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Nigel Green
Partner, UK
Hong Kong, July 2016
It’s hard to recognise innovation until it’s
happened…
“If I had asked
people what they
wanted, they
would have said
faster horses.”
The familiar doesn’t always help us
understa...
Horses & unicorns
The familiar versus the exotic.
TRADITIONAL FIRMS BORN-DIGITAL FIRMS
Who behaves like
unicorns?
Think & behave disruptively.
http://www.mckinsey.com/Industries/High-Tech/Our-Insights/Grow-fas...
Who behaves like
unicorns?
We’ve all heard of them,
but have they been…
http://www.mckinsey.com/Industries/High-Tech/Our-I...
…hidden in plain sight?
Hidden in plain sight?
Unicorn’s are living among the “horses” …
and eating their lunch!
Is this just the tip of the iceberg?
20% World’s unicorns
are from China
https://www.cbinsights.com/research-unicorn-compa...
“a month ago, everyone was using their UnionPay credit cards, now
everyone is just tapping their phones”
Digital disruptio...
Efficiency
Resiliency
What the hidden
magic delivers
Revenue
Agility
Discovering how is the question.
}  Agility - development processes that used to take months now take weeks.
}  Efficiency - reducing the amount of infra...
2016
will be shaped by
digital transformation
with
availability, capabilities, and business needs
being the biggest relate...
•  General Electric
•  Hewlett Packard
•  Capital One Financial Corp.
•  Goldman Sachs Group Inc.
•  The Guardian Media Gr...
Over half of organizations across
the US, UK, India and Israel plan
to follow the Digital-native’s “way
of working” to imp...
Customer Service, Revenue, Cost, Merger &
Compliance challenges.
Mr. Black
the CIO
“Reduce IT
running
Costs”
“We must keep...
A hunch he could learn from the digital
unicorns – even though he was starting from a very different point..
What Would th...
SaaS
IaaS
DevelopersPaaS
Do Work On
Use Resources Of
Build Solutions On
Users
Developers
Broadly adopted Cloud usage.
Clou...
XaaS XaaS
XaaS
XaaS
XaaS
XaaS
XaaS
Cloud Mode 2: Unicorns
Cloud Everywhere
http://internetofthingsagenda.techtarget.com/de...
And there’s more – A seismic shift in
computing.
A much bigger change than Mainframe to
Client Server.
The New Compute
Platform
XaaS
Services everywhere: an ecosystem of
macro and micro services.
Services, services &
more services
“I like the simple
...
Business Unit Leads Analysts & UX specialists & Technicians
NEW SMEsENTHUSIATIC INCUMBANTS
A small team with one shared vi...
A culture of agile experimentation.
Unicorn culture
“…cloud-oriented architecture should be prototyped and
refined by smal...
The ACME challenge: deliver a
working prototype within 90
days.
Focus on the Customer & Revenue first.
The CIO’s strategy “Reduce IT
running
Costs”
“We must keep our
Regulator happy!”
“W...
Demonstrate route to all four business
outcomes, within the 90 Days.
The CIO’s strategy “Reduce IT
running
Costs”
“We must...
Significant enough progress was
made within 30 days to gain the
support of the entire C-Suite.
The story continues…
Of Horses & Unicorns
EXPLORE THE
POSSIBILITIES
1.  ASK “WHAT WOULD THE UNICORNS DO?”:
Take a lead of the “Born-digital” firms and tailor to you...
TOP-LEVEL BUY-IN
GET TOP-LEVEL SUPPORT:
Define measurable, business relevant, principles …
…and then manage to them.
Show ...
FASTER THAN EVER
BEFORE
CREATE A FAST-PACED DELIVERY TEAM:
Use experts that understand the “vision” to get things started ...
ACME’s Hypothesis
ACME decided the risks were worth the reward
and to act now! (The risk of doing nothing was too big)
REW...
Experiment
Could their thinking help your business?
Is your CIO developing Cloud-enabled
Ways of Working?
Can horses afford to wait?
nigel.green@cio-connect.com
Mobile:+44 7943 137344
Twitter: @taotwit
https://www.linkedin.com/in/nigelgreen
}  Agility. By breaking down functionality to the near atomic level, development teams focus
on only updating the relevan...
Omni-Channel
Select technologies & services which are appropriate for use by both retail store and online
channels.
Leadin...
ACME Transformation
Principles
Measurable business principles – understood
& supported by the Excom.
Reducing Cost Of Owne...
Keep things simple to start and evolve.
Four outcome areas
FOCUS ON 4 KEY OUTCOME AREAS:
1.  User Experience: make it tang...
Horses & Unicorns: Britchamber july 2016
Horses & Unicorns: Britchamber july 2016
Horses & Unicorns: Britchamber july 2016
Horses & Unicorns: Britchamber july 2016
Horses & Unicorns: Britchamber july 2016
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Horses & Unicorns: Britchamber july 2016

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This story was first told to the British Chamber in Hong Kong in May 2016. It's about a real business that wishes to remain anonymous. It is just a short teaser that begs questions and much more discussion, but it did generate lively Q&A on the day.

Please visit the Horses & Unicorns blog: http://horsesunicorns.blogspot.co.uk/

Published in: Technology
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Horses & Unicorns: Britchamber july 2016

  1. 1. Nigel Green Partner, UK Hong Kong, July 2016
  2. 2. It’s hard to recognise innovation until it’s happened…
  3. 3. “If I had asked people what they wanted, they would have said faster horses.” The familiar doesn’t always help us understand the new.
  4. 4. Horses & unicorns The familiar versus the exotic. TRADITIONAL FIRMS BORN-DIGITAL FIRMS
  5. 5. Who behaves like unicorns? Think & behave disruptively. http://www.mckinsey.com/Industries/High-Tech/Our-Insights/Grow-fast-or-die-slow-Why-unicorns-are-staying-private?cid=digistrat-eml-alt-mip-mck-oth-1606 “Since 2013, an increasing number of technology companies have achieved “unicorn” status: valuations upward of $1 billion in private markets.“ - McKinsey, May 2016
  6. 6. Who behaves like unicorns? We’ve all heard of them, but have they been… http://www.mckinsey.com/Industries/High-Tech/Our-Insights/Grow-fast-or-die-slow-Why-unicorns-are-staying-private?cid=digistrat-eml-alt-mip-mck-oth-1606 “Since 2013, an increasing number of technology companies have achieved “unicorn” status: valuations upward of $1 billion in private markets.“ - McKinsey, May 2016 NOW PUBLICY QUOTED BUT STILL THINK LIKE A UNICORN.
  7. 7. …hidden in plain sight?
  8. 8. Hidden in plain sight? Unicorn’s are living among the “horses” … and eating their lunch!
  9. 9. Is this just the tip of the iceberg? 20% World’s unicorns are from China https://www.cbinsights.com/research-unicorn-companies
  10. 10. “a month ago, everyone was using their UnionPay credit cards, now everyone is just tapping their phones” Digital disruption in China http://www.economist.com/news/business/21660996-chinese-online-giant-looking-new-sources-growth-clicks-bricks
  11. 11. Efficiency Resiliency What the hidden magic delivers Revenue Agility Discovering how is the question.
  12. 12. }  Agility - development processes that used to take months now take weeks. }  Efficiency - reducing the amount of infrastructure required to run a given application by 50%. }  Resiliency - avoid a single point of failure, very limited downtime, can scale seamlessly on demand. }  Revenue - faster iteration and less downtime add up to more revenue. Who isn’t looking for these?
  13. 13. 2016 will be shaped by digital transformation with availability, capabilities, and business needs being the biggest related issues IT leadership will face. IDC Predicts…
  14. 14. •  General Electric •  Hewlett Packard •  Capital One Financial Corp. •  Goldman Sachs Group Inc. •  The Guardian Media Group (UK) •  Thomas Cook PLC (UK) •  William Hill PLC (UK) •  ITV (UK) •  Nike … and many more.. Adoption is looking like a hockey stick… The Horses are looking for their inner Unicorn.
  15. 15. Over half of organizations across the US, UK, India and Israel plan to follow the Digital-native’s “way of working” to improve their agility in the next 12 months, according to new research by IDG Connect – March 15th 2016 http://www.businesswire.com/news/home/20160315005089/en/IDG-Connect-Microservices-Firms-Battle-Monolithic-Restrictions Who else is adopting? Traditional firms are adopting the unicorn’s way-of-working
  16. 16. Customer Service, Revenue, Cost, Merger & Compliance challenges. Mr. Black the CIO “Reduce IT running Costs” “We must keep our Regulator happy!” “We need your help to modernise our Retail stores” “We plan to buy the 2nd largest firm. Be ready for a merger – we want one IT solution” “Our customers need one great experience – in store & mobile” Mr. Black joins ACME (early 2015) ? ?
  17. 17. A hunch he could learn from the digital unicorns – even though he was starting from a very different point.. What Would the Unicorns Do?
  18. 18. SaaS IaaS DevelopersPaaS Do Work On Use Resources Of Build Solutions On Users Developers Broadly adopted Cloud usage. Cloud Mode 1: Horses Outsourced IT Firewall
  19. 19. XaaS XaaS XaaS XaaS XaaS XaaS XaaS Cloud Mode 2: Unicorns Cloud Everywhere http://internetofthingsagenda.techtarget.com/definition/fog-computing-fogging Private Cloud(s)Public Cloud(s) Everything’s a Service on the Cloud ecosystem. Firewall
  20. 20. And there’s more – A seismic shift in computing.
  21. 21. A much bigger change than Mainframe to Client Server. The New Compute Platform
  22. 22. XaaS Services everywhere: an ecosystem of macro and micro services. Services, services & more services “I like the simple elegance of a Cloud Services- Everywhere model” “We can be flexible on how we source the services we need – externally or internally” Firewall XaaS XaaS XaaS XaaS XaaS XaaS Private Cloud(s)Public Cloud(s) “We should focus first on the business differentiating services…” “…and how to establish foundation that will enable the whole services ecosystem”
  23. 23. Business Unit Leads Analysts & UX specialists & Technicians NEW SMEsENTHUSIATIC INCUMBANTS A small team with one shared vision. A new way of working The Progranme Director The Consultant The DesignerThe CIO NEW LEADERSHIP TEAM
  24. 24. A culture of agile experimentation. Unicorn culture “…cloud-oriented architecture should be prototyped and refined by small "innovation teams" that can perform a scouting mission to specifically trailblaze how the organization and culture can be adapted to the new cloud-based world of software development. These missions should not be throwaway projects, but a high degree of risk is implied, and the culture of "fail fast and fail often" should be the mantra”. IDC February 2016 Business Unit Leads Analysts & UX specialists & Technicians NEW SMEsENTHUSIATIC INCUMBANTS The Progranme Director The Consultant The DesignerThe CIO NEW LEADERSHIP TEAM
  25. 25. The ACME challenge: deliver a working prototype within 90 days.
  26. 26. Focus on the Customer & Revenue first. The CIO’s strategy “Reduce IT running Costs” “We must keep our Regulator happy!” “We need your help to modernise our Retail stores” “We plan to buy the 2nd largest firm. Be ready for a merger – we want one IT solution” “Our customers need one great experience – in store & online” •  IMPROVED CUSTOMER SERVICE: •  Create an Omni-Channel experience, in store or mobile. •  Establish new levels of situation awareness through near real-time analytics and use it to improve customer insight. •  Improve the in-shop environment: happier staff = happier customers. •  IMPROVED REVENUE: •  attracting new customers & retaining old through improved interaction at all touch-points. •  ability to respond to new demands and new routes to revenue through micro-marketing.
  27. 27. Demonstrate route to all four business outcomes, within the 90 Days. The CIO’s strategy “Reduce IT running Costs” “We must keep our Regulator happy!” “We need your help to modernise our Retail stores” “We plan to buy the 2nd largest firm. Be ready for a merger – we want one IT solution” “Our customers need one great experience – in store & online” •  AVOIDED COSTS: •  License cost reduction through the replacement of databases and middleware with Open Source Software. •  Create a platform for rapid integration post M&A. •  EXCEED REGULATORY MANDATES: •  Open-up data and create process transparency through business event-logging leading to exceptional process auditability.
  28. 28. Significant enough progress was made within 30 days to gain the support of the entire C-Suite. The story continues…
  29. 29. Of Horses & Unicorns
  30. 30. EXPLORE THE POSSIBILITIES 1.  ASK “WHAT WOULD THE UNICORNS DO?”: Take a lead of the “Born-digital” firms and tailor to your firm’s needs. Recognise “The Cloud” is the next-gen compute platform. Leverage Open Source Software & commodity Cloud services. Create a route-plan to Cloud-Native Applications (e.g. Microservices) Architecture. Adopt an agile, adaptive & evolutionary approach.
  31. 31. TOP-LEVEL BUY-IN GET TOP-LEVEL SUPPORT: Define measurable, business relevant, principles … …and then manage to them. Show both tactical and strategic value to the business early. Take C-suite on a journey of low-risk incremental steps that demonstrate clear value-for-money that strengthens the strategic business case.
  32. 32. FASTER THAN EVER BEFORE CREATE A FAST-PACED DELIVERY TEAM: Use experts that understand the “vision” to get things started quickly. Establish new ways of working through a separate expert-led team. Demonstrate results frequently clearly pinned to business outcomes. Create the “seed of change” and then propagate it. Learn from the Unicorns, then be bold, experiment, and manage risk.
  33. 33. ACME’s Hypothesis ACME decided the risks were worth the reward and to act now! (The risk of doing nothing was too big) REWARD RISK COST
  34. 34. Experiment
  35. 35. Could their thinking help your business? Is your CIO developing Cloud-enabled Ways of Working? Can horses afford to wait?
  36. 36. nigel.green@cio-connect.com Mobile:+44 7943 137344 Twitter: @taotwit https://www.linkedin.com/in/nigelgreen
  37. 37. }  Agility. By breaking down functionality to the near atomic level, development teams focus on only updating the relevant pieces of an application. This removes a painful process of integration experienced with monolithic applications. Development processes that used to take months now take weeks. }  Efficiency. Far more efficient use of code and underlying infrastructure. Users report significant cost savings— reducing the amount of infrastructure required to run a given application by 50%. }  Resiliency. The dispersion of functionality across services can avoid a single point of failure. The result is systems that perform much better with very limited downtime, and can scale seamlessly on demand. }  Revenue. Faster iteration and less downtime add up to more revenue. User retention and user engagement increase as your product continuously improves.
  38. 38. Omni-Channel Select technologies & services which are appropriate for use by both retail store and online channels. Leading Edge Not Bleeding Edge Use technologies & services which have been adopted by class leading digital businesses and proven at scale in real world operations. Design For Uncertainty Design for flexibility which allows systems to be more quickly replaced and/or enhanced, to reflect continuous customer feedback, and to enable strategic agility should there be a significant shift in the market. Right Time Information Design for real time or near real time information as needed – avoid batch ‘end-of-days’. Open Data & Interfaces Design systems by default to allow all their data to be consumed in an open way, so that data can readily be aggregated and used as a single version of the truth, internally and externally. Scalable / Agile All solutions must allow ease-of-scale, through replication and be highly agile, through ease of configuration. Available All solutions must be highly available; able to deal with degradation of elements of the solution without impacting operational capability or the end user experience. Device & Channel Agnostic Any solution must be able to work on any ACME device natively and available across the Internet. ACME Transformation Principles
  39. 39. ACME Transformation Principles Measurable business principles – understood & supported by the Excom. Reducing Cost Of Ownership By choosing ‘open source’ or ‘cloud’ solutions’, which can run on minimum spec devices, and allow retirement of legacy. By adopting a ‘rent don’t buy’ mantra and adopt an OPEX model which is scalable (up and down) based on actual usage. Smart Stitching Utilise best of breed SaaS and/or ‘open source’ products where possible and focus on ‘stitching’ these solutions together. Incremental Changes Utilise a Microservices approach to allow gradual deployment of new capability towards an overall vision, but without large scale transition states, and hence reduce business operational impact Build for Competitive Advantage; Buy for Competitive Parity Build tech/services that enhance or automate a capability that is a competitive advantage for ACME. Do no re-invent functionality that can be provided by commodity services
  40. 40. Keep things simple to start and evolve. Four outcome areas FOCUS ON 4 KEY OUTCOME AREAS: 1.  User Experience: make it tangible; show how things will look and feel through rapid prototyping cycles. 2.  Insight: demonstrate the insights created by knowing exactly what business event has happened and when and focus on issues that had been hard to fix in the past. 3.  Integration: show how external services and internal apps can be integrated, quickly without expensive middleware. Demonstrate how this will simplify the integration of future acquisitions. 4.  Agility: deliver results in days rather than weeks or months.

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