lean innovation incose
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An extended version of my Lean Innovation presentation held for the Swedish INCOSE chapter 2013-01-13TRANSCRIPT
Knowit Technology Management
Lean Innovation and Knowledge Based Development - or, what would Albert say?
Pär Hammarström Senior Mgmt Consultant
Knowit Technology Management
072 202 6277
Presentation to INCOSE Sweden 2013-02-13 @Knowit TM Linköping
…in 1950 an average R&D worker in America contributed
almost seven times more to “total factor productivity”—
essentially, the contribution of technology and innovation to
growth—that an R&D worker in 2000 did.
- Azoulay&Jones
“We wanted flying cars, instead we got 140 characters.”
- Peter Thiel
If computers and the internet mattered to the economy—
rather than merely as rich resources for intellectual and
cultural exchange, effect would be seen in the figures. And it
hasn’t been.
- Gordon&Coven
Roughly a century lapsed between the first commercial
deployments of James Watt’s steam engine and steam’s
peak contribution to British growth. Some four decades
separated the critical innovations in electrical engineering
of the 1880s and the broad influence of electrification on
economic growth.
In the end, the main risk to advanced economies may
not be that the pace of innovation is too slow, but that
institutions have become too rigid to accommodate truly
revolutionary changes—which could be a lot more likely
than flying cars.
"Our strong investor base offers a
solid foundation for boo.com. The
fact that such international
investors have invested in boo.com
reflects the power of our business
model and the boo.com brand."
Patrik Hedelin, Executive Chairman. (Press Release, Nov 3 1999)
Technology Management
“A business exist to create a customer.”
- Peter F Drucker
Technology Management
Technology Management Adapted from Larman & Vodde
Continuous
Improvement Respect for
people
Sustainable Success
Management applies and teaches lean thinking
Amplify Learning
Decide as late as possible
Flow/ Cadence
Set-based design
Skilled people
X-Team
Team Room & Visual Mgmt
Entrepeneurial Chief Engineer
Something different that has impact.
Technology Management
Technology Management
Product Development is Learning
Real World
Information Decision
Decision making rules
Mental Model
Feedback
Reflection
Technology Management
Technology Management
GUL BLÅ ORANGE
SVART RÖD GRÖN
LILA GUL RÖD
ORANGE GRÖN SVART
BLÅ RÖD LILA
GRÖN BLÅ ORANGE
Technology Management
Observable data
I make Assumptions based on the
meanings I added
I draw Conclusions
I adopt Beliefs about the world
I take Actions based on my beliefs
The Reflexive Loop
(our beliefs affect what
data we select next time)
The Ladder of Inference
Chris Argyris
Technology Management
What do you believe that only you believe?
"Imagination is more important than knowledge."
Technology Management
Contextual environment
Enacted environment
Technology Management
A Different Perspective
Co-ordinating logic
Transparency
Knowledge transfer
Motivation
Perspective
Sven Hamrefors
• Autonomy – The desire to be self-
directed
• Mastery – The urge to get better –
in search of flow
• Purpose – The aspiration to
contribute to something bigger than ourselves
Technology Management
Intrinsic Motivation
Self Actualization
Belongingness
Survival
Reflecte
d e
xp
eriences
Pre
vio
us e
nactm
ent
Gemba - Go see
Present enactment
+ -
+
-
Perspectives
Conservative Constructive
Superstitious Novel
Technology Management
Directing Factors
Knowledge transfer
To create a better
everyday life for the many
people.
Connecting
People.
Transparency
Co-ordinating logic
Sensemaking, flow
A PC on every
desk running
MS sw
Create experiences
combining the magic
of sw with the power
of internet services
across a world of
devices
Intr
insic
Mo
tivati
on
Directing factors
Targeted Scanning
Scanning in
principle
Anarchistic
Scanning
Private
Scanning
None Enacted situation Contextual situation
Entrepeneurial Behavior
"The secret to creativity is knowing how to hide your sources."
Technology Management
Technology Management
A
B
Mindfuck
1, Line B is longer than line A
2, They are equally long
3, We don’t know
Technology Management
Mindfuck
1, Line A is in line with line C
2, Line B is in line with line C
3, We don’t know
A
B
C
Technology Management
Mindfuck
1, The mid circles are not equally big
2, The mid circles are equally big
3, We don’t know
Technology Management
“I Know That I Know Nothing”
Technology Management
What we know that we
know – Known Knowns
What we know that we don’t
know – Known Unknowns What we don’t know that we don’t
know – Unknown Unknowns
What we don’t know that we
know – Unknown Knowns
What Do We Know
Assumptions Complicated Technical systems Find the facts
Ignorance Complex Sociotechnical systems Probe – Sense - Respond Trust that patterns will emerge
Waste The Tacit Dimension Personal ->Interpersonal through dialogue and visualizations
Technology Management
The Nine Dot Problem
Technology Management
The Problem is about What You See
Emptiness = ”Nothing”
Focus on what you know
Invisible = ”Something”
What could be?
“Common sense is the collection of prejudices acquired by age eighteen.”
Technology Management
Technology Management
4 Mental Models of Innovation
Business as usual Let’s fire all the managers
80/20 Continuous innovation as the bottom line
Gary Hamel
Technology Management
Linear Model of Innovation
Basic Research -> Applied Research -> Development -> Diffusion
Basic Research -> Applied Research -> Development -> Production -> Marketing&Sales
Market needs-> Development -> Production -> Marketing&Sales
Technology Management
“Keeping the Innovators at the Gate”
Unknown
Needs
Unknown Technology
Technology Management
More of the Same
The SCRUM Trap
Things that I
know my
Customers like
Things that I know
how to build
?
? ?
"If we knew what it was we were doing, it would not be called research, would it?”
Technology Management
Technology Management
Technology Management
Competitive Strategy
Low Cost
Un
iqn
ess
Michael Porter
Sustaining Innovation
Competitive Advantage
Co
mp
etitive
Sco
pe
Cost
Leadership Differentiation
Cost Focus Differentiation
Focus
Technology Management
Blue Ocean – Red Ocean
W. Chan Kim & Renée Mauborgne
Technology Management
The Post Competitive Paradigm
New
Market
New Technology
Known
Market
Known Technology
Low Cost
Un
iqn
ess
Value Innovation
Cost
Differentiation
“In order to get to the future first, there is no need to excel competitors trying to get the same prize because
the number of prizes may be the same as the number of runners.”
G. Hamel & C. K. Prahalad
Technology Management
The Innovator’s Dilemma
Time
Pro
du
ct P
erf
orm
ance
High end demand
Low end demand
Sustaining Innovation
Disruptive Technology
Clayton Christenssen
Technology Management
New
Market
New Technology
Known
Market
Known Technology
Low Cost
Un
iqn
ess
Creative Destruction
Disruptive Innovation
Technology Management
Three Distinct Innovation Strategies
New
Market
New Technology
Known
Market
Known Technology
Market Readers Need Seekers
Technology Drivers
1 Apple 70 2,7%
3 3M 86 5,4%
4 GE 32 2,6%
6 IBM 15 6%
10 Facebook N/A
8 P&G 61 2,5%
9 Toyota 6 3,9%
2 Google 34 12,8%
5 Microsoft 4 14%
7 Samsung 7 5,9%
R&D spending is far from proportional to success
Booz&Co: The Global Innovation 1000 – Why Culture is key 2011
Booz&Co: The Global Innovation 1000 – Making Ideas Work 2012
1 Apple 53 2,2%
3 3M 86 5,3%
5 GE 30 3,2%
9 IBM 17 5,9%
10 Amazon 48 6,1%
2 Google 26 13,6%
4 Samsung 6 6%
6 Microsoft 5 12,9%
7 Toyota 1 4,2%
8 P&G 72 2,4%
Need Seekers
Technology Drivers
Market Readers
Technology Management
Strategy and Culture Alignment is Key
Distinct Goal
Advantaged Products
and Services
Distinct Culture
Openess to new ideas
from customers,
suppliers, competitors
and other industries
Distinct Goal
Products customized to
local markets
Distinct Culture
Collaboration across
functions and
geographies
Distinct Goal
Developing low cost products
Distinct Culture
Reverence and respect for
tech talent and knowledge
Common Goals
• Superior product performance
• Superior product quality
Common Culture
• Strong identification with the customer
and orientation toward customer
experience
• Passion and pride for the products and
services offered
Need Seekers
Technology Drivers
Market Readers
Technology Management
Front End Tools Align
Preferred Tools – Market Insight
• Feedback from customer support
and sales
• Traditional market research
• Seed funding for exploratory
research
Preferred Tools – Tech Foresight
• Periodic meetings of technical community
• Technology road mapping
• External idea scouting and technology
• Cross–business unit communities of
practice
Preferred Tools – End-user Insight
• Idea workout sessions
• Social-network data mining
• Focus groups with customers
and end-users
• Direct customer observation
Technology Management
Culture Eats Strategy for Breakfast
Pro
ce
ss F
it
Value Fit
Good
(Sustaining Innovation)
Bad
(Disruptive Innovation)
Good
Bad
Heavyweight Team
within organization
Lightweight Team
within organization
Heavyweight Team
Spinout organization
Heavyweight Team
Spinout organization
for commercialization
Clayton Christensen
Scalable Startup
Large Company
A startup is the temporary organization
used
to explore a market for a scalable business
model under conditions of great
uncertainty.
The purpose is not to remain a startup.
Failure = failure to transition.
Transition
Startups as a Role Model
Technology Management Scaling Agile @ Spotify with Tribes, Squads, Chapters & Guilds – Henrik Kniberg Crisp
100 is the Magic Number
• Entrepeneurs are everywhere
– Product Roadmap -> Business Model
– Product Owner - > Entrepeneur
• Validated learning
– Backlog -> To learn list
– On site customer -> Get out of the building
– Demo -> Perserve or Pivot
Technology Management
The Lean Start-up
Build
Product
Measure
Data
Learn
Idea
Eric Ries
Technology Management
The Adoption Cycle
Geoffrey Moore
Re
lative
% c
usto
mers
Time
Innovators
”Tech entusiasts”
Early Adopters
”Visionaries”
Early Majority
”Pragmatists”
Late Majority
”Conservatists”
Laggards
”Skeptics”
Technology Management
Technology First – Needs Later
Donald Norman
Time
Transition point
where technology
satisfies basic
needs
Technology Dominates
Technology is ”good enough”
User Experience Dominates
(convenience, reliability, cost...)
Excess Technology
Most customers not
interested Required
Performance
Re
lative
% c
usto
mers
Technology
User Experience
Business
Technology Management
Feasible
Viable Desirable
X-Team
Tim Brown
Customer Insight Driven – Not Customer Driven E
mp
ath
ize
Exp
erim
en
t
Concretete
Abstract
Analysis Synthesis
Context Artifacts
Observe how a job is done Prototype and evolve a minimum
desirable, viable and feasible product
Insight
Ask why 5 times
Ideas
Describe the benefits
ABDUCTIVE THINKING
Technology Management
Requirements Analysis vs Design Thinking
Show me the facts. How might we?
Technology Management
T-shaped People
Technology Management
Entrepreneurial Chief Engineer?
“It comes from saying no to 1,000 things to make sure
we don't get on the wrong track or try to do too much.”
- Steve Jobs
Build
Product
Measure
Data
Learn
Idea
Technology Management
What Do I need to Learn?
How can I Measure that?
What do I need to Build?
Experiment!
Technology Management Alexander Osterwalder
Assumptions Assumptions
Assumptions
Assumptions Assumptions
Assumptions
Assumptions
Assumptions
Assumptions
Technology Management
Assumption Feature MVP Validation Result
Technology Management
To Learn List as Strategy
Problem/ Solution
Product/ Market
Scale
Technology/Antropology
Value Proposition Canvas
Minimum Viable Product
Business Model Canvas
Product/Business Model
Crossing the chasm
Explore Execute
“The only real valuable thing is intuition."
Technology Management
Technology Management
Continuous
Improvement Respect for
people
Sustainable Success
Managment applies and teaches lean thinking
Amplify Learning
Decide as late as possible
Flow/ Cadence
Set-based design
Skilled people
X-Team
Team Room & Visual Mgmt
Entrepeneurial Chief Engineer Focus on the
Jobs to solve You are part of a System – Define
your Role
Get out of the office
Diversify your
Perspective
Design is not analysis
People, not process
T-shaped
Facilitate Dialogue
Business is Not a Sport
Expand the Problem Space – Explore the Wider System
“I think and think for months and years. Ninety-nine times, the conclusion is false. The hundred´th time I am right.”
Technology Management