The Lean Enterprise
40
The Lean Enterprise Tomas Riha, Domain Architect, Volvo Group Telematics WirelessCar [email protected] Bob Van Nortwick, Director & Global Manager Startups, AWS [email protected] How the Principles of Lean are Transforming Corporate Innovation
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Transcript of The Lean Enterprise
The Lean Enterprise
Tomas Riha, Domain Architect, Volvo Group Telematics WirelessCar
Bob Van Nortwick, Director & Global Manager Startups, AWS
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
• 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
Bob Van Nortwick, Director & Global Manager Startups, AWS
