The Journey of
DNB Way of Innovation Vegard DypĂĽs Hansen SVP / Group Innovation Manager
Agenda
▪ The Journey of DNB Way of Innovation ▪ Key learnings Q
&
A
Increased focus on innovation the last 4 years
Increased focus on customer experience ‌Now, dominant digital platforms across all segments
Very strong business models and financial performance
But…
Not many asked for innovation 4 years ago… …and definitively not for an “innovation ecosystem”
Award for the world's best innovation book.
Listen to him!
Pitch
Do you want more innovation for the money?
Okay, then we need a system to solve key jobs of innovation better, faster, and cheaper
It’s super easy!
1
…we have an MVP
2
...Lets Test it with your folks for 4-5 months
3
… Improve based on learnings
Executive Management Group
Business Unit 1.
Okay…
DNB WAY OF INNOVATION
High level assumption
3-4 iterations to get desired effects
Design (improve)
4-5 months Test Evaluate
1# Iteration Business Unit 1.
Preparations
1 Create Thesis
2 Map Portfolio
3 Choose Teams, Innovation Board, and Manager
Innovation Thesis Filter ideas + align with strategy.
Where do we focus? 1. focus areas we are going to invest in (problem spaces, business models, technologies), and the
Where do we not focus? 2. anti thesis which outlines areas we are not going to invest in (problem spaces, business models, technologies).
Business Unit Portfolio 1#
Innovation Board
Innovation Manager
4 teams
Ready for testing Design (improve)
Evaluate
Test
PRACTICE
STRATEGY
Innovation Board
MANAGE
Innovation Manager
4 Teams
PRACTICE
STRATEGY
Board Teams Thesis
Portfolio
Decision Guide
Product Life Cycle
Explore
Test
Build
Grow
Profit
MANAGE
Manager Action Plan
Pipeline
Toolbox
Dashboard
Business Model Canvas
Evidence Map
Experiment Card
Experiment Types
…some more TOOLS from iteration 1#
Product Life Cycle H3 SEARCH
Key Question:
H2 GROW REVENUES
H1 IMPROVE PROFITS
H0
CREATE
VALIDATE
SCALE
OPTIMIZE
KILL
Do we have an innovator with motivation & skills to solve an important problem?
Do we have a solution customers will use and pay for?
Do we have a scalable solution that generates new revenues?
Do we have a sustainable business model that generates attractive profits?
Validation: 2
3
1
2
3
1
2
3
1
2
3
Identify and understand important problems
Motivate & Recruit Talented Innovators
Generate high quality ideas
Validate customer & problem
Validate solution & customer value
Validate channel & payment
Tune The Growth Engine
Accelerate Growth
Validate Business Model
Tune The Business Model and Maximize Profits
Improve Business Model
Review & redesign and or disrupt business mdoel
Key jobs:
1
IRL
GROW
9
8
7
EXPLORE
VALIDATE
6
Definition
Traction / Growth
The Operating Model
Team on a Mission Development & Launch
The Business Case
5
The Product / Solution
4
Team on a Mission
3
The Idea
2
The Customer Need
1
Innovator on a mission
Key Question
Outcome
Q13 Invest or divest?
Evidence based cost / income projections.
Q12 How can we maximize the growth rate?
Quantitative evidence of profitability and traction.
Q11 How is this organized?
Evidence that the team setup can drive growth.
Q10 What is the cost structure?
Quantitative evidence of what are the key cost drivers.
Q9 What is the infrastructure?
Quantitative evidence that we can continuously grow the product.
How fast can we develop it? What is the best way to launch?
Fully-functional product in the market.
Q8 Is the envisioned product worth developing?
Evidence based business case.
Q7 Is the envisioned product legal, compliant, and secure?
Qualitative evidence that we are unlikely to lose our banking license.
Q6 Can we develop the envisioned product?
Qualitative evidence that we have capabilities needed to develop it.
Q5 How do we make money? Q4 How do we offer and create customer value?
What team will validate the idea?
Do they have the capabilities needed to do so?
Quantitative evidence of value creation (e.g. revenue) and early traction. MVP in the market and evidence* based product roadmap. (*quantitative evidence of product addressing the customer needs)
Specific team with a mission to validate or invalidate the idea.
Q3 How can we solve the customer problem or need?
Qualitative evidence that the idea is solving the identified problem or need.
Q2 What is the problem or need?
Qualitative evidence of problem or need of profiled customer segment.
Q1 Who is the customer?
Profile of the customer segment.
Who is the innovator? Which idea or problem card?
Specific innovator with a mission to test specific idea or problem card.
Deliverables
$
Idea Progress Deck
Self Evaluation Design (improve)
Test
Evaluate
Improved speed
Valuable feedback
Several small decisions
There are a lot of benefits, the positive thing is that it is more quickly to get project decisions.
We where forced to rethink some of the things and insight we already had. Really valuable for the teams to have regular feedback from decision makers every second week.
This is quite exceptional in DNB standards - due to regular feedback - teams can adjust much faster.
New Roles vs Existing
Some Tools difficult
More training and support
Executive Management Group
Business Unit 1.
Good work, lets keep doing this!
Group Management Committee
Good, Lets do this in every business unit!
New Iterations Business Unit 1 Business Unit 2 Business Unit 3
Improve Improve
Evalute
Test
System Iteration 1#
2#
System #2
Simpler and more understandable tools
2# iteration
1# iteration
1# iteration
Business Unit 1
Business Unit 2
Business Unit 3
Preparations
1 Create Thesis
2 Map Portfolio
3 Choose Teams, Innovation Board, and Manager
DNB Group Portfolio …traction: We want this!
DNB Group Portfolio New and existing teams
Ready for testing Design (improve)
Evaluate
Test
2# iteration
1# iteration
1# iteration
Business Unit 1
Business Unit 2
Business Unit 3
Self Evaluation Design (improve)
Test
Evaluate
BU 1#
How effective are we solving the key jobs of innovation? Great! Proven track-record and ability
4 3,5
Good consistent practice and ability
3 2,5
Inconsistent practice and ability
2
2,75
1,5 1 0,5 0
2,0
2,5
2,5 1,75
1,75
1,5
Lack of practice and or ability
BU 2#
How effective are we solving the key jobs of innovation? Great! Proven track-record and ability
4 3,5
Good consistent practice and ability
3 2,5
Inconsistent practice and ability
2 1,5 1 0,5 0
2,5
2,5
2,75
2,5
2,5
2,0
2,0
Lack of practice and or ability
BU 3#
How effective are we solving the key jobs of innovation? Great! Proven track-record and ability
4 3,5
Good consistent practice and ability
3 2,5
Inconsistent practice and ability
2 1,5 1 0,5 0
2,0
1,75
2,0
1,75
1,5
1,0
1,5
Lack of practice and or ability
Improved‌ but far from done
Key Lessons
Improved awareness and progress, but still‌
Minimum Viable
Leadership Support â–Ş Need to see it & try it â–Ş To really believe & invest in it Design (improve)
The ones with power to fix the root-causes need to be actively involved
Test Evaluate
Minimum Viable
Case for Innovation
Needs to engage
Needs to show cash and big upside
Smal investment and little risk to get started
Minimum Viable
System
1. Start awkwardly simple! • • •
Key jobs / activities Success Definitions (outcomes) Room for autonomy/flexibility
2. Follow up:
• Measure it (ensure accountability) • Reward it (increase motivation) 3. Improve based on: • Learning • Maturity levels
Minimum Viable
Board(s) and Team(s) • Motivation • Belief • Skills • Time
Questions? Q
&
A
Thanks!
Vegard DypĂĽs Hansen M: (+47) 41 93 12 43 E: vegard.dypas.hansen@dnb.no