innovation in the age of digital transformation
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Innovation in the Age of Digital Transformation
Jason BloombergPresident
jason@intellyx.com
@theebizwizard
Copyright © 2015, Intellyx, LLC2
About Jason Bloomberg• President of industry analyst firm Intellyx• Agile digital transformation thought
leader• Write for Forbes, several blogs,
biweekly newsletter the Cortex• Buy my latest book, The Agile
Architecture Revolution
Copyright © 2015, Intellyx, LLC3
How to Drive Innovation in Today’s Digital World?
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The Disruption Spectrum• Evolutionary innovation
– New and improved!– Processes reasonably well understood– Common
• Disruptive innovation– New market category!– Customers didn’t know they wanted it
until they saw it– Little understanding of the process– Rare Ph
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Innovation Also Requires Disruption
• External Disruption–Competitive pressures/new
entrants–Globalization–Regulation
• Internal Disruption–Digital Transformation efforts– Innovation initiatives
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Business Agility
• Responsiveness– Tactical value
• Resilience– Risk mitigation
• Innovativeness– Strategic value
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Ability to respond to change in the business environment and leverage change
for competitive advantage
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Today’s Agile Imperative
Organizations must capitalize on disruption to achieve greater innovativeness and resilience in the face of digital transformation priorities
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The Core Business Goal
AgileDigital
Transformation
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What is Digital?
Customer preferences & behaviordrive technology choices
Range of technology touchpoints is exploding
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What about Transformation?Internal organizational change is
necessary to maintain focus on the customer in today’s digital world
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Copyright © 2015, Intellyx, LLC11
What is Digital Transformation?
• Customer pressures driving technological and organizational change in companies
• Enterprises rethinking:– How they serve customers– The role IT plays– How they build & manage teams– How they innovate Ph
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Digital Transformation
What are you transforming?
Digital Transformation = Business Transformation
Customer Experience
TechnologyInternal
Organization
All of the Above
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Business Transformation for Innovation
• How do you get teams to capitalize on disruption?
• How do you take creative individuals and get them to innovate?
Self-Organization
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Essential Tool: Self-Organization
• Traditional hierarchical organizational models limit or eliminate self-organization
• “Skunk works,” startups, and DevOps organizations work best when self-organized
• Should digital efforts be self-organized?
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Copyright © 2015, Intellyx, LLC15
The Agile Manifesto Leads the Way?
– Principles behind the Agile Manifesto
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“The best architectures, requirements, and designs
emerge from self-organizing teams.”
Copyright © 2015, Intellyx, LLC16
Self-Organization Thrives on Disruption
• DevOps-style self-organization essential for agile, innovative digital transformation
• Challenge: scale upself-organization from small team level up to enterprise level
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Innovation hangs in the balance
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Self-Organization in Practice• Individuals collaborate on ad hoc basis depending
on business priorities• Teams responsible for their own
membership• Teams decide how they want to
make decisions• Cross-team collaboration also self-organized
When disruption drives innovation
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Innovation as Adaptive Behavior
• Follows principles of natural selection
• Disruptive environments drive adaptive behavior
• The better an organization adapts to disruption, the more it will thrive
Evolve or die!
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Organizational Connectivity & Innovation
• Tightly connected organizational networks limit flexibility
• Loosely connected organizational networks facilitate flexibility– Reporting structures– Lines of communication– Expectations for collaboration
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Business Agility as Emergent Property of Enterprise
• Business agility is a property of the organization as a whole
• Agility doesn’t emerge at the team level
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Business agility emerges, not the
architecture!
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The Paradox of Self-Organization
• Managers can’t do it– Unless they’re on the team
• Digital strategies at executive level are self-defeating– Self-organize by not
organizing– Manage change my not managing
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Management Consulting Pitfall
Copyright © 2015, Intellyx, LLC22
A Word to the Managers• Don’t:
– Assign people to teams– Assign tasks or projects to teams– Determine success criteria for teams
• Do:– Provide context for teams (business,
compliance, etc.)– Ensure that teams have what they need– Get out of their way
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Assigning people or tasks to a team? It’s not self-organized!
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The DevOps Context• Self-organized teams
deploy when ready• Deployments are
increasingly granular• “Fail fast” mentality
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Resilience becomes part of the culture
Copyright © 2015, Intellyx, LLC24
How to Participate on Self-Organizing Team
• Know where you can provide the most value
• Leverage your formal and informal networks to recruit the best people
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Volunteer mindset
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#1 Requirement: Empathy
• Focus on the other people on your team & across your organization
• Your job is to make them successful– And vice-versa
• Thought patterns to avoid:– Throw it over the wall– Us vs. them– Any kind of bigotry Ph
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The Center of Digital Enablement
• Team responsible for end-to-end best practice across digital effort
• Where the enterprise architects fit in
• Essentially becomes an innovation competency center Ph
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Let CODE self-organize
Copyright © 2015, Intellyx, LLC27
The Bar is Set!
It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.
–Steve Jobs (allegedly)
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Jason BloombergPresident, Intellyx
jason@intellyx.com
@theebizwizard
Send email NOW to dodo@intellyx.com to download this presentation
Thank You!
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