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Knowit Technology Management


Lean Innovation and Knowledge Based Development
       - or, what would Albert say?



 Pär Hammarström
 Senior Mgmt Consultant
 Knowit Technology Management
“A business exist to create a customer.”
                               - Peter F Drucker




               Technology Management
Sustainable Success


Respect for                                                                        Continuous
                        Entrepeneurial               Decide as late
people                  Chief Engineer                as possible
                                                                                   Improvement



                Team Room &
                                                                  Flow/
                   Visual
                                                                 Cadence
                   Mgmt
                                         Amplify
                                         Learning

                                                                Set-based
                     X-Team
                                                                 design



                                         Skilled people




              Management applies and teaches lean thinking

                               Technology Management
                                                                            Adapted from Larman & Vodde
Something different that has impact.




             Technology Management
Product Development is Learning




                     Real World




                                  Information
          Decision
                                  Feedback



                                                Reflection
   Decision making rules


                           Mental Model




                 Technology Management
Technology Management
The Ladder of Inference

                                                I take Actions based on my beliefs

                                                  I adopt Beliefs about the world
        The Reflexive Loop
        (our beliefs affect what                       I draw Conclusions
        data we select next time)
                                                I make Assumptions based on the
                                                        meanings I added




Observable data


                               Technology Management
                                                                                    Chris Argyris
What do you believe that only you believe?




                Technology Management
"Imagination is more important than knowledge."

                    Technology Management
A Different Perspective




Co-ordinating logic
                      Motivation
Transparency
                      Perspective
Knowledge transfer




                       Enacted environment


                              Contextual environment



                             Technology Management
                                                       Sven Hamrefors
Intrinsic Motivation



    Self
                                  • Autonomy
Actualization                          – The desire to be self-
                                         directed
                                  • Mastery
Belongingness
                                       – The urge to get better –
                                         in search of flow
                                  • Purpose
                                       – The aspiration to
  Survival                               contribute to
                                         something bigger than
                                         ourselves

                    Technology Management
Perspectives



                        +
                            Conservative                        Constructive
Reflected experiences
 Previous enactment




                        -   Superstitious                           Novel

                            -                                                  +
                                            Gemba - Go see
                                            Present enactment
Directing Factors

Co-ordinating logic
                   Sensemaking, flow

                Create experiences
                combining the magic
   Transparency
                of sw withon every
                     A PC the power
                                           Connecting
                                                        To create a better
                     desk running
                of internet services                    everyday life for the many
                                           People.
                     MS sw
                across a world of                       people.
                devices
      Knowledge transfer




                               Technology Management
Entrepeneurial Behavior




                                   Anarchistic
                                    Scanning
                                                         Targeted Scanning
Intrinsic Motivation




                        Private
                       Scanning
                                                                     Scanning in
                                                                      principle




                       None       Enacted situation              Contextual situation

                                                 Directing factors
"The secret to creativity is knowing how to hide your
sources."
                      Technology Management
Mindfuck



    1, Line B is longer than line A
    2, They are equally long
    3, We don’t know



A




B




        Technology Management
Mindfuck



1, Line A is in line with line C
2, Line B is in line with line C
3, We don’t know


                                                           C




                                                  A



                                                  B



                                   Technology Management
Mindfuck



1, The mid circles are not equally big
2, The mid circles are equally big
3, We don’t know




                                 Technology Management
“I Know That I Know Nothing”




        Technology Management
What Do We Know

                                                 Waste
                                                 The Tacit Dimension
                                                 Personal ->Interpersonal through
                                                 dialogue and visualizations


  What we know that we             What we don’t know that we
  know – Known Knowns              know – Unknown Knowns


What we know that we don’t         What we don’t know that we don’t
know – Known Unknowns              know – Unknown Unknowns

  Assumptions                                    Ignorance
  Complicated                                    Complex
  Technical systems                              Sociotechnical systems
  Find the facts                                 Trust that patterns will emerge



                         Technology Management
“Common sense is the collection of prejudices acquired
by age eighteen.”
                     Technology Management
4 Mental Models of Innovation

Business as usual                                   Let’s fire all the managers




                                              Continuous innovation as the bottom line
     80/20




                      Technology Management
                                                                            Gary Hamel
Linear Model of Innovation



      Basic Research -> Applied Research -> Development -> Diffusion


Basic Research -> Applied Research -> Development -> Production -> Marketing&Sales


       Market needs-> Development -> Production -> Marketing&Sales




                                 Technology Management
“Keeping the Innovators at the Gate”




            Technology Management
"If we knew what it was we were doing, it would not be
called research, would it?”
                     Technology Management
The Lean Start-up


• Entrepeneurs are everywhere
  – Product Roadmap -> Business Model
  – Product Owner - > Entrepeneur
                                                    Build

• Validated learning
                                            Idea            Product

  – Backlog -> To learn list
  – On site customer ->
    Get out of the building                 Learn           Measure



  – Demo -> Perserve or Pivot                       Data




                    Technology Management
                                                                 Eric Ries
The Adoption Cycle



                                                    Early Majority     Late Majority
                                                    ”Pragmatists”     ”Conservatists”
Relative % customers




                                   Early Adopters
                                    ”Visionaries”


                          Innovators                                                    Laggards
                       ”Tech entusiasts”                                                ”Skeptics”




                                                                                                           Time

                                                      Technology Management
                                                                                                     Geoffrey Moore
Technology First – Needs Later
                                        Transition point
                                       where technology
                                        satisfies basic
                                            needs
Relative % customers




                                                            Excess Technology
                                                            Most customers not
                                                            interested
                                                                                                   Required
                                                                                                   Performance

                       Technology Dominates                User Experience Dominates
                                                           (convenience, reliability, cost...)




                                                  Technology is ”good enough”                         Time

                                                  Technology Management
                                                                                                 Donald Norman
X-Team

                     Feasible




               Technology




                                   User
Viable
         Business                            Desirable
                                Experience



               Technology Management
                                                    Tim Brown
Customer Insight Driven – Not Customer Driven
                                                      Abstract

                                    Insight                             Ideas
                                              ABDUCTIVE THINKING
Figure out the story



                           Ask why 5 times                          Describe the benefits




                                                                                               Tell a new story
                       Analysis                                              Synthesis




                                                                   Prototype and evolve a minimum
                         Observe how a job is done
                                                                   desirable, viable and feasible product
                                  Context                               Artifacts


                                                     Concretete
T-shaped People




  Technology Management
Entrepreneurial Chief Engineer?




  “It comes from saying no to 1,000 things to make sure
  we don't get on the wrong track or try to do too much.”
                                      - Steve Jobs



                 Technology Management
Experiment!



                                            Build



What Do I need to Learn?   Idea                               Product   What do I need to build?




                           Learn                              Measure



                                            Data


                                   How can I measure that?


                                      Technology Management
To Learn List


      Problem/                           Product/
                                                                                Scale
      Solution                            Market

Technology/Antropology                      MVP                            Product
Value Proposition Canvas                                                   Crossing the chasm



          Assumption       Feature        MVP                 Validation   Result




                                      Technology Management
“The only real valuable thing is intuition."

                       Technology Management
Sustainable Success

                                                    Get out of
Respect for                                         the office                                       Continuous
                                 Entrepeneurial                    Decide as late
people         Focus on          Chief Engineer                     as possible
                                                                                                     Improvement
              the Jobs to                                                      Define your Role in
                 solve                            Be Attentative                the value network
                   Team Room &
                                                                                Flow/
                      Visual
                                                                               Cadence
                      Mgmt
                                                  Amplify                            Design is
                    Facilitate                    Learning
                    Dialogue                                                        not analysis
                                                   Diversify
                            X-Team                   your                     Set-based
                                                  Perspective                  design

                  People, not
                                                                            T-shaped
                   process                         Skilled people




               Managment applies and teaches lean thinking

                                        Technology Management
“I think and think for months and years. Ninety-nine times,
the conclusion is false. The hundred´th time I am right.”
                        Technology Management
References and further reading
Lean Innovation

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Lean Innovation

  • 1.
  • 2. Knowit Technology Management Lean Innovation and Knowledge Based Development - or, what would Albert say? Pär Hammarström Senior Mgmt Consultant Knowit Technology Management
  • 3. “A business exist to create a customer.” - Peter F Drucker Technology Management
  • 4. Sustainable Success Respect for Continuous Entrepeneurial Decide as late people Chief Engineer as possible Improvement Team Room & Flow/ Visual Cadence Mgmt Amplify Learning Set-based X-Team design Skilled people Management applies and teaches lean thinking Technology Management Adapted from Larman & Vodde
  • 5. Something different that has impact. Technology Management
  • 6. Product Development is Learning Real World Information Decision Feedback Reflection Decision making rules Mental Model Technology Management
  • 8. The Ladder of Inference I take Actions based on my beliefs I adopt Beliefs about the world The Reflexive Loop (our beliefs affect what I draw Conclusions data we select next time) I make Assumptions based on the meanings I added Observable data Technology Management Chris Argyris
  • 9. What do you believe that only you believe? Technology Management
  • 10. "Imagination is more important than knowledge." Technology Management
  • 11. A Different Perspective Co-ordinating logic Motivation Transparency Perspective Knowledge transfer Enacted environment Contextual environment Technology Management Sven Hamrefors
  • 12. Intrinsic Motivation Self • Autonomy Actualization – The desire to be self- directed • Mastery Belongingness – The urge to get better – in search of flow • Purpose – The aspiration to Survival contribute to something bigger than ourselves Technology Management
  • 13. Perspectives + Conservative Constructive Reflected experiences Previous enactment - Superstitious Novel - + Gemba - Go see Present enactment
  • 14. Directing Factors Co-ordinating logic Sensemaking, flow Create experiences combining the magic Transparency of sw withon every A PC the power Connecting To create a better desk running of internet services everyday life for the many People. MS sw across a world of people. devices Knowledge transfer Technology Management
  • 15. Entrepeneurial Behavior Anarchistic Scanning Targeted Scanning Intrinsic Motivation Private Scanning Scanning in principle None Enacted situation Contextual situation Directing factors
  • 16. "The secret to creativity is knowing how to hide your sources." Technology Management
  • 17. Mindfuck 1, Line B is longer than line A 2, They are equally long 3, We don’t know A B Technology Management
  • 18. Mindfuck 1, Line A is in line with line C 2, Line B is in line with line C 3, We don’t know C A B Technology Management
  • 19. Mindfuck 1, The mid circles are not equally big 2, The mid circles are equally big 3, We don’t know Technology Management
  • 20. “I Know That I Know Nothing” Technology Management
  • 21. What Do We Know Waste The Tacit Dimension Personal ->Interpersonal through dialogue and visualizations What we know that we What we don’t know that we know – Known Knowns know – Unknown Knowns What we know that we don’t What we don’t know that we don’t know – Known Unknowns know – Unknown Unknowns Assumptions Ignorance Complicated Complex Technical systems Sociotechnical systems Find the facts Trust that patterns will emerge Technology Management
  • 22. “Common sense is the collection of prejudices acquired by age eighteen.” Technology Management
  • 23. 4 Mental Models of Innovation Business as usual Let’s fire all the managers Continuous innovation as the bottom line 80/20 Technology Management Gary Hamel
  • 24. Linear Model of Innovation Basic Research -> Applied Research -> Development -> Diffusion Basic Research -> Applied Research -> Development -> Production -> Marketing&Sales Market needs-> Development -> Production -> Marketing&Sales Technology Management
  • 25. “Keeping the Innovators at the Gate” Technology Management
  • 26. "If we knew what it was we were doing, it would not be called research, would it?” Technology Management
  • 27. The Lean Start-up • Entrepeneurs are everywhere – Product Roadmap -> Business Model – Product Owner - > Entrepeneur Build • Validated learning Idea Product – Backlog -> To learn list – On site customer -> Get out of the building Learn Measure – Demo -> Perserve or Pivot Data Technology Management Eric Ries
  • 28. The Adoption Cycle Early Majority Late Majority ”Pragmatists” ”Conservatists” Relative % customers Early Adopters ”Visionaries” Innovators Laggards ”Tech entusiasts” ”Skeptics” Time Technology Management Geoffrey Moore
  • 29. Technology First – Needs Later Transition point where technology satisfies basic needs Relative % customers Excess Technology Most customers not interested Required Performance Technology Dominates User Experience Dominates (convenience, reliability, cost...) Technology is ”good enough” Time Technology Management Donald Norman
  • 30. X-Team Feasible Technology User Viable Business Desirable Experience Technology Management Tim Brown
  • 31. Customer Insight Driven – Not Customer Driven Abstract Insight Ideas ABDUCTIVE THINKING Figure out the story Ask why 5 times Describe the benefits Tell a new story Analysis Synthesis Prototype and evolve a minimum Observe how a job is done desirable, viable and feasible product Context Artifacts Concretete
  • 32. T-shaped People Technology Management
  • 33. Entrepreneurial Chief Engineer? “It comes from saying no to 1,000 things to make sure we don't get on the wrong track or try to do too much.” - Steve Jobs Technology Management
  • 34. Experiment! Build What Do I need to Learn? Idea Product What do I need to build? Learn Measure Data How can I measure that? Technology Management
  • 35. To Learn List Problem/ Product/ Scale Solution Market Technology/Antropology MVP Product Value Proposition Canvas Crossing the chasm Assumption Feature MVP Validation Result Technology Management
  • 36. “The only real valuable thing is intuition." Technology Management
  • 37. Sustainable Success Get out of Respect for the office Continuous Entrepeneurial Decide as late people Focus on Chief Engineer as possible Improvement the Jobs to Define your Role in solve Be Attentative the value network Team Room & Flow/ Visual Cadence Mgmt Amplify Design is Facilitate Learning Dialogue not analysis Diversify X-Team your Set-based Perspective design People, not T-shaped process Skilled people Managment applies and teaches lean thinking Technology Management
  • 38. “I think and think for months and years. Ninety-nine times, the conclusion is false. The hundred´th time I am right.” Technology Management