Welcome ….I am Audience …..2-3 questions??How many od you have innovation (new products , business models, processes) baked into your corporateHow any of you have projects in your portfolio that have a high probability of failure … ….Should preface that with intentionally How many think you have a good process and resources to truly innovate
Had a chance to interview Cathy Benko a few years ago for my book. At the time, alignment was the big idea on everyone’s mind, Asked her about this, and she pointed out the best way to assess the long term health of companies.Read quote:What do you guys think?
EVERYONE talks about innovation.Hear form students that it is “someone else job…”Everyone has ideas, but often it is hard to understand how ideas turn into something. It is actually tough dirty work , and a team based activityHere is where traditional IT mgmnt and PPM processes become an issue
One side ….on the other….((Each line}}IT portfolio practices are often inconsistent with an innovation mindset
Results of traditonal approach is very good at staying the course, making iterative changes ….not so good at exploring other innovation pathsNew unmet needsWhite spaceEmerging oppty
As an example….
When our team came in…we focused on several significant issues that needed attention.Known….but somehow not resourced.So they couldn’t <<CLICK>>>We encouraged them to work on new ways to build revenue, create loyalty and differentiate.
So I think you can and do need to do both….You can stay alignedandsend out expeditions.
Anyone use PPM processes like this?- Highly valuable - Groups go around it?What do you do for flexibility?
The idea of a approaching some of your project workThrough the lens of an innovation funnel
The idea is to invest in Generating real insightUsing insight for new ideas Exploring concepts / prootypes/ different methods for developing the ideasDoing some modeling, but designing experimentsFiltering at each level Deciding problems to solve firstLooking at a large # of approaches etc
Show one of my favorite innovations …
How this might have moved through the funnel….<on click>>INSIGHTCustomers are switchers- 100+ Nationalities in Dubai- Average order time 6 Min- Nothing in fridge= pizzaIDEA BASED ON INSIGHTInstant store specificordering tool.CONCEPT/ DESIGN Push of a button, at fridge, info/preference pre-shared.MODELINGExpect xx% increase<< ACTUAL 500% >>EXPERIMENTATIONFast and inexpensive ($9K), with measurement and feedback.
Could not happen with a traditional approach
Here’s how they did it
How many have fromal processes to agree on what the data says and hwattheopportutntiy isD
Conumerization of dataMobilityLoss of pc based usage due to…other tools??
End with E 2.0 from the conference website..circled a few Agility FlexibilityFuzzy BoundariesSimpleOn DemandShort time to marketNeed to support this on the inside.
Moving from Project Portfolio to Innovation Funnel
Dave Rochlin1November 2012Institute for Business InnovationUC Berkeley, Haas School of Business
Innovation@ BerkeleyRochlin 11/2012 “If you want a leading indicator of what yourorganization will look like three to five yearsfrom now, where would you look?" “Where you will be is typically reflected in yourproject portfolio. Its the truest measure oforganizational intent."2Cathy Benko – Vice Chairman , Deloitte
Innovation@ BerkeleyRochlin 11/2012Case Study - Web Team (50+) What they were working on Keeping the lights on○ Basic site upkeep and maintenance○ Ensuring online transactions running smoothly○ User research, surveys, and usability testing○ Acquisition campaigns/marketing Incremental improvement○ Inbound functionality requests (backlogged)○ Re-design for CMS○ Data schema updates○ Keeping front end in synch with backend○ Etc.6
Innovation@ BerkeleyRochlin 11/2012The Big Picture Areas for Innovation Only 20% ofcustomers use webservices Significantcustomer churn Low loyalty Low perceivedvalue Lag competitors inonline offerings7
Innovation@ BerkeleyRochlin 11/2012You can stay alignedandsend out expeditions.8
Innovation@ BerkeleyRochlin 11/2012The Enemy of Innovation9
Innovation@ BerkeleyRochlin 11/2012Innovation at UC Berkeley Haas Ambitious Innovation Leadership Developmentagenda Through IBI, one of the largest dedicated effortsto study and advance the art and science ofinnovation○ Lester Center – Entrepreneurship○ Fisher center - CIO leadership○ Garwood Center – corporate innovation Center for Open Innovation Berkeley Innovation Forum Haas @ Work12
Innovation@ BerkeleyRochlin 11/201213Via Haas@Work, an applied innovation program offeringcompanies the opportunity to partner with students andfaculty to address a significant business challenge.Substantial Hands-On Industry Experience13
Innovation@ BerkeleyRochlin 11/2012 A 16 week course is built around a specific companyopportunity or challenge. Innovation/consulting agency model, with a definedframework, structure, and faculty oversight.1414Haas@Work
Innovation@ BerkeleyRochlin 11/2012Experi-mentation- Customers are switchers- 100+ nationalities in Dubai- Average order time 6 Min- Nothing in fridge= pizzaInstant store specificordering tool.Push of a button, atfridge, info/preference pre-shared.Expect xx% increase<< ACTUAL 500% >>Fast and inexpensive($9K), with measurementand feedback.17Insight based ideagenerationConceptdesign.ModelingInnovationInsight generation andopportunity assessment.How this would look through the funnel
Innovation@ BerkeleyRochlin 11/2012Traditional Portfolio Rejection Triggers Integration into existing systems and multi-unitfootprint issues = big project Complex issues with supporting multiple customerenvironments Other post-implementation customer and storelevel support issues Unknown business case and impact18
Innovation@ BerkeleyRochlin 11/2012Lean Startups Mindset“Focus on having more swings at the bat or shots on goal,or whatever the metaphor is…the goal isn’t to fail fast, butto succeed fast. We can do that by iterating rapidly.”- Steve Blank In other words: If you try 5 pizza buttons one will work, but you may needto try it 5 times. Also worth noting: Successful innovation are built on a platform of deep andnovel insight.20
Innovation@ BerkeleyRochlin 11/2012Thoughts on Creating a Funnel Mentality22
Innovation@ BerkeleyRochlin 11/2012Embrace The Duality of the CIO Role23
Innovation@ BerkeleyRochlin 11/2012Problem Find Before Problem Solve24 Insight identification rather than data gathering Agree on what you are solving before solving
Innovation@ BerkeleyRochlin 11/2012Insight vs Data250%10%20%30%40%50%60%70%80%90%100%2010 2012 2014(proj)Android/ChromeIOSWindowsData Insight:Find the“why behind the what”
Innovation@ BerkeleyRochlin 11/2012Beware of What You Know You Know "Who the hell wants to hear actors talk? H.M. Warner, Warner Brothers “With over fifteen types of foreign cars already on salehere, the Japanese auto industry isn’t likely to carve out abig share of the market.” Business Week “640K ought to be enough for anybody.” Bill GatesJumpstart innovation by rethinking what you know aboutusers and customers.26
Innovation@ BerkeleyRochlin 11/2012Process, Resources, and Organization No Free Lunch – dedicated group or resource set-aside Not stage gates, but a process for each step Partner with business owners and other stakeholders27