analyzing innovation across business lines · analyzing innovation across business lines what is...

Analyzing Innovation Across Business LinesMay 27, 2019

Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.

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Learning ObjectivesUnderstand the purpose and benefit

to your organization for having a standard set of metrics to track project performance

Share tips about what metrics need to be captured and where they are captured

Understand the different lifecycle phases that need to be accounted for

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We specialize in helping companies build and execute a successful innovation strategy.

We have over 25 years of experience helping companies large and small drive their businesses forward.

We developed a framework to help companies overcome the biggest challenges in becoming more innovative.

Ever Evolving, Inc.

Who we are, and what do we do



Why Is It So Difficult to Keep Up?



Are more store closings coming? Firm forecasts 'No light at the end of the tunnel’

– https://www.usatoday.com/story/money/2019/02/13/more-store-closures-expected-2019-new-report/2865505002/

How Delivery Apps May be Putting Your Favorite Restaurant Out of Business

– https://www.newyorker.com/culture/annals-of-gastronomy/are-delivery-apps-killing-restaurants

'There's no future for taxis': New York yellow cab drivers drowning in debt

– https://www.theguardian.com/us-news/2017/oct/20/new-york-yellow-cab-taxi-medallion-value-cost

From Rental to Streaming: How Netflix Changed the Speed of Business

– http://innovatebusinessit.com/from-rental-to-streaming-how-netflix-changed-the-speed-of-business/

And It is Difficult to Keep UpEvidence is Everywhere of Failed Business Models



25 of the biggest failed products from the world's biggest companies

– https://www.businessinsider.com/biggest-product-flops-in-history-2016-12

NOT Listed Here:– Any Blackberry after the introduction of

the iPhone

– Multiple Microsoft products, such as Vista, ME, Windows Phone

Products Can Fail Too

Business Models Aren’t the Only Challenge



How can a Business Analyst Prevent These Disruptions and Product Failures?

Analyzing Innovation Across Business LinesWhat is Innovation and why does your

organization need to innovate?



MY DEFINITION: Innovation is “taking an idea, and turning it into a solution that increases profitability”

Source: ME!


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“…93 percent of executives say they know their industry will be disrupted at some point in the next five years…”

Source: Accenture Digital, February 2018 https://www.accenture.com/us-en/insight-leading-new-disruptability-index

https://www.accenture.com/us-en/insight-leading-new-disruptability-index


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6% of Executives are Satisfied with their Innovation Performance

Source: McKinsey and Company


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Decreasing Average Corporate Lifespan

Source: INNOSIGHT Executive Briefing Sprint 2016


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Companies that Prioritize Innovation vs. Everyone Else

Source: Organization for Economic Co-Operative Development

Analyzing Innovation Across Business LinesHow does a BA Contribute to Innovation?


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What are the goals of the Business Analyst?


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Launching a product without knowing what its reception will be is gambling on your future.

BA’s use empirical evidence from small scale experiments and standard PM practices to determine:

– Will this project be successful?

– Where should the company invest its limited resources?

– How is the project progressing?

Duties of the Business AnalystTo Keep our Collective A**es Out of the Fire


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The Various Aspects of the Innovation S-Curve

Lead and Disrupt by Charles O'Reilly and Michael Tushman

These are the areas where BA input is invaluable


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Continuous Waves of Innovation Keep Organizations Trending Up

Source: The Innovator’s Dilemma by Clayton Christensen


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The BA Toolkit for Innovation


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DEFINITION: “A metric is a quantifiable level of an indicator that an organization uses to measure progress.”

Business Analyst Body of Knowledge


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DEFINITION: “An indicator identifies a specific numerical measurement that represents the degree of progress toward achieving a goal, objective, output, activity, or

further input. ”



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DEFINITION: “A key performance indicator (KPI) … measures progress towards a strategic goal or objective.”



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“The top priorities of a monitoring and evaluation system are the intended goals and effects of a solution, as well as

inputs, activities, and outputs.”



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Outcome focused / balanced view of an enterprise’s innovation portfolio

Drivers of value creation are understood, measured, and optimized to create sustainable performance.

Tangible objectives, specific measures, and targeted outcomes derived from an organization's vision and strategy.

Used at multiple levels within an organization– Enterprise (macro)– Departmental or function– Project or initiative

Balanced Scorecard

Strategic Planning and Management Tool


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How and Where Are These Metrics

Collected?


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The goal is to determine how successful a product will be without actually building the full product.

A great resource for this is Eric Ries’ The Lean Startup

– Mr. Ries focuses on a Build-Measure-Learnfeedback loop

– Build just enough capability to test– Test, looking at the metrics that drive

business growth– Learn from the results

Profit Scalability Pilots

A fancy title for Small Scale Experimentations


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Baseline Metrics Target Metrics Impact Metrics

Types of Metrics to Capture


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Time to market

Internally vs externally sourced ideas

Percentage of employee idea generation participation

Idea to innovation conversion rate

New customer segments entered

“Go/No Go” Percentage

Time from idea to prototype

New customers added

Metrics to Consider

Below are a few of our favorites to look at


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Value Generated versus Projected Value

Number of innovations in the pipeline (at each stage)

Experiment phase timeframe

Number of experiments per M/Q/Y

Total number of ideas generated

Innovation rewards received

IP Created

New products / services “productionized”

Metrics to Consider (cont.)

And the beat goes on…


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Discussion: Let’s Examine A Product Failure


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Background: Ford bet big on the Edsel in the late 1950’s. Marketing teased (early and often) the new hotness. Executives took all the best features from their most profitable cars, but market trends changed during a lengthy production cycle.

Result: When the car was unveiled, few people bought it as the market had shifted. And issues with the car further deteriorated its name.

Ford Edsel

All of the best parts of every car…together


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Background: Automobile accidents are a leading cause of death in the United States. The idea of creating a self-driving can significantly reduce that number by removing the “human element” of driving.

Result: Experimental vehicles from Google, Apple, Uber and Tesla were all involved in high-profile crashes. The public currently has a low level of confidence in this technology.

Driverless Cars

Are we ready to nap during our commutes?


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Questions?



Recap: Learning ObjectivesUnderstand the purpose and benefit to your organization for having a standard set of metrics to track project performance

Share our suggested set of metrics plus tips to eliciting and identifying others

Understand the different lifecycle phases that need to be accounted for

34


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Thanks for Joining


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Information


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I started Ever Evolving to help business leaders embrace disruption, because ready or not, change is coming. In today’s ever-evolving (pun intended) market place, business leaders are challenged to constantly make smart investment decisions in new products and service offerings.

Let’s Connect

- https://www.linkedin.com/in/steveapalmer/

- https://twitter.com/steveapalmer

- https://speakerhub.com/speaker/steven-palmer

- http://eepurl.com/c_k14r

About Me, Steve Palmer

The Ever Evolving Businessman


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Contact Us

Steve Palmer

(302) 242-7778

[email protected]

https://everevolving.biz



Quantifiable levels of indicators measured at a Specific point, Threshold, or Range (useful if indicator is new)

When setting a metrics, it is important to have

– a clear understanding of the baseline starting point,

– resources devoted to improving the factors of the indicator

Scope of time can be annual, quarterly, or more frequent

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Result of analyzing specific measures about a need, value, output, or activity, in graphical form.

A good indicator has six characteristics:

Clear: precise and unambiguous.

Relevant: appropriate to the concern.

Economical: available at reasonable cost.

Adequate: provides a sufficient basis on which to assess performance.

Quantifiable: can be independently validated.

Trustworthy and Credible: based on evidence and research.

Metrics vs. Indicators

“Anything easy ain’t worth a damn!” — Woody Hayes

IndicatorMetric


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Sample Balanced Scorecard

Objectives Goals Indicators Initiatives

Financial Additional revenue We will make an additional 500k revenue by the end of Q2

10-kFinancial statements

Develop new widgets for ABC Inc.

Customer Create a new segment in the Mid-West

We will sign 2 key and 5 major clients in major metropolitan areas in Ohio, Michigan, and Indiana

Statements of workContractsInvoices

Mid-west expansion with the opening of a Detroit office

Internal Process Matrix Northeast Sales and Marketing dept. until full time Mid-west team is hired

Higher 2 additional sales team members in New York to support Mid-west expansion

Employee roster Establish key clients in the Mid-West

Learning and Growth Take ownership of our mobile app Mobile app support and expansion 100% performed by internal employees by Q1 2020

Skills matrix Make mobile development a part of our core business

analyzing innovation across business lines · analyzing innovation across business lines what is...

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