INNOVATING YOURSELF:

WHERE DO YOU START IN AN ENTERPRISE ?

www.eturnti.com

@eturnti

Kiran Divakaran

kiran@eturnti.comEnterprise Architect

Disaster occurred, as the Wall Street Journal, points out, “not because of ‘bad’ management,

but because they followed the dictates of ‘good’ management. They listened closely to

their customers. They carefully studied market trends. They allocated capital to the innovations

that promised the largest returns. And in the process, they missed disruptive innovations

that opened up new customers and markets for lower-margin, blockbuster products.”

Doing Everything Required is no guarantee

–Conventional Innovation

My Experience here

Posting pictures of cats and pets – 140 characters

Twitter – Samsung Laptop

Airline Ticket Booking – Car Rental / Stay Calls

Cousin stays away from anything social

Old School way of innovating

From Joi Ito’s TED talk

Starts with a business person and ends with an engineer

New ways of innovating

From Joi Ito’s TED talk

Starts with an engineer and ends with a business idea

People, networks and ideas, bringing together global

innovators and investors, strategists, and influential

decision-makers from leading financial institutions

across the globe

Start a tribe or be part of one

Build business models around your business

else someone else will build.

Companies that survive are not the ones making things cheaper but making

things better

Use the ADM to take a good relook at innovation

Global investment in financial-

technology ventures has more than

tripled from less than $1 billion in

2008 to almost $3 billion in 2013Accenture Report

Diego David Garcia | Creative Commons

Where do we want to go ?

What is your key

Offering/capability

Enterprise

Vision

Business Architecture

IS ArchitectureTechnology Architecture

Reference Architecture

Where are we

Where do we want to go?

Reference architecture shows the current state

Banking Industry pain points

Batch still runs slow to update real time balances

Google, Apple and PayPal, traditional retailers like Wal-Mart offering alternative payment options

Legacy banks run on mainframes in batch still and has to match the real time iPhone

Start-ups, boot camps, accelerators, incubators and innovation labs are creating disruptive ideas

Making traditional banking irrelevant.

43% of U.S. customers believe their primary bank does not understand their needs

31% feel their bank is not helping them reach their primary financial goals

Source : Tom Groenfeldt Forbes

Source : https://hbr.org/2013/02/before-you-innovate-ask-the-ri

Ask the right questions ?

Source : http://www.forbes.com/sites/gregsatell/2013/03/07/how-to-manage-innovation-2/2/

Examples

Incrementalism improves something iteratively

Innovation introduces us to something new

Disruption interrupts norms and changes behaviour

Know when it happens to you and plan

Where is your market ?

How BIG is your opportunity ?

Alex Ostewald - http://businessmodelgeneration.com/

Where you are now where you want to be ?

What do you have now and what do you want to improve ?

Which One will make it through ?

Data

SMAC

Domain

Wheelwright and Clark’s 1992 textbook, Revolutionizing Product Development

Innovation Funnel

Focus

Inside

Idea1

Idea2

Idea3

Idea4

Idea5

Idea6

Idea5

Idea8

Make Intelligent Decisions to narrow down the ideas

Idea9

Idea10

While Imagination is good but needs to be

backed up by DATA

Validate , Validate and Validate all experiments and results , everything

with data

Get your Vision out into a Sprint & Keep Sprinting

“The best way to have a good idea is to have lots of ideas.” – Linus Pauling

Vision

Mission

Product

Vision

Release

PlanProduct

Backlog

Sprint

Backlog

As you start to walk the way appears – RUMI

Life’s too short to build something nobody wants

Go from Agile to Lean where applicable for yourCONTEXT.

Should this product be built?""Can this product be built?"

DEVELOP AN MVP

Always ask

The SMARTEST guy is not in the room.

Estimation is hard get used to it

https://msdn.microsoft.com/en-us/library/hh765979.aspx

Lessons learnt minimize

the future estimates.

Make Turnarounds faster – Remove hurdles

Talk Reason

Deliver Do

Steady State

Offshore Team

Onsite Team

PM/Lead

BADev

Vision for the product/ feature

Requirements, High level Design ,

Co-ordination

Detailed Design , Code , Test , Execution, Release

Support , Bug fixes.

Have light weight processes in place

Project Management

QA

Deploy or Die

Nhan Ngo Q/A at Spotify

Life’s too short to build something nobody wants

Go from Agile to Lean where applicable for your context.

Find out start-ups within the Enterprise

Source : http://theleanstartup.com/

“I have not failed. I've just found 10,000

ways that won't work.” -Edison

There are no failures, only lessons learnt.

Celebrate Success and the lessons.

Become an Idea Machine

Look for ideas everywhere

Create an ideas board

Should be everybody's business

Run out of ideas after their first success

PEOPLE AND CULTURE

Hire Passionate People

People with mutually exclusive but collectively exhaustive skills on board

People need not have to ask for permission to innovate

Share the same vision slides in the boardroom as well as the people on the job

Incentivize Ideas and Reward Risk

Share insights and best practices

Innovation is everyone's job , no such thing as Chief Innovation Officer

Build a Culture of Engagement

PEOPLE not only employees , people on the task - customers, clients, employees,

partners, and competitors can be great sources of innovation.

Your Co Creators Includes Everybody

Lets people let their hair down and play

1. A set of rules imposed by the organization

2. An environment for systematic experimentation within these rules

Box is the confines of the environment for experimentation and sand is the tool for

letting people become creative.

Create Innovation Sandboxes

Google’s Gmail Initial Thought Process

“We will give small mailboxes for free and charge a

premium on the big mailboxes.”

Google’s Gmail and AdSense story

Paul Buchheit, tech lead of Gmail project and Marissa Mayer Product manager for Gmail

We won’t be able to find relevant ads and then there will be privacy concerns

3am – Marissa is about to leave the office

“Paul, we agreed we are not exploring the ad thing, right?” Paul responds, “Yeah”

7am – Paul leaves his office after finishing a throwaway prototype implementation of ad Sense

9am – Marissa is back to office and logs into gmail. Gosh what has he done.

A sandbox is useless unless it can attract quality talent who can let their hair down and play.

Get the kids to play with the Sandbox

Learn to Pivot or Persevere this is key to

building your “Fail Fast Learn from it Muscle”

in your company

Amazon Fly Wheel effect

In Amazon’s case it was Customers as kids

http://www.amazon.co.uk/b?ie=UTF8&node=2610308031

Learnings need to be feedback into the system for

further improvement

Innovation sandboxes for your organization

What are your business capabilities and core strengths as an organization ?

Go with solving a customer pain point

Create labs where prototyping is encouraged for proving anything

Embrace a culture where people are encouraged to fail fast and fail cheap

Ensure that the learnings are captured correctly and this results in fail forward

Make your competition irrelevant

Take a step back and look at industry architectures for

INTERSECTIONS

Red Ocean Blue Ocean Strategy

Your compete in the same space Create new products and new space

Beat your competition Make Competition Irrelevant

Create a valuable cost proposition Break the value -cost model

Competitive Advantage Innovate / Value addition

Know your competition Invite the Uninitiated

Exploit existing Banking Space Create New Demand

You Current Customer is not your future customer

Traditional Air Line Players Net Jets

Your compete in the same space Biz travellers are the most frequent travellers.

Catering to biz travellers, holiday travellers,

casual travellers

Convenience of a private jet at the price of an

airline ticket.

Corporates spent millions in executive travel De risk operation by creating co owners with

1/16 ownership of the planes.

Long delays , baggage claims,congested

airports,bad user experience.

Private aircraft at 4 hours notice.

Biz travellers have no other option Provide in-flight customized services

Source : Blue-Ocean-Strategy-Uncontested-Competition

Question in 1983 before NETJETS ?

Blue Ocean Strategy if executed well has the potential

Of disrupting more than one industry as you start

Looking at a lot of intersections where value can be

Plugged.

Steve Jobs : design and technology

Its is more fun being at intersections

Zuckerberg : social and technology

If executed well has the potential of disrupting more than one industry as you start

Looking at a lot of intersections where value can be plugged.

Banking meets payments

Banking meets retail needs

Banking meets social

Finally Can we have an INNOVATION Maturity Model ?

Level Aim / Focus

5. Sustained Profitable Growth Plan for Sustained Profitable Growth Budget

and achieve desired revenue growth

Establish Corporate Innovation Index

Update portfolio of innovation

Introduce new platform every 3-5 years

4. Innovation in the core DNA Department innovation goals work towards

profit or growth Provide training in excellence and innovation

Ensure innovation competency in most

departments Measure with an Innovation Index

Award for Innovation Instituted.

3. Managed Innovations Train developers in best practices and

innovation methods Idea Management process followed

Create a portfolio list of innovations

Have a budget for innovation

2 Idea Management Reward and recognition system

Few employees are trained in innovation

Few pilot projects

1 Initial One off cases

Innovations.

Innovation

Maturity Journey