innovation - road to value topconf nov2015
TRANSCRIPT
https://www.flickr.com/photos/mendhak/8162305237
Curiosity, learning and innovation -‐ my agile road to the value!
Visionary startups are: • able to see customers unmet need, • able to create minimum viable solution in a
shortest possible time, • gather feedback to identify customer’s
value • able to repeat this cycle
Do I really understand customer’s future Needs?
Do I really know WHAT to build? Do I really know HOW to build it!
StartUper’s dilemma
“.. I trie
d so ma
ny thing
s ...
...too m
any unk
nowns .
..
... may b
e I shou
ld go ba
ck to
my nor
mal wo
rk?...”
Well worked out and known routines can give me back a feeling of
confidence and succeeding, but … … not helping me to create the
innovation that customers would need
Well worked out and known routines can give me back a feeling of
confidence and succeeding, but … … not helping me to create the
innovation that customers would needLike if I’m a successful franchisee then I’m still not the innovator – just follower!
My observations
• Focusing on customer’s value creation, • Getting feedback faster, • Flat supportive organizational culture and • Practical value delivery with agile development
are essentials for startups not to give up and to bring truly innovational products to the market on the much faster pace than it was done ever before.
How long did it take to reach 300M users
Millions of u
sers
0
103
207
310
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Mobile phone – 25 years
Skype – 10 years
Telephone – 105 years
Instagram – 4 years
How long did it take to reach 300M users
Millions of u
sers
0
103
207
310
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Mobile phone – 25 years
Skype – 10 years
Telephone – 105 years
Instagram – 4 years
How long did it take to reach 300M users
Millions of u
sers
0
103
207
310
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Mobile phone – 25 years
Skype – 10 years
Telephone – 105 years
Instagram – 4 years
How long did it take to reach 300M users
Millions of u
sers
0
103
207
310
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Mobile phone – 25 years
Skype – 10 years
Telephone – 105 years
Instagram – 4 years
How long did it take to reach 300M users
Millions of u
sers
0
103
207
310
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Mobile phone – 25 years
Skype – 10 years
Telephone – 105 years
Instagram – 4 years
“So what's next? Technology companies live and die by their ability to innovate, and Skype is no different.” – Irish Independent
http://www.independent.ie/business/technology/skype-‐still-‐calling-‐the-‐shots-‐but-‐competitors-‐are-‐gaining-‐29557133.html UPDATED 06 SEPTEMBER 2013
Aircrag
Automohve
Video Games
0 2 4 6 8
AvarageResult
Source: Boing, Capcom, Toyota, X&Y Partners 2012 analysis
Time to production
Aircrag
Automohve
Video Games
0 2 4 6 8
AvarageResult
8
Source: Boing, Capcom, Toyota, X&Y Partners 2012 analysis
Time to production
Aircrag
Automohve
Video Games
0 2 4 6 8
AvarageResult
4
8
Source: Boing, Capcom, Toyota, X&Y Partners 2012 analysis
Time to production
Aircrag
Automohve
Video Games
0 2 4 6 8
AvarageResult
4
4
8
Source: Boing, Capcom, Toyota, X&Y Partners 2012 analysis
Time to production
Aircrag
Automohve
Video Games
0 2 4 6 8
AvarageResult
6
4
4
8
Source: Boing, Capcom, Toyota, X&Y Partners 2012 analysis
Time to production
Aircrag
Automohve
Video Games
0 2 4 6 8
AvarageResult
1
6
4
4
8
Source: Boing, Capcom, Toyota, X&Y Partners 2012 analysis
Time to production
Aircrag
Automohve
Video Games
0 2 4 6 8
AvarageResult
3
1
6
4
4
8
Source: Boing, Capcom, Toyota, X&Y Partners 2012 analysis
Time to production
Focusing on improving existing business models is not enough anymore .. large company understands that needs to deal with ever-‐increasing external threats by continually innovating. To ensure their survival and growth, corporations need to keep inventing new business models. This challenge requires entirely new organizational structures and skills. Why the Lean Start-‐Up Changes Everything
Steve Blank MAY 2013 HBR
Deterministic model
Every task must be completely understood Same input always becomes the same output
Inputs • Needs/
Requirements • Technology • Team/skills
Process
Output • Potentially
shippable product (increment)
Is product development a defined process?
• Is every task always understood by everyone?
• With the same input (including people) do we… • always reach the same results?
• is it possible to have the same input?
Source: Mike Cohn
Lessons from Planned Economies (M.Poppendieck)
conventional project management training focuses on using a plan as the
program for action;
it does not teach project leaders how to create a software development environment that fosters self-‐organization and learning.
Reality of Information Systems
Source: Standish Group Study Reported at XP2002by Jim Johnson, Chairman
AlwaysOgenSomehmesRarelyNever
Reality of Information Systems
Source: Standish Group Study Reported at XP2002by Jim Johnson, Chairman
AlwaysOgenSomehmesRarelyNever
64 % !!!!
How well people knew customer’s needs?
How many levels of separation from the customer employees had?
Topics to consider
How well people knew customer’s needs?
How many levels of separation from the customer employees had?
Topics to consider
How effective at influencing the change needed?
http://exileinportales.blogspot.com/2012/04/heh-‐and-‐another-‐thang.html
70% of successful entrepreneurs have incubated their business ideas while employed by someone else, but stop working for others. Why? Because most managers are simply unbearable by failing to attend to their employees’ ideas How Bad Leadership Spurs
Entrepreneurship Tomas Chamorro HBR SEPTEMBER 10, 2012
We’re loosing the relay race
https://hbr.org/1986/01/the-‐new-‐new-‐product-‐development-‐game
The … “relay race” approach to product development may conflict with the goals of maximum speed and flexibility. Instead, a holistic or “rugby” approach—where a team tries to go the distance as a unit, passing the ball back and forth—may better serve today’s competitive requirements.
The New New Product Development Game Hirotaka Takeuchi, Ikujiro Nonaka
Microsoft Overhauls, the Apple Way NICK WINGFIELD NYT, July 11, 2013 http://www.nytimes.com/2013/07/12/technology/microsoft-‐revamps-‐structure-‐and-‐management.html
“This challenge requires entirely new organizational structures and skills.” – Steve BlankReporting vs Supporting organizational culture
The Agile Manifesto
We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value:
Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
That is, while there is value in the items on the right, we value the items on the left more.
© 2001, the above authors but only in its enthis declaration may be freely copied in any form, etirety through this notice.
I see … I can’t buy/copy one
really innovative business model off
the shelf …
…ok … I will create
my own! On the fly!
Empirical model
Inputs • Needs/
Requirements • Technology • Team/Skills
ProcessOutput • Potentially
shippable product (functional increment)
Empirical model
Inputs • Needs/
Requirements • Technology • Team/Skills
ProcessOutput • Potentially
shippable product (functional increment)
Team’s management tools/
“Car steering wheel”
Empirical model
Inputs • Needs/
Requirements • Technology • Team/Skills
ProcessOutput • Potentially
shippable product (functional increment)
Team’s management tools/
“Car steering wheel”
Lean (StartUp) -‐ reduce waste and mitigate risks as fast as we can
• Don’t build something for which there isn’t a customer
• Don’t let mistakes propagate into the process • Find problems early • Minimize on-‐hand inventory (eg. decisions):
optimize material/information flow
Benevolent Dictator for Life
Servant Leaders
intrapreneurs/ Lean StartUp Scrum
team(s)
Customers
Waterline
Good product – work of cross-‐functional teams
Feasible/ Achievable
Sustainable/ Waterline
Desirablewith flat structure
to customers
with technologyBusiness model
Culture and behavior
Benevolent Dictatorship/ Constraints
Skills
Dev Team
Users
Managers
Good product – work of cross-‐functional teams
Feasible/ Achievable
Sustainable/ Waterline
Desirablewith flat structure
to customers
with technologyBusiness model
InnovationCulture and behavior
Benevolent Dictatorship/ Constraints
Skills
Dev Team
Users
Managers
A ship shipping a ship shipping a ship shipping
a…
Servant Leadership is …
http://www.fotovlieger.nl/_media/project/201203_blue_marlin/dsc04650.jpg
Collaboration is a dance of contribution, requiring that people alternately step forward to contribute and step back to let others contribute. This dance acquires a sort of rhythm.
Dr. Alistair Cockburn
Collaboration is a dance of contribution, requiring that people alternately step forward to contribute and step back to let others contribute. This dance acquires a sort of rhythm.
Dr. Alistair Cockburn
Lift others Be courteous. Lower your social posture. Listen intently. Recognize others.
Collaboration is a dance of contribution, requiring that people alternately step forward to contribute and step back to let others contribute. This dance acquires a sort of rhythm.
Dr. Alistair Cockburn
Lift others Be courteous. Lower your social posture. Listen intently. Recognize others.
Make progress Say something valuable. Clarify the way forward. Focus. Get a result.
Collaboration is a dance of contribution, requiring that people alternately step forward to contribute and step back to let others contribute. This dance acquires a sort of rhythm.
Dr. Alistair Cockburn
Lift others Be courteous. Lower your social posture. Listen intently. Recognize others.
Increase safety Be yourself. Donate. Widen the boundary. Support others. Challenge but adopt ideas. Build personal relationships. Not betray. Leave some privacy.
Make progress Say something valuable. Clarify the way forward. Focus. Get a result.
Collaboration is a dance of contribution, requiring that people alternately step forward to contribute and step back to let others contribute. This dance acquires a sort of rhythm.
Dr. Alistair Cockburn
Lift others Be courteous. Lower your social posture. Listen intently. Recognize others.
Increase safety Be yourself. Donate. Widen the boundary. Support others. Challenge but adopt ideas. Build personal relationships. Not betray. Leave some privacy.
Make progress Say something valuable. Clarify the way forward. Focus. Get a result.
Add energy Keep your energy high. Challenge. Contribute.
For You Today
• Focus on customer’s value creation, • Get feedback faster, Fail faster • Create Flat supportive organizational culture and • Practice daily value delivery with agile development
to bring truly innovational products to the market on the much faster pace than it was done ever before.
“We don’t get a lot of thanks up here. But when I look over there and see that little kid, the look in his eyes, that’s all the thanks I need.”