Presentation at Hargraves CONNECT: The evidence-based organization
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Transcript of Presentation at Hargraves CONNECT: The evidence-based organization
The Evidence-Based Organization: APlatform for InnovationA Platform for Innovation
Professor Dr Jan ReckerWoolworths Chair of Retail Innovation
Information Systems School Queensland University of TechnologyInformation Systems School, Queensland University of Technology
“The best way to create the future is to shape it”y f p
Innovation, research and customer‐orientated transformation are key tosurviving a rapidly changing retail landscape according to Woolworths Ltd CEOg p y g g p gGrant O'Brien.Mr O'Brien addressed the QUT Business Leaders' Forum today saying theinvestment of nearly $1 million to fund a Chair of Retail Innovation would helpthe sector better recognize the needs of customers
http://www.news.qut.edu.au/cgi‐bin/WebObjects/News.woa/wa/goNewsPage?newsEventID=56077
the sector better recognize the needs of customers.
http://hbr.org/2012/10/data‐scientist‐the‐sexiest‐job‐of‐the‐21st‐century/ar/pr
Recognizing the relevance of Evidence
Seeking an understandingg gof true cause-effect relations
Using flawed decision models
Relying on status (confidence) rather than facts (evidence)
Realizing the availability of potential evidence
Opposing tradition, intuition, folklore and rules of thumb
EVIDENCE-BASED DECISIONSBasic ConceptsBasic Concepts
“Relying on valid and reliable evidenceRelying on valid and reliable evidenceand translating them into practices thatsolve problems and innovatesolve problems and innovateorganizations.”
Levels of EvidenceWhich le el is the basis for o r decisions?Which level is the basis for your decisions?
What is your source of evidence?y
External External Where have other organizations
produced relevant evidence? Where has research produced relevant
evidence?
Internal Where do we produce relevant
evidence?evidence? Where can we produce relevant
evidence?
Example – find your internal evidencep y
“What can we learn about success from within our own company?”from within our own company?
Inserting scientific principles
Positive Deviant
Inserting scientific principles
What is the evidence for success?
Positive Deviant
Positive Deviant
Positive Deviant Positive Deviant
Who is truly successful?
Why are they truly ss p
erfo
rman
ce
Positive Deviant
Positive Deviant
y y ysuccessful?
Which true root causes can we S
ales
pro
ces
Average
insertelsewhere?
Number of customers
What Causes Performance?
“It’s not necessarily the process” f ll th d l everyone follows the same process model
“It’s not the competition” process performance independent from local context
Reward mechanisms budget, incentives, degrees of freedom
Individual motivation and the willingness to Individual motivation and the willingness to‘do something extra’
Culture: focus on safety & on customersy Creativity: finding new solutions for products,
display and service; willingly deviate from standardized processstandardized process.
The Underlying Model: “Research as a Service”
Inserting scientific principles into emerging evidence‐b d i tibased organizations.
Research as an innovation support serviceResearch as an innovation support service.Novel conceptual perspectivesRigorous scientific principlesQuality empirical evidenceIncreased research bandwidthUnbiased observationExplores evidence internallyand externally
Ability to develop capability.
Wrap‐Up: From Confidence to Evidence
Moving to reliable, valid and ultimately credible decisionsRequires data and scientific analysis capabilitiesRequires data and scientific analysis capabilities
Can be provided by university and research institutions, but are increasingly sought as internal capability
All i li i l d i l id fAllows capitalizing on external and internal evidence for organizational innovationMeans levelling of hierarchiesMeans levelling of hierarchies
“If the decision is going to be made by facts, then ’ f t [ ] l If th d i i i ieveryone’s facts […]are equal. If the decision is going
to be made on the basis of people’s opinions, then
mine count for a lot more.“
13
James Barksdaleformer CEO Netscape
Key LessonsInnovations require decisions about unstructured andInnovations require decisions about unstructured and complex problems. Risk of failure is high.Evidence-based decision-making increases ginnovation reliability, credibility and ultimately chance of success.Y d h t b t t fYou do have access to – but not awareness of –internal and external evidence. Data scientists are becoming an essential resourceData scientists are becoming an essential resource.
Prof. Jan Recker
Woolworths Chair of Retail InnovationInformation Systems SchoolQueensland University of Technology
e [email protected] www janrecker comw www.janrecker.comt janrecker