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Talk List

ARC203 - Innovation at speed

What does it take to innovate quickly? In this session, we address how blockers to innovation, such as culture, skills, antiquated processes, and board-level concerns, can stand in the way of business agility. We map out a pathway to digital transformation, including new metrics for success, integration of real-world best practices from enterprises, and the most effective organizational patterns, as we integrate the business with development and operations.

"Cloud for CEOs"

Old world IT (annual cycle)

  • Marketing (TV + Radio)
  • Sales (Brick and Mortar)
  • Employees at work
  • Factories and Supply Chains

New world IT

  • Online marketing and social media
  • mobile employees
  • IoT connected things
  • Online sales + delivery
  • Factories + supply chain, continuous supply tracking, and just-in-time production

"Every customer you've ever had" not "every store you sell to"

Automation and "real-time"

New Needs

  • Personalization - everyones experience is different
  • Customer Analytics
  • New channels direct to customer
  • More things, more scale, rapid (continuous) change

Blockers for innovation

Culture - leadership systems and feedback

  • Centralized, slow decision-making
  • lack of trust
  • inflexible policies and processes
  • "Teach them to yearn for the vast and endless sea." - Netflix
  • "Use good judgement in all situations." - Nordstrom
  • Netflix
  • Amazon
  • Culture
    • Intentional
    • Approporiate
    • Judgement
  • Books:
    • Ahead in the cloud - Stephen Orban
    • A seat at the Table and War and Peace and IT - Mark Schwartz

Skills - Training and Compensation

  • Train existing staff on cloud tech
  • Fund pathfinder teams
  • Be prepared to create incentives to keep the best people after training
  • "Systemic incentive for employees to learn the next technologies that the company will need"
  • Powerful: Building a culture of Freedom and Responsibility by Patty McCord

Organization - Move from projects to product teams

  • Long-term product ownership
  • Continuous delivery
  • DevOps and "run what you wrote"
  • Reduce tech debt and lock-in
  • Project to product by Mik Kersten
  • The DevOps Handbook by Gene Kim et al.
  • Business, Product, Development, and Operations in each team
  • Business
    • Budget, headcount, goals
  • Product
    • Customer input, roadmap
  • Development
    • Continuous delivery of features
  • Operations
    • Automated global support

Risk - Finance - Capex vs. opex

  • Capitalized data center to expensed cloud
  • Capitalized developmetn, expensed operations, to combined DevOps
  • Plan ahead, don't surprise the CFO or your shareholders
  • Boards - What is the role of boards in the long-term success of their company?
    • Compensation policy
    • Executive succession
    • Oversight of finance
    • Oversight of risk
    • Oversight of Strategy
  • Transforming Nokia: The power of paranoid optimism to lead through colossal change by Risto Silasmaa
  • You get the culture you pay for
  • Compensation policy isn't flexible enough ("Best practice" is low risk)
  • Successful Board Patterns

Time to value is what matters

  • Do some work
  • Time elapses
  • Value to customer
  • There is no economy of scale in software
    • Smaller changes are better
    • Need an automated continuous-devlivery pipeline
    • Tagging, feature flags, A/B tests
    • Rapid, cheap builds
    • Eg: Move from java monolith to Go microservices
  • Change one small thing at a time
    • easier to tell if it breaks
    • easier to roll back to previous version
    • easier to measure time to value
    • Small Changes Summary
  • Best IT Architecture

How do we get there?

  • Measure time everywhere
  • Learn to do small things quickly
    • Create a fast path for simple and safe changes
  • Iterate customer usability changes quickly
  • Break huge project down into "fast path"
  • Measure cost per deploy
  • Books

"Learn to do simple things quickly to unblock innovation"

Pathway for Innovation

  • Pathway
    • Speed => Time to Value
    • Scale => Distributed Optimized Capacity
    • Strategic => Critical Workloads
  • Scale
  • Cloud Native Principles
  • Containers vs. Serverless
  • Rapid Development
  • Traditional vs. Rapid Development
  • Observability is the key to improvement
    • Levels of Observability
  • Book
  • STPA Observability model
  • How does STPA model relate to cloud computing
  • Types of Failures
    • Epidemic failures
    • How to guard against epidemic failures
    • Advice:
    • Books:
  • Resilience
    • Past, Present, and Future
    • Chaos Engineering
    • Chaos Architecture
    • What's required
  • Cloud for CEOs
  • Slides