- New IT Innovation Development (N.IT.I.D) method Step 1: Brain Storming (Tripadvisor Case Study).
- New IT Innovation Development (N.IT.I.D) method Step 2: Simplify (Tripadvisor Case Study).
- New IT Innovation Development (N.IT.I.D) method Step 3: Organize (Tripadvisor Case Study).
- New IT Innovation Development (N.IT.I.D) method Step 4: Evaluate Solutions (Tripadvisor Case Study).
After brainstorming, simplifying, organizing and evaluating all the ideas, finally it’s time to select the BigData solution in which to invest.
Thanks to the QFD matrix, the key parameters and competencies that are required for fulfilling the customer needs have been identified.
Moreover, the QFD assesses how the development of a new idea will change the strategic position of the company in the market through a gap analysis.
Anyhow, which idea to choose among all the bigdata IT initiatives?
The question can be addressed by using the Pugh matrix in the table below.
In particular, in our PUGH matrix of TripAdvisor, all bigdata initiatives are the new functions (needs) to implement and putted into rows: facilitate the process, establish an integrated supply chain, create customer experiences, engage customers and provide statistics and reports.
Meanwhile, all the IT solutions (requirements) are putted into columns: WEB user interface, restaurateur interface, suppliers interface, social networks, visual charts, external company’s interface, data analytics and predictive tools.
In the PUGH matrix a final benchmark is accomplished by assigning for each interception a score that might be -1, +1 or 0, respectively if the solution proposed is worse, better or equal on satisfying the specific need to a solution defined as a reference (market).
The solution to use as a reference for the in the Pugh matrix should be either one of the best solution of the market (e.g.: Booking) or the solution AS-IS that is currently provided to the customer.
The Pugh result is given by the sum of all the scores into rows and it is representative of much innovative and useful solution is.
As an example, according to results in the PUGH matrix, the most innovative solutions are the creation of a social network and the external company interface (EDI).
However, within a strategy plan definition such solutions might be risky due to the investments involved, more IT complexity to manage and agreements with stakeholders.
On the contrary, WEB user interface and Visual Charts, that have the second highest score (3) might be easily implemented and ready to use by the users of TripAdvisor. Thus, these solutions might be developed in order to quickly get a competitive advantage.
Not necessarily, the highest Pugh score is the best solution must be choosen. In this sense, the Pugh matrix is useful, rather than univocally determining one IT initiative, to encourage and stimulate a well-defined strategy with a proper staging.
In particular, in a strategy plan based on Pugh’s results it might be stated that a social network should be created only when the customer engagement has been improved enough thanks to WEB user interface and Visual Charts. By doing so, it is possible to leverage the customer commitment for achieving the network effect when promoting the social network initiative.
Similarly, if becoming a platform for an integrated supply chain is one of the long-term objectives, a proper staging and pace of the related IT initiatives should be defined in a way that fits the company DNA (see A question about IT change management: does the DNA of the company fit your IT vendor?).
For example, if TripAdvisor is a “cautious adopter”, it will better to first implement restaurateur’s interface IT initiative in order to engage them and then involve also suppliers with supplier’s interface.
Furthermore, as an example, specifically for the data analytics and predictive tool IT solutions (requirements), the KPIs to adopt are linked with the key performances evaluated in the QFD matrix through the need “providing statistics and reports” (see Table in New IT Innovation Development (N.IT.I.D) method Step 4: Evaluate Solutions).
In particular, the key parameters are data redundancy, correlation, representatives, etc. as a measure of the quality of the data to gather and collect. In such a way, it will be ensured reliable information and insights by considering all the relevant aspects: information theory, statistic, control theory and psychology (see Caution!!! BigData S.L.I.P.S.: five tips when using analytics).
With the Step 5 (Select Solution), the N.IT.I.D method for developing new business model thanks to BigData is accomplished.
So… Would Tripadvisor adopt new BigData initiatives?
Feelink – Feel & Think approach for doing life!