Horses & Unicorns: Britchamber july 2016
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Nigel Green Partner, UK Hong Kong, July 2016
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Transcript of Horses & Unicorns: Britchamber july 2016
Nigel Green Partner, UK
Hong Kong, July 2016
It’s hard to recognise innovation until it’s happened…
“If I had asked people what they wanted, they would have said faster horses.”
The familiar doesn’t always help us understand the new.
Horses & unicorns
The familiar versus the exotic.
TRADITIONAL FIRMS BORN-DIGITAL FIRMS
Who behaves like unicorns?
Think & behave disruptively. http://www.mckinsey.com/Industries/High-Tech/Our-Insights/Grow-fast-or-die-slow-Why-unicorns-are-staying-private?cid=digistrat-eml-alt-mip-mck-oth-1606
“Since 2013, an increasing number of technology companies have achieved “unicorn” status: valuations upward of $1 billion in private markets.“
- McKinsey, May 2016
Who behaves like unicorns?
We’ve all heard of them, but have they been…
http://www.mckinsey.com/Industries/High-Tech/Our-Insights/Grow-fast-or-die-slow-Why-unicorns-are-staying-private?cid=digistrat-eml-alt-mip-mck-oth-1606
“Since 2013, an increasing number of technology companies have achieved “unicorn” status: valuations upward of $1 billion in private markets.“
- McKinsey, May 2016
NOW PUBLICY QUOTED BUT STILL THINK LIKE A
UNICORN.
…hidden in plain sight?
Hidden in plain sight?
Unicorn’s are living among the “horses” … and eating their lunch!
Is this just the tip of the iceberg?
20% World’s unicorns are from China
https://www.cbinsights.com/research-unicorn-companies
“a month ago, everyone was using their UnionPay credit cards, now everyone is just tapping their phones”
Digital disruption in China
http://www.economist.com/news/business/21660996-chinese-online-giant-looking-new-sources-growth-clicks-bricks
Efficiency
Resiliency
What the hidden magic delivers
Revenue Agility
Discovering how is the question.
} Agility - development processes that used to take months now take weeks.
} Efficiency - reducing the amount of infrastructure required to run a given application by 50%.
} Resiliency - avoid a single point of failure, very limited downtime, can scale seamlessly on demand.
} Revenue - faster iteration and less downtime add up to more revenue.
Who isn’t looking for these?
2016 will be shaped by
digital transformation
with availability, capabilities, and business needs
being the biggest related issues
IT leadership will face.
IDC Predicts…
• General Electric • Hewlett Packard • Capital One Financial Corp. • Goldman Sachs Group Inc. • The Guardian Media Group (UK) • Thomas Cook PLC (UK) • William Hill PLC (UK) • ITV (UK) • Nike … and many more..
Adoption is looking like a hockey stick…
The Horses are looking for their inner Unicorn.
Over half of organizations across the US, UK, India and Israel plan to follow the Digital-native’s “way of working” to improve their agility in the next 12 months, according to
new research by IDG Connect – March 15th 2016
http://www.businesswire.com/news/home/20160315005089/en/IDG-Connect-Microservices-Firms-Battle-Monolithic-Restrictions
Who else is adopting?
Traditional firms are adopting the unicorn’s way-of-working
Customer Service, Revenue, Cost, Merger & Compliance challenges.
Mr. Black the CIO
“Reduce IT running Costs”
“We must keep our Regulator happy!”
“We need your help to
modernise our Retail stores”
“We plan to buy the 2nd largest
firm. Be ready for a merger – we want one IT solution”
“Our customers
need one great experience – in store & mobile”
Mr. Black joins ACME (early 2015)
? ?
A hunch he could learn from the digital unicorns – even though he was starting from a very different point..
What Would the Unicorns Do?
SaaS
IaaS
Developers PaaS
Do Work On
Use Resources Of
Build Solutions On
Users
Developers
Broadly adopted Cloud usage.
Cloud Mode 1: Horses Outsourced IT
Firewall
XaaS XaaS
XaaS
XaaS
XaaS
XaaS
XaaS
Cloud Mode 2: Unicorns Cloud Everywhere
http://internetofthingsagenda.techtarget.com/definition/fog-computing-fogging
Private Cloud(s) Public Cloud(s)
Everything’s a Service on the Cloud ecosystem.
Firewall
And there’s more – A seismic shift in computing.
A much bigger change than Mainframe to Client Server.
The New Compute Platform
XaaS
Services everywhere: an ecosystem of macro and micro services.
Services, services & more services
“I like the simple elegance of a
Cloud Services-Everywhere
model”
“We can be flexible on how we source the
services we need – externally or
internally”
Firewall
XaaS XaaS
XaaS
XaaS
XaaS
XaaS
Private Cloud(s) Public Cloud(s)
“We should focus first on the business
differentiating services…”
“…and how to establish
foundation that will enable the whole services
ecosystem”
Business Unit Leads Analysts & UX specialists & Technicians
NEW SMEs ENTHUSIATIC INCUMBANTS
A small team with one shared vision.
A new way of working
The Progranme Director
The Consultant The Designer The CIO
NEW LEADERSHIP TEAM
A culture of agile experimentation.
Unicorn culture
“…cloud-oriented architecture should be prototyped and refined by small "innovation teams" that can perform a scouting mission to specifically trailblaze how the organization and culture can be adapted to the new cloud-based world of software development. These missions should not be throwaway projects, but a high degree of risk is implied, and the culture of "fail fast and fail often" should be the mantra”.
IDC February 2016
Business Unit Leads Analysts & UX specialists & Technicians
NEW SMEs ENTHUSIATIC INCUMBANTS
The Progranme Director
The Consultant The Designer The CIO
NEW LEADERSHIP TEAM
The ACME challenge: deliver a working prototype within 90
days.
Focus on the Customer & Revenue first.
The CIO’s strategy “Reduce IT
running Costs”
“We must keep our Regulator happy!”
“We need your help to
modernise our Retail stores”
“We plan to buy the 2nd largest firm. Be ready for a merger – we want one IT
solution”
“Our customers need one great experience – in store & online”
• IMPROVED CUSTOMER SERVICE: • Create an Omni-Channel experience, in store or mobile. • Establish new levels of situation awareness through near real-time
analytics and use it to improve customer insight. • Improve the in-shop environment: happier staff = happier customers.
• IMPROVED REVENUE: • attracting new customers & retaining old through improved interaction
at all touch-points. • ability to respond to new demands and new routes to revenue
through micro-marketing.
Demonstrate route to all four business outcomes, within the 90 Days.
The CIO’s strategy “Reduce IT
running Costs”
“We must keep our Regulator happy!”
“We need your help to
modernise our Retail stores”
“We plan to buy the 2nd largest firm. Be ready for a merger – we want one IT
solution”
“Our customers need one great experience – in store & online”
• AVOIDED COSTS:
• License cost reduction through the replacement of databases and middleware with Open Source Software.
• Create a platform for rapid integration post M&A.
• EXCEED REGULATORY MANDATES: • Open-up data and create process transparency through business
event-logging leading to exceptional process auditability.
Significant enough progress was made within 30 days to gain the
support of the entire C-Suite.
The story continues…
Of Horses & Unicorns
EXPLORE THE POSSIBILITIES
1. ASK “WHAT WOULD THE UNICORNS DO?”:
Take a lead of the “Born-digital” firms and tailor to your firm’s needs. Recognise “The Cloud” is the next-gen compute platform. Leverage Open Source Software & commodity Cloud services. Create a route-plan to Cloud-Native Applications (e.g. Microservices) Architecture. Adopt an agile, adaptive & evolutionary approach.
TOP-LEVEL BUY-IN
GET TOP-LEVEL SUPPORT:
Define measurable, business relevant, principles … …and then manage to them.
Show both tactical and strategic value to the business early. Take C-suite on a journey of low-risk incremental steps that demonstrate clear value-for-money that strengthens the strategic business case.
FASTER THAN EVER BEFORE
CREATE A FAST-PACED DELIVERY TEAM:
Use experts that understand the “vision” to get things started quickly.
Establish new ways of working through a separate expert-led team.
Demonstrate results frequently clearly pinned to business outcomes.
Create the “seed of change” and then propagate it.
Learn from the Unicorns, then be bold, experiment, and manage risk.
ACME’s Hypothesis
ACME decided the risks were worth the reward and to act now! (The risk of doing nothing was too big)
REWARD
RISK
COST
Experiment
Could their thinking help your business?
Is your CIO developing Cloud-enabled Ways of Working?
Can horses afford to wait?
} Agility. By breaking down functionality to the near atomic level, development teams focus on only updating the relevant pieces of an application. This removes a painful process of integration experienced with monolithic applications. Development processes that used to take months now take weeks.
} Efficiency. Far more efficient use of code and underlying infrastructure. Users report significant cost savings— reducing the amount of infrastructure required to run a given application by 50%.
} Resiliency. The dispersion of functionality across services can avoid a single point of failure. The result is systems that perform much better with very limited downtime, and can scale seamlessly on demand.
} Revenue. Faster iteration and less downtime add up to more revenue. User retention and user engagement increase as your product continuously improves.
Omni-Channel Select technologies & services which are appropriate for use by both retail store and online channels.
Leading Edge Not Bleeding Edge Use technologies & services which have been adopted by class leading digital businesses and proven at scale in real world operations.
Design For Uncertainty Design for flexibility which allows systems to be more quickly replaced and/or enhanced, to reflect continuous customer feedback, and to enable strategic agility should there be a significant shift in the market.
Right Time Information Design for real time or near real time information as needed – avoid batch ‘end-of-days’.
Open Data & Interfaces Design systems by default to allow all their data to be consumed in an open way, so that data can readily be aggregated and used as a single version of the truth, internally and externally.
Scalable / Agile All solutions must allow ease-of-scale, through replication and be highly agile, through ease of configuration.
Available All solutions must be highly available; able to deal with degradation of elements of the solution without impacting operational capability or the end user experience.
Device & Channel Agnostic Any solution must be able to work on any ACME device natively and available across the Internet.
ACME Transformation Principles
ACME Transformation Principles
Measurable business principles – understood & supported by the Excom.
Reducing Cost Of Ownership By choosing ‘open source’ or ‘cloud’ solutions’, which can run on minimum spec devices, and allow retirement of legacy. By adopting a ‘rent don’t buy’ mantra and adopt an OPEX model which is scalable (up and down) based on actual usage.
Smart Stitching Utilise best of breed SaaS and/or ‘open source’ products where possible and focus on ‘stitching’ these solutions together.
Incremental Changes Utilise a Microservices approach to allow gradual deployment of new capability towards an overall vision, but without large scale transition states, and hence reduce business operational impact
Build for Competitive Advantage; Buy for Competitive Parity Build tech/services that enhance or automate a capability that is a competitive advantage for ACME. Do no re-invent functionality that can be provided by commodity services
Keep things simple to start and evolve.
Four outcome areas
FOCUS ON 4 KEY OUTCOME AREAS:
1. User Experience: make it tangible; show how things will look and feel through rapid prototyping cycles.
2. Insight: demonstrate the insights created by knowing exactly what business event has happened and when and focus on issues that had been hard to fix in the past.
3. Integration: show how external services and internal apps can be integrated, quickly without expensive middleware. Demonstrate how this will simplify the integration of future acquisitions.
4. Agility: deliver results in days rather than weeks or months.
