Designing digital transformation v.2.7

Nigel Green 5Di Limited

Hong Kong, April 2016

http://www.azlyrics.com/lyrics/doors/roadhouseblues.html

“The future's uncertain, and the end is always near.”

Or at least nearer than we might think.

2016 will be shaped by

digital transformation

with availability, capabilities, and business needs

being the biggest related issues

IT leadership will face.

Credit to Patrizia Bertini: European Director of Research and Insights at Wipro Digital

So what’s do be done?

DESIGN

NEW SERVICES INTRODUCED

ORGANISATION MODEL

TECHNOLOGY ARCHITECTURE

CHANGE JOURNEY

Digital Transformation: an energy business story

We’ve been operating like this for many years - but the world’s changing…

Mr. Blue the COO

We must start the journey - where to start?

Mr. Black, the Progranme

Director

Mr. Red, the IT

Director

Business Unit Leads

Mr. Green, the

Consultant

He recognised, however, that this would be a far-reaching transformation.

“It’s all about better

Meter reading” “It’s a way to

introduce new tariffs”

There wasn’t common understanding of the scope and impact…

“We just need a few new web & mobile apps”

“Its just another meter roll-out

project” “There are some new

Cyber Security Threats”

https://chapel-group.com

2015 …..2020….. 2025

Timely visibility of external events

Event information processed at the edge of the Grid

Insights delivered to field workforce quickly

Business-wide situational awareness

Grid & Asset Management Analytics

Customer personalised customer support

Insights to customers

Provide information to the right people at the right time.

2015…..2020….. 2025

They knew, however, the plan would change over time. More on how they tackled this later.

https://chapel-group.com

They knew, however, the plan would change over time. More on how they tackled this later.

Top-level support was won – the most important step.

“We’re much clearer on our direction. And

we now have the support of the Exec

Comm.”

New Ways of Working for all

A two-speed approach to IT. http://www.gartner.com/it-glossary/bimodal

Mode 1

Mode 2

“Our Australian sister company wants help with

their IT Strategy. ”

Mode 1

Mode 2 “Should they adopt Bimodal

IT?”

BU Leads

+ Mode 1

Mode 2 + +

The whole business sees the need for, & adopts constant-change: People, Processes & Technology.

Integrate Re-assess

Innovate

Commoditise

Govern

People, Processes & Technology

MODE 1

MODE 2

The destination must include the whole business – nothing should be out of scope.

Integrate Re-assess

Innovate

Commoditise

Govern

People, Processes & Technology

Mode 1

Mode 2

“Gartner’s work on Bimodal provides valuable advice on how to kick-start an enterprise digital transformation. But leaders wishing to create a significant, lasting impact on IT performance should look to move beyond the Bimodal paradigm in the space of months rather than years.” “Nothing should be out of scope—enterprise architecture, process, budgeting, and governance, risk and compliance”. - Jez Humble, “The Flaw at the heart of Bimodal IT, continuousdelivery.com

http://continuousdelivery.com/2016/04/the-flaw-at-the-heart-of-bimodal-it/

The technical bit

Date: early 2013

“My work is done!” “Nice job!”

Tweet

Tweet Tweet

Tweet

Something new was creating a buzz, so he investigated, here’s what he found…

Blog

Blog

Blog

Date: mid 2014

Tweet Tweet

Tweet Tweet

Blog

Blog

Blog

Some firms were enjoying “digital” advantages more than others, but how?

Digital natives: •  Google •  Netflix •  Uber •  Amazon •  Ebay •  PayPal Holdings Inc. •  Airbnb Inc., •  Groupon •  Expedia

… and many more.

Traditional firms: •  GE •  Hewlett Packard Co. •  Capital One Financial Corp. •  Goldman Sachs Group Inc. •  The Guardian Media Group (UK) •  Thomas Cook PLC (UK) •  William Hill PLC (UK)

… watch this space.

Who’s leading?

A new approach is gaining traction. What do these firms have in common?

Date: early 2016

They’re all adopting Microservices

Over half of organizations across the US, UK, India and Israel plan to deploy microservices to improve their agility in the next 12 months, according to new research by IDG Connect –

March 15th 2016

http://www.businesswire.com/news/home/20160315005089/en/IDG-Connect-Microservices-Firms-Battle-Monolithic-Restrictions

http://scn.sap.com/blogs/geetikashukla/2015/02/25/microservices-the-dismantle-of-the-monolith

•  Small •  Independent •  Lightweight •  Single purpose •  Communicate through well-defined interfaces (like REST APIs) •  Communicate events in Near-Real Time

“…you can put lipstick on a pig, but it’s still a pig.” “You can wrap an old fish in a piece of paper called ‘change.’ It’s still gonna stink after eight years.” President Obama, 2008 The Microservices vanguard, 2016

Layering “digital” on top of legacy systems won’t achieve genuine transformation over the long term.

}  Agility. By breaking down functionality to the near atomic level, development teams focus on only updating the relevant pieces of an application. This removes a painful process of integration experienced with monolithic applications. Development processes that used to take months now take weeks.

}  Efficiency. Far more efficient use of code and underlying infrastructure. Users report significant cost savings— reducing the amount of infrastructure required to run a given application by 50%.

}  Resiliency. The dispersion of functionality across services can avoid a single point of failure. The result is systems that perform much better with very limited downtime, and can scale seamlessly on demand.

}  Revenue. Faster iteration and less downtime add up to more revenue. User retention and user engagement increase as your product continuously improves.

Maybe, a better, faster cheaper to deliver…

https://chapel-group.com

“Google is helping to power the world with clean energy. Our goal is 100% renewable power, and so far we’ve committed to purchase over 2 gigawatts of renewable energy – equivalent to taking nearly 1 million cars off the road and making us the largest non-ut i l i ty purchaser o f renewable energy in the world. …”

Do you know who your “digital-disruptor” might be?

Adopting Microservices may seem attractive but…

CC-BY-SA skippyjon via Flickr

http://syntegrity.com.au/blog/how-to-avoid-a-messy-transition-to-microservices/

Before adopting Microservices your firm must :

ü  Be ready and willing to use Cloud platforms such as AWS, Azure or Google Cloud Platform.

ü  Have (some) Microservices expertise available (maybe from your vendors?)

ü  Have experience or be ready to move to Dev/Ops deployment methods

ü  Have good systems architecture (specifically SOA) expertise

ü  Be willing to adopt Agile ways of working

ü  Have a track-record in building good software!

Date: late 2015

The ACME checklist: x  Be ready and willing to use Cloud platforms

x  Have (some) Microservices expertise available

x  Have experience or be ready to move to Dev/Ops deployment methods

x  Have good systems architecture (specifically SOA) expertise

ü  Be willing to adopt Agile ways of working

ü  Have a track-record in building good software!

ü  Google “Microservices”, watch the movies (Fred George’s video highly recommended), and read the many articles.

ü  Talk to your vendors- get them to explain their plans for Microservices and

how they can help (Microsoft Azure Service Fabric, for example). ü  Go on a training course (courses are being given by Chris Richardson in

China next week) ü  Check your internal skills base – you might be able set off a “Skunk Works”

PoC.

ü  Talk to academia – maybe they’re thinking about a Microservices “hackathon”?

Bringing it all together

“Any attempt to base today’s actions and commitments on predictions of future events is futile.” - Peter F. Drucker, Managing for Results, 1964

The future seems complex and uncertain.

CC-BY jurvetson via Flickr

So how do we plan with so many unknowns?

CC-BY milos milosevic via Flickr

“Ambiguity is central to Boyd’s vision… not something to be feared but something that is a given…We never have complete and perfect information. The best way to succeed is to revel in ambiguity.” –Grant Hammond,

Transition State Planning

A B

Transition State: Outcomes Objectives

Long term

Short term

Observe - Orient - Decide - Course-correct

Integrate Re-assess

Innovate

Commoditise

Govern

People, Processes & Technology

They’re all adopting Microservices (MSA)

They knew, however, the plan would change over time. More on how they tackled this later.

2016 2023

They’re all adopting Microservices (MSA)

Mode 1

Mode 2

? ?

They knew, however, the plan would change over time. More on how they tackled this later.

Transition State: Outcomes Objectives

Long term

Short term

Observe - Listen - Course-correct

“We have the maps and charts we need

for the journey – let’s go!”

http://www.azlyrics.com/lyrics/doors/roadhouseblues.html

The future's uncertain, and (maybe) the end (of old ways of working) is near.

nigel.green@5dinnovation.com www.5dinnovation.com

Twitter: taotwit https://www.linkedin.com/in/nigelgreen

}  Digital: The impact of digital technologies on interaction with the customer, employee or any person.

}  Transformation: ~50% or more of the business operation will be touched by the change.

}  Design: A plan or drawing produced to show the look and function or workings of a building, garment, or other object before it is made.

http://www.artofmanliness.com/2014/09/15/ooda-loop/

•  blindly ‘going digital’, by any means

•  forcing everything to be digitalized, dematerialized, transposed into bit and bytes

•  all to do with the development of new apps and tools.

Credit to Patrizia Bertini: European Director of Research and Insights at Wipro Digital

}  Panel: The Business Implications of Microservices

}  http://taotwits-too-big-to-tweet.blogspot.com/2015/09/going-digital-agile-architecture.html