 So good morning Lively away ready to go how many of you were here yesterday, honey. We're not here yesterday Sort of half and half so I will try to combine a bit of what we covered yesterday and quite a lot of new stuff and on this interesting topic of continuous innovation and Let me begin by giving you my personal Background in this. I was working in the World Bank for a number of decades and big international organization. I was born in Sydney, Australia actually and joined the World Bank and climbed up the manager ladder and my Introduction to continuous innovation I came in February 1996 when I was working in the World Bank and I was then the director of the Africa region Wasn't going to solve our problem. We had to find a different role in life. So I had another idea Why don't we share our knowledge? We had tremendous expertise on all sorts of different areas, but very difficult to get access to the World Bank's knowledge And I said why don't we reverse that? Why don't we make it very easy for anyone to find out what we know and we could actually be a pretty interesting Organization even an exciting organization. Let's become a knowledge-sharing organization and The managers had a very clear answer for me. They said Steve. This is the World Bank or bank. We lend money Pay attention. This is what the World Bank does and I was somewhat put off by this but I Was believed in this idea. I thought it was a good idea. So I pressed ahead and I've tried different ways to communicate it I gave evidence You heard in some of the presentations you develop evidence, so I had evidence nobody listened. I showed charts nobody Paid any attention in fact Nothing had any effect until I stumbled on the power of a story Which was somehow able to convey the idea of What I had in mind and a very simple story I'd be talking about the future of the World Bank and what's it going to be like? Well, I said it's going to be like today Let me tell you about something that happened just a few months ago in June 1995 this is still early 1996 in June 1995 a health worker and a little village in Zambia in Africa logged on to the website for the Center for Disease Control and got the answer to a question on how to treat malaria and That was June 1995 not June 2018 wasn't the capital Zambia was a little village 600 kilometers away And this is not a rich country This is Zambia one of the poorest countries in the world But you know the most important part of that picture for us in the World Bank The World Bank is not in that picture the World Bank does not have his knowledge organized to share Well all the millions of people make decisions about poverty, but just imagine if it was just imagine if we got organized Think what an organization we could become and yeah Sad to resonate first with staff and then managers and then senior managers and then the president of the World Bank heard about it He said right let's do it. He went to the annual meeting of the World Bank October 1 1996 and announced to the finance ministers of the world all around garages huge public occasion We are going to do this. We are going to become the knowledge bank. We are going to share our knowledge with the world and When the centurion guards Surrounding the president heard this announcement. They were horrified because this was the worst-case scenario The man from Siberia Now was back and he had somehow managed to co-op the president and a whole group of people in the organization To view this lunatic idea of becoming a knowledge sharing organization So this wasn't the beginning. This wasn't the end of the war. This was just the beginning This is when they started to use real bullets and set up rubber bullets because now there was a risk This damn thing might actually happen and in fact the next four years a whole set of battles and struggles with the Centurion guards as to whether we're going to implement what the president had already announced And if so what it would look like and I found That the only way I was able to win those battles was to tell stories about This idea and the impact it would have on our clients and potential clients and all the new people that it would bring Into the services of the World Bank or just the governments We were lending to the whole array of new people who hadn't been able to get access to the World Bank So it had a tremendous impact on the organization and the World Bank in 2000 was named as one of the world's most advanced knowledge sharing organizations World Bank had never been Seen as the best in anything in management before so it was a big breakthrough the organization But it was a story and the passion behind the story that enabled that to happen and this is a big part of this thing and innovation is to It runs on passion it runs on someone with an idea someone with a crazy idea that Is unstoppable you can try to fire this person you can try to stop them you can tell them to go away These people are Unstoppable that's the kind of people who need this continuous innovation and they're very annoying to the Centurion guards in the organization because they cause trouble They cause disruption they call a instead of the neat boxes that the centurion guards want to have in the organization they are disturbing those neat boxes and Doing things differently. So this is little background of how I got into this whole subject that was about knowledge sharing We're talking in this conference about our job, but very similar changes in mindset as well involved and the big news that I mentioned yesterday Agile is eating the world Every minor read my Forbes article on this and in fact the largest firms in the world are no longer the big industrial giants like G they are the Agile firms the digital agile firms Amazon Apple Facebook Google Microsoft these are the biggest firms on the planet I mean Five years ago. It was unthinkable that that would be the case but now it is the case agile is a huge thing and It's current issue of Harvard Business Review has three leading articles on agile another sign that agile Is now part of the mainstream and an interesting Finding in the article is that almost 80% of organizations want to be agile 80% want to be agile. So this is Looking across the whole array of big organizations they want to be agile and we know how to To be agile. I mean, you don't like my book There are plenty of other books that tell you how to be agile no lack of knowledge on how to be agile the other interesting thing I mentioned is that of all these organizations that want to be agile only less than 20% are Actually agile. So this is this big gap between the 80% who want to be agile and the less than 20% who are agile So there's 60% in there of a massive massive Opportunity so 80% want to be agile We know how to be agile biggest firms are agile and less than 20% Are actually accomplishing this and so there was big five biggest firms who used to be worth say 300 $300 million and now worth three trillion dollars a tenfold Increase in value of those organizations If you look at the the gap between the 80% who want to be agile and the 20% are there was About 20 trillion dollars now imagine if there was a tenfold Increase in value in those organizations if they became agile, that's like several hundred trillion dollars So this is like a massive opportunity that's just in front of us and the question is who is going to take advantage of this Opportunity and I hope that it's going to be all the people in this room who are going to be part of this huge Revolution that's underway and I suggested yesterday that when I'm talking about agile I'm talking about what these three laws of agile Not the 16 of the four values and 12 Principles of the agile manifesto or the 40 different flavors of agile that are floating around But three core principles a law of the customer that Total focus of the organization on delivering value for the customer everyone in the organization has a clear line of sight to the customer the work is done in small Self-organizing teams working in short cycles and getting feedback right feedback from customers at the end of cycles Descaling big problems into tiny pieces that small teams can handle them not trying to scale up the organization But actually trying to descale the problems that the organization is facing down into small issues and not Functioning as a hierarchy top-down command and control, but a fluid network where information flows smoothly from cross the organization up the organization down the organization Very different way of running organization than a Top-down hierarchy those three principles are the three principles, which have guided large extent those five biggest companies and the successful agile implementations in the world and I drew a distinction yesterday between operational agility and Strategic agility operational agility the sort of things that you'll hear in most of the workshops Today and was talked about in the previous session Which is basically about making existing products better better faster cheaper more personalized so that your existing customers are much happier and You have a better relationship for those customers and I was talking about something else though strategic agility, which is bringing in new customers people who are not currently customers and Making them customers. This is where the huge financial gains come from This is why those five biggest firms and gone from nothing 20 years ago to three trillion dollars today They have enabled to create new markets bringing in customers that simply weren't customers before and I gave some examples of it just to refresh your memory for those who are here yesterday at some of the old examples Edison didn't try to make a better candle. He created a Different way of generating light the light bulb that's strategic ability Henry Ford didn't try to make a faster horse He built a different way of getting around a Model T car The iPhone wasn't a better just a better phone It was a multifunction device that did all sorts of other things it was brought in the whole new group of customers and Amazon isn't simply making a better Retail of its generating new businesses which are bringing in new customers. It has echo. It has web services It has it this week. It's thinking about getting into banking. It's already taking over groceries. It is a serial strategic innovator and Probably the best in the world right now if you think about what's the company that is doing best? this strategic innovation Amazon would be at or near the top of that list or Netflix didn't stop with Renting DVDs it then moved on to streaming videos and now it's making making movies making series another serial innovator and What's happening in these cases is that you're not just looking at the existing customers as we were hearing in the previous session It's looking at the Future potential customer those who are not currently customers and finding ways to make them turn them into Customers and why is this important? Well a dark secret of the agile movement is that simply making the existing products better for Existing customers. That's a good thing. It's an essential thing But it doesn't make an awful lot of money and the assumption that it does is simply false and the reasons for that several is first of all that There was greater competition than there was before and so it's not only that you are agile your competitors are already agile And they are improving the product and the customers now have much more power than they did in the past the marketplace customers are now in charge of the marketplace and so they are able to Insist that you get not just The same product maybe even lower price They will this we want a better product at the lower price and if you don't deliver it We will go for somewhere else. So here you are busy spending money Improving the product and the customer wants it at the lower price How are you we're going to survive in that world and it is a dilemma that has been described as Operating in these bloody red oceans Where competitors are fighting each other for the limited amount of resources that are available from customers That is a losing battle for most of the Participants and you need to move into these market creating innovations if you want to make large Financial returns and that's what these big five have done. They are operating in what people have called blue oceans where there is little or no competition and you're able to establish a place in that market and Then continuously improve so that other firms never catch up. So Google and and Apple were able to do that and Other firms simply haven't been able to catch up with them. So in mobile phones 2007 there were a lot of Firms that were making phones and a lot of firms were improving their phones But none of them were making all that much money. Nokia was making more than the others but other were making very much money and Apple came along and said, let's think different Let's remove some of the features from the phone the things that people love the most the I still meet people even today who are Grieving over the loss of the blackberry keyboard. I mean They took it away from me. I took away my You're removing the most valued function feature of the phone Taking that away taking away the buttons taking away the keyboard and adding other things adding a screen adding the apps adding Cool factor design cool design and you have a product then that is Irresistible everyone has to have it. It's Even I didn't have a mobile phone back in 2007 now I had to have I had to have my phone and so Apple becomes One of the richest firms in the whole wide world more treasure than ever was imagined by anyone ever in the history of the world by creating strategic innovation and Why does strategic innovation need special attention? Well, there are these a number of reasons why that's the case it is The case that we heard in the previous session and in fact most of the sessions you'll hear in this conference are talking about making things Better for existing customers. That's the natural thing because you have the customers in front of you They are complaining you need to do this you need to do that and so it's natural to focus on that Strategic innovation you have to set that aside and think there are things we could do differently that would transform the situation and Teams and firms also hesitate to eliminate features eliminating the keyboard That is a hard decision Say and everyone in the organization will say that's what people love about a blackboard. You can't possibly Take that away. That's what they love and here you are taking away the thing they love Difficult decision and it cannibalizes your existing products. We'll take the iPhone It cannibalized the iPod and it was a very tough decision and how to decide the footer music player that would basically destroy the iPod in the marketplace in order to create this huge new market and Steve Jobs fought that decision for a long while Eventually was persuaded it had to be and so The iPhone became what it was and these strategic investments may involve large amounts of money and The teams will team level of middle management level might not have the cloud to be able to generate the investment needed for these big Innovations so that's right. You may need something more than bread and butter agile to create these strategic innovations It's not impossible and here's one example where it was Created was possible Discover weekly and Spotify. I gather Spotify is not Operating here in India. Anyone use Spotify no one difficult to explain but they are a stream music streaming service and My daughter was telling me about this amazing feature that they have that It was somehow able to figure out what music you liked and every week They would give you 30 new songs and you found there your favorite songs. How did they find how did they know? That's what I wanted. How did and so I tried it out. Yeah, it was amazing and So I looked into it and so there's a it's now a big part of my book That this was actually the creation of a team of four people and then what they were doing was trying to solve a problem that all of the music streaming companies had Pandora Apple Amazon is that they have these vast array of songs Spotify has 20 million songs But how do you find in those 20 million songs the songs that you would really love and so what they found is that users are Spending most of their time searching the songs rather than actually listening to songs So it was a big problem and everyone knew it was a problem But how to solve it and the management at Spotify was trying to solve it by improving the search function They had a hundred people working on trying to make the search function much better That was Not making all that much progress Meanwhile, they had a hackathon going Spotify is a fragile organization I had a hackathon and a couple of people said that's what if we did something different what if we took the existing Knowledge that we have about our 60 million users a lot of users, but they had been tracking what those Music that those users had and what if we compared that to the 20 million songs that we have now look and our portfolio and they had Classified and categorized those 20 million songs So they were able to match what users are currently doing with the 20 million songs that they had what if we put those together and Without people having to ask for it. We simply inserted in their Spotify Playlist a weekly playlist and people would look in there without having to do anything They would just open this playlist and my magic you would have 30 of their new favorite songs All delivered and the management said well that will never work. I mean 20 million songs 160 million people This isn't possible. In fact, they had already done a lot of the background They've had investments in machine learning that investments in analyzing all those things and so They did the team Didn't get any encouragement from the management but in this agile environment they were able to make a test And so what they did they inserted this in the playlist of the employees of Spotify They're all Spotify users and they inserted this Playlist and the users of on the employees and the employees Started talking about where did this thing come from? There was no announcement It's suddenly found there was this discover weekly and the playlist comes every week in these favorite songs were suddenly appearing It was amazing And so there was a whole lot of buzz within Spotify and that then enabled them to get approval to test it out on 1% of The Spotify users 600,000 people and it was the same reaction. This is amazing. And so they then rolled it out with 21 countries and 15 different time zones all around the world and it was a huge huge success People like my daughter are wandering around saying you've got to have this you have to have this thing and I tried it out And yes, I had to have it and so that's why they went from 60 million to 150 million and users and why they're having a a big offering on the stock market Later this month a huge element how strategic innovation created This possibility of what Spotify might become a couple of other examples of what this looks like See up to Soleil anyone know what silk the Soleil is No one This is It does come to India I'm looking on the web, but it Circuses are typically full of clowns and animals and they appeal to children and it is a dying business in the United States and what Shirk to the Soleil they would say let's reinvent a whole idea of a circus Let's get rid of the things that people value the most. Let's get rid of the animals Big problem Everyone loves them, but that's a big problem. Let's get rid of the clowns. They're kind of clunky Let's upscale this whole thing so that we have acrobats We said we have cool music and we create as something that is appealing not only to kids But to whole families the adults might like it too. And yes It became a huge success and all around the world see up to Soleil is now Really replaced Circuses by taking away the things that people love and adding some other things that they loved even more and creating a vast new market of Circuses or another example is this it's American farm of Jim's fitness centers for women And what they did was they again they what they found was that women didn't have time to go to a Real gym and then fact they didn't want all of the equipment and an elaborate gym All they and they didn't like having men around looking at them they wanted to have something was focused on women and was very simple and was very friendly user friendly women friendly and Again, they took away the things that people valued in gyms took away the equipment took away the trainers It took away the things that were central and they created a vast new market for people who hadn't been customers of gyms another example of This kind of innovation is often taking away the very thing that people value highly and Finding that if you do that you may be able to create a vast new market for what you were doing and To Enable is to happen. They say you need to go beyond bread and butter agile. You need an innovation playbook and Four main elements so this it comes from Kurt Carlson on the former CEO of the SRI International Silicon Valley group and it has these four elements a need an approach Benefits and the competition and these are the elements of a value proposition Which will enable you to find things like discover weekly or like curves or like the soup the celay And you start out by thinking what is the unmet need and how large is it? What is some need that is not currently being met by what we or others are doing and How large is it? Is it a something there are only a few people or is it something that is vast and when it was say like Spotify I think all of the 60 million users had this problem how to find the music they would love and so it was a very large need and so yes, it was a need and the approach how do you find Something that is unique to your particular company that they could Meet the need in a way that would be difficult for others to copy so in Spotify for instance they had already made this investment in machine learning artificial intelligence and classifying the existing tastes of the users and classifying the music so they had done all of the background work and it was quite quick to be able to implement it and Very difficult for these other big companies even Amazon and Apple capable as they are to catch up because they didn't have that work in place So Spotify has established a Beachhead if you like in this blue ocean They're facing these months big monsters Apple and Amazon so no one knows the outcome of this Eventual war but at least at this point Spotify looks well Positioned because they had met a need they had an approach and the benefits were huge both for the bet the customers they could suddenly get the Music they they love without doing anything. They didn't was frictionless. It was intimate. It was cost nothing and For Spotify it was created this huge energy and excitement The board of mouth like my daughter wondering around telling people you've got to have this and so it went Led to this huge benefit for Spotify and the competition often the biggest competition is the user doing nothing They just put up with the way things are so okay search Searching for music is a pain and I'm just not going to do it. That's the that's the real competition So it it had to be something that was so easy so frictionless that People would would just happen anyway and so they overcame the competition which is basically doing nothing and so that's the the basic idea of strategic innovation and let me just pause here and Largely a recap of yesterday with a few new elements, but Let me pause and see anyone have any questions about what we've covered Sorry, I didn't hear the first part of your You described about this NABC framework, but like when Spotify came up with this idea of you know curated list so to say or like Customers, you know actual preferences and creating a playlist for them. Mm-hmm. They didn't have this framework in place It was an afterthought that somebody looked at their process and Saw okay. It kind of fixed this thing. Is that how it went? Yeah, I mean I'm I'm splicing together two parts of this equation The the team in Spotify didn't use this explicit framework This framework was developed quite separately by Kurt Carlson the head of SRI International from 1998 to 2014 is written a book about it and There's a big section in my book page of agile about this framework This wasn't framework that that team used this was just a couple of guys We have a better idea trying to make it better We think it will work. We try it out and boom it takes off They didn't use the framework or what they were trying to do is how could you replicate that? What were the intellectual steps that they were taking? Which would enable you to find Simile solutions in other cases so you could suppose if for instance you have an app to help people find restaurants You could go on making that app Better and better for your existing customers, but you could also be thinking how could I Make a big leap. How could I develop a restaurant app that would transform the market? That would be so different that would create a whole lot of people who don't use that restaurant apps would Create people like my daughter would say Steve you've got to have it You're going to Bangalore you actually absolutely have to have this app because it without that you're gonna die and It's creating that passion in the user and in order to create that passion you have to have that passion and Dream what this dream could be and to realize the dream you have to have passion driving it. So Thanks, that's a great question Understanding the difference between the 80% to say they want to be agile and the less than 20% who are agile I agree that there's a whole lot of Noise going on they may not understand What is agile they may find once they get into it that it challenges some of their basic beliefs It may challenge some of their executive compensation. It may challenge all sorts of things and they may eventually decide well, we don't want to do it and Those companies probably not going to be around for all that much longer Because we are I think in the age of agile and unless you are moving in this direction You're going to find it very difficult to even maintain your existing position and Even more difficult to create even greater value. So that's a good spot if I the spot if I is not really a case of strategic The the example the example I gave is an example of strategic abilities They are also very actively Improving their existing product all sorts of little innovations, but let me move on with a few more More slides and and and we can then come back and answer more questions And if we don't have time to answer them, I'll be around for the next day or so and you can follow up there and so this is Kind of inverting the the normal statement that customers are number one. No Non-customers are number one your main focus should be on non-customers if you're interested in strategic Innovation, that's not that you set aside operational innovation You keep going with that But if you want to get into this strategic innovation where the big gains you need to be thinking about people who are not your current customers and You're adding this them together with the customers in this equation on the bottom It's the customers and the non-customers over the cost that determines whether you're actually generating value for the organization and there are several different types of Innovation Promoted by different writers. There's there blue ocean strategy people who are very much Interested in cases like the silk to slay and the curves where you eliminate some key features and so bring in a whole lot of people who are not currently customers Disruptive innovation is talked a lot by about by Clayton Christiansen and talks about cases where somebody comes up with a a low-cost version of something with it Like Ryan air or these cheap airlines which eliminate some of the key features of the existing airlines and so bring in a whole lot of users who weren't currently users of airlines or Changing the nature of the actual experience spotify example Discover weekly would be an example that of making Using spotify just a much more friendly and exciting Experience than it was before and so it transformed the relationship I just bought a fight those are different variants different flavors of Strategic innovation as I say this thing runs on passion This is about someone who believes who thinks that this has to happen and unless it happens I'm gonna go to somewhere where I'll make it happen. I am gonna make this happen It's those kinds of people who are very annoying and an organization Who are going to be leading this kind of innovation unless you have that kind of passion It's not going to work because you have in these big organizations a whole lot of centurion guards and systems and processes Aim that preventing you from doing this and so it's only if you have that kind of passion You're going to be able to make it work. And so here are six steps To do this on a systematic basis not the way Discover weekly was done, which was just kind of stumbling on it all of what happened in the World Bank it We were not done by any systematic process But just but this is about the kinds of things that you would need to do if you wanted to do this over and over again and this is What cut Carlson did at SRA international they talk about like quite a lot in the book is that he did this over and over again not just once twice like Apple or Spotify but again and again again and one of his has the best known example is Siri the gadget for the which was bought by Apple and became big part of the iPhone where you give voice Instructions and yeah, the phone does what you tell it to do That was something that was developed using this kind of Specific methodology he when he arrived at SRA international They were practically bankrupt. They had very smart people But they had a lot of inventions, but they had never been able to monetize the inventions they would launch them quickly and they would just fade away even though there were brilliant inventions and then Often they were picked up by some other firm and the other firm made a lot of money out of them and so he set out to make a whole series of multi-million dollar Strategic innovations and proof over the next 16 years. He showed how to do it. So this is a Conset of conceptual steps to make this happen, but it as I say Keep in mind always that it runs on having a champion with passion that is driving this process Along and the first step is getting started about and you think we need both regular agile operational innovation and strategic innovation and you might have different degrees of Priority depending on your situation SRA international back in and to 1998 it Needed massive strategic innovation. It needed big big big Value creating innovation so it put a lot of emphasis on strategic innovation funds that are doing very well might be able to put Simply coast along with operational innovation and be thinking with less urgency about creating new businesses So it very much depends on your current Situation and The key is to have a balanced portfolio given where your firm is in the overall Ecology of the of the sector and firms basically need both The second step is you develop this innovation playbook that I talked about the need the approach benefits and the competition with your idea and systematically developed value propositions and with SRI on with Siri and they actually spent three years Discussing the value proposition before they spent any money Three years just over and over again trying to figure out how this is going to work and What is the need for it and who is going to pay for it and how? at the time they couldn't figure out How the whole picture was going to fit together in retrospect? It's obvious but it when they were trying to work it out They couldn't sit you could see that voice was able to activate The an iPhone they could see that you had all this data You could see they're all the things you could possibly do with it How would it actually work and their initial hypothesis that they actually went to market with was that? they would focus on things like restaurants and pharmacies and and Simply it be a guide to where people could find those things and their hypothesis was that the the pharmacies and the Restaurants would pay a commission to be part of of the scheme. That was their idea, but it turned out that apple wanted it for their The iPhone to make it a feature of the iPhone so they bought the whole thing and they didn't have to worry about the commission So they the value proposition changed But the key thing was that they they spent three years discussing trying to figure out Exactly what it would be before they spent any money and that's Key part of this is to get clear on the value proposition long before you actually spend money on the thing and Third step is you do look at the existing and pain points of the of the current customers the But you also look at this the non customers the non customers and number one and you think about well There are several categories that those that are thinking about becoming customers, but just haven't got rounds doing it They are kind of the easy low-hanging fruit And then there are customers who've looked at what you're offering and have said no way no way I can do buy your product buy your service and then there are people who just haven't given it any thought They're just living in a different world Those are potentially the most difficult to bring in but they are Typically a huge huge Group of people and if you can bring them in that is what transforms the organization and then step four Reimagine the market boundaries re-imagine What the market would like that is in the my phone? It's not just a phone, but it's a gadget that will do all these other things and so Apple wasn't a competitor of Nokia and and blackberry and Motorola it came from nowhere and suddenly wiped out those Organizations in the phone market because they had a different it changed the boundaries of what that a sector would look like so you don't These days have what you had in the 20th century was things firms were in industry So in your industries you had Coca-Cola and Pepsi-Cola and that was the world You didn't have people zooming in from outside and wiping out the whole Business so these days you need to be thinking way beyond your existing boundaries of your industry and Look beyond that and then figure out how to get there Which factors are the things which are taken for granted that it can be eliminated or reduced I mean eliminate the blackberry keyboard. Oh, don't do it eliminate the The machines in a gym what a dumb idea These are things where you're reimagining what? Sector and they're going to look like really bizarre Ideas and you'll find the centurion guards in the organization will be saying don't do it Don't touch that that is sacred that is that is our heritage That is everything we stand for and he you are putting all of that in question. So This probably has to be something done by a separate group not by people who run by the centurion guards But a group that is dedicated to creating these different ways of doing things So you might take things away, but you add other features Let's add to the iPhone a big screen not a miniscule screen You can hardly read but big my screen where you can see it in color Let's add apps where it can do all sorts of things not just the phone you add things as well as subtracting things and Things that may never have been offered before and then finally put it all together into a portfolio which is driven by Champions you have to have a champion for each idea if you don't have a champion who has passion Then you shouldn't be even pursuing that idea it's only gonna happen if you have someone who's willing to take on the centurion guards and Drive this through all the opposition that a big organization will undertake Prioritize though those possibilities and have more than one Possibility because it is likely that Some ideas are not going to work out. So if you only have one idea Then you have a lot of risks. So you should be looking at this as a set of options Often what happens in a big organization? You have a huge fight at the top of the organization about Which option to pursue and one faction likes this thing and another faction like that thing And they have a huge battle and one side wins So okay, that is the option and then the organization gets locked into that. That was the winning Even though as they tested out it turns out that it's not such a great idea and isn't bringing in new customers Because that battle was so bloody and so difficult and and the organization is committed to this losing idea They don't see other options which lost that original battle. So you have to have this You looking at the portfolio as a set of options, which you haven't made final decisions You haven't made commitments You are simply pursuing an option and testing whether it's going to succeed and only when you've actually carried out all the tests And you know, it's going to succeed You and try it out and this is not about failing fast. There's a whole a lot of Talking the lean startup world about failing fast. This is not about failing fast This is about always succeeding by the time you launch this thing. You know, you know, it's going to succeed because you've done You clear on the need you understand the benefits you understand the competition You've tested it out as in Spotify. You've tried it out on the staff of Spotify You've tried it out on 1% of the users everyone loves it. This is a winner. It was it was not a risky Decision to roll that out across the all the 60 million users because you knew it was going to be a success So it's not about failing fast. It's about learning fast and then guaranteeing success and Again, what is driving this is passion Passion you must believe that this is going to transform the world. It's those kinds of people You need to be put in charge of these things and drive them to success in the organization. So that's the Methodology, but it's as I say, it's very much a people thing. It's very much a passion thing and But you do need to be smart in driving the passion I talk about it a lot in the book have a couple of chapters on how to make this work in an organization and I have copies of the book here shameless plug. I'll be happy to sign them for you, but we have time I hope for Maybe not a question. That's 10 15 I'll be around and If you want to be asked me some questions, I'll be happy to To explore that but I think we're fully up Done 15 or time is up Any time No time five minutes. Okay. We have five minutes. Yeah, but I think that Question is how do we get out of this dogma about failing fast and the answer is I think we need to recognize that the the whole sort of rationale of lean startup was was good if you're a couple of guys in a garage and Trying to figure out something that might make a few dollars Actually testing this out with a website that doesn't have a product might be One thing you could do to figure out whether there's a market for your crazy idea but if you're in a significant organization and you're talking about You want innovations that are going to make a significant amount of money That is not a good way to go to build a website that doesn't have a product find out no one likes it Fail fast and then pivot That will simply discredit your idea within the organization and you'll never be able to pursue it ever again so you want to avoid that by pursuing this methodology Need approach benefits competition go through those steps and discuss it Over and over and over again until you know that this is an idea that makes sense that there is a large need and That we have able to quantify it the need and we know what the benefits for the people who would use it would be and we know What the benefits for us is an organization and we know What the competition? Particularly the company of people not doing anything not using it at all. We've fought through all of that and After you've thought through that over one two three years or however many years it takes then You then you start trying it out In practice, but so this is not about failing fast It's about learning fast and learning intelligently and thinking through What we're gonna do think we lost the audience we'll have to make way for the next session but thanks very much I'll be around and Got any more questions be happy to answer them. Thanks very much