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The Secret Behind Silicon Valley

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Pivotal’s Rob Mee presented at the Global ICT Summit in Tokyo, Japan. Organized by the Nikkei and the Ministry of Internal Affairs and Communications, Rob was asked to present on how software is disrupting economies and industries worldwide, and how traditional approaches, paradigms and processes need to change in order to compete in these modern times.

Say It Again—Software Is Eating The World
Underscoring the types of radical changes software is making to businesses models, Rob pointed out 4 different examples where software was so powerful it tacitly replaced the need for business assets.

Uber. The world’s largest taxi company owns no vehicles.
Facebook. The world’s most popular media company creates no content.
Alibaba. The world’s most valuable retail company has no inventory.
Airbnb. The world’s largest accommodation provider owns no real estate.
Software is helping companies compete more aggressively on product, business model and user experience. Companies like Square are inventing cash registers that fit in a baby’s palm, turning your phone or tablet into a critical business device that can wander. Backed with free mobile point of sale tools, online stores and reporting, all types of retailers, professional services, and transportation providers are flocking to use this service.

On the consumer side, Apple is reinventing how we pay these merchants, encapsulating the entire process in one natural motion. By means of paving the way to a new standard in payment experience, Apple has managed to insert itself into the payments industry—effectively inserting itself as another step in a value chain, while convincing us all it is a good thing.

The Secret To Digital Transformation Is Culture
For more than 25 years, Rob has lead Pivotal Labs, the organization known for setting the bar for software development excellence. In fact, many of the companies disrupting industries today have worked with Pivotal Labs at some point to get there.

The secret is simple—it’s rooted in your company’s culture. Your company needs to transform itself to become a software company, with hyper focus on building something meaningful inside a framework that encourages productivity and quality. At a high level, there are 3 key principles that need to permeate your culture in order to gain the kind of focus needed to complete your digital transformation.

Agile development with pair programming. To truly embrace agile development, there is a lot to learn. By pairing developers, you optimize a learning environment. Agile experts can share process knowledge. Programming language experts can share technical expertise. And by switching up pairs and assignments routinely, developers gain a broader understanding of all of the systems supporting their applications. Armed with better expertise and understanding of the full application, pairs turn out results more quickly by breaking down barriers to development more faster.

Published in: Software

The Secret Behind Silicon Valley

  1. 1. THE SECRET BEHIND SILICON VALLEY Rob Mee Pivotal, Executive Vice President, R&D and Products Changing the World by Building Great Software Companies
  2. 2. BUILD SOMETHING MEANINGFUL
  3. 3. SILICON VALLEY Home to the world’s most valuable and important companies
  4. 4. SOFTWARE IS CHANGING INDUSTRIES $6BN Financial Services $20BN Hotel $50BN Transportation $38BN Entertainment $31BN Automotive $3.2BN Industrial Products
  5. 5. The world’s largest taxi company owns no vehicles The world’s most popular media company creates no content The world’s most valuable retail company has no inventory The world’s largest accommodation provider owns no real estate SOFTWARE IS CHANGING BUSINESS MODELS Credit: Tom Goodwin, SVP Havas Media
  6. 6. March 5, 2015 GOOGLE INTRODUCES LONG-ANTICIPATED INSURANCE SHOPPING SITE
  7. 7. ANYONE COULD BECOME YOUR COMPETITOR
  8. 8. BUILDING A NEW FUTURE
  9. 9. MAKING THE ONCE IMPOSSIBLE PROBABLE
  10. 10. CIO DINNER Industry Insights & Trends
  11. 11. Automotive Industry USING SOFTWARE TO TAKE DRIVERS Competing on Product Competing on Business Model Competing on Experience
  12. 12. Financial Industry USING SOFTWARE TO TAKE CUSTOMERS Competing on Product Competing on Business Model Competing on Experience
  13. 13. 73.3 79.4 83.8 88.4 93.3 98.4 103.8 109.5 115.6 121.9 128.6 135.7 143.2 3.7 5.0 6.8 9.3 12.7 17.2 23.4 31.8 43.3 58.9 80.1 108.9 148.1 5.0 7.0 9.9 14.3 21.2 32.0 49.2 77.3 123.7 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Retail Industry USING SOFTWARE TO GROW ONLINE SALES Store Sales // +5.5% Online Sales // +36% Online Sales // Aggressive $80BN Annual Revenue
  14. 14. SOFTWARE IS YOUR DOMAIN
  15. 15. MECHANICAL ENGINEERS CONSULTANTS SOFTWARE ENGINEERS Domain Expertise Business Model Software Development LEGACY APPROACH TO PRODUCT DEVELOPMENT
  16. 16. LEGACY APPROACH TO ENGINEERING Engineers Quality Assurance Release Engineers Infrastructure Operations x500 x100 x25 x35 x50 ENGINEERING DIVISION
  17. 17. IN THE FUTURE REFOCUS
  18. 18. FOCUS NOW MEANS BEING AN EXPERT IN YOUR DOMAIN AND A GREAT SOFTWARE COMPANY
  19. 19. ENABLING SOFTWARE DEVELOPMENT WITH PIVOTAL OPEN CLOUD PLATFORM
  20. 20. THERE IS A NEW WAY OF DOING THINGS
  21. 21. 4 Engineers (1 Client) 1 Product Manager 1 Designer 0 Project Managers
  22. 22. AGILE PAIR PROGRAMMING SCALES 3 MONTHS 6 MONTHS 9 MONTHS 1 Year EXPERT NOVICE
  23. 23. BECOMING A GREAT SOFTWARE COMPANY… IS NOT Just about agile development OR Changing how products are built
  24. 24. IT’S ABOUT BUILDING A GREAT CULTURE
  25. 25. April 28, 2015  
  26. 26. REPROGRAMMING THE WORLD TO CREATE A BETTER FUTURE
  27. 27. S I L I C O N V A L L E Y
  28. 28. T O K Y O
  29. 29. LET’S BUILD SOMETHING MEANINGFUL Rmee@Pivotal.io

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