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Innovation Debt

blog.pbell.com

21–27 of 27 posts

Re: Innovation Debt

#21
post #14

Earlier quoted context omitted.

This is a very short-sighted view. While losing great devs will not put your company out of business over night, it may start a death spiral that it will be very difficult, if not impossible, to recover from. Hiring may be easy for you now, but once your start up starts falling behind the curve, if will suddenly look a lot less attractive to new talent. > If there is a new piece of functionality required then smart d…

The thing about innovation dept, like architectural debt, is that it doesn't become a problem until it is too late to do something about it. And do you believe this is seriously something that is killing companies left and right? You know what kills companies? Cashflow.

I certainly lean heavily in the direction you describe; cashflow or better still, net profit is the lifeblood of any real business.

So if you're barely staying alive, anything that doesn't soon lead to revenue and acceptable gross profit is a luxury you can't afford.

On the other hand, if you are an owner with a steady profit-generating machine you want to keep it running as smoothly as possible as long as possible. Investing a relatively small amount directly in your employees' professional development is a way to help this happen.

Employees like to stay current and feel like you care enough to keep them current. Going from spending $0/yr on someone for training to $1000/yr will probably make them a lot happier than a $1000/yr raise. That might be as simple as giving a group a collective budget for books and courses on anything related to your business.

There is a definite cost when a core member of your team, no matter which level, moves on due to boredom. This is one way to keep them a little happier. Some aspects will show up in your company's resources beyond just happier employees too.

Re: Innovation Debt

#22
post #4

I'm currently working at a company that is facing this problem. The programming team has stagnated on repairing legacy systems. Innovation and modernization is a business objective, but the philosophical issue of losing 'expert business knowledge' due to technological evolution presents barriers in the process. Our code ranges from 10 to 20 years old. Most of the principles involved in that based are from those years…

Testers feel that pain, too. (Not talking about dev/testers but dedicated testers and white-box ones, in particular). Testers get bored when they're testing repeatedly testing something which does not change at all technologically. And since the productivity is usually lower with the legacy technologies, testers can't even count on many new features in each release. Yes, testers get jealous, too.

Re: Innovation Debt

#23
post #3

> You’ll lose your best developers So what? If you have paying customers and the software "works" this isn't a huge downfall. New, young and challenged developers will gladly follow in the foot steps of seasoned coders before them. > Recruiting will get harder This is a problem for every company with developers. As long as you have paying customers, recruiting isn't as big of a problem as people make it out to be. Is…

Please post where you work so we can steer clear.

Re: Innovation Debt

#24
post #3

> You’ll lose your best developers So what? If you have paying customers and the software "works" this isn't a huge downfall. New, young and challenged developers will gladly follow in the foot steps of seasoned coders before them. > Recruiting will get harder This is a problem for every company with developers. As long as you have paying customers, recruiting isn't as big of a problem as people make it out to be. Is…

Please post where you work so we can steer clear.

His profile lists "CEO/Co-Founder of competehub.com and ignitelab.net"

The irony, of course, is the tagline used at ignitelab.net is: "Ignite Your Innovative Internet Business Idea Right Now"

Re: Innovation Debt

#25

Earlier quoted context omitted.

Please post where you work so we can steer clear.

His profile lists "CEO/Co-Founder of competehub.com and ignitelab.net" The irony, of course, is the tagline used at ignitelab.net is: "Ignite Your Innovative Internet Business Idea Right Now"

Maybe it should be "Ignite Your Innovative Internet Business Idea, Unless of Course Your Customers Are Still Paying"

Re: Innovation Debt

#26
post #16
post #11

Earlier quoted context omitted.

Fair enough -- loads of enterprise IT and IT software experience on my back... captive IT orgs creating internal systems & utilities. Again, so what? These are _costs_ centers and therefore treated as such. As long as the accounting team can add to the general ledger and the trucks ship the goods, the company doesn't go broke and people get paid. If you need innovation for your company to survive, then you do the inn…

I should have been clearer: innovation debt when combined with technical debt is the issue. When the internal systems stagnate and become a) unstable, b) un-supportable, c) un-upgradable, there is a direct impact to business operations, and escaping from the cycle is time consuming and painful. I did exactly as you suggested, btw, and created a team whose explicit charter is innovation & directed R&D.

Agreed. Feel free to get in touch if you wanna discuss further. (details in profile) I've seen this type of thing pretty much everywhere.

c) un-upgradable, there is a direct impact to business operations

I'd love to know how to measure this. Any VP of Tech/CIO would be fired if this happened.

Re: Innovation Debt

#27

Earlier quoted context omitted.

His profile lists "CEO/Co-Founder of competehub.com and ignitelab.net" The irony, of course, is the tagline used at ignitelab.net is: "Ignite Your Innovative Internet Business Idea Right Now"

Maybe it should be "Ignite Your Innovative Internet Business Idea, Unless of Course Your Customers Are Still Paying"

Classy.
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