How to perform a successful digital transformation guideline · The digital transformation largely...

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How to perform a successful digital

transformation: guideline

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How to perform a successful digital transformation: guideline

DevOps culture and adapting

transition to DevOps. This

However, in real life the things are quite different. Each company is unique, each has certain differences in their structure, workflows, tool set, skill set and, most importantly — culture. We have said it before, we will repeat this many times more — adopting it to your unique company culture at the specific point of lifecycle your business is currently going through — this is the key to successful digital transformation and cannot be done overnight, cannot be bought by tools or employing external experts — this is a long-term commitment towards better business performance.

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“The goal of digital transformation is to achieve higher perfor-mance, faster services delivery, and better workflow reliability. Essentially, this means enabling the business to do more while spending less, by using the latest tech and best cultural practices.”

Transition to DevOps culture is the most essential part of the digital transformation the business can face. This dictates the need to have a viable digital transformation guideline in order to define the steps and goals of the process.

If you are a business owner, you must always think about the questions of keeping the team performance and efficiency of operations high. One of the best methods of increasing the team engagement and performance is adopting the DevOps culture of collaboration through a process called “digital transformation”.

There are many pushy “DevOps experts” and “DevOps visionaries” that propose their vision and approaches to moving to the paradise of DevOps, where the code is deployed automatically, the products and services run without errors and winged ponies fly across the skies eating the rain-bow. All you need to do to get to this promised land is hiring said experts or purchasing certain DevOps tools or adopting the latest buzzword as a business practice, without really understand-ing what this means.

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The role of transformational leadership in enabling the transition to DevOps culture

The digital transformation largely consists of two parts: transforming the corporate culture towards ensuring better business performance and overcoming the limitations of inefficient IT infrastructure. Thus said, any transition is the process of moving from point A to point B and we provide a detailed digital transformation guideline.

There are lots of interesting insights in 2017 State of DevOps report from Puppet and we cited some of them in our article on the state of DevOps adoption across the software development industry. Today we take a closer look on the other parts of the report, highlighting the process of transition to DevOps culture and the reorganization of the technical practices and IT infrastruc-ture architecture that enables achieving the continuous delivery state.


ESSENTIAL DIGITAL TRANSFORMATIONSTRATEGY QUESTIONS TO ASK

There ofthen is a lack of a clearpurpose. People, processes and

purpose are key but only ifconnected.

VISION(questions)

PLAN ACTION

DXSTRATEGY

What do we need totransform?

How can wetransform?

Why do we need totransform?

Only 44% of the organizations areadequately preparing for the

disruptions to come.

VISION








https://puppet.com/resources/whitepaper/state-of-devops-report

https://itsvit.com/blog/2017-in-review-state-of-devops-adoption/

There are 4 main types of organizational cultures, and while not a single organization will ever adhere to a single type of culture, the percentage of different types in the mix is what actually makes each business unique. Here are the types:

“DevOps culture is not the defined state or relations within the company. Quite contrary — it is the dynamic set of rules and atti-tudes aimed at increasing the business performance...”


It is centered at collaboration within the team. The main thesis is that keeping the team members satisfied and committed to a common goal is crucial to ensuring high IT perfor-mance of the business. The main source of effectiveness is the participation of the team members in the decision-making process and the team leaders are the mentors andcoaches, centered at helping the individuals and teams to improve and move forward.

1 Clan culture

This is the breeding force of startups when the biggest value is given to the innovative solu-tions that open new business opportunities. The teams with this culture should be agile and adaptive, quick with adopting innovations, and the leaders are innovators and visionar-ies able to inspire their staff.

2 Adhocracy

This type of organizational culture is centered at following the rules to ensure the timeli-ness and efficiency of the processes. The teams value task delegation to remove redundan-cy and eliminate waste, thus increasing productivity. The leaders are organizers oriented at overseeing strict workflow allegiance within the team.

3 Hierarchy

This approach to business culture honors competition, both internal and external above all. The teams are aimed at constantly improving their results through devoting more effort to grow as a team and gain a competitive advantage over other market players. The leaders in this culture must be good at multitasking and invigorating their teams to achieve the goals despite any obstacles.

4 Market culture








Thus said, the first step of the digital transformation is defining the currently existing company culture, the desired outcomes and the milestones to achieve along the way. We propose to use the tool called the Organizational Culture Assessment Instrument based on competing values, proposed by Cameron and Quinn in their research back in 2006.


Clan

Orientation: Collaborative

Values: Development, Communication,Team

Source of effectiveness: Participation,Human development

Leader: Team builder, Mentor, Coach,Facilitatior

Adhocracy

Orientation: Creative

Values: Agility, Innovation, Creativity,Transformation

Source of effectiveness: Vision,Innovativeness

Leader: Entrepreneur, Innovator,Visionary

Hierarchy

Orientation: Controlling

Values: Uniformity, Efficiency, Timeliness

Source of effectiveness: Control,Obedience to rules and processes

Leader: Organizer, Coordinator

Market

Orientation: Competing

Values: Goal achievement, Market share,Profitability

Source of effectiveness: Competition(internal and external)

Leader: Competitor, Hard driver








2. Business Leadership — describe a person that would be considered a good leader in yourcompany. WIl such person be a mentor, a teacher? Or will it be an entrepreneurial spirit, ready totake the risks? Or quite contrary — will a true leader avoid any risks and use the proven methodsto get the needed results? Must a leader be a coordinator of processes, aiming to maximize theefficiency of business workflows?

A

B

C

D

1. Dominant Characteristic Now PreferredThe team is very personal place. It is like an extended family. Peopleseem to share a lot of themselves.

The company is a very dynamic and entrepreneurial place. Peopleare willing to stick their necks out and take risks.

The business is very results-oriented. A major concern is with gettingthe job done. People are very competitive and achievement-oriented.

The organization is very controlled abd structured place. Formalprocedures generally govetn what people do.

Total 100 100

A

B

C

D

Total 100 100

2. Now PreferredBusiness LeadershipThe leadership in the company is generally considered to exemplifymentoring, facilitating, or nurturing.

The leadership in the team is generally considered to exemplifyentreprenurship, innovation, or risk taking.

The leadership in the business is generally considered to exemplifya no-nonsense, agressive, results-oriented focus.

The leadership in the team is generally considered to exemplifycoordinating, organizing, or smooth-running efficiency.

1. Dominant Characteristic — describe the main feeling and attitude you have towards the com-pany as well as your team and coworkers. Is your company your second home? Does it stimulateyou to display creativity and use your entrepreneurial skills often? Does your company valueresults and achievements above procedures? Or does it have strict guidelines and codes of con-duct for every business practice?

Organizational Culture Assesment Instrument









3. Managerial Efficiency — try to categorize the values and qualities important for personnel management in your company. Does a good management mean collaboration and consensus? Does your company encourage individual approach to each team member and innovative solu-tions? Or does your team value hard work, self-development, well-earned achievements and competitiveness? On the other hand, maybe your team is centered on predictability, strict posi-tion relations and stability?


4. Company Loyalty — think of the processes and attitudes that form your team. What holds you together? Is it mutual trust and commitment to the company ideals? Or does your team enjoy being innovators, living on the cutting edge? Maybe, your colleagues value the sense of achieve-ment and goal accomplishment? Or the team flourishes in the confidence of a well-organized workflows and smoothly-running processes?

A

B

C

D

Total 100 100

3. Now PreferredManagerial EfficiencyThe management style in the business is characterized by teamwork,consensus and participation.

The management style in the team is characterized by individual risktaking, innovation, freedom, and uniqueness.

The management sryle in the company is characterized by hard- drivingcompetitiveness, high demands, and achievment.

The management style in the organization is characterized by securityof employment, conformity, predictability, and stability in relationships.

A

B

C

D

Total 100 100

4. Now Preferred

The glue that holds the business together is the emphasis onachievement and goal accomplishment.

Company LoyaltyThe glue that holds the company together is loyalty and mutual trust.Commitment to this organization runs high.

The glue that holds the team together is commitment to innovationand development. There is an emphasis on being on the cutting edge.

The glue that holds the company together is is formal rules andpolicies. Maintaining a smooth-running organization is important.








5. Staff Emphases — describe the focal point of efforts for your company. Does the organization prefer developing talents in the atmosphere of trust and openness? Or does the never-ending rush for new talents, challenges and resources fuel your business? Maybe your team is oriented at hitting stretch targets and winning the competition race? Or your colleagues just like the safety of mind that comes with permanence and stability, control and efficiency?

6. Criteria of Success — outline the criteria of a successful business for your company. Does your company measure success based on the growth of the skills of the talents employed, their com-mitment to the company, teamwork and concern for the staff? Or does your team think that their innovative products and market-leading services are the sign of success? Maybe the numbers of sales and the growing market share is the synonym of success for your business? Or you measure success based on ever-growing efficiency of operations, cost reduction, predictable delivery and uninterruptible end-user experience?

A

B

C

D

Total 100 100

5. Now Preferred

The company emphases competitive actions and achievment. Hitting stretch targets and winning in the marketplace are dominant.

Staff EmphasesThe business emphases human development. High trust,openness, and participation persist.

The team emphases acquiring new resources and creating newchallenges. Trying new things and prospecting for opportunitiesare valued.

The team emphases permanence and stability. Efficiency,control, and smooth operations are important.

A

B

C

D

Total 100 100

6. Now Preferred

The team defines success on the basis of winning in the marketplaceand outpacing the competition. Competitive market leadership is key.

Criteria of SuccessThe organization defines success on the basis of the development ofhumans, teamwork, employee commitment, and concern for people.

The business defines success on the basis of having the mostunique of newest products. It is a product leader and innovator.

The company defines success on the basis of efficiency. Dependabledelivery, smooth scheduling, and low-cost production are critical.









Once you understand the primary values of your team and the goals they hope to achieve by undergoing the digital transformation, you can create cultural profiles for each department. This is what such a profile looks like for an average Operations team.

This is an example of an Operations team that is quite satisfied with the status quo. They perceive the existing culture as mostly clan with slight infusions of adhocracy, market and hierarchy. This means the team thinks their skills, tasks and tools are siloed and controlled by existing business guidelines, they are pretty confident in their colleagues, not very interested in rapid implementa-tion of the customer feedback and want to increase their specification even further.


Current Culture

Preferred Culture

80

60

40

20

Clan

Hierarchy

Market

Adhocracy

OPERATIONS TEAM








As you can see, the Ops team lead is not interested in introducing the adhocracy culture and this wish corresponds with the desire of the team: less experiments, more stability. Thus said, this team is not likely to become the pushing force of the DevOps transition, as they are mostly inter-ested in keeping the systems operational and not experimenting.


Here is how the Operations Team Lead perceives the current culture in his department.

Current Culture

Preferred Culture

OPERATIONS TEAM LEAD

80

60

40

20

Clan

Hierarchy

Market

Adhocracy








Below are the same cultural profiles for the Development team and their Team Lead respectively.


Current Culture

Preferred Culture

DEVELOPMENT TEAM

80

60

40

20

Clan

Hierarchy

Market

Adhocracy

Current Culture

Preferred Culture

DEVELOPMENT TEAM LEAD

80

60

40

20

Clan

Hierarchy

Market

Adhocracy








As you can see, both the Development team and its Team lead are highly interested in experi-menting and do not depend on routine regulations and guidelines much. However, the Team Lead would like to have more process predictability and less siloed tasks and skills as a result of transition to DevOps workflows. The Team Lead’s emphasis on market culture means the desire to introduce more competitiveness and actually respond to customer feedback faster instead of simply meeting the predefined product release goals.

This is what the preferable course of actions for such a business looks like:


SUGGESTED CULTURE PROFILEFOR DEVOPS SETUP

80

60

40

20

Clan

Hierarchy

Market

Adhocracy

sensibleproсesses

autonomy

solving complexproblems withdelivery pipeline

curiosity aboutcustomers competitionand market

!NB: This is just an example, so don’t copy it. Understand the con-text of your company and choose the direction of change as youdeal with a complex system. Culture is an evolutionary process fromthe present time, not an idealized future state design.








The resulting profile will differ from business to business and will surely differ between the departments of every company, yet the viable digital transformation roadmap remainsthe same:

However, in order to be able to lead the team towards the desired outcomes and inspire the required changes, the managers should be truly transformational leaders, as the DevOps culture will not blossom otherwise. What are the characteristics of a transformational leader then?


Organizational culture is the paramount factor for the successful digital transformation.

The key goal of transition to DevOps is not cutting the expenses, mixing the teams orupdating the infrastructure. The goal is building a highly-performing organization and doing everything needed in the process — including the updates to the infrastructure.

Using the Competing Values Framework you can understand the dominant culture types in every department of your company, measure and visualize them.

By identifying the factors that block the movement towards the high performance and the expected goals, the company can create its unique roadmap for the DevOps transition.









VisionIntellectual

stimulation

com

mun

icat

ion

Insp

irat

iona

l

leadershipSupportive

recognitionPersonal

Vision• Understands the organizationaldirection

• Understands the team direction

• Understands the 5-year horizonfor the team

1

•Challenges the team status quo.

•Challenges the team to constantly asknew questions

•Challenges the team on basicassumptions about the work

Intellectualstimulation

2

Personalrecognition• Commends the team for better-than-average work

• Acknowledges the improvement in quality of work

• Personally compliments the individual’s outstanding work

5

Inspirationalcommunication • Inspires pride in being part of the team

• Says positive things about the team

• Inspires passion and motivation;encourages people to see that theychange brings opportunities

3

• Considers others’ personal feelingsbefore acting

• Is thoughtful of others’ personal needs

• Cares about individuals’ interests

Supportiveleadership

4








As you can see, the digital transformation and the transition to DevOps begins with the managers changing their attitudes and becoming transformational leaders for their personnel.The next step is updating the existing technical practices and IT infrastructure to respond to the needs of DevOps workflows — namely the continuous integration and continuous delivery.

Enabling the Continuous Integration and Continuous Delivery (CI/CD)


The DevOps approach to software delivery is the way of delivering better products or services faster, more regularly and more efficiently than the competition. As these are the ultimate goals of any business, many companies look that way sooner or later. Unfortunately, the first question they ask is “what DevOps tools should I buy?” The correct question one must ask is “How do I enable the technical practices that underpin the DevOps workflow — CI/CD?”

Below are five components that determine the DevOps workflow:

Comprehensive version control

Automated testing and shift to the left for security testing

Automated code deployment

Continuous feedback integration

Trunk-based development








This is what these components include, in more details.

Git is a great version control tool, enabling the software developers to keep track of the product evolution, manage ongoing dependencies and easily reverse the changes in case of any issues. When the source code is versioned, updating it or rolling back is a simple process, greatly remov-ing the overhead for the team. Using version control protects the safety of the wealth of knowl-edge collected by the team by developing the product, both from catastrophic failures (software update errors, data center or ISP shutdown, etc.) and from slow degradation due to human errors.

Comprehensive version control for all software components

When the testing is automated, the code development becomes greatly streamlined.

Automated testing and shift to the left for the se-curity testing


DevOpsworkflow

1 Comprehensive version control

3 Automated code deployment

4 Continuous feedback integration

5 Trunk-based development

2 Automated testing and shift to the leftfor security testing








Yes, writing and updating the codebase for the automated tests requires much effort, yet it ensures the new code batches are thoroughly tested before even reaching the staging environ-ment, minimizing the amount of bug fixing and speeding up the code delivery throughput nearly 100 times! Just the same, when the security testing is included into the testing suite from the start (shift to the left), the security and compliance requirements are easily and timely met, significant-ly increasing the reliability and predictability of the release schedule.

Using DevOps tools is essential in the way it allows building automated code deployment pipe-lines. Instead of playing ping-pong between the Dev and the Ops departments to provision and configure the required server environments, the developers can deploy the dev and testing virtu-al servers themselves. They can then easily push the code to the staging environment, from where the new code is automatically pushed to production through in-app updates or canary releases.

Automated code deployment

The developers must receive the direct feedback from the stakeholders, the end users, the colleagues from the other departments and any other entity — and rapidly incorporate this feed-back into their practices. This allows to improve some product features or remove some work-flow bottlenecks, so the overall product quality, IT performance and end user experience improve a lot.

Thus said, even the semi-monthly inputs for Scrum sprints do not provide the continuous feed-back, so the best-performing IT businesses sometimes achieve less than a day feedback loop. In this case the request for certain improvement is processed and implemented in a few hours, due to the streamlined software delivery pipelines and automation of code testing and deployment.

Continuous feedback integration

Trunk-based development might seem innovative for many developers, yet it proves its useful-ness time and time again.

Trunk-based development









https://trunkbaseddevelopment.com/

When instead of dealing with the maze of interdependent code branches the team develops off the main code trunk, sustains no more than three active code branches and merges the code to the trunk at the end of each day — the resulting code is clear, stable and does not require any significant effort for merging before the releases. The releases themselves always happen from the trunk and not from the branches.

DevOps approach to building an efficient IT architecture

As you can see, we have not mentioned a single DevOps tool yet and we do not force you opting for any of them exclusively. There are multiple tools available and the toolkit of any DevOps team will contain the software best suited to working with the product and workflow of a particular business. As long as you pack your applications into containers using Docker and deploy them to production using Kubernetes, which is actually the cornerstone of modern cloud architecture , the rest of the tool set is up to you.

Such an approach poses 2 significant advantages:


Naturally, the processes like Continuous Integration and Continuous Delivery cannot be performed using legacy infrastructure, so transition to the cloud is one of the basic requirements of a digital transformation. It is important not to confuse it with the goal of the process, though. We mentioned the goal in the beginning of this paper — shaping a more competitive, more productive, highly performant business.

Software development teams empowered by the capability to choose their own tooling and build convenient software delivery pipelines demonstrate much higher performance, as compared to heavily regulated teams of the past (700% more time devoted to actual code development instead of server provisioning and multiple approvals)

Splitting the application into loosely coupled encapsulated microservices drives significant increase in IT department productivity. Loosely coupled product components can be developed and updated separately, not to mention the capability to scale them in produc-tion independently of each other to ensure optimal resource allocation and cost-effi-ciency ratio. As long as these components interact through clear APIs, the product man-agement is greatly simplified.








The next point to take into consideration is that the transition is not the smooth jump from here to there. This iterative process consists of many steps that must be correctly planned and execut-ed in order to be efficient. The most important factor is that there is no specific steps to make, only the general methodology of introducing changes.

The process of digital transformation must be incremental and iterative, including a detailed analysis of the efficiency of each change and the required adjustments to improve the outcome of each next step.

Introducing changes on the way to a successful digital transformation


DIGITAL TRANSFORMATION STRATEGY:PLANNING FOR THE FUTURE

No clear roadmap exists today aboutwhat to do first, what to do second,what are the accelerators, what are

the barriers, and so forth...

VISION(questions)

PLAN ACTION

DXSTRATEGY

Mapping

Prioritization

Intermediategoals

KPIs

Accelerators

Barriers

Components

PLAN

RoadmapObjectives








Following this approach allows turning a daunting dive towards the murky waters of change into a road with understandable and manageable milestones that lead to expected, desirable outcomes.


DIGITAL TRANSFORMATION STRATEGY:FROM PLAN TO ACTION

Execute and optimize in a prioritizedway, based upon urgency, impact,

effort and roadmap. Do - learn - grow.

VISION(questions)

PLAN ACTION

DXSTRATEGY

ACTION

Iterative,incremental,exerimental.

Learn

Build yourhypothesis

Restart Experiment

Grow Do








Below are some examples of how IT SVit uses top-notch cloud computing technology to underpin successful digital transformation projects.

Examples of successful digital transformation performed by IT Svit

One of our customers had their infrastructure with AWS but was constantly provisioning and managing new instances manually. They wanted to automate the process in order to save the time and money.

We implemented a simple Terraform solution that is installed with a short command and enables the AWS infrastructure management through easily configurable Terraform manifests that are also launched with a single command. As a result, the customer was able to save around 90% of time and resources spent on infrastructure provisioning.

AWS infrastructure provisioning automation with Terraform manifests

A recent IT Svit project involved moving an application already in production to AWS infrastruc-ture. The customer was not satisfied with the existing infrastructure configuration and wanted to optimize the application performance.

We had to split the application to Docker containers and move it along with crucial infrastructure architecture components to AWS. This containerization and the following provisioning of AWS infrastructure was done using Kubernetes and Terraform manifests, allowing to group containers logically, enable easy auto-scaling and location configuration, etc. Helm is used for Kubernetes pods orchestration and Jenkins jobs are created for enabling CI/CD pipelines.

In the end, the customer got an highly scalable and resilient environment, which is deployed auto-matically with several commands, easily managed through Helm charts and seamlessly updated with Jenkins jobs.

Migration of the existing application to AWS infra-structure










Another IT Svit customer had a cloud infrastructure with a couple of components deployed at a second-tier cloud service provider for cost savings. However, the cumbersome management and lack of the needed functionality have lead to the decision of swapping the cloud computing provider and rebuilding the infrastructure with AWS from scratch.

We created an AWS account for the customer, installed and configured Terraform there, as well as Docker with Nexus3 and Jenkins images. Other AWS resources like S3 bucket, NPM and Elastic Beanstalk were used as needed. We have redesigned and optimized the existing customer infra-structure to use the most appropriate AWS components.

The whole environment provisioning and application deployment, patching, management and destruction process is described with highly flexible Terraform manifests. Thus said, in addition to rebuilding 100% of the infrastructure from scratch, we optimized the application perfor-mance, made it highly scalable and easily adjustable, reducing the effort and expenses needed to update and maintain the app by approximately 75%.

Infrastructure migration to AWS

70-80% cut in time/costexpenses on infrastructure

maintenance

CASE 2

90% reduction in timeneeded for infrastructure

provisioning

CASE 1

100% new AWS infrastructurebuilt from scratch. 75% reductionin app update and maintenance

expenses.

CASE 3

The time/cost savings were around 70-80% as compared to the previous cloud services provid-er.








As you can see, digital transformation cannot be done overnight and cannot be accomplished by buying specific tools or hiring self-proclaimed experts. It is a long and effort-consuming process, highly dependent on the transformational leadership. It also requires devotion and general understanding of the existing IT infrastructure problems and the ways to overcome them. The company must know the desired business goals it plans to achieve, high performance being the main of said goals. Applying the iterative approach to incremental introduction of changes allows increasing the accountability and reliability of the process.

Here is the example of the average differences between top-performers that have alreadycompleted their digital transformation and somewhat slower-performing IT companies.

How to ensure the digital transformation goes correctly then? There are two ways: by trial and error or by hiring someone who has done it before. Both ways are perfectly viable and the choice between them depends solely on the level of commitment from the C-suite and managers.


Conclusions on how to perform a successful digital transformation








Some companies prefer to save time and resources and hire a reliable Managed Services Provider, a company specializing at delivering DevOps-as-a-Service and able to propose the needed changes to organizational culture and infrastructure.

Quite contrary, some companies try to save money by planning and executing the digital transfor-mation internally, as we described above. Unfortunately, without the wholehearted support and commitment of the whole team such initiatives are mostly doomed. Such companies usually risk wasting time, money and human effort on ill-aimed processes that leave the company in disarray. Sometimes such an effort does lead to astonishing results, but such cases are quite rare.

We provide a guideline to a successful digital transformation based on adjustment of the organi-zational culture and optimizing the IT infrastructure towards the high performance of the busi-ness. Plan the reorganization process for your business based on this guideline or simply contact us to launch the successful digital transformation with a reputable IT provider.

The choice is up to you.









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About IT Svit

We help industry-leading companies in the US, EU and worldwide innovate and overcome their challenges. IT Svit does this using enterprise-grade technology solutions to drive value and ensure business continuity. We pride ourselves on delivering great user experience and brand advocacy.

IT Svit specializes in DevOps services, Big Data technology, Machine Learning, bespoke Blockchain platforms, full-cycle services for startups, web development and QA.

https://itsvit.com/

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