Tech360 November 16, 2017 Why Innovate? Why change? Business is - PowerPoint PPT Presentation

BV@SS: Business Value at Startup Speed Tech360 November 16, 2017

Why Innovate? Why change? • Business is pretty good • Years of success • We don’t chase fads

Why Innovate? Why change? • Huge VC investment pools • Entry by digital-native firms (i.e., Amazon) • “Change has never happened this fast before, and it will never be this slow again”

Evidence of change: Calculations per second per $1000, a 110+ year trend

Evidence of change: Rapid price declines in DNA sequencing

Evidence of change: Rapid price declines in solar energy prices

What “life changing” invention was introduced on Oct 21, 2001, and then removed from the market this past July?

“Digital transform” is becoming a common answer Search frequency for Cloud, DevOps, and Digital Transformation 100 90 80 70 “Cloud” 60 50 40 “DevOps” 30 “Digital 20 Transformation” 10 0 2004-01 2005-01 2006-01 2007-01 2008-01 2009-01 2010-01 2011-01 2012-01 2013-01 2014-01 2015-01 2016-01 2017-01

Why Innovate? Why change? • Invest when not in a crisis • Teams will love it • This is valuable • This is do-able

This is a different way of thinking about technology solutions FROM TO Outputs Outcomes Definition of Success 10101 $$$ Deterministic Iterative / Learning-based Approach to solutions High Risk / Big Bets Low Risk / Small Bets Investment risk Months / Years Days / Weeks Idea to realization cycle time Efficiency Responsiveness Primary focus of delivery teams Service Provider Partner Business view of IT

Business Value at Start-up Speed Agile Infrastructure Agile Technology Agile Business Public Cloud Micro services architecture Lean Mindset CI/CD pipeline Innovation Shift-Left Testing

The Vanguard BV@SS Framework - Custom Software Application Development 1 2 3 4 5 Efficient IT Fast IT - I Fast IT - II Fast Business I Fast Business II II Non-NGA / Cloud Microservices, Cloud Product-centric Build the Right Things Value @ Speed Incompatible Build it Run it Think it, Build it, Run it Business/IT Integration Adaptive Agile Practices Improved Flow Automated Delivery Continuous Learning Ref: Deployment Frequency At least quarterly At least monthly At least weekly Daily Daily Ref: Change Incident Rate > 30% 0 - 15% 0 - 15% 0 - 15% 0 - 15% Improvement Practices: faster, cheaper, higher quality, higher engagement, and better business outcomes Evolve Adaptive Agile Practices X X X X X Measure Speed and Quality X X X X X Remove Speed Bumps X X X X X Shift Left - (Test Automation) X X X X X Business Product Owner allocated strategic empowered build right thing journey ownership Build and Deploy in Thin Slices X X MVP MVP Form Full-Stack Teams In Sub-Division Across IT With Business With Business Adopt Microservices Architecture X X X X Adopt CI/CD Pipeline (NGA) X X X X Run in the Cloud Private Public Public Public Enable Systems Resiliency X X X X Create Durable Product Teams Build it, Run it Build it, Run it Think it, Build it, Run it Think it, Build it, Run it Adopt Continuous Delivery X X X Manage (Baseline) Technical Debt X X X Innovation Culture X X X Broad Empowerment X X X Teams focus on Business Outcomes X X Value Driven Portfolio Mgmt Local value tree Business value tree Iterative Learning X X Lightweight Planning & Governance X Dynamic Budgeting and Funding X

Fast IT Outcome Measures: Deployment Frequency Change Failure Rate How often does your team How often do things go deploy code? wrong when deploying? Also thinking about: cost, team satisfaction, customer feedback

Stage 1: Efficient IT. Master the fundamentals Evolve Adaptive Agile Practices Measure Speed and Quality Remove Speed Bumps Shift Left - (Test Automation) Business Product Ownership Target: At least quarterly elevations

Stage 2: Fast IT – I. Improve flow Build and Deploy in Thin Slices Form Full-Stack Teams Adopt Micro services Architecture Adopt CI/CD Pipeline Run in the Cloud Enable Systems Resiliency Create Durable Product Teams: Build it, Run it Target: At least monthly elevations

Stage 3: Fast IT – II. Automate Delivery Adopt Continuous Delivery Manage (Baseline) Technical Debt Innovation Culture Broad Empowerment Target: At least weekly elevations

DELIVER BUSINESS VALUE AT START-UP SPEED Build the Right Thing and Build the Thing Right

Stage 4: Fast Business – I Stage 5: Fast Business – II Build the Right Things Business Value @ Startup Speed Teams focus on Business Outcomes Lightweight Planning & Governance Dynamic Budgeting and Funding Value Driven Portfolio Management Iterative Learning Target: ~ Daily elevations

Where are we now? • This is a multi-year (never ending?) journey • Sharing concepts broadly. Leaders tailor the concepts locally. • Teams love progressing towards “BV@SS” • Some nice business results

Books that inspire us

My advice for you 1. GET SMART 2. GET EXCITED 3. GET STARTED • Read the books, blogs, • Visualize and believe that • Discuss with your peers, and videos “BV@SS” is a better way boss, team, and partners • Try to understand the • Reflect on the changes you • Start small. Get better & core concepts need to make better • Share your learnings www.linkedin.com/in/john-buhl-9b66a285