co-creation - agile2013 - raj mudhar - a model for collaborative innovation of products and services

Raj Mudhar & Associates Ltd.

Co-CreationCreating Value with CustomersAgile 2013, Nashville TN

Presenter: Raj Mudhar


Thanks

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To my friends at Alcatel-‐Lucent, especially Marcel Bomans.


Where we’re goingWhat is co-creation?

Why co-create?

Co-creation models

Challenges & Pitfalls

Q&A

Retrospective

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ContextLarge, global, distributed, regulated, hardware and

software product development involving hundreds of engineers.

Alone we can do so little; together we can do so much. —Helen Keller

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Co-Creation5


Co-creation is...“...co-‐creation is a theory of interactions. It involves changing the way the organization interacts with individuals, including employees, customers or any stakeholder. More specifically, co-‐creation involves setting up new modes of engagement for these individuals – platforms, in the jargon – that allow these individuals to insert themselves in the value chain of the organization.”

-‐-‐ Francis Gouillart

A business strategy focusing on customer experience and interactive relationships. Co-‐creation allows and encourages a more active involvement from the customer to create a value rich experience.

-‐-‐ www.businessdictionary.com

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Traditional

Producer Consumer

Product

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Iterative

Producer Consumer

Product Increments

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Co-Creative

Producer Consumer

Product Increments

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Why Co-create?10


Innovation

Customer has a problem without a known solution

New technologyHigh business risk

Speed to market...those who learned to collaborate &

improvise most effectively have prevailed. -‐ Charles Darwin

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Under the hood12


Co-Creation Entry

Co-‐Creation Relationship

Managed as a joint project with one executive sponsor from each partner

Evaluation & Exploration

Joint qualification of an opportunity: scope, value, objectives, model, deliverable

Two possible co-‐creation models from here

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Two Models

Regular

Premium

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Regular

Features:• Activities and scope defined and operating under NDA only• Quarterly workshops to jointly resolve customer challenges, requirements, priorities & risks• Regular demos and reviews to collect feedback on developed features• Joint product requirements refinement• Joint feature prioritization in backlog• Web based real-‐time interactions between agile development teams and customer co-‐creation stakeholders -‐ open processes and transparency

• Teams may work in an Agile or Waterfall context

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Premium

Features:• Everything in the regular model plus...• Customer’s employees embedded with vendor development teams• Teams are co-‐located when it is feasible• Customer’s employees involved in all aspects of development and delivery• Teams work using Scrum and other Agile methods and practices

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Pipeline

4 weeks

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Project Screening• Appropriateness• Market opportunity• Strategic fit• Customer and supplier joint

value proposition• Culture

Kick-‐off• Appointment of

POs -‐ one from each of Supplier and Customer

• NDA

Workshop• Preliminary planning• Alignment on

processes, objectives, demo schedules, deliverables, contributors

Teams & Prep• Scrum teams

selected• Web 2.0

collaboration environment set-‐up completed

Go!• Check off prep• Launch project!


Dangers & Pitfalls18


4RExamples

• Regulatory (e.g. export control)

• Rights (e.g. Intellectual property)

• Relationships (e.g. people)

• Remediation (e.g. correcting and managing disagreements)

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Why will co-creation fail in your organization?

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Regulatory

Export Control

• Permits may be required for certain types of work• NSA registration• Source code protection / vaulting• Documentation• Design specification• Export Control Tiers

Accounting / Legal

• Auditable “employee / employer” relationships• Sarbanes -‐ Oxley• Accounting rules are different in different parts of the world

• Employment laws, unions, including specification-‐based contracting vs. exploratory development

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Rights

Ownership

• Technology ownership• Licensing and distribution• How do you handle development with one customer and then sell the product to their competitors?

Financial• Who gets paid for what? • Who invests?• What if a partner brings in proprietary technology as a complementary component of the product that was developed outside the scope of the co-‐creation agreement?

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Relationships

Fit

• Skills fit• Personality fit at all levels• How do you deal with human conflicts e.g. a customer engineer is being difficult putting the project at risk

Culture

• Reconciling cultural issues, be they country/region related or corporate

• Training employees on both sides how to get along and work together

• Monitoring and facilitating respectful and collegial work environments

• How do you handle rewards and recognition?• Are the skills of the co-‐creation team complementary?

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Remediation

Disputes

• Drawing a line between what can and cannot be in dispute (difficult)

• How do you know you have a disagreement?• What if one side is dragging their heels and slowing down the project? Legitimate issue or not? How do you know?

• Acts of God?

Resolution• Escalation paths for different classes of dispute resolution

• Service level agreements• Maintaing an audit trail of disputes and resolutions to avoid repeats and “death by a thousand cuts”

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Let’s co-create25


Q&A26


Contact:[email protected] rmudhar

rajile.com +1.613.791.7251

http://www.linkedin.com/in/rajmudhar

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http://twitter.com/rmudhar

http://rajile.com

http://www.linkedin.com/in/rajmudhar

mailto:[email protected]


AboutAccomplished R&D director, consultant and change leader for large-‐scale Agile / Lean organizational transformation. 17 years of international experience leading teams in Asia, North America, and Europe. Solid record of delivering measurable improvements in organizational performance. Skilled influencer, mentor and facilitator. Known for valuing people, innovation, continuous improvement, and exceptional service to customers.

Raj successfully implemented Lean and Agile methods and practices in:-‐ embedded software development-‐ hardware development-‐ product management-‐ portfolio management-‐ systems engineering | solution architecture-‐ operations and customer support-‐ finance and budgeting

Raj Mudhar

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co-creation - agile2013 - raj mudhar - a model for collaborative innovation of products and services

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