Don’t just teach me, help me learn faster Perry Nouwens Philips IT Innovation December 13, 2013
Sep 14, 2014
December 13, 2013 Philips IT Innovation 1
Don’t just teach me, help me learn faster
Perry Nouwens Philips IT Innovation December 13, 2013
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 North
America Other Mature
Geographies
31% 9% 35%
Growth
Geographies3
43%
€23.5 Billion
Sales in 2012. Portfolio consists of ~70% B2B businesses
115,000+ People employed worldwide in over 100 countries
20% 37%
Since 1891 Headquarters in Amsterdam, the Netherlands
8% of sales
invested in R&D in 2012 59,000 patent rights, 35,000 trademark rights, 81,000 design rights
Western Europe
25%
$9.1Billion
Brand value in 2012
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At Philips we strive to make the world healthier and more sustainable through innovation
Improving people’s lives through meaningful innovation
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What is innovation?
“Bekwaame doctor en experimentator gezocht.” “Skilled docter and experimenter wanted.”
Philips Natuurkundig Laboratorium, founded by Gilles Holst & Anton Philips, 1914
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Let’s be honest: You have no idea what’s going to happen to your industry Dave Gray - The Connected Company
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When knowing is not working anymore,
experimentation
needs to be part of your transformation strategy
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Philips IT & Innovation
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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...
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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
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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
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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
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Philips IT Innovation - Our journey Facilitate businesses to innovate via Information Technology
Standardization
Exploration Transformation
Exploitation
Efficiency Business Growth
Lear
nin
g P
red
icta
bili
ty
Enterprise IT
Customer IT (2013)
IT Innovation (2010)
“DevOps”
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Philips Digital Accelerator
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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
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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
To digital propositions • Value creation in use • Emergent design, user centric • Open participation • Continuous development • Launch and learn
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Digital Accelerator – How we do it Rapid Co-Creation, by Philips Design
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Competences required for Innovation
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Competence is the enemy of innovation
Competence versus possibility
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
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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. @Explorer, September 2013
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A culture of experimentation
• 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
“The only way to win is to learn faster than anyone else”
Philips as a startup in 1895, Philips Museum
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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
Did you ever ask to your team:
How can you test this assumption as fast and cheap as possible?
Source: The Lean Startup
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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. We aim to deliver validated requirements, proven via experiments, documented as user stories, prioritized on business value.
In order to <customer value, business value>
I predict that <critical assumption>
When I <run experiment>
As a <who>
I need to <what>
In order to <why>
definition of proof
definition of done
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Example (Air Purifier)
In order to deliver the promise of clean air
I predict that consumers will change their filters on time
When I provide them insight in their
indoor air quality via a mobile application
definition of proof
As a Air Purifier owner
I need to 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
In order to replace my filters on time
definition of done
Starting hypotheses
Validated requirement
prototype to collect customer feedback
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• Business immersion
• Hypotheses
• Value Proposition
• Target audience role
play
• Scenario Sketching
• Customer Experience
Flow
• UI/UX Requirements
• Roadmap
• Mobile UX Design
• Mobile App Design
• Connectivity
• Technical
Development
• Technical
Development
• Business Modeling
• Data Proposition
Development
• Putting everything
together
• Consumer Testing
• In-depth user
interviews
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Competences for experimentation Building strong teams to run disciplined experiments
• Design Thinking - understanding empathy, creativity, meaningful innovation
• Lean Startup - finding minimum viable product, learning experiments
• Agile Development - delivering self-organizing teams, iterative development
understanding
finding delivering
Building a system of continous learning
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The IT professional in the connected enterprise
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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?
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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
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Questions?
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Thank you
Perry Nouwens
My inspirators: Seth Godin Dave Gray
Alex Osterwalder Steve Blank
Eric Ries and a lot of my cross-functional Philips colleagues