Next Generation IT

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Standardization, centralization, process rigor and labor arbitrage have been the hallmarks of today’s model for managing the Business of IT. IT organizations have used this model to achieve economies of scale and minimize the average total cost of IT. This approach has largely been in place for the past 3 decades that were characterized by large, multi-year IT development projects, a growing base of legacy applications and a gradual evolution of the underlying technology. While providing predictability and efficiency, this model has also served to discourage innovation, reduce business alignment and drives the balkanization of skills within the IT workforce.

In this presentation, I describe an alternative model for managing IT in today's technology intensive organizations.

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Next Generation IT

  1. 1. Next Generation ITChanging the role of IT in today’sbusinessSrini KoushikDecember 2011 Srini Koushik - March 2012
  2. 2. For time and the world do not stand still.Change is the law of life. And those who look only to the past or the present are certain to miss the future. John F. Kennedy Srini Koushik - March 2012
  3. 3. Gordon Moore Source: Intel Corporation Computing power continues to increase Srini Koushik - March 2012
  4. 4. Connectivity is exploding Srini Koushik - March 2012
  5. 5. Bob Metcalf Source: get Satisfaction Networks continue to grow Srini Koushik - March 2012
  6. 6. Digitization of an analog world Srini Koushik - March 2012
  7. 7. Everyone is connected, Everything is connected – all the time Srini Koushik - March 2012
  8. 8. Change is not a destination, just like Hope is not a Strategy Rudy Giuliani Srini Koushik - March 2012
  9. 9. Globalization of the Marketplace Srini Koushik - March 2012
  10. 10. Consumerization of IT Source Wired Magazine Srini Koushik - March 2012
  11. 11. Democratization of data Videos Structured Data Voice SensorsSocial Data Mobile data Images Srini Koushik - March 2012
  12. 12. Virtualization of the Value Chain Srini Koushik - March 2012
  13. 13. Fundamentally changing the role of IT Videos Structured Data Voice Sensors Srini Koushik - March 2012
  14. 14. These trends are changing how we deliver IT . . . globalization consumerization changing role or IT virtualization Videos Stru Voice Se ctur ns ed ors Dat a democratization Structured Data Mobile data Srini Koushik - March 2012
  15. 15. Driving the need for a different approach to IT . . . Threat of New Entrants Lack of differentiation and lower switching Lower barriers to entry drives costs results in a buyer’s market global competition Bargaining Power Rivalry amongst Videos Stru ctur Voice Se ns Bargaining Power of Buyers industry ors ed Dat of Suppliers competitors a Ease of access to data results Consolidation of components across value in more informed consumers Threat of Structured Data chain are driving danger of “lock-in” substitute products Mobile data Srini Koushik - March 2012
  16. 16. An approach that focuses on the I in ITINFORMATION Context TECHNOLOGYinnovate interact i n d ust ria l ize iterate improve Srini Koushik - March 2012
  17. 17. You have to learn the rules of the game.And then you have to play it better than anyone else. Albert Einstein Srini Koushik - March 2012
  18. 18. Mass Production Factories Srini Koushik - March 2012
  19. 19. Highly dependent on skilled labor Srini Koushik - March 2012
  20. 20. Model Industrialized by Service Providers Srini Koushik - March 2012
  21. 21. Scale Matters If you think you are one in a million there are 1100 of you in India and 1300 of you in China and 300 in the US Source – Edmonton SunSrini Koushik - March 2012
  22. 22. Getting the Numbers Right: International Engineering Education in the United States, China, and India – Gary Geraffi, Vivek Wadhwa et. al – Duke University Playing the Engineering game Srini Koushik - March 2012
  23. 23. IT Economics driven by Labor Arbitrage Srini Koushik - March 2012
  24. 24. “If we try to play like the Yankees in here(board room), we will lose to the Yankees out there (on the field).” Moneyball, Michael Lewis Srini Koushik - March 2012
  25. 25. It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so Mark Twain Srini Koushik - March 2012
  26. 26. 1. Poor understanding of SystemsAdapted from The Principles of Product Development – Donald G. Reinertsen 2. Focus on the wrong metrics 3. Ignoring the impact of queues 4. Focus on Efficiency 5. Standardization 6. Elimination of Variability 7. Search for Scale 8. Lack of cadence 9. Managing to Plans vs. Outcomes 10.Centralized Control IT Management Orthodoxies Srini Koushik - March 2012
  27. 27. IT is not Innovative Poor Quality IT is Slow IT is too Expensive All of the aboveSrini Koushik - March 2012
  28. 28. “When everybody else is playing Checkers – We will start playing Chess” Srini Srini Koushik - March 2012
  29. 29. Defining Value Srini Koushik - March 2012
  30. 30. IT Portfolio ManagementValue Added Activities Enterprise Architecture Security and Risk Management Core Activities Relationship Solutions Service Specifications Management Development Support Staffing and Supplier ManagementActivitiesSupport IT Financial Management IT Support – Facilities etc. The IT Value Chain Srini Koushik - March 2012
  31. 31. IT Portfolio Management Enterprise Architecture Security and Risk ManagementRequirements Design Implementation Verification Maintenance Staffing and Supplier Management IT Financial Management IT Support – Facilities etc. AD&M Value Stream Srini Koushik - March 2012
  32. 32. IT Portfolio Management Enterprise Architecture Security and Risk Management Request Incident Problem Change Release Staffing and Supplier Management IT Financial Management IT Support – Facilities etc.Infrastructure & Operations Value Stream Srini Koushik - March 2012
  33. 33. Create Flow - From Efficiency to Throughput Srini Koushik - March 2012
  34. 34. From Compartmental Thinking to Systems Thinking Srini Koushik - March 2012
  35. 35. Standardization to Mass Customization Srini Koushik - March 2012
  36. 36. Adding Creativity to Engineering Srini Koushik - March 2012
  37. 37. Design Thinking – Convergent to Divergent Srini Koushik - March 2012
  38. 38. Innovation is the set of capabilities that allows the continuousrealization of a desired future by transforming what is possible into what is valuable for many - John Kao Strive for Perfection Srini Koushik - March 2012
  39. 39. There are two kinds of people, those who dothe work and those who take the credit. Try to be in the first group; there is less competition there Indira Gandhi Srini Koushik - March 2012
  40. 40. 1. Visualization 2. TDD 1. Visual Workplace 3. Paired programming 2. Product immersion 4. Scrum 3. Practical Automation 5. Visual Workflow 4. Smart documentation 6. Kanban for WIP 5. Floor layout to minimize flow 7. Continuous Delivery 6. Reconfigurable layouts 8. Continuous Integration Customer / 1. Visualization Business 2. Solution driven interactions Engagement 1. Adult learning model 3. Usable iterations Model 2. Apprentice-coach model 4. Frequent Cadence 3. Experience Management 5. Product Ownership 4. Lean TSP 6. Retrospectives 5. Knowledge Maps for Domains1.2. OTB Hiring Strategic Staffing to maximize flow Next3.4. Multi-functional Teams Context driven staffing Gen 1. 2. Leader Standardized Work Outcome based metrics5.6. Outcome based org design Co-located Pods Industrialized IT 3. 4. Visual Management System Project Enablement Agile 5. Continuous Improvement 1. Lean PSP Learning 6. Shared pods for 2. SME Office Hours Production Workforce Portfolio/Architecture/Security 3. Reduce Multi-tasking System 4. Pull from WIP Srini Koushik - March 2012
  41. 41. Example • Top 3 Global Insurer • Makes 10 major rate revisions a year would like to make 30 • High level of automation in the AD process • Have used Agile for specific components of these changes • Six Sigma has improved quality • 70% of IT Spend is on MaintenanceHP Confidential Srini Koushik - March 2012
  42. 42. Design Rate State Filing Implementation Rollout Change 2 Weeks 8 Weeks 16 Weeks 4 Weeks14 Resources 4 Onshore, 10 OffshoreElapsed Time 30 WeeksAverage Number of Defects per production – 2 per 1000 lines of CodeImplementation Cost - $780,000 Srini Koushik - March 2012
  43. 43. Example – Applications Enhancements Continuous Integration Product Ownership Content Driven Staffing Lean PSP Visual Management Mentor Apprentice Lean TSP Outcome based metricsSME Office Hours Frequent Cadence Design Rate State Filing Implementation Rollout Change 2 Weeks 8 Weeks 4 Weeks 1 Week 10 Resources 10 Onshore Elapsed Time 14 Weeks Implementation Cost - $340,000 Srini Koushik - March 2012
  44. 44. Why do it? - BenefitsDrive InnovationImprove Speed-to-marketSavings of 25-50%Dramatically improve speed to marketChange the ratio of IT spendBuild Onshore capabilitiesHigher Quality Srini Koushik - March 2012
  45. 45. “Institutions will try to preserve theproblem to which they are the solution” Clay Shirkey Srini Koushik - March 2012
  46. 46. Thank you for yourtimesrinivaskoushik@aol.comTwitter @skoushikLinkedIn http://www.linkedin.com/in/srinikoushik Srini Koushik - March 2012

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