Innovation processes in the age of digital transformation
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The document discusses the importance of innovation processes amidst digital transformation, emphasizing the need for disruption to foster creativity and adaptability in organizations. It differentiates between evolutionary and disruptive innovation, highlighting how organizations must balance optimization with innovation to thrive. Ultimately, it advocates for self-organization within teams as a means to drive agile and innovative practices in response to changing business environments.
Innovation processes in the age of digital transformation
- 1. Innovation Processes in the Age of Digital Transformation Jason Bloomberg President [email protected] @theebizwizard
- 2. About Jason Bloomberg • President of industry analyst firm Intellyx • Agile digital transformation thought leader • Write for Forbes, several blogs, biweekly newsletter the Cortex • Buy my latest book, The Agile Architecture Revolution Copyright © 2015, Intellyx, LLC2
- 3. Process for Innovation? Copyright © 2015, Intellyx, LLC3 Disrupt Innovate Innovation is not a typical business process!
- 4. The Disruption Spectrum • Evolutionary innovation – New and improved! – Processes reasonably well understood – Common • Disruptive innovation – New market category! – Customers didn’t know they wanted it until they saw it – Little understanding of the process – Rare Copyright © 2015, Intellyx, LLC4 PhotoCredit:AsimBijaranihttps://www.flickr.com/photos/asimzb/
- 5. Optimization vs. Innovation Copyright © 2015, Intellyx, LLC5 Innovation Disrupt status quo to allow human creativity to flourish Optimization Establish feedback loops that maximize business outcome
- 6. Innovation Requires Disruption • External Disruption – Competitive pressures/new entrants – Globalization – Regulation • Internal Disruption – Digital Transformation efforts – Innovation initiatives Copyright © 2015, Intellyx, LLC6 PhotoCredit:CharlesWagnerhttps://www.flickr.com/photos/chazwags/
- 7. Disruption Introduces Risk • Optimization without disruption stifles innovation • Disruption without optimization is an innovation crap shoot • Optimize what you can & disrupt what you must Copyright © 2015, Intellyx, LLC7 PhotoCredit:epSos.dehttps://www.flickr.com/photos/epsos/ Mitigate risk with resilience
- 8. Resilience • The ability to respond quickly and efficiently to negative change in the business environment – Managing risk – Bouncing back from adverse events – Disaster recovery • Tactical business driver Copyright © 2015, Intellyx, LLC8 PhotoCredit:Joehttps://www.flickr.com/photos/bitshaker/167480266/sizes/o/ The opposite of brittleness
- 9. Business Agility • Responsiveness – Tactical value • Resilience – Risk mitigation • Innovativeness – Strategic value Copyright © 2015, Intellyx, LLC9 PhotoCredit:MasoniteBurnhttps://www.flickr.com/photos/masonite-burn/6273626739/sizes/l Ability to respond to change in the business environment and leverage change for competitive advantage
- 10. Innovativeness • The ability to introduce change into the business environment in order to achieve a strategic advantage – New products or services – Expand market share – Enter new markets Copyright © 2015, Intellyx, LLC10 PhotoCredit:KayKimhttps://www.flickr.com/photos/kaykim/3883340152/sizes/o/
- 11. What Changes are Necessary to Drive Innovation? Copyright © 2015, Intellyx, LLC11 PhotoCredit:BillWardhttps://www.flickr.com/photos/billward/
- 12. Today’s Agile Imperative Organizations must capitalize on disruption to achieve greater innovativeness and resilience in the face of digital transformation priorities Copyright © 2015, Intellyx, LLC12 PhotoCredit:WalterLimhttps://www.flickr.com/photos/coolinsights/
- 13. The Core Business Goal Copyright © 2015, Intellyx, LLC13 Agile Digital Transformation
- 14. What is Digital? Customer preferences & behavior drive technology choices Range of technology touchpoints is exploding Copyright © 2015, Intellyx, LLC14 PhotoCredit:RevolWebhttps://www.flickr.com/photos/revolweb/
- 15. What about Transformation? Internal organizational change is necessary to maintain focus on the customer in today’s digital world Copyright © 2015, Intellyx, LLC15 PhotoCredit:Pascalhttps://www.flickr.com/photos/pasukaru76/
- 16. What is Digital Transformation? • Customer pressures driving technological and organizational change in companies • Enterprises rethinking: – How they serve customers – The role IT plays – How they build & manage teams – How they innovate Copyright © 2015, Intellyx, LLC16 PhotoCredit:LouisK.https://www.flickr.com/photos/bonaparty/
- 17. Digital Transformation What are you transforming? Copyright © 2015, Intellyx, LLC17 Digital Transformation = Business Transformation Customer Experience Technology Internal Organization All of the Above
- 18. The Key to “Flexible People” • How do get teams to capitalize on disruption? • How do you take creative, imaginative individuals and establish processes for innovation? Copyright © 2015, Intellyx, LLC18 Self-Organization PhotoCredit:JulienHarnelshttps://www.flickr.com/photos/julien_harneis/
- 19. Essential Tool: Self- Organization • Traditional hierarchical organizational models limit or eliminate self- organization • “Skunk works,” startups, and DevOps organizations work best when self- organized • Should digital efforts be self-organized? Copyright © 2015, Intellyx, LLC19 PhotoCredit:Jo-AnDeArkTorreshttps://www.flickr.com/photos/jo-an-torres/
- 20. The Agile Manifesto Leads the Way? – Principles behind the Agile Manifesto Copyright © 2015, Intellyx, LLC20 Source:http://www.agilemanifesto.org “The best architectures, requirements, and designs emerge from self- organizing teams.”
- 21. Self-Organization in Practice • Individuals collaborate on ad hoc basis depending on business priorities • Management responsible for: – Setting goals – Providing resources – Delineating constraints (e.g. compliance) – Getting out of the way Copyright © 2015, Intellyx, LLC21 Assigning people or tasks to a team? It’s not self-organized! PhotoCredit:RobbertvanderSteeghttps://www.flickr.com/photos/robbie73/
- 22. Self-Organization Thrives on Disruption • DevOps-style self-organization essential for agile, innovative digital transformation • Challenge: scale up self-organization from small team level up to enterprise level Copyright © 2015, Intellyx, LLC22 PhotoCredit:EricaJoyhttps://www.flickr.com/photos/ericajoy/ Innovation hangs in the balance
- 23. Innovation as Adaptive Behavior • Follows principles of natural selection • Disruptive environments drive adaptive behavior • The better an organization adapts to disruption, the more it will thrive Copyright © 2015, Intellyx, LLC23 Evolve or die!
- 24. Organizational Connectivity & Innovation • Tightly connected organizational networks limit flexibility • Loosely connected organizational networks facilitate flexibility – Reporting structures – Lines of communication – Expectations for collaboration Copyright © 2015, Intellyx, LLC24 PhotoCredit:Jamiehttps://www.flickr.com/photos/jbcurio/
- 25. The Paradox of Self- Organization • Managers can’t do it – Unless they’re on the team • Digital strategies at the executive level are self- defeating – Self-organize by not organizing – Manage change my not managing Copyright © 2015, Intellyx, LLC25 PhotoCredit:EstebanChinerhttps://www.flickr.com/photos/decadence/ Management Consulting Pitfall
- 26. A Word to the Managers • Don’t: – Assign people to teams – Assign tasks or projects to teams – Determine success criteria for teams • Do: – Provide context for teams (business, compliance, etc.) – Ensure that teams have what they need – Get out of their way Copyright © 2015, Intellyx, LLC26 PhotoCredit:TylerBolkenhttps://www.flickr.com/photos/tylerbolken/8773594852/sizes/l
- 27. The Continuous Delivery Mentality • Self-organized teams deploy when ready • Deployments are increasingly granular • “Fail fast” mentality Copyright © 2015, Intellyx, LLC27 PhotoCredit:DennisHamiltonhttps://www.flickr.com/photos/orcmid/ Resilience becomes part of the culture
- 28. The Center of Digital Enablement • Team responsible for end-to-end best practice across digital effort • Where the enterprise architects fit in • Essentially becomes an innovation competency center Copyright © 2015, Intellyx, LLC28 PhotoCredit:SonnyAbesamishttps://www.flickr.com/photos/enerva/ Let CODE self-organize
- 29. How to Participate on Self-Organizing Team • Know where you can provide the most value • Leverage your formal and informal networks to recruit the best people Copyright © 2015, Intellyx, LLC29 PhotoCreditthejbirdhttps://www.flickr.com/photos/jbird/: Volunteer mindset
- 30. #1 Requirement: Empathy • Focus on the other people on your team & across your organization • Your job is to make them successful – And vice-versa • Thought patterns to avoid: – Throw it over the wall – Us vs. them – Any kind of bigotry Copyright © 2015, Intellyx, LLC30 PhotoCredit:DonnieRayJoneshttps://www.flickr.com/photos/donnieray/
- 31. The Bar is Set! It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do. – Steve Jobs (allegedly) Copyright © 2015, Intellyx, LLC31 PhotoCredit:BlakePattersonhttps://www.flickr.com/photos/blakespot/
- 32. Jason Bloomberg President, Intellyx [email protected] @theebizwizard Send email NOW to [email protected] to download this presentation Thank You!