What does one man's love of burritos have to do with impending demise of nearly half the Fortune 500? What are some ways to successfully transform into a software-driven business? Learn how in this presentation.
Not just burrito stands
Uber button on Apple watch
Car arrives in minutes
Source: http://j.mp/1fdq9Yf
Jamie Dimon. JP Morgan Chase annual shareholder letter in April.
Hundreds of startups
Especially in lending
Big Data to speed loan approval
From weeks to minutes
Reduced friction
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There are hundreds of startups with a lot of brains and money working on various alternatives to traditional banking.
Especially in lending business, whereby the firms can lend to individuals and small businesses very quickly and — these entities believe — effectively by using Big Data to enhance credit underwriting.
They are very good at reducing the “pain points” in that they can make loans in minutes, which might take banks weeks.
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Credit: Steve Jurvetson, https://www.flickr.com/photos/jurvetson/8362210873
http://www.jpmorganchase.com/corporate/annual-report/2014/ar-solid-strategy.htm
Earlier in June
Cisco Live
John Chambers’ final keynote – great listen, easy to find on youtube.
40% of companies in the audience won’t exist in a meaningful way in a decade.
And the reason is the same as what causes companies to go into decline: miss the inflection point.
Today, that inflection point is digital transformation. How do you reduce friction through software?
Those 40% won’t get the digital transformation right.
Hardest thing about digital transformation isn’t the technology -- it’s the people, organizational and process issues.
Source: https://commons.wikimedia.org/wiki/File:John_T._Chambers_-_World_Economic_Forum_Annual_Meeting_Davos_2010.jpg
How are you going to disrupt your market, drive market share, and increase profitability?
How reduce customer friction through software?
To put into context: this is what Gartner calls “Mode 2” in their Bi-Modal IT framework.
So, ok, you need to become a software business. But what happens if it doesn’t go well?
Sobering examples:
1 in 4 apps are abandoned after a single use.
Source: https://blog.newrelic.com/2013/03/13/mobile-appeal-why-the-future-is-mobile/
Even seemingly benign apps that should be stable. Example:
For AA, the iPads saved weight, fuel, and thus improved margins. Unfortunately, when the app when down, it grounded several dozen planes for a period of time. You can imagine the amount of lost revenue and customer churn. Which wiped out a big chunk of their savings.
More: http://qz.com/393909/american-airlines-planes-are-grounded-because-their-pilots-ipads-have-crashed/
There are three common themes we’ve seen with companies that successfully do digital transformation.
They get their culture right, they get their organization right and they architect themselves for agility through focus.
Now if you don’t think your organization can do this, I can point you to examples of big companies that have done so.
And if it’s any consolation no one – whether it’s google, or a 100 year old company – feels like they’ve nailed this.
So what is the culture of a good software business?
So how to kickstart a data culture?
DTFA = deploy the fine agent. Dev installs agent, finds what’s slow, reaches out to operations counterparts. Work together to fix performance.
Developers and Sysadmins are natural data nerds.
When you self-service data analysis – make data tools available to everybody, you democratize the capability, across your org – you start to see interesting behaviors.
Start seeing cross-silo collaboration that is effective since folks are held accountable.
Another example, if time allows:
First, find the people in your organization who have access to the data, and/or can extract them.
And a funny thing or two happens when you bring those people into leadership meeting.
First, they find that they have data that can confirm or refute assumptions people have made.
Second, their presence can have a huge impact on how people behave. People realize that they can’t spout BS. Even if the data nerd just sits there.
All too often, every group has been silo’d in their separate worlds.
And in a silo’d world, you can’t work quickly to determine if a proposed change is good or bad for the customer, or good or bad for the business.
This is why we’ve seen the rise of DevOps.
So, how do you kickstart the process of breaking down these barriers through DevOps?
First, start with something meaningful yet manageable risk. Not high risk.
Minimal connections to legacy systems; self contained.
Low compliance needs, to internal reduce app development friction.
Some common starting points:
Visible application with senior exec sponsorship.
Why start with meaningful product?
Because if low-risk, low visibility, no one will care that you got it done better faster cheaper.
And if a one-time project, not a product, devlopers and architects won’t invest the time into making it good, as they would with a product that lives on.
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Amazon’s two pizza team rule: teams shouldn’t be larger than what two pizzas can feed. This keeps the amount of intra-team communication down, which helps a pilot project move forward.
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DevOps is just short, catchy name… and it’s more than just developers and ops working together. Business and Security need to be brought into the collaboration.
But DevOpsBizSec sounds a bit clumsy to say.
But those last two groups are key to ensure to get involved.
We know texting and driving can kill you.
Similarly, if software is critical your success, should you spend time focusing on your app?
Or should you be spending your time talking to your service provider about cable lengths?
And you can ask yourself, When did anyone ever get executive praise for spinning up VMs quickly?
Never.
And so, a key aspect of being a good software company is focus, and that’s what the cloud helps you to do.
Category view
If you look at the history of monitoring
In the 80’s and 90’s – there was a $2B market monitoring Infr and servers –
They were monitoring the network, it was a proxy for the apps
Why are they monitoring?
This is the whole point,
This is the nirvana we’re aiming for
User performance, user behavior
Users are customers, drive your business
Software Analytics:
Digital User Analytics
We follow user behavior through mobile, browser