Innovation and Transformation Tools

Synopsis

You want to transform your business, but how do you ensure your innovations succeed? We'll explain tools that execs can use for innovation and transformation the right way, including an innovation ambition matrix, the Kubler-Ross Change Model curve, a SCAMPER Mind Map, Maturity Assessment Scoreboards and the Phase-Gate Process, all of which you can download and customize for your needs.

Questions and answers

How can companies implement the Phase-Gate Process in their business transformation strategies?

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Companies can implement the Phase-Gate Process in their business transformation strategies by following a series of steps. First, they need to define the project and its objectives. This includes identifying the need for change and the desired outcomes. Next, they should conduct a feasibility study to assess the potential benefits and risks of the project. If the project is deemed feasible, it moves to the next phase, which involves detailed planning and design. This is followed by the development phase, where the plan is executed and the transformation begins. Each phase is separated by a gate, which serves as a checkpoint to review progress and decide whether to move forward, make changes, or terminate the project. The process ends with a post-implementation review to evaluate the success of the project and identify lessons learned for future projects.

How does the Maturity Assessment Scoreboards align with digital transformation initiatives?

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The Maturity Assessment Scoreboards align with digital transformation initiatives by providing a structured framework to evaluate the current state of digital maturity within an organization. It helps in identifying the areas of strength and weakness, and provides a roadmap for improvement. The scoreboards assess various aspects such as technology adoption, digital skills, leadership, strategy, and culture. By doing so, it ensures that the digital transformation initiatives are aligned with the organization's overall strategy and objectives.

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Outcome

Innovation isn't only about technology or products. Massive company-wide efforts can affect other internal processes that aren't obvious from the naked eye. To avoid tunnel vision focused on an end goal, these tools help execs consider how potential changes impact their workforce, workflows and processes in addition to services or products. It's helpful to think of transformation as an iterative process that joins together internal and external efforts. For instance, you could develop an idea for an innovation, but throughout the development process, the idea will change. This new idea will change the workflow, and then the workflow will change to fit the new idea. In this way, the tools in this framework are meant to help execs take the right actions to successfully carry out the right ideas.

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What are the practical applications of the Innovation and Transformation tools in the technology industry?

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Innovation and Transformation tools have several practical applications in the technology industry. They can be used to streamline internal processes, improve workflows, and enhance services or products. These tools can help in identifying potential changes that could impact the workforce and the existing processes. They also assist in managing the iterative process of transformation, where an idea evolves through development, changes the workflow, and then the workflow adapts to the new idea. This helps in ensuring that the right actions are taken to successfully implement the right ideas.

How can companies implement the Innovation and Transformation tools in their operations?

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Companies can implement Innovation and Transformation tools in their operations by considering them as an iterative process that combines both internal and external efforts. They should start with an idea for innovation and allow it to evolve throughout the development process. This evolution will inevitably lead to changes in workflows and processes, which should be adapted to fit the new idea. The tools in this framework are designed to help executives take the right actions to successfully implement the right ideas. It's also important to consider the impact of these changes on the workforce, workflows, and processes in addition to services or products.

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Tool highlights

Innovation ambition matrix

When a business begins the innovation process, it needs to start with a target goal or big idea. So how do you know what ideas to undertake and how many resources to allocate to each?

Facebook has been around for 17 years, and is known primarily as a social media platform. Over the years, additional products and services have been rolled out like Facebook messenger, marketplace, and even dating. However, after a wave of controversy this year, CEO Mark Zuckerberg announced the company would rebrand to "Meta" and focus its company on pursuing the creation of the "metaverse." Why?

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How does the 'SCAMPER Mind Map' contribute to the ideation process in business transformation?

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The 'SCAMPER Mind Map' is a creative tool used in the ideation process during business transformation. It stands for Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse. Each of these prompts encourages you to think differently about a product, service, or process, potentially leading to innovative ideas. For example, 'Substitute' might make you consider what elements of your product or service could be replaced to improve it, while 'Eliminate' could lead you to simplify your processes. By systematically considering each aspect of SCAMPER, you can generate a wide range of ideas for transforming your business.

How can the 'Kubler-Ross Change Model curve' be applied in the context of Facebook's rebranding to 'Meta'?

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The 'Kubler-Ross Change Model', also known as the 'Five Stages of Grief', can be applied to understand the reactions to Facebook's rebranding to 'Meta'. The stages are Denial, Anger, Bargaining, Depression, and Acceptance. Initially, there might be Denial, where users and stakeholders find it hard to accept the change. This could be followed by Anger, especially if the change is not well-received. Bargaining might occur when users try to hold on to the old brand. Depression sets in when the reality of the change sinks in. Finally, Acceptance happens when users and stakeholders start to embrace the new brand and its vision. It's important for Meta to manage these stages effectively to ensure a smooth transition.

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Before we answer that, an innovation ambition matrix details the levels of innovation a company goes through. Companies don't necessarily go through innovation in this order and don't have to go through all these, but it's a helpful guide to plot innovation strategies to chart a successful transformation.

These three stages are assessed based on where to play, i.e. if the innovation will play out in existing markets or explore new ones, and how to win, which covers the strategy either to utilize existing products and assets or develop new ones.(Slide 19)

Core innovations are any changes a company undertakes to optimize what it already offers. These would be adjustments to core services, customers and products. For example, Facebook started out with core product innovations as it attempted to optimize its original platform with groups and pages, third-party integrations and advertiser tools.

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Adjacent transformations are expansions from existing businesses into new ones. In Facebook's case, this would be an effort like the acquisition of Instagram or WhatsApp, which the company paid $19B to acquire.

Transformational changes are an effort to develop breakthrough products in an entirely new market. In Facebook's case, this is Meta - CEO Mark Zuckerberg wants to be first to a new market and tackle it at scale with the new products they are developing like Project Cambria set to launch next year and ReSkin, which enables super precise touch movements via a new fabric.

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What are the potential implications of Meta's heavy investment in VR technology for the future of business transformation?

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Meta's heavy investment in VR technology signifies a shift in the business transformation landscape. It suggests that businesses may need to adapt to new technologies like VR to stay competitive. This could lead to a greater emphasis on digital and virtual experiences in business models. It also indicates that businesses may need to invest heavily in new technologies, even if the ROI isn't immediately clear, to ensure long-term survival and growth. However, such a transformation also comes with challenges, such as the need for significant resources and the risk of technology not being adopted as expected.

How can the SCAMPER Mind Map and Maturity Assessment Scoreboards aid in business innovation?

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The SCAMPER Mind Map and Maturity Assessment Scoreboards are tools that can significantly aid in business innovation. The SCAMPER Mind Map is a creative tool that helps businesses generate ideas for new products or services by encouraging them to think about how they can Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, or Reverse existing processes or products. This can lead to innovative ideas that may not have been considered otherwise. On the other hand, Maturity Assessment Scoreboards help businesses assess their current level of maturity in various areas, identify gaps, and plan for improvement. This can guide innovation efforts by highlighting areas where innovation is most needed and providing a benchmark against which progress can be measured.

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Allocation and ROI for transformational changes are both high. Ideally, you want to achieve an allocation of resources with the highest ROI. In some cases, in order to get high resources, you need to invest a lot. For instance, Meta will spend $10 billion next year and double its workforce to 20,000 engineers as part of the metaverse rebrand. Mark Zuckerberg believes that by the end of the decade, if not by 2025, VR tech could be better for almost every use case than phones and laptops — and it's a bet worth taking.

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What implications could Apple's VR headset release have on Meta's control over the new medium?

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The release of Apple's VR headset could potentially disrupt Meta's control over the new medium. If Apple's VR headset is successful, it could become a major entry point for users into the virtual reality space, thereby reducing Meta's control over user access. This could lead to a shift in power dynamics in the VR market, with Apple gaining a significant advantage. Furthermore, Apple's strong stance on privacy could attract users who are concerned about data security, further challenging Meta's dominance.

How might the feud with Apple over new privacy controls impact Facebook's ROI?

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The feud with Apple over new privacy controls could potentially impact Facebook's ROI in several ways. Firstly, it could limit Facebook's ability to target ads effectively, which is a significant part of its revenue model. This could lead to a decrease in ad revenue. Secondly, it could affect user trust and engagement, which could also impact Facebook's bottom line. However, it's also possible that Facebook could navigate these challenges successfully and mitigate potential negative impacts.

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If Facebook can control the "entry points" into this new market, the ROI could be very fruitful. Despite the company's 3 billion users across all its social platforms, it doesn't control the entry points to access its apps, and has begun to feud with Apple over new privacy controls for its App ecosystem. If Meta can beat Apple's own VR headset, which is expected to be released in late 2022, then it has a chance to control this new medium — if it ever truly takes off.

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Can you name a company that could benefit from the Innovation and Transformation tools and explain how?

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A company that could benefit from the Innovation and Transformation tools is Apple Inc. Apple is known for its innovation and constantly needs to transform to stay ahead in the competitive tech industry. The idea evaluation canvas mentioned in the content could help Apple assess new concepts for market potential and strategic alignment. This could ensure that their resources are not wasted on ideas with zero return, ultimately leading to better ROI.

How can the idea evaluation canvas in this framework align with a company's digital transformation initiatives?

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The idea evaluation canvas in this framework can align with a company's digital transformation initiatives by providing a structured approach to assess the potential of new ideas. It helps in identifying ideas that not only have great market potential but also complement the strategic goals of the company. This ensures that the digital transformation initiatives are in line with the company's overall strategy and objectives. Furthermore, the canvas ensures that the ideas are feasible to execute, thereby reducing the risk of investing resources in initiatives that may not yield the desired return.

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By the way, to make sure you're on the right track to develop the right idea, and not allocating all your resources for zero return, we have an idea evaluation canvas also provided in this framework to assess your concept for great market potential and complement your strategic goals and ultimately be feasible to execute and carry out. Just check out the link in the description for more. (Slide 9-10)

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Kubler-Ross change model curve

Now that you have a plan on how to innovate, you'll need strong managerial leadership to guide your team through this period of transition. Change management is hard. Most recently, big tech companies like Apple and Google have struggled to manage the change to remote work, and have feuded publicly with their employees over expectations about what days they will have to return to the office to work. Apple wants employees to come in on specific days with a minimum of three days per week, while many employees want to fight for flexibility and autonomy.

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How can anticipation of change in an organization lead to increased productivity and morale?

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Anticipating change in an organization can lead to increased productivity and morale by allowing management to prepare and support their teams through the transition. This preparation can help mitigate the initial shock, denial, and frustration that often accompanies change, preventing a slump in productivity and morale. By anticipating change, management can provide the necessary resources and encouragement to help the team overcome the initial hurdles and adapt to the new situation. This proactive approach can also foster a culture of resilience and adaptability, leading to increased productivity and morale in the long term.

How does the Kubler-Ross Change Model curve help in managing the human element during the innovation process?

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The Kubler-Ross Change Model curve helps manage the human element during the innovation process by providing a framework to understand and anticipate the emotional responses to change. The curve outlines stages of initial shock, denial, and frustration, which can lead to a slump in productivity and morale. By understanding these stages, management can provide support and encouragement to help the team overcome the depression hurdle. This leads to the experimentation stage, where individuals and teams start to work with the new situation, eventually integrating the new workflow throughout the organization.

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The Kubler-Ross Change Model Curve is useful for execs as their teams undergo periods of transformation like tech companies and remote work. Psychiatrist Kubler-Ross developed this curve to highlight the emotional stages everyone goes through when met with a new challenge. It explores the human psychology of change more in-depth than your typical change management curve as each stage covers specific human emotions.

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Even if changes are rational and realistic, this curve explains how the human element of stakeholders involved can still disrupt the innovation process. The initial shock, denial, and frustration around the change will inevitably lead to a depressive slump in productivity and morale. Through anticipation of this change, management can allow the team space to get over the depression hurdle and encourage them as the team's confidence rises. This makes way for the experimentation stage, which naturally leads individuals and teams to an ultimate determination to work with this new situation. From that point on, the new workflow is integrated throughout the organization and becomes second nature.

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If transformation and the change process are managed successfully, it will create alignment between teams, optimize communication between stakeholders, develop the right capability to share knowledge and spark innovation.

SCAMPER mind map

Now that you've managed the transition of new innovation, how do you maintain a culture of innovation?

The robotics company Boston Dynamics has produced and developed dynamic robots like these for over 30 years. The company, founded by Mark Raibert, was originally an offshoot from his work at MIT and Carnegie Mellon and has been owned by multiple parent companies, including Google, SoftBank, and now Hyundai.

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In addition to its clever PR videos, Boston Dynamics has continuously improved and innovated its robotic technology over the years, and its Spot and Stretch are the closest to commercial its robots have ever been. To develop your own perpetual innovations, SCAMPER is a free-flowing mind map that execs can use as an ideation method to facilitate continuous improvement.

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To use SCAMPER, take an existing product or service and ask a series of brainstorm questions in the following order: What materials, processes, rules, products, or integrations could be substituted to improve this product? What would happen if you combine this product with another idea, or with another objective? How could you adopt a new purpose to this product or service? How could you modify this product to maximize its value or minimize costs? Could this product be put to use in another industry? Could you eliminate, simplify or streamline this product or its features? What if you reversed your current workflow processes, even doing things in the exact opposite order you're trying to do them now?

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These brainstorm questions are useful for core ideation and to find creative solutions to unusual problems and continuously improve, iterate and innovate across your business.(Slide 22)

Maturity assessment scoring

Your business now has a culture of continuous innovation. How do you assess what areas need further improvement?

Digital transformation has been a major goal for many legacy businesses as the world has increasingly gone online. Two areas you might not think of first when it comes to digital transformation? Sports and beer. Anheuser-Busch, who owns Budweiser as well as other brands like Stella and Corona, established a research center for this purpose. Developments at the digital R&D department led to low-alcohol canned wine, a beer delivery app and a beer vending machine that made over $1B in sales. Another company, the San Francisco 49ers, had its own digital transformation with a new venue management platform to help the team visualize data to improve all operations across cashiers to clogged toilets.

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A Maturity Assessment Scoring Chart can be used by execs to score their digital maturity. After you complete a series of questions across customer experience, workplace, and information technology (Slide 26-29), review your scores to discover your relative strengths and weaknesses with this scoreboard.(Slide 30)

In this example, the company's IT infrastructure is rated high, which means resources don't need to be allocated there. This could be a forte to use to your advantage. By contrast, the digital maturity of operations is low, which means you could use this assessment to dedicate resources to improve digital operations. This could be what the 49ers concluded which led to the development of their venue management platform.

Questions and answers

What role does a team manager play in the decision-making process of the phase-gate framework?

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In the phase-gate framework, a team manager plays a crucial role in the decision-making process. After each phase, the team manager is responsible for evaluating whether key milestones have been met. These milestones validate the project's priorities. Based on this evaluation, the team manager makes a decision to either move forward to the next phase or stay in the current phase for further refinement. This ensures that the project aligns with the business strategy, provides customer benefit, and utilizes appropriate technology.

How does the phase-gate framework assist in the process from ideation to launch of a business strategy?

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The phase-gate framework assists in the process from ideation to launch of a business strategy by providing a structured approach. It involves different phases, each with specific milestones that need to be achieved before moving to the next phase. This ensures that key priorities are validated at each stage. For instance, in the first stage, milestones like business strategy, customer benefit, and technology to be developed need to be made before progressing to the next phase. This framework helps in making informed decisions whether to move forward or stay, thereby reducing risks and improving efficiency.

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Phase-gate process

You should now have a pretty clear view on the concepts behind business innovation and transformation. So how do you execute and implement these tools?

The phase gate process is a tool that large companies rely on to execute their own innovations. It is an operational roadmap to move innovation from concept to launch. For instance, the company Lego uses stage-gate as its core development process to develop innovative new products, expanding from plastic blocks into video games and movies as well as robotics and now sustainable research and development for bio-plastics as part of a $400 million effort.

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To use the phase-gate framework, follow the process outlined on this slide to take any innovation and transformation from ideation to launch. Between each phase, key milestones have to be hit to validate key priorities. Then, a decision is posed to either move forward or stay by the team manager. In the first stage, key milestones like business strategy, customer benefit, and technology to be developed need to be made before you move on to the next phase to flesh out your early concept.

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Once you pass through your business case and validation stages, you enter the back-end[bold] phases that are all about development and launch. Execs implement their innovations from [bold]setup to concept to pilot development, prototype and finally launch. Implement this successfully to turn any idea into reality — or save countless headaches developing something all the way to production that shouldn't have even made it past the first phase.

For more Innovation and Transformation Tools , you can download this full framework. You'll gain more tools like an Innovation Canvas, Idea Evaluation, Execution Framework, Innovation Value Chain Assessment and Customer Journey Canvas which you can customize to your needs.