2013 - Raj Mudhar - A model for collaborative innovation of products and services

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  • 1. Raj Mudhar & Associates Ltd. Co-Creation Creating Value with Customers Agile 2013, Nashville TN Presenter: Raj Mudhar
  • 2. Raj Mudhar & Associates Ltd. Thanks 2 To  my  friends  at  Alcatel-­‐Lucent,  especially   Marcel  Bomans.
  • 3. Raj Mudhar & Associates Ltd. Where we’re going What is co-creation? Why co-create? Co-creation models Challenges & Pitfalls Q&A Retrospective 3
  • 4. Raj Mudhar & Associates Ltd. Context Large,  global,  distributed,   regulated,  hardware  and   software  product   development  involving   hundreds  of  engineers. Alone  we  can  do  so  little;  together  we  can  do  so  much.  —Helen  Keller 4
  • 5. Raj Mudhar & Associates Ltd. Co-Creation 5
  • 6. Raj Mudhar & Associates Ltd. Co-creation is... “...co-­‐creation  is  a  theory  of  interactions.  It  involves  changing  the  way   the  organization  interacts  with  individuals,  including  employees,   customers  or  any  stakeholder.  More  specifically,  co-­‐creation  involves   setting  up  new  modes  of  engagement  for  these  individuals  –   platforms,  in  the  jargon  –  that  allow  these  individuals  to  insert   themselves  in  the  value  chain  of  the  organization.” -­‐-­‐  Francis  Gouillart A  business  strategy  focusing  on  customer  experience  and  interactive   relationships.  Co-­‐creation  allows  and  encourages  a  more  active   involvement  from  the  customer  to  create  a  value  rich  experience. -­‐-­‐  www.businessdictionary.com 6
  • 7. Raj Mudhar & Associates Ltd. Traditional Producer Consumer Product 7
  • 8. Raj Mudhar & Associates Ltd. Iterative Producer Consumer Product   Increments 8
  • 9. Raj Mudhar & Associates Ltd. Co-Creative Producer Consumer Product   Increments 9
  • 10. Raj Mudhar & Associates Ltd. Why Co-create? 10
  • 11. Raj Mudhar & Associates Ltd. Innovation Customer  has  a  problem   without  a  known  solution New  technology High  business  risk Speed  to  market ...those  who  learned  to  collaborate  &   improvise  most  effectively  have  prevailed.   -­‐  Charles  Darwin 11
  • 12. Raj Mudhar & Associates Ltd. Under the hood 12
  • 13. Raj Mudhar & Associates Ltd. Co-Creation Entry Co-­‐Creation   Relationship Managed  as  a  joint  project  with  one  executive   sponsor  from  each  partner Evaluation  &   Exploration Joint  qualification  of  an  opportunity:  scope,   value,  objectives,  model,  deliverable Two  possible  co-­‐creation  models  from  here 13
  • 14. Raj Mudhar & Associates Ltd. Two Models Regular Premium 14
  • 15. Raj Mudhar & Associates Ltd. Regular Features: • Activities  and  scope  defined  and  operating  under  NDA  only • Quarterly  workshops  to  jointly  resolve  customer  challenges,  requirements,  priorities  &  risks • Regular  demos  and  reviews  to  collect  feedback  on  developed  features • Joint  product  requirements  refinement • Joint  feature  prioritization  in  backlog • Web  based  real-­‐time  interactions  between  agile  development  teams  and  customer  co-­‐ creation  stakeholders  -­‐  open  processes  and  transparency • Teams  may  work  in  an  Agile  or  Waterfall  context 15
  • 16. Raj Mudhar & Associates Ltd. Premium Features: • Everything  in  the  regular  model  plus... • Customer’s  employees  embedded  with  vendor  development  teams • Teams  are  co-­‐located  when  it  is  feasible • Customer’s  employees  involved  in  all  aspects  of  development  and  delivery • Teams  work  using  Scrum  and  other  Agile  methods  and  practices 16
  • 17. Raj Mudhar & Associates Ltd. Pipeline 4  weeks 17 Project  Screening • Appropriateness • Market  opportunity • Strategic  fit • Customer  and  supplier  joint   value  proposition • Culture Kick-­‐off • Appointment  of   POs  -­‐  one  from   each  of  Supplier   and  Customer • NDA Workshop • Preliminary  planning • Alignment  on   processes,  objectives,   demo  schedules,   deliverables,   contributors Teams  &  Prep • Scrum  teams   selected • Web  2.0   collaboration   environment  set-­‐ up  completed Go! • Check  off  prep • Launch  project!
  • 18. Raj Mudhar & Associates Ltd. Dangers & Pitfalls 18
  • 19. Raj Mudhar & Associates Ltd. 4R Examples • Regulatory  (e.g.  export  control) • Rights  (e.g.  Intellectual  property) • Relationships  (e.g.  people) • Remediation  (e.g.  correcting  and   managing  disagreements) 19
  • 20. Raj Mudhar & Associates Ltd. Why will co-creation fail in your organization? 20
  • 21. Raj Mudhar & Associates Ltd. Regulatory Export  Control • Permits  may  be  required  for    certain  types  of  work • NSA  registration • Source  code  protection  /  vaulting • Documentation • Design  specification • Export  Control  Tiers Accounting  /  Legal • Auditable  “employee  /  employer”  relationships • Sarbanes  -­‐  Oxley • Accounting  rules  are  different  in  different  parts   of  the  world • Employment  laws,  unions,  including   specification-­‐based  contracting  vs.  exploratory   development 21
  • 22. Raj Mudhar & Associates Ltd. Rights Ownership • Technology  ownership • Licensing  and  distribution • How  do  you  handle  development  with  one   customer  and  then  sell  the  product  to  their   competitors? Financial • Who  gets  paid  for  what?   • Who  invests? • What  if  a  partner  brings  in  proprietary   technology  as  a  complementary  component  of   the  product  that  was  developed  outside  the   scope  of  the  co-­‐creation  agreement? 22
  • 23. Raj Mudhar & Associates Ltd. Relationships Fit • Skills  fit • Personality  fit  at  all  levels • How  do  you  deal  with  human  conflicts  e.g.  a   customer  engineer  is  being  difficult  putting  the   project  at  risk Culture • Reconciling  cultural  issues,  be  they  country/ region  related  or  corporate • Training  employees  on  both  sides  how  to  get   along  and  work  together • Monitoring  and  facilitating  respectful  and   collegial  work  environments • How  do  you  handle  rewards  and  recognition? • Are  the  skills  of  the  co-­‐creation  team   complementary? 23
  • 24. Raj Mudhar & Associates Ltd. Remediation Disputes • Drawing  a  line  between  what  can  and  cannot  be  in   dispute  (difficult) • How  do  you  know  you  have  a  disagreement? • What  if  one  side  is  dragging  their  heels  and  slowing   down  the  project?  Legitimate  issue  or  not?  How  do   you  know? • Acts  of  God? Resolution • Escalation  paths  for  different  classes  of  dispute   resolution   • Service  level  agreements • Maintaing  an  audit  trail  of  disputes  and   resolutions  to  avoid  repeats  and  “death  by  a   thousand  cuts” 24
  • 25. Raj Mudhar & Associates Ltd. Let’s co-create 25
  • 26. Raj Mudhar & Associates Ltd. Q&A 26
  • 27. Raj Mudhar & Associates Ltd. Contact: raj@rajile.com rmudhar rajile.com +1.613.791.7251 http://www.linkedin.com/in/rajmudhar 27
  • 28. Raj Mudhar & Associates Ltd. About Accomplished  R&D  director,  consultant  and  change  leader  for  large-­‐scale   Agile  /  Lean  organizational  transformation.  17  years  of  international  experience   leading  teams  in  Asia,  North  America,  and  Europe.  Solid  record  of  delivering   measurable  improvements  in  organizational  performance.  Skilled  influencer,   mentor  and  facilitator.  Known  for  valuing  people,  innovation,  continuous   improvement,  and  exceptional  service  to  customers.   Raj  successfully  implemented  Lean  and  Agile  methods  and  practices  in: -­‐  embedded  software  development -­‐  hardware  development -­‐  product  management -­‐  portfolio  management -­‐  systems  engineering  |  solution  architecture -­‐  operations  and  customer  support -­‐  finance  and  budgeting Raj Mudhar Tweet  this  presentation! 28