The Intrapreneur's Playground - Agile Australia 2013

(Go and see) "Genchi gembutsu" GO AND SEE

It's easy to never leave your comfy desk if
you're serious about being an intrapreneur, then your desk is probably the worst place to be. If you're looking for ideas, just step outside your office and be with your customers, witness their necessity -‐ it's the best inspira?on you can find. -‐ crea?ve genius to come up with ideas -‐ a skills that can be learnt -‐ There’s really no secret sauce to innova?on. Let’s first look at some of the skills that you’ll need ...

At ThoughtWorks, we use these spider diagrams as a neat
way of showing some of the skills and disciplines we think are important for product innova?on. Having a ra?ng of 5 on any of these skills, doesn’t mean mastery... it just means you’ve got enough experience to share your knowledge/experiences with others. Not many people have all of these skills – start ups rarely do. Established organisa?ons are usually experts in execu?on & distribu?on, but discovery and idea?on skills are oNen harder to find. I regard Kate (in red) as being quite brilliant with ideas, storytelling and experience design. In contrast I’m more of an analy1cal observer (in blue). I strive to understand, then explore through prototyping and valida?on. This complementarity of skills is really useful -‐ innova?on is best when it involves as many different perspec?ves as possible. But so what? Why should you care about innova?on in big enterprise? Business are measured on the share-‐market in terms of current profitability + future poten?al. If you remain sta?c, the risk of becoming irrelevant is high (the Kodak Effect) So big companies who might be great at distribu?on and execu?on need to work out beXer ways to innovate. People oNen look to startups. Lean Startup in the Enterprise. And that’s valid, there’re lots of success stories from startups disrup?ng the market. Instagram vs. Flickr is one example. But, the threat isn’t just from startups. It’s from any organisa?on that’s beXer at innova?ng that you are. And there’s lots of big organisa?ons who are good at it -‐ what can be learn from them?

INCREMENTAL INNOVATION First, let’s describe what we actually mean by
‘innova?on’, with some examples. This is by no means the only way to categorise innova?on, but you’ve got to start somewhere! ‘Incremental’ is characterised by small ongoing changes oNen at the micro-‐level to collec1vely improve an exis1ng product. Perhaps you could think of it in terms of op1misa1on of core products. Large enterprises are preXy good at this, aNer all, 100% of their revenue typically comes from these core products, so there’s strong mo?va?on to invest here. Typically, 70% of innova?on investment is a good benchmark. <iOS> Ongoing changes, all the ?me. iO7 has just been announced. ‘Lateral’ I like to think of lateral innova?on as the modifica1on of an exis1ng product or capability in order to create new revenue streams or reach new markets. Riskier, higher chance of failure, but it usually occurs on top of exis?ng assets and business models -‐ so addi?onal investment there is somewhat limited, and it’s usually possible to use research to minimise risk. 20% of investment is a good target here. <low cost iPod touch> Dropped a few features (rear facing camera) and some different materials to make it cheaper. Now affordable for a previously unreached market. ‘Disrup1ve’ This kind of innova?on is typically driven by big breakthroughs in technology and/or a significant change in meaning to acquire or interact with a given object or product. If you want to dig a liXle deeper about what I mean here, I recommend checking out Don Norman and Robert Vergan?’s excellent white paper “Incremental and Radical Innova?on: Design Research versus Technology and Meaning Change” hXp://www.jnd.org/dn.mss/incremental_and_radi.html iMac G3 in the 1990’s is great example of disrup?ve innova?on -‐ it changed what it meant to own a computer. Then they did it again in 2008 with iPhone. I was working on mobile soNware products at the ?me, and remember it clearly. A lot of people though “telephony is really hard, there’s no way Apple will get this right”, but they were wrong, and what it means to have a truly ‘smart’ phone changed drama?cally. lately, it’s Apple Wrist Watch that we’re hearing about.

LATERAL INNOVATION INCREMENTAL INNOVATION First, let’s describe what we actually
mean by ‘innova?on’, with some examples. This is by no means the only way to categorise innova?on, but you’ve got to start somewhere! ‘Incremental’ is characterised by small ongoing changes oNen at the micro-‐level to collec1vely improve an exis1ng product. Perhaps you could think of it in terms of op1misa1on of core products. Large enterprises are preXy good at this, aNer all, 100% of their revenue typically comes from these core products, so there’s strong mo?va?on to invest here. Typically, 70% of innova?on investment is a good benchmark. <iOS> Ongoing changes, all the ?me. iO7 has just been announced. ‘Lateral’ I like to think of lateral innova?on as the modifica1on of an exis1ng product or capability in order to create new revenue streams or reach new markets. Riskier, higher chance of failure, but it usually occurs on top of exis?ng assets and business models -‐ so addi?onal investment there is somewhat limited, and it’s usually possible to use research to minimise risk. 20% of investment is a good target here. <low cost iPod touch> Dropped a few features (rear facing camera) and some different materials to make it cheaper. Now affordable for a previously unreached market. ‘Disrup1ve’ This kind of innova?on is typically driven by big breakthroughs in technology and/or a significant change in meaning to acquire or interact with a given object or product. If you want to dig a liXle deeper about what I mean here, I recommend checking out Don Norman and Robert Vergan?’s excellent white paper “Incremental and Radical Innova?on: Design Research versus Technology and Meaning Change” hXp://www.jnd.org/dn.mss/incremental_and_radi.html iMac G3 in the 1990’s is great example of disrup?ve innova?on -‐ it changed what it meant to own a computer. Then they did it again in 2008 with iPhone. I was working on mobile soNware products at the ?me, and remember it clearly. A lot of people though “telephony is really hard, there’s no way Apple will get this right”, but they were wrong, and what it means to have a truly ‘smart’ phone changed drama?cally. lately, it’s Apple Wrist Watch that we’re hearing about.

DISRUPTIVE INNOVATION LATERAL INNOVATION INCREMENTAL INNOVATION 1995 First, let’s describe
what we actually mean by ‘innova?on’, with some examples. This is by no means the only way to categorise innova?on, but you’ve got to start somewhere! ‘Incremental’ is characterised by small ongoing changes oNen at the micro-‐level to collec1vely improve an exis1ng product. Perhaps you could think of it in terms of op1misa1on of core products. Large enterprises are preXy good at this, aNer all, 100% of their revenue typically comes from these core products, so there’s strong mo?va?on to invest here. Typically, 70% of innova?on investment is a good benchmark. <iOS> Ongoing changes, all the ?me. iO7 has just been announced. ‘Lateral’ I like to think of lateral innova?on as the modifica1on of an exis1ng product or capability in order to create new revenue streams or reach new markets. Riskier, higher chance of failure, but it usually occurs on top of exis?ng assets and business models -‐ so addi?onal investment there is somewhat limited, and it’s usually possible to use research to minimise risk. 20% of investment is a good target here. <low cost iPod touch> Dropped a few features (rear facing camera) and some different materials to make it cheaper. Now affordable for a previously unreached market. ‘Disrup1ve’ This kind of innova?on is typically driven by big breakthroughs in technology and/or a significant change in meaning to acquire or interact with a given object or product. If you want to dig a liXle deeper about what I mean here, I recommend checking out Don Norman and Robert Vergan?’s excellent white paper “Incremental and Radical Innova?on: Design Research versus Technology and Meaning Change” hXp://www.jnd.org/dn.mss/incremental_and_radi.html iMac G3 in the 1990’s is great example of disrup?ve innova?on -‐ it changed what it meant to own a computer. Then they did it again in 2008 with iPhone. I was working on mobile soNware products at the ?me, and remember it clearly. A lot of people though “telephony is really hard, there’s no way Apple will get this right”, but they were wrong, and what it means to have a truly ‘smart’ phone changed drama?cally. lately, it’s Apple Wrist Watch that we’re hearing about.

DISRUPTIVE INNOVATION LATERAL INNOVATION INCREMENTAL INNOVATION 2008 First, let’s describe
what we actually mean by ‘innova?on’, with some examples. This is by no means the only way to categorise innova?on, but you’ve got to start somewhere! ‘Incremental’ is characterised by small ongoing changes oNen at the micro-‐level to collec1vely improve an exis1ng product. Perhaps you could think of it in terms of op1misa1on of core products. Large enterprises are preXy good at this, aNer all, 100% of their revenue typically comes from these core products, so there’s strong mo?va?on to invest here. Typically, 70% of innova?on investment is a good benchmark. <iOS> Ongoing changes, all the ?me. iO7 has just been announced. ‘Lateral’ I like to think of lateral innova?on as the modifica1on of an exis1ng product or capability in order to create new revenue streams or reach new markets. Riskier, higher chance of failure, but it usually occurs on top of exis?ng assets and business models -‐ so addi?onal investment there is somewhat limited, and it’s usually possible to use research to minimise risk. 20% of investment is a good target here. <low cost iPod touch> Dropped a few features (rear facing camera) and some different materials to make it cheaper. Now affordable for a previously unreached market. ‘Disrup1ve’ This kind of innova?on is typically driven by big breakthroughs in technology and/or a significant change in meaning to acquire or interact with a given object or product. If you want to dig a liXle deeper about what I mean here, I recommend checking out Don Norman and Robert Vergan?’s excellent white paper “Incremental and Radical Innova?on: Design Research versus Technology and Meaning Change” hXp://www.jnd.org/dn.mss/incremental_and_radi.html iMac G3 in the 1990’s is great example of disrup?ve innova?on -‐ it changed what it meant to own a computer. Then they did it again in 2008 with iPhone. I was working on mobile soNware products at the ?me, and remember it clearly. A lot of people though “telephony is really hard, there’s no way Apple will get this right”, but they were wrong, and what it means to have a truly ‘smart’ phone changed drama?cally. lately, it’s Apple Wrist Watch that we’re hearing about.

DISRUPTIVE INNOVATION LATERAL INNOVATION INCREMENTAL INNOVATION First, let’s describe what
we actually mean by ‘innova?on’, with some examples. This is by no means the only way to categorise innova?on, but you’ve got to start somewhere! ‘Incremental’ is characterised by small ongoing changes oNen at the micro-‐level to collec1vely improve an exis1ng product. Perhaps you could think of it in terms of op1misa1on of core products. Large enterprises are preXy good at this, aNer all, 100% of their revenue typically comes from these core products, so there’s strong mo?va?on to invest here. Typically, 70% of innova?on investment is a good benchmark. <iOS> Ongoing changes, all the ?me. iO7 has just been announced. ‘Lateral’ I like to think of lateral innova?on as the modifica1on of an exis1ng product or capability in order to create new revenue streams or reach new markets. Riskier, higher chance of failure, but it usually occurs on top of exis?ng assets and business models -‐ so addi?onal investment there is somewhat limited, and it’s usually possible to use research to minimise risk. 20% of investment is a good target here. <low cost iPod touch> Dropped a few features (rear facing camera) and some different materials to make it cheaper. Now affordable for a previously unreached market. ‘Disrup1ve’ This kind of innova?on is typically driven by big breakthroughs in technology and/or a significant change in meaning to acquire or interact with a given object or product. If you want to dig a liXle deeper about what I mean here, I recommend checking out Don Norman and Robert Vergan?’s excellent white paper “Incremental and Radical Innova?on: Design Research versus Technology and Meaning Change” hXp://www.jnd.org/dn.mss/incremental_and_radi.html iMac G3 in the 1990’s is great example of disrup?ve innova?on -‐ it changed what it meant to own a computer. Then they did it again in 2008 with iPhone. I was working on mobile soNware products at the ?me, and remember it clearly. A lot of people though “telephony is really hard, there’s no way Apple will get this right”, but they were wrong, and what it means to have a truly ‘smart’ phone changed drama?cally. lately, it’s Apple Wrist Watch that we’re hearing about.

DISRUPTIVE INNOVATION LATERAL INNOVATION INCREMENTAL INNOVATION 2008 Let’s look at
a similar example from Google. search algorithms, for over a decade now. GSA Enterprise Search. They’ve taken all of this indexing and search know-‐how and paired it with some dedicated hardware to make it possible for large business to have a Google-‐like experience with their own data. Android OS is a good example of disrup?ve innova?on, having a signiﬁcant impact on the mobile compu?ng. More recently, we’re hearing things about a driverless car, which might represent their next disrup?ve innova?on. Anyway, these big companies that are famous for innova?ng probably aren’t much like the organisa?ons we all work with day-‐to-‐day So the ques?on remains, how can we encourage innova?on and entrepreneurial behaviours from within ‘everyday’ companies

DISRUPTIVE INNOVATION LATERAL INNOVATION INCREMENTAL INNOVATION Let’s look at a
similar example from Google. search algorithms, for over a decade now. GSA Enterprise Search. They’ve taken all of this indexing and search know-‐how and paired it with some dedicated hardware to make it possible for large business to have a Google-‐like experience with their own data. Android OS is a good example of disrup?ve innova?on, having a signiﬁcant impact on the mobile compu?ng. More recently, we’re hearing things about a driverless car, which might represent their next disrup?ve innova?on. Anyway, these big companies that are famous for innova?ng probably aren’t much like the organisa?ons we all work with day-‐to-‐day So the ques?on remains, how can we encourage innova?on and entrepreneurial behaviours from within ‘everyday’ companies

So how do these big companies encourage innova?on? Most people
are more concerned with just doing their job. They get mixed messages from management – they have to maintain produc?vity and yet at the same ?me they have to demonstrate crea?ve new ways of doing things. You actually can’t do both at the same ?me. KPIs and rigid planning of deliverables are counter produc?ve -‐ the idea?on process has more in common with play than structured work create an environment that is forgiving, relaxed and conducive to crea?ve thinking within teams encourage people to exercise both their crea?ve skills and analy?c judgement. -‐ 3M and google tackle this challenge by giving their people a percentage of paid work hours to hatch new ideas. It’s how the post-‐it note was invented and has helped fuel 3M’s 22,800 patents. 3M’s 15% programs was launched in 1948 – in post war America, 3M understood the impera?ve to innovate or die. Other companies have embraced the FedEx day, Ship it days or hack days If companies are serious about fostering a culture of entrapreneurship – then a percentage of working hours must be devoted to discovery and experimenta?on. -‐ In addi1on to giving employees 1me -‐ You need to encourage certain behaviours

core elements of crea?ve thinking Regardless of what logis?cs
you employ to provide ?me for your people to ?nker with ideas, you also need to develop and internal culture that encourages these behaviours. For Toyota it was walking the shop ﬂoor and asking ques?ons. -‐ experience the customer facing roles, through sisng in the call centre or working for a week in the shop front But you also need to follow through with an innova?on framework that supports this culture of observa?on, ques?oning and experimenta?on.

9 And that frame work includes the following concepts: Divergent
thinking -‐ to support discovery and ques?oning and idea genera?on Emergent thinking -‐ facilita?ng the analysis and organisa?on of ideas into new themes, concepts and hypothesese Convergent thinking -‐ to encourage the elimina?on of bad ideas and the valida?on and evolu?on of good ideas

★Accelerated feedback and validation ★Replace customer proxy... with customer insight
+ validation customer focussed ★A new way of discovering fresh ideas Lastminute.com case study from Jonny Schneider. Mobile web-app product improvement with Lean UX

What did we do, then? Well... we changed a few
things about how product development and design was happening. Lastminute.com weren’t doing anything wrong. In fact they were doing a whole lot of right. They were commiXed to user tes1ng, they had sound engineering prac?ces, and really smart people steering the ship, all based on customer insights and data. But we really wanted to get further inside customer’s heads, and explore ideas from the inside out. Most of all, we wanted to see where this would take us.

12 go and ask / go and see First step
-‐ Go and see. Or in this case -‐ “go and ask” So, 700 high-‐value customers were told that we’d like to design the mobile product just for them, and asked would they mind helping do that. About 100 said yes. Over a week, those customers were invited to breakfast interviews, in groups of around 10-‐15. These were NOT focus groups! We just asked them what they wanted -‐ what ideas did they have, for the kind of product they’d like to use, and facilitated simple games to help s?mulate crea1ve thinking.

What did we do, then? [1 minute video clip] Full
case study http://www.thoughtworks.com/clients/lastminute

14 The result was about 80 unique ideas, related to
all parts of the lastminute.com experience All the way from inspira?on to travel, right through to sharing via social media aNer the trip is complete. Now What? What do we do with these ideas, and how do we make sense of which ones are good, bad or ugly?

15 You will never ﬁnd anything, unless you’re looking for
something. - Dave Gray This is Dave Gray, he wrote a book called Game Storming which includes a stack of excellent exercises and methods for facilita?ng crea?ve thinking sessions with stakeholders or customers. I use this all the ?me -‐ it’s a great source of inspira1on for planning and facilita?ng design workshops. Dave talks a lot about Divergence, Emergence and Convergence that we men?oned earlier. During a webcast I once watched, he said this... which I think is really profound. Encouraging emergence is great because some?mes, ideas and solu?ons we discover when exploring something else, turn out to be the most valuable ones. So we wanted to encourage emergence, and what we came up with is what we called the Pop-‐Up Design Lab -‐ where we setup shop inside a hotel and brought the customers right into the design process. Let’s take a look at what that was like.

16 Image hXp://bit.ly/10eqhxV Image hXp://bit.ly/10epX25 Image hXp://bit.ly/12HUerx Image hXp://bit.ly/13ZWo1u As
you saw, there was quite a bit going on there. Let’s take a closer look at what was actually happening on the ground. Go and See -‐ ask, observe. Collect data, collect ideas Co Design -‐ Lesng go of the design is probably the hardest part... for designers One dis?nc?on here, this doesn’t at all mean that “everyone is a designer”, and to just ‘let go’ en?rely. Actually, facilita?ng design with people that aren’t familiar with design thinking can be extremely hard. In co-‐design, the role of designer is that of facilitator. It’s not about ‘crowd sourcing’ or ‘group think’, it’s about on-‐the-‐spot synthesis led by a designer, and collabora?on to explore ideas inside the heads of other people. KJ Analysis -‐ This need not be more than arranging data into meaningful groups. There’s no need to solve anything yet, your just looking for paXerns and themes. In qualita?ve research, some would call this axial coding, or second level coding. It’s where you move from ‘just data’ to star?ng to make connec?ons and rela?onships in order to make meaning from the data. There’s a few diﬀerent approaches to this -‐ I like Jared Spool’s approach hXp://www.uie.com/ar?cles/kj_technique/ Prototyping -‐ Validate ideas the quickest and cheapest way you can. Change direc?on if you need to.

16 co-design (emergent) ★Let go of the design ★Explore with
customers ★Sketch collaboratively KJ Analysis (convergent) ★‘Affinity Diagramming’ ★Make connections ★Identify themes Prototyping (convergent) ★ Construct hypotheses based on insights ★Explore in low fidelity ★Test your hypothesis with customers go and see (divergent) Image hXp://bit.ly/10eqhxV Image hXp://bit.ly/10epX25 Image hXp://bit.ly/12HUerx Image hXp://bit.ly/13ZWo1u As you saw, there was quite a bit going on there. Let’s take a closer look at what was actually happening on the ground. Go and See -‐ ask, observe. Collect data, collect ideas Co Design -‐ Lesng go of the design is probably the hardest part... for designers One dis?nc?on here, this doesn’t at all mean that “everyone is a designer”, and to just ‘let go’ en?rely. Actually, facilita?ng design with people that aren’t familiar with design thinking can be extremely hard. In co-‐design, the role of designer is that of facilitator. It’s not about ‘crowd sourcing’ or ‘group think’, it’s about on-‐the-‐spot synthesis led by a designer, and collabora?on to explore ideas inside the heads of other people. KJ Analysis -‐ This need not be more than arranging data into meaningful groups. There’s no need to solve anything yet, your just looking for paXerns and themes. In qualita?ve research, some would call this axial coding, or second level coding. It’s where you move from ‘just data’ to star?ng to make connec?ons and rela?onships in order to make meaning from the data. There’s a few different approaches to this -‐ I like Jared Spool’s approach hXp://www.uie.com/ar?cles/kj_technique/ Prototyping -‐ Validate ideas the quickest and cheapest way you can. Change direc?on if you need to.

17 And, was it successful? Sure it was. The
headline result is that conversions from mobile devices doubled following this release. Let’s hear some more from Kate about a project she’s been involved with recently.

A Superannua?on Story – at Suncorp Case study from Kate
Linton.

One in ﬁve feel ‘ashamed’ or ‘dumb’ 58% worry about
being ﬁnancially exposed 43% feel ‘powerless’

Around 1 in 2 Australians worry about whether they will
have enough to retire on Almost 1 in 2 ﬁnd super complicated More than 1 in 4 have no idea what their super balance is

Super is complicated Break it down into simple enjoyable steps
I’ll never have enough to retire Show that small actions will aﬀect their future I get no beneﬁts from my super Provide immediate rewards to positive actions

30 Learning to do our own user testing

Points contribute to your score

Quest - to build your home

Badges, role-play, unfolding story

Unpredictable reinforcement

Real-world rewards

Behavioural change & ﬁnancial literacy

Removed some of the game mechanics

House metaphor sneaks back in...

What’s with the points?

Account Crea?on Supply TFN Tell Employer Ini?ate Rollover Update Beneﬁciaries
Origina1on 2 weeks 1 year 2 years 3 years Lifestyle Planning Download Annual Statement Transac?on History Transac?on check-‐in Re?rement Planning Lifestyle Plan Re?reme 1 (Logins – Not shown) 3 5 10 20 50 points Points to move your status A journey unfolds, one step at a time

48 DIVERGENCE So, in summary, here are some techniques that
will help fuel your divergent thinking and idea?on process... At the heart of the discovery process is the principle of Genchi gembutsu -‐ Go and talk to your customers -‐ develop your empathy and ﬁnd the necessity in their lives -‐ include some face to face @me alongside your quan@ta@ve research

49 make space for emergence, Remember what dave says -‐
“you’ll never ﬁnd anything, unless you’re looking for something” Be willing to explore tangents. Keep it loose. Encourage crea?ve thinking and co-‐design with your customers -‐ don’t be afraid to involve them early on -‐ get them to draw their ideas

50 CONVERGENCE Key to successful idea?on ac?vi?es is the prac?ce
of convergence -‐ agreeing as a team on the ideas you believe will work Every brainstorming ac?vity you do as a team needs to be closed with an agreed approach and ideas to move forward with and, here are some techniques that will help fuel your convergent thinking process... -‐ user tes@ng -‐ Pivot when you need to -‐ vo@ng -‐ A/B tes@ng

The Intrapreneur's Playground - Agile Australia 2013

The Intrapreneur's Playground - Agile Australia 2013

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