Taking Innovation to the Edge

Peter Evans-Greenwood Deloitte CIO Forum 2012-04-19

Slide 1: Taking innovation to the edge

leaping from our organizations we want to do something, but we dont want it to be a distraction the problem is that innovation is not a product you can buy. Its not: an idea a method a technology which brings us to todays topic

Structure
innovation is a result of the culture you create its a question of solving problems; not ideas, methods or tools creating this problem-solving culture is the by product of consistent behaviour, which we can all copy

Tigers & Aardvarks I as I think many of us do struggle with innovation

the executive demand innovation to drive the business forward and IT does seem to be a (or even the) source of many of the innovations we see around us: Apple, Facebook and yet, whenever I set up an innovation program it seem to generate demand for expensive automated whiteboards and other toy If only we had this, then we would be innovative at the same time, something is obviously missing as innovation is not magically

Taking innovation to the edge

how we in IT and innovate in a meaningful way how do we do this without becoming bogged down in governance and without throwing money away a every idea we see

Housekeeping
questions at the end Ill be around for a bit if anyone wants a chat

Slide 2: What is innovation

Were trying to find the thing that will solve our problems, as good engineers tend to Processes / governance help us manage innovation, but do not create it

Unfortunately innovation is not something you can buy

Its not an an idea Scott McNealy: all the smart people work for someone else if we have a good idea, then we must assume that someone has already had it a person, department or skill T-shaped people Chief Innovation Officer a process, product or project Design Thinking Apple - > Newton Microsoft -> Kin

Innovation as spooky action at a distance

We know it when we see it but what is it exactly?

how do we engage with something as fuzzy an innovation

How do measure something we struggle to define? How do we incent our people if we cannot measure it? What can we buy if we dont know what out team is lacking?

Let us start wit a happy story

I like this because its local and shows that innovation isnt something you import from overseas, which cultural cringe leads many companies to do Jetstar boarding gates

Our challenge in IT
Were driven to innovate by the business We often ask the question What governance can I put in place? What methods do I need? What ideas can I exploit? Do I have the right people/skills?

Innovation is not a problem to be solved

Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. Its not about money. Steve Jobs

All these are useful, but they are not sufficient

Ideas are not exclusive People / skills only succeed in the right context

Slide 3: Innovation is a question of solving problems

Its a process of cultural accretion
Think Miles Davis or Jimi Hendrix Learning from past masters Trying to find their own voice and avoid second album problem

For me, innovation has three simple components

1.Have a problem to work on 2.Dont worry about being original 3.Steal ideas

I gave up trying to define innovation

once I realized that it comes from culture The real challenge is solving problem and finding new answers Definitions are beside the point innovation is a journey not a destination Methods and tools can help but they are not a panacea open innovation: collect ideas design thinking: thinking hats

Slide 4: A problem to work on

Apple et al are the same
These ideas did not come from nowhere They grew from something quite conventional We just didnt see the steps on the way iPhone developed after Apple realised that the tablet technology they were working on would make a good phone

What problem are you solving?

Lower costs (step change) New products or services New ways to engage with customers (and moving earlier in the sales cycle)

Example: Twitter for sales

Drug company used SMS messaging to support sales team in the field Response to simple questions in < 5 minutes Close the deal without needing to rebook

Its the same for IT Picasso and the bull

el bulle 11 lithographs (9 shown) trying to find the essence of a bull essense of bull < problem print < technology

Creativity is a journey
Many of us would have seen the result of Picassos investigations His innovation but not the journey

Slide 5: Dont bother trying to be original Dont get hung up on being innovative
As we said before it depends on context we dont recognise it until after the fact we cant even define it Its futile

Avoid cultural cringe

Who cares if someone else has claimed that they : have solved the problem is solving the problem will solve the problem

Tom Fryer
No matter how hard you try and be original Someone else has always done it first

iPhone
Nathin Myvold and iPhone article Published in a well known magazine in the 90s

Slide 6: Steal ideas freely

As Jean-Luc Goddard said

Its not where you take things from, its where you take them too

Slide 7: Innovation is a side effect of culture

How do we create this culture of innovation?
You dont create culture Culture happens Culture is the byproduct of consistent behaviour

So what are the consistent behaviors we want to create?

So innovation is:
1.Have a problem to solve 2.Dont worry about being original 3.Steal ideas that fit

Which, interestingly, is a lot like Obliquity

John Kay http://www.johnkay.com/2004/01/17/ obliquity The best path to success is often not the most direct

Interesting to note
We just make products wed love to own Steve Jobs, Jon Ives

Slide 8: Create the cultural imperative

Common approaches
Starve the beast John Hagel Create stress (time/money) Stephen Tame

Informally
Which are our big scary problems? What assumptions havent we questioned recently? Does common sense hold?

Formally
heat maps how do I want to manage each business activity strategy maps what sort of problems might I solve

Why innovate?
Why should we do things differently? When should we do things differently?

Reduces to
Is this a problem we want invest our energies in?

These are the areas we want to innovate

Slide 9: Think like a Venture Capitalist

Invert your governance
Collect ideas from everywhere Do invest to discover Dont review to stop An inverted stage-gate process Be prepared to exit when its succeeded

Its a portfolio
Lots of small bets Not a few big bets

Allow governance to grow with opportunity We need to provide a process for people to engage with
The VC model is a good one Think GMail The use of invites to shape demand

Slide 10: Find the unsatisfied

Its not just your own people
Employees Other departments Contractors / consultants: arms dealers Partners / suppliers Remember Scott McNealy

How to find them

John Hagel on trust We hire / engage based on trust We want to trust people to do something new not just to repeat what theyve done in the past Which is counter to most hiring practices Reduce risk by finding someone who has repeatedly solved the same problem Use social media etc to find the unsatisfied People who have a history of questioning assumptions and coming up with a new viewpoint

Your biggest enemies are

The dogmatic this is how its done Perfectionists this time well do it right

Find the restless intelligence

Why is it done this way? How can I do this better? T-shaped Sun-shaped

Slide 11: Conclusions

Culture is something that happens
Its a side effect of consistent behaviour

While you cant buy innovation

you can start being innovative today

You can create a culture of innovation

The cultural imperative Think like a VC Find the unsatisfied

The problem is that innovation is not something you can buy

Its not a idea process technology

Its a culture of solving problems

technology and methods can help but theyre no sufficient

Slide 12: Contact Details

Peter Evans-Greenwood
@pevansgreenwood http://peter.evans-greenwood.com/ peter@evans-greenwood.com