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© 2012 IBM Corporation This material was used by IBM during an oral presentation; it is not a complete record of the discussion. Useful or just cool? On what makes innovations great Peter Bjellerup – GBS S&T CoC for Social Business

Useful or just cool - from just an invention to a great invention

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A short presentation based on my experience of convincing companies and users of changing habits, using new tools and features. It all boils down to them understanding What's In it for Them. My public IBM profile: http://ibm.co/bjellerup

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Page 1: Useful or just cool - from just an invention to a great invention

© 2012 IBM CorporationThis material was used by IBM during an oral presentation; it is not a complete record of the discussion.

Useful or just cool?

On what makes innovations great

Peter Bjellerup – GBS S&T CoC for Social Business

Page 2: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

Page 3: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

Two questions keep coming back

Why should I use it?

Why should I pay for it?

Page 4: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

There are only two kinds of innovations

1. Make something possible that was not before

2. Make something better that was possible before

Page 5: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

People want ROI – Return on Investment. But on which investment?

Costs– Initial costs– Operational costs– Knock-on costs and investments

• Financial, technological, organizational....

Time invested– In learning– In changing habits (your’s and others you depend on)– In bug resolution and de-confusing

Risk taking– Being an early adopter

Page 6: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

When do you get that return on investment?

When you power on?– Sometimes, but rarely

When people use the invention?– Most of the time– Instead of the predecessor.....

Page 7: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

Therefore, inventions and investments depend on people wanting to use them, not only on them becoming available

The purpose of IT Products is to produce benefits for the companies that provide them

Business benefits

Individual benefits

BUSINESS

USERS

The audience use the IT Products because this use produce benefits for them, not because of the benefits for the company

The reasoning in this and the following slide, on business and individual benefits, is based on “Effektstyrning av IT” by Ingrid Ottersten and Mijo Balic 2004, ISBN 91-47-07450-7. Only available in Swedish as far as I know

Page 8: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

Therefore, inventions and investments depend on people wanting to use them, not only on them becoming available

The definition of the expected benefits is made from the company’s perspectiveBusiness

benefits

Individual benefits

BUSINESSDefinition of benefits

Realization of benefits

USERS

But for the company to realize its benefits, it is necessary that the users want to use the IT Product to realize their benefits

Page 9: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

Therefore, inventions and investments depend on people wanting to use them, not only on them becoming available

The possibility of realizing any benefits depend on the availability and functionality of supporting technology.

Business benefits

Individual benefits

USERS

BUSINESS

TECHNOLOGY

Definition of benefits

Realization of benefits

Page 10: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

Therefore, inventions and investments depend on people wanting to use them, not only on them becoming available

The three key factors for success of the IT Product bring each their components to the final mix to be assessed.

Business benefits

Individual benefits

USERS

BUSINESS

TECHNOLOGY

Definition of benefits

Realization of benefits

• Purpose, Ambition• Financial framework• Decisions, Policies• Responsibility

• Individual goals• IT Maturity• Mindset:

– References– Context

• Functional enablement• Resource requirements

– Initial– Running

• Integration• Delivery performance

As in the original definition of an IT Product, assessing an existing one requires an understanding of these factors and their components, albeit not as deep

Page 11: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

Conclusion: The success of your invention depends on the willingness of people to want to use it (most of the time)

And that fit starts with your ability to understand their needs and their context their way – to ”walk a mile in their shoes” – also called Empathy

Page 12: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

Competition is more than just choosing between suppliers

Different supplier of a similar offering Which travel agency shall I use for my ski trip by bus this winter?

Different technology to fulfil the same need Or should I go by air instead?

Different approach to satisfy the same need Ooops. My fiancé wants to go to the beach instead

Different priorities to use limited resources (time, money)

But maybe we could save the money to buy a flat together?

Page 13: Useful or just cool - from just an invention to a great invention

© 2012 IBM Corporation

Summing up

Why should people use and pay for your invention?

How and when does it pay back on investments

Do you start from the need or from the feature?

What’s in it for the user?

What is the extended competition like?