This document discusses how organizations can remain successful in the age of digital disruption. It argues that traditional organizations must adopt the practices of startups and digital natives in order to compete, specifically through management innovation, Lean Startup methodology, and DevOps. These approaches emphasize speed, customer obsession, engaged staff, removal of bureaucracy, and self-organizing teams. The document also examines the concept of the "digital enterprise" and outlines a process for organizations to transform into one. While promising a path to success, it notes these approaches require a clear digital vision and cultural changes within the organization to be effective.
TechnoVision 2014: Technology Building Blocks for Digital TransformationCapgemini
Our TechnoVision 2014 introduces a fresh, provocative and innovative approach to today's business technology landscape. Here's a platform business and technology leaders can use to create a new, different dialogue on how these disruptions will affect the near- and long-term business environment, and how you can leverage them to exploit market opportunities for sustainable competitive advantage. TechnoVision 2014 is a strategic asset that can help drive Digital Transformation across your entire enterprise.
http://www.capgemini.com/technovision
Digital Leadership Interview : Pablo Rodriguez, Director of Innovation at Tel...Capgemini
"I believe that opening up innovation, working
more with partners, and being agile enough to include everybody’s contribution represents a big shift in innovation in this digital age."
It is the age of the digital customer. And digital customer experience is something that most companies have on top of their agenda. It is not hard to see why. In a survey, 70% of respondents said that good service had a considerable influence on their loyalty and 69% would recommend the company to others. The reverse is also true. Poor customer experience drives customers away. Research shows that nearly 89% of customers walk away from a company after a single poor customer experience. And this can have a significant impact. Businesses are estimated to lose as much as 20% of revenue from poor customer experiences. And this is precisely the reason we chose to focus the sixth edition of our Digital Transformation Review on Customer Experience. How can organizations create compelling digital customer experiences that work? We posed this very question to a diverse panel from around the world. Our panel for this edition includes industry leaders, academics, startup founders, platform vendors and technology gurus. They come from all over the world, including the home of innovation in the digital age — Silicon Valley
TechnoVision 2014: Technology Building Blocks for Digital TransformationCapgemini
Our TechnoVision 2014 introduces a fresh, provocative and innovative approach to today's business technology landscape. Here's a platform business and technology leaders can use to create a new, different dialogue on how these disruptions will affect the near- and long-term business environment, and how you can leverage them to exploit market opportunities for sustainable competitive advantage. TechnoVision 2014 is a strategic asset that can help drive Digital Transformation across your entire enterprise.
http://www.capgemini.com/technovision
Digital Leadership Interview : Pablo Rodriguez, Director of Innovation at Tel...Capgemini
"I believe that opening up innovation, working
more with partners, and being agile enough to include everybody’s contribution represents a big shift in innovation in this digital age."
It is the age of the digital customer. And digital customer experience is something that most companies have on top of their agenda. It is not hard to see why. In a survey, 70% of respondents said that good service had a considerable influence on their loyalty and 69% would recommend the company to others. The reverse is also true. Poor customer experience drives customers away. Research shows that nearly 89% of customers walk away from a company after a single poor customer experience. And this can have a significant impact. Businesses are estimated to lose as much as 20% of revenue from poor customer experiences. And this is precisely the reason we chose to focus the sixth edition of our Digital Transformation Review on Customer Experience. How can organizations create compelling digital customer experiences that work? We posed this very question to a diverse panel from around the world. Our panel for this edition includes industry leaders, academics, startup founders, platform vendors and technology gurus. They come from all over the world, including the home of innovation in the digital age — Silicon Valley
Going Digital: General Electric and its Digital TransformationCapgemini
How can a company that is over a century old transform itself to thrive in a digital economy?
For GE, responding to change is part of its modus operandi. This is a company that has famously made change a core capability and a constant in its history. For over 120 years, GE has ploughed forward under a banner of “Building, powering, moving and curing the world. Not just imagining. Doing.” This constant focus on innovation and transformation has made the company the only one to still remain in the Dow Jones Industrial Index since the original index was established in 1896.
GE is betting big on software and analytics to bring about its transformation, with Jeff Immelt stating: “I took over an industrial company, now it will be known as an analytics company”. GE’s focus on data analytics was clear back in 2012 when it set aside up to $1.5 billion for small take-overs to boost its presence in analytics. GE currently monitors and analyzes 50 million data elements from 10 million sensors on $1 trillion of managed assets daily to move customers toward zero unplanned downtime.
GE’s digital transformation is not the result of being in the right place at the right time. Instead, it is the result of a structured approach that involved a strong top-down digital vision, capability development, achieving all-round buy-in and a constant focus on innovation.
While many digital natives, from FaceBook to Uber, continue to take much of the limelight, this 120-year-old giant of the corporate world shows that digital agility is not just confined to the new Millennial corporates.
Digital Disruption in Asset and Wealth ManagementCapgemini
The groundswell that is today impacting massively retail banking is now impacting all banking businesses. Opportunities offered by new digital technology such as Big data & analytics have not been fully explored yet by Asset & Wealth Management actors, and new technologies are mainly confined to improve shared platforms and reporting flexibility. But the turn might come soon now with the aggressive launches of Fintechs investing all parts of the banking business, including its most exclusive territories.
Asset and Wealth Management might be the next targets, facing the up-rise of new Robo-Advisors quickly gaining market
share on their devoted playground until now.
Traditional Asset and Wealth Managers should anticipate and react, building on their knowledge and assets in order to contain this new trend but this will require that they adapt and probably more globally rethink their business model, to avoid the commoditization of their activity.
The aim of this document is to present how Asset and Wealth Managers can take advantage of the digital revolution / emergence of Fintechs to become more competitive and attract more clients.
While many leading companies have the building blocks in place to participate in and leverage social media, many are pausing and asking deeper questions around how they can best evolve and transform their technology systems and operating processes in order to maximize the benefits social media offers.
When Digital Disruption Strikes: How Can Incumbents Respond?Capgemini
Digital innovation is shaking the core of every industry and incumbents are struggling to respond. The emergence of startups such as Uber – which disrupt entire sectors with their agile, innovative business models – is worrying traditional incumbents. Venture funding to startups is at historic highs. In just one startup hotspot, Silicon Valley, venture capital investment in the first three quarters of 2014 was around $17 billion, a figure that is only surpassed by the peak of the dotcom era in 2000. In recent research by GE, two-thirds of respondents agreed that businesses have to encourage creative behaviors and must disrupt their internal processes in order to do so. What does a successful strategy for responding to disruption look like? How fast have companies responded to digital disruptions? To understand more about how traditional incumbents respond to digital disruption, we conducted research spanning 100+ companies.
Digital Leadership Interview : Claus Von Riegen, VP and Head of BMI at SAPCapgemini
"Disrupt yourself before being disrupted by others. But to make this happen, you have to create a separate team with the explicit mandate to disrupt the business and make it a priority."
In prior research, we showcased how digital leaders are using investments in digital technologies to transform key capabilities across customer experience and operations. However, in today’s volatile and disrupted world, capability leadership is not enough. As well as having the capabilities in place, organizations need to be nimble and flexible – dexterous – if they are to respond to ever-changing technology advances, emerging competitive disruptions, and changing customer needs. Enterprises that excel in both qualities – capability and dexterity – are digital organizations. This ‘digital elite’ reported that they outperformed their competitors on multiple key performance indicators including profitability, customer satisfaction, innovativeness and growth.
Developing and managing a multi-channel approach has been
a key issue in retail banking.
But what about Corporate & Investment Banks (CIBs)? Where do they stand in terms of multichannel for corporate clients?
Especially, what are the trends and opportunities in digital channels for them and what are the implications?
Catering to 'Generation Now': Making Digital Connections Intelligent, Persona...Cognizant
Our recent research uncovers the digital media preferences among the younger cohort - Generation Z and millennials - concerning connectivity, content and commerce.
#DTR8: The New Innovation Paradigm for the Digital Age: Faster, Cheaper and O...Capgemini
In this edition of the Digital Transformation Review, we examine how organizations can create sustainable and successful innovation strategy, drawing on our global panel of industry executives and academics.
We focus on four key themes:
Which digital innovations should be on organizations' radar screens?
How should companies promote innovation and embed it into their culture?
What lessons can we draw from organizations that are stand-out innovators?
What is the role and impact of innovation centers, including the Capgemini Consulting-Altimeter Group report, "The Innovation Game: Why and How Businesses are Investing in Innovation Centers".
Digital Transformation Drives 2021 IT Investmentsrun_frictionless
Digital transformation efforts continue to dominate the technology landscape as more IT leaders recognize the need to update hardware and software infrastructure to accelerate strategic products and services for the business. SoftwareTrends conducted a survey of some 1,020 IT executives, directors, and managers between August and November 2020 to better understand the current state of digital transformation efforts across companies of all sizes—and forecast the technology investment plans for 2021.
https://runfrictionless.com/b2b-white-paper-service/
Going Digital: General Electric and its Digital TransformationCapgemini
How can a company that is over a century old transform itself to thrive in a digital economy?
For GE, responding to change is part of its modus operandi. This is a company that has famously made change a core capability and a constant in its history. For over 120 years, GE has ploughed forward under a banner of “Building, powering, moving and curing the world. Not just imagining. Doing.” This constant focus on innovation and transformation has made the company the only one to still remain in the Dow Jones Industrial Index since the original index was established in 1896.
GE is betting big on software and analytics to bring about its transformation, with Jeff Immelt stating: “I took over an industrial company, now it will be known as an analytics company”. GE’s focus on data analytics was clear back in 2012 when it set aside up to $1.5 billion for small take-overs to boost its presence in analytics. GE currently monitors and analyzes 50 million data elements from 10 million sensors on $1 trillion of managed assets daily to move customers toward zero unplanned downtime.
GE’s digital transformation is not the result of being in the right place at the right time. Instead, it is the result of a structured approach that involved a strong top-down digital vision, capability development, achieving all-round buy-in and a constant focus on innovation.
While many digital natives, from FaceBook to Uber, continue to take much of the limelight, this 120-year-old giant of the corporate world shows that digital agility is not just confined to the new Millennial corporates.
Digital Disruption in Asset and Wealth ManagementCapgemini
The groundswell that is today impacting massively retail banking is now impacting all banking businesses. Opportunities offered by new digital technology such as Big data & analytics have not been fully explored yet by Asset & Wealth Management actors, and new technologies are mainly confined to improve shared platforms and reporting flexibility. But the turn might come soon now with the aggressive launches of Fintechs investing all parts of the banking business, including its most exclusive territories.
Asset and Wealth Management might be the next targets, facing the up-rise of new Robo-Advisors quickly gaining market
share on their devoted playground until now.
Traditional Asset and Wealth Managers should anticipate and react, building on their knowledge and assets in order to contain this new trend but this will require that they adapt and probably more globally rethink their business model, to avoid the commoditization of their activity.
The aim of this document is to present how Asset and Wealth Managers can take advantage of the digital revolution / emergence of Fintechs to become more competitive and attract more clients.
While many leading companies have the building blocks in place to participate in and leverage social media, many are pausing and asking deeper questions around how they can best evolve and transform their technology systems and operating processes in order to maximize the benefits social media offers.
When Digital Disruption Strikes: How Can Incumbents Respond?Capgemini
Digital innovation is shaking the core of every industry and incumbents are struggling to respond. The emergence of startups such as Uber – which disrupt entire sectors with their agile, innovative business models – is worrying traditional incumbents. Venture funding to startups is at historic highs. In just one startup hotspot, Silicon Valley, venture capital investment in the first three quarters of 2014 was around $17 billion, a figure that is only surpassed by the peak of the dotcom era in 2000. In recent research by GE, two-thirds of respondents agreed that businesses have to encourage creative behaviors and must disrupt their internal processes in order to do so. What does a successful strategy for responding to disruption look like? How fast have companies responded to digital disruptions? To understand more about how traditional incumbents respond to digital disruption, we conducted research spanning 100+ companies.
Digital Leadership Interview : Claus Von Riegen, VP and Head of BMI at SAPCapgemini
"Disrupt yourself before being disrupted by others. But to make this happen, you have to create a separate team with the explicit mandate to disrupt the business and make it a priority."
In prior research, we showcased how digital leaders are using investments in digital technologies to transform key capabilities across customer experience and operations. However, in today’s volatile and disrupted world, capability leadership is not enough. As well as having the capabilities in place, organizations need to be nimble and flexible – dexterous – if they are to respond to ever-changing technology advances, emerging competitive disruptions, and changing customer needs. Enterprises that excel in both qualities – capability and dexterity – are digital organizations. This ‘digital elite’ reported that they outperformed their competitors on multiple key performance indicators including profitability, customer satisfaction, innovativeness and growth.
Developing and managing a multi-channel approach has been
a key issue in retail banking.
But what about Corporate & Investment Banks (CIBs)? Where do they stand in terms of multichannel for corporate clients?
Especially, what are the trends and opportunities in digital channels for them and what are the implications?
Catering to 'Generation Now': Making Digital Connections Intelligent, Persona...Cognizant
Our recent research uncovers the digital media preferences among the younger cohort - Generation Z and millennials - concerning connectivity, content and commerce.
#DTR8: The New Innovation Paradigm for the Digital Age: Faster, Cheaper and O...Capgemini
In this edition of the Digital Transformation Review, we examine how organizations can create sustainable and successful innovation strategy, drawing on our global panel of industry executives and academics.
We focus on four key themes:
Which digital innovations should be on organizations' radar screens?
How should companies promote innovation and embed it into their culture?
What lessons can we draw from organizations that are stand-out innovators?
What is the role and impact of innovation centers, including the Capgemini Consulting-Altimeter Group report, "The Innovation Game: Why and How Businesses are Investing in Innovation Centers".
Digital Transformation Drives 2021 IT Investmentsrun_frictionless
Digital transformation efforts continue to dominate the technology landscape as more IT leaders recognize the need to update hardware and software infrastructure to accelerate strategic products and services for the business. SoftwareTrends conducted a survey of some 1,020 IT executives, directors, and managers between August and November 2020 to better understand the current state of digital transformation efforts across companies of all sizes—and forecast the technology investment plans for 2021.
https://runfrictionless.com/b2b-white-paper-service/
As the rise in sophisticated digital technologies drives an exponential change in online customer behaviour, the need for businesses to embrace digital transformation has never been greater.
Only few organizations wise up to new digital competitors, as they usually come from outside their own sector and are not taken seriously at first. Their allegedly inferior propositions confuse prominent players, who should in fact be the very first to be fully aware of potentially disruptive innovation.
To swing into action rapidly, existing organizations would be well advised to properly analyze anything resembling digital competition. Evidently, there are clear patterns behind the startup success marking a new techno-economic reality. Ecosystems, APIs, and platforms characterize this New Normal where customers have more freedom of choice and better service at lower costs.
These successful disruptors are called two-sided market players, also known as multi-sided platform players. Companies like Uber and Airbnb are getting all the media attention, however there are over 9000 players (and counting) active in almost every industry.
The new VINT report explores the new digital competition and presents:
A analysis of the success factors of disruption
10 design principles of the new digital competition like Unbundle your organization processes, APIs first. Access over ownership and Building trust with social systems
The need for every business to develop a API-strategy
An appeal to the CIO and the IT department to use a leading digital approach and map out an offensive technological route.
DIGITAL LEADERSHIP: An interview with Saul Klein Partner with Index VenturesCapgemini
Saul Klein, Partner with Index Ventures
Saul Klein is a Partner with Index Ventures, one of the largest venture capital firms specializing in technology investments. Saul has 20 years of experience in building tech companies in both the US and Europe. He is the co-founder of Kano and Seedcamp; he also co-founded and was the original CEO of Lovefilm International, which was acquired by Amazon; and part of the original executive team at Skype, which was acquired by eBay. Capgemini Consulting spoke to Saul Klein to examine the disruptive impacts of startups and their implications for traditional incumbents.
Session 1 slides from our Digital Leaders 2-Day Bootcamp, January 2016. The next bootcamp is being held on 14th/15th June - details at www.digital-leaders-bootcamp.eventbrite.co.uk
Our Guide to Digital disruption Update 2019John Ashcroft
A collection of our articles on Digital Disruption and Change Management updated for 2019.
Don't thumb your nose at Digital Disruption
So what do we mean by digital disruption
The six forces shaping digital disruption
Digital Disruption Industries of the future
Which jobs will be at risk in the years ahead
Digital Disruption and the UK Banking System
Grib mulighederne med seneste IT trends- få Microsoft overblikket og nyhederneMicrosoft
Den markante digitale udvikling og nye mega trends skaber spændende muligheder for dig som IT ansvarlig. Grib muligheder inden for Produktivitet, Cloud, Big Data, Enterprise Social og Forretningsapplikationer, så du sikrer at IT understøtter forretningen og løbende er på forkant med udviklingen. Kom og hør hvordan Microsoft med sin samlede pallette af løsninger mener, at kunne hjælpe dig med at løfte din virksomhed ind i fremtiden. Der er altid nye muligheder med de nyeste løsninger. Teknologi Direktør Ole Kjeldsen vil i samarbejde med Microsofts løsningsansvarlige sætte scenen for Microsoft Next. Få et indblik i løsningernes sammenhæng og se demonstrationer af de nyeste elementer.
The New Innovation Paradigm for the Digital Age: Faster, Cheaper and OpenJon Nordmark
How Iterate Studio helps multinationals embrace Open Innovation is featured in Capgemini Consulting's 8th Digital Transformation Review (Oct 2015), pages 44-50. Other topics include Machine Learning and AI (University of Oxford), Innovating through Open Data, Robotics, Intrapreneurship (by Telefonica), Innovation Centers (by Capital One), Frugal Innovation (University of Cambridge), and more. -- Digital Transformation Review 8th Edition, Capgemini Consulting ( https://www.capgemini-consulting.com/digital-transformation-review-8 )
Digital Transformation: A $1 Trillion Opportunity (Note: 2015 deck - somewhat...Ketan Kakkad
This is a 2015 deck - somewhat outdated but contextually still very relevant.
According to World Economic Forum, we are in the midst of 4th Industrial Revolution triggered by FUSION of technologies! Convergence of these Digital Technologies is already disrupting existing and well established business models! Please note that this deck has not been touched since early 2016 (uploading just now in mid-2017), so some aspects might be little bit outdated. I would love to hear your thoughts in comments, and do not hesitate if you wish to discuss specifics or engage in a deeper conversation on how we can help you shine through your Digital Journey.
Introducing thriving with information in the digital economyMark Albala
The attached introduction is a preview of the upcoming book being published by Mark Albala, looking for a publisher to bring this publication to fruition.
How to Survive in a Fast-Changing World | Business Model InnovationAnja Hoffmann
Business innovation is a hot topic for companies across the world. Business executives are using big data, analytics and emerging technologies to improve customer experiences.
The world is changing at an ever-increasing pace. We need to see the whole picture to understand what to do about it. Industries are going through a disruptive change, a phenomenon that already has transformed the media industry, retailing and transportation.
The CEO of the 21st century need to pay attention to significant industry change. The ability to identify new business opportunities and integrate new business models in their organizations is critical to survive in a rapidly changing world.
How do you compete and WIN in the customer-centered economy? Excellent customer experience is a fundamental driver for growth and business success.
By 2020, more than 30 billion devices will be wirelessly connected to physical things. How will 'The Internet of Things' impact your business model?
Remember: Change is good. Standing still is killing your business.
The disruptive potential of new technologies is growing at a staggering speed and challengers in the market are more vigorous than ever. The combination of these new possibilities and the rise of new competitors are the main drivers that are accelerating innovation. This is the reason why leaders put technology on top of their list of factors that will determine their organization’s future.
From 'Being Digital' to Becoming a 'Digital Being'Cognizant
While it’s true that digital transformation requires strong top-down leadership and impeccable technical skills, high-performing organizations must also go one step further: They need to acquire, nurture and retain the talent necessary to lead the charge.
Similar to D2 d 4-design 2 disrupt - mastering digital disruption with devops - en-web (20)
Erdinç Saçan schreef voor het Fontys collega een boek over Inclusieve Artificial Intelligence. Vragen waar in het boek over wordt nagedacht zijn onderandere: “Kunnen we algoritmen inzetten voor het algemene belang, om zo discriminatie en ongelijkheid te bestrijden?” & “Algoritmes nemen steeds meer beslissingen voor ons. Hoe zorgen we ervoor dat dit op een inclusieve manier gebeurt?”
Themabrochure robotisering gerformeerde bond - prof.dr. m.j. de vriesRick Bouter
In de nieuwste themabrochure van de Gereformeerde Bond, getiteld Robotisering, gaat prof. dr. M.J. de Vries in op de voordelen maar ook de gevaren van het inzetten van robots. Voor welke morele keuzes komen we te staan? Moeten robots bijvoorbeeld ook in de zorg worden gebruikt, om zo de werkdruk van het zorgpersoneel te verlichten? In de Bijbel komen robots uiteraard niet voor, maar kunnen we in Gods Woord handvatten vinden om met deze technologie goed om te gaan?
Internet of things and the metamorphosis of objects - rick bouter , gérald ...Rick Bouter
Where in prior times technique was referring to: “a method of accomplishing a desired aim”,
today we speak more of technology. Technology has long been presented as a set of
techniques; today it has become more than a method to accomplish a desired aim. From now
on, we live in ‘the age of makers’. In times when there are more people with mobile phone
access than toothbrushes, everyone has the ability to start up a million euro business from
behind the kitchen table.
Technology does not only affect business any longer; it also affects culture, politics, society
and every element we value in life. Maybe most important of all, it affects the human race as
we know it today. For the reason technology will impact the way we have lived for ages, it is
legitimate to ask whether there is an intersection where humans and objects will find a
mutually beneficial coexistence, or whether one of these entities will rule over the other, or
whether there will be an alliance between the human race and some sort of technology that
represents a global connected world brain.
Will technology be, like in prior times, a collection of methods to accomplishing a desired
aim, or will the human race be enslaved by technology and ruled by the artificial intelligence
embedded in it?
Trend 1: CITIZEN AI
Raising AI to Benefit Business and Society
Trend 2 EXTENDED REALITY
The End of Distance
Trend 3 DATA VERACITY
The Importance of Trust
Trend 4 FRICTIONLESS BUSINESS
Built to Partner at Scale
Trend 5 INTERNET OF THINKING
Creating Intelligent Distributed Systems
Ai - Artificial Intelligence predictions-2018-report - PWCRick Bouter
Here’s some actionable advice on artificial intelligence (AI), that you can
use today: If someone says they know exactly what AI will look like and
do in 10 years, smile politely, then change the subject or walk away.
Internet of things rapport sogeti - vi nt - rick bouterRick Bouter
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Telegram open network ton will be a third generationRick Bouter
Telegram Open Network (TON) will be a “third generation” blockchain with more efficient transaction and scaling capabilities than current solutions like Bitcoin and Ethereum.
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
The Art of the Pitch: WordPress Relationships and SalesLaura Byrne
Clients don’t know what they don’t know. What web solutions are right for them? How does WordPress come into the picture? How do you make sure you understand scope and timeline? What do you do if sometime changes?
All these questions and more will be explored as we talk about matching clients’ needs with what your agency offers without pulling teeth or pulling your hair out. Practical tips, and strategies for successful relationship building that leads to closing the deal.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
Generating a custom Ruby SDK for your web service or Rails API using Smithyg2nightmarescribd
Have you ever wanted a Ruby client API to communicate with your web service? Smithy is a protocol-agnostic language for defining services and SDKs. Smithy Ruby is an implementation of Smithy that generates a Ruby SDK using a Smithy model. In this talk, we will explore Smithy and Smithy Ruby to learn how to generate custom feature-rich SDKs that can communicate with any web service, such as a Rails JSON API.
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024Albert Hoitingh
In this session I delve into the encryption technology used in Microsoft 365 and Microsoft Purview. Including the concepts of Customer Key and Double Key Encryption.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
Software Delivery At the Speed of AI: Inflectra Invests In AI-Powered QualityInflectra
In this insightful webinar, Inflectra explores how artificial intelligence (AI) is transforming software development and testing. Discover how AI-powered tools are revolutionizing every stage of the software development lifecycle (SDLC), from design and prototyping to testing, deployment, and monitoring.
Learn about:
• The Future of Testing: How AI is shifting testing towards verification, analysis, and higher-level skills, while reducing repetitive tasks.
• Test Automation: How AI-powered test case generation, optimization, and self-healing tests are making testing more efficient and effective.
• Visual Testing: Explore the emerging capabilities of AI in visual testing and how it's set to revolutionize UI verification.
• Inflectra's AI Solutions: See demonstrations of Inflectra's cutting-edge AI tools like the ChatGPT plugin and Azure Open AI platform, designed to streamline your testing process.
Whether you're a developer, tester, or QA professional, this webinar will give you valuable insights into how AI is shaping the future of software delivery.
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 3. In this session, we will cover desktop automation along with UI automation.
Topics covered:
UI automation Introduction,
UI automation Sample
Desktop automation flow
Pradeep Chinnala, Senior Consultant Automation Developer @WonderBotz and UiPath MVP
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Connector Corner: Automate dynamic content and events by pushing a buttonDianaGray10
Here is something new! In our next Connector Corner webinar, we will demonstrate how you can use a single workflow to:
Create a campaign using Mailchimp with merge tags/fields
Send an interactive Slack channel message (using buttons)
Have the message received by managers and peers along with a test email for review
But there’s more:
In a second workflow supporting the same use case, you’ll see:
Your campaign sent to target colleagues for approval
If the “Approve” button is clicked, a Jira/Zendesk ticket is created for the marketing design team
But—if the “Reject” button is pushed, colleagues will be alerted via Slack message
Join us to learn more about this new, human-in-the-loop capability, brought to you by Integration Service connectors.
And...
Speakers:
Akshay Agnihotri, Product Manager
Charlie Greenberg, Host
Assuring Contact Center Experiences for Your Customers With ThousandEyes
D2 d 4-design 2 disrupt - mastering digital disruption with devops - en-web
1. VINT | Vision • Inspiration • Navigation • Trends
DESIGN TO DISRUPT
Mastering Digital Disruption with DevOps
Erik van Ommeren, Menno van Doorn,
John Dial, Dave van Herpen
2. 22
CONTENTS
1 Introduction 3
2 Success in the age of disruption 4
3 Management innovation: no easy fixes 10
4 Lean Startup: learning from the disruptors 13
5 DevOps: developing an organizational culture 16
6 DevOps defined 19
7 Spotify into DevOps 22
8 ING Bank into DevOps 25
9 Success stories and early practices 27
10 Ten final DevOps questions 28
11 Design to Disrupt conclusions 31
Literature 34
Photo credits Shutterstock: p. 3 Twin Design; p. 16; p. 18 Ken Wolter; p. 21 Bloomua; p. 22 David Molina G; p. 24; p. 26 roibu; p. 27 (top); p. 27 (bottom) Stocksnapper;
p. 30 (bottom); p. 33 Pexels: p. 4, 5, 6, 7, 8, 9, 11, 28, 29, 30 (top) Flickr: p. 10 smoothgrover22, https://www.flickr.com/photos/smoothgroover22/15104006386
Wikimedia Commons: p. 12 Thomas LOMBARD, designed by HASSELL (architects) - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=19242667
3. 1 INTRODUCTION
‘If the rate of change on the outside exceeds
the rate of change on the inside, the end is
near.’
Jack Welch
Imagine knowing upfront that your new digital product
or service is going to be a guaranteed success, simply
because customers were involved from the very moment
the idea was born. That a multidisciplinary team is ready
to help those customers solve any problems when things
go wrong, and any additional wishes are fulfilled in no
time. And that this team is just as engaged and motivat-
ed as the staff of a startup. And because your 'own start-
up' is responsible for the development and functionality
of the services, blaming each other when things go
wrong will be a thing of the past.
Let’s take this a step further. Imagine spending fewer
hours on ‘management hassle’, because the people do-
ing the work organize their own collaboration. This is
possible if the teams are self-organizing and any surplus
management levels have been removed. How would you
use that extra time? Why not — for example — develop
the discovery skills of your organization; there is so much
to explore in the areas of Cloud, APIs, micro services,
and the Internet of Things. You could do a better job
pleasing your customers, but you simply don’t have the
time. You would actually like to develop your own plat-
form and join the new ecosystems. The startups figured
it out a long time ago; they are so much faster and ex-
tremely wary of bureaucracy. In fact, they have commit-
ted people who are fully engaged with the customer.
Their success is based on this kind of management inno-
vation.
Imagine just ignoring the existing management dogmas,
wouldn't that shed another light on your strife with the
disruptive market players? We present this perspective
on digital disruption in this final Design to Disrupt re-
port: a different way of managing (management innova-
tion), implemented with the help of the discipline em-
ployed by all startups: DevOps. This is how you compete
with startups, no matter how old or slow your organiza-
tion may be today. While building your own digital orga-
nization, you also develop an antifragile organization
that gains strength as the disruptions increase.
There are no easy fixes. We explore alternatives, obvi-
ously, but management innovation should be on every-
body's agenda. And we discuss how ING Bank and Spotify
apply DevOps.
This is the first challenge: how do you remain successful
in today's age of business disruption? We do need to pre-
suppose a number of things. The proposed management
innovation, as well as Lean Startup and DevOps to oper-
ationalize it, is based on your digital transformative
vision. The danger of this method, whether it is Lean
Startup/DevOps or any other method or holistic ap-
proach, is that it may easily swing in the direction of an
ideology. Purpose and means are mixed up. ‘A fool with
a tool’ probably sounds familiar: good ideas in the
hands of mediocre people. This issue is not to be under-
estimated.
3
4. 2 SUCCESS IN THE AGE
OF DISRUPTION
The overabundance of digital startups is a sign of the
times, or rather: of this age. If you wish to exclude those
startups from your market, you require a proper re-
sponse to that age. What should organizations do to be
successful in digitally disruptive times? Organizations like
yours, presumably, which were not born in the Web 2.0
age and do not bear names like Spotify or Dropbox.
Whether you can truly exclude them is questionable. In
any case, you can learn from them and form new com-
bines.
From ‘dotcom’ to ‘Uberfication’
The years of digital eruption are behind us; we now find
ourselves in the age of business disruption. In the three
preceding reports about digital disruption we took stock.
The enthusiasm caused by the newcomers is great, but
arouses resistance on the part of the establishment at
the same time. Platform organizations, the so-called bi-
lateral players, are emerging all over the market and in
fact every market has one or more Airbnb-like organiza-
tions. And the blockchain heightens the effect. This plat-
form, which in its turn enables other disruptive plat-
forms1
, demonstrates that not only are we faced with
ever-advancing platform innovations, but also a continu-
ous stream of digital changes.
Nearly two decades ago, the euphoria with regard to the
digital possibilities was even greater than it is today, if
anything. But this so-called dotcom age proved a total
fiasco. The expectations about IT returns were exagger-
ated, something the American power company Enron in
particular had down to a fine art. The crash that fol-
lowed was inevitable and was blamed on sloppy manage-
ment. Restraints were imposed on the industry by the
American Sarbanes-Oxley Act (2002), the COBIT method-
ology and the auditors. This resulted in a good deal of
grumbling. However, corridor chat tells an entirely dif-
ferent tale nowadays: it is thanks to law and regulation
that we still exist. Although it is not conceded without
great reluctance, regulation is the first line of defense
against disruption.
Meanwhile, this disruption is high on the agenda of every
organization; the new generation of startups does not
waste any time. The nickname 'unicorn' is even being
used for the one billion dollar startup concept: a startup
with a market value of a billion dollars. The value of
Uber, an app to order a taxi, is now estimated at around
60 to 70 billion dollars. This is more than the value of
General Motors, who manufacture the automobiles used
for these taxi rides.
1 We also refer to the three preceding reports of the Design
to Disrupt series: An executive introduction, on the
acceleration of innovation; New digital competition, on the
success factors of the platform organizations, and
Blockchain: crypto-platform for a friction-free economy
about a platform for disruptive platforms.4
5. 5
Three startup characteristics
1. The startups are fast. Their products and services are
reaching their peak in the digital age in no time. This
is sometimes termed the ‘Big Bang theory' for market
introductions. Startups are naturals at this game, far
more so than traditional businesses. And the only
chance to be successful as a startup is by designing
such digital services that the customers are excited
about them.
2. They are customer obsessive, being only too ready to
fill the gap of latent and unfulfilled consumer wishes
with digital platforms and smart algorithms. They are
brilliant in terms of SMACT technology (Social Media,
Mobile, Cloud, Things) and have different rules and
methods of working that attract young talent.
3. Their staff is engaged. They are and feel responsible
for the end result.
2 http://techcrunch.com/2015/06/02/6-1b-smartphone-users-globally-by-2020-overtaking-basic-fixed-phone-subscriptions/#.
hyszfer:RPIH
Age of business disruptions
Obviously, it is quite possible that another bubble is on
its way, but the situation is rather different this time.
The high expectations are not being pushed by compa-
nies such as Enron, but pulled by consumers and end
users. The 2.6 billion smartphone users are urging orga-
nizations to make things easier and above all more digi-
tal. And this note is only going to become stronger. In
2020, the number of smartphone users will be as high as
6.1 billion.2
In the words of IDC analysts: ‘The digital age
is behind us, the transformation age has begun’.
TECHNOLOGICAL ERUPTION BUSINESS DISRUPTION
Recurring phases of each great surge in the core countries
Degree of diffusion of the technological revolution
Previous Great Surge
Big Bang Next Big BangCrash
Institutional
Recomposition
Next Great Surge
Source: Perez, Technological Revolutions and Financial Capital (2002)
Time
IRRUPTION
FRENZY
SYNERGY
MATURITY
Techno-economic split
• Irruption of the technological revolution
• Decline of old industries
• Unemployment
Financial bubble time
• Intensive investment in the revolution
• Decoupling of the whole system
• Polarization of rich and poor
• Gilded Age
Golden Age
• Coherent growth with
increasing externalities
• Production and employment
Socio-politic split
• Last products industries
• Market saturation and techn.
maturity of main industries
• Disappointment vs. complacency
Deployment
Period
Installation
Period
Turning
Point
6. 6
Carlota Perez is the champion of the neo-Schumpeterian
school of thought, who examines the great shifts in soci-
ety that are brought about by technology3
. She portrays
a period that lies behind us: the ICT installation stage
(see the figure on page 5). It took about 30 years to build
this ICT infrastructure. After the outburst and excite-
ment caused by this technology, a crisis (the dotcom cri-
sis of 2000, and the stock exchange crisis of 2008) and a
turning point follow. Next is the deployment stage, in
which the technology is adopted. This is a transition
from technology push to consumer pull, from discon-
nected to connected customers, from unrealistic expec-
3 See also Design to Disrupt: An executive introduction.
tations on the part of shareholders to high expectations
of customers, from delivery skills to discovery skills,
from slow adoption curves to Big Bang market introduc-
tions, from old to new business models and from having
no clear idea of how to set about the technology to ‘ev-
erybody gets it’: this is the age of the digital enterprise.
The digital enterprise makes the most of these digital
opportunities at any given place in the organization, is
equal to rapid changes, is data-driven, which enables it
to operate smartly, is fully engaged with the customer
and thinks and operates in ecosystems.
The digital enterprise
All digital: Every product or service is digitally enriched.
Experience: Creates a world-class customer experience.
Antifragile: Is equal to market disruptions. End-to-end secure by de-
sign. Translates rapidly changing customer wishes into new
services in no time.
Data sensitive: Feedback loops of assets and customers (empathic pulses)
feed the actions. Facts over guesswork.
Ecosystemic: All internal systems are data-driven and unlocked with
APIs. Built on value networks instead of value chains.
Delightful: As-a-service delivery has removed all handovers in the pro-
cesses.
7. 7
Mastering digital disruption
In our previous disruption reports we sketched the pros-
pect of the ‘Valley of Death’. Traditional organizations
will end up in this track of deadly peril if they fail to
come up with a timely solution to disruption. Across the
valley, however, glows 'The New Normal', the new set of
rules for success that those organizations should adopt.
The digital enterprise is the ambition that is totally in
line with this.
The transformation process for organizations towards
such a digital enterprise is outlined in detail in Leading
Digital.4
The process runs from the 'Grand Vision’ via in-
volving the entire organization, to the new forms of gov-
ernance and eventually the full ‘embedding’ of the digi-
tal technology in the entire organization (‘all digital’).
The sine qua non for success with DevOps and Lean
Startup is taking that first step: developing a vision. In-
volving the staff, the new governance and the merger of
IT and the business are all part of the course that you
steer when you are going to tackle management innova-
tion.
It is a remarkable fact that ideas from three different
angles are converging with the aim to keep disruption
under control: marketers, IT departments and manage-
ment experts. The marketers call it the Lean Startup and
will sign up en masse for startup conferences. The IT
departments are talking about DevOps and organize
their own meetings on the subject. The experts in the
field of management speak of management innovation
and usually have a bit of a distance from marketing or IT.
All three of them have the same thing in mind: stop
wasting people’s time, bring the human component into
focus and accelerate innovation. Names are irrelevant in
this context (other fashionable terms will probably pop
up in the near future) — what matters is the direction
that is now becoming clearly apparent.
4 G. Westerman, D. Bonnet A. McAfee, Leading Digital: Turning Technology into Business Transformation, Harvard Business
Review Press, 2014.
Technology
Governance Engagement
Vision
8. 8
Management innovation
‘(...) the invention and implementation of a management
practice, process, structure, or technique that is new to
the state of the art (...)’.5
This is how management guru
Gary Hamel defines the term ‘management innovation’.
He represents a larger group of management experts6
claiming that market disruptions can only be counterbal-
anced if the organizational DNA changes as well.
Lean Startup
‘(...) a new discipline of entrepreneurial management’.7
This method offers lessons in the working practice of
startups, which have been translated into management
principles for traditional organizations. The term ‘Lean
Startup’ was coined by Eric Ries, who gained experience
with various startups.
DevOps
Culture, Automation, Lean, Measuring and Sharing: the
CALMS acronym that characterizes DevOps is derived
from these five concepts. DevOps is a combination of the
words 'Dev(elopment)’ and ‘Op(eration)s’. Gartner de-
fines the term as follows: ‘(...) a change in IT culture,
focusing on rapid IT service delivery through the adop-
tion of agile, lean practices in the context of a sys-
tem-oriented approach. DevOps emphasizes people (and
culture), and seeks to improve collaboration between
business, operations and development teams’.8
Antifragile
We present management innovation, Lean Startup and
DevOps as three manifestations of the same phenome-
non: a different way of working that is in line with mod-
ern practices. There are, however, minor differences.
DevOps is the most holistic and more likely to take cul-
tural aspects and the existing operation (Ops) into con-
sideration. Lean Startup tends to focus more on a meth-
od for product development (Dev). But both of them
explicitly work on management innovation: they put up
a vigorous fight against bureaucracy, make teams and
staff responsible and urge the customer to take his turn
at the wheel when it comes to digital innovations. This is
how speed, staff engagement, and customer obsession
come within reach of any organization. The umbrella
term 'antifragile' for these three phenomena, is most
likely to stick. In Antifragile: Things That Gain from Dis-
order, Nassim Taleb, author of The Black Swan, outlines
which organizational form is best equipped for this time
of disruption and uncertainty.
Good ideas about how to learn from the digital disrup-
tors do not appear out of nowhere. DevOps, Lean Startup
and management innovation are rich sources that you
can draw on.9
For the startups that you are fighting, it is
all mere child's play — this is the way they work. For or-
ganizations that are about to start up a digital transfor-
mation, however, the implications still need to be estab-
lished. You won't know whether you have acted fast
enough until the dust of the wave of disruption has set-
tled.
5 J. Birkinshaw, G. Hamel M. Mol, ‘Management Innovation’, Academy of Management Review 2008, Vol. 33, No 4,
pp. 825/45, http://faculty.london.edu/jbirkinshaw/assets/documents/5034421969.pdf
6 Such as Hal Gregersen, executive director of the MIT Leadership Center, and Nassim Taleb, author of Antifragile.
7 E. Ries, The Lean Startup, Crown Business, 2011.
8 Gartner, http://www.gartner.com/it-glossary/devops/
9 Read e.g., ‘Learning from Web Companies to Drive Innovation: Embracing DevOps, Scale and Open Source Software’,
http://i.dell.com/sites/doccontent/business/solutions/whitepapers/en/Documents/web-company-innovation.pdf
‘Some things benefit from shocks; they thrive and grow when exposed to volatility,
randomness, disorder and stressors, and love adventure, risk and uncertainty. Yet, in spite of
the ubiquity of the phenomenon, there is no word for the exact opposite of fragile. Let us call
it antifragile.’ Nassim Nicholas Taleb, Antifragile
9. 910 Drawing taken from https://jaxenter.com/beyond-agile-antifragility-for-software-development-2-117695.html
Antifragile: fragile organizations tend to avoid
disruption because they fear the chaos that
disruption may cause. Robust organizations are
strong but can even so be caught off guard and
fail. Resilient organizations can absorb blows
without having to change, and antifragile
organizations will become stronger and more
creative thanks to the disruptions they are
faced with.10
Antifragile system
Resilient system
Robust system
Fragile system
THE ANTIFR AGILE ORGANIZATION
MANAGEMENT INNOVATION LEAN STARTUP DEVOPS
Multiply funding for new initiatives Implement experimentation systems Continuous iterative innovation
Learn from the fringe Experiment is a product Embrace a culture of ‘Fail Fast’
Community over hierarchy Instill entrepreneurship Make DevOps teams responsible
Employees first Customer first Empower employees to put customers first
Ensure transparency in decision making Validated learning Short feedback loops measure end-to-end
Kill bureaucracy Minimum Viable Bureaucracy (MVB)/lean System thinking, crossing silos
Think competencies and platforms Think digital innovation Innovate digitally and use cloud platforms
Honor Web-inspired value Honor end customer value Honor end customer value
Reinvent management Self-management Self-management
Speed Pivot Flow
time
success
10. 10
3 MANAGEMENT INNOVATION:
NO EASY FIXES
Many people have reasonable doubts about whether the
conventional organizations are capable of dealing with
the startups, but according to Internet guru Kevin Kelly
‘you are not too late.’ Radical digital innovations need
not be reserved for newcomers only, according to Kelly.
After all, we are only at the beginning of the Internet
age and the real transformation is yet to begin. Eric Ries,
the founder of Lean Startup, also claims that existing
companies can be just as successful with digital innova-
tions as startups. And even the über guru of disruption,
Clayton Christensen, is optimistic about your opportuni-
ties. In his article ‘Surviving Disruption’11
in Harvard
Business Review of 2012, he explains that there is a way
out, also for existing businesses.12
But it is true that in
the last two decades much has changed. A number of
great firms has joined the club: Facebook, Google, Twit-
ter, Amazon, Netflix, Airbnb and Alibaba — to mention
only a few.
‘Management innovation is going to be the
most enduring source of competitive
advantage. There will be lots of rewards for
firms in the vanguard.’
Gary Hamel
But to make up for lost ground, a couple of easy fixes are
not enough. Management guru Gary Hamel’s plea shows
us the shortest way to what he calls management inno-
vation.
Hamel considers some easy fixes in the context of com-
peting with startups:
EASY FIXES
Entering into a legal battle against new business models,
starting up an accelerator, arranging business incubators,
going to Silicon Valley to be inspired, setting up an ideation
platform, putting a high-performance team to work,
preaching intrapreneurship, re-engineering processes, us-
ing the learning organization as an example to epitomize
the idea, establishing communities of practice, etc.
They served a specific purpose, Hamel says, but are not
nearly sufficient to solve today's issues. On the other
hand Hamel does not deny that these are useful actions,
but they just won't do. This is in line with the view of
other management experts such as Hal Gregersen, exec-
utive director of the MIT Leadership Center, and Clayton
Christensen, Harvard Business School professor and the
person who coined the term ‘disruptive innovation’. This
duo refers to adapting the organizational DNA, a far
more drastic operation13
than a seemingly easy fix.
Research by Capgemini Consulting,14
asking organizations
to give their response to digital disruption, shows that
four actions are particularly popular:
11 M. Wessel C.M. Christensen, ‘Surviving Disruption’, Harvard Business Review, December 2012, https://hbr.org/2012/12/
surviving-disruption
12 Mainly by applying the jobs-to-be-done-concept: a very strong focus on the jobs performed by customers. Christensen feels
that this job-oriented customer focus provides the solution to disruption.
13 See also the book The Innovator’s DNA by J. Dyer, H. Gregersen and C.M. Christensen (2011) as well as the article with the
same title in Harvard Business Review (December 2009) by the same authors, https://hbr.org/2009/12/the-innovators-dna
14 Capgemini Consulting, When Digital Disruption Strikes: How Can Incumbents Respond?, February 23, 2015,
www.capgemini-consulting.com/when-digital-disruption-strikes
11. 11
According to Hamel, management innovation means rec-
ognizing the problem to start with, and he too attributes
the cause of the problem to a genetic defect. Something
needs to be done to the DNA — incremental therapy does
not do the trick anymore. Hamel's words, for example in
his article ‘Reinventing Management at the Mashup: Ar-
chitecture Ideology’,15
really hit home. He finds that:
1. Organizations are slow in times of crisis. This inertia
often destroys them, because mechanisms for pro-ac-
tive bottom-up innovation are lacking.
2. Organizations are incremental. They rarely come up
with pioneering innovation, despite the abundance of
resources they have at their disposal. Few CEOs pur-
sue innovation just as consistently as operational effi-
ciency, for example. At the end of the day they buy a
young company that does have that drive, but loses
the spirit after the acquisition.
3. Organizations are emotionally sterile. They are good
at command-control mechanisms, but when it comes
to voluntariness, they are left empty-handed. Emo-
tions are an organization's main assets. Imagination,
initiative and passion are thoroughly incompatible
with command-control structures. Recent American
research shows that a mere 13 per cent of employees
is truly engaged with their work.16
HOW CAN INCUMBENTS RESPOND?
The report When Digital Disruption Strikes: How Can Incumbents Respond? provides strategies to face digital disruption. Four
of them, which are specifically brought forward as ammunition in the battle against startups, are listed below:
1. engaging digital talent — 'digital gurus' — and letting them play a key role in a Digital Advisory Board;
2. copying and improving products of the new competitors;
3. taking over disruptors with a view to acquiring the expertise;
4. starting a legal battle to delay the disruptors.
These tactical instruments can provide some momentary room to breathe and are certainly to be recommended. However, the
report tells us that the fundamental problem is far more profound. The realization that digital innovation constitutes the core
of an organization's identity requires its own 'cultural revolution', also in this context. The advice varies from entering into
completely new collaborations in open-innovation ecosystems, to critical thinking and abandoning current organizational rolls
and patterns.
15 http://www.managementexchange.com/blog/reinventing-management-mashup-architecture-ideology
16 Gallup, State of the Global Workplace, http://www.gallup.com/services/178517/state-global-workplace.aspx
12. 12
Inert, incremental, and without engagement. If the wind
of creative destruction rises even more strongly, Hamel
says, these weaknesses will destroy those existing orga-
nizations. Hamel provides three pieces of advice to ad-
dress the core incompetences of organizations effective-
ly:
• Tackle the hierarchy.
A formal hierarchy overweights experience and under-
weights new thinking. Instead of hierarchies, network
structures and ecosystems need to become the guiding
principles.
• Tackle the culture.
In many organizations, bureaucracy is the prevailing cul-
ture. Hamel even calls it an ideology. Bureaucracy is the
technology of control. Crazy ideas of weird people with
exceptional results do not fit in this culture.
• Kill bureaucracy.
We have empowered employees, but they are not sup-
posed to interfere with the strategy. We preach innova-
tion but refuse to dismantle the barriers. We make orga-
nizations flatter, but the hierarchy remains intact. We
are campaigning against bureaucratic rules, but have
failed to oust them as yet. Now is the time to do so.
13. 13
4 LEAN STARTUP: LEARNING
FROM THE DISRUPTORS
So chances are that marketers seeking help in this sud-
den market acceleration, will end up with Eric Ries. Ries
is an experienced Silicon Valley-based entrepreneur,
who pioneered with ‘rapid development’ of new digital
products from 2004 to 2008. Ries propagates a scientific
approach of the innovation process, based on his bank-
ruptcy experience in the dotcom age, and on the lessons
he learned later on while working for new startups. Lean
Startup applies the views of the Lean methodology and
focuses on the innovation process. The introduction of
such an approach should lead to entrepreneurship in all
levels of the organization. That, at least, is what it prom-
ises to do (apart from the fact that it is a fervent wish on
the part of directors of big companies).
Lean Startup: measuring, learning and building
faster
The success cycle starts with specifying ideas in code,
following the data and measuring (by means of split-
tests, or A/B testing, for example), and adjusting the
ideas based on the results. This learn-fast approach, also
termed ‘validated learning’ by Ries, is essential to the
improvement of the innovation process.
Initially that approach was simply called ‘customer de-
velopment’, a term coined by one of Ries' colleagues,
Steven Blank. The essence of this approach is to let real
customers evaluate new products as soon as possible. It
is a matter of experiments aimed at developing a Mini-
mum Viable Product within the shortest time span possi-
ble. An interesting practice, not in the least in the light
of Christensen's disruption theory, which considers prod-
uct functionality the greatest fallacy on the part of in-
cumbent organizations.
Customer development: the shared basis of Lean Startup and
DevOps.
LEARN BUILD
DATA CODE
IDEAS
Learn Faster
Split Tests
Customer Interviews
Customer Development
Five Whys Root Cause
Analysis
Customer Advisory
Board
Falsifiable Hypotheses
Product Owner
Accountability
Custom Archetypes
Cross-Functional Teams
Smoke Tests
Code Faster
Unit Tests
Usability Tests
Continuous Integration
Incremental Deployment
Free Open-Source
Components
Cloud Computing
Cluster Immune System
Just-In-Time Scalability
Refactoring
Developer Sandbox
Measure Faster
Split Tests
Clear Product Owner
Continuous Deployment
Usability Tests
Real-Time Monitoring
Custom Liaison
Funnel Analysis
Cohort Analysis
Net Promoter Score
Search Engine Marketing
Real-Time Alerting
Predictive Monitoring
THE LEAN STARTUP
Source: Eric Ries, startuplessonslearned.blogspot.com
CUSTUMER DEVELOPMENT
Customer
Discovery
Problem-
Solution Fit
Proposed
MVP
Proposed
Funnel(s)
Customer
Validation
Product-
Market Fit
Business
Model
Sales
Marketing
Roadmap
Customer
Creation
Scale
Execution
Company
Building
Scale
Organization
Scale
Operations
pivot Source: Steve Blank’s Customer Development by
Brant Cooper; custdev.com
MEASURE
14. 14
Basically, Eric Ries was working on software develop-
ment, albeit from the perspective of a startup. And al-
though big companies usually have a rosy picture of
startups nowadays, almost by definition tending to des-
ignate them as superior, Ries came to the paradoxical
conclusion that the majority of startups is bound to fail.
To prevent this kind of failure, the idea of rapid develop-
ment — or customer development — emerged. And with
the idea of design thinking in mind, we very quickly get
to the heart of the matter, where speed and smartness
meet. At the end of the day it is the customer, not man-
agement, who determines the course of the innovation.
It is the same idea that underlies DevOps, only here it is
called lifecycle development instead of customer devel-
opment.
General Electric: the oldest startup ever
One of the organizations claiming Lean Startup-based
successes is General Electric (GE). GE has managed to
engage Eric Ries to help develop FastWorks, based on his
Lean Startup philosophy. FastWorks, as the name im-
plies, aims to accelerate and improve GE's innovations.
GE capitalizes on customers' fast feedback loops and is
geared towards making a ‘pivot’ itself. Meanwhile GE is
practicing the method to accelerate the roll-out of prod-
ucts, varying from bulbs to turbines and refrigerators.
The company has already trained 40,000 employees in
view of this new initiative, one of the most extensive
programs in GE's 122-year history.
Meanwhile, there is no longer any need to explain this
approach to a startup. After all, many startups are trying
to reformulate their rationale and use the conclusions of
customer experiences to adjust their course, sometimes
drastically. In startup language this is called a 'pivot’ of a
Minimum Viable Product. Just try to come up with such
a suggestion in a traditional company... If you say that
the entire strategy for a new product needs to be
changed diametrically based on consumers' feedback,
the customary management meetings or even board
meetings and project committees have to be convened
first. Startups just do not have the time, the money and
the means to do that. And frankly, when you are very
critical, nor do you.
Minimum Viable Product
Nowadays, product developers and marketers constantly
talk about Minimum Viable Products (MVPs): products
and services that have been barely sufficiently devel-
oped to be launched. Apart from feedback from real cus-
tomers, this minimalistic approach to innovation ulti-
mately results in an increase in the number of innovations
more than anything else. The faster your assumptions
are tested, the sooner you know you are on the right
track.
Minimum Viable Product: barely sufficiently developed to be
tested, yet with all important elements elaborated sufficiently.
MINIMUM VIABLE PRODUCT
Not this This
Delightful
Usable
Valuable
Feasible
Delightful
Usable
Valuable
Feasible
15. 15
An excellent example of how an MVP can be helpful in
this context is Zappos, who wanted to know whether
people would basically be ready to buy shoes online. In-
stead of developing a whole logistic infrastructure to
process orders first, Zappos came up with a knocked-to-
gether solution. Photos were taken of shoes in existing
stores and when someone ordered shoes, they were sim-
ply bought in the store and then delivered. Hardly a busi-
ness model designed to last, but it is certainly helpful in
testing the hypothesis that there is a customer demand.
The answer was positive, we now know, and Zappos'
turnover currently amounts to 2 billion dollars.17
After Ries had popularized the term 'Minimum Viable
Product’, he started his own consultancy practice in
2009, highlighting the ‘rapid development’ method. Ries
is now a consultant for many high-tech startups and has
developed a comprehensive methodology, ‘the Lean
Startup philosophy’, which can also be utilized by incum-
bents. Ries says that the problem of existing companies
does not lie in the number of good ideas, as many
organizations will recognize. It is rather that organiza-
tions have no management process to start up high-risk
projects and run them.
The tragedy of the established order is that the initial
spirit of innovation of the early years is nearly always
smothered by a firm framework of governance and con-
trol mechanisms. Thanks to their history, market posi-
tion and infrastructure, traditional companies devote
relatively much time and attention to the ‘systems of
record’. Here governance control are predominant.
Startups prefer to go for the ‘systems of innovation’,
where many new avenues can be tested and governance,
by contrast, is a minor aspect. The question comes to
mind whether an incumbent can just try it out as well.
So Ries definitely speaks against a situation where time
is wasted on activities and innovations that turn out not
to work and are totally useless. This principle of 'doing
the right things' rather than 'doing things right' is based
on lean manufacturing: the principle of preventing
waste. Like Hamel, Ries is averse to dogmas (Hamel even
calls them ideologies) and argues in favor of objectifica-
tion. Research from the eighties of the last century al-
ready showed that the introduction of information sys-
tems in major organizations involves a great deal of
waste. The Standish Group has reported on this in its
Chaos reports for decades.18
Based on many years of ob-
serving the introduction of information systems, London
School of Economics professor Claudio Ciborra has out-
lined where things tend to go wrong frequently. Manage-
ments want to be in control and find that they are drift-
ing because the users of the system do not act according
to expectations. This resistance leads top-down to the
idea that they are getting out of control.19
Lean Startup
and DevOps avoid the problem by reducing the risks and
letting major decisions depend on the dialogue between
the users and the makers.
17 http://www.forbes.com/sites/danpontefract/2015/05/11/
what-is-happening-at-zappos/#3f4f0a1231b3
18 See e.g., the Standish report Big Bang Boom,
https://www.standishgroup.com/sample_research_files/
BigBangBoom.pdf
19 We described this in Making IT Governance Work,
http://www.amazon.com/Making-Governance-Work-
Sarbanes-Oxley-World/dp/0471743593
LEAN
STARTUP
DEVOPS
TRADITIONAL
Systems of
Engagement
Systems of
Differentiation
Systems of
Record
Governance
-+
Change
-+
16. 5 DEVOPS: DEVELOPING AN
ORGANIZATIONAL CULTURE
In the same year that Ries was promoting his Lean Start-
up philosophy, ‘DevOps’ was mentioned for the first time
as a new way to accelerate the IT organization. And al-
though the term sounds a lot less sexy than Eric Ries’
Lean Startup, DevOps is now definitely a match for it in
terms of popularity. DevOps has its origin in the soft-
ware development method Agile, or rather, is the result
of Agile's success.
The term DevOps was coined by two IT consultants, Pat-
rick Debois and Andrew Shafer. They met in Toronto in
2008 at a conference where Shafer gave a presentation
entitled 'Agile infrastructure’ that no one bothered to
attend except Patrick Debois. Debois was working on the
very same subject matter at the time. His experiences
with a database migration, where development and op-
erations were kept strictly separate, fostered his inter-
est. After the conference, Debois and Shafer kept in
touch and in 2009 this led to the first DevOpsDays. The
history of DevOps and the significance of the DevOps-
Days20
demonstrate that it is a grassroots movement
‘from practitioners by practitioners’. Debois was asked
to give a presentation on one of the DevOpsDays on the
future of DevOps. He expressed the wish that, more than
anything else, DevOps remains 'weird' (which fits the en-
gineering culture) and that diversity determines the suc-
cess of DevOps. By the latter remark he meant that
DevOps should allow as many trends and ideas as possi-
ble to explain what it is exactly and which course it
should steer. No rigid definitions: anything is possible
and should be made possible.21
From Agile to DevOps
In 2001, a group of seventeen software engineers pub-
lished a manifesto as a reaction to anything that went
wrong with the way software was being built. The water-
fall model was in a bad light. They proposed a different
philosophy in the form of value statements and working
principles.
THE AGILE MANIFESTO —
A STATEMENT OF VALUES
Individuals and
interactions
Working software
Customer
collaboration
Responding
to change
Process and toolsover
over
over
over
Comprehensive
documentation
Contract negotiation
Following a plan
20 ‘The Incredible True Story of How DevOps Got Its Name’, https://blog.newrelic.com/2014/05/16/devops-name/
21 Debois, P. (2013): ‘The Future of DevOps’, https://vimeo.com/6554746416
17. 17
The main principles of this Agile Manifesto are:
1. Customer satisfaction by early and continuous deliv-
ery of valuable software.
2. Welcome changing requirements, even in late devel-
opment.
3. Working software is delivered frequently (weeks
rather than months).
4. Close, daily co-operation between business people
and developers.
5. Projects are built around motivated individuals who
should be trusted.
6. Face-to-face conversation is the best form of commu-
nication (co-location).
7. Working software is the principal measure of prog-
ress.
8. Sustainable development, capable of maintaining a
constant pace.
9. Continuous attention to technical excellence and
good design.
10. Simplicity — the art of maximizing the amount of
work not done — is essential.
11. Self-organizing teams.
12. Regular adaptation to changing circumstances.
These principles were at the basis of a great many steps
in software development, such as pair programming (two
individuals working together behind the computer),
time-boxing, Kanban, Scrum, extreme programming etc.
Currently we are applying the spirit of the Agile Manifes-
to in the context of the end-to-end chain of organiza-
tions. We can then add new principles, such as customer
satisfaction over SLA compliance, personal attitude and
collaboration over certification of employees, managing
results over managing activities, and adaptivity over
procedures.
DevOps approaches the organization from head to tail:
value creation including the operation at the customer,
and deployment. Agile development, continuous integra-
tion and continuous delivery involve a smaller part of the
production chain. And all meant to create the ultimate
customer experience.
value
AGILE MINDSET IN THE END-TO-END CHAIN
Customer Satisfaction over SLA Compliance
Attitude Collaboration over Certification
Control on Results over Control on Activities
Adaptivity over Procedures
OPPORTUNITY TO ADDRESS…
End-to-End IT Value Chain
plan code build test release deploy operate
DevOps
Continuous Delivery
Continuous Integration
Agile Development
End-to-end
18. 18
This end-to-end approach also offers a solution to a ma-
jor part of the criticism of Agile: it was said to be less
reliable — a cowboy way to handle software. Because a
multidisciplinary team is made responsible for both de-
velopment and operation, the developers feel the pain
when things go wrong operation-wise (and the other way
around). The DevOps teams (or ‘squads’, if you like) con-
sist of architects, security specialists, marketers, tes-
ters, support services, infrastructure specialists and cus-
tomers. This is, in fact, a whole organization in a
nutshell, or a startup. So the extra added to Agile by
DevOps, is removing the walls between the operation
and development.22
Developers are now responsible for
the operation, which promotes entrepreneurship and re-
sponsibility. This results in the speed and customer ob-
session — the ultimate customer experience — that we
referred to before, although at a far lower risk. The days
when everybody had to be ready during the weekend,
because some software was being deployed, will then be
over for good. To illustrate the contrast: Amazon realizes
1,000 deployments in an hour.
22 In fact, all stakeholders are involved (see the picture on
this page).
dev
arch
sec
cust
supp
ops
test
ext
Amazon May Deployment Stats
(production hosts environments only)
11.6 seconds
Mean time between deployments (weekday)
1,079
Max # of deployments in single hour
10,000
Mean # of hosts simultaneously receiving a deployment
30,000
Max # of hosts simultaneously receiving a deployment
Source: John Jenkins, Amazon.com
Amazon's statistics for product releases
19. 19
6 DEVOPS DEFINED
The idea behind DevOps is very simple: ‘If only everyone
would co-operate more ...’ Eliminate the silos, to begin
with. By working in multidisciplinary teams the conven-
tions of co-operating ‘in IT’ can be abolished and a
merger between IT and the business can take place,
which is essential to being successful in this age of digital
disruption. The above is based on five elements: Culture,
Automation, Lean, Measure and Share. CALMS is a brief
definition of what DevOps stands for.
C — Culture: thinking systematically and
embracing a ‘fail-fast culture'
A must-read to gain insight into what is needed to build
a DevOps culture is The Phoenix Project, a book of 2013
subtitled ‘A Novel About IT, DevOps, and Helping Your
Business Win'.23
The hero of the book is the IT manager
who manages to save his department and make the busi-
ness successful with the help of a mysterious Yoda-like
philosophy of ‘three ways’: 1) thinking systematically; 2)
strengthening feedback loops; and 3) experimenting and
learning continuously. Thinking systematically ensures
that people look beyond the silos and departments and
won't let mistakes stream ‘downstream’ to other ‘de-
partments’. What it comes down to is that local KPIs are
not allowed to steer the total achievement. This creates
a basis for working in multidisciplinary teams. The feed-
back loops are necessary to acquire an end-to-end over-
view of what it is that makes internal and external cus-
tomers happy. Continuous learning and experimenting is
about creating the proper culture that is receptive to
taking risks and learning from mistakes. This is one of
the main changes one will be faced with when introduc-
ing DevOps. The culture of fear that is still predominant
in many organizations — the fear to make mistakes, to
innovate, to be the odd man out — is translated by
DevOps into a fail-fast culture, as many startups know.
Chaos Monkey of Netflix
Would you dare to launch a service that deliberately at-
tacks your own production environment? This is exactly
what Netflix does and the product is called Chaos Mon-
key (open-sourced, by now). Chaos Monkey is a piece of
software that aims to destroy things in order to constant-
ly monitor if all software is still being designed in such a
way that it remains intact when an error occurs some-
where else. This concept is known as ‘rugged IT’. In the
new world of interconnected APIs, the fact that some
things just don't work should be taken into account. And
the code must continue to function. In the old world we
tend to rely on other systems that make sure everything
is always ‘up’.
A — Automation: automate automation
Automation is the simplest and most tangible part of
DevOps. The aim is to automate as much of the software
process as possible. Eventually DevOps can become
CloudOps, and the services can be offered as such in the
cloud, the same way the startups go about it. The idea
underlying ‘automation’ is that everything that can be
automated, should be automated — from creating an en-
vironment for configuration tools and loading datasets,
to carrying out performance tests. This automation af-
fects the speed and quality of the process directly (ev-
erything is formalized, there are fewer heroes needed to
intervene ad hoc to solve the problems). Probably not
everything can be automated in practice because human
checkpoints will often remain necessary; but since set-
ting up certain environments still implies a lot of fuss for
the majority of the traditional organizations, it would be
virtually a no-brainer to embrace at least this element of
DevOps.
23 See https://en.wikipedia.org/wiki/The_Phoenix_Project:_A_Novel_About_IT,_DevOps,_and_Helping_Your_Business_Win
20. 20
Plenty of tools are available to help. So which one should
you choose? Have a look at the periodic table of the
DevOps tools. They are divided into categories such as
version management, packaging and test automation.
The market is still developing, but the categories are
fairly stable. Big suppliers such as Microsoft and IBM like
to recommend their own integrated suite of tools, obvi-
ously (Visual Studio or Bluemix). A specific tool catching
on rapidly is Docker, which enables the use of 'contain-
ers'. This is a virtualization solution that allows very sim-
ple applications to be moved from one environment to
the other, from the desktop to the cloud or from one
cloud to the other.
L — Lean: preventing waste with Lean
We probably don’t have to explain Lean to you because
there is an abundance of management literature about
this management philosophy. The main thing we can add
is that what is particularly relevant with Lean in DevOps
— as in Lean Startup — is: a) improving innovation and
realizing new or latent customer needs, b) measuring
and optimizing the productivity flow across the whole
system, and c) the fact that Lean is part of DevOps and
that DevOps is much more about a culture that guaran-
tees successful collaboration.
The obsessive focus on customer value (end-to-end) en-
sures that little time is wasted on matters that have no
added value. A fail-fast culture is part of it, just like the
Minimum Viable Product approach. All these holistic ele-
ments that we observed at an earlier stage in Lean Start-
up, we see again in DevOps. This includes the empower-
ment of the self-organizing teams and the concept of
‘validated learning’: everything is focused on the ability
to anticipate as quickly as possible, with a view to doing
the right things instead of taking the wrong turn.
The periodic table of DevOps tools
21. 21
M — Measuring: measuring throughout the chain
How many releases were there in the past week? Where
did things go wrong? How did customers respond and
which improvements were really effective? The automa-
tion of the operational process results in a wealth of in-
formation, which can now become available to the whole
chain thanks to DevOps. The developers are faced with
the inadequacies of the operation and the people on the
side of the operation see how it affects the customer.
Where measurements used to be made, but information
was presented in silos, the DevOps team now has a view
of the whole field at a glance. And the responsibility for
the improvements to all these metrics rests with the
same multidisciplinary team. But more importantly: in
addition to performing measures in the chain, these kind
of feedback loops offer the opportunity to test business
hypotheses that can result in new innovations (as in A/B-
tests, or in the Zappos example outlined above). There is
a great deal of information available on good and action-
able DevOps metrics.24
S — Sharing: accelerated learning by sharing
Sharing expertise and experience inside and outside
teams is crucial to the success of DevOps. Some call this
element of DevOps the realization of an ‘open-source
culture’. The sharing principle does not only apply to
working within the DevOps teams, it also involves shar-
ing tools, experience, an architecture or code among the
teams. This way the learning experiences in the various
teams can scale up quickly.
24 See e.g., http://www.nonlinearcreations.com/Digital/how-we-think/articles/2015/03/4-
metrics-measuring-Dev-Ops.aspx
DevOps: the elimination of organizational silo’s, together with thinking systematically and the elimination of manual actions (Automate)
enable accelerated learning and customer-oriented innovations.
ORGANIZATIONAL SILOS
OPS
QA
BUSINESS BUSINESS/DEV/QA/OPS
DEV
Business need
Evaluate need
Get sign-off to
proceed
Scope
definition
Develop it
Test it
Fix it
Schedule the
release
Revise required
paperwork
Get paperwork
signed off
Test it as part
of release
Fix it
Deploy it as
part of release
Fix it
Manual
Manual
Manual
Manual
Often
Manual
Human
Approval
Driven
Automated
Approval
and
Technology
Path
Validated
business need
Integrate it
Write test
cases
Obtain feedback
for refinement
Develop itMonitor it
Deploy it Test it
22. 22
7 SPOTIFY INTO DEVOPS
It is already called the Spotify model; the way the online
music business models for the new method of working.
Some say it’s easy talking for Spotify. It is, after all, 'just'
a bit of software and they are not bothered by legacy.
And the employees can cash in when the business with
an estimated value of 8 billion dollars is floated on the
stock market — no wonder there is so much ‘engage-
ment’! Still, Spotify is an inspiring example of an organi-
zation that has made very consistent choices and imple-
ments them in terms of culture, the ‘all digital’ strategy,
and the way they treat customers etc. In short, the ho-
listic approach DevOps stands for.
Spotify calls it the 'Spotify Engineering Culture’. Self-or-
ganized teams, called 'squads’, call the shots. One of the
main principles in Spotify is to let these squads operate
as autonomously as possible and convey 'a startup feel-
ing'. Each squad has a product owner and is grouped to-
gether with other squads that do related things in a
‘tribe’. A tribe has a specific focus, like — in the context
of Spotify — the front-end music player or the back-end
infrastructure. A tribe may be compared to an incubator
for the startup-like squads. A tribe must not exceed
about one hundred people, based on the safe maximum
number to share a social relationship with (‘Dunbar’s
number’25
).
To enable an exchange of experiences with regard to
testing or security, for example, there are two other
structures: ‘chapters’ and ‘guilds’. A chapter is a group
of people from various squads addressing problems they
have in common.
A guild is a less coherent entity, and may consist of peo-
ple from the entire organization; it is a community of
interest, exchanging knowledge, tools, code and experi-
ences. This results in a kind of matrix, but differs from
the traditional matrix organization: the squads are sta-
ble and keep to the product. This is the overriding struc-
ture, whereas in traditional matrices people with the
same skills or interests are put together and 'deployed'
for a project.
Henrik Kniberg played a major role at Spotify to set up
the organization. He worked for them for many years as
an Agile/Lean coach, and now fulfills the same role with
Lego. Kniberg produced two videos with infographics in
which he gives a very detailed explanation of the meth-
od of working.26
The ten highlights below provide a good
understanding.
25 See https://en.wikipedia.org/wiki/Dunbar's_number
26 https://labs.spotify.com/2014/03/27/spotify-engineering-
culture-part-1/
PO
Squad
PO
Squad
PO
Squad
PO
Squad
PO
Squad
PO
Squad
PO
Squad
PO
Squad
Chapter Chapter
Chapter
TRIBE TRIBE
Guild
Chapter
23. 23
1 Business alignment versus autonomy
How to solve the discrepancy between the freedom to
innovate, and the wish to align the actions and the busi-
ness targets? The alignment-autonomy quadrant provides
the four options for the best method of working for Spo-
tify. The Spotify model is based on the business asking
the question and the ‘practitioners’ having the autono-
my to come up with the answer.
2 Focus on staff motivation
Exemplary for the focus on motivation is an email from
the HR department. After a customer satisfaction poll,
91 per cent turned out to be satisfied and 4 per cent
dissatisfied. The email sent by the HR department reads:
‘This is of course not satisfactory and we want to fix it.
If you’re one of those unhappy 4 per cent please contact
us. We’re here for your sake and nothing else’.
3 Making mistakes faster as a mission
‘We aim to make mistakes faster than anyone else’, says
Spotify's CEO Daniel Ek. This is not about making mis-
takes, but much more about a learning organization,
about validated learning. Spotify is a ‘fail-friendly envi-
ronment’. It is about failure recovery rather than failure
avoidance. Some squads in Spotify even have a fail wall.
The post-mortem of projects is a fixed item in the ap-
proach; in hospitals, for example, where learning from
mistakes is extremely relevant, this is part of the cul-
ture.
4 Experiment-friendly culture
New ideas begin as experiments. Instead of killing an
innovative idea by pushing the discussion too far, you
simply try it out. Techniques such as A/B tests are often
used to this end. Experiments begin with a hypothesis,
followed by a measurement and the question ‘what’s
next?’
5 Minimum Lovable Product
A variant of the MVP is the Minimum Lovable Product of
Spotify, which focuses on developing a story which hides
the innovation hypothesis to be tested. For example, ‘ra-
dio you can save’, a product idea with an intriguing name
hiding an intriguing history.27
Would that be attractive to
customers? And how would you test it?
6 Minimum Viable Bureaucracy
The growing pains of Spotify end in a balancing act be-
tween chaos and bureaucracy. Kniberg launched the
term 'Minimum Viable Bureaucracy’ in this context,
which stands for a minimum number of rules to prevent
bureaucracy from destroying the organizational culture
to prevent chaos.
27 https://news.spotify.com/us/2012/06/19/free-mobile-radio/
24. 24
7 Staff Engagement
One of the squad leaders at Spotify formulates this as
follows: ‘I think of my squad as a group of volunteers
that are here to work on something they are super-pas-
sionate about.’ Kniberg adds that in the case of engi-
neers super-passion rarely springs from spreadsheets,
but more frequently from meaningful innovations.
8 Releasing is easy
Product innovations are often delivered in small por-
tions, so that it also becomes a routine. So-called re-
lease trains and feature toggles ensure that the collabo-
ration between the various teams can be streamlined.28
By disconnecting the work from other activities, the
squads can continue to work autonomously, without be-
ing in the way of other squads.
9 The employees are the innovators
Where do the ideas come from? Give people ‘hack time’
and ‘let them play around’, because people are innova-
tors by nature. Spotify employees are encouraged to
spend 10 per cent of their time on ‘hack days’. This is
similar to Google's 20 per cent rule (sometimes cynically
called the 120 per cent rule29
). Here the new, sometimes
trail-blazing ideas are born. The first thing that matters
is creativity, not the question whether the idea is viable
or whether there is a demand on the part of customers.
So the slogan for the Spotify hack week is: ‘Do whatever,
with whoever, in whatever way’.
10 Don't waste time on nonsense
The focus on waste in the Lean method has resulted in a
list of experiences that provides a pretty good insight
into how things are done with Spotify. Kniberg lists what
does not work: ‘Time reports, handoffs, useless meet-
ings, separate test phases, task estimates, corporate
bullshit.’ What does work: ‘Google docs, daily standups,
GIT, unconferences, retrospectives.’
28 See e.g., http://scaledagileframework.com/agile-release-train/ en https://en.wikipedia.org/wiki/Feature_toggle
29 http://www.businessinsider.com/google-20-percent-time-policy-2015-4
25. 25
8 ING BANK INTO DEVOPS
More and more organizations are becoming aware of the
possibilities of DevOps, but few traditional organizations
are carrying through the ambition to introduce DevOps
to such an extent as ING Bank. Paraphrasing a statement
of Bill Gates of 1990, Wouter Meijs, head of ING Bank's
delivery center, does not mince his words when it comes
to the 'why': 'people need banking, not banks'. Twen-
ty-five years later all banks are struggling with the prob-
lem how to respond to the FinTech storm. ING Bank's
response is to address the culture, which means intro-
ducing a different way of working. Like Google, CIO Ron
van Kemenade aims to attract the best talents in the
market. With the engagement resulting from DevOps,
the bank feels it holds a winning card.
ING's first step was to speed up the development of soft-
ware iterations, initially by introducing Agile, but soon
after that by fully concentrating on DevOps. According to
ING, the following tangible results were achieved with
this approach:30
• Accelerated innovation: the time-to-market for new
functions and ideas was reduced from more than 20
weeks to approximately four days.
• Risk reduction: the test coverage rose from 20 to 80
per cent and the overall risk fell.
• Customer satisfaction: the app rating for ING apps in
the appstore went from one to 4.5 stars.
Around 2012, ING still went all-out for CMMI, Prince2 and
ITIL, but the bank experienced increasing instability in
the production. This crippled innovation, as they had to
cope with an increasing number of acceptation criteria.
It was becoming evident that if ING Bank did not change
course, it would increasingly be faced with disruptive
developments. By that time some of the teams switched
to Agile and Scrum, and to be honest: this proved a fruit-
less exercise at first. But as they gained more experi-
ence with this approach, they gradually outstripped oth-
er teams. To such an extent, even, that it led to a clash
between development and other activities: operations
could not handle the amount of new releases produced
by development. So it was decided to merge the two
teams and work on DevOps. There are currently over 150
teams in the bank basing their work completely on
DevOps. And not just at the front-end, building apps and
websites: there are ten DevOps teams working on the
core-banking systems, which form the basis for the ser-
vices. Following Spotify, ING Bank introduces ‘tribes’
and ’squads’ and abandons the existent compartmental-
ized departmental functions.31
30 This demands a short comment. In the period January to September 2014, ING were bothered by major breakdowns for 18
days, and led the field in this area. Source: http://tweakers.net/nieuws/98740/ing-is-koploper-met-storingen-bij-gemiddeld-
twee-storingen-per-maand.html
31 Source: ING, 'Agile way of working at ING Netherlands', https://www.youtube.com/watch?v=NcB0ZKWAPA0
ING's DevOps trek: from Scrum to Dev and DevOps, having the
business work in squads, and now formulating the Next Step.
TRANSITION OF THE ORGANIZATION
2011 2013 2015
Scrum Dev Dev
Ops
Business
in squad
Next
Step
Squad Squad Squad Squad
Chapter
Chapter
Agile
Coach
Tribe Lead
P P P P
DEV PO OPS
26. 26
The issues ING was faced with were huge and many: how
do you guide people in this transition? How do you train
them, and how do you attract new talent? And how do
you sell this policy inside the organization? Even the re-
lationship with suppliers has changed: instead of large
SLAs with releases of six to twelve months, ING now has
many smaller and far more frequent releases, 100 per-
cent availability and co-sourcing. And where the distance
between business and IT was fairly large initially, the
commercial stakeholders are now directly involved in
prioritizing and defining the Minimum Viable Products.
In the progression from Scrum to DevOps, the step has
been made to really make the business a part of the
squads and cooperate even more closely. For ING this
meant a major transition, but not an optional one. Or, in
the words of Henk Kolk, chief architect of ING: speed =
market share and 'software is eating the world’. Kolk is
convinced that existing firms have no future if they do
not step up and drop the old dogmas.
The video ‘Agile way of working at ING Netherlands’ can be
viewed on YouTube, https://www.youtube.com/
watch?v=NcB0ZKWAPA0
27. 27
9 SUCCESS STORIES AND EARLY
PRACTICES
Apart from ING Bank and Spotify (and numerous other
digital startups), we see DevOps initiatives with Nasdaq,
retailer Target and Lego (who employed Spotify expert
Kniberg to this end) and General Electric (in the process
of setting up one of its largest turnaround projects), and
the list is getting longer by the day. The direction is
clear: more and more organizations are seeking the an-
swer to digital disruption in the combination of acceler-
ating the innovation process, a culture with self-organiz-
ing employees and customer obsession as the focus for
every activity. A few more examples are listed below.
Government
When the new healthcare act was passed in the USA, a
website was needed where people could sign up. When
it was launched, the site was far from user-friendly. It
contained a lot of bugs and was instable. In consequence
people protested strongly against this ramshackle course
of things. The situation changed completely when a new
team was engaged, a DevOps team, which introduced all
the principles listed above. This turn proved a great suc-
cess.
The British gov.uk also deploys DevOps successfully.
They pride themselves on the way they deal with their
mistakes. Or, as they put it themselves: ‘Serious inci-
dents trigger blameless postmortems.’ The person in-
volved in an incident writes a report that is widely dis-
seminated in the organization. Shortly afterwards all
people involved meet for a postmortem to figure out
how this problem can be avoided next time. The reaction
time to solve problems has been increased considerably.
They claim, for example, that thanks to the DevOps
method of working,32
rapid intervention could take place
after the discovery of the Heartbleed bug.
Insurance
The American insurance company Nationwide claims
success thanks to DevOps.33
They started small and have
now implemented DevOps everywhere. The productivity
has increased, the quality has gone up and the downtime
for the end user has fallen by 70 per cent.
Retail
Target recently financed an in-house incubator to teach
engineers and senior IT managers to work in a DevOps
model. The DevOps initiative at Target began over three
years ago as a grassroots movement, but is now making
good progress.34
The new organizational approach is pri-
marily focused on a closer co-ordination between engi-
neers and product deployment, and on more flexible
development and testing of applications.
And there are others, such as Western Union, airline
company Qantas, health insurer Humana, GE Transporta-
tion and Verizon, in different sorts of industries, in dif-
ferent countries and each with a specific focus and ma-
turity.
32 http://heartbleed.com/
33 https://www.youtube.com/watch?v=_uprgTAMA_Q
34 http://blogs.wsj.com/cio/2015/10/19/target-rebuilds-its-engineering-culture-moves-to-devops/
28. 28
10TEN FINAL DEVOPS
QUESTIONS
Particularly after sharing these success stories, the
question arises if it is all too good to be true. Where are
the limits of what is possible? Do we know precisely what
the consequences are?
1 What are we letting ourselves in for?
This is a major operation. ‘No easy fixes’ may sound
easy, but it requires enormous discipline and conviction.
It is about a top-down power and control shift. About
introducing new roles and functions, and disappearing
management layers. It is a new method of working that
everyone has to get used to. Finance, HR, operations,
marketing, project management, IT: nothing will be left
untouched. Similarly, the Minimum Viable Product ap-
proach demands perseverance, and there is no such
thing as a watertight guarantee for success. We refer to
the critical remarks in this context by Scott Anthony
(‘The Dangers of the Minimum Viable Product’), from the
school of Clayton Christensen.35
2 Is DevOps suitable for everyone?
Like the question ‘Is the cloud for everyone?’, this ques-
tion can be answered with a simple 'yes'. You may also
ask yourself what alternatives you have to innovate fast-
er and keep up with your customers, to flesh out the
‘focus on the customer’ concept and ensure more en-
gagement on the shop floor. Or how do you think you can
prevent mistakes in the operation without optimizing
the IT processes (Automate)? In short, chances are that
you will end up with the very same elements as those of
DevOps. But this brings us to the next question.
3 Does DevOps apply to the entire IT
organization?
DevOps is a new method of working that has its origin in
digital production environments. Here the deployment
of DevOps for the back-end environment (which is not
designed to be operated in a DevOps manner) is being
questioned. A solution that is often suggested is a ‘two-
speed IT’ approach. IBM, for example, proposes to sepa-
rate the ‘Cloud Native’ and the ‘Cloud Enabled’ teams.
The one type of team focuses on the fast release cycles,
the other on matters such as uptime etc. Both use
DevOps, however. It is true that we find similar separa-
tions with the digital startups, but they strive for the
same ‘engineering culture’. Two-speed IT, or ‘bimodal
IT’, seems to suggest that a watershed can be realized
quite easily.
4 Can DevOps be effective for the entire
organization?
Some call it the ‘Spotify next step’: DevOps for the en-
tire organization, including non-IT sections such as sales
and the legal department. For the majority of the orga-
nizations that have adopted DevOps, this territory is now
being explored. In this context, it is important to realize
that what is perhaps still ‘non-IT’ today, will have a sub-
stantial digital component tomorrow. Sales automation
and digital legal consultancy, for example, are advanc-
ing. Organizations are already experimenting with ‘agile
sales’, in which many DevOps principles can be recog-
nized. Challenge centers, where ‘decisions can be col-
lected' as an alternative to endless meeting, are other
examples of DevOps.
35 https://hbr.org/2012/04/the-dangers-of-teh-minimal-via
29. 29
5 But what about portfolio management,
security, architecture and compliance?
Basically, the DevOps approach can be applied to any
organizational duty, from closing a data center to an-
swering the supervisor's questions. These activities de-
mand a different kind of co-ordination — some would say
'military discipline'. Supervisors should not be burdened
with answers from different DevOps teams. Certain com-
petencies, tasks and authorities rest with the guilds.
They occupy themselves with matters that transcend the
tribe.
6 What does this mean for my software
architecture?
DevOps leads to an architecture that enables changes in
one place without necessitating adjustments elsewhere.
This applies to the architectural strata as well as the
functions. This is the reason why microservices and APIs
go so well together. An argument against this is that it is
easy to do many things quickly. When it comes down to
implementing a major transition, a more comprehensive
plan and another blueprint are required.
7 Can you prove that it works?
Real hard figures are missing. This is tricky obviously,
because where would you start? Calculating the ROI of
the possible survival of disruption? You can prove that
test automation is paying off, that standardized deploy-
ment models entail fewer mistakes. That business is
faster. We see ING's figures. We see successful startups.
The real figures have to come from your own customers.
How much more satisfied are they? And your employees
— are they more engaged, do they behave more like the
entrepreneurs in the organization? At the end of the day
you will have to prove that DevOps helps you survive in
the age of digital disruptions.
8 Can you learn lessons from others' mistakes?
We started this report with this very disclaimer. As in the
case of many 'approaches', DevOps too has to deal with
the problem that it is applied instrumentally. Here the
focus is on the process and on the standardization of
methods of working, instead of what DevOps stands for:
a culture of collaboration, individual initiative and mobi-
lizing bottom-up forces, of self-organizing teams. To pre-
vent the pitfall of an instrumental approach, you need
good people. Or conversely: the final result will be me-
diocre when mediocre people are made responsible for
the implementation of DevOps.
DIGITAL PLATFORM
Touch Points
Front-end Services
High-end Services
Low-end Services
Back-end Systems
Management
Management
30. 30
9 But those self-organizing teams — surely this
has been tried before?
We have known self-organizing teams for a long time,
and in fact they were never really gone. Elements of
self-organization are found in many management theo-
ries. The question is whether self-organization will make
a break-through and become more dominant. That pre-
diction has also been made before but has never proved
to be correct. The only thing we can add is that over the
years technology has changed. And that there is a more
natural match between current technology and self-or-
ganization. The manager's coordinating job as a middle-
man and supervisor is increasingly taken over by tech-
nology, from a simple WhatsApp group for a team, to
dashboards that provide real-time insight into the per-
formance. And finally we can state that the pressure to
organize management differently, on account of the in-
ertia in the traditional culture versus that of the digital
disruptors, is substantial. Self-organization is currently
regarded as a solution rather than a problem.
10 How to introduce it?
ING's drive to introduce DevOps evokes respect. But at
the same time, people refer to the risks that are being
taken. Which approach is to be preferred — the rigorous
or the careful one — remains to be seen. But the fact
that DevOps is introduced with continuous feedback
loops in order to learn is obvious: it is inherent in its
philosophy. Some say: 'For the time being I'm not going
to turn everything upside down' (when referring to the
existing organizational structure) and start off by aiming
to create a situation where values are paramount. This in
itself will drive away parochialism and promote collabo-
ration.
31. 31
11DESIGN TO DISRUPT
CONCLUSIONS
In this final report in the series of four about digital dis-
ruption one tricky question is central: what should an
organization do to suppress the startups assailing his
market? Or, to put it differently: what can we learn from
them? In two earlier reports we looked at aspects such
as the character of those startups, their design princi-
ples (New digital competition) and the acceleration of
innovation (An executive introduction). In these reports,
as well as in the third (on blockchain disruption), we al-
ready drew conclusions as to what challenges organiza-
tions are faced with. A summary follows next.
Ten conclusions from the previous reports
1. CIOs should lead the way in disruption. The CIO oper-
ates in the digital heart of disruption — his language
is digital.
2. Make a sacrifice in terms of efficiency, and go for
effective disruption. Your chances will increase:
nowadays the ROI on innovation is a lot more favor-
able.
3. Continuous Disruption is a rule rather than an excep-
tion. Prepare yourself by setting up an organization
with Continuous Design as the basic principle.
4. It is not the technology alone, but also how trust is
organized in markets. Employ distributed and bot-
tom-up systems that use different design principles
when it comes to generating trust.
5. ‘Rethink business models.’ Platform organizations
dominate markets and the business models for these
markets do not work along the same lines as in the
traditional markets.
6. Learn from the bilateral market players and their de-
sign principles. We formulated ten in the second re-
port.
7. Experiment with blockchain technology to quickly fa-
miliarize yourself with new organizational paradigms.
8. Go for APIs and make them the spearhead of your
digital strategy.
9. Design customer obsession. In the digital age custom-
er contacts are generated in their ‘mobile moments’.
10. Transform in four steps:
1) create a transformative vision on your digital fu-
ture;
2) involve employees in this vision;
3) develop a powerful new governance model;
4) merge IT and business and transform into techno-
logical platforms.
Sander Duivestein, Jaap Bloem,
Menno van Doorn, Thomas van Manen
VINT | Vision • Inspiration • Navigation • Trends
DESIGN TO DISRUPT
An Executive Introduction
1-D2D-cover.indd 1 17-03-15 10:38
Jaap Bloem, Menno van Doorn,
Sander Duivestein, Thomas van Manen,
Erik van Ommeren
vinT | vision • inspiration • navigation • Trends
DESign TO DiSrupT
new digital competition
Sander Duivestein, Menno van Doorn,
Thomas van Manen, Jaap Bloem,
Erik van Ommeren
VINT | Vision • Inspiration • Navigation • Trends
DESIGN TO DISRUPT
Blockchain: cryptoplatform for a
frictionless economy
32. 32
Mastering disruption with DevOps
In this last report we put forward the following proposi-
tion: you can keep disruption under control if you start
working with DevOps. This position is bold and as attrac-
tive as what Eric Ries claims in his website: ‘You don't
have to work in a garage to be a startup.’ Innovation
expert Clayton Christensen is equally positive: organiza-
tions ‘Can Survive and Thrive Disruption’.36
In this con-
text, Kevin Kelly, founder of Wired Magazine, said earli-
er: ‘you are not too late’: traditional organizations can
still catch up to yield digital success. We are, after all,
only at the very beginning of this new era, Kelly says. We
have summarized the conclusions from this report in the
following six points:
I The age of business disruption has begun
The digital startups are a phenomenon of these times.
They respond to the changed needs and opportunities in
this technological roll-out stage. This neo-Schumpeteri-
an view of the developments sheds a new light on inno-
vation. In this roll-out stage technological eruption is no
longer predominant, but business disruption is. The digi-
tal infrastructure, which has been built up over decades,
is taken into production. Adapting to this new era, which
in earlier reports we also called ‘The New Normal’, starts
with a transformative vision on your own organization.
There is no blueprint for this, but the digital enterprise
we described provides a number of clues.
II The digital enterprise as a beacon
Everything the digital enterprise does is digital: every
product and every service is digitally enriched. The dig-
ital enterprise is antifragile: a match for market distur-
bances. It is end-to-end secure by design and swiftly
transforms changing customer wishes into new services.
The digital enterprise is data sensitive: feedback loops
from assets and customers (empathic pulses) feed the
actions and it goes for facts over guesswork. The digital
enterprise works ecosystemically: all internal systems
are data-driven and opened up with APIs. The digital en-
terprise is built on value networks instead of value
chains. The digital enterprise is experienced as ‘delight-
ful’: as-a-service delivery has removed all handovers in
the processes. And the digital enterprise is experi-
ence-oriented: it generates world-class customer expe-
rience.
III There are no easy fixes: management
innovation is unavoidable
We sketched a picture of the path that could lead to this
digital enterprise: management innovation as an alterna-
tive to seemingly easy fixes. It seems attractive: buy a
startup and be successful. Or engage your attorneys to
enter into combat against the unfair competition of
startups. Or start up your own incubator, get on your
soapbox and proclaim your proposition that every em-
ployee is an entrepreneur. Produce a couple of Power-
Point slides saying that the customer must once again
become the focus of attention. Get on a plane to Silicon
Valley to copy the art. These are all mere trifles in com-
parison with the real challenge that organizations are
faced with: bending the rules and adjusting the culture
with a view to operating much faster, making the cus-
tomer the focus of attention once again and ensuring
that your employees are becoming engaged.
IV Address the hierarchy and the culture; kill
bureaucracy
Management was once just an invention among many
others, a ‘product’ of a certain era, says Gary Hamel.
And, just like innovating products, management will
need to be innovated to guarantee the success of an or-
ganization. Existing management and governance mod-
els are often in the way of organizations that are trying
to keep pace with developments. After all other forms of
innovation that we have witnessed over the last few de-
cades, it is now innovation of management that will in-
creasingly hold the spotlight.
36 C.M. Christensen M. Wessel, ‘Innovating over the Horizon: How to Survive Disruption and Thrive’, webinar, March 13, 2013,
https://hbr.org/2013/04/innovating-over-the-horizon-ho.html
33. 33
V Speed, customer obsession and engagement
Startups are faster, customer-obsessed and have a team
of extremely engaged employees. Many organizations
would give anything to have those elements. Our conclu-
sion is that if the gap between your organization and the
startups concerning these three elements is not bridged,
the disruptive forces will win.
VI DevOps and Lean Startup are forms of applied
management innovation
DevOps and Lean Startup are disciplines that practice
management innovation. In either case, the origin is in
managing digital products and services. It is only obvious
that the transformation should start there. It is under-
standable that the marketers first work with Lean Start-
up, where product innovation is just a little bit more
central. The IT people, who are also responsible for
building and maintaining those services, rather tend to
end up with DevOps. But these are only minor differenc-
es. Because when you start working on it, you start inno-
vating management: responsibilities in self-organizing
teams, the customer setting the course of the innova-
tion, minimizing bureaucracy.
VII Disclaimers
DevOps is not going to work if … And we could now make
a long list of arguments why business transformation
could fail. Let's leave it at these three:
• There is no transformative vision on digital disrup-
tion.
• Mediocre people start dabbling with it and the result
is an instrumental approach.
• There is a lack of true perseverance. It requires a
great deal of discipline and attention to make the
transformation succeed.
34. 34
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35. Sander Duivestein, Jaap Bloem,
Menno van Doorn, Thomas van Manen
VINT | Vision • Inspiration • Navigation • Trends
DESIGN TO DISRUPT
An Executive Introduction
1-D2D-cover.indd 1 17-03-15 10:38
35
Sander Duivestein, Menno van Doorn,
Thomas van Manen, Jaap Bloem,
Erik van Ommeren
VINT | Vision • Inspiration • Navigation • Trends
DESIGN TO DISRUPT
Blockchain: cryptoplatform for a
frictionless economy
Jaap Bloem, Menno van Doorn,
Sander Duivestein, Thomas van Manen,
Erik van Ommeren
vinT | vision • inspiration • navigation • Trends
DESign TO DiSrupT
new digital competition
This is the last report in a series of four publications on the subject of Design
to Disrupt. The other reports can be downloaded at http://labs.sogeti.com/
downloads. Here, among other things, you can also find the VINT reports on the
Internet of Things and Big Data, and our book on cyber security.
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