Innovation - road to value TopConf Nov2015

https://www.flickr.com/photos/mendhak/8162305237

Curiosity, learning and innovation -‐ my agile road to the value!

… change happenz

… change happenz

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

So, the goal is – to satisfy

customer’s unmet needs faster!

So, the goal is – to satisfy

customer’s unmet needs faster!

CAPT.OBVIOUS

StartUper’s dilemma

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 …


confidence and succeeding, but … … not helping me to create the

innovation that customers would need


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.

Business challengesWorld is changing and changing fast

Who uses Skype?

Who uses Skype?

Who uses Skype?

Agile Saturday, 28th of September, 2013

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


Skype – 10 years




Millions of u

sers

0

103

207

310

1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020


Skype – 10 years




Millions of u

sers

0

103

207

310

1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020


Skype – 10 years




Millions of u

sers

0

103

207

310

1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020


Skype – 10 years




Millions of u

sers

0

103

207

310

1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020


Skype – 10 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

http://www.independent.ie/business/technology/skype-still-calling-the-shots-but-competitors-are-gaining-29557133.html

http://www.independent.ie/business/technology/skype-still-calling-the-shots-but-competitors-are-gaining-29557133.html

Source: Boing, Capcom, Toyota, X&Y Partners 2012 analysis

Time to production

Aircrag

Automohve

Video Games

0 2 4 6 8

AvarageResult


Time to production

Aircrag

Automohve

Video Games

0 2 4 6 8

AvarageResult

8


Time to production

Aircrag

Automohve

Video Games

0 2 4 6 8

AvarageResult

4

8


Time to production

Aircrag

Automohve

Video Games

0 2 4 6 8

AvarageResult

4

4

8


Time to production

Aircrag

Automohve

Video Games

0 2 4 6 8

AvarageResult

6

4

4

8


Time to production

Aircrag

Automohve

Video Games

0 2 4 6 8

AvarageResult

1

6

4

4

8


Time to production

Aircrag

Automohve

Video Games

0 2 4 6 8

AvarageResult

3

1

6

4

4

8


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

What is wrong with the structure?Why the new one?

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?

Topics to consider


How many levels of separation from the customer employees had?

Topics to consider


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

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 …

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/




Team’s management tools/

“Car steering wheel”

Empirical model

Inputs • Needs/




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

ˇ

ˇ ˇ

Customers

ˇ

ˇ ˇ

Customers

ˇ

ˇ ˇ

Customers

ˇ

ˇ ˇ

intrapreneurs/ Lean StartUp Scrum

team(s)

Customers

ˇ

ˇ ˇ


team(s)

Customers

Servant Leaders


team(s)

Customers

Servant Leaders


team(s)

Customers

Benevolent Dictator for Life

Servant Leaders


team(s)

Customers

Benevolent Dictator for Life

Servant Leaders


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

Mighty Servant 3

http://en.wikipedia.org/wiki/Mighty_Servant_3

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.




Increase safety Be yourself. Donate. Widen the boundary. Support others. Challenge but adopt ideas. Build personal relationships. Not betray. Leave some privacy.





Increase safety Be yourself. Donate. Widen the boundary. Support others. Challenge but adopt ideas. Build personal relationships. Not betray. Leave some privacy.


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.”

Position

http://farm1.staticflickr.com/155/410876816_bbf4c502de_o.jpg

Learning is

Messy

Presentations & Public Speaking

Innovation - road to value TopConf Nov2015