SESSION CODE ARC 203 David Chappell Principal Chappell

SESSION CODE: ARC 203 David Chappell Principal Chappell & Associates

From the Wharton School of Business

Innovation’s three aspects Idea Implementation Create a new concept Make the idea usable Infusion Deploy the implementation

Some observations

IT creators and IT users

IT creators and IT users Information Technology Creator Idea Implementation Infusion New technology Information Technology User Idea Implementation Creating business value for IT users Infusion Value

For an IT creator IT Creator Idea Implementation Infusion Marketing and sales IT Users Idea Idea Implementation Infusion Implementation Infusion

A simple model IT User Business Process Customers Service Product

For an IT user IT Creator Idea Implementation Technology change Infusion IT User Idea Implementation Infusion Business change Better business process Better product or service

Value = technology change + business change

Idea Implementation D 1 Which ideas are worth implementing? Infusion D 2 Which implementations are worth infusing?

Task, Architecture, Components Component Task Component Users Component Architecture

An example architecture and components: Web technology ASP. NET Document Silverlight Web Server HTML HTTP CGI Web Browser Java. Script User

Definitions Incremental Conceptual

An IT user example: ATMs Letting ATMs accept deposits with no envelope Incremental The invention of ATMs Conceptual

Getting more of each

From competitive advantage to cost of doing business First firm in an industry implements innovation Competitive Advantage to Firm Second firm in the industry implements innovation Third firm in the industry implements innovation Time

Providing business value Window of differentiation Competitive Advantage to Firm Time

Some options Leader: Strong in Idea, Implementation, and Infusion Window of differentiation Fast follower: Strong in Implementation and Infusion Straggler: Not strong in any I

Being good at copying a competitor’s innovations is important The majority of ideas in your industry won’t come from you Doing this requires: Having the right processes in place Such as an effective software development process A culture that can accept intelligent risk Competent people At least for Implementation and Infusion

To successfully implement the i 3 process Idea Strategic Implementation Transformational (Business knowledge, IT knowledge, creativity) (IT development knowledge, execution skills) Infusion Persuasive (User knowledge, communication skills) Value Operational (IT operations skills) How strong an IT user organization must be in each category varies with its IT innovation strategy

Facing the challenge

IT users Must be measured by business people outside the group that did the project IT Creator Idea Implementation Infusion IT User Idea Implementation Infusion Measuring value accurately and honestly is essential for getting more innovation Value

What is important? IT Creator Idea Implementation Infusion New technology IT User Idea Implementation Infusion New business ideas The best technology ideas are the ones that can combine with many new business ideas in many IT users

Some examples

Creating Start-up Mind

Getting them right is critical

IT creators A proxy for IT user value R&D spending IT Creator Idea Number of patents filed Implementation Infusion Profit IT User Idea Implementation Infusion Value

A reprise

David Chappell is Principal of Chappell & Associates (www. davidchappell. com) in San Francisco, California. Through his speaking, writing, and consulting, he helps people around the world understand, use, and make better decisions about new technology. David has been the keynote speaker for events and conferences on five continents, and his seminars have been attended by tens of thousands of IT leaders, architects, and developers in more than forty countries. His books have been published in a dozen languages and used regularly in courses at MIT, ETH Zurich, and other universities. In his consulting practice, he has helped clients such as Hewlett-Packard, IBM, Microsoft, Stanford University, and Target Corporation adopt new technologies, market new products, train their sales staffs, and create business plans. Earlier in his career, David wrote networking software, chaired a U. S. national standards working group, and played keyboards with the Peabody-award-winning Children’s Radio Theater. He holds a B. S. in Economics and an M. S. in Computer Science, both from the University of Wisconsin-Madison.

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