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Buy it, Build it,Download it, or Browse it?
Achieving Effectiveness with Enterprise Applications
Michael T. Nygard
© 2009 N6 Consulting, LLC. All Rights Reserved.
Tuesday, October 6, 2009
About The Speaker
Application Developer/Architect – 20 years
Web Developer – 14 years
IT Operations – 6 years
IT Services Executive - 4 years
Tuesday, October 6, 2009
Buy?Build?
Tuesday, October 6, 2009
Buy?Build?
Download?
Tuesday, October 6, 2009
Buy?Build?
Download?Browse?
Tuesday, October 6, 2009
Goal: Reduce Total Cost of Ownership
Tuesday, October 6, 2009
Goal: Reduce Total Cost of Ownership
Tuesday, October 6, 2009
Cost of Ownership
Tuesday, October 6, 2009
Seen Costs
Acquisition
Integration
Operations
Tuesday, October 6, 2009
Unseen Costs
Process Change
Deferred Revenue
Opportunity Cost
Complexity
Inertia
Fragmentation
Constituencies
Tuesday, October 6, 2009
Goal: Increase Support and Accountability
Tuesday, October 6, 2009
Goal: Increase Support and Accountability
!
Tuesday, October 6, 2009
One Throat to Choke?
Tuesday, October 6, 2009
The Reality is More Complex
Tuesday, October 6, 2009
CustomerRelationshipManagement
«purchased»
Tuesday, October 6, 2009
Tuesday, October 6, 2009
Business ObjectsWindowsNagios (OSS) monitoring
OracleLinuxNagios
Siebel CRMLinuxNagios
Apache + modulesLinuxNagios
Tuesday, October 6, 2009
Business ObjectsWindowsNagios (OSS) monitoring
OracleLinuxNagios
Siebel CRMLinuxNagios
Apache + modulesLinuxNagios
Custom batch jobsMQ SeriesLinuxNagios
Enterprise Service Bus Mule ESBJavaSolaris
Tuesday, October 6, 2009
Goals: Increase Tempoand Adaptability, Decrease
Transaction Cost
Tuesday, October 6, 2009
Goals: Increase Tempoand Adaptability, Decrease
Transaction Cost
Tuesday, October 6, 2009
Tempo
Tuesday, October 6, 2009
Tempo
Pace of operations
Rate of change generated
Turnovers in material
Speed of decision loops
Tuesday, October 6, 2009
Deming Cycle
Plan
DoCheck
Act
Tuesday, October 6, 2009
O-O-D-A Loop
UnfoldingCircumstances
OutsideInformation
UnfoldingInteraction
with Environment
Observations
feed forward
GeneticHeritage
CulturalTraditions
Analysis &Synthesis
NewInformation
PreviousExperience
feed forward
Decision(Hypothesis)
Action(Test)
feed forward
feed back
Implicit Guidance and Control
Tuesday, October 6, 2009
Adaptability
Tuesday, October 6, 2009
Centralized Adoption
Slow but uniform
High leverage
Less integration cost
Easiest to manage
Often unsatisfying
Tuesday, October 6, 2009
Decentralized Adoption
Fast tempo
Highly adaptable
Invisible
Hard to manage
High integration cost
Tuesday, October 6, 2009
Chaordic
System that blends characteristics of chaos and order
Neither hierarchic nor anarchic
Present in Boyd’s “maneuver”
Tuesday, October 6, 2009
Commander’s Intent
Desired end state
Two levels down
Not a specification
Centralize strategy
Decentralize execution
Tuesday, October 6, 2009
Fingerspitzengefühl
Grasp of detail
Ever-changing situation
Diminishes with altitude
Tuesday, October 6, 2009
Transaction Costs
Tuesday, October 6, 2009
The Nature of the Firm
Tuesday, October 6, 2009
Boundaries of Firm
Search and information cost
Bargaining cost
Risk to trade secrets
Policing and enforcement
Tuesday, October 6, 2009
Boundaries of Firm
Search and information cost
Bargaining cost
Risk to trade secrets
Policing and enforcement
Tuesday, October 6, 2009
Automation is Value-Neutral
Tuesday, October 6, 2009
Automating to Reduce Cost
Rigid
Quickly Outdated
“Supplemented”with manual work
Tuesday, October 6, 2009
Automating to Empower
Zero to production in 15 minutes
Tuesday, October 6, 2009
Automating to Empower
Zero to production in 15 minutes
Increase Tempo
Improve Adaptability
Decentralize Change
Tuesday, October 6, 2009
BuildBuy
DownloadBrowse
Tuesday, October 6, 2009
“Buy”
COTS Considerations
Tuesday, October 6, 2009
Procurement, Implementation, and Integration Costs
!
Tuesday, October 6, 2009
Premature Customization
Implicit processes
Expensive tocustomize
Chosen under theleast knowledge!
Tuesday, October 6, 2009
Constituencies
Adherents to thechosen technology
Allegiance to vendor
Inhibits futureoptionality
Tech selection isan org change
Tuesday, October 6, 2009
“Build”
Bespoke Considerations
Tuesday, October 6, 2009
Enterprise Software Sucks
Tuesday, October 6, 2009
Misplaced Focus
Tuesday, October 6, 2009
Drudgery
Tuesday, October 6, 2009
Voice
Users
Developers
Operations
Tuesday, October 6, 2009
“Download”
FOSS Considerations
Tuesday, October 6, 2009
Free Software?Open Source Software?
Viral Licensing!
Tuesday, October 6, 2009
Free Software?Open Source Software?
Not really.
Tuesday, October 6, 2009
Developer enthusiasm
Product maturity
Community strength
Tuesday, October 6, 2009
Versioning
Interface style
Architecture features
Tuesday, October 6, 2009
Tuesday, October 6, 2009
Gaining Advantage
Mix both models
Leverage but separate
Contribute
Tuesday, October 6, 2009
SaaS Considerations
Tuesday, October 6, 2009
Data IslandsTuesday, October 6, 2009
Perceived Risks
Confidentiality
Compliance
Control
Tuesday, October 6, 2009
Real Risks
Control plane
Patent shutdown
Lack of risk management info
Tuesday, October 6, 2009
Self-Defeating Behaviors
Tuesday, October 6, 2009
Sourcing can drive selection, perhaps adversely
!
Tuesday, October 6, 2009
Thinking Styles
Reactive
Systems
Creative
Corrective
Improvement
Planning
Tuesday, October 6, 2009
Altitude-Induced Arrogance
!
Tuesday, October 6, 2009
Services Death SpiralSqueeze cost out of serviceproviders
Provider’s skilledpeople filtered out
Provider unableto execute
Consumer unable to change
Tuesday, October 6, 2009
Project-Based Funding
Schedule pressure
Architecture decay
Increasing friction andinertia
Tuesday, October 6, 2009
Budgeting & Accounting
Tuesday, October 6, 2009
Refactoring Your Organization
Tuesday, October 6, 2009
Invert the Community
Center on users
Connect users
Distribute powerto edges of org
IT builds platform;doesn’t control use
Tuesday, October 6, 2009
Close the Loop
Blog, forum, bug tracker on every application footer
Source of bad inputs shouldexperience their own pains
“Give them the button”
Tuesday, October 6, 2009
Bridge Dev and Ops
Ops is a stakeholder
Dev needs the Opsperspective
Collaboration overcheckpointing
Replace review withautomated testing
Tuesday, October 6, 2009
Bridge Dev and Users
App communities
Users passionateabout apps
Forums, bug tracker,developer blogs
Real use of feedback
Tuesday, October 6, 2009
Tempo. Adaptability. Transaction Costs.
Tuesday, October 6, 2009
Tempo. Adaptability. Transaction Costs.
Tuesday, October 6, 2009
© 2009 N6 Consulting, LLC. All Rights Reserved.
Michael T. Nygardmichael.nygard@n6consulting.com
Tuesday, October 6, 2009
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