New IT Innovation Development (N.IT.I.D) method Step 5: Select Solutions (Tripadvisor Case Study)


NITID-Select_Solutions

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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.

Pugh_Matrix

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!

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New IT Innovation Development (N.IT.I.D) method Step 4: Evaluate Solutions (Tripadvisor Case Study)


NITID-Evaluate_Solutions

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After brainstorming new idea and organize them, the next step of the N.IT.I.D. method is to evaluate the solution proposed for the TripAdvsor case study.

The KJ method in the Step 3 (Organize), it has been possible to organize the un-structured brainstormed ideas in a structure way. The next phase is to connect all the ideas grouped with KJ method with the key performances needed in order to satisfy new functionalities.

In order to evaluate the solutions, all the key performances must be measurable. For example, the “facilitate the process” BigData initiation needs a new WEB interface to develop in order to create a list of pending reviews. In this case, some key measurable parameters for the interface should be the delay and inconsistency between the pending reviews shown and the incoming new receipts.

In the Table below are shown all the BigData ideas, IT infrastructures required and the KEY parameters that should be considered respectively as:

  • new needs
  • requirements
  • and Key Performance Indicators (KPIs)

BigData_Initiative - needs, requirements and KPIs

By putting needs into rows and the list of KPIs listed in the Table into columns, it is possible to create the QFD (Quality Function Development) matrix (see Figure below).

BigData Initiative QFD Matrix

In this example it has been assigned a score for each KPI with values X (no relations), 3 (weak relation) or 9 (strong relation) and an importance rating (e.g. from 0 to 9) for each new need accordingly to the priorities and objectives of the company.

For example, the importance rating should be assessed by considering factors such as the customer value curve, opportunity to innovate for getting a competitive advantage or risks (e.g.: disruptive innovations from competitors). Finally, the QFD score for each KPI is given by the sum of the scores intercepted by weighting (multiplying) them accordingly to the importance rating.

The aim of the QFD matrix is to link in a structured way the ideas (needs) with the key performances. Moreover, by assigning a score for each KPIs that measure its importance in order to satisfy the need it is possible to obtain an indicator of relevance for each key performance.

In the example, KPI inconsistencies (fake reviews and Negative SEO) is the most relevant KPI to consider since got the highest score (117).

Meanwhile, according to the importance rating, the most relevant ideas are Engage Customers and Facilitate the Process.

However, are they the ones that should be really implemented by TripAdvisor?

To be continued…

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New IT Innovation Development (N.IT.I.D) method Step 3: Organize (Tripadvisor Case Study)


NITID-Organize

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A new business model for Tripadvisor has been developed thanks to BigData IT Innovations.

After brainstorming (Step 1) and then simplifying (Step 2) the founded new opportunities emerged from such a new business model, the next step for the N.IT.ID method is: Organize.

The purpose of organizing is to obtain a set of ideas and innovations that are structured according to a criteria that will be useful during the remaining two steps 4 and 5: Evaluate and Select.

So, after Step 2- Simplify, on the table there are the following opportunities for Tripadvisor thanks to BigData Innovation:

A) Facilitate the Process

B) Establish an Integrated Supply Chain

C) Create Customer Experiences

D) Engage Customers

E) Provide Statistics and Reports

 The Step 3 – Organize, consist on the following procedure:

  1. unify the remaining ideas into rational association of affinity group;
  2. rank the groups;
  3. group the unified ideas into a rational association affinity group (2nd level group) as it has been done at point 1;
  4. assign to each 2nd level group a general topic (avoid a list of ideas) or a common theme;
  5. identify relations among groups (correlations, dependencies,…).

In details:

1) Unify the remaining ideas into rational association of affinity group

In order to create affinity groups, it is necessary to define a criteria. Let’s assume as a criteria the function in the company (value chain), that would be involved for each idea.

With such a criteria the affinity groups are as follows:

Affinity_Groups

In particular, within the organization of Tripadvisor, A) facilitating the process and B) establishing an integrated supply chain are about its Operations’ activities.

While C) Creating Customers Experiences and D) Engaging customers they are responsibilities under Sales & Marketing department.

Finally, D) Providing Statistics and Reports might be considered as an additional Service (e.g.: after sales).

2) Rank the groups

As it has been done during the previous N.IT.I.D Step 2 – Simplify, it might be useful to further reduce the number of new initiatives by ranking the affinity groups and eliminating those groups that are less important.

For example, each team member should give a vote between 1 to 6 accordingly to its perception of importance (1 = low, 6 = very high) and then keep only the highly scored groups.

In this case, since there are only three groups, it does not make sense eliminate any groups.

Better would be to keep all the three groups for the next N.IT.I.D. – Step: Evaluate.

3) Group the unified ideas into a rational association of affinity group (2nd level groups)

In a similar way at point 1, group again the groups of ideas that are similar according to another criteria.

Using as a second criteria the Stakeholder potentially involved that are Customer, Suppliers (Restaurateurs and Hotels) and Collaborators, here below the 2nd level affinity groups:2nd_Level_GroupsIn particular, Customers & Suppliers are engaged in the idea A) facilitating the process and B) establishing an integrated supply chain.

While, Customers & Collaborators  are involved for C) Creating Customers Experiences and D) Engaging customers.

Finally, D) Providing Statistics and Reports might be considered as an additional Service (e.g.: after sales) for Suppliers.

4) Assign to each 2nd level group a general topic or common theme

As for N.IT.I.D Step 2 – Simplify, define a general topic or common theme that labels each 2nd level groups.

As labels for 2nd level groups just keep the stakeholder involved so that the general topics are:

  • Customers & Suppliers
  • Customers & Collaborators
  • Suppliers

5) Identify relations among groups (correlations, dependencies,…).

The last point is to identify relations among the 2nd level groups. In particular, as it is shown in the Figure below, there are two relations: one that is related to customers and one that is related to suppliers.

Precisely, the customer as a stakeholder create a link between “facilitate the process” and “engage customer” functionalities, while suppliers enable a connection between “integrated supply chain” and “provide statistics” ideas.

Groups_of_Ideas

An example how it looks like…

The Step 3 – Organize is actually the so called KJ Method developed by Jiro Kawakita.

Writing all the ideas into cards and using a whiteboard where to post them, it would be useful in order to have always the view of the “big picture” during the process.

Here below an example of it might look like a N.IT.ID process after Organize (Step 3).

KJ Method

To be continued…

Feelink – Feel & Think approach for doing life!