1 00:00:00,400 --> 00:00:03,960 The Better Business Analysis Institute presence. 2 00:00:03,960 --> 00:00:07,760 The Better Business Analysis Podcast with Benjamin Walsh. 3 00:00:12,760 --> 00:00:15,520 Hi everybody, and welcome back to the Better Business Analysis 4 00:00:15,520 --> 00:00:18,880 Podcast with Benjamin Walsh. And today we'll be talking about 5 00:00:18,880 --> 00:00:23,000 a special model that we've developed here at the Better 6 00:00:23,000 --> 00:00:25,920 Business Analysis Institute. And this is something that's 7 00:00:25,920 --> 00:00:28,920 open source and free for you to use. 8 00:00:29,200 --> 00:00:35,320 And the model is the IEIT model. It's really a framework for 9 00:00:35,320 --> 00:00:39,200 project classification. And these classifications of a 10 00:00:39,200 --> 00:00:43,560 type of project or a type of change will allow you to develop 11 00:00:43,560 --> 00:00:48,440 your Agile BA plans in such a way that you are setting this 12 00:00:48,480 --> 00:00:51,680 project up for success. It also helps project managers 13 00:00:51,680 --> 00:00:54,760 and architects alike. And it's something we don't talk 14 00:00:54,760 --> 00:00:58,760 about really when we start on a new piece of work. 15 00:00:59,120 --> 00:01:03,200 Sometimes funding models influence these quadrant areas 16 00:01:03,200 --> 00:01:04,959 and we'll talk about that. And we're going to work through 17 00:01:04,959 --> 00:01:07,600 them on why we think this model is important, to be made 18 00:01:07,600 --> 00:01:10,400 explicit and something an exercise you should be doing 19 00:01:11,800 --> 00:01:15,520 when you start a project or even just to identify what's 20 00:01:15,520 --> 00:01:18,400 happening in your current project and to review whether or 21 00:01:18,400 --> 00:01:20,920 not you're doing the right things that are going to help 22 00:01:21,280 --> 00:01:23,440 ultimately make this project a success. 23 00:01:24,040 --> 00:01:28,560 So the week before last, I had the team here from Defiant to 24 00:01:28,560 --> 00:01:32,960 talk about change and we talked about the commitment to change. 25 00:01:32,960 --> 00:01:35,680 We talked about beliefs and we talked about ownership. 26 00:01:35,680 --> 00:01:38,800 And that's the soft skills. So important that you don't have 27 00:01:38,800 --> 00:01:44,840 those soft skills, then your project is not going to be in 28 00:01:44,840 --> 00:01:47,600 the more likely to succeed bucket. 29 00:01:48,160 --> 00:01:50,640 And now I'm going to talk about some tangibles, some more of the 30 00:01:50,640 --> 00:01:53,320 hard stuff. And so the hard stuff here is 31 00:01:53,560 --> 00:01:59,600 what what can we do and how can we tune our techniques to making 32 00:01:59,600 --> 00:02:03,040 a project more successful. And we start with awareness. 33 00:02:03,120 --> 00:02:07,200 So the IEIT model I want you if you have a piece of paper or 34 00:02:07,200 --> 00:02:09,880 grab a piece of paper. You can do it on the computer if 35 00:02:09,880 --> 00:02:14,840 you like, but it would be easy just to draw a quadrant on a 36 00:02:14,840 --> 00:02:19,200 piece of paper. So effectively A2 by two box or 37 00:02:19,200 --> 00:02:24,040 just across if you don't want to draw the boxes edges and we're 38 00:02:24,040 --> 00:02:29,280 going to draw on our X&Y axis. If you can't, don't remember 39 00:02:29,280 --> 00:02:34,520 that from school, the Y axis is the one going down and up and 40 00:02:34,520 --> 00:02:36,640 the X axis is 1 going left and right. 41 00:02:37,040 --> 00:02:40,800 So we're going to be using this quadrant to explain what I'm 42 00:02:40,800 --> 00:02:44,160 talking about here and I'll if you're ready with your piece of 43 00:02:44,160 --> 00:02:48,440 paper that might help. So the IEIT model categorizes 44 00:02:48,440 --> 00:02:51,040 projects based on their level of innovation. 45 00:02:51,640 --> 00:02:54,400 OK. So that's one of our axes versus 46 00:02:54,400 --> 00:02:57,560 new and established. OK. 47 00:02:57,560 --> 00:03:02,880 So there's a spectrum there. So you have this Y axes new and 48 00:03:02,880 --> 00:03:07,960 established and then along the X axis, the one going left to 49 00:03:07,960 --> 00:03:13,800 right, you have really an axis of improvement to 50 00:03:13,800 --> 00:03:17,720 transformation. OK, so that's what you want to 51 00:03:17,720 --> 00:03:20,840 be drawing on the end of the points improvement on the end 52 00:03:21,320 --> 00:03:24,400 transformation on the other. And then on your Y axis, you'll 53 00:03:24,400 --> 00:03:28,040 have new and then you'll have established and so you end up 54 00:03:28,040 --> 00:03:33,040 with these four quadrants, if you like, which is connection 55 00:03:33,040 --> 00:03:37,960 between innovation establishment or established, if you like 56 00:03:39,760 --> 00:03:44,200 improved and transformation. One of those quadrants will look 57 00:03:44,200 --> 00:03:48,000 like an eye and an eye it will be innovation and improvement. 58 00:03:48,800 --> 00:03:54,040 Now this quadrant focuses on creating highly new solutions, 59 00:03:54,040 --> 00:03:58,160 products, services, processes with gradual improvements. 60 00:03:58,840 --> 00:04:03,000 So there's an emphasis on experimentation and learning 61 00:04:03,000 --> 00:04:08,880 while minimizing, OK, if you're doing true innovation, you're 62 00:04:08,880 --> 00:04:11,560 trying something new in the market and and there are levels 63 00:04:11,560 --> 00:04:13,160 of innovation. As we talked about, there were 64 00:04:13,160 --> 00:04:15,240 things that'll be right up there in the quadrant. 65 00:04:15,240 --> 00:04:17,519 There'll be things that'll be closer, closer to the centre, 66 00:04:17,800 --> 00:04:22,000 like it's, it's new for your company, like your it's new for 67 00:04:22,000 --> 00:04:25,120 your bank to release this app, but it may not be something 68 00:04:25,120 --> 00:04:27,320 that's new worldwide, OK. So there are levels of 69 00:04:27,320 --> 00:04:33,640 innovation and they should be tackled in the same way, even if 70 00:04:33,640 --> 00:04:35,040 we don't define them as true innovation. 71 00:04:35,520 --> 00:04:41,720 But within that quadrant we can see project types like pilot 72 00:04:41,720 --> 00:04:46,200 projects, proof of concept projects, rapid prototyping, 73 00:04:46,600 --> 00:04:51,280 true minimum viable products with the capital P there for new 74 00:04:51,280 --> 00:04:52,840 ventures. OK. 75 00:04:52,840 --> 00:04:55,560 And this is the world where project management really has, 76 00:04:55,800 --> 00:04:58,600 sorry, product management has really helped us more than any 77 00:04:58,600 --> 00:05:00,240 other method. OK. 78 00:05:00,680 --> 00:05:05,160 This is where I would say agile methodologies like Scrum and 79 00:05:05,160 --> 00:05:09,680 Kanban, design thinking, user experience testing, experimental 80 00:05:09,680 --> 00:05:14,920 frameworks like Lean Startup. They have really cemented this 81 00:05:14,920 --> 00:05:18,080 area of innovation and improvement as being a really 82 00:05:18,320 --> 00:05:22,160 hot area that that that in some ways is becoming almost a new 83 00:05:22,160 --> 00:05:25,480 category for a lot of companies, right, establishing teams, 84 00:05:25,680 --> 00:05:30,880 innovation teams, labs. And it's important to know that 85 00:05:31,080 --> 00:05:33,800 both exist. And there are challenges though 86 00:05:33,800 --> 00:05:37,480 when we move our product out of this quadrant, OK. 87 00:05:37,480 --> 00:05:39,880 And they do develop to a point where they have to move 88 00:05:40,120 --> 00:05:43,680 sometimes to live freely within the Organism in which they 89 00:05:44,040 --> 00:05:46,960 exist. So your organizational structure 90 00:05:46,960 --> 00:05:50,000 and the size of your company matters here as well. 91 00:05:50,000 --> 00:05:53,640 That's another dimension that we can look at and we take the 92 00:05:53,640 --> 00:05:57,960 smallest company innovating a new product using improvement. 93 00:05:58,200 --> 00:06:01,920 So true agile scrum, this is where the purest agile 94 00:06:01,920 --> 00:06:06,520 methodologies really work well and you know, working well with 95 00:06:06,520 --> 00:06:08,880 product management which is, you know, developing what the 96 00:06:08,880 --> 00:06:10,360 customer wants and testing with it. 97 00:06:10,360 --> 00:06:13,800 This is where we ideally talk about a lot of these theories 98 00:06:13,800 --> 00:06:16,520 and processes being the ideal state that we all want to work 99 00:06:16,520 --> 00:06:18,360 in. But it's only one of the 100 00:06:18,360 --> 00:06:22,120 quadrants in which it exists. So I'll give you an example for 101 00:06:22,120 --> 00:06:24,200 this quadrant if you haven't quite grasped it yet. 102 00:06:24,480 --> 00:06:28,160 This will be when you are developing a new mobile app, for 103 00:06:28,160 --> 00:06:31,800 example, for a coffee shop, local coffee shop with an MVP 104 00:06:31,800 --> 00:06:34,520 approach. The initial version focuses on 105 00:06:34,520 --> 00:06:38,480 core functionality like ordering and payment, with plans for, 106 00:06:38,480 --> 00:06:40,800 say, gradual improvement based on user feedback. 107 00:06:41,040 --> 00:06:45,440 Get the first step out, you know, query users, ask them to 108 00:06:45,440 --> 00:06:47,000 tell you what they want to do next. 109 00:06:47,280 --> 00:06:51,840 Cross all those ideas, you know, work out who the adopters are, 110 00:06:52,080 --> 00:06:54,160 all the great things. I spend a lot of time talking 111 00:06:54,160 --> 00:06:55,840 about this area. I actually really enjoy it. 112 00:06:55,840 --> 00:06:58,880 It's where my heart sinks. But it's not actually where I 113 00:06:58,880 --> 00:07:01,760 operate on a daily basis, because I have a lot more 114 00:07:01,760 --> 00:07:05,520 consultancy experiences and skills actually in other areas. 115 00:07:05,800 --> 00:07:08,640 And the one thing about improvement and innovation is 116 00:07:08,640 --> 00:07:10,080 actually innovation and improvement. 117 00:07:10,480 --> 00:07:16,280 I and I is that if you're not operating within a company 118 00:07:16,280 --> 00:07:19,400 that's funding you or you don't have venture capitalists or 119 00:07:19,400 --> 00:07:21,760 partners who are able to pay your wage. 120 00:07:22,040 --> 00:07:25,160 A lot of us are unable to economically work in this 121 00:07:25,160 --> 00:07:28,480 environment if we are supporting families and what not or got a 122 00:07:28,480 --> 00:07:30,640 big mortgage. So it's a place that we all want 123 00:07:30,640 --> 00:07:33,040 to get to. It's also a place in which 124 00:07:33,040 --> 00:07:36,640 companies try to replicate and big corporations and actually 125 00:07:36,640 --> 00:07:39,960 sometimes they fail for lots of reasons that, you know, this is 126 00:07:39,960 --> 00:07:43,400 not they. They even if the innovation 127 00:07:43,400 --> 00:07:47,040 improvement area is pumping out, they have a really hard time 128 00:07:47,320 --> 00:07:50,960 incorporating these products back into operations. 129 00:07:51,520 --> 00:07:53,520 So there's some challenges coming out of this quadrant, 130 00:07:53,680 --> 00:07:55,560 which is a podcast for another day. 131 00:07:56,600 --> 00:07:58,960 All right, so let's move on to the next quadrant. 132 00:07:59,000 --> 00:08:01,080 And and you know, I do think it's a good idea for you to 133 00:08:01,080 --> 00:08:04,400 follow me along the way on your piece of paper. 134 00:08:04,400 --> 00:08:08,720 So you understand, you will find this very, very useful. 135 00:08:09,880 --> 00:08:12,880 All right. So our next quadrant is 136 00:08:13,120 --> 00:08:18,320 innovation and transformation. OK, so this quadrant represents 137 00:08:18,320 --> 00:08:23,840 true innovation with a radical change in approach project. 138 00:08:24,040 --> 00:08:28,800 Here projects in the space aim to disrupt existing industries 139 00:08:28,800 --> 00:08:35,120 or create entirely new markets. So this is where the project 140 00:08:35,120 --> 00:08:39,760 types of things like true innovations, moon shot projects, 141 00:08:39,840 --> 00:08:44,039 so ambitious high risk benches are Greenfield initiatives. 142 00:08:44,039 --> 00:08:49,040 This is where you're not transforming your you will, you 143 00:08:49,040 --> 00:08:51,640 will be transforming your business, but you are literally 144 00:08:51,840 --> 00:08:56,600 transforming a whole industry and and those zero in New 145 00:08:56,600 --> 00:09:00,120 Zealand were embarked on this again. 146 00:09:00,120 --> 00:09:02,960 A lot of these, a lot of these companies start here when you 147 00:09:02,960 --> 00:09:05,280 innovate. But the way that, you know, 148 00:09:05,760 --> 00:09:08,000 corporate structures work, capitalism works. 149 00:09:08,280 --> 00:09:10,760 You can't always stay in an innovative space. 150 00:09:10,760 --> 00:09:12,080 You've always got to like move out of it. 151 00:09:12,320 --> 00:09:15,520 This is the area again, Elon Musk I talk about often only 152 00:09:15,520 --> 00:09:19,480 because he is someone who's on the news, is, you know, this is 153 00:09:19,480 --> 00:09:23,480 where SpaceX operates. This is where I would say Tesla 154 00:09:23,480 --> 00:09:28,080 does not operate anymore, which may be why it struggles a little 155 00:09:28,080 --> 00:09:33,240 bit up and down like a like a hot detector machine and in 156 00:09:33,240 --> 00:09:38,360 terms of its share price. But projects like Neuralink is 157 00:09:38,360 --> 00:09:41,720 another example. Here Facebook has got, you know, 158 00:09:41,720 --> 00:09:44,120 a few, a few projects in the space as well. 159 00:09:44,440 --> 00:09:48,640 So these are, I would also say that Apple thrives in innovation 160 00:09:48,640 --> 00:09:50,680 and transformation where they come into an industry and they 161 00:09:50,680 --> 00:09:53,600 just transform it with the iPhone for example, and they're 162 00:09:53,600 --> 00:09:55,560 doing it now with the the kind of goggles. 163 00:09:55,920 --> 00:09:58,560 It doesn't just mean first to market, it means that you are 164 00:09:58,560 --> 00:10:01,240 using, you know, you're really breaking your ground. 165 00:10:02,000 --> 00:10:06,800 So the frameworks you want to use here is 100% design 166 00:10:06,800 --> 00:10:10,520 thinking. OK, this is really true design 167 00:10:10,520 --> 00:10:13,560 thinking. You're using open innovation 168 00:10:13,560 --> 00:10:16,400 model. You're using stage gate models 169 00:10:16,400 --> 00:10:20,160 for managing risk because you've you're seeking external money 170 00:10:20,160 --> 00:10:22,240 for this. This is you, you can't. 171 00:10:22,400 --> 00:10:25,160 Unfortunately a lot of us like for example I was involved in 172 00:10:25,160 --> 00:10:29,600 the start up company about a year and a half ago and through 173 00:10:29,600 --> 00:10:33,520 an incubator and we were looking to innovate and transform a 174 00:10:33,520 --> 00:10:36,280 whole industry, right. But we're up against a major 175 00:10:36,280 --> 00:10:40,000 industry and in order for us to even get a head start in that 176 00:10:40,000 --> 00:10:43,560 area this is actually so this is pre pre COVID. 177 00:10:44,440 --> 00:10:52,120 We almost needed more capital like we had to the baseline for 178 00:10:52,120 --> 00:10:55,440 capital to even compete in this market to even be known and not 179 00:10:55,440 --> 00:10:59,640 get like squished by the other players or the existing 180 00:10:59,640 --> 00:11:01,400 established players in this market. 181 00:11:01,400 --> 00:11:08,120 And we'll come to established in a minute was was hard And so you 182 00:11:08,120 --> 00:11:10,800 know we really lost it from a financial point of view in that 183 00:11:10,800 --> 00:11:14,320 area and it made it kind of it didn't make it even though we 184 00:11:14,320 --> 00:11:17,720 had a pretty good solution that we were looking at launching. 185 00:11:18,280 --> 00:11:22,240 The amount of capital we needed to take the risk to roll that 186 00:11:22,240 --> 00:11:26,600 out with all those other external factors affecting us 187 00:11:26,600 --> 00:11:30,160 just didn't make it worth it. And primarily, you know, we 188 00:11:30,160 --> 00:11:32,720 literally had some big established players, not 189 00:11:32,720 --> 00:11:35,640 necessary in the category we're in, but some supporting 190 00:11:35,640 --> 00:11:39,480 categories that we needed in order to innovate in space or 191 00:11:39,480 --> 00:11:43,000 transform this or disrupt this, which is a keyword that we used 192 00:11:43,600 --> 00:11:48,400 at the time, made it next to impossible in the New Zealand 193 00:11:48,400 --> 00:11:51,680 market. An example would be developing a 194 00:11:51,680 --> 00:11:54,480 new type of electric vehicle with a novel battery. 195 00:11:54,480 --> 00:11:57,840 You know, you could say Tesla was in the space, but if you 196 00:11:57,840 --> 00:12:01,840 could come up with a new battery that significantly increased 197 00:12:01,840 --> 00:12:05,320 range and reduced charging time, which they are at the moment in 198 00:12:05,320 --> 00:12:06,840 China. There's a few manufacturers on 199 00:12:06,840 --> 00:12:11,120 this, then that project requires extensive research, right. 200 00:12:11,120 --> 00:12:14,720 It's really an engineering project, research projects, 201 00:12:14,720 --> 00:12:18,200 scientistic scientific people collaborating with external 202 00:12:18,200 --> 00:12:23,160 partner partners and a really, really high tolerance. 203 00:12:23,840 --> 00:12:28,920 So people are taking a gamble. A lot of VC firms or investment 204 00:12:28,920 --> 00:12:32,440 firms will invest in these and they you might have heard the 205 00:12:32,440 --> 00:12:35,920 term Unicorn companies. This is where V CS bit and put a 206 00:12:35,960 --> 00:12:39,720 holiday bits on holiday companies, some are very high 207 00:12:39,720 --> 00:12:42,920 risk and you know the chances of them actually breaking through 208 00:12:42,920 --> 00:12:46,920 the market in this area are low. But if they do transform the 209 00:12:46,920 --> 00:12:50,280 whole market, the return on investment is absolutely huge. 210 00:12:50,680 --> 00:12:54,080 Then they go after what companies which are just doing 211 00:12:54,080 --> 00:12:57,240 innovation, in some ways innovation and improvement. 212 00:12:57,440 --> 00:13:00,880 So just some apps that might establish itself as being better 213 00:13:00,880 --> 00:13:02,680 than the rest. And then they have a whole 214 00:13:02,680 --> 00:13:07,880 portfolio I guess of things which they know are established 215 00:13:07,880 --> 00:13:09,840 where they're just going to get marginal growth on them. 216 00:13:10,280 --> 00:13:13,600 So that's how kind of how they they work out their funding and 217 00:13:13,880 --> 00:13:16,800 and when it comes to Unicorn funding or innovation and 218 00:13:16,800 --> 00:13:22,440 transformation funding, they will bet on 100 things and 99 of 219 00:13:22,440 --> 00:13:25,160 them will fail. But if one succeeds then they 220 00:13:25,160 --> 00:13:27,120 get, you know they still make a huge amount of money. 221 00:13:28,080 --> 00:13:30,560 So we look at we're going to move on to the third quadrant 222 00:13:30,600 --> 00:13:36,520 and this is now space in which a lot of BA play in OK, let's 223 00:13:36,520 --> 00:13:41,280 let's. So the last two one, sorry #3. 224 00:13:41,280 --> 00:13:44,920 Our third quadrant is establishment and improvement. 225 00:13:45,560 --> 00:13:50,480 So this quadrant focuses on optimizing existing solutions 226 00:13:50,480 --> 00:13:52,560 for better performance or efficiency. 227 00:13:53,960 --> 00:13:57,640 Projects here aim to make incremental improvements to 228 00:13:57,640 --> 00:13:59,840 establish product services process. 229 00:14:00,480 --> 00:14:04,920 This by far is the number one category in which a lot of us 230 00:14:05,000 --> 00:14:09,080 are operating OK. The project types are process 231 00:14:09,080 --> 00:14:13,120 improvement initiatives. So you know the true process 232 00:14:13,120 --> 00:14:17,280 improvement lens, 6 Sigma projects, cost reduction 233 00:14:17,280 --> 00:14:19,760 projects or at least a business case that says you're going to 234 00:14:19,760 --> 00:14:23,120 reduce cost by, you know, taking one system and replacing it with 235 00:14:23,120 --> 00:14:25,840 another. Continuous improvement programs 236 00:14:25,840 --> 00:14:30,480 internally as well, not just projects in the sense of the 237 00:14:30,480 --> 00:14:33,320 capital P projects, they're all projects in my eyes because 238 00:14:33,320 --> 00:14:39,040 you're spending money. This could be implementing, OK, 239 00:14:39,040 --> 00:14:42,160 I'm going to be careful here, new software systems to 240 00:14:42,160 --> 00:14:45,400 streamline workflow. Now when I say new software 241 00:14:45,400 --> 00:14:49,520 systems, they're established. So generally these are projects. 242 00:14:49,520 --> 00:14:52,680 These are not, you're not building a brand new software 243 00:14:52,680 --> 00:14:54,720 system. You are taking something that's 244 00:14:54,720 --> 00:14:56,480 off the shelf and putting it in here. 245 00:14:56,640 --> 00:14:59,120 And a lot of people make a mistake in establishment and 246 00:14:59,120 --> 00:15:03,440 improvement where they try and innovate at this stage. 247 00:15:03,800 --> 00:15:09,120 And that's a failing. When you are going to do 248 00:15:09,200 --> 00:15:12,120 establishment and improvement, you should be working with an 249 00:15:12,120 --> 00:15:17,040 established a piece of software. You shouldn't be innovating on 250 00:15:17,040 --> 00:15:20,320 that software because you want unless it provides you with a 251 00:15:20,320 --> 00:15:22,920 competitive advantage. And if it does, you split your 252 00:15:22,920 --> 00:15:27,360 project into two pieces here. OK, you split your project into 253 00:15:27,360 --> 00:15:30,840 establishing the the fundamental out-of-the-box software and then 254 00:15:30,840 --> 00:15:33,240 you create a SWAT team that works in quite a different 255 00:15:33,240 --> 00:15:37,240 funding model, quite a different way to then extend that product 256 00:15:37,240 --> 00:15:41,400 or build an app on top of it. They're two distinctly different 257 00:15:41,400 --> 00:15:44,200 pieces of work, two different mindsets and probably two 258 00:15:44,200 --> 00:15:47,640 different skill sets. Here the frameworks we use in 259 00:15:47,640 --> 00:15:52,880 establishment and improvement, E and I are lean 6 Sigma 260 00:15:53,360 --> 00:15:59,200 processes, Kaizen methods, small continuous improvement. 261 00:16:00,920 --> 00:16:06,760 But we also for the establishing the software or the change we 262 00:16:06,760 --> 00:16:12,680 use Prince Two, we use PM Bock, PMP, the we use standard you 263 00:16:12,680 --> 00:16:16,920 know IIBA models. We use standard frameworks for 264 00:16:16,920 --> 00:16:20,160 doing this at the Better Business Analysis Institute. 265 00:16:20,160 --> 00:16:24,760 This is where a lot of the collateral we have, a lot of the 266 00:16:24,800 --> 00:16:29,280 processes and redesign we have will help with all of these, but 267 00:16:29,280 --> 00:16:32,720 primarily it will be a better way of carrying out 268 00:16:32,720 --> 00:16:36,200 establishment and improvement for ABA, OK. 269 00:16:36,200 --> 00:16:38,720 So this is really where BAS traditionally play. 270 00:16:39,520 --> 00:16:43,240 An example would be implementing a new ERP system, you know 271 00:16:43,240 --> 00:16:47,520 enterprise resource planning system to streamline inventory 272 00:16:47,720 --> 00:16:50,440 and production processes in a manufacturing company. 273 00:16:52,320 --> 00:16:56,360 This project might leverage, it will leverage established 274 00:16:56,600 --> 00:17:00,520 software to improve existing functionality, OK. 275 00:17:00,520 --> 00:17:03,320 So this is really, really important here. 276 00:17:03,920 --> 00:17:06,240 OK. So do you do we understand that? 277 00:17:06,240 --> 00:17:10,960 So we're kind of implementing system that exists and we're 278 00:17:10,960 --> 00:17:14,200 improving on it, we're improving our processes at the same time 279 00:17:14,960 --> 00:17:19,960 we're we're saying hey look it took us an hour to complete this 280 00:17:19,960 --> 00:17:22,920 process in our in our paper based system or our old system 281 00:17:22,920 --> 00:17:26,520 and we're moving to a new system that will reduce this time 282 00:17:26,520 --> 00:17:27,560 period. So that's how you measure it 283 00:17:27,560 --> 00:17:30,760 through the process improvement, OK, from current to future state 284 00:17:30,920 --> 00:17:33,520 be taking the current, you're moving the current state to a 285 00:17:33,520 --> 00:17:35,800 new, a new system which is the transformation. 286 00:17:36,000 --> 00:17:39,080 But then you're improving on that by reducing the time it 287 00:17:39,080 --> 00:17:41,240 takes to do something. So you might be improving the 288 00:17:41,240 --> 00:17:45,760 screens, you might so you are you are improving the overall 289 00:17:45,760 --> 00:17:49,880 experience, but you're in an established environment, OK. 290 00:17:50,240 --> 00:17:53,880 And the final quadrant we're moving to is establishment and 291 00:17:53,880 --> 00:17:58,760 transformation E And so this quadrant involve taking 292 00:17:58,760 --> 00:18:03,800 established solutions and fundamentally changing, OK. 293 00:18:04,360 --> 00:18:09,480 So projects aim to transform existing business models, OK, 294 00:18:09,480 --> 00:18:11,720 processes and organizational structures. 295 00:18:12,160 --> 00:18:18,600 This is where you are reengineering an organization 296 00:18:19,000 --> 00:18:22,240 and you could say that the project types here are process, 297 00:18:22,440 --> 00:18:25,240 business process reengineering, so radically redesigning 298 00:18:25,240 --> 00:18:28,800 processes for efficiency. This is a place I actually like 299 00:18:28,800 --> 00:18:32,760 to play or what you actually find is that we we, when we say 300 00:18:32,760 --> 00:18:36,040 the word, radically redesigning the current state of these 301 00:18:36,040 --> 00:18:38,520 processes could be just just a mess. 302 00:18:39,240 --> 00:18:41,040 So they never were designed in the 1st place. 303 00:18:41,400 --> 00:18:44,760 So in some ways you're actually you when we say transformation 304 00:18:45,000 --> 00:18:49,000 we're transforming something that wasn't wasn't quite you 305 00:18:49,000 --> 00:18:53,240 know formed first place digital transformation initiatives. 306 00:18:53,240 --> 00:18:56,600 So leveraging technology to significantly change our 307 00:18:56,600 --> 00:18:59,280 business operates. So consolidating all your 308 00:18:59,280 --> 00:19:04,920 applications into one ERP tool, replacing a whole series of 309 00:19:04,920 --> 00:19:09,800 staff through automation and AI mergers and acquisitions, that's 310 00:19:09,800 --> 00:19:12,120 a that's a place here when we're doing establishment and 311 00:19:12,120 --> 00:19:15,840 transformation, true restructuring, OK. 312 00:19:15,840 --> 00:19:19,120 So an example might be merging two companies from different 313 00:19:19,120 --> 00:19:23,280 industries requiring requiring a complete overhaul of the 314 00:19:23,280 --> 00:19:26,480 business right structures, processes, IT infrastructure, 315 00:19:27,280 --> 00:19:31,280 moving you know all your infrastructure to this to the 316 00:19:32,480 --> 00:19:38,040 acquisition company model. Maybe it involves a high degree 317 00:19:38,040 --> 00:19:43,520 of complexity and risk. People are are touched, people 318 00:19:43,520 --> 00:19:46,480 lose jobs in this situation. So there are. 319 00:19:46,560 --> 00:19:49,360 So I'm just going to go over those again just just rapidly. 320 00:19:49,360 --> 00:19:52,880 So we've got the four quadrants, we've got innovation and 321 00:19:52,880 --> 00:19:57,160 improvement which is really focusing on new solutions like 322 00:19:57,200 --> 00:20:00,000 market based solutions. We're improving on that. 323 00:20:00,600 --> 00:20:03,600 We've got innovation and transformation, right. 324 00:20:03,600 --> 00:20:07,640 When we are innovating, right, we're taking, we are still doing 325 00:20:07,640 --> 00:20:10,480 innovation, but we look and we're looking to transform an 326 00:20:10,480 --> 00:20:13,800 industry, right. So that's quite different to 327 00:20:14,040 --> 00:20:17,600 innovation and improvement where you are improving. 328 00:20:17,920 --> 00:20:19,720 You're putting out an app and you're improving something, so 329 00:20:19,720 --> 00:20:22,600 you're making it better and a lot of, a lot of when you go to 330 00:20:22,600 --> 00:20:27,480 market, this is a really good, this is a safer place to to to 331 00:20:27,480 --> 00:20:31,200 focus. So let's say a banking app is 332 00:20:31,200 --> 00:20:34,600 coming out, a phone based banking app to manage your 333 00:20:34,600 --> 00:20:39,720 accounts and really it's aiming to, you could say disrupt in 334 00:20:39,720 --> 00:20:42,880 some ways, but let's say it's just better than the competition 335 00:20:42,880 --> 00:20:47,160 that's already disrupted. So if there was a competitor to 336 00:20:47,160 --> 00:20:51,960 Uber or a search engine and you know competing with Google it's 337 00:20:52,000 --> 00:20:55,920 it's just trying to be better than the established industry 338 00:20:56,120 --> 00:20:59,520 and you're you're so you're not you're just improving on that 339 00:20:59,520 --> 00:21:02,440 you're improving on what's available today and and and a 340 00:21:02,440 --> 00:21:04,240 lot of that lean startup involves in that. 341 00:21:04,240 --> 00:21:07,280 So there's an existing market or you're you know you're going 342 00:21:07,280 --> 00:21:09,800 after existing customers and you you're improving their jobs to 343 00:21:09,800 --> 00:21:12,400 be done with innovation and transformation. 344 00:21:12,400 --> 00:21:14,720 You are truly doing breakthrough industries. 345 00:21:14,720 --> 00:21:17,440 You're taking a risk that in my you know you you are hoping 346 00:21:17,440 --> 00:21:21,080 there's a market and you're taking big massive leaps to 347 00:21:21,080 --> 00:21:23,760 change an industry in which Apple did with the iPhone. 348 00:21:24,280 --> 00:21:28,000 That's that's a good example of innovation and transformation 349 00:21:28,480 --> 00:21:32,160 establishment and improvement is when you are optimizing existing 350 00:21:32,360 --> 00:21:35,800 solutions for better performance or efficiency you might be 351 00:21:35,800 --> 00:21:39,000 putting in. So don't don't don't get me 352 00:21:39,000 --> 00:21:42,800 wrong here it's also about implementing systems and 353 00:21:42,880 --> 00:21:46,000 improving them that you know lift and shift, you know move to 354 00:21:46,000 --> 00:21:50,320 cloud, putting a a better ERP system in, right. 355 00:21:50,320 --> 00:21:53,840 So a lot of us plan that space and then finally you have 356 00:21:53,840 --> 00:21:56,080 establishment and transformation where you're doing massive 357 00:21:56,080 --> 00:22:00,680 transformation that could be IT massive NTN transformation or 358 00:22:00,680 --> 00:22:07,920 changing complete establishing a whole new suite of business 359 00:22:07,920 --> 00:22:11,160 model or processes organizational structures or IT 360 00:22:11,240 --> 00:22:12,720 infrastructure. OK. 361 00:22:12,720 --> 00:22:16,120 And you're so they're the four quadrants and I want you to 362 00:22:16,120 --> 00:22:19,760 think about what project you're currently working on or if 363 00:22:19,760 --> 00:22:23,320 you're not ABA, which pro which area do you think would be sound 364 00:22:23,320 --> 00:22:28,200 like the most fun. A lot of BAS get caught up in 365 00:22:28,200 --> 00:22:30,840 the fact that they want to do innovation. 366 00:22:30,840 --> 00:22:33,120 So they might they might know, hey look I'm not going to be 367 00:22:33,120 --> 00:22:36,320 able to do this ground breaking transformation of an industry. 368 00:22:36,320 --> 00:22:39,720 I'm not rocking the world. I work for a bank, but I'm, I 369 00:22:39,720 --> 00:22:42,240 really want to be in the team that does innovation, 370 00:22:42,240 --> 00:22:46,600 improvement, right, releases products, banking for example. 371 00:22:46,600 --> 00:22:49,840 It's really sexy and that's cool, you know, getting that 372 00:22:49,840 --> 00:22:53,640 team do that, follow those methods, but but then also 373 00:22:54,560 --> 00:22:58,840 people try to take those methods and then apply them down in the 374 00:22:58,840 --> 00:23:02,200 establishment and improvement or establishment and transformation 375 00:23:02,200 --> 00:23:04,440 and they just don't work. They have a completely 376 00:23:04,440 --> 00:23:07,400 different, you have to have a completely different approach 377 00:23:08,080 --> 00:23:13,760 when you're working down at the established area, basically both 378 00:23:13,760 --> 00:23:15,960 the improvement and the transformation of that. 379 00:23:16,400 --> 00:23:18,760 So when you work in an established industry or 380 00:23:18,760 --> 00:23:23,040 established business model, the you're going through business 381 00:23:23,040 --> 00:23:26,040 cases. You can't be true agile, OK, you 382 00:23:26,040 --> 00:23:30,560 can't be true agile, you can't, it doesn't actually work. 383 00:23:30,560 --> 00:23:36,480 You need to have more of a waterfall wrapper or a business 384 00:23:36,480 --> 00:23:40,120 case wrapper around small agile teams, but they work within an 385 00:23:40,120 --> 00:23:46,200 established area, OK? And when you do establishment 386 00:23:46,200 --> 00:23:49,320 and transformation, as you're doing true transformation and 387 00:23:49,320 --> 00:23:51,920 established environment is another way of saying that you, 388 00:23:51,920 --> 00:23:54,160 you know you have change managers, you have 389 00:23:54,440 --> 00:23:57,280 organizational structure trees, you have process modeling. 390 00:23:57,680 --> 00:24:03,120 So BA work very well in the established established area of 391 00:24:03,120 --> 00:24:04,840 both improvement and transformation. 392 00:24:05,160 --> 00:24:08,800 But you need to then work in other methods as you work in 393 00:24:09,000 --> 00:24:11,360 other areas like the innovation area. 394 00:24:12,760 --> 00:24:17,000 So I hope you understand now about the IEIT model. 395 00:24:17,360 --> 00:24:19,840 I hope that you can see what project you're doing and 396 00:24:19,840 --> 00:24:22,760 understand that your approach to the project needs to be 397 00:24:22,760 --> 00:24:26,640 different, the set of processes, frameworks that you need to be 398 00:24:26,640 --> 00:24:29,480 different. But I'm also going to tell you 399 00:24:29,480 --> 00:24:32,840 about something else that we've that we've talked about before 400 00:24:33,120 --> 00:24:37,520 which is the 4P plus model. So the four P plus model also 401 00:24:37,520 --> 00:24:42,800 developed by the Institute of Better Business Analysis is a a 402 00:24:42,800 --> 00:24:47,320 model that exists regardless of which of these projects that 403 00:24:47,320 --> 00:24:49,640 you're working on. So it's your consistent heart. 404 00:24:50,360 --> 00:24:53,920 So you can wrap these four quadrants around the four P plus 405 00:24:53,920 --> 00:24:57,320 model and the 4P plus model. If you can't remember what it 406 00:24:57,320 --> 00:25:00,320 is, it's it. It talks about people, it talks 407 00:25:00,320 --> 00:25:03,200 about processes, it talks about projects and it talks about 408 00:25:03,200 --> 00:25:06,840 products and those four entities and how they work and how and 409 00:25:06,840 --> 00:25:12,000 that sequence they that exists regardless of which type of 410 00:25:12,120 --> 00:25:13,720 project classification you're working on. 411 00:25:14,320 --> 00:25:19,240 So you start in a different area and you focus your attention and 412 00:25:19,240 --> 00:25:22,480 how you go about each of those stages and how you interact with 413 00:25:22,480 --> 00:25:27,240 people, what methodology you use, how in depth you go into 414 00:25:27,240 --> 00:25:29,560 people for example, or project planning. 415 00:25:29,560 --> 00:25:33,080 Or you know do you do a lean canvas, which is you know a real 416 00:25:33,080 --> 00:25:36,160 basic business case or do you do a full business case. 417 00:25:36,520 --> 00:25:43,680 That's determined by the the IEIT model, but the four P plus 418 00:25:43,680 --> 00:25:47,800 model is consistent. So those two models hand in hand 419 00:25:47,800 --> 00:25:52,480 are very, very powerful and help define our what when we're doing 420 00:25:52,520 --> 00:25:54,880 projects. I'm going to talk more about the 421 00:25:54,880 --> 00:25:59,440 what in the future and probably publish out some articles about 422 00:25:59,440 --> 00:26:03,680 this and so you can kind of understand how these methods 423 00:26:03,680 --> 00:26:05,840 work. But I hope that you've got value 424 00:26:05,840 --> 00:26:08,040 today and I'll see you next time.