Life, IT and everything about revolutions, outside-the-box journeys and the daily IT madness

Uwe Friedrichsen – codecentric AG – 2014-2016

@ufried Uwe Friedrichsen | uwe.friedrichsen@codecentric.de | http://slideshare.net/ufried | http://ufried.tumblr.com

Be flexible

… but stick to the plan!

Be innovative

… but don’t break anything!

Be agile

… but adhere to all processes!

Be disruptive

… but don’t change anything!

Be the new Netflix

… but don’t spend any money!

Woot ?!?

Have they all gone nuts?

Or is there a bigger schema, we just don’t recognize?

Meaning Madness

Time for a short journey through space and time ...

Journey #1

The evolution of markets

Formal part of value creation Solution: machine

Dynamic part of value creation

Solution: man

sluggishness/low dynamic high dynamic high dynamic

The historical course of market dynamics and the recent rise of highly dynamic and complex markets

The dominance of high dynamics and complexity is neither good nor bad. It‘s a historical fact.

t 1970/80 today

Age of crafts manu- facturing

Age of tayloristic industry

Age of global markets

1850/1900

Spacious markets, little competition

Local markets, high customi-zation

Outperformers exercise market pressure over conventional companies

We call the graph shown here the “Taylor Bathtub”. The “bathtub” curve

Source: BetaCodex Network Associates, “Organize for complexity”, BetaCodex Network White Paper 12 & 13

Formal part of value creation Solution: machine

Dynamic part of value creation

Solution: man

sluggishness/low dynamic high dynamic high dynamic

The historical course of market dynamics and the recent rise of highly dynamic and complex markets

The dominance of high dynamics and complexity is neither good nor bad. It‘s a historical fact.

t 1970/80 today

Age of crafts manu- facturing

Age of tayloristic industry

Age of global markets

1850/1900

Spacious markets, little competition

Local markets, high customi-zation

Outperformers exercise market pressure over conventional companies

We call the graph shown here the “Taylor Bathtub”. Pre-industrial era

Source: BetaCodex Network Associates, “Organize for complexity”, BetaCodex Network White Paper 12 & 13

Tailor-made solutions

“Mastery is key to success”

Formal part of value creation Solution: machine

Dynamic part of value creation

Solution: man

sluggishness/low dynamic high dynamic high dynamic

The historical course of market dynamics and the recent rise of highly dynamic and complex markets

The dominance of high dynamics and complexity is neither good nor bad. It‘s a historical fact.

t 1970/80 today

Age of crafts manu- facturing

Age of tayloristic industry

Age of global markets

1850/1900

Spacious markets, little competition

Local markets, high customi-zation

Outperformers exercise market pressure over conventional companies

We call the graph shown here the “Taylor Bathtub”. Industrial era

Source: BetaCodex Network Associates, “Organize for complexity”, BetaCodex Network White Paper 12 & 13

Cost-efficiently scale production

“Get more done with less people is key to success”

Formal part of value creation Solution: machine

Dynamic part of value creation

Solution: man

sluggishness/low dynamic high dynamic high dynamic

The historical course of market dynamics and the recent rise of highly dynamic and complex markets

The dominance of high dynamics and complexity is neither good nor bad. It‘s a historical fact.

t 1970/80 today

Age of crafts manu- facturing

Age of tayloristic industry

Age of global markets

1850/1900

Spacious markets, little competition

Local markets, high customi-zation

Outperformers exercise market pressure over conventional companies

We call the graph shown here the “Taylor Bathtub”. Post-industrial era

Source: BetaCodex Network Associates, “Organize for complexity”, BetaCodex Network White Paper 12 & 13

Continuously respond to changing demands

“Continuous customer communication

is key to success”

Industrial era

•  Cost-efficiency •  Scalability •  Repeatability •  Stability

Changing markets create new drivers

Post-industrial era

•  Cycle times •  Adaptability •  Flexibility •  Resilience

Side note

Organizations as enablers and preventers

Journey #2

The evolution of IT

1960 1970 1980 1990 2000 2010 2020

Complicated

(Business functions)

Complex

(Business processes)

Highly complex

(Business nervous system)

Software crisis

Software engineering

PC

LAN

Internet Business Support

of IT

Selective

Holistic

Complicated

Complex “Moore’s law”

Mobile IoT

1960 1970 1980 1990 2000 2010 2020

Complicated

(Business functions)

Complex

(business processes)

Highly complex

(Business nervous system)

Software crisis

Software engineering

PC

LAN

Internet Business Support

of IT

Selective

Holistic

Complicated

Complex “Moore’s law”

Mobile IoT

We are here …

1960 1970 1980 1990 2000 2010 2020

Complicated

(Business functions)

Complex

(business processes)

Highly complex

(Business nervous system)

Software crisis

Software engineering

PC

LAN

Internet Business Support

of IT

Selective

Holistic

Complicated

Complex “Moore’s law”

Mobile IoT

… but we still base most of our decisions on that

We are here …

Formal part of value creation Solution: machine

Dynamic part of value creation

Solution: man

sluggishness/low dynamic high dynamic high dynamic

The historical course of market dynamics and the recent rise of highly dynamic and complex markets

The dominance of high dynamics and complexity is neither good nor bad. It‘s a historical fact.

t 1970/80 today

Age of crafts manu- facturing

Age of tayloristic industry

Age of global markets

1850/1900

Spacious markets, little competition

Local markets, high customi-zation

Outperformers exercise market pressure over conventional companies

We call the graph shown here the “Taylor Bathtub”. Remember the bathtub curve?

This adds an additional twist …

1960 1970 1980 1990 2000 2010 2020

Complicated

(Business functions)

Complex

(business processes)

Highly complex

(Business nervous system)

Software crisis

Software engineering

PC

LAN

Internet Business Support

of IT

Selective

Holistic

Complicated

Complex “Moore’s law”

Mobile IoT

… but we still base most of our decisions on that

We are here …

Business is very different today …

… than it was back then

Business

Market

IT today is a …

… Nervous System

… Medium … Product

… Differentiator

Disruptive Technologies

Business Support Systems

Continuous Conversation Digitization

Business is IT and IT is business

The traditional IT “best practices” are counterproductive because they solve

a completely different problem

What can we learn?

We are in the middle of a revolution

Unfortunately, quite often we do not feel like them …

... but more like them

How can we avoid becoming revolution roadkill?

A few recommendations …

#1

Understand the post-industrial IT

Rethinking IT

What are the new drivers?

IT

Post-Industrialism Highly dynamic markets

Economic Darwinism Lean startup/lean enterprise

Continuous design

Digitization IT as a product

Digital conversation Social media

Contextual computing

Disruption Innovation through disruption Cloud, mobile, IoT, serverless

Big data analytics Data-driven enterprise

force change

on

What are the new goals?

IT

… be quick Short response times

Holistic IT value chain consideration

… be effective Focus on outcome, not output

… improve continuously Improvement as planned activity

needs to …

… be efficient Provide required throughput

… be reliable High availability and reliability

… be flexible Flexible response to changing needs

Process & Org needs to be …

Quick

Flexible Effective

Software needs to be …

Secure

Changeable Robust

… and improve continuously

Process & Org needs to be …

Software needs to be …

Quick

Flexible Effective Secure

Changeable Robust

… and improve continuously

How can we achieve the new goals?

Let’s learn from the digitization natives

Adaption DevOps Systemic optimization Inspect and adapt Quick feedback loops Continuous improvement …

Process DevOps Agile Lean Feature Flow (no projects) Design Thinking …

Governance Beyond Budgeting Decentralized control Outcome-driven Lean EAM …

Organization DevOps Autonomous teams Cross-functional teams End-2-end responsibility Routine task automation …

People Craftsmanship T-shaped Responsibility Curiosity Empathy …

Technology Cloud Automation Microservice Heterogeneity Resilience …

(Some) Building Blocks

These building blocks don’t sum up, they multiply up

Cross-functional teams (organized by business capabilities)

Autonomy (incl. E2E responsibility)

Decentralized control

Microservices

Continuous Delivery

Heterogeneity

Cloud and Containers Resilience

Operations automation

Craftsmanship & mastery

Outcome-driven Beyond budgeting

Feature flow

Lean EAM

Continuous improvement

T-Shaped people (being empathic)

DevOps

Quick feedback loops

Curiosity

#2

Know your place in the revolution

Take the real magic triangle …

You may pick two

Good

Fast Cheap

Optimizing for quality and cycle times will result in higher costs

Optimizing for quality and costs will result in long cycle times

Optimizing for cycle times and costs will result in reduced quality

... and ask for the two properties to pick

You may pick two

Good

Fast Cheap

Industrial IT

Deliver large batches at minimized costs towards slow markets

Post-industrial IT

Quickly adapt to ever-changing needs of dynamic, fast-moving markets

Startup IT

Test hypotheses and pivot as fast as possible to discover a product-market fit

#3

Pick the appropriate weapons

#4

Discuss change based on pain, not tools

#5

Be prepared

Be prepared •  Learn the tools and technologies

of the post-industrial IT

•  Keep your current skills and tools sharp

•  Understand which knowledge will becomeless valuable (or even contra-productive)

•  Be curious and understand the concepts outside your domain (become T-shaped)

•  Improve your empathic skills!

add. #1

Visit the Java Forum Nord … ;)

add. #2

Stick to the hitchhiker ‘s guide …