1 / 21

MBA 8125: Innovating Business Processes

MBA 8125: Innovating Business Processes. Authors: Mike Gallivan Lars Mathiassen Richard Welke Adapted by C. Stucke . Agenda. Innovation Process innovation Case discussion. Topic one. Innovation. What is innovation?. Dictionary-style …

keona
Download Presentation

MBA 8125: Innovating Business Processes

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MBA 8125:Innovating Business Processes Authors: Mike Gallivan Lars Mathiassen Richard Welke Adapted by C. Stucke

  2. Agenda • Innovation • Process innovation • Case discussion

  3. Topic one Innovation

  4. What is innovation? • Dictionary-style … • The act or process of inventing or introducing something new • Something newly invented or a new way of doing things • The process of adopting a new thing, idea, or behavior pattern into a culture • The act of starting something for the first time; introducing something new • Authors on innovation … • Leifer, et.al. (Radical Innovation, HBP, 2000) • Producing an outcome with: • An entirely new set of performance features • Improvements in known performance of 5x or greater • A significant (30 reduction) in cycle-time and/or cost • James March • Exploration vs. Exploitation • Yours? …

  5. Who is innovating? “Midlevel managers play a crucial role in every company’s innovation process, as they shepherd partially formed ideas into fully fledged business plans in an effort to win funding from senior management. It is the midlevel managers that decide which ideas … they support and carry to senior management” From C. Christensen: The Innovator’s Solution, HBP, 2004

  6. What types of innovation? Sustaining innovation (exploitation): Successful companies are good at responding to evolutionary changes in their markets • Makes a product or service perform better in ways that mainstream customers already value • Typically developed and introduced by industry leaders Disruptive innovation (exploration): Where they run into trouble is in handling revolutionary changes in their markets • Creates entirely new market by introducing a new product or service that mainstream customers initially sees as worse • No company has a routine for handling them • More difficult for large, mature companies, easier for smaller, immature companies • Creating change capability • Creating new capabilities internally • Creating capabilities via a spinout organization • Creating capabilities by acquisition Adapted from Christensen & Overdorf (2000)

  7. Resources • Tangible and intangible • High quality resources facilitates change Processes • Formal and informal • Processes are not meant to change • Disabilities to change in less visible processes Values • Basis for judgment at all levels • Clear/consistent values facilitate change • Two key values influence change capability … How: • Acceptable gross margins judged • Interesting opportunities judged Which capability to change? Which forms of change are your organization capable of handling?

  8. Capabilities evolve over time The factors defining an organization’s change capabilities evolve over time: • Begin with resources (primarily people) • Departure/addition of just a few people can have dramatic effects • Some fail to ever develop processes • Consistency, quality, and productivity suffers • Move to visible, articulated processes and values • Founders impact initial processes and values • Success becomes independent of individuals • Repeatability • Migrate to shared and invisible culture • Enables people to act autonomously and consistently • Can both enable or inhibit change Change easier Change more difficult

  9. Fitting tactics to needs Innovation fit with processes Innovation fit with values What’s a “heavyweight” team?

  10. When & how to innovate? (1) From: “Darwin and the Demon” (HBR, Geoffrey Moore, Jul-Aug 2004)

  11. When & how to innovate (2) Surface modifications toimprove customer exper. Improve customer-touching processes Main Street (early) Established offers inexisting markets tonext level Reframe establishedvalue proposition Existing technology to new markets Restructure industryrelations

  12. Topic two Process Innovation

  13. Process & innovation Business Context Business partners Market Techno- logy How is innovation organized to facilitate enhanced process performance? Process Innovation • Why are processes created? • How are processes managed? • What are the defining elements? • How are the elements related? • Why is innovation needed? • How is innovation managed? • What are the defining activities? • How are the activities related? How does business process configuration influence and shape innovation?

  14. Degrees of change Adapted from Thomas H. Davenport: Process Innovation: Reengineering Work Through Information Technology, Harvard Business School Press, 1992.

  15. Outcome and Process Focus Innovation fit with processes Innovation fit with values Radical versus Incremental Relates to both outcomes and Process and can be combined

  16. BPImanagement BPI project BPI project BPI project BPI project Managing the BPI project portfolio • Prioritize, coordinate, and monitor portfolio of BPI projects • Focused BPI projects

  17. Building innovation capability • TYPES • 1. Leadership-driven capacity: • Individuals see opportunity and run with it • 2. Structural-driven capacity: • Mechanisms are put in place to enable change • 3. Organic capacity: • Employees see innovation as an integral part of their job • INGREDIENTS • The ability of people within the organization to innovate • The desire of people to act in an innovative manner • An environment that enables and empowers innovation Is your organization Innovative? Innovation is like jazz -- not random; requires improvisation Creativity is just having enough dots to connect Adapted from Shapiro: Innovate your organization. The 24/7 Innovation www.24-7innovation.com.

  18. Innovation and improvement Adapted from Beechner & Hamilton: “Infinity: A Model for Organizational Excellence” (www.paragonstar.com)

  19. IDEAL improvement model Document & analyzelessons Reviseorganizationalapproach Define processes & measures Plan & Execute pilot plan Execute, & Track installation INITIATING ACTING LEARNING Establish processaction teams &action plans ESTABLISHMENT Stimulus for improvement Set context &establishsponsorship DIAGNOSING Establishinfrastructure Set strategy & priorities Appraise &characterizecurrent process See also: CMM CMMI Develop recommendations& document results McFeeley, B. (1996). “IDEAL: A User's Guide for Software Process Improvement”, CMU/SEI-96-HB-001. www.sei.cmu.edu

  20. Critiquing the as-is process • Rethink • Reconfigure • Resequence • Relocate • Reduce • Reassign • Retool 7R’s of process innovation Adapted from Stephen ShapiroThe 24/7 Innovationwww.24-7innovation.com

  21. Reviewing the BPI triangle Steven Alter (2002). Substitute: - Work system  Business process - Business process  Work practices • 1. Create a snapshot of the business process • 2. Find problems and opportunities for improvement • 3. Explore effects of proposed process changes Customers Products & Services Environment Strategies Work Practices Participants Information Technology Infrastructure

More Related