innovation processes in the age of digital transformation
TRANSCRIPT
Innovation Processes in the Age of Digital Transformation
Jason BloombergPresident
@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
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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
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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
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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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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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What Changes are Necessary to Drive
Innovation?
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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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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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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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Digital Transformation
What are you transforming?
Digital Transformation = Business Transformation
Customer Experience
TechnologyInternal
Organization
All of the Above
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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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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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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.”
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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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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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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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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
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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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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
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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
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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 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
@theebizwizard
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