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Scaling the Lean Startup in the Enterprise

The "digital enterprise" may seem like a fuzzy marketing concept, but the impact to most IT organizations is clear: apply software innovation to drive deeper engagement with customers and front-line employees.

This transformation requires connecting innovation teams with core IT through lean startup disciplines, visionary leadership, lean analysis, agile architecture, agile development, lean data management and DevOps.

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Scaling the Lean Startup in the Enterprise

  1. 1. SCALING THE LEAN START UP IN THE ENTERPRISE SOFTWARE INNOVATION February 11, 2016 Agenda 1. Vision: Software Innovation at Scale (Digital Enterprise) 2. Journey One: Core to Edge (Renovating the Core) 3. Journey Two: Edge to the Core (Lean Startup) 4. Bridging the Gap: Connecting the Edge and Core NVISIA® Confidential 20151
  2. 2. INTRODUCTION FEATURED PRESENTERS NVISIA® Confidential 20152 Dru joined NVISIA as a senior consultant in 1996 and has been involved in developing software innovation teams for both NVISIA and our clients. Dru's experience spans 20 years of software innovation, delivering breakthrough software platforms for large enterprises using C++/CORBA, Enterprise Java, NoSQL and Single Page Apps with Microservice Architectures, including several cloud based deployments. Dru Henke Managing Director Josh Birenbaum Director Josh serves as the capability lead for the Application Architecture and Development team at NVISIA. Josh has more than 18 years of experience in bringing software innovation to global leaders in health care technology, health care insurance and government services. His expertise includes application architecture, solution design, business analysis and the agile delivery of business applications.
  3. 3. INTRODUCTION SOFTWARE INNOVATION NVISIA® Confidential 20153 A digital enterprise is an organization that uses technology as a competitive advantage in its internal and external operations. As information technology (IT) has reshaped the infrastructure and operations of enterprises, digital enterprise has taken on different meanings. - Techtarget.com SOFTWARE INNOVATION Discovering, evaluating and executing on opportunities that are created by emerging software technology and usually focused on increasing engagement with customers and front-line employees. SOFTWARE INNOVATION IN AN ENTERPRISE Discovering, evaluating and executing on opportunities that are created by emerging software technology and usually focused on increasing engagement with customers and front-line employees. Executing in an enterprise further requires connecting innovation teams with core IT through lean startup disciplines, visionary leadership, lean analysis, agile architecture, agile development, lean data management and DevOps. There is a significant difference!
  4. 4. INTRODUCTION SOFTWARE INNOVATION IN AN ENTERPRISE NVISIA® Confidential 20154 Gartner® predicts 75% of IT organizations will have a Bimodal IT capability by 2017. “…half will make a mess.” - Simon Mingay, VP Research at Gartner Bimodal IT: How to Have It All Without Making a Mess SOFTWARE INNOVATION Lean Startup - Eric Ries Table Stakes in the Digital Enterprise SOFTWARE INNOVATION IN AN INTEGRATED ENTERPRISE Lean Enterprise …innovation at scale Bimodal IT Connect Innovation with Core IT
  5. 5. ENTERPRISE SOFTWARE INNOVATION CHALLENGES NVISIA® Confidential 20155 IT’S DIFFERENT Change breaks the status quo and requires exceptions to established process MOVE FROM COMMAND AND CONTROL Building a software innovation capability in an enterprise setting requires a shift from central and siloed control of software development disciplines to autonomous, collaborative approach with multidisciplinary, self-directed teams EMPHASIS ON LEARNING Focus on validation of assumptions, using real users and then have the courage to pivot when necessary. Bui ld Mea sure Lea rn
  6. 6. ENTERPRISE SOFTWARE INNOVATION HOW WILL COMPANIES MESS IT UP? NVISIA® Confidential 20156 HOW THEY MESS IT UP?  Not dealing with Bimodal - assuming innovation (Mode2) teams are just Agile  Not aligning traditional IT teams with innovation focused teams  Leaving integration as an afterthought  Starting without a “blueprint” (a strategy and high-level plan) for innovation efforts EXTREME STRATEGIES 1. Just do it by kicking off isolated innovation efforts >> chaos! 2. Renovate the core first, then innovation is easy >> Unable to innovate until 2020 PRACTICAL STRATEGIES - HYBRID APPROACH GOAL: Evolve a software innovation capability that scales • Focus the edge software on the business of customer engagement • Connect the edge software to IT core by design • Map out an informed path to renovating the IT core
  7. 7. ENTERPRISE SOFTWARE INNOVATION EDGE AND CORE NVISIA® Confidential 20157 FROM THE CORE Exposing common services and expose business entities and services with a domain driven model. Look for opportunities to be come more agile in the core with shorter release cycles. FROM THE EDGE Isolate, focus and lead learning organizations in a lean startup model. Be mindful of aligning teams with core technology and tools where possible. Always considering long-term support resource balance between edge and core resources.
  8. 8. JOURNEY ONE FROM THE CORE TO THE EDGE NVISIA® Confidential 20158 What is the core? • Legacy systems that your business is built around • Often have evolved over time Why change the core? • Modernization • Quicker turnarounds • Shift in business needs • Competitive advantage though improving customer engagement How to change the core? • Determine roadmap • Innovation with borders • Look at people and processes, not just technologies • Consider reuse of existing resources • Focus on areas of need and differentiation • Balance the new with the old • Show progress
  9. 9. JOURNEY ONE FROM THE CORE TO THE EDGE NVISIA® Confidential 20159 What? Primary customer facing web application that gathers tests results from membership for scoring purposes Why? Modernization: Legacy app dependent on Adobe PDF plugin that limited browser compatibility and provided less than ideal customer experience How? 2 week HTML5/Javascript prototype Limited scope of initial release Target small subset of forms to limit impact and gather feedback Full migration plan Run a micro service architecture proof of concept in parallel Leverage SMEs Form Entry System
  10. 10. JOURNEY ONE FROM THE CORE TO THE EDGE NVISIA® Confidential 201510 What? Health insurance portal Why? Keeping up with competition and shift in business need: Industry was moving more toward mobile devices, competition provided features that could only be performed on their desktop app, and with the demographic of health care exchange more members had access to cell phones, but not desktops How? Reused existing EJB service layer Carved out MVP with subset of features most needed Added mobile specific differentiators Worked within waterfall environment in agile ways Collaborated with marketing on content driven campaigns Mobile Membership Portal
  11. 11. JOURNEY ONE FROM THE CORE TO THE EDGE NVISIA® Confidential 201511 What? Monthly payment system for state retirees. Paper and COBOL program based solution. Why? Modernization and quicker turnarounds: Cost savings to move away from carbon paper enrollments, many of the COBOL developers were nearing retirement, needed to support increasing scale. As retirement laws and rules changed, needed to be able to incorporate updates more efficiently. How? More of a ‘big bang’ approach Had to overcome previous failed attempts Resistance to change Heavy parallel testing efforts Leveraged business, technical and support SMEs Data migration challenges Inconsistent business rules Annuity Payment System
  12. 12. JOURNEY TWO FROM THE EDGE TO THE CORE NVISIA® Confidential 201512 WHAT IS THE EDGE? In the parlance of Bimodal IT the “Edge” is where Innovation Teams live. Innovation Teams strive to leverage the creative power of startups within an established enterprise. BUT ESTABLISHED ENTERPRISES AREN’T STARTUPS Of course, there are key differences between a “true” startup and an Innovation Team SOME STARTUP ADVANTAGES • No entrenched culture • No ”Curse of Knowledge” • Allows free brainstorming without ideas getting shot down for being "impossible” • Technological freedom • Can lead to extremely fast cycle times for testing new features and product ideas SOME INNOVATION TEAM ADVANTAGES • Financial security (not looking for outside funding) • Can leverage recruiting, HR, and other "shared services” • Deep subject matter expertise (needs to be balanced against the "Curse of Knowledge") • When product is ready, there is often a significant structure already in place to sell and support it
  13. 13. JOURNEY TWO FROM THE EDGE TO THE CORE NVISIA® Confidential 201513 HOW CAN I GET THE ADVANTAGES OF A STARTUP? Break your entrenched culture… • Create an "island" for the Innovation Team • Ideally in a physically separate office space • Mix people from across the enterprise Break the "Curse of Knowledge" • Requires careful selection of team members, the majority of which need to be new to the field Grant technical freedom • Minimal architectural/technical governance • Determine the minimum number of "rules” – just enough to enable the product to be supported in the future
  14. 14. JOURNEY TWO FROM THE EDGE TO THE CORE NVISIA® Confidential 201514 WHAT ELSE DO I NEED TO DO? Charge the team with a mission Innovation teams need to be established around a mission. On successful innovation teams, the members need to be able to connect to the “why?” “Whys” that can drive an innovation team: …to accelerate benefits to the aged, blind, and disabled …to stop drug traffickers from laundering money …to improve outcomes for students Apply pressure Participation on an innovation team should feel like a privilege. Talk to customers Customer feedback is a primary mechanism for proceed or pivot. Reward success If you’ve created a true innovation team, they worked very hard to succeed.
  15. 15. BLUEPRINT PROCESS MICROSERVICE IMPLEMENTATION NVISIA® Confidential 201615 • Establish key goals for initial demonstration of benefits from micro services • Determine initial scope of micro services effort Sponsor All Teams In Scope Sponsor, Leads & SMEs Team Representatives Project Team(s) Establish Expectations Gather Information Share Findings & Discuss Goals Execute Blueprint Collaborative Solution Design Team Leads & SMEs Demonstrate Sponsor, Leads & SMEs Agree to Launch SUMMITLISTEN LEARN ALIGN ARCHITECT VALIDATE LAUNCH • Meet with key stakeholders to identify needs and drivers for Microservices solution • Perform technical and business surveys for understanding of existing environment and related pain points • Establish baseline understanding of micro services solution • Develop consensus on value and implementation approach for micro services solution • Identify candidate 1st project for implementation • Show the changes in the development process for the chosen project • Identify key artifacts and timelines • Establish new domain role/ responsibilities, as applied to the project • Chose target tech stack for the proof of concept • Vet changes to people, development process and artifacts alignment with stakeholder goals • Prototype micro service architecture to prove out tech stack and demonstrate key benefits • Communicate micro service implementation strategy • Reach consensus micro services implementation steps • Use proof of concept as a template and adjust as needed for initial effort
  16. 16. THANK YOU! Mark Panthofer, mpanthofer@nvisia.com Dru Henke, dhenke@nvisia.com Josh Birenbaum, jbirenbaum@nvisia.com www.nvisia.com NVISIA® Confidential 201516

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