Systematic Innovation and Agile Portfolio Managment
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Agile Finland Scaled Agile meetup presentation on systematic innovation on the portfolio level. The presentation gives guidance on what are the building blocks in addition to Agility to achieve innovation.
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Systematic Innovation and Agile Portfolio Managment
- 1. Agile portfolio management and systematic innovation Teemu Toivonen – Teemu.Toivonen@gmail.com, @number_9_
- 2. Introduction – Teemu Toivonen 2 • Founder, Principle Lean Consultant @ Leanex • Education: M.Sc.Engineering • > 15 years of experience in IT (Consultant, concept designer, manager…) • Professional interests: Lean, Agile, Systematic Innovation (TRIZ), Service Design, Systems Thinking • Publications: • ”Continuous innovation – combining Toyota Kata and TRIZ for sustained innovation, value”. • “Value stream analyses for complex systems and processes” • “Systematic innovation in large scale Agile software development” • Work context: IT projects and services, business process development
- 3. Goal for this presentation • Challenge your view about innovation and agility on the portfolio level • Give you enough information to enable experimentation with SI tools Disclaimer: this is an advanced presentation and assumes familiarity with basics concepts of Agile portfolio management. The topics are intended to add to “traditional” Agile portfolio management approaches, not to replace them.
- 4. My last 3 years with portfolios • Broadcasting company • Agile portfolio management model • Major Finnish bank • Agile portfolio management model • Major Finnish bank (non life insurance) • Way of working transformation • Major Finnish bank (wealth management) • Facilitation of portfolio level content creation and transformation • Major Nordic IT company (managed services) • Portfolio management model • Facilitation of content • Major Nordic bank • Portfolio management model across portfolios • Facilitation of strategic themes for personal banking • Nordic retail chain • Agile portfolio management model • Facilitation of content creation • Defining ways of working • Driving and coaching change • Content facilitation
- 5. Understanding innovation capability Key systematic innovation concepts • Contradictions • Inventive epics The voice of the product Next level customer insights • Thinking styles • Generational analyses Summing it up – key take a ways
- 6. The Lean/Agile approach to innovation SAFe innovation principles • Producers innovate, customer validate • Get out of the office • Provide time and space for creativity • Apply innovation accounting • Pivot without mercy … so basically Lean and Lean startup on top of Agile? • Fast feedback, data oriented decisions • A little bit of customer understanding • A little bit of crowdsourcing to employees
- 8. Innovation capability = Quality of ideas Agile experimentation • MVP’s • Agile development • Pivoting • Non SW experiments • High productivity frameworks • … • Gemba • Data analyses • Group diversity • ?
- 9. Understanding innovation capability Key systematic innovation concepts • Contradictions • Inventive epics The voice of the product Next level customer insights • Thinking styles • Generational analyses Summing it up – key take a ways
- 10. 2 of the 3 most common strategic themes Themes: • World class customer experience • Cutting costs by improving operational efficiency Good themes right? What could go wrong?
- 11. The problem with traditional themes Ideas where customer experience can be improved without raising costs Ideas where costs can be lowered without affecting customer experience Where customer experience and operational costs conflict with each other
- 12. A better approach… Framing the problems as a contradiction to be solved One theme: Raising our customer experience (NPS + 10 %) AND cutting our costs per user by 30 %!
- 13. Understanding contradictions Traditional approach Inventive approach • Tradeoff • Optimize • Select • Prioritize • …. • Frame as contradiction • Find inventive solution • Utilize systematic innovation tools • Inventive principles • Separation principles • Trends of evolutions • ….
- 15. Traditional problem solving Creative facilitation methods Systematic innovation Probable innovation zone Probable innovation zone Probable innovation zone Current solution Current solution Current solution Probable innovation zone Probable innovation zone Probable innovation zone = idea Probable innovation zone Probable innovation zone The quality and quantity of ideas improves and the methods develop http://www.sytyke.org/wordpress/wp-content/uploads/2013/06/Sytyke_2_2014_low.pdf
- 16. My problem General problem My solution General solution Formulate problem as a contradiction Generalize problem and choose appropriate contradiction matrix 40 inventive principles Translate general solutions into specific solutions for the contex
- 17. Inventive principle 5 “merging” with business examples A. Bring closer together (or merge) identical or similar objects, assemble identical or similar parts to perform parallel operations. • Personal computers in a network • Cell-based Manufacture • Toyota JIT • Merge companies with related products • Internet Cafe • The ‘Joiner Triangle' - Quality/Scientific Approach/All-One-Team (10) • ‘Young engineers have ideas, old engineers have bad experiences' Japanese saying B. Make operations contiguous or parallel; bring them together in time. • Theory of Constraints (11) • Enlisting customer help in designing the product (Boeing 777 ‘Working Together Teams) • Multi-media presentations • ‘Aligned, Creative and Exploring' Teams (12) CONFIDENTIAL 17
- 18. Resolving contradictions Ideas where customer experience can be improved without raising costs Ideas where costs can be lowered without affecting customer experience Where customer experience and operational costs conflict with each other
- 19. Understanding innovation capability Key systematic innovation concepts • Contradictions • Inventive epics The voice of the product Next level customer insights • Thinking styles • Generational analyses Summing it up – key take a ways
- 20. Products do not evolve randomly … … SI/TRIZ research show that on average product evolution follows predictable trends of evolution.
- 21. Twenty digi trends • Customer expectation • Segmentation • Decreasing human involvement • Boundary breakdown • Customer buying hierarchy • Dynamization • Increasing dimensionality • Increasing asymmetry • Increasing transparency • Trimming/reducing complexity • Increasing use of senses • Action coordination • Mono-bi-poly (various) • Mono-bi-poly (similar) • Mono-bi-poly (increasing differences) • Design point • Degrees of freedom • Nesting • Rhythm coordination • Listening/communication
- 23. Customer expectation Commodity Product Service Experience Transfor- mation
- 25. Decreasing human involvement Human Human + tool Human + semi automated tool Automated tool Autonomous tool with autopoeisis
- 26. Understanding innovation capability Key systematic innovation concepts • Contradictions The voice of the product Next level customer insights • Thinking styles • Generational analyses Summing it up – key take a ways
- 27. Understanding intangible value Social – Tangible • Transport family and friends • Safe method of traveling • Environmentally friendly Social – Intangible • Social value statement (Prius) • Identity – ”belonging to a club” Individual – Tangible • Travel from A to B • Move stuff • Value for money Individual – Intangible • Reward myself • Enjoyment of driving A man always has two reasons for doing anything: a good reason and the real reason. J.P. Morgan
- 28. Generation cycles Artist ”Suffocated” • Duty, honor • Sacrifice • Drifting • Patient • Loyal • Traditional values? Hero ”Heroic” • Optimistic and idealistic • Difficult to reach, but brand conscience • Team oriented and committed if engaged • Big expectations and opinionated Prophet ”Wise” • Moralistic and idealistic • For ever young • Active work-a-holics • Committed and privileged Nomad ” Practical” • Skeptical and careful • Self sufficient and practically inventive • Individually oriented and controversial • Demanding and lazy from an outside perspective
- 29. Generational cycles - breakpoints Willian Straus ja Niel Howe http://www.fourthturning.com/
- 30. Thinking styles Thinking style Attracts Avoids Order(35 %) • Ego trip • ”My way” • Flattering • Rebelling • Change • Other people’s rebelling • Loss of status • Social rejection Scientific (38 %) • Peer recognition • Best in category • Biggest/best/fastest • Pay for performance • Losing • Not keeping up Communitarian (15 %) • Making a difference • Harmony • Maximizing my own potential • Black and white thinking • Conflicts • Hierarchy Clare Graves
- 31. Understanding innovation capability • Key systematic innovation concepts • Contradictions • The voice of the product • Next level customer insights • Thinking styles • Generational analyses Summing it up – key take a ways
- 32. Summary First focus on the basics • These are relatively advanced topics • First get the basics working, then play around Ideas matter • The quality of ideas is equally important • The quality ideas can be improved with the right approach More information • Slides, scientific papers, etc. • Teemu.Toivonen@gmail.com
Editor's Notes
- We can do better It is really important, I have been doing mainly this for a long time But it is not enough
- Säihköinen viihde elektroniikka
- Auto – historia – Henry Ford /musta, jne
- Säihköinen viihde elektroniikka
- Can be a strategic theme NFR for epics!