2. 68
Innovation Initiative Destination
Implemented Innovation is difficult
for well-established organizations in
most industries
Culture of
innovation
built environment where
the three types of
innovation can spark
new products/services
and eventually get them
to “fruition”
(implementation)
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Innovation Initiative Stakeholders:Innovation
Innovation Manager
Board of
directors
CEO
LoB
managers
business agility innovation
sustaining innovation
radical innovation
disruptive innovation
initiate transformations
manage implementations
value of processes /data
establish innovation goals
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So what is “DIGITAL DISRUPTIVE INNOVATION”?So what is “DIGITAL DISRUPTIVE INNOVATION”?
70
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changes the market
changes the product / service
changes the company
BUSINESS
AGILITY
INNOVATION
SUSTAINING
INNOVATION
DISRUPTIVE
INNOVATION
72
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BUSINESS
AGILITY
INNOVATION
FORD took 8 years to fix the PINTO’s gas tank
(exploded in accidents)
TOYOTA took 1.5 years to fix the gas pedal
(stuck resulting in continued acceleration)
TESLA fixed the batteries in 14 days
74
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6 days
Elon Musk (TESLA)
turns tweets into actions
F A S T
76
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6 days
Elon Musk (TESLA)
turns tweets into actions
F A S T
77
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CEO
can they do it ?
understanding
the value of
processes (not
only resources)
talent
people
management
what tools / methodologies do we need ?
AGILITY targets
CEOs manage this type of innovation
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CEO
can they do it ?
understanding
the value of
processes (not
only resources)
talent
people
management
what tools / methodologies do we need ?
AGILITY targets
CEOs manage this type of innovation
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Stop advertising and
start innovating
build a remarkable
product/ service that is
new, unique and remarkable
purple cow
84
new, unique
remarkable
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TYPES OF INNOVATION
Sustaining: improve on existing products
and/or services
Radical: significant improvements that
change entire companies (cost
performance especially)
Disruptive: change entire markets
must look for a second act
86
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INNOVATION
Finding Your Company’s
Second Act
by Larry Downes and Paul Nunes
FROM THE JANUARY FEBRUARY 2018 ISSUE
• first week 7 .5 million players
• Second week 28.5 million players
• Week 10 lost 15 million players.
88
15
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INNOVATION
Finding Your Company’s
Second Act
by Larry Downes and Paul Nunes
FROM THE JANUARY FEBRUARY 2018 ISSUE
Disrupters (Fitbit and GoPro)
scaled up incredibly quickly and
then cooled off almost as fast.
weren't ready with their
next innovation
89
15
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INNOVATION
Finding Your Company’s
Second Act
by Larry Downes and Paul Nunes
FROM THE JANUARY FEBRUARY 2018 ISSUE
life span of companies on the S&P 500
from 67 years (1920s) to 15 years today,
2020 : 75% of companies
will be unheard of in 2010.
90
15
yearstillextinction
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RAPIDLY SPREADING
SECOND WAVE OF TRANSFORMATION
in industries largely untouched by
FIRST WAVE OF TRANSFORMATION:
• manufacturing (3-D printing and IoT)
• agriculture (drones and sensors)
• transportation (autonomous, shared , electric vehicles)
• professional services (artificial intelligence)
Why The Second-Act Crisis Exists ?
novelty effect
91
why ???
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SUSTAINING INNOVATION
can be described as incremental line
extensions and product improvements.
• companies are stuck in a cycle of producing new products
via sustaining innovation
• number of disruptive innovations from existing companies is
at an all-time low
progressive improvement
of products/services is the
“incrementalism”
PeterThiel writes about
(even for startups)
93
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2
10
2
companies are stuck
in a cycle of producing
new products only via
sustaining innovation
number of
DISRUPTIVE INNOVATIONS
from existing companies
is at an all-time low
most new
DISRUPTIVE INNOVATIONS
are based on:
• crowd sourcing
• platform models
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Ford Files Patent for
Autonomous Robocop Car
learns how to catch
violators of traffic laws
The patent (1/2018)references:
“machine learning tools”, cameras, road
sensors, license plate readers, touch sensitive
panels, speakers, LIDAR, ultrasound sensors,
microphones, satellite connectivity, and radar
detectors to record the speed of other vehicles
106
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“If a building
doesn’t encourage collaboration, you’ll lose a
lot of innovation
and the magic that’s sparked by serendipity. So we
designed the building to make people
get out of their offices and mingle
in the central atrium with people they
might not otherwise see.”
1999: before GOOGLE and all the rest
Steve Jobs
understood the
location that
breeds innovation
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DESIGNTHINKING LEAN PROCESSES AGILE DEVELOPMENT IMPLEMENT INNOVATION
EXPLORE
THE
PROBLEM
BUILD
THE
RIGHTTHING
BUILD
THE
THING RIGHT
IMPLEMENT
THE
THING
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DESIGNTHINKING LEAN PROCESSES AGILE DEVELOPMENT IMPLEMENT INNOVATION
EXPLORE
THE
PROBLEM
BUILD
THE
RIGHTTHING
BUILD
THE
THING RIGHT
IMPLEMENT
THE
THING
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The future cannot be analyzed, it must be designed
Edward de Bono, SixThinking Hats
Often enough THE FIRST IDEA is NOTTHE BEST IDEA.
Designers don’t try to search for a solution until they
have determined the real problem, and even then, instead of solving
that problem, they stop to consider a wide range of potential
solutions. Only then will they finally converge upon their proposal.
Don Norman, The Design of EverydayThings
Design Thinking
is an imaginative human-centered problem-solving approachInnovation
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10 20 30
10
20
30
30
1 billion
Linear Future
Business as Usual
linear exponential
Unpredictable Future
Fast UNPREDICTABLE change is an absolute certainty
Design Thinking - Why Now?
Innovation
Strategic
planning
Long term
Senior mngt/ Consultants
List of projects
Design
thinking
Chaotic reality/ Short term
A collaborative team of stakeholders
Prototype
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10 20 30
10
20
30
30
1 billion
Linear Future
Business as Usual
linear exponential
Unpredictable Future
Fast UNPREDICTABLE change is an absolute certainty
Design Thinking - Why Now?
Innovation
Strategic
planning
Long term
Senior mngt/ Consultants
List of projects
Design
thinking
Chaotic reality/ Short term
A collaborative team of stakeholders
Prototype
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Design ThinkingTrek
Innovation
Accenture, B-pro, Deloitte, Design IT, E&Y, Ness, IBM, KPMG,
Matrix, McKinsey, ModelZ, SAP, STKI
empathetic
understanding
of your client
Exploration of
the problem
BEFORE thinking
about the solution
ideas are
generated FROM
ALL levels within
the organization
REQUIREMENTS
READY
GO Prototype -
Lean
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The problem with the hexagons is that they've createdTHE design
process, and that sounds grand and all encompassing, but in reality
they are just a first recipe, a suggestion for how to get started.
Carissa Carter
Design is an ability.
We get better by practicing
Lean
is a method to improve evolving value proposition and business modelsInnovation
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products and services
fail to deliver on
expectations
#1 reason startups fail is because of
a lack of viable business model
lack of testing and
adapting the idea
until it functions
Lean
Innovation is NOT an Idea ProblemInnovation
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Lean Trek
Innovation
Pivot Test assumptions
find evidence that you’re
on the right path
PROTOTYPE
READY
GO Execute-
Agile
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Idea
Requirements
Business case
Development
Design Release
Most ideas will fail -
Too early to predict
cost/revenue
False sense of progress (output not outcome)
Design/ system analysts brought in too late
Silos
Customer validation
happens
too late
Agile
Traditional SW development doesn’t fit the needs of the modern businessInnovation
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Innovation
What are Agile SW Development approaches?
Scrum, Kanban, XP explained
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Design
Thinking Agile
Lean
• Approach for decision
making & problem solving
• Multidisciplinary teams
• Adaptive to change in SW
• Shorter dev cycles
• More value -faster
• Collaboration & interaction
• Business value stream beyond SW
• Eliminate waste: task switching, hand-offs,
extra features
• Only pull work when you’ve got the
space
Self org. team
Respect for people
Co-creation
Innovation methodologies - People in a Center
Innovation
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Design
Thinking Agile
Lean
Fruition
1.The point at which a plan or
project is realized.
"the plans have come to
fruition sooner than expected“
2. literary
the state or action of producing
fruit.
The 4th Force of Innovation - FRUITION
Innovation
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SW acceptance &
actual usage in 5 years
Maintainable after 5 years
Easily connected to
other applications
Successful Hatmaa
• Training
• Key Users understanding
• Working Pilot branches
• Call Center alignment
FRUITION
Innovation
What is successful innovative product delivery???
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Everyone wants innovation in their organization
it drives growth, revenues, and moves the org.
forward BUT
• Innovation has a disruptive side without definitive ROI
• Resource constraint
• People are too busy on everyday tasks
• Lack of new skills
• Management & employees RELUCTANTTO
CHANGE
INNOVATION INITIATIVE
REAL SUCCESS depends on
having support and buy-in
across the enterprise
Who is
with me???
Innovation
Incubation Phase - Why?
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INNOVATION develops new business
model or product/ service starting from
creative idea to launch CHANGE MNGT is an approach of
transitioning organization
from state A to state B
Change mngt deals
with a lot of knowns
Innovation mngt deals with a
lot of unknowns
INNOVATION NEEDS
CHANGE MNGT TO SUCCEED
Innovation
Innovation and Change Management
How does your organization respond to new ideas?
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