Where is your institution now in the innovation maturity cycle?
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- Owen Carr
- 5 years ago
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Transcription
1 Where is your institution now in the innovation maturity cycle? Engagement Efforts are ad-hoc, informal, or nonexistent Change mandate may be new Emphasis Tackling a lot of things at once Often playing catchup from past underinvestment Need to prioritize competing projects Effectiveness Putting innovation into regular practice Current program may be ineffective or stalled Extending and defending core products/services Efficiency Typically more advanced teams Want to focus on big strategic bets and/or proprietary ideas Creating viable options and building emerging businesses Self-Assessment: FTForge.com/Inventory 1
2 What is Innovation? 2
3 NOT Innovation Theatre 3 3
4 NOT The Fintech Petting Zoo 4
5 NOT synonomous with Technology 5
6 Innovation IS implementing new ideas that create value 6
7 Innovation vs. Core Business New Products New Customers New Markets Partner with Others Increase Variety Create New Metrics Nail it, then Scale it Maximize Learning Explore Unknowns Discover Next Practices EXPLORATION Existing Products Existing Customers Existing Markets Internal Resources Reduce Variability Meet/Exceed Metrics Increase Volume Maximize Profit Manage Known Knowns Enforce Best Practices EXECUTION 7
8 Innovation is NOT like managing a typical IT project 8
9 Highly Regulated Environment Dynamic Fintech Landscape 9
10 To bridge the gap, we need an Empirical Approach to Value Creation 10
11 Modern agile business methods Discovery Validation Empathy Ideate Business (Viability) Define Prototype Test Technology (Feasibility) People (Desirability) Culture Core Risk Processes Management Compliance Infrastructure Custom tailored for a highly regulated environment FIRE 11
12 Fast Iterative Responsive Experiments Shorten the gap between idea and results Process of continuous improvement Data drives subsequent iterations Structured to maximize learning 12
13 Empirical Approach to Value Creation Strategic Investments Focus on strategic value Impact outcome Early insights Compliant Internal Accelerator Rapid trials for quick learning and deployment Select partners Network effect reduces risk, accelerates wins Proven Tools and Frameworks Consistent approach Governance and process Declaration of Innovation 13 13
14 Area of existing expertise? Predict results of any tactic +/- 10%? Sufficient return profile from existing tactics? Unlikely area of disruption in mid to long term? Do you want to play defense vs. offense? Yes Yes Yes Yes Yes Use Existing Strategies, Tactics & Processes No Use FIRE Exhausted learning potential? Yes Sufficient return to maintain in core biz? Yes No Yes Identifiable hypothesis to test? No STOP Capture data & mothball 14
15 Culture: Beliefs and Behaviors Processes: Effective Execution Programs: Change the state Systems: Maintain the state Structures: Foundational Frameworks FTForge, LLC 15
16 Funding and Governance Frameworks Executive Leadership Risk and Compliance Controls FIRE Break Test and Learn Sandbox FIRE Teams Rapid Prototypes High Level Solution Design Rapid Prototypes High Level Solution Design Rapid Prototypes High Level Solution Design TRIAL 1 TRIAL 2 TRIAL N Compliance Validation Refine Approach Compliance Validation Refine Approach Compliance Validation Refine Approach Review Potential Partners Review Potential Partners Review Potential Partners 16
17 Structures Governance Group FIRE Break FIRE Team Executive Sponsor + Members of ELT Determine priorities Build FIRE Teams Approve experiments / course of action based on results. Team from risk, security and compliance Supports the FIRE Team through proposal, execution and recommendation. Responsible for getting to yes Cross functional team from product, marketing, operations, technology, delivery as appropriate Refine the opportunity & prepare experiment proposal Execute approved experiment & recommend next steps 17
18 Test and Learn 18 18
19 No Battle Plan Survives Contact with the Enemy - Helmuth von Moltke 19
20 Everybody has a plan until they get punched in the face. - Mike Tyson 20
21 Plans are worthless, but planning is everything - Dwight D. Eisenhower 21
22 Peak of Inflated Expectations The Next Big Idea? Slope of Enlightenment Plateau of Productivity Trough of Disillusionment Technology Trigger The Gartner Hype Curve,
23 Diffusion of Innovation Chasm Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% MIL Everett Rogers, 1957 Geoffrey Moore,
24 Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Incumbents Plateau of Productivity Technology Trigger Chasm Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% 24
25 $8,500 IPO Plan your Work, Work your Plan. $400 Bankruptcy Capital ($M) ($613) ($830) Orders Per Day 8000 Orders Per Day 25
26 MVP > GBF 26
27 Minimum Viable Product (MVP) Not this Must be able to test along the way But this! Iterations help build value at every stage 27
28 Nail it then Scale it 28
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34 The facts lie outside the building. Steve Blank 34
35 Business Plan/ Requirements Product Development Alpha/Beta Tests Launch Sales? Marketing? Finance? What does this mean for: Hire sales manager Initial sales hires Create materials Create positioning Initial forecast: revenue and expenses Build sales organization Build sales plan/strategy Hire PR Agency Create early buzz Finalize budget Managerial commitment Sales activity and management Create Demand Splashy launch Branding Measure/ analyze/ report results Adapted from Steve Blank,
36 Customer Development Exploration Execution Customer Discovery Customer Validation Customer Creation STOP STOP STOP Company Building Turn Hypotheses into Facts Identify Scalable and Repeatable Sales Model Steve Blank,
37 Lean Startup Plan your Work, Build Work your Plan. Learn Measure The Lean Startup, Eric Ries,
38 Minimize Waste Garbage by Bart Everson is licensed under CC by
39 Stealth Mode Data > Secrecy39 39
40 Types of Innovation Trials Assessment & Development External Opportunity Trials can start anywhere in the process and steps can be jumped; an MVP can take many different forms Evaluation Flush out idea, organize team, develop action plan Proof of Concept (Feasibility) Prototype (Desirability) Pilot (Viability) Phased Rollout Launch 40
41 The Sweet Spot Business (Viability) Technology (Feasibility) People (Desirability) 41
42 Desired Outcomes of a Trial Both failure and success are expected. Goal is to reach a quick decision. After everything necessary has been learned, it s a waste of time to continue with the same trial. Success cannot be viewed as consistently moving along with the same idea. It is desirable to have trials that don t work. That means we are learning. 42
43 Insanity: doing the same thing over and over again and expecting different results. - Albert Einstein 43
44 Proof of Concept: Technology/Feasibility Focus on most basic level of technical feasibility Move to next trial if feasibility is confirmed Run rapid, controlled trial (no customers impacted) Measure and interpret results 44
45 Prototype: People/Desirability Travel through user experience Demonstrate the look and feel and product design Low-fidelity mockups Gather feedback on how product will be used in real world environment Text and graphics 45
46 Pilot: Business/Viability 46
47 Phased Rollout Product introduced to customers in cohorts Product, messaging and processes adapted to results Timeline is flexible and can be changed as needed 47
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49 Homework: Come to class tomorrow with a customer problem or opportunity 49
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51 JPNicols.com/Class All slides All videos More Resources: Blogs Podcasts Books Conferences