cobis and oikosofy 5 innovation shots for the banking industry
TRANSCRIPT
Agile Innovation – SAFe: A scaled Agile approach for innovation and
transformation
#FinntechAmericas
A little insight that will save your life: A bank is a software company
The average lifespan of a company listed in the S&P 500 index of leading UScompanies has decreased by more than50 years in the last century (…) to just
15 years today.
Next?isWhat
Where does
innovation happen?
Don’t forget to take your shots, mister! Or you’ll have to visit the Innovation Doctor!
She’s right! You know?
Common causes of lack of Innovation. The gap we have to cross:
• Lacking processes that make innovation possible and or a reliable outcome of our work.
• Lacking a reliable and repeatable method evaluate the business value and impact on business of all the ideas generated.
• Lacking a method to manage all the ideas and still deliver concrete, short-term valuable incremental changes that helps us understand what works in practice
How do we go about treating the patient?
5 Actionable changes you can start with tomorrow that will enable innovation in your organization
Debrief• What were the key questions he asked?• What did he consider as “competition”?• What were they key words he used? • How did Christensen find the need?
Innovation starts with a deep understanding of the Customer1. Do research on your customers and product/service
situations (what job is your product/service hired to do?)
2. Create hypothesis, test them!3. Create interviews to explore the jobs your
customers needs solved4. “Get out of the building” – prepare and execute
interviews5. Pitch ideas to each other and collect feedback6. Use the free email support that comes with this
workshop and ask questions about what bothers you. [email protected]
Actionable Change # 1: Involve your customers in product and service
design by learning about their “Jobs-to-be-done”
In real life:
The process to support the change:
Actionable Change # 2: Projects kill innovation. Change to a continuous
flow of innovation.
In real life:
The process to support the change:
1. Create groups of five, with ten coins per group. One person is the timekeeper. The remaining four people process the coins.
2. Person by person, flip all coins one at a time, recording your own results (heads or tails).
3. Pass all coins at the same time to the next person.
4. Time keeper records time from the start of the first flip to the completion of the last flip for the group.
Large Batch Push
Exercise – Large Batch Push
5Minutes
Small Batch Pull
1. Similar five person process (4+1 time keeper)
2. Each person flips each coin one at a time and records the result
3. But, pass each coin as flipped
4. The time keeper records the time from the start of the first flip to the completion of the last flip
Exercise – Small Batch Pull
5Minutes
„Working at full capacity is an economic disaster“- Donald Reinertsen, Principles of Flow
In Progress: 5 Quarters worth of work
In the backlog: ~4 years worth
of work
Actionable Change # 3: Small is the new Big. Deliver constantly small
increments of value. Reducing risk and accelerating learning.
In real life:
The process to support the change:
The Scrum Process Framework
DevOps approach with
Continuous Delivery
Bug evolution in a non-agile project
OpenClosedSubmit
Timeline
Num
ber o
f Bug
s
Development phase Desperately testing and fixing phase
Waterfall
The 10 types of Innovation
(A possible model)
Actionable Change # 4: Break all the silos. All must work together to
make innovation possible
In real life:
The process to support the change:
Can we succeed without execution?
Portfolio
Do we have the right things in our portfolio?
Slow Processes: a (BAD) example
Time
Adde
d Va
lue
6 months trying to get the project approved
One dayBrainstorming new product idea 6 months
product development
Consequences of slow processes:• Higher costs -> due to the amount of
work that is pending while the costs are accruing
• Lower quality -> slow processes allow for “dirty” workarounds and hide quality problems (which in turn increase costs due to rework)
Corollary of fast processes
For any given process, if you can reduce the Time it takes to execute it, you will consequently reduce Costs and increase Quality
CASE: Flexible Requirements Management
Different content abstractions for different stakeholders
User Stories
Features
EpicsPortfolio Items – Customer marketable
Longer term planning (more than 1 iteration)
Where the rubber meets the road – what we do in one iteration
Product Marketing and
Portfolio
Product Owner + Architect + UX
Team + Product
Owner
Different ways to manage a portfolio of Epics/Features
Epic
Feature
Feature
Feature
Feature
Feature
Feature
Feature
Feature
Feature
Epic Epic
Feature
Feature
Feature
Epic
Feature
Feature
Feature
Epic Option 1:• Many epics• Shallow implementation• New market / new business
innovation• Typical goal: catch up (me too or tick-
in-box products for reviews)Epic
Feature
Feature
Feature
Feature
Feature
Feature
Epic
Feature
Feature
Feature
Feature
Feature
Feature
Feature
Feature
Feature
Option 2:• Few epics• Deep implementation• Technological innovation• Typical goal: Hero products, unique
experiences, Niche-focused productsWHAT IS YOUR GOAL?
Epics in progressEpic work broken down
into featuresFeatures in
ProgressWork
completed
Visualize all work ongoingFrom Strategy to execution
Prioritize everything according to your strategy and biggest impact
Tim
e to
mar
ket
Impact on strategic goal
Best choices
Actionable Change # 5: Create transparency all the way from Strategy to execution, and manage for value delivery,
not for maximization of work
In real life:
Covered by NDA
Big Bank in the Nordic countries
10x
The process to support the change:If you want to know more: Contact us at the COBISCorp STANDEmail me at: [email protected]