Presentation by Dr Michael Rosemann, Professor & Head of IS, Queensland University of Technology at the Australian CIO Summit 2012

The 101 Guide to IT InnovationThe 101 Guide to IT Innovation

Professor Michael Rosemann

Information Systems School

Science and Engineering Faculty

Queensland University of Technology

Brisbane, Australia

How ambitious are you?

The Innovation Ambition MatrixTransformational

Management

ark

ets

/cu

sto

mers

new

Adjacent

Transformational

Innovation

3Nagji, Tuff (2012)

TransactionalManagement

products/processes/assets

mark

ets

/cu

sto

mers

newexisting

existing

Core

Innovation

Adjacent

Innovation

Example

Process design group with vanilla BPM methodology

(Six Sigma, lean)

Developed three distinct services

Improve (10%)Improve (10%)

Change (30%)

Innovate (100%)

Needed to become ‘consciously competent’ to

reliably deliver innovation as a service

4

Agenda

The Drivers of Innovation

Shortfalls of BPM and EA

Four Ways to Innovation

Q&AQ&A

5

InnovationDriven by a Problem

RecommendationsProblem-driven Innovation

Capture and endorse corporate goals (strategic context)

in your Enterprise Architecture (EA)

Identify current and future capability gaps

(capability-based innovation)

Consider customers’ processes and problemsConsider customers’ processes and problems

Involve all stakeholders in problem identification

(design innovation)

InnovationDriven by a Constraint

ConstraintConstraint--driven Innovationdriven InnovationExample Example –– Tesco, South KoreaTesco, South Korea

RecommendationsConstraint-driven Innovation

Increase the context-awareness of your EA

and process models (context-aware BPM)

Describe where and how contextual changes

impact your architecture and processes

Search for constraints offshoreSearch for constraints offshore

(reverse innovation)

RecommendationsOpportunity-driven Innovation

Capture the affordances of these technologies

(e.g., ‘ability to locate’, ‘democratization of information

and processes’ )

Allocate dedicated resources to assess the impact

of emerging technologies on your architecture and of emerging technologies on your architecture and

processes

Design architecture and processes

based on desired capabilities

(e.g., ‘facial recognition in a

super market’)

Agenda




Q&AQ&A

13

BPM and Innovation

Design of innovative scenarios is poorly supported

Ideation relies on brainstorming-like approaches

Reference models show common, not exciting practice

Innovation is often not process managedInnovation is often not process managed

Focus is on transactional, not transformational

capabilities

More reactive than proactive

14

EA and Innovation

Focus on technological assets, not (business)

capabilities

Difficult to judge asset utilization (problem)

Limited capture of environmental context (constraints)Limited capture of environmental context (constraints)

Lack of consideration of emerging

affordances (opportunities)

15

Innovation Latency

BusinessValue

Problem, Constraint, Opportunity emerges

Innovation potentialis noticed

Innovationanalysis is conducted Innovation

is adopted

Value lost

through

innovation

latency

16

DataLatency

AnalysisLatency

ImplementationLatency

Time

Innovation

Latency

is adopted

Inspired by Hackathorn, 2002

latency

Agenda




Q&AQ&A

17


Derivebetter practices

Enhance CreateInnovateEnhancecurrent practices

Createnew practices

Utilizepotential practices

Innovate




Createnew practices


Innovate

Enhance: Exercise

You are in charge for the

process “Visiting tourists

at the Empire State

Building”.

What is your objective?

How do you improve

this process?

Enhance Example

Wait Pay Wait Go Up Enjoy Leave

Enhance – ELIMINATE (1)


Enhance – RESEQUENCE (7)





Createnew practices


Innovate

Process DerivationExample

An Indian software vendor receives 1.6m job applications pa

They intend to hire 22,000 employees

What can they learn from a bank’s mortgage process?

….or the editorial process of a prestigious scientific journal?

Exemplary Derivation Patterns

• Need for selecting applicants for scarce resources

• Pre-approval (mortgage application)

• Long waiting time for customers

• Price-driven customer triage (airline)

• Provision of resource utilisation

26

• Provision of resource utilisation

• Usage-based pricing (car park)

• Dependence on customer input

• Automation and pre-filling (Air France)

• Two-sided market

• Brokering demand and supply (Apple)




Createnew practices


Innovate

Mobility as a service….

The Utilization Differential

• Assume you drive 15,000 kms in your car per year

• Assume the average speed is 50 kms/hr

• You are driving the car for roughly 300 hours

• There are 8,760 hours in the year

• car utilization = 3.4%

29

• car utilization = 3.4%

• If your car were a service, that untapped 96.6%

becomes a source of value

• Commercialization of idle time (revenue)

• Share acquisition, operation, maintenance costs

Henry Chesbrough (2012)

UtilizationSearch for Positive Outliers




Createnew practices


Innovate

Design Innovation at the‘World’s Greatest Bank’

32

Takeaways

Innovation

Dimension

Innovation

Techniques

Enhancement 15 Improvement Patterns

(see conference web page)

Derivation Derivation Patterns, Case Studies,

Benchmarks, Reference ModelsBenchmarks, Reference Models

Utilization Utilization Patterns (People, Data,

Systems, Resources), Positive

Outliers

Creation Six Hats, (Open) Brainstorming,

Crowdsourcing, Customer-led

Innovation, Creativity Techniques

Michael Rosemann

Information Systems SchoolScience and Engineering FacultyQueensland University of Technology

e [email protected] www.michaelrosemann.comt ismiro