Uber, AirBnB, Wayz, SnapScan, WhatsApp, SnapChat… Those are some of the early winners in the wave digital change that’s sweeping the world. Those companies have innovated further, quicker than competitors and they’ve done it so well that the services they deliver seem “obvious” in hindsight. But to compete with them, and whatever comes next, your organisation is going to have to do something even more awesome.
It might not be very pretty.
Leading an organisation through the realities of innovation is hard. Organisations are typically well adapted to doing what they do, they way they’ve always done it. Real, transformative innovation asks them to leave that behind. It feels equal parts crazy and terrifying. It needs focus, nerve, and yet also heaps of humility.
It helps if you know where you are, secure the time and support you need to succeed, use good ideation methods and conduct proper experiments.
In this 90 minute session we’ll draw on techniques from the world of lean startup and design thinking and look at:
- Some words you can use to get managers to tackle innovation
- How to structure and negotiate the right space for innovation to succeed in your organisation
- Techniques to maximise the chances of generating amazing ideas
- How to deal with differences of opinion and prioritise the right choices
- How to think and talk about experiments and failure
7. INOURUTILITYBELT
§ Words to make innovation happen
§ Organising a place for innovation
§ Structure and process so you know
where you are
§ Mapping the customer experiences
§ Ideation techniques
§ Experimentation with hypotheses
§ Prioritisation with impact maps
12. NOTSEEINGDISRUPTIONYET?
Digital Banking Disruptors Will Not Grab Much
Market Share . . . Yet
Make no mistake, digital disruption is coming to banking,
and it will reshape the industry in every country.
But new entrants and disruptors will not grab major market
share from established banks in 2015. […] digital teams
should use 2015 to innovate and get ahead of the curve.
Forrester
16. ONEPERCENTMEANSHALFWAYDONE
Ray Kurzweil: “That means we’re halfway done.”
The amount sequenced was doubling every year.
The project was completed in 2001, early and
under budget.
696 years earlier than expected by the experts.
18. MASSIVETRANSFORMATIVEPURPOSE
TED: “Ideas worth spreading.”
Google: “Organize the world’s information.”
X Prize Foundation: “Bring about radical breakthroughs for
the benefit of humanity.”
Quirky: “Make invention accessible.”
Singularity University: “Positively impact one billion people.”
Drive outward-focussed, exponential thinking.
Rally crowds, fan, teams and talent.
19. Machine learning Genomics
Biometrics Internet of Things
Blockchain
Robotics3D Printing
Drones
VR
Wearables Connected Cars
Mobile
Analytics
Social
Cloud
Web
Content
EXPONENTIALTECHNOLOGIES
Super Disruptors… Exponential Disruptors…
20.
21. Kodak invented the CCD: key to digital photography.
In 1981, they investigated whether this would turn photography on its
head.
THEMOSTDANGEROUSASSUMPTION?
During the 1980s…
• The quality of prints from electronic images will not be
generally acceptable to consumers as replacement for
prints based on the science of photography
• The consumer’s desire to handle, display, and
distribute prints cannot be replaced by electronic
display devices.
• Electronic systems (camera and viewing input device
for TV) will not be low enough in price to have
widespread appeal.
KODAKWASRIGHT**FOR15YEARS
24. PITCH:3OPPORTUNITIESFORGAIN
• Operate more efficiently, to maintain margin.
• Provide an excellent, joined up, multi-channel
service experience, to gain new customers
and extend customer LTV.
• Create and grow new markets and products
that match changing customer needs and
expectations.
29. “
Scott Berkun,
The myths of innovation
All you need is the ability to make
things that are good consistently,
since few companies do.
DOTHINGSBETTER
30. “
A corporation is a permanent organisation designed to
execute a repeatable and scalable business model.
Innovation teams and startups are temporary organisations
designed to search for a repeatable and scalable business
model.
Steve Blank
The godfather of lean innovation
BUT10XINNOVATIONNEEDSADIFFERENTM.O.
31. “Your organisation’s world-class capabilities in brand, supply chain,
distribution, sales and financial metrics are all tailored to execute
the existing business model, not to help search for new ones.
The resources and capabilities optimised for execution
interfere with the processes needed to search for a new
business model.
Steve Blank
The godfather of lean innovation
32.
33. ““In large organisations, just one out of fifty managers
can resist an idea—and in doing so, kill it.
By comparison, if just one of fifty investors likes a
startup, it’s off to the races.”
Robert Goldberg
VC, Founder IdeaLab, Senior exec Zynga
LARGEORGANISATIONS:“NO”MACHINES
37. DISRUPTIONINLARGERORGANISATIONS
• Create organisations at the edge of yours, to disrupt other markets.
• Create internal and external organisations to attack the mothership and each other.
• Create a lab for breakthrough, moonshot technologies at a budget price.
38. “
ADVANCED:AMAZON’SINSTITUTIONALYES
If you’re a manager at Amazon and a subordinate comes to you with a
great idea, your default answer must be YES.
If you want to say no, you are required to write a two-page thesis
explaining why it’s a bad idea.
In other words, Amazon has increased the friction entailed in saying no,
resulting in more ideas being tested (and hence implemented) throughout
the company.
Salim Ismail on an idea instituted by
CEO Jeff Bezos and CTO Werner Vogels
39. “
CASESTUDY:BBVA
Creating a truly groundbreaking, 'customer-centric,'
rapid, simple and efficient model of interaction, in
which the customer receives the best his bank has to
offer, requires constant efforts to innovate in both
the organisational and cultural arena and in the
technological field.
Francisco González,
BBVA CEO and chairman since 2001
40. BBVA’SINNOVATIONAPPROACH
• Steering committee sets priorities and accepts applications for
funding
• Agile throughout the bank: planning and delivery.
• Build an architecture that facilitates rapid front end dev/release
cycles. Strong services layer needed.
• Customer metrics and adoption for each digital innovation.
• Promote the right culture: gather ideas from everyone, deliver
change with agile, empower with the right tools, link collaboration
and innovation to staff incentives.
• Create robust redundancy with: Employee involvement, academic
and agency ties, innovation centre, open talent incubator,
hackathons, beta community, venture fund, acquisitions.
• Champion innovation with innovation centre, blogs, magazines,
competitions…
46. • Their own/organisational hallucination.
• Adding complexity: “And we could also…”
• Forgetting customer contact and even analytics.
DON’TLISTENTOHIPPOS
49. Team vision and discipline
over individuals and interactions
over processes and tools
Validated learning
over working software
over comprehensive documentation
Customer discovery
over customer collaboration
over contract negotiation
Initiating change
over responding to change
over following a plan
BEYONDTHEAGILEMANIFESTO
— Kent beck, 2011
50. A LEANINNOVATIONPROCESS
Stage 1 Stage 2 Stage 3
Select the right problems
to solve, and solve them
elegantly.
Find the right concept,
structure, workflow,
incentives.
Roll out to more users,
and roll out extended
features.
PROBLEM/SOLUTIONFIT PRODUCTMARKETFIT SCALEANDEXTENDPROBLEMDISCOVERY
Stage 0
Understand root causes
and key user needs
behaviours and
motivations.
Human-centred design
Lean startup
Lean UX
51. “LEAN”ACTUALLYMEANS…
• Deliver small batches quickly. Everyone can perceive
progress, cause and effect when they happen quickly.
• Eliminate waste. Don’t make or do things that will not get
used in the process of delivering value to customers.
• Learn and improve. Make sure that you inspect the impact
of your steps, through measurement and observation.
• Empower the team. The people close to the problem are the
best positioned to understand and solve it.
• Build quality in. Focussing on quality ends up delivering
results faster.
• See the whole. Considering just one part of a system in
isolation will yield unpredictable results.
53. LEANINNOVATIONACTIVITIES
Stage 1 Stage 2 Stage 3
Select the right problems to
solve, and solve them elegantly
Find the right concept,
structure, workflow, incentives.
Roll out to more users, and roll
out extended features
PROBLEM/SOLUTIONFIT PRODUCTMARKETFIT SCALEANDEXTENDPROBLEMDISCOVERY
Stage 0
Understand root causes and
key user needs behaviours and
motivations
Software: MVP experiments.
User-tests.Observe users, analyse
patterns, identify problems.
Mock-ups.
Technical PoCs.
Pirate metrics. User tests.
Production software releases.
Pirate metrics. User tests.
Business metrics.
Measure
Build
Maps and models
Learn
Solutions that are worth it. Who wants it, in what form
and how much they’ll pay.
Detail: Features, forms, tweaks
that work .
Problems and opportunities.
55. MVPEXPERIMENTS
F2F/121
• Lab test a mockup
• Concierge
• Wizard of Oz
• Storyboard
• Prototype spaces
• Catalogue/data sheet/home page
Quant/online
• Call to action
• Ad tracking
• Video and link
• Split testing
60. Stage 2 Stage 3
Find the right concept,
structure, workflow,
incentives.
Roll out to more users,
and roll out extended
features.
PRODUCTMARKETFIT SCALEANDEXTEND
Stage 1
Select the right problems
to solve, and solve them
elegantly.
PROBLEM/SOLUTIONFITPROBLEMDISCOVERY
Stage 0
Understand root causes
and key user needs
behaviours and
motivations.
STAGES0AND1
61. “There are no facts inside the building. The facts
exist outside the building.
Get out of the building.
Steve Blank,
Customer development guru
63. 4KINDSOFJOURNEYMAPPING
Day in the life: Understand the full breadth of customer
activity in your target space. Discover needs no-one is
addressing. Great for innovation.
As-is customer experience: Map the current customer
experiencer your organisation offers. Spot the
optimisations, and maybe innovations.
Customer experience vision: Map the experience you
want to offer. Great for ideation and alignment.
Service blueprint: Understand what it will take to
deliver the experience you want to, with backstage
people, process and technology. Great for programme
management and scoping.
65. Journey model
Journey stages
Search engines
Google
Social media
Facebook
Referrals
TripAdvisor
Friends
Staff
Public relations
TV commercials
Radio
Questions
Where do I want to go?
Who can I trust?
Where can go to get a beach?
Discover> Explore> Decision> Book / P>
Evita
The family
mom
Brian & Sally
The miserly
couple
Steve
The business
traveller
Overall boo
Questions
What do I do with this?
Where do I get customers number?
Do I add 15% onto my rate?
How do I reply to this quote?
Will the customer get it if I apply to this email?
How do I block this out in calendar?
Why is the customer asking for more people than I can
accommodate?
Where will this go?
Do I have to complete my profile now?
This is confusing who can help me?
Do I have to list each establishment
one by one?
I only have hard copy photos?
Do you have a photographer?
Does someone come to vet the place?
Can I specify race or gay etc?
Now what?
Can I change my login details?
How do I find out my GPS location?
Patricia
Conservative
B&B owner
Brad
Live fast, die
young agent
Walter
Know it all retired
businessman
How does it work?
What will I need?
How long will it take?
Is it safe?
Is the person coming to stay legit?
Do I have to accept all quotes?
What is a live booking?
How do I update rates and availability?
Why doesn't it look like I thought it would?
Journey stages Discover> Evaluate> Register/ List> Live> Book/>Decision>
Search engines
Google
Social media
Facebook
Public relations
Adverts
Sales calls
Request a quote
Book now
List your
establishment
Profile Vetted
Establishment
page
Profile not complete
Declined
I want to see interesting pictures.
Where can I go that has hot weather right now?
What has a pool?
Can I imagine myself in this place?
Is it safe?
Gather>
Overall decision: Request a quote: Quote received:
Inspiration
Holiday type
Vibe
Distance from me
Mountain
Forrest
Sea (beach)
Remote
Location
details
List of
Establishments
Photos
Reviews
Price range
Availability
# people it sleeps
# of beds in rooms
Location
Features
Establishment
detail page
Recently Viewed
( Wish list )
Quote received
Quote needed
Book now
Submit quote
Ignore quote
View other EST…
Cost
Benefits
Contract
Commitment
Will it work with what I have got?
What will I need
Reviews
Who will give me the right price?
I am going to Langebaan where can I stay?
Distance?
Where can I go this weekend?
Where can I get a good deal?
What accommodation specials are available?
What are the benefits to using SafariNow?
What is available in my area?
Is there wifi?
Where can I go to be near a river?
What is available two hours drive from me?
What is like Montagu?
What is happening in Ballito?
What can I afford?
Who can give me the best price?
What do other people think?
How does it look?
Which one looks the nicest?
What is the view like?
Does it give me food?
Can my kids be entertained while I chill
with my man?
Can I take my dog?
Can I take my children?
Which one looks the nicest?
How long will this take?
Is it the price right?
Is it near the beach?
What are people saying about this place?
Recent reviews?
Is the person reviewing like me?
Why can I not see a price?
Can I get it cheeper direct?
Does it have wifi?
Can I book right now?
Is this place real?
How quickly will they get back to me?
How do I know what my room
preference is?
Do I have to select a room?
Who is this quote going to?
Why must I enter my contact details?
I just want to know availability?
Where is my quote - not immediate?
Why should I book with SafariNow?
What do I do now?
How do I pay?
Have they answered all my
questions?
I do not understand the quote?
What does the total mean?
Why is this different to online?
What does it include?
Why have you not answered my
questions?
Is this the actual price?
What room am I getting?
How does this compare to
other quotes?
What currency is this quote in?
What is the deposit?
Is my card sa
When is the
Why I am giv
guaranteed
How can I tr
Is my bookin
Why did you
space?
How do I kn
How else can
Why is my b
Is my bookin
Will it work with my systems?
How much does it cost?
How long will it take?
What do other establishments think?
Are they reputable?
How will I get paid?
Why do I need to do this?
Do you really need all the info?
What do you want photos of - establishment
and specifics (rooms)?
Why can I not see my page now?
Why do you not offer sliding scale?
Why can I not just list right away?
Why do you require municipal documents?
Do I have to complete my profile now?
How long is this going to take?
Can somebody else do this for me?
Can you post the photos for me?
Can I upload a photo from my phone?
Why can I not see my page now?
Other: I haven’t put my establishment up why
is it on your site ?
Why should I update rates and availability?
Why doesn't it look like I thought it would?
Can somebody else update my rates and
availability for me?
Why is this so time consuming?
Why doesn't it look like I thought it would?
Why can’t I edit my description?
Why have you changed my description?
Why is that photo first?
How much are they going to charge me?
Will the customer get it if I apply to this email?
Why am I getting an enquiry for dates that are already
booked?
Why can I not contact customer directly?
Why does my number not appear?
Can I give a discount?
Who am I sending it to?
I don’t have availability at this listing but I do at another?
I can recommend a place for you?
When am I getting my money?
Please stop smsing me.
Do you block this out in my calendar?
Why should I reply to a quote that I am not accepting?
Other:
I am listed on SafariNow?
I don’t own this anymore how do I cancel it?
How d
Help, w
Can I s
Why is
Why is
Why am
sms’s?
Will th
15% is
Why ar
booked
Accept quote
Decline Quote
Decline
Book now
You ha
book
Accept /
Pseudo real time
Real time
(Eg: fully booked)
Offer something else?
Ignore quote
Send message
Query
Editorial
Pictures
Reviews
List of locations
EndusersEstablishmentManagers/Owners
1
2
3
4 6
5
10
a
ba c
VISION+PERSONAS+ECOSYSTEM
66. JOBSTOBEDONE
A customer job could be:
• The tasks they are trying to perform and complete,
• The problems they are trying to solve,
• Or the needs they are trying to satisfy.
Lift my right finger
Become a fully-
self-actualised
human being
What is the job that a customer is
hiring your product to do?
67. PAINS
Lower-than-expected benefit. “The food was cold when it finally reached us.”
Lower-than-expected easiness. “I can’t get the necessary documents.”
Emotional: “Running at the gym makes me feel so bored.”
Social: “It’s embarrassing to have to ask for directions.”
Negative expectations. “I won’t run it because it will probably mess up my hard drive.”
Things that annoy your customers - and might stop them from taking action.
Benefit - effort - social - emotional - financial.
68. GAINS
Expected and required. “I can make a call on my smartphone.”
Desired. “I wish all my devices would work together seamlessly.”
Unexpected. “I didn’t ever think a touchscreen smart phone linked
to an app store could exist.”
Social. “People would respect me if I drove a BMW.”
Emotional. “I will be happy when I have a puppy to love.”
Benefit - effort - social - emotional - financial.
69. AGREATCUSTOMEREXPERIENCEDELIVERSONTHREELEVELS
Basic expectations
Perform its primary function elegantly, completely and consistently
Power and performance
Deliver new value through new tools & systems
Beauty and enchantment
Enchant customers with beauty, thoughtfulness and care
AKA the Kano Model
70. We feel first, and our thinking is defined by what we feel.
Stylish products and environments are perceived to be:
• More valuable, even when they fail
• More trustworthy and credible
• Easier to use
ENCHANTMENTMAKESPEOPLEENGAGEBETTER
73. PROBLEMDISCOVERY
Stage 0
Understand root causes
and key user needs
behaviours and
motivations.
Stage 2 Stage 3
Find the right concept,
structure, workflow,
incentives.
Roll out to more users,
and roll out extended
features.
PRODUCTMARKETFIT SCALEANDEXTEND
Stage 1
Select the right problems
to solve, and solve them
elegantly.
PROBLEM/SOLUTIONFIT
STAGE1
86. DEMONETISATION
Your business is shown to drivers
approaching.
You decide how much you’re willing to pay
for each view as well as your total monthly
spend.
It’s super simple to set up and see results.
makes games available for free
Candy Crush generates daily revenues of ~$979 000
Source: Singularity University
87. DEMOCRATISATION
3D Printing will democratise the
ability to distribute personalised
production around the planet
Leveraging individuals inputs to
build and influence other
institutions’ potential success
88. Your turn:
Ideate 1: Set up the challenge
Start alone.
Pick a pain or a gain to
tackle (could be a theme or
group of related ones.)
Pick two “easy/appealing”
stim words: one from blue
and one from purple. Then
pick two “unpleasant/
difficult” stim words.
Make a grid. Then stop.
89. Machine learning Predictive analytics
Biometrics Mobile
3D printing Cloud
Genomics Sensors
Blockchain iBeacon
Augmented reality Wearable
Crowd
Dematerialisation
Confidence Personal
Relationship Transparency
Tedium Self service
Timing Efficiency
Delight Trust
Visualised “Free”
90. Your turn:
Ideate 2: Ideate and iterate
Design as many ideas for your grid as you
can in 10 minutes. If stuck, try another
square. “How might we…?”
Pick a partner and share you ideas.
Work together for 2 minutes to add new
ideas for person 1.
Work together for 2 minutes to add new
ideas for person 2.
94. Stage 1
Select the right problems
to solve, and solve them
elegantly.
PROBLEM/SOLUTIONFITPROBLEMDISCOVERY
Stage 0
Understand root causes
and key user needs
behaviours and
motivations.
STAGES2&3
Stage 3
Roll out to more users,
and roll out extended
features.
SCALEANDEXTEND
Stage 2
Find the right concept,
structure, workflow,
incentives.
PRODUCTMARKETFIT
96. IMPACTMAPS
There is often a set of assumptions that are hidden in
the instruction “thou shalt build this particular feature”.
Impact mapping is a great tool for understanding the
value of delivering a particular piece of software.
Gojko Adzic
98. PRIORITISE
Use social proof
stats and stories to
drive action
Make calculator
easier to
understand
Add a video
More
customers
choose to invest
with us
More customers
complete
purchase
Customers
choose to invest
more
Customers
disinvest less
First time
investors
R100m
of customer money
invested
101. In the lab…
• Find this.
• Achieve that without help.
• Explain that correctly, as if to a friend.
But NOT “would you use this?”
DON'TTRYTOMEASUREMENTALSTATE
102. PROBLEM/SOLUTIONFITPROBLEMDISCOVERY
Stage 0
Understand root causes
and key user needs
behaviours and
motivations.
STAGES2AND3
Stage 2
Find the right concept,
structure, workflow,
incentives.
PRODUCTMARKETFIT
Stage 1
Select the right problems
to solve, and solve them
elegantly.
Stage 3
Roll out to more users,
and roll out extended
features.
SCALEANDEXTEND
104. TURNIDEASINTOHYPOTHESES
ABOUTOUTCOMES
We believe that
building this feature
for these people
will achieve this outcome.
We will know this is true when we see
this quantitative measure
AND this qualitative response.
We believe that
building A SOCIAL PROOF PANEL
for NEW, inexperienced investors
will achieve An increase in customer acquisition
from the landing pages.
We will know this is true when we see A 20%
increase in people starting and finishing signup
during the sprint after release AND 50% of users
show A positive response in the user testing.
AMAZON.COM
>60%FAIL
107. 107
MEASURECUSTOMEROUTCOMES
Raw data that tells you the scale of your
operation.
The proportion of your visitors achieving the
goals you want to enable.
Move slowly. Measure products that have
reached scale.
Customer outcome metrics
Scale metrics
Business metrics
Registration rate
Transactions per month
Visits per month
Conversion rate
Referrals rate
Pages viewed
Sales completed
Profit
Revenue
Market share
108. SETAFAILCONDITION
“…We will know we are right when we see a
50% conversion rate.”
What if you saw 49%? 45%? 30%?
Set a fail condition: “…We will know we are
wrong when we see conversion <50%…”
A fail condition is less easy to quibble with.
109. “FAILFASTANDPIVOT”
Fail? We’re not allowed to do that!
Fail means two different things.
Horizon 1 failure: Failure to correctly execute a prescribed
business process. Bad.
Horizon 3 failure: Proving that customers don’t want a certain
thing, is a successful experimental result. Good.
110. MAKETHELEARNINGANDVELOCITY
CLEARFORYOURSTAKEHOLDERS
• Show vivid evidence
• Count the number of experiments conducted
• Show the list of what you’ve learned
• Identify and envision competitive opportunities
• Show hard numbers
…and the funding will keep coming.
www.kalahari.net
Goal Funnel Feb 1, 2011 - Feb 28, 2011
Comparing to: Site
Checkout
35,472 visitors finished | 53.18% funnel conversion rate
64,120
/checkout/pipeline/signin.aspx?Retur 23,282
/checkout/pipeline/signin.aspx?Retur 6,604
/default.aspx
6,069
/checkout/pipeline/newsletter_edit.as 5,390
/page_templates/searchresults.aspx? 2,879
Basket
64,120
47,550 (74%)
proceeded to Vouchers
16,570
(exit)
3,531
/default.aspx
2,160
/checkout/pipeline/xpress_basket.asp 1,149
/page_templates/searchresults.aspx? 856
/checkout/pipeline/xpress_basket.asp 656
252
(entrance)
82
/checkout/pipeline/signin.aspx?Retur 48
/checkout/pipeline/signin.aspx?Retur 41
/checkout/pipeline/xpress_payment_ 16
/checkout/pipeline/xpress_basket_mu 7
Vouchers
47,802
45,685 (96%)
proceeded to Payment
2,117
(exit)
805
/checkout/pipeline/xpress_basket.asp 485
/default.aspx
268
/checkout/help/help.aspx 88
/checkout/pipeline/xpress_vouchers.a 55
268
/checkout/pipeline/signin.aspx?Retur 118
(entrance)
58
/checkout/pipeline/xpress_payment_ 40
/checkout/pipeline/signin.aspx?Retur 9
/default.aspx
4
Payment
45,953
33,409 (73%)
proceeded to Checkout
12,544
(exit)
1,797
/checkout/pipeline/xpress_basket.asp 1,274
/checkout/pipeline/xpress_vouchers.a 807
/default.aspx
576
/checkout/help/help.aspx 506
2,063
/checkout/pipeline/xpress_payment_ 1,546
(entrance)
388
/checkout/help/help.aspx 21
/checkout/pipeline/xpress_vouchers_ 11
/checkout/help/payjar.aspx 11
Checkout
35,472
53.18% funnel conversion rate
1
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