The Lean Enterprise

Tomas Riha, Domain Architect, Volvo Group Telematics WirelessCar

tomas.riha@wirelesscar.com

Bob Van Nortwick, Director & Global Manager Startups, AWS

bobvan@amazon.com

How the Principles of Lean are

Transforming Corporate Innovation

Conventional Business Models Are Under Attack

• HBR: 85% of new products fail

• Yale Professor: In 2013 75% of the S&P500

companies will be new by 2020

• Life expectancy of a fortune 500 company in 1960 was

75 years – today its less than 15 years

Disruptive Themes

EMPOWERMENT

ADAPTIVE

VARIABLE CONSUMPTION

ZERO MARGINAL COST

LOCK IN

EFFICIENT

OWNERSHIP

LOWER COST

CUSTOMERS

PROCESSES

RESOURCES

COST BASE

…enabled by the emergence of Cloud Computing

Organizational effectiveness – which one are you?

http://www.slideshare.net/npflaeging/betacodex11-the-3-structures-of-an-organization?qid=0a86fca0-6294-45a1-b489-bbbe1bc34c09&v=qf1&b=&from_search=1

The Lean Startup: Why Products Fail

YouCustomerAssume you know what

the customer wantsA lot of the time doesn’t

actually know what they want

What Is Lean?

Principles of Lean

Accept that you know NothingNeither you, nor the customer, may know what the product requirements

are until after they’ve played with the product

Measure SmartLean Enterprises measure the right things

Test SmartNo one fails - they either confirm or reject hypotheses

Iterate at SpeedLean Enterprises don’t throw good money after bad. But neither are they

fickle. Whatever the case, they pivot or persevere quickly

In the enterprise there can be many bricks in

the wall…

YOU CUSTOMER

“The culture is what creates the

foundation for all future innovation. If you

mess up the culture, you mess up the

machine that creates your products.”

Brian Chesky, Founder

https://medium.com/working-life/597cde9ee9d4

Technology is no longer the bottleneck!

Customer

Clo

ud e

nable

d In

novatio

n P

latfo

rm

Traditional

Management

Processes

Ideas/ Business

Opportunities

Technology is no longer the bottleneck!

Customer

Clo

ud e

nable

d In

novatio

n P

latfo

rm

Ideas/ Business

Opportunities

BUSINESS

CEO, COO, CFO, CMO

TECHNOLOGY

CIO, CTO, CDO(Digtial and/or Data)

…the age old gap is inhibiting value creation

Bridge the gap

Key Findings of 2015 State of DevOps Reports

• IT performance = Business performance

• 30x more code deployments, 200x shorter lead

time, 60x fewer failures, recover 168x faster

• Culture change is required

Puppet Labs, IT Revolution Press, PWC, 2015 State of DevOps

Horizon 1

Execute, Sustain, Retire

Seeds of today,

planted for tomorrow

Time

% o

f p

ort

folio

DISRUPTION POINT DISRUPTION POINT

Horizon 3

Envision, Explore, Disrupt

Horizon 2

Demonstrate, Exploit, Scale

Product Portfolio – The Three Horizon Model

Humble, Molesky, O’Reilly, Lean Enterprise: How High Performance Organizations Innovate At Scale

So what should I do next?

Think Big, Start Small, Learn Fast

Lean Enterprise:

Innovate at scale

Additional Reading

The Lean Startup: Innovators Dilemma:

Tomas Riha

• Domain Architect Delivery Engine Team @ VGT/WirelessCar

• Continuous Delivery as a Service

• Cloud

• DevOps

• tomas.riha@wirelesscar.com

• continuous-delivery-and-more.blogspot.com

Volvo Group Telematics/WirelessCar

VGT/WirelessCar Vision 2011

corporate data center

corporate data center

corporate data center

Continuous Delivery vision 2011

Test

GIT

Build Deploy Release

Nexus

Deploy

corporate data center

corporate data center

Lead time

Feedback

corporate data center

Development

Organization

Continuous Delivery - Reality

Test

GIT

Build Deploy Release

Nexus

Deploy

corporate data center

corporate data centerOperations

Organization

ITIL Process

Continuous Delivery & Micro Services

Test

GIT

Build Deploy Release

Nexus

Deploy

corporate data center

Development & Infrastructure Change

DevelopmentOperations

Architecture

Committee

Infrastructure

Architects

Infrastructure Change

Projects

Customer Value

Development & Infrastructure Change

We need a Cloud Provider!

And we need to work

together!

Cloud - Fears

Security

Peformance

Availability

Integrity

SLA?!?!?!

Cloud - Stupidity

We can build an on premise cloud

with the same features as AWS

Development & Infrastructure Change

DevOps Organization

Architecture &

Infrastructure

Committee

Customer Value

Continuous Delivery in AWS

DeliveryEngine

Test

GIT

Build Deploy Relase Bake Launch

Delivery Engine

Overseer GUI

Delivery Engine

Data Services

ITIL Process

Customer Value

Feedback

Lead time

Continuous Delivery in AWS

Continuous Delivery in AWS

Continuous Delivery in AWS

Continuous Delivery in AWS

Continuous Delivery in AWS

Continuous Delivery in AWS

Continuous Delivery & Cloud

is for the Enterprise!

Build in

Process

Quality

Control

Traceability

Security

Cost

Trinity of Lean Enterprise

DevOps

Cloud

Continuous Delivery

Culture Lean Enterprise

Learning

Tomas Riha, Domain Architect, Volvo Group Telematics Wireless Car

tomas.riha@wirelesscar.com

Bob Van Nortwick, Director & Global Manager Startups, AWS

bobvan@amazon.com