Next Generation IT


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Building the next generation IT organization

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Next Generation IT

  1. 1. Srini Koushik - March 2012Next Generation ITSrini KoushikDecember 2011Changing the role of IT in today’sbusiness
  2. 2. Srini Koushik - March 2012For time and the world do not stand still.Change is the law of life. And those wholook only to the past or the present arecertain to miss the future.John F. Kennedy
  3. 3. Srini Koushik - March 2012Source: Intel CorporationGordon MooreComputing power continues to increase
  4. 4. Srini Koushik - March 2012Connectivity is exploding
  5. 5. Srini Koushik - March 2012Source: get SatisfactionBob MetcalfNetworks continue to grow
  6. 6. Srini Koushik - March 2012Digitization of an analog world
  7. 7. Srini Koushik - March 2012Everyone is connected, Everything is connected– all the time
  8. 8. Srini Koushik - March 2012Change is not a destination, just like Hopeis not a StrategyRudy Giuliani
  9. 9. Srini Koushik - March 2012Globalization of the Marketplace
  10. 10. Srini Koushik - March 2012Consumerization of ITSource Wired Magazine
  11. 11. Srini Koushik - March 2012Social DataVideos Structured Data Voice SensorsImagesMobile dataDemocratization of data
  12. 12. Srini Koushik - March 2012Virtualization of the Value Chain
  13. 13. Srini Koushik - March 2012Videos Structured Data Voice SensorsFundamentally changing the role of IT
  14. 14. Srini Koushik - March 2012Structured DataMobile dataVideos StructuredDataVoice Sensorsglobalizationvirtualizationdemocratizationconsumerization changing role or ITThese trends are changing how we deliver IT . . .
  15. 15. Srini Koushik - March 2012Structured DataMobile dataVideos StructuredDataVoice SensorsThreat of NewEntrantsBargaining Powerof SuppliersThreat ofsubstituteproductsBargaining Powerof BuyersRivalry amongstindustrycompetitorsLower barriers to entry drivesglobal competitionConsolidation of components across valuechain are driving danger of “lock-in”Lack of differentiation and lower switchingcosts results in a buyer’s marketEase of access to data resultsin more informed consumersDriving the need for a different approach to IT . . .
  16. 16. Srini Koushik - March 2012An approach that focuses on the I in ITi n n o v a t e i n t e r a c t i n d u s t r i a l i ze i t e r a t e i m p r o v eContextINFORMATION TECHNOLOGY
  17. 17. Srini Koushik - March 2012You have to learn the rules of the game.And then you have to play it better thananyone else.Albert Einstein
  18. 18. Srini Koushik - March 2012Mass Production Factories
  19. 19. Srini Koushik - March 2012Highly dependent on skilled labor
  20. 20. Srini Koushik - March 2012Model Industrialized by Service Providers
  21. 21. Srini Koushik - March 2012Source–EdmontonSunIf you think you are one in amillion there are 1100 of you inIndia and 1300 of you inChina and 300 in the USScale Matters
  22. 22. Srini Koushik - March 2012Playing the Engineering gameGetting the Numbers Right: International Engineering Education in the United States, China, and India – Gary Geraffi, Vivek Wadhwa et. al – Duke University
  23. 23. Srini Koushik - March 2012IT Economics driven by Labor Arbitrage
  24. 24. Srini Koushik - March 2012“If we try to play like the Yankees in here(board room), we will lose to the Yankeesout there (on the field).”Moneyball, Michael Lewis
  25. 25. Srini Koushik - March 2012It ain’t what you don’t know that gets youinto trouble. It’s what you know for surethat just ain’t soMark Twain
  26. 26. Srini Koushik - March 20121. Poor understanding of Systems2. Focus on the wrong metrics3. Ignoring the impact of queues4. Focus on Efficiency5. Standardization6. Elimination of Variability7. Search for Scale8. Lack of cadence9. Managing to Plans vs. Outcomes10.Centralized ControlAdaptedfromThePrinciplesofProductDevelopment–DonaldG.ReinertsenIT Management Orthodoxies
  27. 27. Srini Koushik - March 2012IT is not InnovativePoor QualityIT is SlowIT is too ExpensiveAll of the above
  28. 28. Srini Koushik - March 2012“When everybody else is playing Checkers –We will start playing Chess”Srini
  29. 29. Srini Koushik - March 2012Defining Value
  30. 30. Srini Koushik - March 2012RelationshipManagementSpecificationsSolutionsDevelopmentServiceSupportStaffing and Supplier ManagementIT Financial ManagementSecurity and Risk ManagementEnterprise ArchitectureCoreActivitiesSupportActivitiesValueAddedActivitiesIT Portfolio ManagementIT Support – Facilities etc.The IT Value Chain
  31. 31. Srini Koushik - March 2012AD&M Value StreamRequirements Design Implementation Verification MaintenanceSecurity and Risk ManagementEnterprise ArchitectureIT Portfolio ManagementStaffing and Supplier ManagementIT Financial ManagementIT Support – Facilities etc.
  32. 32. Srini Koushik - March 2012Infrastructure & Operations Value StreamSecurity and Risk ManagementEnterprise ArchitectureIT Portfolio ManagementStaffing and Supplier ManagementIT Financial ManagementIT Support – Facilities etc.Request Incident Problem Change Release
  33. 33. Srini Koushik - March 2012Create Flow - From Efficiency to Throughput
  34. 34. Srini Koushik - March 2012From Compartmental Thinking to Systems Thinking
  35. 35. Srini Koushik - March 2012Standardization to Mass Customization
  36. 36. Srini Koushik - March 2012Adding Creativity to Engineering
  37. 37. Srini Koushik - March 2012Design Thinking – Convergent to Divergent
  38. 38. Srini Koushik - March 2012Innovation is the set of capabilities that allows the continuousrealization of a desired future by transforming what is possibleinto what is valuable for many - John KaoStrive for Perfection
  39. 39. Srini Koushik - March 2012There are two kinds of people, those who dothe work and those who take the credit. Try tobe in the first group; there is less competitionthereIndira Gandhi
  40. 40. Srini Koushik - March 2012Customer /BusinessEngagementModelIndustrializedProductionSystemNextGenITAgileLearningWorkforce1. Visualization2. TDD3. Paired programming4. Scrum5. Visual Workflow6. Kanban for WIP7. Continuous Delivery8. Continuous Integration1. Visual Workplace2. Product immersion3. Practical Automation4. Smart documentation5. Floor layout to minimize flow6. Reconfigurable layouts1. Adult learning model2. Apprentice-coach model3. Experience Management4. Lean TSP5. Knowledge Maps for Domains1. Leader Standardized Work2. Outcome based metrics3. Visual Management System4. Project Enablement5. Continuous Improvement6. Shared pods forPortfolio/Architecture/Security1. OTB Hiring2. Strategic Staffing to maximize flow3. Multi-functional Teams4. Context driven staffing5. Outcome based org design6. Co-located Pods1. Lean PSP2. SME Office Hours3. Reduce Multi-tasking4. Pull from WIP1. Visualization2. Solution driven interactions3. Usable iterations4. Frequent Cadence5. Product Ownership6. Retrospectives
  41. 41. Srini Koushik - March 2012HP ConfidentialExample• 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 Maintenance
  42. 42. Srini Koushik - March 2012Design RateChangeState Filing Implementation Rollout2 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
  43. 43. Srini Koushik - March 2012Example – Applications EnhancementsDesign RateChangeState Filing Implementation Rollout2 Weeks 8 Weeks 4 Weeks 1 Week10 Resources 10 Onshore Elapsed Time 14 Weeks Implementation Cost - $340,000Product OwnershipVisual ManagementContent Driven StaffingOutcome based metricsSME Office HoursMentor ApprenticeFrequent CadenceContinuous IntegrationLean PSPLean TSP
  44. 44. Srini Koushik - March 2012Drive InnovationImprove Speed-to-marketSavings of 25-50%Dramatically improve speed to marketChange the ratio of IT spendBuild Onshore capabilitiesHigher QualityWhy do it? - Benefits
  45. 45. Srini Koushik - March 2012“Institutions will try to preserve theproblem to which they are the solution”Clay Shirkey
  46. 46. Srini Koushik - March 2012Thank you for yourtimesrinivaskoushik@aol.comTwitter @skoushikLinkedIn