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