The Organization and Architecture of Innovation: Managing the Flow of Technology


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A plan for integration

It was introduced first a decade ago and has been proven to work well for real business use especially because of its clarity, consistency and simplicity. This fourth edition follows the same foundation, but has been fully rewritten and renewed to respond to information technology and digitalisation management challenges in the s. Unlike many other methodologies, the Business Technology Standard is available as an open-source provided by a non-profit community, called the Business Technology Forum, for the benefit of the entire information technology society.

The model is constantly renewed and developed with dozens of companies and organisations ensuring that it is up-to-date and in alignment with the latest real-life challenges. The Business Technology Forum runs several development sprints per year and publishes two releases annually. Irrespective of the use of other standards, the Business Technology Standard provides the bigger picture and clarity for managing information technology and digital transformation. The Business Technology Standard operating model defines how business value can be created with technology management.

The operating model has five value adding disciplines: demand, development and services, complemented with the two overarching disciplines: strategy and governance, and sourcing and optimisation see the picture below. Specifically, it consists of planning, building and running the value streams with common strategy, governance, sourcing and optimisation.

Procter & Gamble’s Organizational Structure for Managing Products

Value streams have end-to-end objectives to create business value via the operating model. Each value stream has a business owner, mission statement, financial plan and portfolio visibility to the:.


  • Procter & Gamble’s Organizational Structure Type and Features.
  • Sizing the opportunity?
  • Digital risk: Transforming risk management for the s | McKinsey.

Value streams tend to sub-optimise the plan-build-run flow to achieve their business objectives which is acceptable as long as they follow the disciplines set by the operating model. The disciplines define unified control points for the sake of transparency and common steering to ensure that enterprise-level business objectives are met. The more the value streams are relying on shared human and financial resources, the more decisions are taken on enterprise-level and vice versa.

If the value streams are willing and able to invest money and resources and follow the given guidelines and transparency requirements, they can become fairly autonomous in their decision-making and value-creation. Minimum Viable Governance MVG within the business technology operating model is implemented by defining a minimum number of control points, evaluation criteria and by expecting value streams to follow the commonly defined disciplines.

At each control point, people running a value flow must evaluate whether they can make the decisions by themselves or if it should be escalated to the enterprise level. For example, consider a case where a value stream focuses on developing the digital frontline and is given resources money and people to do it efficiently with the DevOps methodology. This value stream can, in practice, use the morning to plan a user story, implement it in the afternoon and release the service in the evening without asking any permission from an enterprise-level governance body.

However, this can only happen if the answer is YES in all three evaluation points. The value stream documents the user story or the development initiative , adds the development request into a backlog and keeps a log of the service releases. When stored in a business technology management system, the control points and decisions become transparent and, in this way, the self-evaluation can be controlled and the possible misuse traced, if necessary.

The Business Technology Standard defines sequential and incremental development flows and four sources of demand:.

A value stream can decide to focus on certain sources of demand or development flows only. For example, a dedicated digital innovation stream can take input from the ideas-and-concepts source, enable fast prototyping and develop the solution within the incremental development flow. On the other hand, an enterprise architecture-driven stream can take input from the capability planning and follow a sequential development flow. In reality, however, the value streams use several sources of demand and development flows. The Business Technology Standard capability model defines five disciplines and 28 related capabilities in the form of a standardised framework.

The framework consists of four horizontal disciplines strategy and governance, sourcing and optimisation, development and services and a vertical demand discipline intersecting with the other four disciplines. The demand discipline defines strategy-to-plans capabilities, while the other four disciplines define capabilities for plans-to-capability and plans-to-benefits progress flows. The outcome-to-insights is a progress flow closing the loop and provides input back to the demand. The purpose of demand capabilities is to define the strategic intention, capture the business demand, turn them into plans and make development initiatives.

Strategy and governance as well as sourcing and optimisation take the plans as an input and implement the required capability and capacity to implement them. They also provide guidance and steering to development and services disciplines which deliver the actual business benefits. The capability model and its 28 standardised capability elements or blocks, form a good foundation for self-assessment and identify the strengths and weaknesses of an organisation in a holistic way. The chapters in the Business Technology Standard are based on the capability model. The roles are split in five career identities each defining passion, mission and key measurements.


  • Development of Knowledge Portals for Nuclear Power Plants.
  • Breadcrumb.
  • Understanding Markov Chains: Examples and Applications (Springer Undergraduate Mathematics Series).
  • process innovation;
  • Author Profiles:?

In agile terms, the identities can be described as tribes consisting of people with a similar type of passion and competence and sharing best practices and experiences. The Business Technology Standard proposes a flat role hierarchy consisting of three levels: expert, lead and officer.

Leads, managers and experts have more specific responsibility areas and are the key people to deliver the business value and execute the operating model and disciplines in practice. Large organisations often have more levels of hierarchy, yet from the roles and responsibilities viewpoint, the three-level hierarchy is usually enough. Roles and the role levels differ from organisation and organisational positions. Other editions. Enlarge cover. Error rating book. Refresh and try again. Open Preview See a Problem?

Details if other :. Thanks for telling us about the problem. Return to Book Page. Allen ,. Gunter Henn.

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The Organization and Architecture of Innovation - Thomas J Allen - Häftad () | Bokus

Building on his pioneering work on the management of technology and innovation in his first book, Managing the Flow of Technology, Thomas J. Allen of MIT has joined with award-winning German architect Gunter Henn of HENN Architekten to produce a book that explores the combined use of two management tools to make the innovation process most effective: organizational structu Building on his pioneering work on the management of technology and innovation in his first book, Managing the Flow of Technology, Thomas J.

Allen of MIT has joined with award-winning German architect Gunter Henn of HENN Architekten to produce a book that explores the combined use of two management tools to make the innovation process most effective: organizational structure and physical space. They present research demonstrating how organizational structure and physical space each affect communication among people--in this case, engineers, scientists, and others in technical organizations--and they illustrate how organizations can transform both to increase the transfer of technical knowledge and maximize the "communication for inspiration" that is central to the innovation process.

Allen and Henn illustrate their points with discussions of well-known buildings around the world, including Audi's corporate headquarters, Steelcase's corporate design center, and the Corning Glass Becker building, as well as several of Gunter Henn's own projects, including the Skoda automotive factory in the Czech Republic and the Faculty for Mechanical Engineering at the Technical University of Munich.

Allen and Henn then demonstrate the principles developed in their work by discussing in detail one example in which organizational structure and physical space were combined successfully to promote innovation with impressive results: HENN Architekten's Project House for the BMW Group Research and Innovation Centre in Munich, cited by Business Week April 24, in naming BMW one of the world's most innovative companies. Professor Thomas Allen is the originator of the Allen curve.

Roles and responsibilities model

In the late s, Tom Allen undertook a project to determine how the distance between engineers' offices coincided with the level of regular technical communication between them. The results of that research, now known as the Allen Curve, revealed a distinct correlation between distance and frequency of communication i. Get A Copy. More Details Original Title. Other Editions 9.

How to plan your office to be the best on the block

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  • Why you need a digital data architecture to build a sustainable digital business | McKinsey.
  • Breadcrumb.
  • The Organization and Architecture of Innovation.
  • What is process innovation? - Definition from theotupuratit.cf.
  • Evaluate and reengineer processes;
  • Managing the Flow of Technology.
  • The Golden Chance.
The Organization and Architecture of Innovation: Managing the Flow of Technology The Organization and Architecture of Innovation: Managing the Flow of Technology
The Organization and Architecture of Innovation: Managing the Flow of Technology The Organization and Architecture of Innovation: Managing the Flow of Technology
The Organization and Architecture of Innovation: Managing the Flow of Technology The Organization and Architecture of Innovation: Managing the Flow of Technology
The Organization and Architecture of Innovation: Managing the Flow of Technology The Organization and Architecture of Innovation: Managing the Flow of Technology
The Organization and Architecture of Innovation: Managing the Flow of Technology The Organization and Architecture of Innovation: Managing the Flow of Technology
The Organization and Architecture of Innovation: Managing the Flow of Technology The Organization and Architecture of Innovation: Managing the Flow of Technology
The Organization and Architecture of Innovation: Managing the Flow of Technology The Organization and Architecture of Innovation: Managing the Flow of Technology

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