My slides from JCON 2017. What is innovation and how innovation can be "created". What happens if organizations fail to be innovative?

1. BASEL BERN BRUGG DÜSSELDORF FRANKFURT A.M. FREIBURG I.BR. GENEVA
HAMBURG COPENHAGEN LAUSANNE MUNICH STUTTGART VIENNA ZURICH
Anatole Tresch, Principal Consultant
Disruption is Change is Future
@atsticks

2. About me...
Open Source Enthusiast
JCP Expert Group Member
Apache PPMC Member
Consultant, Trainer, Software Architect
Oracle Star Spec Lead
Contact: anatole.tresch@trivadis.com
Blog: http://maketechsimple.wordpress.com
Slideshare: http://www.slideshare.net/anatoletresch
Twitter: @atsticks

3. Agenda
• Innovation
• Disruptive Innovation
• How about the IT industry ?

5. Self sturring mug

6. Balcony Bridge Planters

7. Laser Keyboard

8. 8
What is innovation?

9. Source: Organisation for Economic Co-operation and Development (OECD) manual
What is Innovation?
• Production or adoption, assimilation, and exploitation of a
value-added novelty in economic and social spheres
• Renewal and enlargement of products, services, and markets
• Development of new methods of production
• Establishment of new management systems
• It can be both: a process and an outcome

10. Innovation can be a catalyst to growth, e.g. Silicon Valley
Changes in efficiency, productivity, quality, competitiveness, and finally market
share.
Innovation is a function of entrepreneurship.
Innovation is a Key to future success in business.
What is Innovation?

11. How Innovation can be „created“?

12. What are possible Sources of Innovation
• Result of a focused effort (manufactured innovation):
• Invention → Innovation → Diffusion
(https://en.wikipedia.org/wiki/Linear_model_of_innovation)
• Informal Innovation
• Free Innovation

13. Manufactured Innovation

14. Informal Innovation
Work climate favorable to innovation
• Quarterly "ShipIt Days" (Attlassian)
• Innovation Time Off (Google)
• Innovation Weeks (Microsoft)
• 4-1 Working Models

15. „An agent (person or company)
develops an innovation for their
own use because existing
products do not meet their
needs“
End-User Innovation

16. Source: http://blog.hypeinnovation.com/what-is-free-
innovation
Pros:
• Free innovators pioneer.
• Associated with often diverse and heterogeneous communities.
Challenges:
• Producer-led model may enable significant resources around moving to scale.
• Innovator‘s lack of motivation to spread their ideas beyond their own application?
Pros of Free Innovation

17. 1
7
What is disruptive innovation?

18. What is Disruptive Innovation?
Disruptive – or destroying – innovation are new products,
services or business models, that erase existing ones.

19. From Cellphone to Smartphone …

20. From Carriage to Automobile …

21. Fro Sailingship to Steamship …

22. From Tube Amplifier to Transistor Amplifier …

23. From Analogue to Digital Photography …

24. From Cathode Ray Tube (CRT) to Flat Screen …

25. What if I fail to be „innovative“?

26. Innovation Failure: Xerox
1959: the Xerox 914 photocopier revolutionized the
document-copying industry.
PARC (or the Palo Alto Research Center):
▪ Smalltalk Language (base for many
object-oriented languages)
▪ Laser printer
▪ a windows/icon-based UI (WYSIWYG) + Mouse pointer
▪ Laptop
▪ Ethernet
➡ Xerox management did nothing with their cutting-edge
inventions and continued to profit off of the 914 photocopier!

27. Innovation Failure: Blackberry
There was a time when the primary mode of business communication was BBM
2007 > 50% phones in US were BBM
June 29, 2007 the iPhone was released.
Blackberry ignored touch screen based technology
IPhone/Apple
▪ dominating the consumer market
▪ slowly promoting Bring Your Own Device (BYOD) standards
within companies
Currently, Blackberry has 0.8% of the Smartphone market share (IDC)

28. Innovation Failure: Yahoo
• 2005: #1 online advertising (21% of the market).
• Then Yahoo outsourced search engine to MS Bing
Missed deals:
• 2002: buy Google for $5 billion dollars!
• Buy DoubleClick (leader for ads throughout the late ‘90s and early 2000’s)
→ finally bought by Google.
• 2006: buy Facebook for $1 billion…
→ Today, Yahoo struggles maintain #4 position behind Google, Facebook and
Microsoft.

29. Innovation Failure: Polaroid
Polaroid: Innovative brand that brought instant photography
Kodak: during the 20th century, held a dominant position in
photographic film => the “Kodak moment”
Both Polaroid & Kodak didn’t realize that digital cameras were
going to be the way of the future.
• Film photography nowadays a niche field at best (really?!)
• Polaroid filed for bankruptcy in 2001 & 2008
• Kodak filed for bankruptcy in 2012
Polaroid brand bought by Impossible Project in 2017
• renamed to Polaroid Originals in Sep 2017
• Revival of Instant Film/Camera

30. What if I fail to be „innovative“?

32. Why companies struggle
with disruptive innovations?

33. Why companies struggle with disruptive innovations?
• New technologies often fail at the beginning
• Innovation do no pay off
• A new business model is required
• Existing Key Performance Indicators fail
• The new stuff „competes“ with the existing
• Old and new require both resources
• Company‘s Culture fails with radical innovations

34. But there is more …

35. 35

36. 36

37. How about the
IT Industry?

38. The Digital Customer

39. Innovations in IT
• Open Source Software
• Cloud and distributed processing
• Container, Container Orchestration
• Smart-Phones & Pads
• IoT & Edge
• DevOps
• Stream Processing / Complex Event Processing
• Microservices
• Blockchain

40. Innovation in IT: is there a Pattern?

41. Bussiness Value ?
41

42. Self check…
Digital Maturity Assessment: https://assessments.trivadis.com/dma/
How long it takes to install a new server hardware?
How long you need to get software in production? How many people are involved?
What happens in case of a HW failure?
How long you need to build a 15 screen mobile app with business reporting and
backend integration?
Do you know what serverless computing can do for you?
Do you really know your data safety regulations?
42

43. 8mo Payback on investment
40% Infrastructure savings
530% ROI over 5 years
66% Faster app delivery
20% IT stuff productivity
improvement
$1.3M Average annual business
benefits per 100 developers
Source: The Business Value of Red Hat OpenShift, IDC, September 2016
Some Numbers: DevOps with K8S/Openshift

44. Source: https://www.gartner.com/imagesrv/cio/pdf/cio_agenda_insights_2016.pdf
A Columbia University Study
suggested that with 9000
autonomous cars, Uber could
 Replace every taxi in NY City
 Avg of 36 sec to wait for a ride
 With costs $0.50 per mile.
One last example…

45. 45

46. Disruption ist Veränderung ist Zukunft
• Digital Maturity Assessment: https://assessments.trivadis.com/dma/
• https://news.trivadis.com/blog-en/innovation-and-digital-transformation-an-interview-with-
nigel-barlow
• Nigel Barlow: http://www.nigelbarlow.com/

47. Disruption ist Veränderung ist Zukunft
Anatole Tresch
Principal Consultant
anatole.tresch@trivadis.com
@atsticks maketechsimple.wordpress.com