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Peter Bjellerup – GBS S&T CoC for Social Business




Useful or just cool?

On what makes innovations great




This material was used by IBM during an oral presentation; it is not a complete record
of the discussion.                                                                       © 2012 IBM Corporation
© 2012 IBM Corporation
Two questions keep coming back


 Why should I use it?

 Why should I pay for it?




                                 © 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




                                                    © 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




                                                             © 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.....




                                             © 2012 IBM Corporation
Therefore, inventions and investments depend on people wanting to
use them, not only on them becoming available


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



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


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
                                                                                                                                   © 2012 IBM Corporation
Therefore, inventions and investments depend on people wanting to
 use them, not only on them becoming available

Definition
of benefits       BUSINESS                        The definition of the
                                                  expected benefits is
                                                  made from the
     Business                                     company’s perspective
     benefits



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

                                                               © 2012 IBM Corporation
Therefore, inventions and investments depend on people wanting to
 use them, not only on them becoming available

Definition
of benefits       BUSINESS                        The possibility of
                                                  realizing any benefits
                                                  depend on the
     Business                                     availability and
                                                  functionality of
     benefits
                                  TECHNOLOGY      supporting technology.




     Individual
      benefits


Realization        USERS
of benefits

                                                              © 2012 IBM Corporation
Therefore, inventions and investments depend on people wanting to
 use them, not only on them becoming available

Definition
                             • Purpose, Ambition
of benefits       BUSINESS                                           The three key factors for
                             • Financial framework
                             • Decisions, Policies                   success of the IT
                             • Responsibility                        Product bring each their
     Business                                                        components to the final
                                                                     mix to be assessed.
     benefits
                                             TECHNOLOGY
                                           • Functional enablement
                                           • Resource requirements   As in the original definition
                                                – Initial            of an IT Product,
     Individual                                 – Running            assessing an existing one
      benefits                             • Integration             requires an understanding
                                           • Delivery performance    of these factors and their
                                                                     components, albeit not as
                             • Individual goals                      deep
Realization        USERS     • IT Maturity
of benefits                  • Mindset:
                                 – References
                                 – Context
                                                                                    © 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




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




                                                                                               © 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?




                                                      © 2012 IBM Corporation

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

  • 1. Peter Bjellerup – GBS S&T CoC for Social Business Useful or just cool? On what makes innovations great This material was used by IBM during an oral presentation; it is not a complete record of the discussion. © 2012 IBM Corporation
  • 2. © 2012 IBM Corporation
  • 3. Two questions keep coming back  Why should I use it?  Why should I pay for it? © 2012 IBM Corporation
  • 4. There are only two kinds of innovations 1. Make something possible that was not before 2. Make something better that was possible before © 2012 IBM Corporation
  • 5. 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 © 2012 IBM Corporation
  • 6. 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..... © 2012 IBM Corporation
  • 7. Therefore, inventions and investments depend on people wanting to use them, not only on them becoming available BUSINESS The purpose of IT Products is to produce benefits for the Business companies that provide them benefits The audience use the IT Individual Products because this benefits use produce benefits for them, not because of the benefits for the company USERS 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 © 2012 IBM Corporation
  • 8. Therefore, inventions and investments depend on people wanting to use them, not only on them becoming available Definition of benefits BUSINESS The definition of the expected benefits is made from the Business company’s perspective benefits But for the company to Individual realize its benefits, it is benefits necessary that the users want to use the IT Product to realize their USERS benefits Realization of benefits © 2012 IBM Corporation
  • 9. Therefore, inventions and investments depend on people wanting to use them, not only on them becoming available Definition of benefits BUSINESS The possibility of realizing any benefits depend on the Business availability and functionality of benefits TECHNOLOGY supporting technology. Individual benefits Realization USERS of benefits © 2012 IBM Corporation
  • 10. Therefore, inventions and investments depend on people wanting to use them, not only on them becoming available Definition • Purpose, Ambition of benefits BUSINESS The three key factors for • Financial framework • Decisions, Policies success of the IT • Responsibility Product bring each their Business components to the final mix to be assessed. benefits TECHNOLOGY • Functional enablement • Resource requirements As in the original definition – Initial of an IT Product, Individual – Running assessing an existing one benefits • Integration requires an understanding • Delivery performance of these factors and their components, albeit not as • Individual goals deep Realization USERS • IT Maturity of benefits • Mindset: – References – Context © 2012 IBM Corporation
  • 11. 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 © 2012 IBM Corporation
  • 12. 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, But maybe we could save the money to buy a flat money) together? © 2012 IBM Corporation
  • 13. 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? © 2012 IBM Corporation

Notas del editor

  1. The reasoning in this and the following slide, on business and individual benefits, originates from “Effektstyrning av IT” by Ingrid Ottersten and Mijo Balic 2004, ISBN 91-47-07450-7. Only available in Swedish as far as I know
  2. The reasoning in this and the previous slide, on business and individual benefits, originates from “Effektstyrning av IT” by Ingrid Ottersten and Mijo Balic 2004, ISBN 91-47-07450-7. Only available in Swedish as far as I know
  3. Technology both enables and sets the limits, different for different systems and platforms. However, without bringing technology into this equation it remains an academic exercise only and risks generating custom built solutions for each and every application.
  4. BUSINESS: Sets the purpose and level of ambition As well as budgets Final decisions lie with the business, either on a case to case basis or founded on company policies And the one who makes the decision has the final responsibility, towards users and owners, for the outcome USERS: Have their own goals and ambitions. Be it to get on with their daily tasks or to avoid problems for not doing what they are told. They are at different levels of IT maturity. Some are avid computer and Internet users, while others might be practically “digilectic” They have their own frame of references, both from sites and applications they are used to using, but also, not less important, the business processes they are accustomed to use. If they just had to lift the phone before to get something done (never mind the time needed by the person doing it for them) any self service application adds work for them and will be seen as cumbersome, thereby creating a need for pedagogic salesmanship of why the company “makes life harder for them”. Finally, they have a context of using the application/site, both technical (OS, browser etc) and general: Do they have their own computer or use a kiosk? Are they alone or are there colleagues around to ask? Is the application core for their job, or is it only marginal? Etc. TECHNOLOGY Technology offers possibilities, but poses limitations too. And standard software comes with some kind of built-in processes, that might fit very well with users experience, but maybe not. Licenses, costs for development consultants, internal resources needed during development, hosting and production, but also helpdesk, maintenance and the time of the users How well can the software integrate into other systems? At what cost? Both server side and user side. Are specific plug-ins required? Bandwith required?