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