 How many people were in my talk earlier in the week? Okay. So some of this is going to cross back over some of the introduction stuff. I apologize. I might want to ask you guys who's Ray, and you guys can help fill in some of the gaps for people. So my background is that I come from an engineering background. Originally when I left school, I was an electrical engineer. I joined a very small company by the name of Intel Corporation. Very small organization at its time. Believe it or not, it was only 32,000 employees when I joined. And then over the next decade, it grew to 120,000 employees in that period of time. But the overall, just the way that I approach problem solving, you know, that is my problem solving technique. It is literally let's stay up, let's have coffee, let's throw a problem in there, and then eventually a solution comes out the other end. And the artifact of that, and if you guys, who are engineers in the room? Yeah. And what are your roles? I'm just curious. What do you do if you're not an engineer? Are you a designer? What's your role? I'm a product owner. What another product owner over there? He's like, yeah, product owner, that's who I am. Any other job roles? A coach. A coach as well. So, you know, probably similar types of technical and even, you know, I believe everything is a technical discipline. I don't believe in this whole non-technical technical stuff. Everything we do has some technical components associated to it. And, of course, the artifacts itself come out as being, for me, it's sarcasm. Intel was a very complex environment, and we actually dealt with not just one level of complexity at the engineering level. Our projects were, if you look here, those were all the teams that a single microprocessor that's being developed for a laptop, those were all of the different components and pieces that needed to come together in order for us to produce some form of product out the back end. Believe it or not, Intel does more software and more hardware than you would think. We actually do what is known as first artifact, which is a functional laptop that is any OEM can take and then take that design and just put their name on it if they wanted to. Most don't, they make some changes around it, but if you open one motherboard at Dell and you opened up another one with HP, you'd find those motherboards look pretty darn similar. The other thing is we provided most of the software stack, and we wrote portions of driver software for Microsoft. We rewrote the iOS for Apple, a part of Team Apple. I was a part of that at one time. Steve Jobs is everything that you have ever read about him. He's a difficult person to work with. We're dealing with social complexity, 162 teams worldwide, strategic complexity, engineering complexity, we had all of that, and of course it wasn't exactly the most comfortable environment to work because as most big companies we had competing concerns across multiple teams and to get something done and to get an innovation out was very difficult. I'm a part of the Agile Alliance. If you want to know more about that, you can go stop by the booth and I can fill you in on that. I've given that speech 136 times so far, so I'm getting pretty darn good at it. The last one, for those of you who heard this earlier in the week, I did have a stroke. It was about three years ago. I had a blood clot that went to my brain and I could not move my entire right side of my body. So my voice to me is different now and sometimes that's a little bit distracting and sometimes a little stutter comes out and I apologize for that. The real reason why I'm actually saying it though is that this shot that was going into my arm at the time, the doctor said that this can only be used 4% of the time and I took that as it's only 4% effective and because after that shot was given to me I actually recovered most of my functionality on my right side but he's saying 4%, he says no, actually the drug is 99% effective. It's just that if you give it after four hours after the stroke starts then it actually is not effective at all. So my advice to you and my public service to you is be fast. If you see any of these signs at all, it's 112 here in this country, get yourself to the doctor right away. However you do it because it'll save your life. Yes? Oh I'm sorry. These slides will come to you guys as a matter of fact too. So innovation, innovation over a period of time I'm fascinated with changes that have occurred in our world. Back in the 1800s you used to have to work for six hours in order to get one hour's worth of reading light. So you would have to labor that long to either acquire a candle or build one. So it was actually quite astonishing now that we get into 2010 just for a fraction of a second of work you earn enough money to get one hour of light. And thinking about that evolution over time these are some big quantum gaps in my mind about how we've been accelerating towards things. Humans have been for a long time engineers and we would take physical substances and build things. And the Stone Age is probably one of the most primitive innovations that are around. A stone tool, stone axe. And surprisingly enough it's about the same size as a computer mouse. Is anyone in this room an expert enough that you could build a computer mouse? Or is that a nodding yes? Could be either one. Well I mean do you know how to drill for oil for the plastic? Do you know how to build a capacitor? I'm talking build it similar to the Stone Age. From scratch. I mean if you look at the bill of materials to build a mouse there were more than 150 items that were on there of different components and pieces of assemblies and other things. And if you think about the countless number of biochemists, engineers, oil workers, everything that has to come together for that innovation to actually exist and to be so at scale. You know everyone here has a mouse right? You all own one. It had to cross through hundreds and hundreds of people. And yes of course you also needed this guy to deliver coffee as well in order for these people to be fed. There's millions of people that are behind actually making this innovation come into existence. This one of course was just required a rock and a crafty human in order to go produce. I had someone at a previous presentation I gave this at said no it was two rocks. You needed one rock to hit the other rock. Okay true but still the bill of materials was a lot simpler. Innovation over the years I don't think has changed that much. I think that if you look at the caveman problem versus what we have in the computer age, these things are not too terribly different. The only thing that we're hitting now and I'm not sure if you've ever experienced this similar to what happened at Kodak. Kodak used to be a film developing company right? Did you know that they developed the first digital camera? And this gentleman here who actually invented the camera was told by his boss to hide it because the innovation dilemma there was if we actually released it as Kodak we would undermine the rest of our business and the business case itself he wasn't equipped enough to be able to look at and say what are the economic impacts as an engineer. He was only looking at technologically was it feasible to do and he was unable to convince the management to be able to do that and if he would have been able to convince management Kodak might be still in the same business today still with photography. Today actually Kodak is a chemical company. They're doing it quite successfully now but they're not doing film developing any longer. The other one as I talked earlier in the week the level of complexity that we're dealing with because of the simplicity of the interfaces is impacting us greatly. You know the mouse has three buttons but think of the complexity that's behind those three buttons and how they actually interact with the rest of the system. As systems designers or as systems people you know that as that continues to grow as we push it down to maybe a single interface that contraction of being able to get things done becomes even more and more difficult itself. So the dilemma at Intel and I will use the Intel word any Intel lawyers? None? Okay we can talk about them. Could you delete when I say Intel off of the film please? But at Intel we got into a dilemma because we started adopting Agile back in about 2003 we had roughly around by the time I left 2,700 scrum teams countless other and other Kanban teams we had scrumma scrums we had portfolio systems and everything else but we were still producing just a lot of stuff and if I had to answer the question were we producing value? We didn't have a good answer for that and as you know this is anchored in value it's delivery of value continues stream of value to our customers and what we found was that people were using this word wrong if I had to just do a quick poll in this room you probably all would have a different view of what value is and that dilemma for our innovation work and early innovation stuff that we were doing really had a huge impact on the discussions that we were having and the impact that we were having across the groups I happened to buy that book Don Reinerdson's flow book and I turned to a particular page and that changed my life and what he had did and I'm using this with his permission because I called him right up afterwards and said thank you you know you ever find that when you find a method you've been trying to think about what to call it and then suddenly somebody named it and you just have to go reach out to him say thank you for kind of pulling my thoughts together this one is the artifact that really did and what he had did was is he put product value off on its own box and at Intel we were conflating cycle time, product cost, development expense and value all into one thing and the majority of the discussions that we were having we couldn't detach one from the other and reality is they're interconnected but they're all uniquely by themselves different and different measurables rather than just one thing but you know if you have a high value product going out you have to test these other ones affected meaning if suddenly we're too late to the market and we miss the market window product value goes down you know we had things like holiday refresh and other different events that we'd have to go through the year and if we missed that window we literally would have to wait an entire year afterwards talk about making management grumpy right if you miss the window you affect one another so once we got an understanding of this we started drawing some Pareto diagrams together by the way this is an example of a Venn diagram that is the worst one I've ever seen this was actually at an airport our values barely trust barely intercept trust partnership and innovation I was wondering what this little sliver actually is there but we started going with Venn diagrams and we came up with this and this was a probably about a month to two month venture of our getting together with the groups from the business, the technology and the users and we started to think about the interface of those three things and how they collapse together to form a solution now a solution in my book is just not the product that you're shipping it's also all of the services that are around it it's about the user experience it's about the full deal from purchase to falling in love with it and we want people to fall in love with our products and so we were thinking about these relationships between the business and the technology group this kind of light blue area up here and what we had figured out was that was majority of our conversations that we were having internally and that actually isn't value that's actually supply chain questions I need to bag apart by a certain date that's DevOps there's DevOps stuff in that light blue area that's in there and so we started building this taxonomy out and by the way, complete solutions are important why? because if you don't think of the full system and its implementation and where it goes you end up with these types of issues right here which is, you know, that's a poor implementation you know we don't want to be shipping products like this this is not how our products should look like in the marketplace, you know so the model expanded as we started the conversations deeper and we determined that the economics is what's around business and the economics are the marketability, the profitability and the affordability of the system the other corner, the implementation of the technology the land of the engineers is about manufacturability, functionality and consumability and then this mystery thing for us the user, the usage of it is actually circled around desirability usability and usefulness it's a conceptual thing and the problem with conceptual things as you know and this is where we start to get into the fuzzy thing of if I ship a particular product to one group of people they love it and another group of people might not love it but this visual framework itself started to give us a better understanding of our own product life cycle and how we go approach things so we did a quick assessment we said okay now that we believe the model let's write down all of the methods that we have internally at the company and this is a watered down version of it for Intel Legal because they didn't want to see all of our processes on the wall but this literally was a huge thing on the wall when we were doing it and we were putting up every single method that we had and if you notice heavy on technology that did not surprise me at all we're Intel Corporation we should be heavy in technology in those areas what we found was we were lighter than expected in the business area the business was not feeding our agile teams effectively they weren't providing dollars and resources and investments the way that we did and then if you notice the usage even less that one posted that went up about value management we debated it for three hours to the point where someone said it was on there someone said it wasn't we kept fighting whether or not it was or it wasn't until the end I just put up my hand and go look we've been talking about it enough that it probably doesn't exist because none of us can be in a consensus with that you're going to get these slides this is the full blown model I know it's an eye chart for you guys you guys can go look out offline we went to the next level of detail down and specifically the one in question is this business versus usage area that's value as a company you extend a promise and that promise if it's realized by your customer your customer will come back to you and say hey that was great value received value is there and if you continuously deliver value to your market then you actually build brand to the point where when my family goes to an Apple store we do an experiment I have four kids and my wife and myself we will make a queue at an Apple store we'll just stand in a line and notoriously within 15 minutes somebody will come join our queue and they don't know why we're in line but they know that there might be something good on the other side and eventually I turn to the person I go can I help you and they'll say what are we waiting for it's nothing it's just my family standing here you know it's a game we play what came out of this exercise in our company is we started having to go explore methods we didn't have methods that actually were in that value bubble box and so the things that we discovered as we went through and we'll talk about a few of them if you get a chance to listen to my talk on Kinevin that'll be it was recorded with dealing with unknowns you guys can go listen to that the ones that I'm going to focus in today as we've talked about the three circle model I'm going to talk about solutions life cycle because that one itself changed the dynamics of fixing the codec problem within our company so most life cycles that we have today look like this even in Agile we still have this we explore we develop we deploy we support we support overarching these are all activities and the problem with if you do activities what do you think happens to your organization does anyone have a guess everyone's busy and exploration sort of has anyone heard of Conway's law at all Conway's law says that if you establish a process or an architecture or in the case of say if you take your systems architecture for your whatever product you're working on and if you were to squint your eyes and look at it you could probably see the org chart that developed it the modules the sections and everything else Conway's law says that you're going to make these divisions managers report into you know unit A, unit B, unit C and it's going to look like that on the org chart our org chart was Explorer was Intel Labs and that's all they did was Explorer plus also our sales and marketing group they didn't talk to the people in support that was its own group as well develop same thing we had groups that did development and everything was a handoff inefficient handoff at that and so our Agile adoption we got to this point this develop and deploy area and legitimately just develop that was where our Agile stopped it didn't stretch forward it didn't stretch back we were stuck with Conway's law at that point what we redefined it as is we started to think about what is our innovation pipeline within our company and we decided to go to more of an outcome based life cycle and the outcomes that we came to the conclusion of that we wanted was opportunity, concept, candidate solution, obsolescence what do you think resonates with you when you see that I'm curious obsolescence we did not know how to do that as a company what's your view on that I'm fascinated that you're building obsolescence to be a company right well we didn't plan for it before which means we would have people seven years doing the same thing and you would ask them why are you building it we loaded up to the website and does anyone use it we were in a really tough spot in that case the thing about these words and the reason why we picked them is that let's say for framing an opportunity an opportunity when we think about who do we need to frame an opportunity we suddenly have a much wider aspect of who do we need well we do need the guys in the labs and we also need the sales and marketing people but maybe we also need someone from downstream engineering to be here we need someone from test we need somebody from deployment we need HR because maybe we don't have the skills to do that particular opportunity and what we were surprised with is we could actually measure the value of an opportunity versus another opportunity because of the way we framed it we ended up now being able to ordinarily sort the highest priority opportunity to the lowest level of opportunity opportunity then goes over to the next stage which is if it's picked off the top we go into this concept phase and in the concept phase we would create multiple concept examples of how to satisfy that opportunity not one, which we used to do was just one we now did five different concepts and then we can measure those because we hand them to a customer and say what do you think? and these are paper prototypes and some functional prototypes and others but it was enough to be able to measure its value the next thing, candidate, is the one we're now going to take to scale this is the one we decided that this is where we're going to have to do the tooling we're going to have to go build fabs we're going to have to go do all of this stuff in order to prepare to sell it in the millions and that's a whole bunch of different set of activities that are needed there that's when we started to also think about the operational envelopes that these things sit in you know whether or not we have to care about security and all the other bigger activities that were around it and then eventually to a solution and then to that obsolescence and obsolescence for us was how long should we support it for and when should we kill it? yeah sure yes and I do not have a flip chart here to demonstrate this what we would find in the opportunity phase is we might have a cup think of those three circles that I drew earlier and these were actually drawn on our opportunity map we would maybe have a tight coupling between the business and the technology and then we would draw the bubble of user down over here because we were unsure whether or not the capabilities we were providing and whether or not the brand offering was something that they want so we had actually a visual that showed that relationship or it might be the technology and the users were there but the business was out of alignment as well so exiting opportunity it might not mean we have a balanced solution yet but we could though think about one versus another you know and we found that the discussions became a lot easier because we actually were dealing with a whole organizational brain view versus just what the labs team thought or the sales and marketing team thought I'm not going to read all of the definitions there was a criteria that was established for the exiting of these milestones you know I'll read the opportunity the idea, event or situation is favorable characteristics in the business usage and the technology in order for it to be on that list so we had a criteria if it did not meet those it's not on the list you got to go prove that you got to go bring those together we did things like opportunity canvases you know the work that Jeff Patton and stuff has been leading we were now having deeper conversations about user value, user metrics solutions today, budgets other things were all coming in to these things that were helping to make a deeper evaluation early on to be able to give us that value analysis and the life cycle itself and I'll build this out we also then changed how we did our product life cycle that we would not paint everything with Scrum Scrum is really good in this middle candidate phase when we have real high degrees of certainty with the product we have a good well-defined set of user stories it works horribly over here in the opportunity phase we're actually having to do more experimentation safe to fell type of work in order for this to succeed the last component of this and after we went through all of this we discovered that our work environment was wrong and our work environment look like A tell me what seems more innovative to you is it A or B B more of an open space now if you're living in an open space hell today I apologize for that people misinterpreted that it's not about having just one space you should have multiple spaces and so the space I'm about to show you this innovation hub these were open spaces because they were engineered to create some different things happening in the brains of the people who were in there we absolutely still had places where people could go and just be by themselves that they needed to be so I do not believe in one size fits all so innovation hubs themselves they come with a set of tenets they come with a set of values that we're trying to go expand during these number one we wanted them to be to enable the inventor and the entrepreneur to be able to innovate to create a space like that the secondary thing with it is it needed to have an environment and a culture where serendipity can occur where because ideas as you know serendipity it's most innovation is accidental I I do my best work by trying to explain a problem to somebody and just maybe just the act of telling somebody I go oh now I know the next one it's a safe to learn place learn safe place that was my verbiage of I don't like the word fail at all so I always like it's learning we needed to be able to harvest knowledge out of there and the last one this evolved after we built them and we thought well we should carry this forward some of the work we did in this space that actually was pretty cool which is be an outpost for a higher cause give me an example of this John Deere tractor used to have a product vision they build tractors right and their product vision pretty much said build the best tractor and their sales were you know steady they changed their product vision to feed feed the world and just the simple act of changing their their overall arching corporate vision to feeding the world innovation went up sales went up everything basically was people were thinking out of the box more so being the higher cause becomes important I've already talked about serendipity pleasant surprises when a circumstance occurs I do believe that you should never have do you guys get in an elevator and you got one of your co-workers there and you're doing everything you can not to make eye contact with the person it's like I don't want to talk to this person I just want to get to the coffee you know whatever it might be you know we found that if we made open staircases people would then bump into each other and go hey Ray how's it going what are you working on try this as an experiment if you ride an elevator up to you know wherever your office is and if there's a co-worker there just turn to them and just ask them about their day whatever it might be and granted I know that when you ask that you might hear the not the thing you want to hear cause in America when someone says how is your day they're not really asking how your day is you know cause I've done that experiment where I go how's your day and I'll go horrible my dog died and they went okay can see us you know make them a little awkward with it here's a picture of one of the spaces this is one of the innovation hubs that we had in Oregon couple things to notice we got 3D printers on the back wall vinyl cutters there's an embroidery machine in this picture there's a pretty close to a $25,000 color 3D printer on the opposite wall there's laser cutters a plasma cutter and a couple of other different things to go make rapid prototypes quickly and this group of people came in and pitched an idea and they're currently working with a coach that we provided in order for them to be able to take advantage of all that cool stuff cause not everyone knows how to 3D print not everyone knows how to use a CAD drawing package well we pair with them and we teach them how to go do that we had vending machines where if you needed an Arduino or any form of prototyping things that itself you could go up with your badge and you can just get it so you didn't have to go order any of the stuff to go build a prototype we had it available for you just to go and swipe of your badge itself that's cool right I think that's really cool the printers itself this is another view of it this is a PC board milling machine so if we needed to go create a PC board and create a functional prototype we had that available as well we could literally turn something from a prototype on a CAD package to some form of prototype that you can add to somebody for a couple of days granted that is not the super clean final production version but it's good enough to go hand to a customer and say is this something that you would want here's an example that Oculus did anyone have an Oculus Rift if you ever get a chance to go to Oculus the company that is the earliest prototype right there it's kind of embarrassing but that's then it iterated like 20, 30 different versions after that so we never had that embarrassment there the innovation hubs actually encourage something called I'm gonna my stutter came out there Acceptation which in biology as you know that's where we might have created something for one thing but then it was for something else all of the prototypes in the hub had a place where people can go look at them so something six months ago something longer we could go off and look at it just in case hey what about that component right there maybe I can use it for something else that was available within the space itself this is what the activities look like these are people brainstorming together about product ideas you know here is a this person over here is in Argentina and came and visited a design session that we had within Oregon at the time here's another stand up with three of the robots where there's most of the people were remote but also still contributing in the hub itself and by the way that's what agile value we value what over what interactions face to face communication they're all face to face and they can drive anywhere on campus on those robots that we had the higher cause one and I know I might be going a little over but is we started when the printers were idle we were printing prosthetic hands for children who had lost a hand if we weren't using them during the daytime for whatever purpose maybe they were idle we started just churning these out and then we got with local school kids to come into the facility and to assemble them and this particular one right here the red and white one there the request from the kid was that they wanted something that looked like Ironman so we were also customizing things as well I don't have the pictures of the kids because I didn't have permission from their parents to show them but seeing the picture of the kid though with their Ironman looking prosthetic hand was pretty darn cool and it also helped to give us experience with the tools that were there in conclusion what it looked like though from supporting and services the two activities were in the very beginning we did a lot of sense making and problem solving and then along the way there were people involved to be able to help people get to scale the most innovative thing and this is my most proud accomplishment that I did at Intel is that before when I was doing things even if I was in the shower and I came up with a great idea that was owned by Intel because I signed an agreement as an engineer that everything that I thought about became Intel property in our model if you create a prototype and you pitch it to our executives because we would pitch it in a shark tank environment and ask people the Intel the executives would you fund it as a project and if they said no we would sign all the IP over to the inventors and we would connect them with venture capital companies in order to say if Intel doesn't want it maybe we need to launch a new company that's going to do it and we launched several companies based upon work in an innovation hub ideas and the reason why I'm sharing all this with you today ideas that I like gosh they're like a virus they can consume you I want you to take the ideas that I gave you today I wanted to live in your brain for free and I wanted to basically take over what you think about during the day I want that infection I want to get you infected with the innovation hubs and all the other things that I'm bringing up today I want you to wake up at 3 o'clock in the morning and go oh damn Ray he gave me this innovation hub idea and now I got to go build one if you do build one or if you do any of these ideas I would like feedback not want any royalties or anything like that it would just make me proud that these ideas expand and go further visit me on the agile coaching network it's a podcast everyone's got a podcast I know that I have one but you guys are welcome to join I have a number of people from India that actually join up this call it happens monthly I think the next one is actually next week it becomes a podcast if you can't call in iTunes tune in, Spotify all those syndicates and if you need to reach me there's two addresses I do work half time with the agile alliance my agile alliance email or you can reach me through my other vanity which is the new agility and you can reach me through there and I'd love the conversations do we have time for any questions okay you in the back yeah yes we would look whether or not the VIN was we would like to see that they're all balanced that they all intercept all the ideas and opportunities had those alignments drawn on the chart so the canvas we actually had an alignment diagram that people would just sketch out on there that way you could actually as a Kanban by the way Kanban is a visual signal I can easily just go look what might need attention so other question well you guys know where to find me I'm indentured at the agile alliance booth and I'm stuck there for the next couple days so you can find me there if you guys want to have a further conversation on it thank you guys