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Yves Caseau 
Head of AXA Digital Agency 
NATF (National Academy of Technologies of France) 
Yves Caseau - Digital Age Information Systems – November 2014 1/24
OOuuttlliinnee 
1. Digital Revolution 
When companies need to evolve 
together with their customers 
2. Information Systems Revolution 
Master the new set of tools 
3. Software Factories 
Build the capability to constantly evolve 
your software assets 
Software 
Strategy 
Markets are 
Conversations 
Customer 
Empowerment 
Intention 
Economy 
Increasing 
Complexity 
Continuous 
Change 
Digital Innovation 
MMeeaassuurree 
OObbsseessssiioonn 
The Map 
The Compass 
The Target 
Yves Caseau - Digital Age Information Systems – November 2014 2/24
Part One : DDiiggiittaall RReevvoolluuttiioonn 
Software 
Strategy 
Markets are 
Conversations 
Customer 
Empowerment 
Intention 
Economy 
Increasing 
Complexity 
Continuous 
Change 
Digital Innovation 
MMeeaassuurree 
OObbsseessssiioonn 
The Map 
Yves Caseau - Digital Age Information Systems – November 2014 3/24
Complexity and Continuous Change rreeqquuiirree AAggiilliittyy 
Increasing complexity of 21st century prevents 
forecasting 
The central role of the user in the digital world 
adds to the complexity brought by technological 
change 
Agility means constant and fast re-adjustment 
towards the environment 
Yves Caseau - Digital Age Information Systems – November 2014 4/24
Our Customer Is The Architect of HHeerr OOwwnn EExxppeerriieennccee 
Digital experiences are “mash-up” of contents, products 
and services from different sources 
Digital customer-centricity implies to relinquish control 
The ultimate form of personalization is not smart 
analytics, it is customer empowerment 
Making the customer the architect has a profound impact 
on information systems 
Yves Caseau - Digital Age Information Systems – November 2014 5/24
Markets Are Conversations –– CCoommee PPrreeppaarreedd !! 
In the world of content abundance, to grab attention you 
must listen 
« Conversations cannot be controlled. 
They can only be joined » - R. Rothemberg 
Sharing a conversation with the customer requires a 
content strategy 
Conversations thrive on communities 
Yves Caseau - Digital Age Information Systems – November 2014 6/24
The Relentless Pursuit ooff DDiiggiittaall IInnnnoovvaattiioonn 
Innovation is solving a pain point together with the 
customer 
Minimum Viable Product : How to collect feedback as 
early as possible, but not earlier  
Innovation is grown, not designed – It is not the idea that 
matters, it is the doing ! 
Yves Caseau - Digital Age Information Systems – November 2014 7/24
No Digital Leader Without aa SSooffttwwaarree SSttrraatteeggyy 
“Software is eating the world” – M. Andreesen 
Your software sourcing & crafting strategy says which 
ecosystems you will be part of 
Agility (both speed and flexibility) is determined by your software strategy 
Yves Caseau - Digital Age Information Systems – November 2014 8/24
Pulling Opportunities from CCuussttoommeerr IInnttiimmaaccyy 
Getting to know your customers without bothering them 
« Relations lead to Conversations, 
Conversations lead to Transactions » - D. Searls 
Learn from your customers’ digital traces 
Customers will not elect to let you listen if you have 
nothing to say 
Yves Caseau - Digital Age Information Systems – November 2014 9/24
Part Two : Information SSyysstteemmss RReevvoolluuttiioonn 
The Compass 
Yves Caseau - Digital Age Information Systems – November 2014 10/24
The New Way of Working ooff WWeebb’’ss GGiiaannttss 
“Measure Obsession” 
The most precious currency in the digital world is the 
customer’s time 
Build versus Buy 
Lean Startup and Devops 
Yves Caseau - Digital Age Information Systems – November 2014 11/24
Platforms Attract Value aanndd SSaattiissffyy CCuussttoommeerrss 
Need for more and more software, at cheaper 
prices 
The need for constant innovation implies open 
innovation 
The platform game is “give and take” 
Yves Caseau - Digital Age Information Systems – November 2014 12/24
Enroll Ecosystems to DDeevveelloopp YYoouurr SSooffttwwaarree 
Mobile First, Cloud First 
Commodity Hardware and Open OS 
Open APIs and Open Source 
Yves Caseau - Digital Age Information Systems – November 2014 13/24
Smartphone Revolution is MMoorree tthhaann MMoobbiillee WWeebb 
The smartphone is the remote control of our 
connected life 
Mobile experience has its own codes 
The smartphone is an amazing platform: 
computing, video, sensors, recognition, etc. 
Yves Caseau - Digital Age Information Systems – November 2014 14/24
A New Toolbox : Programming HHaass CChhaannggeedd !! 
Test: do you write code ? do you Google it ? 
Welcome to massively distributed programming 
(e.g., Map Reduce) 
Systems programming, no longer computers 
Advanced AI and machine learning algorithms are 
available as open source libraries 
Yves Caseau - Digital Age Information Systems – November 2014 15/24
« Data is the New Code » : BBiigg DDaattaa DDiissrruuppttiioonnss 
Cost and technology disruption 
“Data is becoming at heart of Computer Science”. 
T. Hoffman 
A new way of programming : data-oriented, sub-linear, 
machine-learning grown 
Each Web Giant is investing massively to be ahead of 
its Big Data game 
Yves Caseau - Digital Age Information Systems – November 2014 16/24
Part Three :: SSooffttwwaarree FFaaccttoorriieess 
The Target 
Yves Caseau - Digital Age Information Systems – November 2014 17/24
Constantly Changing Software RReeqquuiirreess NNeeww MMeetthhooddss 
Source code becomes more important 
(shown, shared and modified) 
Since building is a constant task, the process 
becomes more important than the result 
The heart of the game is to constantly learn new 
skills 
Yves Caseau - Digital Age Information Systems – November 2014 18/24
Software Factories : Focus on Building && AAuuttoommaattiioonn 
Continuous build, integration and delivery 
A process that is run continuously must be 
automated 
DevOps : manage Infrastructure a code and lean 
cross-function collaboration 
Yves Caseau - Digital Age Information Systems – November 2014 19/24
Homeostasis Requires OOppeenn SSoouurrccee PPrraaccttiiccee 
White-box integration with source code 
There is a treasure trove of value in the existing 
open source communities 
Open Source is not free : 
it is a collaborative game of “give & take” 
Yves Caseau - Digital Age Information Systems – November 2014 20/24
The Toyota Way of CCoonnttiinnuuoouuss DDeelliivveerryy 
Small autonomous and cross-functional teams 
Synchronized work and standup meetings 
Pull, Kanban and visual management 
Yves Caseau - Digital Age Information Systems – November 2014 21/24
Love your Code and Value yyoouurr SSooffttwwaarree TTeeaammss 
Code reviews and pair programming 
Coding standards, discipline and pride 
Incremental development produces junk. 
Constant refactoring is mandatory (tending the garden) 
Value your teams : let them learn  
Yves Caseau - Digital Age Information Systems – November 2014 22/24
API : An Organic System is Defined bbyy IIttss MMeemmbbrraannee 
This is a service architecture game : 
modularity, event-oriented architecture, data exposition 
Think like a software editor : 
upward compatibility, “composability” (ability to use in 
composite applications), standardization 
Test your APIs and grow your ecosystems with 
hackathons 
Yves Caseau - Digital Age Information Systems – November 2014 23/24
CCoonncclluussiioonn 
Digital revolution is only beginning ! 
 One must learn to co-create experiences with their customers 
 Barbarians at our doors: paradigm shifts in production tools 
 Technology’s evolution pace will intensify: machine learning and 
forecasting, AI, semantic processing & pattern recognition. 
Adopt tools and methods from « the Web Giants » (GAFA) 
 Agile & lean software development 
 Lean Startup & measure 
 Big Data, Web programming, Commodity computing 
Software Factories to assemble open source into experiences 
 Because of constant change, your software changes constantly 
 Skilled teams & Customer-centric continuous build 
 “Love your code” culture 
Yves Caseau - Digital Age Information Systems – November 2014 24/24

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The European CIO Conference - November 27th, 2014

  • 1. Yves Caseau Head of AXA Digital Agency NATF (National Academy of Technologies of France) Yves Caseau - Digital Age Information Systems – November 2014 1/24
  • 2. OOuuttlliinnee 1. Digital Revolution When companies need to evolve together with their customers 2. Information Systems Revolution Master the new set of tools 3. Software Factories Build the capability to constantly evolve your software assets Software Strategy Markets are Conversations Customer Empowerment Intention Economy Increasing Complexity Continuous Change Digital Innovation MMeeaassuurree OObbsseessssiioonn The Map The Compass The Target Yves Caseau - Digital Age Information Systems – November 2014 2/24
  • 3. Part One : DDiiggiittaall RReevvoolluuttiioonn Software Strategy Markets are Conversations Customer Empowerment Intention Economy Increasing Complexity Continuous Change Digital Innovation MMeeaassuurree OObbsseessssiioonn The Map Yves Caseau - Digital Age Information Systems – November 2014 3/24
  • 4. Complexity and Continuous Change rreeqquuiirree AAggiilliittyy Increasing complexity of 21st century prevents forecasting The central role of the user in the digital world adds to the complexity brought by technological change Agility means constant and fast re-adjustment towards the environment Yves Caseau - Digital Age Information Systems – November 2014 4/24
  • 5. Our Customer Is The Architect of HHeerr OOwwnn EExxppeerriieennccee Digital experiences are “mash-up” of contents, products and services from different sources Digital customer-centricity implies to relinquish control The ultimate form of personalization is not smart analytics, it is customer empowerment Making the customer the architect has a profound impact on information systems Yves Caseau - Digital Age Information Systems – November 2014 5/24
  • 6. Markets Are Conversations –– CCoommee PPrreeppaarreedd !! In the world of content abundance, to grab attention you must listen « Conversations cannot be controlled. They can only be joined » - R. Rothemberg Sharing a conversation with the customer requires a content strategy Conversations thrive on communities Yves Caseau - Digital Age Information Systems – November 2014 6/24
  • 7. The Relentless Pursuit ooff DDiiggiittaall IInnnnoovvaattiioonn Innovation is solving a pain point together with the customer Minimum Viable Product : How to collect feedback as early as possible, but not earlier  Innovation is grown, not designed – It is not the idea that matters, it is the doing ! Yves Caseau - Digital Age Information Systems – November 2014 7/24
  • 8. No Digital Leader Without aa SSooffttwwaarree SSttrraatteeggyy “Software is eating the world” – M. Andreesen Your software sourcing & crafting strategy says which ecosystems you will be part of Agility (both speed and flexibility) is determined by your software strategy Yves Caseau - Digital Age Information Systems – November 2014 8/24
  • 9. Pulling Opportunities from CCuussttoommeerr IInnttiimmaaccyy Getting to know your customers without bothering them « Relations lead to Conversations, Conversations lead to Transactions » - D. Searls Learn from your customers’ digital traces Customers will not elect to let you listen if you have nothing to say Yves Caseau - Digital Age Information Systems – November 2014 9/24
  • 10. Part Two : Information SSyysstteemmss RReevvoolluuttiioonn The Compass Yves Caseau - Digital Age Information Systems – November 2014 10/24
  • 11. The New Way of Working ooff WWeebb’’ss GGiiaannttss “Measure Obsession” The most precious currency in the digital world is the customer’s time Build versus Buy Lean Startup and Devops Yves Caseau - Digital Age Information Systems – November 2014 11/24
  • 12. Platforms Attract Value aanndd SSaattiissffyy CCuussttoommeerrss Need for more and more software, at cheaper prices The need for constant innovation implies open innovation The platform game is “give and take” Yves Caseau - Digital Age Information Systems – November 2014 12/24
  • 13. Enroll Ecosystems to DDeevveelloopp YYoouurr SSooffttwwaarree Mobile First, Cloud First Commodity Hardware and Open OS Open APIs and Open Source Yves Caseau - Digital Age Information Systems – November 2014 13/24
  • 14. Smartphone Revolution is MMoorree tthhaann MMoobbiillee WWeebb The smartphone is the remote control of our connected life Mobile experience has its own codes The smartphone is an amazing platform: computing, video, sensors, recognition, etc. Yves Caseau - Digital Age Information Systems – November 2014 14/24
  • 15. A New Toolbox : Programming HHaass CChhaannggeedd !! Test: do you write code ? do you Google it ? Welcome to massively distributed programming (e.g., Map Reduce) Systems programming, no longer computers Advanced AI and machine learning algorithms are available as open source libraries Yves Caseau - Digital Age Information Systems – November 2014 15/24
  • 16. « Data is the New Code » : BBiigg DDaattaa DDiissrruuppttiioonnss Cost and technology disruption “Data is becoming at heart of Computer Science”. T. Hoffman A new way of programming : data-oriented, sub-linear, machine-learning grown Each Web Giant is investing massively to be ahead of its Big Data game Yves Caseau - Digital Age Information Systems – November 2014 16/24
  • 17. Part Three :: SSooffttwwaarree FFaaccttoorriieess The Target Yves Caseau - Digital Age Information Systems – November 2014 17/24
  • 18. Constantly Changing Software RReeqquuiirreess NNeeww MMeetthhooddss Source code becomes more important (shown, shared and modified) Since building is a constant task, the process becomes more important than the result The heart of the game is to constantly learn new skills Yves Caseau - Digital Age Information Systems – November 2014 18/24
  • 19. Software Factories : Focus on Building && AAuuttoommaattiioonn Continuous build, integration and delivery A process that is run continuously must be automated DevOps : manage Infrastructure a code and lean cross-function collaboration Yves Caseau - Digital Age Information Systems – November 2014 19/24
  • 20. Homeostasis Requires OOppeenn SSoouurrccee PPrraaccttiiccee White-box integration with source code There is a treasure trove of value in the existing open source communities Open Source is not free : it is a collaborative game of “give & take” Yves Caseau - Digital Age Information Systems – November 2014 20/24
  • 21. The Toyota Way of CCoonnttiinnuuoouuss DDeelliivveerryy Small autonomous and cross-functional teams Synchronized work and standup meetings Pull, Kanban and visual management Yves Caseau - Digital Age Information Systems – November 2014 21/24
  • 22. Love your Code and Value yyoouurr SSooffttwwaarree TTeeaammss Code reviews and pair programming Coding standards, discipline and pride Incremental development produces junk. Constant refactoring is mandatory (tending the garden) Value your teams : let them learn  Yves Caseau - Digital Age Information Systems – November 2014 22/24
  • 23. API : An Organic System is Defined bbyy IIttss MMeemmbbrraannee This is a service architecture game : modularity, event-oriented architecture, data exposition Think like a software editor : upward compatibility, “composability” (ability to use in composite applications), standardization Test your APIs and grow your ecosystems with hackathons Yves Caseau - Digital Age Information Systems – November 2014 23/24
  • 24. CCoonncclluussiioonn Digital revolution is only beginning !  One must learn to co-create experiences with their customers  Barbarians at our doors: paradigm shifts in production tools  Technology’s evolution pace will intensify: machine learning and forecasting, AI, semantic processing & pattern recognition. Adopt tools and methods from « the Web Giants » (GAFA)  Agile & lean software development  Lean Startup & measure  Big Data, Web programming, Commodity computing Software Factories to assemble open source into experiences  Because of constant change, your software changes constantly  Skilled teams & Customer-centric continuous build  “Love your code” culture Yves Caseau - Digital Age Information Systems – November 2014 24/24

Editor's Notes

  1. Complexity: key challenge for management + key challenge for CIO
  2. Agility is a business attitude – this is what we learned from Spotify at Bouygues Telecom IT Agility feeds on Business Agility
  3. (1) Think of preparing a vacation
  4. Conversations are two-ways exchange of information Cf the Attention Economy by Thomas Davenport. To capture attention, you must listenCf. the segment of one Randall Rothemberg, quoted by Don Peppers in Extreme Trust Lots of ways to bring value : information, free service You need to embrace the right and the desire of you consumers to participate to communities
  5. Software defines the customer experience Marc Andreesen: More and more major businesses and industries are being run on software and delivered as online services—from movies to agriculture to national defense. Many of the winners are Silicon Valley-style entrepreneurial technology companies that are invading and overturning established industry structures. Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not. http://genius.com/Marc-andreessen-why-software-is-eating-the-world-annotated (2) Software defines your innovation strategy Software strategy defines your cost structure (3) Because of constant change, your software base must change constantly ! This is the topic of the talk in a nutshell
  6. The intention economy is about knowing your customer’s intention Example of the grocery list, provided as a free service – Take real interest into your customers and their pain points The first step of relation is trust ! Future is VRM, but the intention is already there in the digital space Contents & listen – in that order : customers will not elect to let you listen if you have nothing to say.Social Networks is not a digital strategy, they are a tool
  7. Everything gets measure – from performance to usability – Technical back-office indicators as well as engagement front-office A/B testing, eyeball tracking and web analytics Fact-based decisions Focust on the speed and fluidity of customer experience A new culture that builds its software - This the GAFA Software strategy We talked about Lean Startup - Eric Ries is a hero at Google we shall talk about devops in the slides to come, Facebook being a good example of this strong collaboration between development and operations.
  8. Platform is buzzword of the decade – Makes perfect sense : only way to attract value (there are more smart minds outside the company than inside) What is more and more true: right way to satisfy the customer because she is the architect of her own experience Direct consequence of part 1: we need to churn more and more SW, whole life duration is shorter and shorter – we have a problem Open innovation was always a good idea, it is now a requirement because of the rate of change You need to think as a platform but yon need to use other platform as well.The Telco world of the last decade is full of failed platform initiatives
  9. A Software ecosystem is a platform strategy that has succeeded Let other developers develop your mobile applications – Leverage the wealth of cloud services Your software cost structure is eventually a key driver for your economic survival – learn from the best and leverage the cheapest solutions Invite yourself into open source communities though APIs – another give & take game
  10. “Mobile Revolution” … Is not “using your smartphone for performing digitized version of the insurance life-cycle processes” (must-do) The mobile is the heart of a digital system that changes both your life and what it means to protect it Cloud of web services, connected objects, smart touch devices, sensors, etc This asks the question of what is my new business in this new digitally-extended life, as opposed to how to make my current business fit on a mobile device Usability is critical – save time and effort – use measures & continuous improvement Obvious : computing power of a cray – stunning screens and touch interface – video capabilitiesAlso : ever-increasing collection of sensors (6 to 10 in today’s iPhone or Samsungs), ever increasing capabilities of recogniotion (image / voice / gesture)
  11. Anecdote : Book that I bought in a convenience store on a tiny village of North Iceland Although I have taught computing and computer science at university level and run software projects for 30 years, I know only half because I am a dinosaur  This is the power of community, this is why you need to hire young developers Another reason to hire new developers – Von Neuman dinosaurs such as myself need to team up with distributed mindset From specialty hardware to distributed systems : grid, cloud, etc. – It great to talk about Internet of things, it’s better to learn to program it You do not need Computer Science PhDs to prepare the future, but you need a new open, curious and collaborative mindset
  12. I will not give you the usual speech about the capability of Big Data to create new service opportunities or to bring your customer analytics to a new level. All of this is true, there are many great books or testimonies about it. I want to talk about Big Data versus our existing information systems – Big Data is a cost and technology disruption – You can store almost anything at a constantly lowering price you can run massively distributed algorithms with low efforts and low costs What are the new frontiers of computer science : semantics & natural language processing, image recognition, autonomous robots. In all these fields, advances are made by running simple algorithms on huge amounts of data (3) This “new way of programming”, centered on data, may be characterized in three ways: Massively parallel programming because of the distribution of very large amount of data. The data distribution architecture becomes the software architecture because, as the volume grows, it becomes important to avoid “moving data”. Sub-linear algorithms (whose compute time grows slower than the amount of data that they process) play a key role. We heard many great examples about the importance of such algorithms, such as the use of Hyperloglog counters in the computation of Facebook social graph diameter. Algorithms need to be adaptive and tuned incrementally from their data. Hence machine learning becomes a key skill when one works on a very large amount of data. (4) cf. “Barbarian Attack” by Nicolas Colin – a series of great talk showing the disruption of this new way of working.
  13. This new digital world is a world when software changes constantly Google estimate that each software module is modified once a month The dream of doing all changes for meta-data parametrization has failed . Black-box components This is a major change from 10 years ago and from the system engineering culture. You do not build such an ever-changing system with the same tools and top-down methods that we learned to 20 years ago.These methods adapts to their constantly changing environment – the software factory is a training academy
  14. The factory metaphor is useful to capture the need for automation, configuration management and rigorous synchronized execution It balances the wrong perception that agile means free spirits without constraints  (1) test-driven development + run all tests as early as possible + support learn startup principles (show me) Automated build from detailed configuration management lots of techniques and open-source software available  Lots of great experiences available on libe from Facebook, Netlix, Spotify
  15. This is the white box metaphor : what has changed is that the black box component approach does not work any longer Need for many eyeballs Need to change the code at the source level Leveraging the power of open source communities has changed from an interesting option into a must do Changes are so deep they happen at source code level – both in the pieces or at the glue levelYou need to assemble pieces which are built with the same features (recursive nature) The Web Giant know this and they play the game heavily high quality and great support communitybecause good software is built incrementally through feedback (3) collaborative price - requires culture change Since adoption is proportional to genericity, using open source software is a “connected art”.
  16. Common to DevOps, Lean Startup and Octo : the influence of lean (Toyota Way) Small team, small batches, incremental work Synchronized : work on the same tempo Kanban is a visual tool to help the team work at a common pace (pull versus pull)Visual management has many other use to help the team to work and learn together
  17. Hackathon image : a good symbol of a culture that values code and developers OCTO reports that this is a common trait of GAFA My proposal to you is that it is a mandatory consequence of the digital world challenge Code that changes constantly needs to be reviewed Code reviews can only be efficient if they are fun – requires both discipline and pride. Producing poorly structured and unorganized code is a natural consequence of incremental cycles. “Pull architecture” helps (architect to help developers) but this is not enough – refactoring
  18. I could have chosen an illustration from cellular biology but those plugs make it more practical If you subscribe to the systemic view of a company that is defined by its interaction with various software and service ecosystems, then the API (interfaces) are the most critical decisions (1) (a) The API strategy is the new name for SOA, but at a different scale with a different focus (outbound) (b) Data is the new oil => data architecture (Importance of REST API : shared data becomes integration glue because this is simple and highly scalable) (2) Composite application is the buzzword of the moment : source code integration (as an app) of services that are exposed through APIs. They are hot because this method of delivery new services is efficient and agile Playing the game requies an API strategy (3) Bytel OpenBox experiments Hackathon bring value on multiple level : internal culture (cf. previous slide), systemic (open-source testing & improvement), open innovation (detect talents and potential partners)