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Service Design Network UK Conference- Mark Priestley SDN uk

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Mark Priestley

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Service Design Network UK Conference- Mark Priestley SDN uk

  1. 1. Why experimentation is the new target operating model
  2. 2. Why experimentation is the new target operating model behaviour
  3. 3. Adaptive Lab are strategic design and delivery partners for ambitious product teams.
  4. 4. In the next 10 years, 40% of the Fortune 500 companies will be gone. John Olin School of Business, Washington
  5. 5. Since 2003, 236 $bn software companies have been founded. Atomico
  6. 6. Source: Accenture and CB Insights $M invested in Fintech companies worldwide 2014201320122011201020092008 0 2,000 4,000 6,000 8,000 10,000 12,000 Disruption creates opportunity, which attracts investors.
  7. 7. technology behaviours competitors regulation changing
  8. 8. technology behaviours competitors regulation changing
  9. 9. Smart everything, ubiquitous connectivity, limitless storage …
  10. 10. Cloud computing, PaaS, infrastructure as code, Bitcoin …
  11. 11. technology behaviours competitors regulation changing
  12. 12. There were 179.6m contactless transactions in March this year. Up 184.0% from the previous year.
  13. 13. In January 2016, more than $1,000,000,000 was sent using Venmo.
  14. 14. A difference in what a customer expects perceives and
  15. 15. perceives A difference in what a customer expects and creates a customer gap
  16. 16. technology behaviours competitors regulation changing
  17. 17. 18
  18. 18. These new companies typically share a common set of characteristics
  19. 19. Small, empowered teams Focus on doing one thing well Modern tech stack and approach Outcome focused User centred Data driven More willing to take risks These new companies typically share a common set of characteristics
  20. 20. technology behaviours competitors regulationchanging
  21. 21. [Even] though it appears to be some obscure European Commission directive about application programming interfaces, it’s not about technology. It’s about the future of banking and it’s really important for banks to take advantage of it. Dave Birch - Director, Consult Hyperion, on PSD2 and XS2A PSD2
  22. 22. What do these changes mean for banks?
  23. 23. Banking is necessary. Banks are not. Bill Gates - The ex-Microsoft guy
  24. 24. Banks are responding…
  25. 25. • Transformations • Innovation Labs • Digital diversification • Internal agencies • Venture Capital / Acquisitions • Accelerators • Beta banks Banks are responding…
  26. 26. • Transformations • Innovation Labs • Digital diversification • Internal agencies • Venture Capital / Acquisitions • Accelerators • Beta banks Banks are responding… but often focus on changing what they’re doing, without addressing the how or the why.
  27. 27. 69% of banking executives didn’t believe retail banks were able to react quickly enough to changing consumer needs. Adaptive Lab / Research Now
  28. 28. Depending which bank you talk to, they will tell you that anywhere between 50% and 90% of their IT budget is being driven by regulatory changes. It makes change very difficult. Anonymous banking exec
  29. 29. 79% of banking executives felt their leadership weren’t knowledgable about digital. Adaptive Lab / Research Now
  30. 30. This is the third agile transformation I’ve been through in the bank. This time we might be able to make it stick. Anonymous banking agile lead
  31. 31. To navigate uncertainty you have to understand your environment. The best way to do this is to experiment.
  32. 32. Experimentation is not trial and error.
  33. 33. Eight experimentation enablers.
  34. 34. An ability to launch stuff quickly, at low cost. 1
  35. 35. Smart thinking around ways to reduce risk. 2
  36. 36. Easy access to customers.3
  37. 37. Funding for products, not projects, or programmes. 4
  38. 38. Backlogs rather than roadmaps. 5
  39. 39. A decision making process built around testing hypothesis. 6
  40. 40. The ability to collect, process and use data. 7
  41. 41. A supportive culture and governance process. 8
  42. 42. A supportive culture and governance process. A decision making process built around testing hypothesis. The ability to collect, process and use data. Backlogs rather than roadmaps. Funding for products, not projects, or programmes. Easy access to customers. Smart thinking around ways to reduce risk. An ability to launch stuff quickly, at low cost.
  43. 43. Experimentation is an organisational behaviour. Encouraging and enabling it is key to real transformation.
  44. 44. You need to setup and organise so that you can do as many experiments per unit of time as possible. Jeff Bezos - Amazon

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