IT Innovation & Continuous Learning
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This document discusses Philips IT Innovation and its role in facilitating businesses to innovate via information technology. It describes Philips IT Innovation's program which aims to enable future vision, learning, and decision making through experimentation. It introduces the Digital Accelerator which identifies, develops, and validates digital propositions with business units. It emphasizes the need for a culture of experimentation and discusses competencies like design thinking, lean startup, and agile development which are important for running disciplined experiments. Finally, it discusses the role of IT professionals in enabling business transformation through a system of continuous learning.
IT Innovation & Continuous Learning
- 1. Don’t just teach me, help me learn faster Perry Nouwens Philips IT Innovation December 13, 2013 1 December 13, 2013 Philips IT Innovation
- 2. Philips - A strong diversified industrial group leading in health and well-being Philips Businesses Geographies Healthcare Consumer Lifestyle Lighting Western Europe North America Other Mature Geographies Growth Geographies3 43% 20% 37% 25% 31% 9% 35% Since 1891 115,000+ $9.1Billion 8% of sales Headquarters in Amsterdam, the Netherlands 2 €23.5 Billion Sales in 2012. Portfolio consists of ~70% B2B businesses People employed worldwide in over 100 countries Brand value in 2012 invested in R&D in 2012 59,000 patent rights, 35,000 trademark rights, 81,000 design rights December 13, 2013 Philips IT Innovation
- 3. At Philips we strive to make the world healthier and more sustainable through innovation Improving people’s lives through meaningful innovation 3 December 13, 2013 Philips IT Innovation
- 4. What is innovation? “Bekwaame doctor en experimentator gezocht.” “Skilled docter and experimenter wanted.” Philips Natuurkundig Laboratorium, founded by Gilles Holst & Anton Philips, 1914 4 December 13, 2013 Philips IT Innovation
- 5. Let’s be honest: You have no idea what’s going to happen to your industry Dave Gray - The Connected Company 5 December 13, 2013 Philips IT Innovation
- 6. When knowing is not working anymore, experimentation needs to be part of your transformation strategy 6 December 13, 2013 Philips IT Innovation
- 7. Philips IT & Innovation 7 December 13, 2013 Philips IT Innovation
- 8. The challenges of Enterprise IT “Enterprise IT people come traditionally from a lens of command & control” • Harmonization & Standardization • Efficiency & Cost saving • Business & IT alignment • The Legacy... 8 December 13, 2013 Philips IT Innovation
- 9. The real-time, connected company Technology changes our customers' behaviors, so they will change our company • Internet of Things All products connected turning them into smart services • Social Business Direct interaction with consumers • Big Data Deeper insight in our consumers, products and services • Mobility Use products and services everywhere, anytime • Cloud Use services only when you need them 9 December 13, 2013 Philips IT Innovation
- 10. Philips IT Innovation Facilitate businesses to innovate via Information Technology To cope with todays speed of change, businesses need to be factories and labs at the same time 10 December 13, 2013 Philips IT Innovation
- 11. Philips IT Innovation - Program Facilitate businesses to innovate via Information Technology • Enable future vision Facilitate strategic (IT) directions: Identify trends, challenges & partnerships • Enable learning Find new solutions for though problems via experimentation • Enable decision making Validate solutions: Prepare business & IT for implementation 11 December 13, 2013 Philips IT Innovation
- 12. Philips IT Innovation - Our journey Learning Facilitate businesses to innovate via Information Technology Exploration Transformation Customer IT (2010) Predictability IT Innovation (2013) Enterprise IT “DevOps” Exploitation Efficiency 12 Standardization Business Growth December 13, 2013 Philips IT Innovation
- 13. Philips Digital Accelerator 13 December 13, 2013 Philips IT Innovation
- 14. Digital Accelerator – What is it? Identify, develop & validate digital propositions with Business Units Digital propositions • Connected products • Data-driven propositions • Digital services • New business models Co-creation • Philips Business Units • Philips Design • Philips IT • Philips Research • Philips Innovation Services • IT Technology Partners 14 December 13, 2013 Philips IT Innovation
- 15. Digital Accelerator – Why we need it Tactical business transformation instrument From physical products • Value creation in manufacturing • Top-down design, resource centric • Restricted participation • Limited re-engineering • Launch and pray 15 December 13, 2013 Philips IT Innovation To digital propositions • Value creation in use • Emergent design, user centric • Open participation • Continuous development • Launch and learn
- 16. Digital Accelerator – How we do it Rapid Co-Creation, by Philips Design 16 December 13, 2013 Philips IT Innovation
- 17. Competences required for Innovation 17 December 13, 2013 Philips IT Innovation
- 18. Competence versus possibility Competence is the enemy of innovation As we get more experienced, we get better, more competent, more able to do our thing. And it's easy to fall in love with that competence, to appreciate it and protect it. The pitfall? We close ourselves off from possibility. Possibility, innovation, art - these are endeavors that not only bring the whiff of failure, they also require us to do something we're not proven to be good at. After all, if we were so good at it that the outcome was assured, there'd be no sense of possibility. We often stop surprising ourselves (and the market) not because we're no good anymore, but because we are good. So good that we avoid opportunities that bring possibility. Seth Godin, April 2013 18 December 13, 2013 Philips IT Innovation
- 19. Explore Dealing with uncertainty If you take away uncertainty, you take away motivation. Wanting to exceed your grasp is the nature of the human condition. There’s no magic to getting where we already know we can get. 19 @Explorer, September IT Innovation December 13, 2013 Philips 2013
- 20. A culture of experimentation “The only way to win is to learn faster than anyone else” • Collaborate Always in co-creation with business and other functions • Explore Learn via hypotheses instead of deliver on requirements • Go fast If all seems in control, you’re just not going fast enough • Don’t focus on invention Philips IT: No (technology) originator, but a fast learner Your key deliverable = Learning Failure = validated change of direction 20 December 13, 2013 Philips IT Innovation Philips as a startup in 1895, Philips Museum
- 21. Disciplined experiments Testing assumptions, enabling a system of learning • Are tactical activities • Iterate, iterate, iterate • Thrive on collecting customer feedback • Reduce uncertainty, de-risk investments • Provide confidence to stakeholders • Facilitate decision making Source: The Lean Startup Did you ever ask to your team: How can you test this assumption as fast and cheap as possible? 21 December 13, 2013 Philips IT Innovation
- 22. Hypotheses versus Requirements Learning versus knowing – finding proof for user stories Hypotheses are critical assumptions, linked to a critical customer or business value, to be validated via a specific experiment. In order to I predict that When I <customer value, business value> <critical assumption> <run experiment> definition of proof We aim to deliver validated requirements, proven via experiments, documented as user stories, prioritized on business value. As a I need to In order to 22 December 13, 2013 <who> <what> <why> Philips IT Innovation definition of done
- 23. Example (Air Purifier) Starting hypotheses In order to I predict that When I deliver the promise of clean air consumers will change their filters on time provide them insight in their indoor air quality via a mobile application definition of proof prototype to collect customer feedback Validated requirement As a I need to In order to 23 December 13, 2013 Air Purifier owner have a graph of my air quality over time & a message that my filter is end-of-life & a one click button to buy the right filter replace my filters on time Philips IT Innovation definition of done
- 24. • Business immersion • Hypotheses • Value Proposition • Target audience role • Customer Experience • Mobile UX Design Flow • Mobile App Design • UI/UX Requirements • Connectivity • Business Modeling • Consumer Testing • Roadmap • Technical • Data Proposition • In-depth user play • 24 Development Scenario Sketching December 13, 2013 Philips IT Innovation • Technical • Development Development Putting everything together interviews
- 25. Competences for experimentation Building strong teams to run disciplined experiments • Design Thinking - understanding empathy, creativity, meaningful innovation understanding • Lean Startup - finding minimum viable product, learning experiments • Agile Development - delivering self-organizing teams, iterative development finding Building a system of continous learning 25 December 13, 2013 Philips IT Innovation delivering
- 26. The IT professional in the connected enterprise 26 December 13, 2013 Philips IT Innovation
- 27. The role of the IT Professional In the context of the Digital Accelerator as tactical business transformation instrument • Information Technology craftmanship • Collaboration & Learning abilities – Understanding - Design Thinking – Finding - Lean Startup – Delivering - Agile Development Can you apply your IT-craftmanship in a context outside the IT-function? 27 December 13, 2013 Philips IT Innovation
- 28. Business transformation has no end-state And requires a system of continuous learning • Business Transformation is moving into new territory with confidence • Building confidence requires people to learn new territory and skills • Mastering the art of experimentation enables you to develop your system of continuous learning Build yourself and your organization into an engine of possibility 28 December 13, 2013 Philips IT Innovation
- 29. Questions? 29 December 13, 2013 Philips IT Innovation
- 30. My inspirators: Seth Godin Dave Gray Alex Osterwalder Steve Blank Eric Ries and a lot of my cross-functional Philips colleagues Thank you Perry Nouwens 30 December 13, 2013 Philips IT Innovation