This document discusses innovation in business processes and enterprise architecture. It begins by outlining three drivers of innovation: problems, constraints, and opportunities. It then describes shortfalls of traditional business process management and enterprise architecture in supporting innovation. Four ways to drive innovation are proposed: enhance current practices, derive better practices from other domains, innovate using potential practices, and create new practices. Specific techniques are provided for each approach, such as improvement patterns, derivation patterns, identifying positive outliers for utilization, and design thinking methods. The document concludes by emphasizing that innovation requires considering all four dimensions.

1. The 101 Guide to IT Innovation
Professor Michael Rosemann
Information Systems School
Science and Engineering Faculty
Queensland University of Technology
Brisbane, Australia

2. How ambitious are you?

3. The Innovation Ambition Matrix
Transformational
new Management
Transformational
Innovation
markets/customers
arkets/customers
Adjacent
Innovation
Core
Innovation
existing
existing products/processes/assets
new
Transactional
Management 3
Nagji, Tuff (2012)

4. Example
Process design group with vanilla BPM methodology
(Six Sigma, lean)
Developed three distinct services
Improve (10%)
Change (30%)
Innovate (100%)
Needed to become ‘consciously competent’ to
reliably deliver innovation as a service
4

5. Agenda
The Drivers of Innovation
Shortfalls of BPM and EA
Four Ways to Innovation
Q&A
5

6. Innovation
Driven by a Problem

7. Recommendations
Problem-driven Innovation
Capture and endorse corporate goals (strategic context)
in your Enterprise Architecture (EA)
Identify current and future capability gaps
(capability-based innovation)
Consider customers’ processes and problems
Involve all stakeholders in problem identification
(design innovation)

8. Innovation
Driven by a Constraint

9. Constraint-
Constraint-driven Innovation
Example – Tesco, South Korea

10. Recommendations
Constraint-driven Innovation
Increase the context-awareness of your EA
and process models (context-aware BPM)
Describe where and how contextual changes
impact your architecture and processes
Search for constraints offshore
(reverse innovation)

12. Recommendations
Opportunity-driven Innovation
Capture the affordances of these technologies
(e.g., ‘ability to locate’, ‘democratization of information
and processes’ )
Allocate dedicated resources to assess the impact
of emerging technologies on your architecture and
processes
Design architecture and processes
based on desired capabilities
(e.g., ‘facial recognition in a
super market’)

13. Agenda
The Drivers of Innovation
Shortfalls of BPM and EA
Four Ways to Innovation
Q&A
13

14. BPM and Innovation
Design of innovative scenarios is poorly supported
Ideation relies on brainstorming-like approaches
Reference models show common, not exciting practice
Innovation is often not process managed
Focus is on transactional, not transformational
capabilities
More reactive than proactive
14

15. EA and Innovation
Focus on technological assets, not (business)
capabilities
Difficult to judge asset utilization (problem)
Limited capture of environmental context (constraints)
Lack of consideration of emerging
affordances (opportunities)
15

16. Innovation Latency
Business Problem, Constraint,
Value Opportunity emerges
Value lost Innovation
through potential Innovation
is noticed analysis is
innovation
conducted Innovation
latency is adopted
Data Analysis Implementation Time
Latenc Latency Latency
y
Innovation
Latency
Inspired by Hackathorn, 2002 16

17. Agenda
The Drivers of Innovation
Shortfalls of BPM and EA
Four Ways to Innovation
Q&A
17

18. Four Ways to Innovation
Derive
better practices
Enhance Innovate Create
current practices new practices
Utilize
potential practices

19. Four Ways to Innovation
Derive
better practices
Enhance Innovate Create
current practices new practices
Utilize
potential practices

20. Enhance: Exercise
You are in charge for the
process “Visiting tourists
at the Empire State
Building”.
What is your objective?
How do you improve
this process?

21. Enhance Example
Wait Pay Wait Go Up Enjoy Leave

22. Enhance – ELIMINATE (1)
Wait Pay Wait Go Up Enjoy Leave

23. Enhance – RESEQUENCE (7)
Wait Pay Wait Go Up Enjoy Leave

24. Four Ways to Innovation
Derive
better practices
Enhance Innovate Create
current practices new practices
Utilize
potential practices

25. Process Derivation
Example
An Indian software vendor receives 1.6m job applications pa
They intend to hire 22,000 employees
What can they learn from a bank’s mortgage process?
….or the editorial process of a prestigious scientific journal?

26. Exemplary Derivation Patterns
• Need for selecting applicants for scarce resources
• Pre-approval (mortgage application)
• Long waiting time for customers
• Price-driven customer triage (airline)
• Provision of resource utilisation
• Usage-based pricing (car park)
• Dependence on customer input
• Automation and pre-filling (Air France)
• Two-sided market
• Brokering demand and supply (Apple)
26

27. Four Ways to Innovation
Derive
better practices
Enhance Innovate Create
current practices new practices
Utilize
potential practices

28. Mobility as a service….

29. The Utilization Differential
• Assume you drive 15,000 kms in your car per year
• Assume the average speed is 50 kms/hr
• You are driving the car for roughly 300 hours
• There are 8,760 hours in the year
• car utilization = 3.4%
• If your car were a service, that untapped 96.6%
becomes a source of value
• Commercialization of idle time (revenue)
• Share acquisition, operation, maintenance costs
Henry Chesbrough (2012)
29

30. Utilization
Search for Positive Outliers

31. Four Ways to Innovation
Derive
better practices
Enhance Innovate Create
current practices new practices
Utilize
potential practices

32. Design Innovation at the
‘World’s Greatest Bank’
32

33. Takeaways
Innovation Innovation
Dimension Techniques
Enhancement 15 Improvement Patterns
(see conference web page)
Derivation Derivation Patterns, Case Studies,
Benchmarks, Reference Models
Utilization Utilization Patterns (People, Data,
Systems, Resources), Positive
Outliers
Creation Six Hats, (Open) Brainstorming,
Crowdsourcing, Customer-led
Innovation, Creativity Techniques

34. Michael Rosemann
Information Systems School
Science and Engineering Faculty
Queensland University of Technology
e m.rosemann@qut.edu.au
w www.michaelrosemann.com
t ismiro