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Analyzing Innovation Across Business LinesMay 27, 2019
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
info@everevolving.biz | (302) 242-7778
Learning ObjectivesUnderstand the purpose and benefit
to your organization for having a standard set of metrics to track project performance
Share tips about what metrics need to be captured and where they are captured
Understand the different lifecycle phases that need to be accounted for
2
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
info@everevolving.biz | (302) 242-77783
We specialize in helping companies build and execute a successful innovation strategy.
We have over 25 years of experience helping companies large and small drive their businesses forward.
We developed a framework to help companies overcome the biggest challenges in becoming more innovative.
Ever Evolving, Inc.
Who we are, and what do we do
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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Why Is It So Difficult to Keep Up?
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Are more store closings coming? Firm forecasts 'No light at the end of the tunnel’
– https://www.usatoday.com/story/money/2019/02/13/more-store-closures-expected-2019-new-report/2865505002/
How Delivery Apps May be Putting Your Favorite Restaurant Out of Business
– https://www.newyorker.com/culture/annals-of-gastronomy/are-delivery-apps-killing-restaurants
'There's no future for taxis': New York yellow cab drivers drowning in debt
– https://www.theguardian.com/us-news/2017/oct/20/new-york-yellow-cab-taxi-medallion-value-cost
From Rental to Streaming: How Netflix Changed the Speed of Business
– http://innovatebusinessit.com/from-rental-to-streaming-how-netflix-changed-the-speed-of-business/
And It is Difficult to Keep UpEvidence is Everywhere of Failed Business Models
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25 of the biggest failed products from the world's biggest companies
– https://www.businessinsider.com/biggest-product-flops-in-history-2016-12
NOT Listed Here:– Any Blackberry after the introduction of
the iPhone
– Multiple Microsoft products, such as Vista, ME, Windows Phone
Products Can Fail Too
Business Models Aren’t the Only Challenge
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How can a Business Analyst Prevent These Disruptions and Product Failures?
Analyzing Innovation Across Business LinesWhat is Innovation and why does your
organization need to innovate?
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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MY DEFINITION: Innovation is “taking an idea, and turning it into a solution that increases profitability”
Source: ME!
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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“…93 percent of executives say they know their industry will be disrupted at some point in the next five years…”
Source: Accenture Digital, February 2018 https://www.accenture.com/us-en/insight-leading-new-disruptability-index
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6% of Executives are Satisfied with their Innovation Performance
Source: McKinsey and Company
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Decreasing Average Corporate Lifespan
Source: INNOSIGHT Executive Briefing Sprint 2016
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Companies that Prioritize Innovation vs. Everyone Else
Source: Organization for Economic Co-Operative Development
Analyzing Innovation Across Business LinesHow does a BA Contribute to Innovation?
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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What are the goals of the Business Analyst?
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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Launching a product without knowing what its reception will be is gambling on your future.
BA’s use empirical evidence from small scale experiments and standard PM practices to determine:
– Will this project be successful?
– Where should the company invest its limited resources?
– How is the project progressing?
Duties of the Business AnalystTo Keep our Collective A**es Out of the Fire
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The Various Aspects of the Innovation S-Curve
Lead and Disrupt by Charles O'Reilly and Michael Tushman
These are the areas where BA input is invaluable
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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Continuous Waves of Innovation Keep Organizations Trending Up
Source: The Innovator’s Dilemma by Clayton Christensen
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The BA Toolkit for Innovation
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DEFINITION: “A metric is a quantifiable level of an indicator that an organization uses to measure progress.”
Business Analyst Body of Knowledge
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DEFINITION: “An indicator identifies a specific numerical measurement that represents the degree of progress toward achieving a goal, objective, output, activity, or
further input. ”
Business Analyst Body of Knowledge
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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DEFINITION: “A key performance indicator (KPI) … measures progress towards a strategic goal or objective.”
Business Analyst Body of Knowledge
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“The top priorities of a monitoring and evaluation system are the intended goals and effects of a solution, as well as
inputs, activities, and outputs.”
Business Analyst Body of Knowledge
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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Outcome focused / balanced view of an enterprise’s innovation portfolio
Drivers of value creation are understood, measured, and optimized to create sustainable performance.
Tangible objectives, specific measures, and targeted outcomes derived from an organization's vision and strategy.
Used at multiple levels within an organization– Enterprise (macro)– Departmental or function– Project or initiative
Balanced Scorecard
Strategic Planning and Management Tool
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How and Where Are These Metrics
Collected?
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The goal is to determine how successful a product will be without actually building the full product.
A great resource for this is Eric Ries’ The Lean Startup
– Mr. Ries focuses on a Build-Measure-Learnfeedback loop
– Build just enough capability to test– Test, looking at the metrics that drive
business growth– Learn from the results
Profit Scalability Pilots
A fancy title for Small Scale Experimentations
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Baseline Metrics Target Metrics Impact Metrics
Types of Metrics to Capture
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Time to market
Internally vs externally sourced ideas
Percentage of employee idea generation participation
Idea to innovation conversion rate
New customer segments entered
“Go/No Go” Percentage
Time from idea to prototype
New customers added
Metrics to Consider
Below are a few of our favorites to look at
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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Value Generated versus Projected Value
Number of innovations in the pipeline (at each stage)
Experiment phase timeframe
Number of experiments per M/Q/Y
Total number of ideas generated
Innovation rewards received
IP Created
New products / services “productionized”
Metrics to Consider (cont.)
And the beat goes on…
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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Discussion: Let’s Examine A Product Failure
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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Background: Ford bet big on the Edsel in the late 1950’s. Marketing teased (early and often) the new hotness. Executives took all the best features from their most profitable cars, but market trends changed during a lengthy production cycle.
Result: When the car was unveiled, few people bought it as the market had shifted. And issues with the car further deteriorated its name.
Ford Edsel
All of the best parts of every car…together
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
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Background: Automobile accidents are a leading cause of death in the United States. The idea of creating a self-driving can significantly reduce that number by removing the “human element” of driving.
Result: Experimental vehicles from Google, Apple, Uber and Tesla were all involved in high-profile crashes. The public currently has a low level of confidence in this technology.
Driverless Cars
Are we ready to nap during our commutes?
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
info@everevolving.biz | (302) 242-777833
Questions?
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
info@everevolving.biz | (302) 242-7778
Recap: Learning ObjectivesUnderstand the purpose and benefit to your organization for having a standard set of metrics to track project performance
Share our suggested set of metrics plus tips to eliciting and identifying others
Understand the different lifecycle phases that need to be accounted for
34
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
info@everevolving.biz | (302) 242-777835
Thanks for Joining
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
info@everevolving.biz | (302) 242-777836
Information
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
info@everevolving.biz | (302) 242-777837
I started Ever Evolving to help business leaders embrace disruption, because ready or not, change is coming. In today’s ever-evolving (pun intended) market place, business leaders are challenged to constantly make smart investment decisions in new products and service offerings.
Let’s Connect
- https://www.linkedin.com/in/steveapalmer/
- https://twitter.com/steveapalmer
- https://speakerhub.com/speaker/steven-palmer
- http://eepurl.com/c_k14r
About Me, Steve Palmer
The Ever Evolving Businessman
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
info@everevolving.biz | (302) 242-777838
Contact Us
Steve Palmer
(302) 242-7778
steve@everevolving.biz
https://everevolving.biz
Presented at Project Summit Business Analyst World Toronto 2019Copyright 2019. All Rights Reserved.
info@everevolving.biz | (302) 242-7778
Quantifiable levels of indicators measured at a Specific point, Threshold, or Range (useful if indicator is new)
When setting a metrics, it is important to have
– a clear understanding of the baseline starting point,
– resources devoted to improving the factors of the indicator
Scope of time can be annual, quarterly, or more frequent
39
Result of analyzing specific measures about a need, value, output, or activity, in graphical form.
A good indicator has six characteristics:
Clear: precise and unambiguous.
Relevant: appropriate to the concern.
Economical: available at reasonable cost.
Adequate: provides a sufficient basis on which to assess performance.
Quantifiable: can be independently validated.
Trustworthy and Credible: based on evidence and research.
Metrics vs. Indicators
“Anything easy ain’t worth a damn!” — Woody Hayes
IndicatorMetric
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Sample Balanced Scorecard
Objectives Goals Indicators Initiatives
Financial Additional revenue We will make an additional 500k revenue by the end of Q2
10-kFinancial statements
Develop new widgets for ABC Inc.
Customer Create a new segment in the Mid-West
We will sign 2 key and 5 major clients in major metropolitan areas in Ohio, Michigan, and Indiana
Statements of workContractsInvoices
Mid-west expansion with the opening of a Detroit office
Internal Process Matrix Northeast Sales and Marketing dept. until full time Mid-west team is hired
Higher 2 additional sales team members in New York to support Mid-west expansion
Employee roster Establish key clients in the Mid-West
Learning and Growth Take ownership of our mobile app Mobile app support and expansion 100% performed by internal employees by Q1 2020
Skills matrix Make mobile development a part of our core business
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