Managing successful software innovation in NZ A retrospective and a look at complexity
Holger Spill Ministry for Primary Industries
Co-AuthorDavid MasonVictoria University of Wellington
NASA, via Wikimedia Commons
How do you manage innovation?
Innovation is a process with a number of distinctive features which have to be managed.
Theoretical conception
Technical invention
Commercial exploitation
INNOVATION
Creation of new knowledge, dominated by universities and large science-based
organisations
Conceptual framework of innovation
Science and technology
base
Technological developments
Needs of the market
Technology development,dominated by organisations
Consumers express theirneeds and wants
Slack and Innovation
Managing uncertainty is a central feature of managing the innovation process.
Most software is not a predictable or mass manufacturing problem.
The details are overwhelmingly complex for people.
Various forces lead to changes or enhancements in requirements.
Software is new product development
New product development process is a sub process of innovation.
Ideas & Trends Research Development Commercialisation
Issues in Software Development
• Software development methods• Managing developer teams• Experimentation during NPD
NPD of Innovative Software
• How to manage • How it affects the process
Kinds of Complexity
• Software is infinitely malleable• Software is intangible• Few barriers to setting up business• Start up costs are low• Consumers play a different role• A particular programmer can
have a huge impact.
Challenges
"All human activities are events, and events have duration.“
Time Span is used to measure the complexity of the task.
What is Complexity?
TimeTime
# of Decisions# of Decisions
Unknown FactorsFactors
Strategic PlanningTactical
Market ResponseFeedback
Technological outcomesTechnology
Ambiguity
Brown, 2011Elliott Jaques (1917 – 2003)
What is technically possible
A. J. Berkhout, 2008
Scientificresearch
Technologicalchange
Productdevelopment
What is socially desirable
A. J. Berkhout, 2008
Scientificresearch
Markettransitions
Productdevelopment
The Cyclic Innovation Model
”The role of entrepreneurship in innovation,” by A. J. Berkhout, D. Hartmann and P. Trott, 2011, International Journal of Entrepreneurship and Innovation Management, 14(1).
The Cyclic Innovation Model
”The role of entrepreneurship in innovation,” by A. J. Berkhout, D. Hartmann and P. Trott, 2011, International Journal of Entrepreneurship and Innovation Management, 14(1).
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NZ Sample Firms - High Tech Software Companies
Business Size Age Cust Product
DigitalDeal Large Established C, B Online TradingWebfabrik ME Start up B, C Manuf. Software
CloudWay ME Start up B, C Cloud Services Medimage SME Start up B, PS Medical Imaging
Cybersoft Large Established PS, B, C Fraud analysisFinancialware Large Established B, C, PS Finance toolsBizware SME Growth B Management toolsInfotree SME Start up B Business Software
B=business, C=consumer, PS=public sector
Measuring Complexity - Simplistic
Berkhout, Hartmann & Trott, 2011
Science
Product
Technology
Market
2-level company
Science
Product
Technology
Market
3-level company
Measuring Complexity - Granular
Science
Product
Technology
Market
Company AThese 2-level companies do not have the same complexity.
Science
Product
Technology
Market
Company B
HypothesisMatching organisations will have matching management styles.
Company A
Company B
Company C
Company D
Non-Matching organisations will have different management styles.
Mapping Complexity
Company Technology Science Product Market
Bizware Med Low Med High
Webfabrik Med Med High High
Financialware Med Low High Med
Cloudway High Low High High
Medimage Med High Med Low
Cybersoft Med High Med Low
Digitaldeal Med Low High Med
Infotree Low Low High High
Science Complexity
Company Technology Science Product Market
Medimage Med High Med Low
Cybersoft Med High Med Low
New software products which are spin offs of world-leading academic research.
Medimage• Well-established company• Large customers and market pull• High levels of quality and reliability• Customer led
Cybersoft• Newcomer• Large customers and market pull• High levels of quality and reliability• Customer led
Use a formal specification-driven software development process
Product Complexity
Company Technology Science Product Market
Financialware Med Low High Med
Digitaldeal Med Low High Med
Local leaders with an edge.
Financialware DigitalDeal
Use a flexible iterative development process
• Constant extension, optimisation and modification …• Spin off products …• Science is only used to understand online behaviour …
Dissimilar Complexity
Company Technology Science Product Market
Cloudway High Low High High
Cybersoft Med High Med Low
Cloudway• Challenging international competition• New untried products• Keeping up with fast paced market• Technology Led
Cybersoft• Local niche market• Large customers and market pull• High levels of quality and reliability• Customer led
Constant Experimentation Stage Gated Process
Emerging Themes
The CustomerA special role in new software.Negotiating priorities. Mutual discovery. Delivery and Desirability.
WorkflowAll worked in iterations. Could be within waterfall, agile, stage gated.Lightweight flexible specifications.
TeamsFour to seven people.Unsupervised, self managing, goal directed.
FreedomFree time to develop personal projects. Internal competitions for new features.
Maturity
Established
DigitalDeal, Financialware, Cybersoft
At least one established product
Well defined workflows, Efficiency
vsCreativity
Openness, self managed teamsEncouragement of experimentation
Emphasis on team fit
Startups
Webfabrik, Infotree, Cloudway, Medimage
Chasing emerging markets
Flexibility, adaptation, scanning
vsActive support of team members
Intervention to teamsNetworking
Outlier
Bizware
Working for your customer's customer
Governance of processMutual discovery of needs and
featuresDeveloping close trusting
relationships
TheCyclic Innovation Model
as a lens for analysis
Insight into managing innovation
A measure for
Complexity
Thanks for listening…
Holger Spill Ministry for Primary Industries
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