multi speed it
TRANSCRIPT
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Business and Organizational implications
of Multi-Speed ITDr. Joachim Baumann
CEO dibuco [email protected]
BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT
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Agenda• Setting the Stage• Multi-Speed IT• Technical Challenges• Business Implications• Organizational Implications• Conclusion
BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT
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Setting the Stage• Global Information Growth• Disruptive Innovations become faster• Market Speed accelerates exponentially• Market Entry becomes less expensive
Classical Market Approachesno longer work
BPUG, Dienstag, 31. Januar 2017
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Global Information Growth
IDC “Digital Universe” Study 2011
Europäische Buchproduktion 500–1800*
1 000 000 000
100 000 000
10 000 000
1 000 000
100 000
10 000
10006. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
Jahrhundert* Ohne Südosteuropa (byzantinischer, später osmanischer Bereich) und Russland
Anza
hl d
er E
xem
plar
e
Manuskripte
Gedruckte
Bücher
• Information grows exponentially• Information is globally accessible• Speed of Change accelerates Half life of Information grows shorter
Validity of Models based on this information• 300 years ago: A life-time• Today: 2-5 years• In 10 years: 1 year?
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Disruptive Innovation
Perf
orm
ance
Time
Most demanding use
High quality use
Medium quality use
Low quality use
Clayton Christensen – “The Innovator’s Dilemma”• Disruptive Innovations start in Niches• Grow and overtake the Market• Speed of Innovation grows with Information• Half life of Products grows shorter
Interesting: Classical Companies are not surprised
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Examples of Disruptive Technologies
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• Initial Costs for Companies have become ridiculously low
Market Entry: Cost
Atlassian Google Apps Salesforce Sipgate Scopevisio → less than 200€ / Month
Example 3D Printer• Price 200€ - 2.000€
Print Services e.g., makeyourproduct.com
Arduino (starting at 1€) WLAN Processors (starting at 2€) Raspberry (30€)
Software Companies Hardware Prototyping as a Service Prototyping ofEmbedded-Systemen
Market entry Costs no longer prohibitive in most Markets
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Result: Crowdfunding Small Companies testing new Ideas
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Hierarchical Companies• Focus on the knowledge of the
person at the helm of the organization• Assume a slow-changing Market Model• Very good suited for predictable environments
and rational decisions• Create a specific Company Culture based on
Company Strategy• Adaptation Speed is limited• Humans can very efficiently categorize and
decide based on Model and Culture
BPUG, Dienstag, 31. Januar 2017
CEO
Department Head Department Head
Team Lead
Team Lead
Team Lead
Team Lead
Team Lead
Team Lead
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Effects of a Hierarchical OrganizationsEvery hierarchical organization follows• Vision, Mission, Strategy based on
a Model and a Paradigm• These effectively limit your „Universe“
(see Conway‘s law - )Hierarchical Organizations align strongly tothe strategy (see Chandler, Drucker)• Optimization of each sub-hierarchy• Changes in Strategy lead to structural Changes
Change needs time (5-7 years)Why: Because this is a Cultural Change
BPUG, Dienstag, 31. Januar 2017
Peter Ferdinand Drucker, “The Practice of Management”, Harper & Row, 1954
Alfred Chandler, "Strategy and Structures”, MIT Press, 1962
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Potential SolutionsSecure a Niche• Choose a Market with High Entry Costs
Change the Market• Limitations through external Regulations
• Current Example: Uber• Lobbyism
Works only a limited time
Adapt to the MarketShorter Product Cycles with continuous Adaptation to Market Changes
BPUG, Dienstag, 31. Januar 2017
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Multi-Speed IT: A Solution?
BPUG, Dienstag, 31. Januar 2017
Systemsof Innovation
Systemsof Differentiation
Systems of Record
Nonlinear ModeAccept
instability(DevOps, Agile)
“Sprint”Traditional ModeRequired Reliability(ITIL, CMMi, COBIT)
“Marathon”
-
+
Governance
+
-
Chan
ge
13Strategy FS FFM.pptx
Multi-Speed IT: Architectural View
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Core SystemsSystems of Record
Interface
Systems ofInnovation
System Type• Fast moving• Short-lived• Agile• Market-driven• Based on experiments
System Type• Slow-Moving• Evolutionary• Risk-averse• Classical approach
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Technical Challenges• Different Development Speeds
• Well-defined Interface needed• Interface has to buffer the different Speeds• System of Innovations cannot wait for Systems of Records Development
• Different Development Processes• Friction Loss and wasted Efforts
• Different Development Cultures• Polarization• „Immune Reaction“
• Different Environments• Can the Innovative Product be merged with the System of Records?
BPUG, Dienstag, 31. Januar 2017
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Business Implications• Business Assumption
• Anything goes
• The possible Applications are limited by• Regulatory Limitations• Technical Limitations of
• System of Records• Operations
• Organizational Limits (e.g., product logistics)
Think not only of Plan & Build; don‘t forget Run & Deliver
BPUG, Dienstag, 31. Januar 2017
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Multi-Speed IT: Organizational ViewSystems of Innovation• Fast moving• Short-lived• Agile• Market-driven• Based on Experiments• Fail-Fast
Agile Organization,Agile Development,Short Cycles
Systems of Record• Slow-Moving• Evolutionary• Classical Approach• Following Procedures and Plans• Risk-averse• No-Failure Approach
Hierarchical Organization, Waterfall Development, Long Cycles
BPUG, Dienstag, 31. Januar 2017
CEO
Department Head
Department Head
Team Lead
Team Lead
Team Lead
Team Lead
Team Lead
Team Lead
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Organizational ImplicationsOrganization Types are incompatible• Different use of offices• Different compensation models• Different incentive models• Leads to problems with employees, worker‘s council, HR,...
Best Solution• Different Legal Entities• Offices in different parts of the City• But additional overhead for later re-integration
BPUG, Dienstag, 31. Januar 2017
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ConclusionMulti-Speed IT is a possible Solution• Advantages
• Allows Innovation and Continuity to co-exist• Can mediate Friction Loss
• Challenges• Adds Technical Complexity and Overhead• Adds Organizational Challenges
But it is the only way to embrace the change while keeping the „old“ business
BPUG, Dienstag, 31. Januar 2017
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Dr. Joachim Baumannemail [email protected] www.dibuco.de
dibuco GmbH | Franz-Schubert Str. 75 | 70195 Stuttgart
BPUG, Dienstag, 31. Januar 2017
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- solutions for the digital age -
tel +49 711 699 475 60fax +49 711 699 475 62www.dibuco.de
BPUG, Dienstag, 31. Januar 2017
Manager-Hirne arbeiten schnellerTest mit 35 Managern und 35 Nicht-Managern:
• 540 Entscheidungen in 22 Minuten(Beobachtung im Magnetresonanztomograph)
Ergebnis: Manager verwenden andere Hirnregionen zur Entscheidung
Funktioniert über kategorisiertes Wissen (Schubladendenken)
Bedeutet festes Modell und feste Paradigmen
• Muss trainiert werden
• Passt ideal zur Optimierung von Organisationen
Seite 21
Caspers S, Heim S, Lucas MG, Stephan E, Fischer L, et al. (2012) Dissociated Neural Processing for Decisions in Managers and Non-Managers. PLoS ONE 7(8): e43537. doi:10.1371/journal.pone.0043537
Picture CreditsBlickwinkel: Unternehmen – Flickr, Achim Lammert, Munich Skyline
Blickwinkel: Der Mensch – Flickr, ThisParticularGreg, People
Transaktionskosten – Flickr, 401(K) 2012, money
Markteintritt – Flickr, Siamese Puppy, Fence Bird
Bündelung – Flickr, Tim Parkinson, Is there a sale on? @ Lowestoft, Suffolk
Marktdominanz - Wikipedia
Puzzleteile, Daten – http://de.wikipedia.org/wiki/Datei:Europ%C3%A4ische_Buchproduktion_500%E2%80%931800.png
IDC “Digital Universe” - http://germany.emc.com/collateral/about/news/idc-emc-digital-universe-2011-infographic.pdf
Puzzleteile, Daten - http://commons.wikimedia.org/wiki/File:Schlafende_Japaner.jpg
Puzzleteile, Disruptive Technologien - http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif,
Lösungsansatz, Safe Framework, The Big Picture – http://scaledagileframework.com/downloads/
Neue Rolle des CIO –http://commons.wikimedia.org/wiki/File:Pfad_im_Glatzener_Moor.jpg
Jäger und Sammler - http://commons.wikimedia.org/wiki/File:Hadza_montage.png
Weidegesellschaften - http://commons.wikimedia.org/wiki/File:Fotothek_df_tg_0007728_Landwirtschaft_%5E_Ackerbau_%5E_Getreideanbau_%5E_Heu.jpg
Städte - http://commons.wikimedia.org/wiki/File:Antikes_Alexandria_Karte.JPG
Stände - http://commons.wikimedia.org/wiki/File:St%C3%A4ndemodell_Lichtenberger.jpg
Industrielle Revolution - http://commons.wikimedia.org/wiki/File:Philipp_Jakob_Loutherbourg_d._J._002.jpg, http://commons.wikimedia.org/wiki/File:Steam_engine_in_action.gif
Menschen: Res. Probleme – Flickr, Michael Coghlan, Dais
Menschen: Res. Probleme – Red and Blue Pill, Wikipedia
Macht Agiliität Sinn - http://s594.photobucket.com/user/ungry-ippo/media/polar-bear-face-palm.jpg.html
Klassisches Vorgehen - Flickr, Gosheshe, The Thinker
Blickwinkel: Der Markt – Flickr, Quelle: https://www.flickr.com/photos/toofarnorth/2729520971/