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Agile Digital and the new management paradigms

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How Agile processes complement digital technologies to deliver better ways of working.
Delivered at Agile on the Beach conference 2018.

Published in: Business
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Agile Digital and the new management paradigms

  1. 1. Agile, Digital & the new management paradigms Allan Kelly allan@allankelly.net @allankellynet heuristics Agile on the Beach Falmouth, July 2018
  2. 2. Allan Kelly Bringing technology & business together Inspiring Agile Teams • Writing • Training • Advising • Troubleshooting
  3. 3. Its Digital, Stupid 0100 0001 0100 1100 0100 1100 0100 0001 0100 1110
  4. 4. Welcome to Planet Digital
  5. 5. 0 1E+09 2E+09 3E+09 4E+09 5E+09 6E+09 7E+09 8E+09 1960 1970 1980 1990 2000 2010 2020 Transistors per CPU: 1970->2016 Data from https://en.wikipedia.org/wiki/Transistor_count 2016 Intel 22-core Xeon Broadwell-E5 (7,200,000,000) 1976 Ziloz Z80 (8,500) 1971 Intel 4004 (2,300) 1975 Mostek 6502 (3,510) dot.comboom
  6. 6. Ubiquitous, cheap CPU cycles are changing the world Changing business
  7. 7. Digital Apps Online retail The Web Gig economy Uberisation GPS Big Data Drones Analytics AI Mobile phones Smart phones Sensors Lidar Deep Learning Social media Robotics Cloud Social marketing Crowd funding Internet of Things 3D printing Self driving cars
  8. 8. Agile makes Digital possible • Rapid releases • Test in the market “Lean Start Up” • Technology teams working with business
  9. 9. Planet Digital is built on • Cheap CPUs • Software • Agile
  10. 10. Technology Change Stage #1 – Do the same things faster Stage #2 – Adopt new processes to increase benefit Stage #3 – Innovation from process change Repeat
  11. 11. Electricity Factories needed redesign Processes needed changing Lean? Factory image © Unknown - https://pin.it/qyb3sfi7uhhrwd
  12. 12. Admiral Grace Hopper, 1906-1992 "I've always been more interested in the future than in the past."
  13. 13. What does process change look like on planet digital?
  14. 14. Agile Agile is the process change that accompanies digitisation Agile processes unlock more value from digitisation
  15. 15. Plan less, release more
  16. 16. Planning is learning
  17. 17. Valueofplanning Time Planning has rapidly diminishing returns Alittleplanning isbeneficial Moreplanningdoes notaddvalue Excess planning reduces value
  18. 18. IBM 360 IBM 360 at Computer History Museum Dave Ross: CCL license via WikiMedia
  19. 19. 46 years … 1970 OS/360 model 195 • 10,000 KIPS (10 MIPS) • 4096kb (4Mb) • COBOL on OS/360 • IMS database • Monthly rental $250,000 (Approx. $1.25m in 2016 prices) 2016 Raspberry Pi 2 • 4,744 MIPS • 1 Gb • Linux • Python, Scala, Ruby, … • SQL, NoSQL • Buy $35 CPU cycles €€€ expensive -> Planning is cheap CPU cycles €€€ cheap -> Planning is expensive 36,000 million instructions hour 17,078,400 million instructions hour
  20. 20. Planning is learning Doing is also learning
  21. 21. He who learns fastest wins “We understand that the only competitive advantage the company of the future will have is its managers’ ability to learn faster than their competitors.” Arie de Geus, The Living Company 1988
  22. 22. Which is the fastest way to learn? A. Planning B. Doing C. Other, please specify
  23. 23. Learn by doing – iterate!
  24. 24. Planning is learning Planning is valuable But… Planning is expensive Planning has rapidly diminishing returns
  25. 25. If you want to finish sooner Then Start sooner Plan less, release more
  26. 26. Do it right, then Do the right thing
  27. 27. Yesterday 1) Do the right thing 2) Do it right Decide what the right thing is Build it the right way
  28. 28. The Alignment Trap Less Effective More Effective Highly aligned Less aligned ‘Alignment trap’ 11% companies +13% IT spending -14% 3 year sales growth ‘Maintenance zone’ 74% companies Avg IT spending -2% 3 year sales growth ‘IT Enabled growth’ 7% companies -6% IT spending +35% 3 year sales growth ‘Well-oiled IT’ 8% companies -15% IT spending +11% 3 year sales growth Source:Shpilberg,Berez,Puryear,Shah: MITSloanReview,Fall2007 1 2 Doingtherightthings Doing things right
  29. 29. Humphrey's Law Watts Humphrey “Users do not know what they want until they see working software” How do I know what the right thing is?
  30. 30. Learn by doing – iterate!
  31. 31. Today 1) Do the right thing Build a machine which can iterate A learning machine 2) Do it right Use the machine to iterate your way to the right thing
  32. 32. Zen’in keiei Every person a manager
  33. 33. Uniqlo HR documentation. “UNIQLO’s Zen-in Keiei philosophy, under which every employee adopts the mindset of a business manager, regardless of his or her position.”
  34. 34. Zen’in keiei for programmers #1 Self-organizing teams Zen’in keiei for programmers #2 Think like you are business
  35. 35. Tim O’Reilly MIT Sloan Management Review, March 2016 a large part of the work of [Google, Amazon, Uber, etc.] … is performed by software programs and algorithms. These programs are the workers, and the human software developers who create them are their managers.
  36. 36. Manager Workers
  37. 37. Managers Workers
  38. 38. 55000 60000 65000 70000 75000 80000 85000 2012 2013 2014 2015 2016 UK students studying management 1st degree 1st year students studying business & administration - https://www.hesa.ac.uk/data-and-analysis 18% increase 2012-2017
  39. 39. Zen’in keiei Learn about Management
  40. 40. #BizTech
  41. 41. Business Everyone together Technology #BizTech
  42. 42. System Requirements Software Requirements Analysis Program Design Coding Testing Operations Remember this?
  43. 43. System Requirements Software Requirements Analysis Program Design Coding Testing Operations Coding Programmers take design & refactoring Then Agile happened
  44. 44. System Requirements Software Requirements Analysis Program Design Coding Testing Operations Coding Test First + Test Automation Programmers take designer & refactoring Testing got automated
  45. 45. System Requirements Software Requirements Analysis Program Design Coding Testing Operations Coding + Design + Automated Test + Operations Then DevOps happened
  46. 46. System Requirements Software Requirements Analysis Program Design Coding Testing Operations Analysis + Coding + Design + Automated Test + Operations BDD takes analysis
  47. 47. System Requirements Software Requirements Analysis Program Design Coding Testing Operations Requirements + Analysis + Coding + Design + Automated Test + Operations Finally #BizTech
  48. 48. #BizTech Techies learn more about business Non-techies learn more about tech Everyone works as one team
  49. 49. Agile is the process change that accompanies digitisation Digital businesses needs to be Agile 1. Plan less, release more 2. Build a machine that can iterate to learn 3. Everyone is a manager 4. #BizTech: One Team Allan Kelly – allan@allankelly.net - @allankellynet https://www.allankellyassociates.co.uk/blog/

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