Agile Innovation - A Study of Practices and Challenges

AGILE INNOVATION FOR
NEXT GENERATION MOBILE BUSINESS
Mobile Business Study
1
Vanessa Guggisberg & Prof. Dr. Andrea Back, IWI-HSG
December 2017

During summer 2017, we explored the design of very
recent «Digital Innovation» in 9 incumbent
firms in the DACH-region (Germany, Austria,
Switzerland).
More than 30 interviewed innovation executives and
project managers gave insights into whether and how
their principles, methods and tools are different for
innovation projects in the digital age.
Researching their development of digital products and
services, we a) proof that a Agile Innovation is
evolving and b) present Next Generation Mobile
Business Use Cases from the latest digital technology.
In this study, we are excited to use the data collected in
these interviews to present our analysis and results
focused on methods and tools for digital innovation from
three perspectives in current digital innovation projects:
Software Dev Design Start-ups
(Agile methods) (Design Thinking) (Lean Start-up)
Vanessa Guggisberg & Prof. Dr. Andrea Back
Institute of Information Management,
University of St.Gallen (HSG)
2
Vanessa Guggisberg & Andrea Back, IWI-HSG, 2017

AGILE INNOVATION
(Principles, methods, and tools for digital
innovation projects)
FOR
NEXT GENERATION
MOBILE BUSINESS
(5 current innovation use cases from BSH, Bühler,
SBB, Schweizerische Post, and Schindler)
This study covers two perspectives:
1
2
EXECUTIVE
SUMMARY
3
The key ingredients for Agile Innovation:
1. Shed design pattern: Taking the traditional funnel design
further by continuously opening up for new insights (“letting
in light”) that will allow firms to fully capitalize on use, user
and utility centricity.
2. Team structure is based on small, cross-functional teams
staffed with internal and external team members.
3. Sprints are done iteratively, building only what proves
valuable through user testing, rather than building all the
features at once using predefined requirements.
Incumbent firms are starting to use new methods and tools for
their innovation projects, which have often been used already
in different settings, such as in start-ups, design, and software
development.
In this study, we will specifically look at concepts from Lean
Enterprise/Start-up, Design Thinking, and agile methods
(Scrum) to see how they can be applied to the innovation
approaches of incumbent firms today.
Why should I read this study?
Where do I start?
In order to adapt to new innovation logics, change
management and agile transformation must go hand in hand.
Start small; do not over-engineer the process from the start.
Use “agile” not only for software development projects, but also
for innovation processes. Put team members over processes. It
is more about team spirit, respect, and appreciation. «Just do
it» seems to be the governing motto.

TABLE OF CONTENT
4
Facts and Figures 5
Research Question 6
HOW: Agile Innovation – Results from empirical data 8
Agile Innovation Model – IWI-HSG 11
Reader’s guide 15
Dimension 1: Methods & Tool 16
Dimension 2: Governance, Rules & Norms 25
Dimension 3: Community 33
Dimension 4: Team Structure 40
CONCLUSION: How Is Agile Innovation Different? 48
WHAT: Next Generation Mobile Business – 5 Current Projects 51
Activity Theory 58
Data Collection - Interviews 59
Thank You Words to our Study Partners 61
The Authors of this Study 62
References 63

5
DID YOU KNOW?
Switzerland scores 1st place in both,
«the WEF Global Competitiveness Index 2016–
2017“ and in its sub-ranking “innovation and
sophistication factors”, but when looking closer at
relevant factors for digitalization, Switzerland
scores only moderately (rankings):
#56 time to start a new business (10 days)
#18 Internet users (in %)
#14 Availability of scientists and engineers
#10 Internet access in schools
March 2017: MISQ
Special Issue
on «Digital Innovation»
MISQ journal, the holy grail in Information Systems
Academia (comparable to the journal «Nature» for
scientists) published a special issue on «Information
Technology and Innovation” in March 2017. For
interested parties: Nambisan, S., Lyytinen, K.,
Majchrzak, A., & Song, M. (2017). Digital innovation
management: Reinventing innovation management
research in a digital world. Management Information
Systems Quarterly, 41(1), 223-238.
IMD Digital Competitiveness:
Switzerland ranked 13th
Adaptive Attitudes
2016 2017
Business Agility
IT Integration
21 23
3 4
14 13
Switzerland is
ranked 13th in the
IMD World Digital
Competitiveness
Ranking 2017 in the
sub-ranking “Future
Readiness”
(2016: 10th).
Relevant sub-factors for digital innovation
management in “Future Readiness”
Es muss eben nicht nur so aussehen wie
bei Google oder Facebook, es muss sich
auch so anfühlen. Am Schluss geht es
nämlich nicht darum, was man genau
entwickelt, sondern wie man es tut.
(Innovations-Coach Mark Zawacki in an
interview with Aargauer Zeitung,
20.11.2017)
“NEW” ROLE: CHIEF
INNOVATION OFFICER
Altimeter@Prophet: State of Digital
Transformation Report 2016 and 2017.
Which executive owns or sponsors the
formal Digital Transformation initiative?
August 2017: Chief Innovation Officer
8.1% (2016 not mentioned at all).
Google Search:
Innovation AND “stage
gate*”: 214’000 results.
Innovation AND iteration*:
29’400’000 results.
214’000
vs
29’400’000

How does the a new agile innovation
model look like that…
… incorporates new management principles
… offers methods & tools for designing
Next Generation Mobile Business?
?
6

IN TACKLING THIS QUESTION,
WE WERE INSPIRED BY
SOFTWARE DEVELOPMENT,
DESIGN AND START-UPS.
Incumbent firms are starting to use new methods and tools for their
innovation projects, which have often been used already in different
settings such as in start-ups, design, and software development.
In this study, we will specifically look at concepts from Lean
Enterprise/Start-up, Design Thinking, and agile methods (Scrum) to
see how they can be applied to the innovation approaches of
incumbent firms today.
The managers and seniors leading innovation units are especially
interested in new, up-to-date tools and methods that will shape and
lead innovation projects successfully in the (near) future and speed
up time to market.
7

8
RESULTS FROM
EMPIRICAL DATA ON
AGILE INNOVATION
JUNE – SEPTEMBER 2017
9 INCUMBENT FIRMS
FROM SWITZERLAND, GERMANY & AUSTRIA
PRIMARY DATA: >30 INTERVIEWS
SECONDARY DATA: FURTHER DOCUMENTS,
STRUCTURED LITERATURE REVIEW

9
SOME INTERESTING FACTS ABOUT THIS STUDY
2Authors
of the study
31Interviews
conducted
by the authors
1‘723Minutes we spoke
to study participants
9Incumbent firms
participated
in our study
293Coffees during data
collection phase

10
STUDY PARTICIPANTS – 9 INCUMBENT FIRMS IN DACH
Product
Owners
UX
Designer
Inno
Mngr
Agile
Coach
R&D
Mngr
Value
Stream
Mngr
Process
Mngr
Head Inno
Culture
5
3
11
2
3
2
2
3
INCUMBENT FIRMS INTERVIEWED ROLES

AGILE INNOVATION
MODEL © IWI-HSG
On the next slides we are introducing a generic model
(generic in terms of cross-company applicability) on today‘s
agile innovation process that has been built from insights
from the full data collection for this study.
11
Conclusion from our findings

12
AGILE INNOVATION MODEL - © IWI-HSG
t
uncertainty
COMPANY PROPOSITIONS: Brand / DNA Business Strategy Experiences Technology Advancements

13
The overall structure starts with a divergent and convergent thinking
process, which was derived from the “Double Diamond Model“ by the British
organization Design Council. They developed the model in 2005 and it has
since become a key pillar in Design Thinking (Übernickel et al. 2015).
Discover
Identify,
research, and
understand the
initial problem.
Define
Limit and define
a clear problem
to be solved.
Develop
Focus on and
develop a
solution.
Deliver
Test and evaluate
until the Proof of
Concept (PoC) is
ready.
DESIGNTHINKING–DIVERGENCE,CONVERGENCE
From funnel to shed design pattern
This movement is not only apparent in design, but also in architecture. We
were inspired by the Gummiband Fabrik in Gossau, Switzerland, which was
designed and built by architects Danzeisen & Voser, St. Gallen and
Engineer Heinz Hossdorf, Basel in 1945. The idea was to let light in through
the full length of the building. They called this design “Shedhalle.”
MODULES-LEANSTART-UP
Problem-Solution-Fit Product-Market-Fit Scale
3GATES
GATE 1
€ for
Prototyping
GATE 2
€€€ for
implementation
GATE 0
Accepted for
Iteration Zero
WHERE DO WE COME FROM?(I of II)
Ash Maurya developed in his book Running Lean the three stages of a start-up, which
also make perfectly sense for any innovation project (Maurya 2012, p.8-9):
Do I have a problem worth
solving?
In doing so, a team can stop an
idea early before months of effort
spent building a solution there is
no need for. There are three
crucial questions to ask:
1. Is this something customers
want? (must-have)
2. Will they pay for it? If not,
who will? (viable)
3. Can it be solved? (feasible)
Have I built something
people want?
After a successful PoC,
implement feedback
and pitch for a 2nd round
of money for the
implementation that
starts with an MVP. Use
qualitative and
quantitative metrics to
measure the fit to the
market of your MVP.
How do I accelerate
growth?
This is about a successful
hand-over to a business
unit and how to
continuously improve the
solution while also scaling
for growth.
This stage is visibly much
shorter than the two
previous ones, because
pivots have been done.
Pivoting: Finding a plan that works through experimentation Optimization: accelerating that plan
Business Unit:
continuous
development
Focus on the innovation process after Gate 0. Before gate 0, the early exploration phase, which
can also be defined as the “fuzzy-front-end“ of innovations, is all about generating initial ideas.
This could be done by hackathons, start-up screenings, user feedback, internal idea platform, etc.
Results show that agile innovation processes differ from traditional ones in terms of the number of
gates. The fewer gates a team must pass, the more light-weight the documentation requirements
are throughout the process. This makes a team more “agile“ and flexible for short-term decisions
on the innovation outcome.
PoC
PoC = Proof of Concept
MVP = Minimal Viable Product
(For a definition of these terms, see Slide 18)

14
We will later introduce certain methods and tools that can speed up time to market, but it is
important to first develop a certain rhythm. This can be achieved by sprints originally
introduced in software development projects. Sprints, which are iterations of work during
which an increment of product functionality is built, help to transform unpredictable incidents
into predictable ones.
Practically speaking, this means a shorter time horizon until you get valuable feedback from
stakeholders. Therefore, the overall time frame of innovation projects can be reduced in
absolute values. Uncertainty will decrease over the project time as incidents become more
and more predictable.
A sprint also brings along a very structured way of working: Each sprint lasts a specific
number of days (by the book, a sprint lasts max. 30 days) and includes several traditions.
Namely, each sprint starts with a one-day sprint planning meeting and ends with a sprint
review meeting, followed by a sprint retrospective meeting. For results, advantages, and
challenges working with sprints, please see the dimension Methods and Tools in this study.
COMPANYPROPOSITIONS
BUSINESS STRATEGY
EXPERIENCES
TECHNOLOGY ADVANCEMENTS
BRAND / DNA
WHERE DO WE COME FROM?(II of II)
At the very top, the two lines, “Brand/DNA” and “Business Strategy”
show the integration of the three dimensions of people, technology,
and business with regards to the company strategy.
The line “Experiences” describes the reasoning behind the whole
process, which should be defined at the very beginning during the
early exploration phase. The “Why?“ triggers the motivation to change
and can be extracted from different experiences: personal
experiences, screenings, process optimization potential, etc.
“Technology Advancements”: When influenced by design logics,
where innovative solutions are created based on customer needs,
technology does not define a use case itself but instead the vice versa
is true: A use case defines the suitable technology.
SOFTWAREDEVELOPMENT-SPRINTS
FROMITERATIVE
TOCIRCULAR
time
uncertainty
One of the key concepts from Eric Ries’ seminal book, The Lean Startup (Ries, 2011), is the “Build-Measure-Learn-Loop”.
This means that rather than delivering projects in a sequence, organizations should build by a small increment, measure
behavior and its demand, learn from those measurements, and then loop back and build again (i.e. extend or change the
increment). This concept is considered circular, which is where it differs from the agile movement (Agile Manifesto): Agile
doesn’t say anything about learning and looping back; instead, it just says to keep building in short sprints. However, results
show that new innovation models need both, iterative with short sprints and circular with its learning included.
Each circle starts with a hypothesis: “We hypothesize …“, which is then built and tested. “We learned that… so we have
a new hypothesis that…”, and so on.

15
THE ACTIVITY THEORY FRAMEWORK
STRUCTURES OUR RESEARCH AND STUDY
The activity framework offers six dimensions that can be used to dig deeper into the set-up of innovation projects in
the digital age. Throughout our study, we include practical examples of good practices from the 9 incumbent firms
that we selected as study participants. These practices are rooted in state-of-the-art methods and tools from
software development, design, and start-up principles. We focus on two key research questions for this study:
WHAT are exemplary current use cases? HOW are these innovation projects set up and managed?
THE 6 DIMENSIONS OF
THE ACTIVITY THEORY FRAMEWORK
THE 6 DIMENSIONS INFLUENCE EACH
OTHER – WE WANT TO SHOW HOW AND WHY1 2
Methods & Tools (Software Dev, Design & Start-ups)
Governance, Rules & Norms
Community (Partnerships internal & external)
Team Structure (Division of labor)
HOW:
Principles&
methodsfordigital
innovationprojects
User as subject
Technology à 5 B2E Use Cases for the fieldworker
WHAT:
Current
innovation
usecases
1
3
4
5
6
2
EMPIRICAL DATA
COLLECTION
June-September 2017
Basic structure of an activity system adapted from
Engeström and Sannino (2011)

METHODS & TOOLS
We refer to methods and tools from software development
(e.g. Scrum, SAFE, Agile Manifesto), design (e.g. Design
Thinking) and Lean Start-up (e.g. iterations with Learn-
Build-Measure-Loops).
16
Findings from our data on the dimension

CHALLENGES COMPANIES ARE DEALING WITH
17
PROOF OF CONCEPT VS
MINIMAL VIABLE PRODUCT
BREAK DOWN YOUR IDEA
INTO SMALL INCREMENTS
BOOST CAMP
What is actually the difference between
a PoC and MVP?
How do you break down in idea into
small increments?
What is a Boost Camp and what do
companies use it for?
How do you find a project team, define
an initial backlog and design a first pitch?
FROM AN IDEA TO A FIRST
PITCH
SPEED UP BY SPRINTING
What are the specifics and traditions of
sprinting in agile innovation projects?
EXPERIENCE LAB
What is an Experience Lab and what do
companies use it for?

„An MVP is that version of the product that
enables a full turn of the Build-Measure-
Learn-Loop with a minimum amount of effort
and the least amount of development time”
(Ries, 2011, p.77).
Before an MVP is set in place, it is crucial to
have tested the problem-solution-fit
previously with a PoC. Only with a
successful PoC, or else with feedback
implemented on a PoC, is it worth investing
money for a real implementation focused on
good quality code/manufacturing (so called
“late delivery”). The MVP lacks many
features that may prove essential later on,
as it is for testing the product-market fit.
A PoC is a way to validate the problem-solution fit on a shoestring budget (a
very limited budget). Before making a larger investment in time, effort and
money on high quality code or manufacturing (implementation phase),
validating the assumptions that users actually need the product/service is
crucial. “Discovering a problem that your idea will solve is easy, finding a
solution people want is what you have to validate“ (Thomas, 2015).
PROOF OF CONCEPT VS MINIMAL VIABLE PRODUCT
What is actually the difference between a PoC and an MVP?
During our conversations, we realized that there are different definitions for the terms: Proof of Concept (PoC) and
Minimal Viable Product (MVP). So, we collected our study partner’s definitions and saw how they applied the two
concepts in their projects. By analyzing the projects and the definitions used by the firms, we can present the most common
understanding and apply the concepts of PoC and MVP to our agile innovation model @IWI-HSG.
Problem-Solution-Fit
CREATE
RESPONSE
PRIORITIZING
FEATURES
FEEDBACK FROM POC
(KPIS), TIME & MONEY
PLANNING
2-3 sprints PoC
Initial backlog &
pitch on low-
fidelity
prototype
Product and portfolio view
GATE 1
€ for
prototyping
Create PoC
High-fidelity
prototype with
feedback from
PoC
GATE 2
€€€ for
implementation
Product-Market-Fit
Scaling
MVP
18
„We use PoCs in a very small setting, maybe
one station with 10 bulbs with integrated
sensors to test and verify specific scenarios
and their value. It is important for us to have
defined KPIs (the value we want to measure
with a PoC) before running a test phase in
order to validate the impact of the PoC. After a
successful PoC, we think about a MVP on a
bigger scale with more specific KPIs,
especially regarding marketability.
Using this procedure, we save money: Of
course we are investing money in the
beginning, but over time uncertainty is
reduced through continuous testing and a later
business plan for the implementation (MVP)
then shows the future potential of the
solution.”
Innovation Facilitator,
Zumtobel Group
Governance,
Rules & Norms
Community
(Partnerships
internal & external)
Team Structure
(Division of Labor)
User as Subject Technology
Methods & Tools
(Software Dev, Design, Start-ups)
B2E Use Cases.
Use of technology for
the augmented worker

19
BREAK DOWN YOUR IDEA INTO SMALL INCREMENTS
How do you break down an idea into small increments?
Epic Feature (User) Story
A vision document
shows the full idea
stock of features.
An epic is a container for a solution
development initiative. In the Lean Start-up
framework, a Learn-Build-Measure-Loop starts
with a hypothesis. Scaled Agile Inc. developed
a hypothesis statement sheet (see below)
that can be used to capture, organize, and
communicate key information about an epic.
A feature is a valuable functionality A User Story is a description of a desired
feature from the user’s perspective,
which states his/her purpose.
Continuous feedback and learning: Findings about the business case, as well as the feasibility and value proposition of ideas, are highly
important because they help to save money and time, which can then be invested in the most promising projects in the longer run.
However, the learning process is not successful when delivered towards a finalized product/service in a business plan to start with. This
is why research shows that breaking down the product/service idea into smaller increments is
crucial for continuous improvement, not only in the development phase, but already right from the start when the idea is presented the
first time. Iteration Zero, Boost Camps, and Experience Labs (see next slides) all incorporate this mindset.
Epic hypothesis statement
For <customers, users>
Who <do something>
The <solution>
Is a <something – the «how»>
That <provides this value>
Unlike <competitor, current situation>
Outcomes hypothesis: • …
Leading indicators: <early innovation accounting measures>
Feature
- Phrase
- Business benefit
- Acceptance criteria
Story
Business
Feature
Enabler
Feature
Feature
Acceptance Test
is one of
done when
passes
1 1
1..*
0, 1 1..*
User Story
- User voice statement
Enabler Story
- Story statement
Story
acceptance test
Unit
test
1 1
done when
passes
1..* 0..*
realized by
is one of
SAFe requirements model, 2017
more information here: Scaled Agile Frameworks
SMALLER
INCREMENTS
Epic hypothesis sheet by Scaled Agile Inc. (2017)
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

Iteration Zero at SBB –
default standard for all projects from January 2017
20
FROM AN IDEA TO A FIRST PITCH
How do you find a project team, define an initial backlog, and design
a first pitch?
When analyzing frameworks that incumbent firms use to overcome silo thinking in innovation projects,
interview results show that the starting point is all about getting a project started with a
cross-functional team.
An agile project, following Scrum guidelines, focuses on the development of a proof of concept or an MVP
with an already set team, product vision map, and first release plan on how to develop. However, agile
innovation starts even earlier (see below: agile innovation model – Gate 0). When interviewing project
managers and agile coaches, we became aware of the importance of bridging the time from an idea to a
first pitch when following agile methods. SBB showcased a framework that follows up on the missing
pieces between Gate 0 and Gate 1 (from an idea to a first pitch) called Iteration Zero.
Early
exploration
NEED FINDING PROBLEM & OPPORTUNITY
INVESTIGATION
Opportunity, team
building
Create pitch
GATE 1
€ for
prototyping
OUTCOME
ACTIVITY
GATE 0
Accepted for
Iteration Zero
Create 1-page Pitch
Initial backlog &
pitch on low-
fidelity prototype
Purpose of Iteration Zero:
Create a pitch to get a budget for
prototyping (Gate 1)
Tools:
A first pitch (one pager), Product Vision
Map, High Level 1-2 Release Plan,
common language, culture of debate …
To do’s:
Formulate epics and user stories,
develop team roles, coach the
Product Owner for required skills,
provide training by agile coaches …
For more information see Agile Transformation @ SBB,
Slideshare, Agile Breakfast Luzerm, 17.08.2017
ITERATION ZERO
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

21
SPEED UP BY SPRINTING
What are the specifics and traditions of sprinting in agile innovation projects?
Each iteration starts with: “We hypothesize
…“. During the sprint, this hypothesis is then
built and tested.
The outcome of the sprint delivers input for
the next sprint: “We learned that… so we
have a new hypothesis that…”, and so on.
Time-boxed
Artifact-driven
A sprint is a time-boxed short time frame. It is best if sprints
have the same time frame to hold on to over the project.
The sprint outcome by the end of the predefined time is to be
completed (e.g. a prototype, a release plan, a proof of concept
of a feature). A sprint outcome is also called a “potentially
releasable feature.”
Time-out possible A time-out between two sprints is possible (perhaps for budget
reasons or due to missing team resources), since the previous
sprint ended with a completed usable artifact.
Shape a solution,
shape the people
A sprint not only helps you to focus on the realization of an
innovation project, but also helps you to engage in “agile
innovation” as a company. Team members gain a sense of
achievement and talk about it. For more information on the
implementation of agile innovation, see dimension governance.
Sprint Meetings
Sprint
Planning
Review
Meeting
Retro
Perspective
The work to be performed in the sprint is planned at the sprint
Planning meeting. This plan is created through the collaborative work
of the entire Scrum Team. Questions to ask: What can be delivered
in the Increment resulting from the upcoming sprint? How will we
achieve the work needed to deliver the Increment?
The Sprint Review is held at the end of the sprint in order to inspect
the increment and adapt the product backlog if needed. Attendees
include the Scrum Team and key stakeholders invited by the Product
Owner. This is the moment when the team “presents” the increments
and “celebrates” its achievements.
The Sprint Retrospective occurs after the Sprint Review and prior to
the next Sprint Planning. During the Sprint Retrospective, the team
discusses: 1) What went well in the sprint, 2) What could be improved,
3) What they will commit to improve in the next sprint. This could also
be an “I wish, I like-Framework”, as proposed from Design Thinking.
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

22
BOOST CAMP
What is a Boost Camp and what do companies use it for?
Post, together with Innoarchitects, launched a
Boost Camp for projects that passed gate 1 in
order to get full-time focus on the innovation
project for 6 consecutive days. At the camp, the
solution is continuously enhanced on the basis of
the feedback provided by various stakeholders, in
particular customers, as well as lawyers, brand
managers, and IT architects. The Build-Measure-
Learn-Loop is performed several times during the
Boost Camp.
At the end of the Boost Camp, the business ideas
are validated. The team recognizes which
solutions can meet the identified customer needs
and what steps are required to come closer to
market success. Or, they realize over the course
of the week that their business idea is only
interesting to a few customers, or is too
expensive to implement. Either way, these
findings are all important.
More information:
Swiss Post Boost Camp
Innoarchitects
Incumbent firms have been introducing “Boost Camps” to encourage
more radical ideas, especially in cases where customer preferences and solution
options may change frequently and problems may be complex, solutions
unknown and the scope not clearly defined. But what are the characteristics of a
Boost Camp based on our discussions with innovation managers?
t
CREATE
RESPONSE
PRIORITIZING
FEATURES
FEEDBACK FROM POC
PLANNING
2-3 sprints PoC
Initial backlog &
pitch on low-
fidelity
prototype
GATE 1
€ for
prototyping
Create PoC
uncertainty
High-fidelity
prototype with
feedback from
PoC
GATE 2
€€€ for
implementation
Product-Market-Fit
Scaling
MVP
Boost Camp
(option 1)
ü Focus group: Made up of the Product
Owner and the team that developed a
specific product idea and defined the
respective target group.
ü The project team gets 6 full, consecutive
days to develop a first PoC (sprint 1
during the prototyping phase, option 1) or
to implement feedback from a PoC (option
2).
ü Start-up like feeling: The Product Owner
gets support from experts at
Innoarchitects for UX-design and
development.
ü Minimum two testing iterations with real
customers/users
ü Release plan for implementation phase,
including budgeting and time resource
planning
ü The business case, feasibility and value
propositions gets enhanced throughout
the Boost Camp in order to later pitch for
them for the implementation budget
Boost Camp
(option 2)
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

Audi launched their Experience Lab three years
ago (see characteristics on the left). Every two
weeks, a committee of representatives from
business units gets together and evaluates idea
pitches, a one-pager, and selects the most
promising ones (no fixed number). The
representative of the respective business unit
becomes the supervisor. The team, however, is
self-organized. From Audi’s experience, idea-
pitches with no fully dedicated team represented
are more prone to fail than the ones where the
team has organized itself before the pitch was
delivered. The team members, however, stay in
their organizational business unit for the 6
months. They are not transferred to a specific
“innovation unit”. Team members are all equally
eligible to make decisions. No leading person is
appointed but there are spokesperson(s).
23
Besides Boost Camps, incumbent firms have also been introducing
“Experience Labs” in order to generate more radical ideas, particularly
for cases where customer preferences and solution options may change
frequently, problems may be complex, solutions unknown and the scope not
clearly defined. But what are the characteristics of an Experience Lab based on
our discussions with innovation managers?
EXPERIENCE LAB
What is an Experience Lab and what do companies use it for?
time
CREATE
RESPONSE
PRIORITIZING
FEATURES
FEEDBACK FROM POC
PLANNING
2-3 sprints PoC
Initial backlog &
pitch on low-
fidelity
prototype
GATE 1
€ for
prototyping
Create PoC
uncertainty
High-fidelity
prototype with
feedback from
PoC
GATE 2
€€€ for
implementation
Product-Market-Fit
Scaling
MVP
6 months in an Experience Lab
ü Radical ideas and customer value are not
defined from the beginning
ü New to the organization in 2 perspectives:
product idea and organizational structure
ü 6 months time
ü % of dedication of team members:
individual, usually not 100%, rather
staffed 40-70% on the project
ü Self-organizing team: Free to staff
personnel internally or externally
ü >100‘000 € per team, from centralized
innovation budget @AudiHQ
ü Team is free to choose its team space
(e.g. IoT-Lab@Audi for prototyping)
ü Every two weeks: teams get together,
compare and discuss their status-quo
ü Agile coaches assist in methodological
questions (OCI - Open-Course
Innovation@Audi)
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

KEY TAKE-AWAYS AND
OPPORTUNITIES FOR THE
INNOVATION METHOD &
TOOL ASPECTS
Innovation culture looks different in
incumbent firms. Hence, different
methods and tools are used.
A proof of concept and a minimal viable
product are two different concepts.
Learn more on when to use what.
A proof of concept is problem-solution
oriented, while a minimal viable product
verifies the solution-market-fit.
Sprints are not only important for a
software development project, but are
also a crucial method for structuring
innovation projects during the process.
A sprint in time-boxed short time
frame not only helps to develop a
product but also develops the team
and gives room for improvement.
Companies are introducing different
concepts to help speed up iterative
work, whether by developing a pitch
or a high-fidelity prototype.
There is no right or wrong in agile
innovation, but we introduce Iteration
Zero, Boost Camp and Experience Lab
as three possible concepts to try.
24

GOVERNANCE,
RULES & NORMS
External rules or internal governance are shaping how projects
are set up. Regarding digital innovation, this can refer to the
decision-making and approval process on resources, degree of
freedom for project teams, or structure and content related
mechanisms.
25

26
2 ROUNDS OF BUDGET:
PROTOTYPE &
IMPLEMENTATION
IDEA KILLERS –
SOME PHRASES
HAND-OVER TO BUSINESS
UNIT FOR SCALING UP
THE POWER OF WORD-
OF-MOUTH
DEALING WITH FAILURES
Why are two rounds of budget important
for the success of an innovation project?
With a pinch of humor – what are the
worst idea killer phrases?
What are indicators for a successful
hand-over to the business unit?
Why does «big-bang» not work for an
agile innovation culture?
What does an appropriate culture for
dealing with failure look like?

2 ROUNDS OF BUDGET:
FOR PROTOTYPING & FOR IMPLEMENTATION
At Schweizerische Post, the innovation team has
launched a two-gate process:
1. Problem-Solution: A pitch of the idea is
requested in order to get CHF 50k for first
prototypes to proof the concept.
2. Product-Market: This is to get money for the
implementation and to test the market with a
minimally-viable product. Post has started to
launch their MVP-products under the label
«Early» as of Summer 2017.
Between the two gates, Post has further introduced
a «Boost Camp» - which involves 6 days of need-
finding, prototyping, and validation of the innovation
project – before the decision is made to kill or go.
Numbers count: Management is used to thinking about a
business plan with tangible numbers first and then about
the solution design (feasibility).
Why are two rounds of budget important for the success of an innovation project?
Prototyping – A prototype allows the innovation
team to get feedback early on from different
stakeholders, and especially from potential users. A
first prototype does not require an intensive budget
but can bring highly valuable insights to the attention
of the innovation team.
There are different fidelity-levels for prototypes
(ranging from low to high). This might involve a
simple drawing in the beginning (low-fidelity), and
then a “clickable prototype” to a computer-based
interactive representation of the product in its closest
resemblance to the final design (high-fidelity).
Implementation – Of course, it would be easier to
hand over a project budget just once to the team.
However, the two rounds of budget can have a
psychological effect (and can help save money if the
project is killed after the prototype): For prototypes,
the project team invests in «low-quality code» in
order to run it cheaper and faster, and so the team
needs the further budget to invest in «clean and
high-quality code» for the implementation phase.
Otherwise, the team would try to run the prototype
as if it was the final solution.
2 rounds of budget increase the visibility and
transparency of the innovation project.
Time-boxing: continuous improvements make added
value stable and plannable.
2 rounds of budget means 2 pots of money. While round
1 is usually seed money from a specific pot (centralized
innovation budget), the business unit should «buy-in» for
round 2.
Prototyping is a cost driver with highly uncertain results
in the beginning. Usually, this mix does not make
managers very happy. But what if it is the next big thing?
ADVANTAGES OF THE
ITERATIVE FUNDING MODEL
DISADVANTAGES OF THE
ITERATIVE FUNDING MODEL
27
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

28
IDEA KILLERS – SOME PHRASES
With a pinch of humor – what are the worst idea killer phrases?
In the interviews we heard a broad range of idea killer phrases. Usually there are lots of excuses for employees neither to talk about their
initial idea nor to start developing it. However, we would like to encourage organizations to overcome the obstacles. A good starting point
could be raising awareness of what are innovation killer phrases. We would like to share the most well-known ones here:
Where to start after having identified idea killers? Besides a self-organization movement for project teams, a clear structure of defined parameters, such as
“innovation budget”, KPIs and required documentation (e.g. 1 pager pitch), decision making processes and decision hierarchies (level dependent decisions) needs to be
set-up, however we recommend not to start everything at the same time right from the very beginning of agile innovation as you will read on the next slides.
It’s
against
the
company
policy
We don’t
have the
resources,
it will cost too
much
Our
customer’s
won’t like it
anyways
The
boss
won’t
go for it
That’s not our
problem
Let’s
make a
survey
first
It’s not
part of
your
job
The old
timers
won’t
use it
Let’s form
a
committee
first
Why hasn’t
someone
else
suggested
it before
already?
LackoftimeLackofbudget
Missing job profile Missing guts
The bigger the size of the bubble, the
more well-known the phrase
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

29
HAND-OVER TO BUSINESS UNIT FOR SCALING UP
What are indicators for a successful hand-over to the business unit?
Demand for scaling &
maturity of solution
Efficient delivery
Queuing for technical
implementation
To facilitate a successful hand-over to the efficiency-driven business unit, this unit
must be prepared to invest in continuous development of the solution. The
business unit is usually interested in scaling the solution. When testing a proof of
concept (PoC), the value of the solution is measured by previously defined KPIs.
First and foremost, the importance lies in enabling the business unit to
continuously improve the product/service after a successful hand-over. There are
2 strategies when to hand-over: after PoC, or after MVP.
1
Hand-over of the
solution after
evaluation of KPIs from
a Proof of Concept
(PoC)
2
Hand-over after the
development of a
Minimal Viable Product
(MVP) that has been
tested with users
Hand-overs after a proof of concept (PoC) are considered early hand-
overs. Our interview analysis shows the importance of a successful
PoC measured by the predefined KPIs, if the solution is handed-over
in an early stage. However, if there is an indication of major changes
to the POC, a hand-over after an MVP is suggested. Otherwise,
media might hype a solution too soon, causing expectations to rise.
Then the business unit might fail under pressure because usually the
focus of a business unit is on efficiency in operations, not on
continuous development in incumbent firms (DevOps).
Furthermore, results show that if the solution is handed-over too early,
the initially open mind of the project team might be negatively
influenced by the operations team in favor of existing products that the
organization already offers on the market (cannibalization). In this
case, a healthy distance between the project team and the business
unit during the development phase (including an MVP) is important.
Efficiency of the solution delivery to the business unit is another though nut to
crack: The typical business unit should be present during the last sprint(s) with the
project team in order to guarantee a smooth hand-over. Furthermore, support must
be organized and personnel authorized for operation afterwards. «DevOps» is a
new term that refers to the collaboration between the development and operation
team to ensure continuous improvement (especially for software solutions).
Even though the innovation team might have an agile mindset, it is still dependent
on up/downstream departments and external partners that are only indirectly
involved with the team. Implementation often can stagnate if the innovation team
has worked under reduced governance up to the hand-over. Decisions made by
the team under reduced governance need to be followed up immediately before or
during the hand-over (e.g software APIs, legal aspects). These dependencies on
other departments can cost time and can throw out the team of its rhythm.
Our analysis shows that innovative solutions, whether they are incremental improvements or radical changes, benefit from a fully
dedicated project team – the innovation team. But any project aimed at implementing an innovative solution needs to be handed over to
the operating team in the business unit at some point. We often heard from interview partners that the right moment of
solution hand-over is not easy to determine. There is no right or wrong way to determine this moment, but certain
indications can help in finding the suitable circumstances for a project.
2 strategies for project hand-over to the business unit (operation)
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

THE POWER OF WORD-OF-MOUTH
Why does «big-bang» not work for an agile innovation culture?
Large companies typically go about transforming themselves in waterfall fashion. They expect
everyone to “go big or go home”. They hold conferences, launch training programs and create a
blizzard of memos, Gantt charts and templates. They dot the hallways with posters and the
desks with slogan carrying Lucite blocks.„
“
(Rigby et al. 2017, p. 8)
AGILE INNOVATION ASKS FOR AGILE TRANSFORMATION
In order to adapt to new innovation logics, change management and agile transformation must go hand in hand. In
interviews, we often hear something like: We are currently not only digitalizing our product and service portfolio, but are
also transforming our company in terms of how we work. Within teams, agile methods seem to be understood quite well
already, but we still need to process structure as well as to clarify responsibilities in steering committees to define which
projects to support financially.
Of course, not every incumbent firm we have spoken to is at the same maturity level of «agile innovation». But our
analysis has resulted in a few recommendations as good starting points:
INNO
CULTURE
Put team members
over processes. It is all
about team spirit,
respect and
appreciation.
WHO MAKES
DECISIONS?
Even though we emphasize
reduced governance, what
needs to be defined from the
beginning is the clarification of
decision making. Which
decisions are to be made by
the team, and which ones by
the manager?
FIND
YOUR RHYTHM
«Just do it» seems to
be an important motto.
Do not over-engineer
before starting
a sprint.
30
LEARNING
CURVE
Using MVP helps to create
products/services as well as to test
ways of innovating. Start small; do
not over-engineer the process from
the start.
Use “agile” not only for projects,
but also for innovation
processes.
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

31
DEALING WITH FAILURES
What does an appropriate culture for dealing with failure look like?
«Dealing with technology risks is an important aspect for us. We should not try to make the
perfect plan, neither for the solution outcome itself nor on how to deal with technology risks.
What really helps us are fast iterations and quick learnings.»
Service Innovation Consultant,
Siemens Corporate Technology
How to deal with technology risks
Killing ideas and solutions is never easy, but it can be managed in different ways. For example, the SAFE framework,
an approach to developing complex systems in a «lean-agile» manner, proposes that we split an idea into smaller
increments in order to make decisions on specific requirements instead of on one big challenge. But what does this tell
us regarding go/kill decisions exactly?
The smaller the increments, the «less» it hurts to kill them if it turns out there is no demand for those particular increments. Our analysis shows that incumbent firms are starting to break
down their digital solutions (products and services) into smaller increments. The SAFE framework offers 3 different levels on which to make go/kill decisions:
Epic Feature User Story
A vision document
shows the full idea
stock of features.
An epic is a container for a
solution development
initiative.
A feature is a valuable
functionality/requirement.
A User Story is a
description of the desired
requirement from the
user’s perspective and
states a user’s purpose.
Calendar
As a clerk
I want to use calendar
functionality
As a clerk
I want to create a new course event, so that the meeting is
saved into calendars of trainers and students
On a feature level, the project team can make adjustments on
three parameters. Therefore, we suggest you first define use
cases and then choose the respective technologies afterwards
(look at the people dimension first).
Derived from Larry Keeley’s desirable-viable-feasible model (1995)Vanessa Guggisberg & Andrea Back, IWI-HSG, 2017
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

KEY TAKE-AWAYS AND
INNOVATION GOVERNANCE
ASPECTS
Project teams are only as successful
as a company’s frame allows them to
be.
Agile does not work with big bang –
use the power of word-of-mouth within
your organization.
Agile innovation only “rules” when it is lived.
This all starts with simply applying cookbook
style guidelines and then sharing experiences.
Reduced governance for innovation
projects increases the speed and
reduces time to market.
Explicitly state which decisions are
going to be taken on a meta-level. A
methodical design of an innovation
governance is a must.
Learn when projects are ready to be
handed-over to the business unit for
scaling up.
We can only provide indicators, but
catching the right timing strongly depends
on learning experiences within a company.
32

COMMUNITY
In the dimension community, we look at the social context in
which an innovation project is embedded, affiliated
internal/external partners and respective structure, and
collaboration mechanisms.
33

34
NO PREDICTION OF
PROJECT DURATION
TYPES OF COOPERATIONUSER, USE & UTILITY
CENTRICITY
AGILE COACHING TEAM
COMMON LANGUAGE &
CULTURE OF DEBATE
INNOVATION LABS
Why is it critical to integrate the user
and how can we do it?
What type of cooperation best suits my
innovation project?
What does an agile coaching team
(ACT) do and what skills are required?
How do we develop a common
language within our innovation team?
What is the magic with innovation labs
for corporates?

35
USER, USE AND UTILITY CENTRICITY
Why is it critical to integrate the user and how can we do it?
User
Use Utility
The new field of user, use & utility research requires a re-
thinking and further development of this line of inquiry by
putting the digital user and his or her data, usage behavior,
and perceived utility, at the center of study. The
consequences for IT strategies, processes, systems, and
management are that they must be derived by starting with
the study of the user. The value chain itself is being
reconfigured. Until recently, the user stood at the very end of
the process, but this order is now being reversed.
User as passive
consumer
User as point of
origin and active
participant
(Brenner et al, 2014, p. 56)
„
“
Many interview partners have focused on user centricity as an important factor, since the user experience (UX)
encompasses all aspects of the end-user's interaction with the company, its services, and its products. The
importance lies in physically bringing in users during innovation sprints, not just making assumptions in the workshops
about what the users might feel or say. Some “how to” questions here to address are:
User Use Utility
How can we meet
demands and satisfy user
needs with new digital
products or services?
How does the product/service
need to be designed in order to
satisfy our users’ needs in
various contexts/usage
categories?
How can we increase
utility for a specific
user group with
specific needs?
Focus on exploration:
- Define persona
- Clarify value proposition
chain
- Draw user journeys
Focus on creation:
- Product vision map
- From MVP Vision to User
Stories
- Release plan…
Focus on evaluation:
- Business Model Canvas
- Testing-Grids
- Experience talks…
Below, we show possibilities of user integration into our agile innovation model and list the tools for a 3U-centric
approach that were mentioned most often in the interviews:
The 3U
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

36
TYPES OF COOPERATION WITH EXTERNAL PARTIES
Our recommendation: Think about your internal resources before defining a suitable cooperation type. Are you lacking in skills, resources, ideas or time? A clear understanding of your internal
resources will help you to choose from the four types of cooperation with an external party. Speak openly about your interests and define the conditions beforehand, while still keeping the
project content open enough to increase the project team’s agility.
different types of cooperation were present in existing innovation projects according to our
interview research, from clear-cut assignments to real co-innovation. We present anecdotal
information on the four types of cooperation below.
Contractual
Basis
Corporate venture
capital initiatives
Development
partnership
Co-Innovation
4
Contractual cooperation is successful when assignments (tasks) are crystal clear, and after the partner’s skills have proven them
capable of performing the task (this can be based on previous partnerships, referrals, portfolios, etc.). The contracting entity defines the
assignments and time frame, and checks quality after completion. Meetings and arrangements either take place when needed or are
predefined. This cooperation type usually does not work for methodological skills (agile/ lean coaching) and is rather content-driven.
Corporate venture capital initiatives are investments made directly by an incumbent firm in start-ups relevant to its operations.
Mostly, such investments not only involve financial resources, but also refer to internal specialists and prototyping/testing facilities.
This kind of partnership allows incumbent firms to exploit new technologies (mostly radical changes to a core business) and invest in
a long-term partnership by strengthening their capacity for innovation with targeted investments in start-ups.
For a rather specialized product/service, a development partnership can be established with the first customer as a development
partner. In this case, the customer and incumbent firm define the requirements, followed by iterative testing and do defined tasks
together as arranged. The partnership officially ends or is revised to a running business cooperation after the initiated development.
After development, it is up to the partnering organizations to set the scope of a continuous partnership (e.g. further co-innovation).
In order to run a truly collaborative innovation partnership with an external party, the financial stake must be large enough for all partners
to be financially motivating. Furthermore, partners must be willing to run intensive innovation sprints together at one location (the
ingredients of physical presence and time, see Slide 38) in order to build team dynamics and gain speed. The organizational structure
still stays the same. Of course, not all team members are staffed internally; certain roles are filled by external partners. However, the
team itself should not feel the difference between internal and external team members after a successful team on-boarding session.
What type of cooperation best suits my innovation project?
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

THE AGILE COACHING TEAM AT SBB
SBB set up an Agile Coaching Team (ACT) to
moderate project teams in their Iteration Zero mode
(see dimension team structure).
We spoke to the two founders of the ACT, who said
that its underlying purpose is to generate learning
situations for the team so they can experiment and
learn how to kill and accelerate ideas. ACT makes
learning on the project feasible without planning
ahead with extensive in-house training and heavy
initial project staffing.
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.
37
Need for presence of an ACT member in the project
Uncertainty
of the
project
outcome Agile
Coach
Agile
Coach Agile Coach
WHAT DOES AN AGILE COACH DO?
An agile coach helps to identify any shortcomings at a very early stage, such as problems in the team
and project set-up, and moderates the solution finding. He/she further assists in fostering a common
language and advises in how to kill/accelerate ideas quickly.
ü ICT know-how: technical background in IT/business requirements engineering
ü Some background in social skills, such as coaching, group dynamics, teaching
ü Didactics: look for a diversity in didactic styles in your agile coaching team
members, so that coaches can complement and learn from one another
ü Agile competencies: Scrum or Kanban or any other agile methods
ü Mindset: customer-centric, UX-focused
Above all:
tough,
resistant
“elephant skin“
What does an agile coaching team (ACT) do and what skills are required?
SKILLS REQUIRED – WHO DO YOU HIRE FOR THIS ROLE?
AGILE COACHING TEAM

38
VISUALIZATION A COMMON LANGUAGE & CULTURE OF DEBATE
Throughout our analysis, we discovered that having a specific room and time for collaborative work during innovation projects is highly valuable for developing a common
language and a culture of debate, especially in the beginning. Debates within a project team often arise due to ambiguities based on a lack of common understanding. This
not only applies to the project vision, but also to team structure, division of labor, and governance questions. Questions such as ”How do you define ’done’?”, and “What
does XY mean to you?” are very important in the early phases of an innovation project.
Nonverbal communication is defined as the
non-linguistic messages that are
consciously or unconsciously encoded and
decoded through various mediums such as
facial expressions, body language,
gestures, space, touch, eye contact,
time and tone in the environment in
which the people communicate.
ROOM TIME
(Priyadarshi, 2017)
„
“
A method for adopting a common
language and removing ambiguity.
CONCEPT
MAPS
A tool for iteratively defining
correlations and the overall context.
WHY PHYSICAL PRESENCE IS NEEDED
2 important ingredients
How do we develop a common language within our innovation team?
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.
39
Schindler is redesigning one of its
historic buildings in Alt-Mariendorf,
close to Berlin, into a “Digital
Innovation Hub” until 2020. Teams will
be able to focus aside from their
existing teams on innovation on digital
services for Schindler’s core
businesses.
INNOVATION LABS
The pie must be big enough so that all parties
have a financial incentive to co-innovate
MUST-HAVES FOR A SUCCESSFUL
PARTNERSHIP WITH EXTERNAL PARTIES
What is the magic with innovation labs for corporates?
But who is the right person to lead an innovation lab? During the
interviews, attributes such as “trusted”, “respected”, and ”deeply
connected to others in the building/company” were listed as the
most important characteristics of an innovation lab manager.
The 20th century approach to innovation and R&D was typically to develop isolated, closed-door labs that were
secretive, well-funded, and impermeable. Think of a castle surrounded by a moat.
But most companies have begun taking a new, open approach to innovation when they open innovation labs. This
shift away from the hermit-like “Everything Must Be Invented Here” approach has yielded a more permeable 21st
century corporation — one that interacts more openly with startups, entrepreneurs, accelerators, academic
researchers, and even nonprofits and government agencies.
„
“
(Tucker, R., Forbes, Starting an Innovation Lab?, 20.11.2017)
Innovation labs are often closely tied to the core business not only
from a mindset perspective, but also physically. Close innovation
labs are therefore suitable for incremental innovations. On the
other hand, innovation labs that are a bit more distant (strategically
and physically) serve better for disruptive ideas.
Our interview results show that innovation labs come in
different models in terms of strategic and physical presence.
From a strategic perspective, the distance from the parent
company strongly implies how much a business unit is involved in
the innovation process. We realized that some interviewees were
referring to the difficulty of cannibalization of existing business if a
business unit was being onboarded too early (e.g. in a
brainstorming – diverging phase).
An innovation lab also offers space and time (two key
ingredients for building a common language, see previous
slide) to a cross-functional team staffed with internal and
external team members. But what are the must-haves for a
successful partnership with external parties? Here we
present the top 3 must-haves from our interviews:
There must be a good gut feeling in
the team: chemistry, group
dynamics, trust in the partnership
There must be clarity about the focus and
distance from the parent organization: Do
we aim for incremental or disruptive
innovation?

KEY TAKEAWAYS AND
INNOVATION COMMUNITY
ASPECTS
Innovation project teams should be
not only internally staffed but also
skilled with external partners.
“One solution fits all” does not exist:
There is no ideal innovation cooperation
type that will suit every project.
Think about your resources: Are you
missing any skills (e.g. technical,
methodological)? This will help you
identify a suitable cooperation type.
To successfully run agile innovation,
an agile coaching team is
recommended to be set up internally.
Mastering agile innovation is about
generating learning situations for project
teams so as to iteratively develop skills.
To engage with a suitable culture of
debate, the team should first be
enabled to speak a common language.
A common language is not about
“coding” languages; it is much more
about definitions and building
common ground to flourish together.
40

TEAM STRUCTURE
DIVISION OF LABOR
This dimension refers to the team structure, roles and
responsibilities in digital innovation projects (roles such as
project owner, developer, user experience designer, business
analyst, scrum master), initial team setting, its development over
time, including interrelations with the organization’s departments.
41

42
TEAM SET-UP RELATIONSHIP BETWEEN
TEAM AND MANAGER
IDEA PITCHES FAIL
EARLY WITHOUT A
COMMITED TEAM
Who is a part of the project team and
what skills are required?
Why is management support crucial for
the success of an agile innovation project?
Why is a committed team so important
for passing Gate 1 “the pitch”?
IMPORTANCE OF C-LEVEL
MANAGEMENT IN ROLLOUT
OF AGILE INNOVATION
If big bang does not work for agile
innovation, what role does C-Level play?

Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.
43
TEAM SET-UP
Who is a part of the project team and what skills are required?
Our study results show that even though staffing an innovation project may be a challenge for incumbent firms, it is still one of the most crucial factors for a successful development.
Interview partners defined a committed team as one of the key factors in three settings: 1) passing the first gate to acquire the budget for prototyping (SBB), 2) applying for an
experience/innovation lab (Audi) and 3) getting your PoC or MVP ready in a Boost Camp (Post). Thus, all settings used for agile innovation build on an
initial dedicated team as the fundamental base for a successful project.
<40%
60-80%
80-100%
THE ROLE «PROJECT OWNER»
AGILE INNOVATION TEAM – ROLES
Product
Owner
UX
Designer
Business
Analyst
Scrum
Master
Dev
Team
IT-
Architect
Testing
Team
Idea owner, responsible for
backlog, usually the
spokesperson of the team
Responsible for overall User
Interface consistency across
interaction models and visual styles
Shape a solution,
shape your people
Other
stake-
holders
Operations
team
Facilitates sprint planning, review &
retrospective, finds roadblocks &
works on them alongside the sprints
Responsible for end-to-end
cross-functional system
design and communication
Responsible for code: fast,
crappy code for prototyping,
clean code for implementation
Manages the requirements
analysis and business processes
User-Champions who test the
solution throughout the project, not
all done through the same people
Challenge current state of the
product/service from different
perspectives (e.g. legal)
To successfully hand over a
project, an operations team
must be ready to take over. This
works well if they are taken on
board during the MVP phase.
The majority of our interview partners acknowledged the
interdependence between the physical presence of team members,
especially the project owner, and the success of the project itself.
Incumbent firms staff their teams differently. While a few staff
project owners below 40% of their time on one project, others staff
between 80-100%. However, the majority of projects are staffed
with a project owner between 60-80% of the time.
Physical
presence
Not all these roles are required for an initial team,
but they should be involved throughout the project
phase.

44
THE RELATIONSHIP BETWEEN TEAM AND MANAGER
Why is management support crucial for the success of an agile innovation project?
Active senior
management
sponsorship
and support
We observed that for the majority of incumbent firms, team members kept their organizational structure during innovation projects.
Especially in organizations where the Product Owners are usually project managers in an ICT-related function (e.g. digital project
manager), the remaining team members from different business units, if cross-functional, stay within their actual organizational
department when being staffed on the innovation project for a defined time only.
This brings a challenge in “agile“ architecture:
Employees can have multiple managers, but decisions should only have one.
Participation of
experienced
trainers/coaches
Scrum must
align with the
strategic and
financial goals
of the company
A clear set of
business goals
to be achieved
with Scrum
Ensure a smooth
and conflict-free
transition from
the existing
practices to
Scrum
Clearly specified
metrics to identify and
measure the success of
adopting and
implementing Scrum
Keysuccessfactors
whenadoptingScrum
(Scrum Alliance 2017, p. 15)
These findings are
consistent with the results
from our qualitative analysis
of the interviews: Success is
more likely when it is clear
who selects and replaces
team members during
projects, who appoints team
leaders, and who approves
decisions if they are not
within the competence of the
team.
Appropriate metrics Extraordinary respectRoom for continuous learning
Put team results (business
outcomes & team
happiness) over individual
trackable outputs
Iterations not only increase the
success of the project outcome, but
also allow the team to improve in each
sprint - support from the manager is
highly appreciated.
Respect should be a matter of course
and not specific to agile projects. Yet,
our analysis shows that agile teams
need extraordinary respect and room for
creativity from managers to innovate.
Success
factorsforthe
team-manager
relationship
This leads us to the success factors we identified for the relationship between a team and its manager based on our interviews:
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

45
IDEA PITCHES FAIL WITHOUT A COMMITED TEAM
Why is a committed team so important for passing Gate 1 “the pitch”?
Usually we have pitches, where an idea owner pitches and introduces the initial team at the same time.
Or an idea owner pitches and states who he/she wants in the team. If cross-functional teams are required
then the manager adds the missing skills with suitable team members. However, idea owners without an
initial team, an idea about who could be in the team, or at least what skills are required, very often face
difficulties right from the start. I can’t think of any successful idea without an initial team right now.
Director of IT-Innovation and IT-Predevelopment
Audi AG
„
Create pitch
Team building
GATE 1
€ for
prototyping
OUTCOME
ACTIVITY
GATE 0
Accepted for
Iteration Zero
Initial backlog &
pitch on low-
fidelity prototype
1-4 5-9 10+
(Scrum Alliance 2017, p. 22)
Typical team size in agile projects: 7.5 members
The use case portfolio we analyzed in 9 incumbent firms showed
similar results: typically, agile projects were staffed with 5-10
members.
Each team member was specialized in one area, but in most projects
analyzed, a general level of skills in the other areas was beneficiary.
A good team member is T-shaped, both a specialist and a generalist
capable of taking up challenges for the betterment of the team.
Even though teams clearly focus on
building a consistent pitch during the
first sprint to pass gate 1, the team
building aspect is one of the most
critical factors, besides content-driven
outputs, of this phase.
Usually, the initial team setting is not a
fixed one that stays the same until the
project is handed over to a business
unit. Our results from the interviews
show that whenever a new member
joins the team, team building is
necessary for a successful onboarding,
especially in terms of developing a
common language and a culture of
debate (see dimension community for
more information).
Team building aspects right upfront
“ Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

46
IMPORTANCE OF C-LEVEL MANAGEMENT IN THE
ROLLOUT OF AGILE INNOVATION
If big bang does not work for agile innovation, what role does C-Level play?
Every year, Scrum Alliance releases interesting
numbers and facts about agile projects from around
the world. In previous reports (2014-2016), the
authors noted a quite high percentage of respondents
that reported tension with other parts of the
organization that were not using Scrum or any other
agile logics (2017: 69%, 2016: 73%).
Even though tension went down due to a higher level
of acceptance and awareness, 70% of respondents
this year named as the primary cause for this tension
the retention of a top-down management approach
(Scrum Alliance, 2017).
These numbers correspond to our qualitative
interview results, too. Most interview partners referred
to the command-and-control approaches of the
management. Thinking in inflexible stage-gate models
(traditional innovation models) still seems to be
present, since these models allow for quantified
statements on the potential of an idea at the very
beginning. Management is used to taking decisions
based on these numbers in order to allocate budget to
the innovation projects.
Tensions between agile and non-agile teams
Within teams, agile principles seem to be
understood quite well already, but we still
need process structure and clarification on
steering and evaluating projects to define
which ones to support financially.
Service Innovation Consultant,
Siemens Corporate Technology
„
“
We first had to finish a few successful agile
innovation projects and spread the
word about its advantages. Now C-level
management is convinced about the
importance of continuous testing,
developing and fully dedicated teams. And
now top-management is pushing for process
structure and defined “agile” as the new
default from Jan 2017 onwards.
Agile Coach,
SBB
„
“
Based on these results, a new agile innovation process is
needed. In the dimension «governance, rules & norms»,
we cover why big bang for agile innovation principles does
not work. But if so, where do companies start adapting?
Based on the insights from the interviews
conducted, we see 3 different approaches
that management could apply in terms of
how to train and educate internally.
1
2
3
Agile coaches
Courses in the
regular catalogue
Use external partners to bring
knowledge on agile projects
Agile coaches are consultants on agile
principles, methods and tools, who teach
on the job, e.g. in an Iteration Zero or a
Boost Camp.
Teams have the chance to book courses
on the regular course-menu open to
anyone in the organization. This way, no
extra courses would need to be set up.
Another model involves increasing skill
sets internally by bringing in
methodological knowledge from external
partners (e.g. Scrum Master).
Governance,
Rules & Norms
Community
(Partnerships
Team Structure
(Division of Labor)
Methods & Tools
B2E Use Cases.

KEY TAKEAWAYS AND
INNOVATION TEAM
STRUCTURE ASPECTS
Roles and responsibilities in digital
innovation projects and in the initial
team setting.
The physical presence and time of the
team members for intensive
innovation sprints are key.
Methods used for agile innovation build
on an initial dedicated team as the
fundamental base for a successful
innovation project.
Employees can have multiple
managers; decisions, however, should
only have one.
Team members should keep their
organizational structure during
innovation projects since they are
mostly temporary in nature.
Big bang for agile innovation
principles does not work. But if so,
how do companies start adapting in
order to go “agile by default”?
There are 3 different approaches that
management can apply regarding how to
train and educate internally: agile coaches,
regular courses, external partners.
47

CONCLUSION: HOW IS
AGILE INNOVATION
DIFFERENT?
48
1. COLLECTION OF KEY COMPONENTS
2. COMPARISON:
TRADITIONAL INNOVATION – AGILE INNOVATION

COLLECTION OF KEY COMPONENTS OF
AGILE INNOVATION
49
SHED DESIGN PATTERN
Lets in “light“ (diverging, opening up) not
only in the beginning, but also throughout
the project in order to fully capitalize on
use, user and utility centricity.
TEAM SET-UP
Made up of small, cross-functional
teams staffed with internal and external
team members, depending on internally
given resources and what is lacking.
CUSTOMER, BUSINESS INVOLVEMENT
Makes use of continuous instead of intermittent
collaboration at specific touchpoints
(traditionally: in the beginning and/or at the
end).
SPRINTS
Done iteratively, building only what
proves valuable through user testing,
rather than building all features at once in
following predefined requirements.
TESTING AND INTEGRATION
Involves continuous user testing with
real users throughout the full project
phase, rather than integrating features
after development has been completed.
DELIVERY
Involves continuous development instead
of large, infrequent releases delivered by
the business unit after a successful hand-
over from the innovation team.
1
2
3
4
5
6

50
HOW IS AGILE DIFFERENT?
Market structure
User centricity
Customer preferences change frequently, and technology
advances fast.
Aspects
There is collaboration with users, who are seen as a source
of origin and invited to participate actively. Rapid feedback
is feasible. Business engineers learn from user needs.
Innovation focus
Modular work set-up
The organization faces complex problems and unknown
solutions with a scope that is not clearly defined. Time to
market is highly important as user needs may change fast
with ongoing technology advancements.
Sprints are time-boxed and increase motivation for the team
members, since sprints are also output-driven. Work can be
modularized and conducted in predefined cycles. Late
changes are thus manageable.
Culture of failure
Interim mistakes provide valuable learning opportunities.
Killing ideas is never easy, but more manageable and
easier to digest if done in small increments.
Supportive corporate
culture
Culture is team-oriented and collaborative, and team
members are “early adopters” themselves. However, agile
innovation needs the buy-in from C-Level management.
Customer requirements are clear and stable throughout the
process. This only works when the requirements are also known in
detail by the development team.
Similar activities have been done before and the focus of
innovation remains on incremental innovation with detailed product
specifications and work plans that are forecasted up-front.
Late changes are not only expensive but also very time-consuming,
and sometimes even impossible. Testing is not feasible before the
development process is finished. An MVP does not exist, since the
first release is the fully completed product.
Failure and mistakes have negative consequences internally and
can have grave results.
Culture has a top-down direction and functional specialization or
silos. Mutual trust is one of the bigger concerns, as it is rather low.
Single projects follow agile methods, but up- and downstream
business lines follow traditional methods.
Agile innovation Traditional innovation
Market conditions are stable and predictable. However, this is not
the case with digital innovation.

The recently rolled-out KULT-App for
the train and station fieldworkers in
case of a disruption
Hololens-Prototype for mail delivery
preparation tasks
App-Family with continuous
development for a fully mobile and
integrated work place for technicians
Industry 4.0 and its influence on the
work place. First prototypes of the
smart assembly line
Sensors and the partnership with Apple
for FieldLink
51
NEXT GENERATION
MOBILE BUSINESS –
5 CURRENT PROJECTS
We selected five use cases to present as ongoing or recently
rolled-out solutions that have enabled fieldworkers in their
daily business (with a focus on business-to-employee
innovation).
We define fieldworkers as employees without a fixed desk who
work on after-sales tasks for service delivery (e.g repair work,
maintenance, up/cross selling).
How to enable an augmented worker (business-to-employee)

USE CASE 1 – KULT-APP AT SBB
INTERVIEWED EXPERTS AT SBB FOR THE STUDY
Head of Innovation Management – UX Designer – Project Owner KULT-App –
Agile Coaches (2x) – Project Owner Reiseplaner
COMPANY DESCRIPTION
SBB is the backbone of the Swiss public transport system, and day-to-day rail operations are
the basis of what they do. With their SBB strategy 2020, they want to shape the mobility of
the future – by adding a digital layer to make it simple, personal, and connected.
Product
Owner
UX
Designer
Innovation
Manager
Agile
Coach
Agile
Coach
Product
Owner
CONTEXT AND INTRODUCTION TO THE USE CASE
SBB had been using different sources to inform relevant stakeholders of a disruption, and
hence was unable to inform passengers immediately from one source. Instead, customer
advisors at the stations were mobilized via phone or messages in a rather time-consuming
process. Therefore, two individual ideas popped up in the business line passenger service at
the same time:
1) Immediately available information for passengers on the disrupted train, as well as for
potentially affected trains at the location of disruption; train managers that are able to
provide further information on disruption management, consequences, and connecting
train options for passengers.
2) A live ticker acting as an immediate alarm, providing information and coordination to
service employees at the stations so as to manage the flow of people during a disruption.
Throughout the innovation process at SBB, the potential of combining these two projects was
recognized by the steering committee and so they were merged into one project: KULT-App.
GEOGRAPHY
Successful field test with 400
employees. Rollout of MVP
in Switzerland in Q4 2017
ORGANIZATION
Product for business unit
passenger division. Project
performed by agile
innovation/implementation team KULT-
APP
USERS
SBB-train managers, train
station knowledge workers,
service employees
INDUSTRY
Passenger service
information and
communication in disruption
management
As a Proof of Concept, the team decided to go for a bigger field test with 400
passenger service employees (user testing) in order to identify user
acceptance and the prior-defined KPIs of the features. Within 6 sprints, the
team was able to prioritize features and iterate on existing and new ideas. This
resulted in an MVP that focused on a first set of features without geolocation
or other “fancy” features, but served as a starting point to serve as a live ticker
and communication channel to passenger service employees.
The KULT-App was recently released nationwide to all passenger service
employees. There will be a manager dedicated to development of additional
features throughout the solution-lifetime.
The biggest challenge, according to the project owner, was merging the two
ideas and teams. When they merged, the final team was missing a common
language that first had to be developed.
Furthermore, a product vision would have been beneficiary for the merged
team in order to elaborate and define the priorities of features.
ChallengesSolution
CHALLENGES AND THE SOLUTION OF THE KULT-APP
52

USE CASE 2 – HOLOLENS AT SWISS POST
INTERVIEWED EXPERTS AT POST FOR THE STUDY
Head of Innovation Management –– Project Owner Hololens Use Case – Head
of Innovation Culture
COMPANY DESCRIPTION
Schweizerische Post AG is the national postal service of Switzerland. As a public company
owned by the Swiss Confederation, it is the country's second largest employer and has three
subsidiaries: Post CH Ltd, PostFinance Ltd, and PostBus Ltd.
Product
Owner
Head of
Innovation Culture
Innovation
Manager
Post is testing smart glasses for the mail delivery preparation process. Specifically, the
business line Postmail is experimenting with Holelens in augmenting employees in the mail
delivery preparation by adding information of a letter on the user’s field of vision.
These kinds of mixed-reality smart glasses facilitate the sorting system and provide increased
flexibility in terms of task and geographical region. Recipients’ street addresses and location
are not displayed physically on the sorting rack anymore, but are instead added to the user’s
sight as a digital layer.
This allows users to fill in letters in alphabetical order. Without knowing the specific route of a
delivery tour, an user is enabled to sort letters alphabetically for the sorting racket. The task
becomes transferrable and does not purely rely on tour knowledge anymore.
GEOGRAPHY
Ongoing testing with lead users,
called “champions.” Agile
product development based in
Switzerland (Bern/Zurich).
ORGANIZATION
Innovation by the business unit
Postmail, led by a Product
Owner and interdisciplinary team
HOLO
LENS
USERS
Employees in the mail delivery
preparation process
INDUSTRY
Clear focus on fieldworkers
that are augmented by mixed-
reality smart glasses
(specifically Hololens)
Throughout the innovation process, the project team first focused on the
problem-solution-fit phase (refers to gate 1), where they were able to
elaborate on use cases in a brainstorming workshop and then validate their
ideas with first prototypes (from low-fidelity to high-fidelity) in a one-week
rapid prototyping session. They have now passed “gate 2 – focus on product-
market-fit” in the Post innovation process, where they needed a financial buy
in from the business unit. The next step will be to go live for a longer period of
time in order to assess and test the usage over full shift periods.
The Hololens use case nicely shows a tangible use case where smart
glasses could act as human augmentation, although the technology still
demands a highly time-consuming back-end data population and high up-
front investments on the hardware itself.
First, the team was challenged by the variety of potential use cases for the
Hololens mixed-reality technology. Once they were able to identify the specific
use case of mail delivery preparation process and its potential improvement in
quality and flexibility, the team realized the importance of the definition of a
suitable device (testing results) as the second step.
ChallengesSolution
CHALLENGES AND THE SOLUTION OF HOLOLENS AT POST
53

USE CASE 3 – MOBILE WORK PLACE AT BSH
INTERVIEWED EXPERTS AT BSH FOR THE STUDY
Project owner (App-Family for Fieldworkers) – Innovation Manager (Head of Product
Extensions) – Innovation Process Manager (Corporate Innovation Process)
COMPANY DESCRIPTION
BSH Home Appliances GmbH is the largest manufacturer of home appliances in Europe. The
BSH product range includes large home appliances for cooking, dish-washing, and laundry, as
well as a multitude of smaller appliances, such as floor care and hot water appliances (consumer
products).
Product
Owner
Innovation Process
Manager
Innovation
Manager
BSH’s Product Division «Customer Service» takes care of all after-sales processes. In this regard,
the team enables its 5000 fieldworkers worldwide for customer service and repair tasks on home
appliances through an app family “mobile work place” in order to increase consumer satisfaction.
Before fieldworkers faced a rather high volume of administrative tasks in their daily work (e.g.
billing or search for repair documentation) that took time and was either set up manually or
supported by an old-fashioned software solution. Therefore, BSH developed and is continuing to
develop an user-friendly tool that enables its fieldworkers to focus on their value-generating core
tasks (core tasks are transforming from purely repair to up/cross-selling at the customer’s point of
sale) and allows them to follow up on administrative work with a quick and intuitive solution.
Hence, customer satisfaction increases with both the more efficient and productive repair
operations and higher quality perception.
GEOGRAPHY
Worldwide, 5000 fieldworkers
at BSH for different brands
(e.g. Gaggenau, Siemens,
Bosch, Neff)
ORGANIZATION
Project owner at the Product
Division Customer Service,
Business Unit:
Business Services APP-
FAMILY
USERS
Fieldworkers/ Field Service
Engineers (tasks shift from pure
repair to up/cross-selling at POS)
INDUSTRY
Clear focus on fieldworkers
that are augmented by a
continuously improved app
family solution
BSH then continued with a typical PoC, which the operating team now has
been continuously improving with new features for their internal stakeholders,
the fieldworkers. Within six weeks (two sprints), they came up with a prototype,
which was then used for the MVP. The variety of household appliances on the
market makes it particularly hard for fieldworkers to be experts on each one.
Therefore, the next features will include expert integration, either through an
intelligent software with a chatbot or through a social collaboration software,
which would allow fieldworkers to talk to an expert right when they need to.
When the project team first started evaluating the current state of the art on
how fieldworkers run their repair jobs, the team planned a long-term waterfall
project. After 1.5 years, the team shifted to “agile”, which was the starting point
to shorten time to market. «Champions» (the identified test users) were tightly
integrated into the project, which made the roll-out much easier.
The whole project started with a long period of need-finding, a process analysis
in six countries, and benchmarking on existing solutions in other companies.
This strategic analysis brought up many areas for improvement – but where to
start? In multiple Design Thinking workshops, the project team set out to identify
the most critical needs together with fieldworkers from different brands.
ChallengesSolution
CHALLENGES AND THE SOLUTION OF THE APP-FAMILY
54

USE CASE 4 – INDUSTRY 4.0 AT BÜHLER
INTERVIEWED EXPERTS AT BÜHLER FOR THE STUDY
Value Stream Manager (Project Owner Industry 4.0) –– Corporate R&D Manager
– Senior Process Manager R&D
COMPANY DESCRIPTION
Bühler Holding AG is a globally active solutions provider for the industrial manufacturing of
food and advanced materials. With its industrial process technologies and solutions, Bühler
sets its focus on food security and safety. Bühler positions itself at the forefront of the
accelerated transformation towards the Industrial Internet of Things (IIoT).
Value Stream
Manager
Process
Manager
R&D
Manager
In 2015, Bühler had plans to digitally transform the process of pre-assembly. The
transformation started in the warehouse where all the needed parts are stored and picked for
the production orders. At the end of the assembly, the machines are mounted completely and
readied for shipment to customers worldwide. Bühler started to build a prototype of the future
workplace with various devices and technologies built in. They used a digital transformation
platform called “Simplifier”, developed by iTiZZiMO, in order to create user-friendly processes
and interconnect their own and external IT-systems. Simplifier applications can be built in a
very short time and therefore evaluation could start earlier than before.
Right now, the value stream manager and his team are evaluating the MVP with its built in
features – for more information, see here: https://www.itizzimo.com/en/itizzimo-realizes-
industry-4-0-buehler-ag/
GEOGRAPHY
Prototype work place at the time
of our study was only installed
at the headquarter assembly
site
ORGANIZATION
Work place, process
optimization, integrated project
team in business unit
INDUSTRY
4.0
USERS
Assembly workforce, pains are
known, apprentices have their
own lab
INDUSTRY
Assembly workforce,
apprentice future workplace
These partners included iTiZZiMO for the digital platform, Marktgut for the
implementation of the applications and project management, SFS for the
specific mechanical fastening system, Phoenics Mecano for electronics,
among others. Within a short time frame, the project team created
applications for several devices that could exchange information and digitally
connect the complete assembly process. A few of these included: smart
glasses to identify items and increase quality in picking, integrated beacons to
quickly retrace the exact location of transport boxes, and error detection (e.g.
torque values of screws) to lower costs in the quality control process.
With this kind of digital support, Bühler machinery will be delivered faster to
the customer, but the prototype work space is still under evaluation. Bühler
literally lives the “just do”-spirit as they do not over-engineer the innovation
process upfront, but rather start with exploration and first prototypes. They
furthermore integrate partners into their co-innovation team setting.
Pains regarding efficiency and quality have been identified over the last few
years. Since the value stream manager (the project owner in this use case) is
directly involved in the business unit, he brings along a good understanding of
what the real pains are. As they did not have the resources for project
management in-house, Bühler partnered with various external parties.
ChallengesSolution
CHALLENGES AND THE SOLUTION OF INDUSTRY 4.0 AT BÜHLER
55

USE CASE 5 – FIELDLINK AT SCHINDLER
INTERVIEWED EXPERTS AT SCHINDLER FOR THE STUDY
Digital Innovation Manager – Operation project manager for continuous
development (Ops Product Owner) – VP Digital Innovation
COMPANY DESCRIPTION
The Schindler Group produces, installs, maintains and modernizes elevators and escalators
in many types of buildings including residential, commercial and high-rise ones. Schindler
has shifted its focus to predictive maintenance in its digitization efforts.
Product
Owner
Innovation
Manager
Innovation
Manager
Schindler Digital cooperates with Apple to enable fieldworkers (maintenance service
employees) to localize problems on elevators faster with the digital tool-case FieldLink.
Together with Apple, Schindler specifically developed apps on the iOS operating system with
meticulous plans for the service deployments. After screening, analysis, and processing, there
is an automatic notification sent to a fieldworker’s iPhone about the problem along with repair
suggestions. On site, a fieldworker can use the iPhone to test the elevator, inquire error
record, and make a quicker fix. But apps alone do not enable the fieldworker to do a quicker
fix. A great number of sensors are built into the elevators that enable remote monitoring and
continuously measure critical data such as elevator routes, speed, and temperature. All
information units are transmitted to a platform where they are analyzed and translated into
service jobs.
GEOGRAPHY
Worldwide roll-out is currently
Schindler’s focus point.
FieldLink has already been
rolled out in US, GER, CH, CN
ORGANIZATION
Schindler Digital AG. After roll-
out, a manager was recruited for
the continuous development of
the FieldLink app family FIELD
LINK
USERS
Fieldworkers (technicians) get
supported by the FieldLink
apps for service deployments
(error inquiries, repair)
INDUSTRY
Clear focus on service
technicians running the
maintenance of existing
installation services
Based on the data collected and transmitted on the platform, FieldLink
technicians receive a work list on their FieldLink app in the morning, combined
with suggestions for the best routes between the service deployments, and a list
of spare parts that will most likely be needed for the tasks of the workday.
Employees can not only check on the status of the job, but also order spare
parts directly on the app. Upon deployment, the FieldWiki app helps to read
through repair instructions. Since the early start of FieldLink, the project team
has added new features on a continuous basis to the Internet of Elevators.
Schindler Digital also lives the “just do”-approach as they do not over-engineer
the development process nor the operations before working on digital projects.
This increases learning and speeds up the time to market for new releases.
Schindler’s long-term objective is to integrate all stakeholders into the
«Internet of Elevators». Thinking towards the Internet of Elevators, Schindler
now uses cloud services for FieldLink data. Early in the development process
of FieldLink, they integrated different stakeholders, with fieldworkers as the
future users leading the way.
ChallengesSolution
CHALLENGES AND THE SOLUTION OF FIELDLINK
56

THEORETICAL
BASICS USED FOR
THIS STUDY
57
1. ACTIVITY THEORY FRAMEWORK
2. INTERVIEW QUESTIONS

58
The activity theory framework helps to understand the set-up of innovation projects. It is considered as a
meta-theory and aims at understanding the object-oriented and tool-mediated interactions between humans.
Within strategy research, activity theory model has proven to be well suited to investigate “micro-practices” in strategy
in order to reveal strategic practices (Jarzabkowski 2003). Another relevant aspect of activity theory is that it
includes different organizational actors and their collective intentions and thus allows managers to recognize tensions and
dilemmas in the relation between different activity systems when translating a strategic vision into
practice (Blackler & Regan 2009).
ACTIVITY
THEORY
FRAMEWORK
Dimension Description and application in this study
User as
Subject
The subject is referring to a user (in our use cases, we look at
fieldworker), tool-mediated towards reaching the objective.
Technology
for B2E Use
Cases
As object, we refer to the objective of the activity. In our research, this is
the digital technology of the outcome (B2E processes for fieldworker and
new service offering).
Methods &
Tools
In this research, tools are artifacts, methods and instruments such as a
specific location (e.g innovation labs), methods from software
development (e.g. Scrum, Agile Manifesto), design and user centricity
(e.g. Design Thinking), Lean Start-up (e.g. Learn-Build-Measure-Loop).
Governance,
Rules &
Norms
External rules or internal governance are shaping how projects are set-
up. Regarding digital innovation, this can refer to the decision-making and
approval process on resources, degree of freedom for project teams and
structure and content related mechanisms.
Community The social context, in which the project is embedded. It refers to
internal/external partners, its structure and collaboration mechanisms.
Team
Structure
(Division of
Labor)
This refers to the team structure, roles and responsibilities in digital
innovation projects (team roles such as project owner, developer, user
experience designer, business analyst, scrum master etc), initial team
setting, its development over time and dependencies on related
departments within the organization.
Basic structure of an activity system adapted from
Engeström and Sannino (2011)

59
INTERVIEW
QUESTIONS
Dimension Excerpt of our interview questions
Existing innovation methods and
process at the incumbent firm
Is there an innovation process defined at your company? Are there different gates (phases) in the innovation process?
How is a decision made on a "gate" from one to the next phase? Maybe you could tell us a bit more about the specifics on each
phase? Did/do you work in sprints? What does iterative work mean to you?
Methods & Tools When are prospective users involved and on which purpose? How do you value prototypes? Do you use prototyping; When and
how? How does testing look like? With whom do you test? Is there a group of testers you can reach out to? How do you
communicate with testing users? How do you implement the learnings from testing? What software do you use for your
organization of user stories and testing?
Governance, Rules & Norms Who takes decisions regarding go/kill for resources (financial, personnel, team)? How often does the committee take decisions?
What are killer criteria to stop an innovation project? Under what circumstances are these decisions made? How does such a
meeting look like?
Community Do you involve external parties in your innovation projects? If yes, for which tasks and when? How do you structure the work with
them? (e.g. responsibilities, task allocation, team members)? What value does the collaboration have? From your experience,
what are three must-haves of an external party to create a successful partnership?
Team Structure (Division of Labor) Who works in the project team? How do you structure the work tasks internally? What roles are involved in the project?
Where is the project team allocated in terms of organizational structure? Are team members involved in other projects/daily
business when they are allocated to a innovation project team?
User as Subject
(only for project owners)
How does a user’s usual day look like? How does this solution change the way a user works? How much influence do your
employees have in terms of workplace design (e.g. technology, use case)? What helps/would help when you face this challenge?
What does not work? What role do change agents play? In what situation are they important?
Technology for B2E Use Cases
(only for project owners)
What "problem" are you focusing on when developing your solution? For which employee role? Which improvement does the
solution provide? What are the benefits? What technologies and devices have you considered throughout the project? What
technologies and devices did you finally chose and why? What are the challenges you are facing when implementing this solution
in terms of technology acceptance/change for the employee?
INTERVIEW FACTS
Interviews with
Product Owners
5 Interviews with
corporate roles
26 1‘723Interview minutes
in total
55Average duration (min)
of an interview
48Questions asked
in an interview on average

REFERENCES AND
SOURCES
60
1. THANK YOU WORDS TO OUR STUDY PARTNERS
2. THE AUTHORS OF THIS STUDY
3. REFERENCES
4. PICTURE SOURCES

THANK YOU WORDS TO OUR STUDY PARTNERS
Namics and Deloitte made this study
possible through their engagement and
financial support.
The study is the result from collaboration
with the private industry and practice-
oriented research from the Institute of
Information Management (IWI-HSG) at the
University of St. Gallen.
Dr. Oliver Baecker
Elena Jaeger
Jens Reufsteck
Gregor Erismann
Special thank you goes to these people:
THANK YOU FOR YOUR VALUABLE
INPUTS!
61

AUTHORS OF THIS STUDY
Prof. Dr. Andrea Back
Director and Professor at the Institute of Information Management (IWI-HSG)
University of St. Gallen
andrea.back@unisg.ch, +41 71 224 25 45
Vanessa Guggisberg, M.A. HSG & CEMS MiM
Project Manager and Research Associate
Institute of Information Management (IWI-HSG)
University of St. Gallen
vanessa.guggisberg@unisg.ch, +41 79 824 54 79
62

63
REFERENCES (I of II)
Altimeter@Prophet (2016). The 2016 State of Digital Transformation. Retrieved November 1, 2017 from http://www2.prophet.com/The-2016-State-
of-Digital-Transformation
Altimeter@Prophet (2017). The 2017 State of Digital Transformation. Retrieved November 1, 2017 from http://www2.prophet.com/2017-state-digital-
transformation
Blackler, F., & Regan, S. (2009). Intentionality, agency, change: Practice theory and management. Management learning, 40(2), 161-176
British Design Council. (2017). The double diamond. Retrieved November 13, 2017 from http://www.designcouncil.org.uk/news-opinion/design-
process-what-double-diamond
Eng Engeström, Y., & Sannino, A. (2011). Discursive manifestations of contradictions in organizational change efforts: A methodological
framework. Journal of Organizational Change Management, 24(3), 368-387.
Global Competitiveness Index: http://www3.weforum.org/docs/GCR2016-2017/05FullReport/TheGlobalCompetitivenessReport2016-
2017_FINAL.pdf
IMD World Digtal Competitiveness (2017) www.imd.org/globalassets/wcc/docs/release-2017/world_digital_competitiveness_yearbook_2017.pdf
InnoArchitects (2017). Boost Camp – das Original. Retrieved November 17, 2017 from http://www.innoarchitects.ch/factory/boostcamp/
Jarzabkowski, P. (2003). Strategic practices: An activity theory perspective on continuity and change. Journal of Management studies, 40(1), 23-55.
Maurya, A. (2012). Running lean: iterate from plan A to a plan that works. O'Reilly Media.
Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital Innovation Management: Reinventing Innovation Management Research in a
Digital World. MIS Quarterly, 41(1).
Priyadarshi, S. (2017). Power of Nonverbal Communication in Project Management. International Journal of Computer Science and Information
Technologies. 8(1), 81-88

64
REFERENCES (II of II)
Ries, E. (2014). The Lean Startup: How Constant Innovation Creates Radically Successful Businesses. Portfolio Penguin.
Scaled Agile Inc. (2017). Requirements Model/ Stories, Epic. Retrieved October 30, 2017 from http://www.scaledagileframework.com/safe-
requirements-model/
Schmid, G. (2017). Swiss Post BoostCamp: three steps to success. Retrieved November 17, 2017 from https://www.post.ch/en/about-
us/news/work-at-post/swiss-post-boostcamp
Scrum Alliance. (2016). State of Scrum Report 2016. Retrieved October 30, 2017 from
https://www.scrumalliance.org/scrum/media/ScrumAllianceMedia/Files%20and%20PDFs/State%20of%20Scrum/State0fScrum_2016_FINAL.pdf?
aliId=262770601
Scrum Alliance. (2017). State of Scrum Report 2017. Retrieved October 30, 2017 from https://www.scrumalliance.org/why-scrum/state-of-scrum-
report/2017-state-of-scrum
Siemens Jobs. (2017). Job Posting: Senior Consultant Lean and Agile in Research and Development Projekten. Retrieved October 26, 2017 from
https://jobs.siemens-info.com/jobs/267326/Senior+Consultant+(m-w)+Lean+and+Agile+in+Research+and+Development+Projekten?lang=de-DE
Thomas, J. (2015). Minimum Viable Product vs. Proof of Concept: Which is Best? Blogpost by Lean Labs. Retrieved October 30, 2017 from
https://www.lean-labs.com/blog/proof-of-concept-vs.-minimum-viable-product-and-when-to-use-each
Trentini, S., Ramseyer, M. (2017). Agile Transformation @ SBB. Retrieved November 16, 2017 from
https://de.slideshare.net/pragmaticsolutions/agile-breakfast-luzern-agile-transformationsbb
Tucker, R. (2017). Starting an innovation lab: Avoid these pitfalls. Retrieved October 26, 2017 from
https://www.forbes.com/sites/robertbtucker/2017/11/20/starting-an-innovation-lab-avoid-these-pitfalls/#30976c857a2b
Uebernickel, F., Brenner, W., Pukall, B., Naef, T., & Schindlholzer, B. (2015). Design Thinking: Das Handbuch. Frankfurter Allgemeine Buch.

65
PICTURES
Most pictures are free stock pictures from Pixabay (https://pixabay.com/de/).
Icons are retrieved from NounProject with a Royalty License based on their subscription (https://thenounproject.com/).
Company Pictures
Picture Zumtobel: http://www.zumtobel.com/ch-de/active-light.html
Picture SBB: https://www.sbb.ch/de/freizeit-ferien/reisen-europa/rail-plus.html
Picture Schweizerische Post: http://www.handelszeitung.ch/sites/handelszeitung.ch/files/lead_image/schweizer-post-onlinehandel.jpg
Picture Audi A3 V8 Etron: https://www.audi.de/de/brand/de/neuwagen/a3/a3-sportback-e-tron.html
Picture Siemens: https://www.siemens.com/press/pool/de/pressebilder/2017/processindustries-drives/300dpi/IM2017040523PD_300dpi.jpg
Picture Schindler: https://www.schindler.com/de/internet/de/ueber-schindler/Presse/2016/schindler-investiert-44millionen-euro-in-berlin.html
Gummiband Fabrik Gossau: https://www.hochparterre.ch/nachrichten/architektur/blog/post/detail/baudenkmal-sucht-neuen-
eigentuemer/1443175540/

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