5.2
Reactive Innovation
Pro-active Innovation
Seeking the next innovation
Reacting to an event
Focused on existing technology and customers,
Too slow to react to the changes in the market places
Missed the opportunities to create new products and services to exploit the needs of an evolving customer.
What happened to Nokia, Kodak ?
Seizing the initiative
Creating new products and processes
High on risk and high on reward
Factors influencing the company approach to innovation
The company structure
The market in which it operate
Company's acceptance to innovation and change
Corporate culture and staff mindsets
Risk
What is the best approach?
Does this approach to innovation best serve the company needs?
Strong focus on research
Firs-mover advantage
Radical approach, seeking a breakthrough that change nature of products and services.
Incremental approach
Seeking minor improvements that lead to improved performance of product and services
Low level of risk
Knowns are way more than the unknowns using existing infrastructure and technology in a known market
Advantages of Reactive incremental
Improves competitiveness
Familiarity with the target market
Lower costs than radical innovations
Cost-effective approach to innovation
Advantages of Pro-active radical
Pro-active radical innovation must inbound novelty through technology or design features.
Must not be too radical and too long to develop
Gives an edge to dominate the market
Creating new markets
Approaches (Processes) to innovation
Agile Development
Waterfall
(Traditional or over the wall)
The innovation process is a very complex one, there is no one agreed approach that guarantees success.
Focuses on delivering value to customers
Mitigates risks constant communication with the customers for feedback
Iterative in sharing progress with customers to validate each design or decision made.
Iterate based on the minimum viable product
It is the newest version of a product that allows the team to collect the maximum amount of information needed to determine what works and what does not
Agile core values
Prioritize individuals and interactions over tools and processes
Focus on working prototypes rather than paperwork
Emphasizes customer engagement and co-creation of a solution, putting the customer at the center of every decision
Change will occur during the design process
Stakeholders
Customers
Business owners
Agile leadership team
Phases
Planning Phase
Sprint Phase
Review Phase
Brief is created
Resources are allocated
Each sprint cycle is composed of, Design, Develop, Integrate, Test, Deploy where each cycle is an iteration builds on and incrementally improve the previous one as in sprint 1, sprint 2 and so on
Feedback is sought for future improvements
Agile approach works best with heavyweight and autonomous teams working on a path-creation innovation
Linear approach and sequential
Appropriate for functional teams with deterministic innovation
Stages
Analyze
Design
Construct
Test
Deploy
Maintain
Advantages
Drawbacks
Ability to plan work with high degrees of certainties
Measurable progress
Teams can work simultaneously
Time abundance for development stage
Lack of communication between teams
Lack of customer engagement