Innovation As Maturity

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Because successful Innovation is new to so much of the business, it makes us think about how to manage it with a "new" process. But ultimately, the secret to making innovation really meaningful could lie in teaching the new dogs old tricks.

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Innovation As Maturity

  1. 1. Innovation as Maturity Orchestrating Agility An archestra notebook. © 2013 Malcolm Ryder / archestra
  2. 2. Agility as Maturity • The prevailing notions regarding “successful” innovation fall into two groups. • In one, success is about getting innovation underway as a day-to-day work practice. In the other, success is about deriving practical business value from the outputs of innovation. • Both groups now recognize the importance of pursuing success through a process that allows the pursuit to be managed. • However, more important than the process is a management program. Innovation is not merely a process outcome but instead is a competency. • Competency is about being able to bring the right elements into the activity that is needed at the time for the problem (or opportunity) at hand. In management, a program protects the persistence of the processes throughout changes in participants, resources and schedules. Meanwhile, a program also helps to coordinate the intents of the process outputs from multiple processes. • Akin to the overall intent of capability maturation, the real “business value” of innovation can be directed by what kind of goal is the target of the competency. Innovation is just a way to reach the target. • The following illustrates the primary target being Agility in the market. Sustainable agility is an advanced stage of maturity at which the competency for innovation is stable and productive.
  3. 3. Why we like Amazon: a sketch Amazon decided to sell books that can be delivered, by processing the sale start-to-finish online. Then it decided to sell almost anything legal that can be delivered. People came to Amazon requesting a wide variety of things, and different things needed different delivery mechanisms. Over time, whenever Amazon decided to have another kind of item offered for sale and delivery, it compiled different sources (suppliers) and different delivery mechanisms to underpin the offer of sale. If the format of the sale items themselves evolved (e.g., from material to digital), Amazon re-engineered the delivery mechanisms and the sources as necessary but applied standards and models to both, to maximize the uniformity of available use that would still apply across the range of different requests. As a result, Amazon computing, warehousing, fleets, and tablets are all industry state-of-the art infrastructure for delivery. Amazon can even use its own infrastructure to radically renovate and evolve the infrastructure itself. Meanwhile, Amazon partners, software and content seamlessly interoperate as necessary, with high regularity, to cover all of Amazon’s chosen market bases with an equally strong customer interface for linking supply and demand. Their interactions in sourcing even generate new kinds of products before the market asks for them. In effect, Amazon cycles continuously through its logistics, its architecture, and its interfacing to generate incredibly high levels of synchronization with changing markets. Few companies of any kind are as well known primarily for their competency at continually and rapidly meeting new and expanding ranges of demand.
  4. 4. GOAL STORY Scope of requesters In Market Territory The market begins as a heterogeneous population in which a wide variety of parties make requests for goods and services. This also includes having many different ways of asking for the same thing. A provider determines how, if possible, to reach the requesters through means of delivery that are feasible. Economy of Scale In Service Level Economy of Scope In Service Provision The provider determines a singular and efficient way to adequately satisfy a significant volume of the identified requesters. For the provider, this efficient adequacy amounts to an important type of effectiveness. Reducing complexity and variety increases the affordability and may be an ongoing effort of improvement. Where there are logical similarities or logical interoperabilities, other kinds of requests may be satisfied by “porting”, integrating, or otherwise extending the request fulfillment ability to them. Extensions also include help by co-operators, i.e. partners . Extensions help establish effective substantial coverage of more types of requests.
  5. 5. Evolutionary Maturity In constantly morphing and emerging markets, the business’s ambition is not really new: it wants to be a dominant provider through being preferred by a wide range of customers. This presumption, seen as a goal, creates three “market” problems to solve, respectively: capacity, adoption, and diversity. The three market problems can represent stages in capability maturity. Ideally (as illustrated), solving one problem stages the readiness to solve the next. Solving the diversity problem facilitates solving the adoption problem, which facilitates solving the capacity problem. The final maturity features sustainable agility. PAYOFF: Customers’ deliveries are supported Provision features built-in quality Production offers more choice PROBLEM: Diversity Adoption Capacity The provider with this agility allows customers to find and choose what they want at a level of quality that ensures their need will be supported.
  6. 6. Scope of requesters In Market Territory Economy of Scale In Service Level Economy of Scope In Service Provision PROBLEM Diversity in Reach Adoption In Range Capacity In Supply SOLUTION Logistics Standards Channels ENABLER Infrastructure Architecture Interfacing MARKET VALUE Support Quality Choice © 2013 Malcolm Ryder / archestra GOAL
  7. 7. ENABLERS Infrastructure Architecture Interfacing Embracing this foundation of production agility requires recognizing the different ways that its terms can logically apply. The terms must be understood as roles. The varieties of what serves in the roles expose many possibilities of how they might actually interact and create ROI. Interfacing is the use of connectors allowing multiple entities to co-operate. These entities can be people, procedures, or machines – and therefore the interfaces can create channels of interconnected persons (communicators), organizations (partners), software (applications), devices (networks), and so on. Architectures are structural designs giving particular specifications. By regulating how things are put together, they amount to formulas of organization. Architecture also excludes things that are not recommended or accepted. This means that most practices using rules have an architectural role; this can include engineering, contracting, marketing, or other “constructive” activities and platforms. Infrastructure likewise is whatever systems and services are the environment’s utility and facility bases for executing operations. In this model, innovations alter the capabilities and/or the performance of the roles by introducing, for example, a new component, condition or method. The capabilities or performance enable solutions needed for the market problems. Innovations such as social networks (interfaces), open source (architecture) and WiFi (infrastructure) easily come to mind; likewise, XML (interfaces), web browsers (architecture), and virtualization (infrastructure) are identifiable innovations. Now, analytics is rapidly taking on an infrastructural role, smartphones are becoming architectural, and location services are becoming interfaces. These variations and innovations reflect the nature of the problems being presented by the market – they represent opportunities created through solving the problems
  8. 8. A value chain of agility (example) Within a given market problem there will be a major solution approach and a key enabler of that solution. The impact that a future solution needs from an enabler is often identifiable as the origin or driver of a potential “innovation”. For example, a new kind of infrastructure might revolutionize logistics and improve the mastery of the logistics needed for deliveries to a diverse market population. “Progressing” across the problems (left to right), the key solution of one problem may heavily influence the enabler needed for the “next” problem. For example, the logistics already used for diverse delivery can be a primary reference point for the architecture needed to standardize widespread provisioning. Given that, architecture may present certain critical requirements to the infrastructure underlying the logistics. Likewise, interfaces enabling the creation of purposeful channels are sensitive to existing provisioning standards and, in order to leverage them, may present certain critical requirements to the architecture enabling assurance of those standards. These dynamics can be iterative. and and Provision features built-in quality Production offers more choice SOLUTION: Logistics Standards Channels ENABLER: Infrastructure requirements Architecture requirements Interfacing © 2013 Malcolm Ryder / archestra PAYOFF: Customers’ deliveries are supported
  9. 9. Orchestrating Innovation Value (examples) We recognize the value of innovations with increasing frequency, largely due to the size of investments dedicated to Go-To-Market efforts from companies such as Google, Netflix, Amazon, Apple, Pandora, Facebook, Skype, OnStar, Tesla, and many others in many industries. We see innovations as developments that provide environments, platforms, processes, services and products both within an enabler role, and by leveraging each other across roles. Orchestrating the innovations can strategically generate sustained market agility. Support of Delivery Quality of Provision FUNCTION: Enable Logistics Apply Standards ROLE: Infrastructure Architecture ENABLERS: • • • • • GPS Streaming video/audio Map Reduce Li-Ion rechargeable battery VoIP • • • • • Map services Algorithms Machine learning Design automation 4G LTE Choice of Products/services Build Channels Interfacing • • • • • “Presence” technology Personal Queues 3D Printing Alternative fuel cars Unified messaging © 2013 Malcolm Ryder / archestra MARKET VALUE:
  10. 10. Innovation as Maturity Maturity is sustained behavior that is appropriate and beneficial The market presents the business with its descriptions of propriety and benefit Changing needs in the market pose new problems (or opportunities) New problems/opportunities expose a place for future solutions Future solutions call for new, modified, or re-purposed enablers Enablement is inherently valuable for targeted solutions Innovation generates enablement, delivering inherent value from the investment Managing an enablement towards the goal of a solution is a competency A persistently popular idea is that the competency can be incorporated through some combination of a system and a process. Program management is likely to be that combination.

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