Innovation - road to value TopConf Nov2015

https://www.flickr.com/photos/mendhak/8162305237
Curiosity,
learning
and
innovation
-‐

my
agile
road
to
the
value!

Visionary
startups
are:

•
able
to
see
customers
unmet
need,

• able
to
create
minimum
viable
solution
in
a

shortest
possible
time,

• gather
feedback
to
identify
customer’s

value

• able
to
repeat
this
cycle

So, the goal is –
to satisfy
customer’s unmet
needs faster!

So, the goal is –
to satisfy
customer’s unmet
needs faster!
CAPT.OBVIOUS

Do
I
really
understand
customer’s

future
Needs?

Do
I
really
know
WHAT
to
build?

Do
I
really
know
HOW
to
build
it!
StartUper’s
dilemma

“..
I
tried
so
many
things
...

...too
many
unknowns
...

...
may
be
I
should
go
back
to

my
normal
work?...”

Well
worked
out
and
known
routines

can
give
me
back
a
feeling
of

confidence
and
succeeding,
but
…

Well
worked
out
and
known
routines

can
give
me
back
a
feeling
of

confidence
and
succeeding,
but
…

…
not
helping
me
to
create
the

innovation
that
customers
would
need

Well
worked
out
and
known
routines

can
give
me
back
a
feeling
of

confidence
and
succeeding,
but
…

…
not
helping
me
to
create
the

innovation
that
customers
would
need
Like
if
I’m
a
successful
franchisee
then
I’m

still
not
the
innovator
–
just
follower!

My observations
• Focusing
on
customer’s
value
creation,

• Getting
feedback
faster,

• Flat
supportive
organizational
culture
and

• Practical
value
delivery
with
agile
development
are
essentials
for
startups
not
to
give
up
and
to
bring
truly

innovational
products
to
the
market
on
the
much
faster
pace

than
it
was
done
ever
before.

Business challenges
World
is
changing
and
changing
fast

Who uses Skype?
Agile
Saturday,
28th
of
September,
2013

Mobile
phone
–
25
years
Skype
–
10
years
Telephone
–
105
years
Instagram
–
4
years

How
long
did
it
take
to
reach
300M
users
Millions
of
users
0
103
207
310
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Mobile
phone
–
25
years
Skype
–
10
years
Telephone
–
105
years
Instagram
–
4
years

“So
what's
next?
Technology
companies
live

and
die
by
their
ability
to
innovate,
and
Skype

is
no
different.”
–
Irish
Independent
http://www.independent.ie/business/technology/skype-‐still-‐calling-‐the-‐shots-‐but-‐competitors-‐are-‐gaining-‐29557133.html

UPDATED
06
SEPTEMBER
2013

Source:
Boing,
Capcom,
Toyota,
X&Y
Partners
2012
analysis
Time
to
production

Aircrag
Automohve
Video
Games
0 2 4 6 8
Avarage
Result
Source:
Boing,
Capcom,
Toyota,
X&Y
Partners
2012
analysis
Time
to
production

Aircrag
Automohve
Video
Games
0 2 4 6 8
Avarage
Result
8
Source:
Boing,
Capcom,
Toyota,
X&Y
Partners
2012
analysis
Time
to
production

Aircrag
Automohve
Video
Games
0 2 4 6 8
Avarage
Result
4
8
Source:
Boing,
Capcom,
Toyota,
X&Y
Partners
2012
analysis
Time
to
production

Aircrag
Automohve
Video
Games
0 2 4 6 8
Avarage
Result
4
4
8
Source:
Boing,
Capcom,
Toyota,
X&Y
Partners
2012
analysis
Time
to
production

Aircrag
Automohve
Video
Games
0 2 4 6 8
Avarage
Result
6
4
4
8
Source:
Boing,
Capcom,
Toyota,
X&Y
Partners
2012
analysis
Time
to
production

Aircrag
Automohve
Video
Games
0 2 4 6 8
Avarage
Result
1
6
4
4
8
Source:
Boing,
Capcom,
Toyota,
X&Y
Partners
2012
analysis
Time
to
production

Aircrag
Automohve
Video
Games
0 2 4 6 8
Avarage
Result
3
1
6
4
4
8
Source:
Boing,
Capcom,
Toyota,
X&Y
Partners
2012
analysis
Time
to
production

Focusing
on
improving
existing
business
models
is

not
enough
anymore
..
large
company
understands

that
needs
to
deal
with
ever-‐increasing
external

threats
by
continually
innovating.

To
ensure
their
survival
and
growth,
corporations

need
to
keep
inventing
new
business
models.

This
challenge
requires
entirely
new
organizational

structures
and
skills. Why
the
Lean
Start-‐Up
Changes
Everything

Steve
Blank
MAY
2013
HBR

What is wrong with the
structure?
Why
the
new
one?

Deterministic model
Every task must be completely understood
Same input always becomes the same output
Inputs

• Needs/
Requirements

• Technology

• Team/skills
Process
Output

• Potentially

shippable

product

(increment)

Is product development a defined process?
• Is every task always understood by everyone?
• With the same input (including people) do we…
• always reach the same results?
• is it possible to have the same input?
Source:
Mike
Cohn

Lessons from Planned Economies (M.Poppendieck)
conventional
project
management

training
focuses
on
using
a
plan
as
the

program
for
action;

it
does
not
teach
project
leaders
how

to
create
a
software
development

environment
that
fosters
self-‐
organization
and
learning.

Reality of Information Systems
Source:StandishGroupStudyReportedatXP2002byJimJohnson,Chairman
Always
Ogen
Somehmes
Rarely
Never

Reality of Information Systems
Source:StandishGroupStudyReportedatXP2002byJimJohnson,Chairman
Always
Ogen
Somehmes
Rarely
Never
64
%
!!!!

How
well
people
knew
customer’s
needs?
Topics
to
consider

How
well
people
knew
customer’s
needs?
How
many
levels
of
separation
from

the
customer
employees
had?
Topics
to
consider

How
well
people
knew
customer’s
needs?
How
many
levels
of
separation
from

the
customer
employees
had?
Topics
to
consider
How
effective
at
influencing
the

change
needed?

http://exileinportales.blogspot.com/2012/04/heh-‐and-‐another-‐thang.html

http://exileinportales.blogspot.com/2012/04/heh-‐and-‐another-‐thang.html
70%
of
successful

entrepreneurs
have
incubated

their
business
ideas
while

employed
by
someone
else,
but

stop
working
for
others.
Why?

Because
most
managers
are

simply
unbearable
by
failing
to

attend
to
their
employees’

ideas How
Bad
Leadership
Spurs

Entrepreneurship
Tomas
Chamorro

HBR
SEPTEMBER
10,
2012

We’re loosing the relay race
https://hbr.org/1986/01/the-‐new-‐new-‐product-‐development-‐game
The
…
“relay
race”
approach
to
product

development
may
conflict
with
the
goals
of

maximum
speed
and
flexibility.
Instead,
a
holistic
or

“rugby”
approach—where
a
team
tries
to
go
the

distance
as
a
unit,
passing
the
ball
back
and
forth—
may
better
serve
today’s
competitive
requirements.
The
New
New
Product
Development

Game
Hirotaka
Takeuchi,
Ikujiro
Nonaka

Microsoft
Overhauls,
the
Apple
Way
NICK

WINGFIELD
NYT,
July
11,
2013
http://
www.nytimes.com/2013/07/12/
technology/microsoft-‐revamps-‐structure-‐
and-‐management.html

“This challenge requires entirely new
organizational structures and skills.” 
– Steve Blank
Reporting
vs
Supporting
organizational
culture

The Agile Manifesto
We are uncovering better ways of developing software by doing it and helping
others do it. Through this work we have come to value:
Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
That is, while there is value in the items on the right, we value the items on the
left more.
© 2001, the above authors but only in its enthis declaration may be freely
copied in any form, etirety through this notice.

I see …
I can’t buy/copy one
really innovative
business model off
the shelf …

I see …
I can’t buy/copy one
really innovative
business model off
the shelf …
…ok …
I will create
my own!
On the fly!

Empirical model
Inputs

• Needs/
Requirements

• Technology

• Team/Skills
Process
Output

• Potentially

shippable

product

(functional

increment)

Empirical model
Inputs

• Needs/
Requirements

• Technology

• Team/Skills
Process
Output

• Potentially

shippable

product

(functional

increment)
Team’s
management

tools/

“Car
steering
wheel”

Lean
(StartUp)
-‐
reduce
waste
and

mitigate
risks
as
fast
as
we
can
• Don’t
build
something
for
which
there
isn’t
a

customer

• Don’t
let
mistakes
propagate
into
the
process

• Find
problems
early

• Minimize
on-‐hand
inventory
(eg.
decisions):

optimize
material/information
flow

intrapreneurs/

Lean
StartUp
Scrum

team(s)
Customers
ˇ
ˇ ˇ

intrapreneurs/

Lean
StartUp
Scrum

team(s)
Customers

Servant
Leaders
intrapreneurs/

Lean
StartUp
Scrum

team(s)
Customers

Benevolent

Dictator
for
Life
Servant
Leaders
intrapreneurs/

Lean
StartUp
Scrum

team(s)
Customers

Benevolent

Dictator
for
Life
Servant
Leaders
intrapreneurs/

Lean
StartUp
Scrum

team(s)
Customers
Waterline

Good
product
–
work
of
cross-‐functional
teams
Feasible/

Achievable
Sustainable/

Waterline
Desirable
with
flat
structure
to
customers
with
technology
Business
model
Culture
and

behavior
Benevolent

Dictatorship/

Constraints
Skills
Dev
Team
Users
Managers

Good
product
–
work
of
cross-‐functional
teams
Feasible/

Achievable
Sustainable/

Waterline
Desirable
with
flat
structure
to
customers
with
technology
Business
model
InnovationCulture
and

behavior
Benevolent

Dictatorship/

Constraints
Skills
Dev
Team
Users
Managers

A
ship
shipping
a
ship

shipping
a
ship
shipping

a…
Servant
Leadership
is
…
http://www.fotovlieger.nl/_media/project/201203_blue_marlin/dsc04650.jpg

Mighty
Servant
3
http://en.wikipedia.org/wiki/Mighty_Servant_3

Collaboration
is
a
dance
of
contribution,
requiring
that

people
alternately
step
forward
to
contribute
and
step
back
to
let

others
contribute.
This
dance
acquires
a
sort
of
rhythm.
Dr.
Alistair
Cockburn

Collaboration
is
a
dance
of
contribution,
requiring
that

people
alternately
step
forward
to
contribute
and
step
back
to
let

others
contribute.
This
dance
acquires
a
sort
of
rhythm.
Dr.
Alistair
Cockburn
Lift
others

Be
courteous.
Lower
your
social
posture.
Listen

intently.
Recognize
others.

Collaboration
is
a
dance
of
contribution,
requiring
that

people
alternately
step
forward
to
contribute
and
step
back
to
let

others
contribute.
This
dance
acquires
a
sort
of
rhythm.
Dr.
Alistair
Cockburn
Lift
others

Be
courteous.
Lower
your
social
posture.
Listen

intently.
Recognize
others.

Make
progress

Say
something
valuable.
Clarify
the
way

forward.
Focus.
Get
a
result.

Collaboration
is
a
dance
of
contribution,
requiring
that

people
alternately
step
forward
to
contribute
and
step
back
to
let

others
contribute.
This
dance
acquires
a
sort
of
rhythm.
Dr.
Alistair
Cockburn
Lift
others

Be
courteous.
Lower
your
social
posture.
Listen

intently.
Recognize
others.

Increase
safety

Be
yourself.
Donate.
Widen
the
boundary.

Support
others.
Challenge
but
adopt
ideas.
Build

personal
relationships.
Not
betray.
Leave
some

privacy.
Make
progress

Say
something
valuable.
Clarify
the
way

forward.
Focus.
Get
a
result.

Collaboration
is
a
dance
of
contribution,
requiring
that

people
alternately
step
forward
to
contribute
and
step
back
to
let

others
contribute.
This
dance
acquires
a
sort
of
rhythm.
Dr.
Alistair
Cockburn
Lift
others

Be
courteous.
Lower
your
social
posture.
Listen

intently.
Recognize
others.

Increase
safety

Be
yourself.
Donate.
Widen
the
boundary.

Support
others.
Challenge
but
adopt
ideas.
Build

personal
relationships.
Not
betray.
Leave
some

privacy.
Make
progress

Say
something
valuable.
Clarify
the
way

forward.
Focus.
Get
a
result.
Add
energy

Keep
your
energy
high.
Challenge.
Contribute.

For You Today
• Focus
on
customer’s
value
creation,

• Get
feedback
faster,
Fail
faster

• Create
Flat
supportive
organizational
culture
and

• Practice
daily
value
delivery
with
agile
development
to
bring
truly
innovational
products
to
the
market
on
the
much

faster
pace
than
it
was
done
ever
before.

“We
don’t
get
a
lot
of
thanks
up
here.

But
when
I
look
over
there
and
see
that

little
kid,
the
look
in
his
eyes,
that’s
all

the
thanks
I
need.”

Position
http://farm1.staticflickr.com/155/410876816_bbf4c502de_o.jpg
Learning

is

Messy

Innovation - road to value TopConf Nov2015

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