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Agile India 2021: Experimenting with BAPO in Spotify Ads R&D

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Agile India 2021: Experimenting with BAPO in Spotify Ads R&D

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BAPO stands for Business Architecture Process Organisation. It is Jan Bosch's more fleshed out expression of "structure should follow strategy". I recently experimented with applying this framework within Spotify Ads R&D and would like to share what worked and what didn't. Concepts expanded beyond BAPO to include product capabilities versus architecture services; overlapping product lifecycle s-curves; Simon Wardley's Pioneers, Settlers, Town Planners; and a reframing of the teaching people how to fish metaphor. Beyond sharing my successes and failures, this session will also encourage attendees to sketch how they might try this framework in their own context and anticipate what issues may appear.

BAPO stands for Business Architecture Process Organisation. It is Jan Bosch's more fleshed out expression of "structure should follow strategy". I recently experimented with applying this framework within Spotify Ads R&D and would like to share what worked and what didn't. Concepts expanded beyond BAPO to include product capabilities versus architecture services; overlapping product lifecycle s-curves; Simon Wardley's Pioneers, Settlers, Town Planners; and a reframing of the teaching people how to fish metaphor. Beyond sharing my successes and failures, this session will also encourage attendees to sketch how they might try this framework in their own context and anticipate what issues may appear.

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Agile India 2021: Experimenting with BAPO in Spotify Ads R&D

  1. 1. 1 Experimenting with BAPO in Spotify Ads R&D: aligning product strategy, technical architecture, ways of working, and org structure Jason Yip Senior Agile Coach, Spotify @jchyip https://jchyip.medium.com jchyip@gmail.com, jyip@spotify.com
  2. 2. 2 The problem as I saw it
  3. 3. Spotify Advertising was/is growing https://www.businesswire.com/news/home/20211027005313/en/
  4. 4. Recent acquisition More complex deliveries Some pre-existing collaboration issues ALSO Might be time to revisit structure...
  5. 5. 5 My framing question
  6. 6. How might we approach org design in a systemic, logical way?
  7. 7. 7 From “structure follows strategy” to BAPO
  8. 8. “Unless structure follows strategy, inefficiency results.” Alfred D. Chandler Jr
  9. 9. https://janbosch.com/blog/index.php/2017/11/25/structure-eats-strategy/ BAPO is Jan Bosch’s more fleshed out expression of “structure follows strategy”
  10. 10. Category Description KPI (Key Performance Indicator) Commodity (aka hygiene) ● Needed for product to work ● No customer will select the product because of this functionality ● Minimise total cost of ownership Differentiating (aka better = $) ● Unique capabilities that drive customer interest and buying behaviour ● Maximise business value Innovation (aka not guaranteed to work) ● Experimental functionality as part of trying to identify new future differentiation ● Number of experiments attempted “Business” is about product life cycle categories
  11. 11. “Architecture” is about decoupling and dependencies “Commodity” service “Differentiating” service “Innovation” service
  12. 12. Category Potential ways of working Commodity (aka hygiene) Outsource, use 3rd party services, internal platform teams, minimise unnecessary variation Differentiating (aka better = $) Iterative-incremental development, maximise valuable variation Innovation (aka not guaranteed to work) Running lots of parallel experiments, acquisition “Process” is about ways of working
  13. 13. “Organisation” is about staffing allocation and team structure “Commodity” teams “Differentiating” teams “Innovation” teams Minimise Judgment call on how to balance remaining allocation between “differentiating” and “innovation”
  14. 14. 14 Target
  15. 15. 1. (minimum) Inject BAPO into the narrative; 2. (ideal) Create a target operating model to directly influence org design
  16. 16. 16 Principles for change
  17. 17. ● Start where you are; ● Use existing resources; ● Person-by-person buy-in (aka “ground war” or nemawashi); ● Frame as an experiment
  18. 18. 18 What happened?
  19. 19. No existing product capability maps … but we do have architecture diagrams Start where you are; Use existing resources
  20. 20. Plan to get person-by-person feedback and buy-in Frame as an experiment
  21. 21. Commodity Differentiating Innovation Ad serving console Order management Mobile client platform Audiences Budget allocator Ad Studio Native layer features Partner API Format business logic Spotify for Artists integration ? Example of the strawman I created Google Ad Manager integration
  22. 22. Commodity / hygiene Differentiating / better = $ Innovation / Not guaranteed to work After validation with Product Leads Account management Audience management Payments Campaign management Commodity 3rd party measurement Advanced forecasting Advanced pricing Decision optimisation New client platforms Reporting New formats New targeting Architecture services Product capabilities Ad serving console Order management Mobile client platform Audiences Budget allocator Ad Studio Native layer features Partner API Format business logic Spotify for Artists integration ? Google Ad Manager integration Customer-specific measurement?
  23. 23. Commodity / hygiene Differentiating / better = $ Innovation / Not guaranteed to work Add current teams and allocation Account management Audience management Payments Campaign management Commodity 3rd party measurement Advanced forecasting Advanced pricing Decision optimisation New client platforms Reporting New formats New targeting Architecture services Product capabilities Ad serving console Order management Mobile client platform Audiences Budget allocator Ad Studio Native layer features Partner API Format business logic Spotify for Artists integration ? Google Ad Manager integration Customer-specific measurement? Teams ~X people ~Y people ~Z people Platform Insights Operators Ad Serving Payments Activation Dynamic Ad Breaks Ad Engagement Retention ?
  24. 24. Present to Mission Leads
  25. 25. 25 Results
  26. 26. 1. (minimum) Inject BAPO into the narrative? 2. (ideal) Create a target operating model to directly influence org design? YES Not really
  27. 27. 27 Lessons
  28. 28. ● BAPO is a useful model; ● Change tactics were useful (start where you are, use existing resources, person-by-person buy-in, frame as an experiment); ● Don’t try to teach “level 3” leaders to fish
  29. 29. Give someone a fish, you feed them for a day; teach them how to fish, you feed them for a lifetime.
  30. 30. Level 3+ leaders don’t fish
  31. 31. To learn more ● (blog) Jan Bosch’s 2017 post on BAPO: “Structure Eats Strategy”; ● (book) Impactful Software by Jan Bosch; ● (blog) My Medium post on this: “Concepts I use every day: BAPO” ● (paper) An evolution of BAPO: “ESAO: A holistic Ecosystem-Driven Analysis Model” by Jan Bosch and Petra Bosch-Sijtsema

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