How to Drive More Value From Innovation Initiatives
3 likes758 views
The document outlines strategies for enterprises to enhance their software development capabilities, emphasizing the importance of modern practices and a product mindset over a project mindset. It highlights common challenges faced in the software industry and presents best practices, including user-centered design, lean product management, and extreme programming. Success stories from companies like Domino's and the US Air Force illustrate the transformative potential of adopting these approaches to achieve faster innovation and improve customer satisfaction.
How to Drive More Value From Innovation Initiatives
- 1. © Copyright 2018 Pivotal Software, Inc. All rights Reserved. Feb 2019 How to Drive More Value From Innovation Initiatives
- 2. Who We Are? Paul Choi Sr. Director, Pivotal Labs [email protected] Lauren Gilchrist Director, Pivotal Labs [email protected]
- 3. How to Drive More Value From Innovation Initiatives ● Background on Pivotal ● Software Development Industry Themes ● Common Problems Holding Back Enterprises Today ● Best Practices for Product Development ● Success Stories ● Q & A
- 4. Pivotal’s Mission is to transform how the world builds software.
- 5. Pivotal takes a comprehensive approach to changing how customers drive more value from software Methodology Learn the necessary practices to build modern software Tools Build with products focused on developer productivity Platform Run every app, on every cloud, on a unified platform More Impactful software Pivotal Labs and Services Pivotal Cloud Foundry Best-in-class products Your teams Pivotal Culture Continually improve and deliver customer success
- 6. We believe it’s fundamental for all companies to develop modern software development capabilities as a core competency
- 7. $32B Market Cap Financial Services $120B Valuation Transportation $158B Market Cap Entertainment $30B Valuation Travel & Hospitality $3.2B Acquisition by Google Home Automation Software is disrupting entire industries
- 8. The greatest risk for any business today is the pace of change.
- 9. Cover w/ Image What Does this mean? No one is entitled to their business model. Data: INNOSIGHT/Richard N. Foster/Standard & Poor’s
- 10. Reasons you should be good at software Your customers expect seamless digital experiences. You can acquire and engage customers faster and cheaper online. You can innovate and adapt to change more rapidly. Your competition is improving. Your employees expect it.
- 11. Enterprises that become good at software create tremendous value...
- 12. Domino’s Pizza has increased its Stock Price by 1600% since 2011 Launched first iOS App in 2011 Over 50% of U.S. sales from digital channels Launched first Android App in 2012 Introduced voice ordering via apps Continued to invest and iterate on software & digital offerings
- 13. Home Depot has increased its stock price by over 550% since 2010 Launched Apps on 3 Platforms Began adopting modern software practices and platform Building software at scale with platform and modern practices
- 14. So what’s preventing enterprises from being good at software?
- 15. Current state of software dev for most enterprises today Project mindset, not product mindset State of Agile is Poor Dev productivity is low (40%) Unclear if teams are building the “right” thing Path to production is manual and laborious
- 16. “We built something for our customers but it doesn’t meet their needs. Users aren’t adopting our product” “It takes forever to release new features. We see opportunities to sell to new customers, but we can’t respond to change fast enough.” “We handed off the requirements to IT, but then 6 months later we got a product that didn’t meet our expectations.” Common problems we hear from clients... © Copyright 2018 Pivotal Software, Inc. All rights reserved.
- 17. What can you do about it?
- 18. Adopt Modern Software Development Best Practices
- 19. Balanced / Cross Functional Product Teams Yield Best Outcomes Design Are we solving a real user need? Development Are we building production-ready, sustainable software? Product Management Will this help the business? Desirable “What pains exist today for the user? How might we solve those pains? Are they able to use the system effectively? Will they adopt this product?” Viable “By solving these specific user problems with these specific solutions, are we creating valuable business outcomes? How might we measure those outcomes?” Feasible “What are the technical complexities necessary to satisfy the project and product goals best? How can we build a system that will respond well to change?” Product Confidential
- 20. User Centered Design Ensuring the software solves a real problem for real users in a desirable and usable product. ■ User Interviews ■ Ethnographic studies ■ Persona definition ■ Prototype creation Design PRACTICES Lean Reducing the risk of building the wrong thing while comfortably changing direction ■ Minimum Viable Product (MVP) definition ■ Lean experiments ■ Identify & test assumptions ■ Data driven decisions Product Management PRACTICES Extreme Programming Building working software at a consistent speed and quality in the face of changing requirements. ■ Paired Programming ■ Test-Driven Development ■ Short iterations ■ Continuous Integration / Continuous Deployment Development PRACTICES
- 21. Lean Product Management Practices Lean is a product methodology designed to decrease risk and reduce waste through constant validated learning.
- 22. Long feedback loops, higher risk Plan QA & Test BuildDesign Release Start Finish Months or Years Waterfall Development
- 23. Waterfall Risk + Time
- 26. User-Centered Design (UCD) Practices UCD is a product design philosophy that emphasises designing the product around how the user can, wants or needs to use it, rather seeking to change the user's behaviors around how the product works. We aim to design a solution that solves user and business problems. It prioritises contact with end users, and not proxies, in order to determine value. We take an evidence-based approach.
- 27. What are the problems? Is this solution valuable? Is this solution easy to use? Exploration Validation Usability User-Centered Design (UCD) Practices
- 28. Exploration Validation Usability User-Centered Design (UCD) Practices Uncertainty Clarity Time
- 29. Users Needs Use Cases Features Deliver Learn User-Centered Design (UCD) Practices
- 30. Agility is the ability to react to change. We practice a flavor of agile called Extreme Programming (XP). XP ensures a team builds working software at a consistent speed and quality in the face of changing requirements. We assume collaborative, cross-functional and self-organizing teams that deliver software in an incremental and iterative way. Extreme Programming (XP) Practices
- 31. Liberty Mutual To Minimum “Shoddy” Product To production in 55 days, all based on user interaction/feedback 11% Conversion Double-digit y/y revenue growth, thanks to new SaaS product on PCF BEFORE: No digital way to buy motorcycle insurance online. Traditional methods could take 9-12 months defining the solution. SOLUTION: ● Pivotal Labs engagement for Agile methodology ● Pivotal Cloud Foundry 20 Quotes Per day generated by the app after four months and no advertising © Copyright 2019 Pivotal Software, Inc. All rights Reserved. 28 Days 45 Updates “That’s an impressive conversion rate for a brand new online application.” —Johnathan Reardon, Vice President & Senior Director of IT at Liberty Mutual
- 32. US Air Force Fuel cost savings for one application To deliver MVP into production 1st DoD Team To continuously deliver to SIPRNet BEFORE: Took an average of 8 years to deliver software to warfighters. Risk management framework had 400-800 controls to navigate for an Authority to Operate (ATO) SOLUTION: ● Engagements with Pivotal Labs for Agile/XP methodologies ● Pivotal Cloud Foundry ● Reengineering procurement process 30/month Production deployments © Copyright 2017 Pivotal Software, Inc. All rights Reserved. $428k/day 120 Days “We’re now saving literally hundreds of thousands of gallons of fuel per day because we’re more efficient in how we plan.” — Lieutenant Colonel Enrique Oti, United States Air Force Sources: https://content.pivotal.io/videos/day-2-keynote-lauren-knausenberger-and-bryon-kroger https://content.pivotal.io/videos/lieutenant-colonel-enrique-oti
- 34. Next Steps Want to learn more about what you heard today Contact Us at [email protected] Want to validate a innovation product you are building Come set up an appointment at one of our 20 Labs offices worldwide for Product Office Hours General Reading Recommendations See next page
- 35. Recommended Reading ● Lean Startup and Startup Way (Eric Ries) ● Extreme Programming (Kent Beck) ● Accelerate (Jez Humble, Nicole Forsgren, Gene Kim) ● Don’t Make Me Think (Steve Krug)
- 36. Transforming how the world builds software © Copyright 2019 Pivotal Software, Inc. All rights Reserved.