3 Ways to Exploit the 5 Types of Innovation. George Geno, Senior Principal Consultant May 23, 2018

Transcription

1 3 Ways to Exploit the 5 Types of Innovation George Geno, Senior Principal Consultant May 23, 2018

2 NEXT IS HERE General Dynamics IT and CSRA are Now One gdit.com

3 Agenda Innovation types and classes Innovation management Vendor types How to protect and nurture innovation s potential

4 What Innovation IS Merriam-Webster The introduction of something new. BusinessDictionary.com The process of translating an idea or invention into a good or service that creates value or for which customers will pay. Wikipedia Innovation can be defined simply as a new idea, device or method. However, innovation is often also viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs.. The term innovation can be defined as something original and more effective and, as a consequence, new, that breaks into the market or society.

5 What Innovation Is NOT Invention An invention is a unique or novel device, method, composition or process. The invention process is a process within an overall engineering and product development process. It may be an improvement upon a machine or product or a new process for creating an object or a result. An invention that achieves a completely unique function or result may be a radical breakthrough. Such works are novel and not obvious to others skilled in the same field. Wikipedia Discovery Discovery is the act of detecting something new, or something "old" that had been unrecognized as meaningful. Wikipedia Innovation is NOT the spark or the epiphany from creativity or insight.

6 The SPARK IS Important Make no mistake, the spark is important! Generating the spark can be hard work. For this discussion we are talking about what happens when: The question Does it exist? has been answered. The question becomes Can we use it?

7 What Is The Difference? Discovery and invention both start from a moment of recognition that something of value exists (or might exist) where that recognition did not exist before. Innovation requires this spark to exist before it can develop. Discovery and invention provide the spark. Innovation realizes value from the spark. Discovery and invention drive knowledge. Innovation drives value. Discovery and invention ignite; innovation generates.

8 What Constitutes Value? Does the innovation meet a need? No? Is it really an innovation? Yes? (Qualitatively speaking, there is value.) Yes How well does the innovation meet the need(s)? Does it meet multiple needs? (complexity reduction) Does it have controllable variation? (configurability) Does it support scale? (volume, capacity) Does it

9 How Value Is Realized Value exists within context (often multiple). It is often built-up in a value chain It is ultimately visible to the end consumer What is more visible to the end-user is more valued! Wardley Maps: Topographical Intelligence In Business, August 10, 2016

10 Value Chain Maturity Value chain components ( innovations ) evolve and change over time. Maturity is suggested by how an innovation s core concept has marched along the scale. BUT, innovations can leap through or jump back!

11 5 Types Of Innovation Demonstration Packaging Productizing/Marketing Commoditizing Utilit-ization

12 What Causes The Movement? The spark that triggers the motion contains the key to whether the innovation will be sustaining or disruptive. The entrenchment of value with the end-user suggests the shock of an innovation. Disruptive innovation forward can usually be decomposed to find stage-related motions that are unexpectedly short or even just notional. Disruptive innovation to the reverse can usually be sourced back to a change in use case derived from changing requirements or user communities.

13 3 Ways Of Managing Innovation Enabling rapid change Eliminating waste Eliminating deviation

14 Characteristics of Vendors & Service Providers Size Economic Order Quantity Internal Innovation Location Method, Process, Tools Specialties

15 5 Types Of Vendors Tier 1 Tier 2 Boutique Commodity Utility

16 How Do Vendors Map To Innovations? Not all vendors can work within all 3 ways of managing innovation. They are affected by: Their existential characteristics Service level agreements Economic conditions Internal business objectives and boundaries

17 How Do Vendors Help Realize Innovation Value? How Do Vendors Help Realize Innovation Value? Enabling financial objectives Providing capability Catalyzing change Extending your enterprise in time or space

18 Technique For Using These Insights 1. Determine your innovation type and class 2. Establish a value realization strategy and an innovation management approach 3. Determine any vendor needed contribution(s) and any unacceptable constraint(s) on the strategy. 4. Select a vendor type(s) to bring to bear, and engage vendor based on their capacity to enhance or, at least, not hinder your innovation. 5. Manage, contract and govern to maintain the livelihood of the innovation s potential.

19 Watch For The Sparks! Final bit of advice Always invite the SPARK! Reward the sparks that result in value.

20 Comments? Questions? Discussion?

21 Contact Details George Geno Senior Principal Consultant, Business Area Architect, Open Group Distinguished IT Architect Federal Civilian Division State and Local Group

22 For More Information Christensen, Clayton M The Innovator s Dilemma. New York, NY: Harper Business. Cole, D. R., Geno, G. A., & Krieger, I. Does Outsourcing Matter?: How to Outsource IT Without Sacrificing the Company. Evans, Nicholas D. Wardley, Simon. Wardley Maps: Topographical Intelligence In Business.

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