innovation processes in the age of digital transformation

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

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Innovation Processes in the Age of Digital Transformation

Jason BloombergPresident

[email protected]

@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

Process for Innovation?

Disrupt Innovate

Innovation is not a typical business process!

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

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Optimization vs. Innovation

InnovationDisrupt status quo

to allow human creativity to

flourish

OptimizationEstablish

feedback loops that maximize

business outcome

Copyright © 2015, Intellyx, LLC6

Innovation Requires Disruption

• External Disruption– Competitive

pressures/new entrants– Globalization– Regulation

• Internal Disruption– Digital Transformation

efforts– Innovation initiatives

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Disruption Introduces Risk

• Optimization without disruption stifles innovation

• Disruption without optimization is an innovation crap shoot

• Optimize what you can & disrupt what you must Ph

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Mitigate risk with resilience

Copyright © 2015, Intellyx, LLC8

Resilience

• The ability to respond quickly and efficiently to negative change in the business environment– Managing risk– Bouncing back from

adverse events– Disaster recovery

• Tactical business driver Phot

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The opposite of brittleness

Copyright © 2015, Intellyx, LLC9

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

Copyright © 2015, Intellyx, LLC10

Innovativeness• The ability to introduce change into the business

environment in order to achieve a strategic advantage– New products or services– Expand market share– Enter new markets

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Copyright © 2015, Intellyx, LLC11

What Changes are Necessary to Drive

Innovation?

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Copyright © 2015, Intellyx, LLC12

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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Copyright © 2015, Intellyx, LLC13

The Core Business Goal

AgileDigital

Transformation

Copyright © 2015, Intellyx, LLC14

What is Digital?

Customer preferences & behaviordrive technology choices

Range of technology touchpoints is exploding

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Copyright © 2015, Intellyx, LLC15

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, LLC16

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

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Copyright © 2015, Intellyx, LLC17

Digital Transformation

What are you transforming?

Digital Transformation = Business Transformation

Customer Experience

TechnologyInternal

Organization

All of the Above

Copyright © 2015, Intellyx, LLC18

The Key to “Flexible People”

• How do get teams to capitalize on disruption?

• How do you take creative, imaginative individuals and establish processes for innovation?

Self-Organization

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Copyright © 2015, Intellyx, LLC19

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, LLC20

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, LLC21

Self-Organization in Practice

• Individuals collaborate on ad hoc basis depending on business priorities

• Management responsible for:– Setting goals– Providing resources– Delineating constraints

(e.g. compliance)– Getting out of the way

Assigning people or tasks to a team? It’s not self-organized!

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Copyright © 2015, Intellyx, LLC22

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

Copyright © 2015, Intellyx, LLC23

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!

Copyright © 2015, Intellyx, LLC24

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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Copyright © 2015, Intellyx, LLC25

The Paradox of Self-Organization

• Managers can’t do it– Unless they’re on the

team• Digital strategies at the

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, LLC26

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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Copyright © 2015, Intellyx, LLC27

The Continuous Delivery Mentality

• 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, LLC28

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, LLC29

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

Copyright © 2015, Intellyx, LLC30

#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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Copyright © 2015, Intellyx, LLC31

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

[email protected]

@theebizwizard

Send email NOW to [email protected] to download this

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Thank You!