The document discusses orienting innovation by defining what innovation means, identifying challenges to innovation, and proposing a framework for collecting, selecting, scoping, and building programs around innovative ideas. It suggests using tools like the Realm and Motive Matrix, CV3 ratings, and novelty, complexity, technology, and pace critiques to evaluate ideas and develop roadmaps and delivery programs focused on business outcomes rather than IT outputs. The goal is to ensure value is delivered through a process of evaluating, directing, and monitoring innovative initiatives.

1. Orienta(ng
Innova(on
Vincent F Dermody
1 June 2010

2. +
BACKDROP…
n Innovation is one of the most common words used when
talking about change.
n There is a need to ensure the latest fad doesn’t drive out
senseless technology spend.
n There is a need to ensure value is delivered
n There is a need to ensure value is expected
n There is a need to ensure value is measured
n Qualify, Quantify, Justify

3. +
What is innovation?...... TRIZ?
Level 1 - Routine design problems solved by
methods well known within the specialty.
Rarely Inventive.
Level 2 - Minor improvements to an existing Range of
system using methods known within the feasibility
industry
TRIZ
(Altshuller) Level 3 - Fundamental improvement to an
existing system using methods known outside
Levels of the industry
Invention
Level 4 - A new generation of a system that
entails a new principle for performing the
primary functions.
Academic
& Research
Level 5 - A rare scientific discovery or
pioneering invention of an essentially new
system

4. +
What is innovation?..... Google…
Credit Marissa Mayer, VP Google
INNOVATION, IDEAS COME A LICENSE TO
NOT INSTANT FROM PURSUE YOUR
PERFECTION EVERYWHERE DREAMS
MORPH SHARE AS
PROJECTS MUCH USERS, USERS,
DON'T KILL INFORMATION USERS
THEM AS YOU CAN
CREATIVITY YOU'RE
DATA IS
LOVES BRILLIANT?
APOLITICAL
CONSTRAINTS WE'RE HIRING

5. +
What is innovation?..... Google…
Credit Marissa Mayer, VP Google
EVALUATE
INNOVATION, IDEAS COME A LICENSE TO
NOT INSTANT FROM PURSUE YOUR
PERFECTION EVERYWHERE DREAMS
DIRECT
MORPH SHARE AS
PROJECTS MUCH USERS, USERS,
DON'T KILL INFORMATION USERS
THEM AS YOU CAN
MONITOR
CREATIVITY YOU'RE
DATA IS
LOVES BRILLIANT?
APOLITICAL
CONSTRAINTS WE'RE HIRING

6. +
The 7th Principle of ISO38500?
Human
Responsibility Strategy Innovation Acquisition Performance Conformance Behaviours
Evaluate Evaluate Evaluate Evaluate Evaluate Evaluate Evaluate
Direct Direct Direct Direct Direct Direct Direct
Monitor Monitor Monitor Monitor Monitor Monitor Monitor

7. +
The Innovation Challenges
Failures Success
• Unmeasured/Unconstrained • Constraints
• Ability driven • Needs driven
• No Value specified • Value Management
Dimensions Features
• Time • Real time decisions
• Change • Agile delivery
• Speed • “Just Enough” delivery

8. +
The Innovation flow
Build
Program of
Scope Delivery
Value &
Collect & Cost
Select
RMM CV3 BVM NCTP

9. +
Collect & Select
n Realm & Motive Matrix
• Map whether the innovation idea is delivering:
• Change to the Business purpose, or paradigm
• Change to how Business is done
• Change the tools used
• Map whether the innovation is:
• Needs driven
• Opportunity driven
• Ability driven
n Generate a CV3 Rating
n Consequence- What is the consequence of doing nothing
n Volatility- Rate the likelihood of significant change in the idea
n Volume- What is the volume potential associated with idea
n Velocity-How soon will the idea be realized

10. +
Collect & Select
Optimal for innovation Not ideal for innovation
Consequence NEED DRIVEN OPPORTUNITY ABILITY DRIVEN
DRIVEN
There are negative consequences
if action is not taken.
Change the
There are positive value adding
Business
consequences. IDEA 2
There are no clear Consequences.
Change way of
doing Business
IDEA 1
Volume, Velocity and Volatility are
ranked 1-5, low to high. The V3
variable is then derived as:
Volume x Velocity
Change Tools of
Volatility
Business
8<
4-8
<3

11. +
SCOPE VALUE & COST
n Assign high level metrics of expected business value (BVM)
n E.g. The creation of item X will:
n Grow existing patronage by Z%
n Sell X% more product
n Reduce cost to serve yielding $W million OPEX reduction
n Assign boundaries of cost, effort and function
n E.g. The creation of item X will:
n Not cost more than $W
n Will be ready within 6 months and be full rollout ready.
n Not affect cost to operate, or cost to serve

12. +
BUILD PROGRAM OF DELIVERY
Break down idea/concept into fundamentals
Use Novelty Complexity Technology and Pace (NCTP) critique
Build out roadmap for strategic platforms for CTP concepts
Reassess High Novelty concepts for worth.
Define agile “innovation program”
Define “strategic platform program”
Recalibrate business value measurements (BVM)

13. +
BUILD PROGRAM OF DELIVERY
Novelty
Outsourced Rapid High Risk to
development successful
Outcome
Pace Complexity
Likely Strategic Likely Strategic
Partners Platforms
Technology

14. +
BUILD PROGRAM OF DELIVERY
Novelty Novelty
STRATEGIC
PLATFORM
Complexity
Complexity
Pace
Pace
AGILE
Technology Technology

15. +
BUILD PROGRAM OF DELIVERY
n Deliver Business Outcomes, not IT Outputs.
n Merge and move Outcomes across projects as needed
n Use CV3 to select the components (Outcomes) to be
delivered first.
n i.e. what part of a complex solution will :
n Affect maximum volume of users/consumers
n Will matter most
n Will matter soonest
n Is least likely to change