Innovation Way
- 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