Orienta(ng Innova(on
Vincent F Dermody 1 June 2010
+ 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
+What is innovation?...... TRIZ?
TRIZ (Altshuller)
Levels of Invention
Level 1 - Routine design problems solved by methods well known within the specialty.
Rarely Inventive.
Level 2 - Minor improvements to an existing system using methods known within the
industry
Level 3 - Fundamental improvement to an existing system using methods known outside
the industry
Level 4 - A new generation of a system that entails a new principle for performing the
primary functions.
Level 5 - A rare scientific discovery or pioneering invention of an essentially new
system
Academic & Research
Range of feasibility
+ What is innovation?..... Google…
INNOVATION, NOT INSTANT PERFECTION
IDEAS COME FROM
EVERYWHERE
A LICENSE TO PURSUE YOUR
DREAMS
MORPH PROJECTS
DON'T KILL THEM
SHARE AS MUCH
INFORMATION AS YOU CAN
USERS, USERS, USERS
DATA IS APOLITICAL
CREATIVITY LOVES
CONSTRAINTS
YOU'RE BRILLIANT?
WE'RE HIRING
Credit Marissa Mayer, VP Google
+
EVALUATE
DIRECT
MONITOR
What is innovation?..... Google…
INNOVATION, NOT INSTANT PERFECTION
IDEAS COME FROM
EVERYWHERE
A LICENSE TO PURSUE YOUR
DREAMS
MORPH PROJECTS
DON'T KILL THEM
SHARE AS MUCH
INFORMATION AS YOU CAN
USERS, USERS, USERS
DATA IS APOLITICAL
CREATIVITY LOVES
CONSTRAINTS
YOU'RE BRILLIANT?
WE'RE HIRING
Credit Marissa Mayer, VP Google
+The 7th Principle of ISO38500?
Responsibility�
Evaluate �
Direct�
Monitor�
Strategy�
Evaluate �
Direct�
Monitor�
Innovation�
Evaluate �
Direct�
Monitor�
Acquisition�
Evaluate �
Direct�
Monitor�
Performance �
Evaluate �
Direct�
Monitor�
Conformance �
Evaluate �
Direct�
Monitor�
Human Behaviours�
Evaluate �
Direct�
Monitor�
+The Innovation Challenges
Failures
• Unmeasured/Unconstrained • Ability driven • No Value specified
Success
• Constraints • Needs driven • Value Management
Dimensions
• Time • Change • Speed
Features
• Real time decisions • Agile delivery • “Just Enough” delivery
+The Innovation flow
Collect & Select
Scope Value & Cost
Build Program of Delivery
RMM CV3 BVM NCTP
+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
+Collect & Select
Consequence��
NEED DRIVEN � OPPORTUNITY DRIVEN �
ABILITY DRIVEN �
Chan
ge t
he
Busin
ess�
Chan
ge w
ay o
f do
ing
Busin
ess�
Chan
ge Too
ls o
f Bu
sines
s�
Not ideal for innovation �Optimal for innovation �
There are negative consequences �if action is not taken.�
There are positive value adding �consequences.�
There are no clear Consequences.�
Volume, Velocity and Volatility are ranked 1-5, low to high. The V3 variable is then derived as: ��
Volume x Velocity�Volatility�
�
< 3 4-8 8<
IDEA 1
IDEA 2
+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
+BUILD PROGRAM OF DELIVERY
Recalibrate business value measurements (BVM)
Define “strategic platform program”
Define agile “innovation program”
Reassess High Novelty concepts for worth.
Build out roadmap for strategic platforms for CTP concepts
Use Novelty Complexity Technology and Pace (NCTP) critique
Break down idea/concept into fundamentals
+BUILD PROGRAM OF DELIVERY
Novelty
Complexity
Technology
Pace
Outsourced Rapid development
High Risk to successful Outcome
Likely Strategic Platforms
Likely Strategic Partners
+BUILD PROGRAM OF DELIVERY
Novelty
Com
plexity
Technology
Pac
e
Novelty
Com
plexity
Technology
Pac
e AGILE
STRATEGIC PLATFORM
+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