innovation in the age of digital transformation

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Innovation in the Age of Digital Transformation Jason Bloomberg President [email protected] @theebizwizard

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Page 1: Innovation in the age of digital transformation

Innovation in the Age of Digital Transformation

Jason BloombergPresident

[email protected]

@theebizwizard

Page 2: Innovation in the age of digital transformation

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

Page 3: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC3

How to Drive Innovation in Today’s Digital World?

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Page 4: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC4

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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Page 5: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC5

Innovation Also Requires Disruption

• External Disruption–Competitive pressures/new

entrants–Globalization–Regulation

• Internal Disruption–Digital Transformation efforts– Innovation initiatives

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Page 6: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC6

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

Page 7: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC7

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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Page 8: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC8

The Core Business Goal

AgileDigital

Transformation

Page 9: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC9

What is Digital?

Customer preferences & behaviordrive technology choices

Range of technology touchpoints is exploding

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Page 10: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC10

What about Transformation?Internal organizational change is

necessary to maintain focus on the customer in today’s digital world

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Page 11: Innovation in the age of digital transformation

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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Page 12: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC12

Digital Transformation

What are you transforming?

Digital Transformation = Business Transformation

Customer Experience

TechnologyInternal

Organization

All of the Above

Page 13: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC13

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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Page 14: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC14

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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Page 15: Innovation in the age of digital transformation

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.”

Page 16: Innovation in the age of digital transformation

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

Page 17: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC17

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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Page 18: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC18

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!

Page 19: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC19

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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Page 20: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC20

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!

Page 21: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC21

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

Page 22: Innovation in the age of digital transformation

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!

Page 23: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC23

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

Page 24: Innovation in the age of digital transformation

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

Page 25: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC25

#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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Page 26: Innovation in the age of digital transformation

Copyright © 2015, Intellyx, LLC26

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

Page 27: Innovation in the age of digital transformation

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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Page 28: Innovation in the age of digital transformation

Jason BloombergPresident, Intellyx

[email protected]

@theebizwizard

Send email NOW to [email protected] to download this presentation

Thank You!