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Sustainable innovation - 3 types of work

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Sustainable innovation - 3 types of work

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Most companies know 1 model of management, organization and work.

(A video of this presentation may be found at: https://vimeo.com/146522220

Models like the 3 Horizons model suggest that sustainable business requires to continuously work in at least three different domains of work:
Horizon 1) Generating money from the products / services we offer right now,
Horizon 2) generating new products and services that solve new problems in better was for new people (new customers) and finally
Horizon3) thinking about the unthinkable: which completely new directions can we follow to generate new products and services or which new business models might we serve

It turns out that these three horizons of work each bring with them
completely different tasks and questions to be answered. Towards Horizon 1, operational excellence, precision, quality, repeatability and predictability are required. Towards Horizon 3, none of this really matters, but the task is to find very rough data quick and cheaply very often. In Horizon 1 certainty, unambiguity and clarity rule, in Horizon 3, ambiguity is required, uncertainty simply exists and clarity can not be achieved. In fact, trying to do so, will hinder the new Ideas).

Going further, we can ankles that very different people are happy with the different tasks and conditions in these areas. The pioneer, settler, town planner model by Simon Wardley
helps us understand how to manage between these different conditions.

Most companies know 1 model of management, organization and work.

(A video of this presentation may be found at: https://vimeo.com/146522220

Models like the 3 Horizons model suggest that sustainable business requires to continuously work in at least three different domains of work:
Horizon 1) Generating money from the products / services we offer right now,
Horizon 2) generating new products and services that solve new problems in better was for new people (new customers) and finally
Horizon3) thinking about the unthinkable: which completely new directions can we follow to generate new products and services or which new business models might we serve

It turns out that these three horizons of work each bring with them
completely different tasks and questions to be answered. Towards Horizon 1, operational excellence, precision, quality, repeatability and predictability are required. Towards Horizon 3, none of this really matters, but the task is to find very rough data quick and cheaply very often. In Horizon 1 certainty, unambiguity and clarity rule, in Horizon 3, ambiguity is required, uncertainty simply exists and clarity can not be achieved. In fact, trying to do so, will hinder the new Ideas).

Going further, we can ankles that very different people are happy with the different tasks and conditions in these areas. The pioneer, settler, town planner model by Simon Wardley
helps us understand how to manage between these different conditions.

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Sustainable innovation - 3 types of work

  1. 1. town planners settlers pioneers Sustainable Innovation - 3 Types of Work @markusandrezak @ueberproduct http://www.ueberproduct.de
  2. 2. “The purpose of business is to create and keep a customer.” “The purpose of business is to create and keep a customer.” Peter Drucker
  3. 3. “The purpose of business is to create and keep a customer.” “The purpose of business is to create and keep a customer.” Peter Drucker
  4. 4. (I) How much will it cost / will we earn?
  5. 5. (II) How will the new product look like?
  6. 6. (III) Which new opportunities should we follow & how do we find them?
  7. 7. But also: I want the NEW shit!
  8. 8. Coding Hiring Vision Innovation Compliance Produc- tivity Reliability Infra- structure Security Operations The CTO as decathlete?
  9. 9. Because … being stuck …
  10. 10. or … growth „with the market“
  11. 11. While they want this
  12. 12. “The purpose of business is to create and keep a customer.”
  13. 13. “The purpose of business is to create and keep a customer.” Fashion Third Place Coffee
  14. 14. Understanding the nature of work
  15. 15. 3 Horizons by Baghai, Coley, White Horizon 1 0 - 12 months Horizon 2 12 - 36 months Horizon 3 36 - 72 months Current business Generate today’s cash flow High growth business Today’s growth & tomorrow’s cash flow Options growth Options on furture high growth business
  16. 16. 3 Horizons by Baghai, Coley, White Horizon 1 0 - 12 months Horizon 2 12 - 36 months Horizon 3 36 - 72 months What will we earn? How will the product look like? Which opportunities, how to find?
  17. 17. The Knowledge Funnel by Roger L. Martin
  18. 18. What we’re good at What we suck at
  19. 19. What we’re good at What we suck at imperfect just doing uncertainty perfect, clear talk certainty ambuguity
  20. 20. What we’re good at What we suck at Which opportunities, how to find? What does the prod look like? What does it cost/earn
  21. 21. Evolution Context determines qualities Genesis Custom built Product Utility Uncharted chaotic uncertain unpredictable unstable different exciting future values differentiating Industrialized ordered (linear) known measured stable standard dull low margin essential Model by Simon Wardley
  22. 22. Evolution Context determines qualities Genesis Custom built Product Utility Uncharted chaotic uncertain unpredictable unstable different exciting future values differentiating Industrialized ordered (linear) known measured stable standard dull low margin essential Model by Simon Wardley Which opportunities? How to find? How will the product look like? What will we earn?
  23. 23. A model of how things evolve
  24. 24. Bild Pionierpflanze Zitat Wiki Pioneers arrive first
  25. 25. Bild Busch Zitat Wiki K-strategists take over
  26. 26. Bild Wald Zitat Wiki Until …climax vegetation
  27. 27. Bild Pionier Zitat Wiki Pioneers: Because we can!
  28. 28. Bild Siedler Zitat Wiki Settlers: until we can no longer …
  29. 29. Bild Stadtplaner Zitat Wiki Town planners: when nothing else helps
  30. 30. Pioneers, roaming
  31. 31. nice place
  32. 32. settling
  33. 33. building town
  34. 34. town planners settlers pioneers
  35. 35. Happiness Kaizen market analysis feedback Trend spotting products Type tactics, machiavellian Method Lean, grinding, success Different types - different qualities Happiness failure bets & intuition uncertainty experiments search (exploration) Type creative, searching Method agile, speed matters most Happiness efficiency metrics analysis scientific models build what is required Type industrial, battles Method six sigma, scaling Model: Simon Wardley
  36. 36. Given the nature of work and given the Pioneers, Settler,Town planners … now what does it mean?
  37. 37. Commodity Product Custom Built Ubiquity NovelCommon Certainty DefinedUnknown Demand Supply Genesis Product Phases Model: Simon Wardley
  38. 38. Commodity Product Custom Built Ubiquity NovelCommon Certainty DefinedUnknown Demand Supply Genesis Modell: Simon Wardley What will we earn?How will the product look like? Which opportunities? How to find? Product Phases
  39. 39. Visibility Evolution Context determines method Unbekannt chaotisch unsicher unvorhersehbar unstet anders aufregend zukünftige Werte unterscheidend Industrialisiert geordnet (linear) bekannt gemessen stabil standard langweilig geringe Marge essentiell Genesis Custom built Product Utility LSU R&D NPD Integration BPOpt Maintenance Platform Model by Simon Wardley
  40. 40. Visibility Evolution Context determines method Unbekannt chaotisch unsicher unvorhersehbar unstet anders aufregend zukünftige Werte unterscheidend Industrialisiert geordnet (linear) bekannt gemessen stabil standard langweilig geringe Marge essentiell Genesis Custom built Product Utility agile / in- strong weak outsourced / six weak strong Lean How will we make money tomorrow? How will the product look like? What will we earn? Model by Simon Wardley
  41. 41. Visibility Evolution Context determines method Unbekannt chaotisch unsicher unvorhersehbar unstet anders aufregend zukünftige Werte unterscheidend Industrialisiert geordnet (linear) bekannt gemessen stabil standard langweilig geringe Marge essentiell Genesis Custom built Product Utility How will we make money tomorrow? How will the product look like? What will we earn? Defer alignment, framing crucial Alignment crucial Model by Simon Wardley
  42. 42. Visibility Evolution Context determines method Unbekannt chaotic uncertain unpredictable unstable different exciting future values differentiating Industrialisiert ordered (linear) known measured stable standard borring, dull low margin essential Genesis Custom built Product Utility LSU R&D NPD Integration BPOpt Maintenance Platform One size fits all does not work!!! Model by Simon Wardley
  43. 43. Common Dysfunctions
  44. 44. Pionier Siedler Pioneers Settlers No business
  45. 45. Settlers Town- planners No great new stuff
  46. 46. Pioneers Town- planners Nothing … but war
  47. 47. Pioneers Town- planners Gartner / Bi-Modal
  48. 48. Bild Kölner Domplatte
  49. 49. NichtsLow quality Pioneers Settlers Town- planners
  50. 50. The Innovators dilemma is called innovators dilemma not because people are stupid but because it is a dilemma!
  51. 51. Miles was good with the trumpet, but not soooo good He revolutionized Jazz 5-6 times with his bands All his band members were never again as good. They all became leaders.
  52. 52. The task Pioneers Settlers Town planers ✓ Manage the environments for the three types ✓ Craft preconditions: clarity in strategy
  53. 53. Pioneers Settlers Town planners ✓ Protect pioneers and town planners against each other ✓ Support flow of information The task
  54. 54. To get this
  55. 55. You have to protect this
  56. 56. Thanks! Simon Wardley for his Maps and the pioneer, settler, town planner model! http://blog.gardeviance.org
  57. 57. Thanks for your time and attention! :)
  58. 58. AMA! @markusandrezak @ueberproduct http://www.ueberproduct.de

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