The new digital operating model

THE NEW DIGITAL OPERATING MODEL

Charlie Betz

@CharlesTBetz

[email protected]

www.lean4it.com

mailto:[email protected]

What I will talk about

Understanding the current digital and IT landscapeScale and the digital operating modelAn “emergence” approach to the operating model

FounderTeamTeam of TeamsEnterprise

What is an operating model?

People Process Technology

5

Dunbar’s Number

Harnish, Scaling Up

Scale

There is not a “one size fits all” for digital operating models

From startup to enterprise

Enterprise

Team of teams

Team

Founder

THE SCALING PROBLEM

What do we need? Why?

When do we need it?

How is it changing?

Founder

Digital Value

Infrastructure

Applications

Digital Value

From goods to services to experiences

Minimum viable product

Testing, learning, pivoting

Infrastructure

Minimum viable platform

Infrastructure as code

From snowflakes to cattle to ants to serverless

Opinionated platforms… full circle?

Applications

Fast feedback: NOT OPTIONAL

Test-driven, continuously integrated & delivered

From batch handoffs to automated pipeline flow (release engineering)

Service Portfolio

Component

Portfolio Demand

Component

Proposal Component

Policy Component

Defect Component

Requirement Component

Project Component

Test Component

Build Component

Source ControlComponent

ChangeControl Comp.

Problem Component

Incident Component

Event Component

Diagnostics & Remediation Component

Usage Component

Chargeback / Showback

Comp.

Strategy to Portfolio Requirement to Deploy Request to Fulfill Detect to Correct

Offer Mgmt. Component

Offer Consumption Component

Service Archite-

cture

Policy Require-ment

Scope Agree-ment

IT Initiative

Portfolio Backlog

Item

Source

Conceptual Service

Blueprint

Concep-tual

Service

Logical Service

Blueprint

Test Case

Defect

Offer

Service Release

Build

Service Catalog

Entry

Desired Service Model

Usage Record

Fulfill-ment

Request

Sub-scription

Charge-back

Contract

Request

Problem/Known Error

Incident

Event

Service Monitor

Run Book

RFC

Service Monitoring

Comp.

Catalog Composition Component

Shopping Cart

Enterprise ArchitectureComponent

Service Design

Component

Fulfillment ExecutionComp.

Request Rationalization

Component

Configuration Management

Component

ReleaseComposition Component

Service Level Component

Service Contract

Actual Service

CIs

BuildPackage

Build Package Component

Service Release Blueprint

September 9, 2015This diagram was developed/published by the IT4IT™ Forum, a Forum of The Open Group®

Team

Product Management

Work Management

Operations

Product Management

Story, outcome, experience

High-bandwidth collaboration across specialties

Bring the work to the team

Not the team to the work

University of Minnesota

What could possibly go wrong?

Carlson School of Management

Computer Science and Software Engineering

Work Management

Keep it light – formal process not needed yet

From control to self-organization

LIMIT WORK IN PROCESS

Operations

Interrupt-driven work

From “accountability” to blameless

Site reliability engineering & Web-scale

Service Portfolio

Component

Portfolio Demand

Component

Proposal Component

Policy Component

Defect Component


Project Component

Test Component

Build Component


ChangeControl Comp.

Problem Component

Incident Component

Event Component


Usage Component


Comp.




Service Archite-

cture

Policy Require-ment

Scope Agree-ment

IT Initiative

Portfolio Backlog

Item

Source

Conceptual Service

Blueprint

Concep-tual

Service

Logical Service

Blueprint

Test Case

Defect

Offer

Service Release

Build

Service Catalog

Entry


Usage Record

Fulfill-ment

Request

Sub-scription

Charge-back

Contract

Request

Problem/Known Error

Incident

Event

Service Monitor

Run Book

RFC

Service Monitoring

Comp.


Shopping Cart


Service Design

Component



Component


Component



Service Contract

Actual Service

CIs

BuildPackage




Team of teams

Culture & Organization

Investment

Execution

PROTECT TEAM LEVEL DELIVERY!

Culture and Organization

Functional vs product – Spotify model

From pathological to generative

Learning, inquiring organization –“go and see”

Investment

From HIPPO to DIBB (Highest Paid Person’s Opinion vs Data, Insight, Belief, Bet)

Project vs product portfolios

From cost of inputs to cost of delay

Execution

From hierarchy to network

From defined to adaptive processes (e.g. Case Management)

From efficiency to effectiveness

Service Portfolio

Component

Portfolio Demand

Component

Proposal Component

Policy Component

Defect Component


Project Component

Test Component

Build Component


ChangeControl Comp.

Problem Component

Incident Component

Event Component


Usage Component


Comp.




Service Archite-

cture

Policy Require-ment

Scope Agree-ment

IT Initiative

Portfolio Backlog

Item

Source

Conceptual Service

Blueprint

Concep-tual

Service

Logical Service

Blueprint

Test Case

Defect

Offer

Service Release

Build

Service Catalog Entry


Usage Record

Fulfill-ment

Request

Sub-scription

Charge-back

Contract

Request

Problem/Known Error

Incident

Event

Service Monitor

Run Book

RFC

Service Monitoring

Comp.


Shopping Cart


Service Design

Component



Component


Component



Service Contract

Actual Service

CIs

BuildPackage




Enterprise

Governance & Security

Information

Architecture

Governance & Security

From theater to antifragility

Automation is more auditable!

Heavyweight approaches can INCREASE risk of value loss

Information

Meaning

Records

From enterprise data model to domain-driven design

From binary to continuous

Architecture

From mandate to hypothesis-testing

Technical debt, it’s a thing

Architecture as code

Service Portfolio

Component

Portfolio Demand

Component

Proposal Component

Policy Component

Defect Component


Project Component

Test Component

Build Component


ChangeControl Comp.

Problem Component

Incident Component

Event Component


Usage Component


Comp.




Service Archite-

cture

Policy Require-ment

Scope Agree-ment

IT Initiative

Portfolio Backlog

Item

Source

Conceptual Service

Blueprint

Concep-tual

Service

Logical Service

Blueprint

Test Case

Defect

Offer

Service Release

Build

Service Catalog Entry


Usage Record

Fulfill-ment

Request

Sub-scription

Charge-back

Contract

Request

Problem/Known Error

Incident

Event

Service Monitor

Run Book

RFC

Service Monitoring

Comp.


Shopping Cart


Service Design

Component



Component


Component



Service Contract

Actual Service

CIs

BuildPackage




The 3 Dimensions of Digital Learning

Lifecycle

Stack

Scale

Enterprise

Team of teams

Team

Founder

THESCALING PROBLEM

What do we need? Why?

When do we need it?

How is it changing?

Conclusion

Current work

Thank you for attending

The new digital operating model

Technology

Transcript of The new digital operating model