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BOF AMERICAS 2015: DELL

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Jim Stikeleather is Chief Innovation Officer and Executive Strategist for Dell Services. His team helps customers develop tools and techniques to create cultures of innovation and become serial innovators. His team participates in standards bodies, regularly speak at conferences internationally and have multiple book and industry-article contributions to their credit. Jim guest lectures internationally and holds multiple patents.

Jim’s here to share his insights on The Discipline of Innovation. His presentation is titled:

Innovation as a Branch of Knowledge 
“True freedom is impossible without a mind made free by discipline.”

Please welcome Jim Stikeleather!

Published in: Technology
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BOF AMERICAS 2015: DELL

  1. 1. Discipline of Innovation Step1: Understanding before Practice Jim Stikeleather @stikeyoda
  2. 2. Why would you want to be an innovator? Thereis nothing moredifficult to plan, more doubtful of success, nor more dangerous to manage thanthe creation of a new order of things… Wheneverhis enemies have the ability to attack the innovator, theydo so with the passion of partisans, while the others defend himsluggishly, so that the innovator and his partyalike are vulnerable. Niccolo’ Machiavelli, ThePrince(1513)
  3. 3. Definition of Innovation I shall not today attempt furtherto define thekinds of material I understand to be embraced within that shorthand description ["hard-corepornography"],and perhaps I could never succeedin intelligibly doing so. But I know it when I see it, andthe motion picture involved inthis case is not that. UnitedStates Supreme CourtJustice Potter Stewart to describe his threshold test for obscenity in Jacobellis v. Ohio. Problem solving and continuous improvementcauses Change Innovationcauses Transformation.
  4. 4. 4 Invention isNOTInnovation Business Models Management Products and Services Processes Marketing Newideas +Forward-thinking+Feasible +Viable+Valuable Innovationis theprocessthattakesnew ideasandimplements themin awaythatcreatesvalue by solving unmetneeds. 5
  5. 5. Innovator’s perception of management:
  6. 6. Management’s perception of innovators
  7. 7. What stops innovation?
  8. 8. 8 With Innovation Plan Without Innovation Plan Business modelandprocess Products&Services New Near to existing NewNear to existing Breakthrough Disruptive change BreakthroughIncremental Sustaining Quiz Wheredoesinnovationcome from?
  9. 9. Innovation starts with thinking about the future IDEATION INTERNAL RESOURCES IDEATION EXTERNAL RESOURCES DRAFT NEW PRODUCT CONCEPTS NARROW CONCEPTS UNDER CONSIDERATION OUTLINE FEATURES/ BENEFITS EXPOSE TO TARGET CUSTOMERS (QUALITATIVE) KILL CONTINUE REFINE ESTABLISH SUCCESS CRITERIA KILL TEST MARKET (NEW PRODUCT INCUBATOR) EXECUTIVE MANAGEMENT REVIEW (Investment Committee) POST TEST MARKET EVALUATION DESIGN, DEVELOP & PILOT (Project Launched) FORM TEAM DEFINE THE PROBLEM/ OPPORTUNITY EXPOSE TO TARGET CUSTOMERS FOR VOLUME ASSESSMENT (QUANTITATIVE) TEST MARKETING PREPARATION HIGH LEVEL REQUIRE- MENTS DEVELOP BUS CASE/OBTAIN APPROVAL TO PROCEED (Mgt Review) KILL CONTINUE REFINE FINAL ROLLOUT PLAN FINAL TIMELINE WAR GAMES EXECUTIVE GROUP REVIEW TRAINING KILL ROLL-OUT EVALUATION AND MEASUREMENT PLAN DEVELOPMENT AND INITIAL TIME LINE (Proj Request/Sizing) TURN OVER TO PRODUCT MANAGEMENT How far back depends on feedback received May require refinement of business case and financials Some, or all of these stages may not apply to smaller efforts, or those with low execution risk/low capital investment For large projects, or those requiring post-pilot review and approval, these stages will apply (e.g. Investment Committee level projects). Project Release Management Flow Begins (see next page) Project Lifecycle Project Lifecycle START Start Project End Project Convergent Thinking Divergent Thinking Analytic/Rational Quantitative/Sequential Constraint-driven/Objective Specificdetails Creative/ Intuitive Qualitative/Subjective Possibilities/ Holistic Conceptualabstractions 10
  10. 10. Can divergentthinking betaught?
  11. 11. What did we learn? Youdon’t teach creativity, you unteach non-creativity Fail fast, fail furiously, fail often, learn, repeat till successful Incentivesaren’twhat youwould expect Facilitate andmanagetheprocess
  12. 12. Right People Right Process Common Language LeadershipRole Modeling Right Rewards Incentive s
  13. 13. Our Process IP, patents InsightMonitoringFrameworks& Scenarios Innovation for market challenges Innovation for customer & delivery challenges Relativeinnovation Value challenges ForesightMonitoring Trends Themes Signals R&D Standards,laws Invest Execute Planof investigation Continual improvement Planof intent Planof record Research Education Consulting Training
  14. 14. Crowdfunding & Peer-to-Peer lending Dynamic Pricing Consumerization Utility computing UrbanizationPerfectinformation Sample Trends, Themes and Scenarios Freelance economy & Hollywood Model Sharing economy The Internet of Things An old workforce, a new workforce LocalManufacturing; 3D and 4D Printing Gamification Learning Styles & Knowledge Transfer Technologydoes not causechange. Itonly enables,facilitatesand accelerateschangeswealready wantto takeplace. Innovate to zero 15
  15. 15. 15 NewOperating Models-another innovation driver Complex Unknown unknowns Cause & effect are coherent only in retrospect & do not repeat Emergent practice Pattern management Perspective filters Complex adaptive system Probe-Sense-Respond Complicated Known unknowns Cause & effect are discoverable & separated over time & space Good practice Expert diagnosis More than one possible right answer Analytical & scenario planning Systems thinking Sense-Analyze-Respond Simple Known knowns Cause & effect is obvious, repeatable, & predictable Best practice Standard operating procedure Sense–Categorize–Respond Chaotic Unknowables No cause & effect Novel practice Stability-focused intervention Enactment tools Crisis management Act-Sense-Respond Collapse Disorder
  16. 16. 16 Future Organic Enterprise: SHANZAI Derived from: Trilogy Model Knowledge Creation Process Methusael B. Cebrian College of Education Capitol University, Phillipines Integration of the • OODA Loop US AirForce Colonel John Boyd • SECI Model Socialization, Externalization, Combination and Internalization Professor Ikujiro Nonaka of Japan Institute of Science &Technology • Oinas-Kukkonen Organizational Knowledge Creation and Management Framework Harri Oinas-Kukkonen University of Oulu, Finland Stanford University, USA Observe&Comprehend Act in Collaboration Conceptualize&Decide Orient & Communicate
  17. 17. 17 In Summary • THEsource of future profits and futureorganizations • New Idea+ Forward Thinking+ Feasible + Viable + Valuable • Innovation= 𝑙𝑒𝑎𝑟𝑛𝑖𝑛𝑔(f(FAILURE)) • Get out of the way: Purpose, Mastery, Autonomy • Team Sport – generator, manifestor, communicator • Enable, facilitate, acceleratevia a CULTUREof Innovation – Right people – Right processes – Right words – Right incentives – Right leaders
  18. 18. Change is reversible, Transformation is not. Stike_Stikeleather@dell.com Twitter:@stikeyoda www.InnovateBusinessIT.com http://www.managementexchange.com/users/jim-stikeleather http://www.amazon.com/Business-Innovation-Cloud-Executing-Computing/dp/0929652185
  19. 19. Disciplineof Innovation Step 1: Understanding before Practice AdditionalInformation
  20. 20. OurProcess – NewIdeas / ForwardThinking Foresight –Looking Outside andAnticipating P E E SSocialForces and Signals T LLegislative Forces and Signals EconomicForces and Signals Technological Forces and Signals PoliticalForces and Signals EnviromentalForcesand Signals D Demo- graphics • Economicis growth,financerates, investment,employment,etc. • Political is traderules, competitiverules,stability, openess,freedom,etc. • Technologyisexaminedinterms ofitsusagepatterns,potentials andpossibilities.Actual technologyforecastsarehandled inInsight • Social risktolerance,familialties, mobility,lifestyle,priorities, attitudes,etc. • Legalisemploymentrules, contracts,consumerprotection, corporategovernance,etc. • Environmentalcustomerexpectations, carbon,infrastructure,etc. • Demographics cohorts, generations,frameworks/tribes
  21. 21. Our Process – Feasible / Viable Insight– Looking Inwardand Projecting IP D R&D F • Ours • Licensed • Pooled • Inprocess IP / Patents • Internal • External • Inprocess Delivery Capability • Research& Development • Academic& Industry relations R&D • Acquisitions • Jointventures • Sponsorships Financial Capability
  22. 22. Scenarios: Connecting,Timing,Preparing 3Hidden S-Curves (weak signals) : • Talent: Knowledge &Skill • Distinctiveness of Capabilities • Customer relevance / leadership t %,$ Adaptedfrom “Jumping the S-Curve”Paul Nunes and Tim Breene HBR Press, 2011 Breakthrough innovation elevatesthe curve increases costofjump Generally a function of anew business modelorprocess and signaled with new usage patterns Incremental innovation elongatesthe curve decreases value ofjump
  23. 23. Outcomes & Metrics: Enterprise Value Context Model The World Strategic Themes Target Outcomes Target Outcomes … Solutions Capabilities Capabilities Resources Resources Resources Capabilities Capabilities Strategies StrategicIntent Programs ServiceLines orTeams Enterprise Thought Leadership – What / Why /How Much /By When Functionaland/orCross Functional PoV – When (sequence) / Where /Who / Way (internal orexternal) OfferingsorProjects Target Outcomes Target Outcomes SolutionsPoVs PoVs PoVs PoVs Strategic Themes Strategic Themes Solutions

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