Leading Digital Success - Tetris - TOPS

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This document provides guidelines for leading successful digital transformations. It discusses that transformations require changes across technology, organizational design, product design, and strategy. Leaders must define a clear target state across these dimensions and align all elements, keeping the alignment consistent over time. The document recommends starting small with a minimum viable product, using a lean approach, and transforming organizations in thin slices while continuously delivering value.

Technology

LEADING
DIGITAL SUCCESS
Our holistic approach to leading units
which develop and run digital products.
A guideline for success and an approach
to start and transform your enterprise.
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

HAPPENING NOW:
EXPONENTIAL
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential
Moore’s Law
& Adoption Rates

THE KODAK
MOMENT:
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

THE KODAK
TREND:
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

NEW BUSINESS
MODELS & VALUES
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential
Instagram SIEMENS
Employees 13 348.000
Profit 0 7 B€
Worth 1 B $US 100 B€
Year 2012 2015

LIFE WITH IT
IS LIKE TETRIS
You already have a legacy
New stuff will hit you!
(ever faster and always different)
You need room
to shape the business
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

Technology Org-Design Product-Design Strategy
FEW DIMENSIONS BUILD
THE BASIS FOR SUCCESS
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential
Culture

EACH DIMENSION HAS
ELEMENTS, THEY ALL
DEPEND ON EACH OTHER
Cross
Functional
Teams
Cloud
Technology
Lean
Product
Development
Lean Value
& Portfolio
Management
Top Four:
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

ALL ELEMENTS NEED
ALIGNMENT
Your action items as a leader:
1. Define the desired state along the four key dimensions
2. Align all elements with each other to fit your needs
3. Keep the alignment consistent over time
4. Iterate towards it
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

OUR EXPERIENCE
AND YOUR BENEFIT
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential
Individual
and reliable
target state
Scalable
approach to
transform

BASED ON OUR EXPERIENCE
FROM ONGOING TRANSFORMATIONS
Relaunch of otto.de
Continuous Delivery
Agile Transformation
Project Tatsu
.net to Scala
Inhouse to Cloud
Agile Transformation
Digital Readiness
B2B Food Delivery
Offline First HTML5 Apps
Agile Transformation
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

Org Design
CROSS FUNCTIONAL TEAMS
AND THEIR DEPENDENCIES
Cross
Functional
Teams
Microservices
MVPs & MMPs
Autonomous Teams
Lean Product Development
Continuous Delivery
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential
Lean Value- & Portfolio Management

©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

MINIMUM VIABLE
PRODUCT
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

LEAN PRODUCT
DEVELOPMENT
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

POPULAR
TARGET STATE (T)
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

POPULAR
TARGET STATE (O)
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

WITH A CLEAR UNDERSTANDING
OF THE TARGET STATE
Technology Org Design Product Design Strategy
TargetState
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

... START, SUCCEED
AND SCALE THE CHANGE
Approaches
Lean
& Focus
Change as
social
Movement
Slice-by-Slice
End-2-End
Kick
Start
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

VC STYLE
BUDGETING
Small budget e.g. 150-200 K€
Short time e.g. 8 weeks
Measurable target
Results within budget and time
Success → Continue
Scale with success:
bigger teams, more teams
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

KICK START WITH EXTERNALS -
BACKFILL OVER TIME
Corporate Design
Infrastructure / Operations
1st and 2nd Level Support
Compliance
CIO
LVPM
T1 T2 T3 ... Tn
...... ...
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential
THIN SLICE
END-TO-END TRANSFORMATION

CHANGE ORGANISATIONS FROM
LINEAR EXECUTION TO LOOPS
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

SMALL SLICES
END-2-END TRANSFORMATION
Team1
Team2
Teamn
1
Microservices
& Product Teams
Typical Enterprise
Architecture
Common Principles
& Values
...
Transform piece by piece
while delivering value
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

SMALL SLICES
END-2-END TRANSFORMATION
Team1
Team2
Teamn
1
2
2
Microservices
& Product-Teams
Typical Enterprise
Architecture
Common principles
& values
...
Transform piece-by-piece
while delivering value
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

SMALL SLICES
END-2-END TRANSFORMATION
Team1
Team2
Teamn
1
2
3
3 2
3
Microservices
& Product-Teams
Typical Enterprise
Architecture
Common principles
& values
...
Transform piece-by-piece
while delivering value
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

SPEED OF
ADOPTION
Start
Small
Prove
Success
Scale
Scope
of the
Transformation
Duration
of the
Transformation
Potentially, not
everything is agile
Initial
Phase
Finalization
Phase
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

MASTERING ONE DIMENSION
IS NOT ENOUGH
There are many complex elements in each dimension (see below).
And there are many experts specialising into one dimension only.
• Cloud
Technology
• CI / CD
• Microservices
• Mobile First
• TDD
• …
• Cross-Functional Teams
• Product / Project Teams
• Processes
• Quality Gates
• DevOps vs. Operations
• …
• Lean Product
Development
• Hypothesis Driven
Development
• Design Thinking
• MVPs / MMPs
• …
• Lean Value and
Portfolio
Management
• Output > Throughput
• Sourcing Models
• VC Style Budgeting
• Planning Cycles
• …
Technology Org Design Product Design Strategy
As a Leader, you need to balance all of them to be successful.
No single measure / method / technique will yield the expected results alone.
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

LEADING
DIGITAL SUCCESS
Enjoy the game - enjoy IT
©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

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Leading Digital Success - Tetris - TOPS

1. LEADING DIGITAL SUCCESS Our holistic approach to leading units which develop and run digital products. A guideline for success and an approach to start and transform your enterprise. ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

5. NEW BUSINESS MODELS & VALUES ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential Instagram SIEMENS Employees 13 348.000 Profit 0 7 B€ Worth 1 B $US 100 B€ Year 2012 2015

6. LIFE WITH IT IS LIKE TETRIS You already have a legacy New stuff will hit you! (ever faster and always different) You need room to shape the business ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

7. Technology Org-Design Product-Design Strategy FEW DIMENSIONS BUILD THE BASIS FOR SUCCESS ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential Culture

8. EACH DIMENSION HAS ELEMENTS, THEY ALL DEPEND ON EACH OTHER Cross Functional Teams Cloud Technology Lean Product Development Lean Value & Portfolio Management Top Four: ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

9. ALL ELEMENTS NEED ALIGNMENT Your action items as a leader: 1. Define the desired state along the four key dimensions 2. Align all elements with each other to fit your needs 3. Keep the alignment consistent over time 4. Iterate towards it ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

10. OUR EXPERIENCE AND YOUR BENEFIT ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential Individual and reliable target state Scalable approach to transform

11. BASED ON OUR EXPERIENCE FROM ONGOING TRANSFORMATIONS Relaunch of otto.de Continuous Delivery Agile Transformation Project Tatsu .net to Scala Inhouse to Cloud Agile Transformation Digital Readiness B2B Food Delivery Offline First HTML5 Apps Agile Transformation ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

12. Org Design CROSS FUNCTIONAL TEAMS AND THEIR DEPENDENCIES Cross Functional Teams Microservices MVPs & MMPs Autonomous Teams Lean Product Development Continuous Delivery ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential Lean Value- & Portfolio Management

21. WITH A CLEAR UNDERSTANDING OF THE TARGET STATE Technology Org Design Product Design Strategy TargetState ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

22. ... START, SUCCEED AND SCALE THE CHANGE Approaches Lean & Focus Change as social Movement Slice-by-Slice End-2-End Kick Start ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

23. VC STYLE BUDGETING Small budget e.g. 150-200 K€ Short time e.g. 8 weeks Measurable target Results within budget and time Success → Continue Scale with success: bigger teams, more teams ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

24. KICK START WITH EXTERNALS - BACKFILL OVER TIME Corporate Design Infrastructure / Operations 1st and 2nd Level Support Compliance CIO LVPM T1 T2 T3 ... Tn ...... ... ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

28. SMALL SLICES END-2-END TRANSFORMATION Team1 Team2 Teamn 1 Microservices & Product Teams Typical Enterprise Architecture Common Principles & Values ... Transform piece by piece while delivering value ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

29. SMALL SLICES END-2-END TRANSFORMATION Team1 Team2 Teamn 1 2 2 Microservices & Product-Teams Typical Enterprise Architecture Common principles & values ... Transform piece-by-piece while delivering value ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

30. SMALL SLICES END-2-END TRANSFORMATION Team1 Team2 Teamn 1 2 3 3 2 3 Microservices & Product-Teams Typical Enterprise Architecture Common principles & values ... Transform piece-by-piece while delivering value ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

31. SMALL SLICES END-2-END TRANSFORMATION Team1 Team2 Teamn 1 2 3 3 2 3 Microservices & Product-Teams Typical Enterprise Architecture Common principles & values ... Transform piece-by-piece while delivering value ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

32. SPEED OF ADOPTION Start Small Prove Success Scale Scope of the Transformation Duration of the Transformation Potentially, not everything is agile Initial Phase Finalization Phase ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

33.

34. MASTERING ONE DIMENSION IS NOT ENOUGH There are many complex elements in each dimension (see below). And there are many experts specialising into one dimension only. • Cloud Technology • CI / CD • Microservices • Mobile First • TDD • … • Cross-Functional Teams • Product / Project Teams • Processes • Quality Gates • DevOps vs. Operations • … • Lean Product Development • Hypothesis Driven Development • Design Thinking • MVPs / MMPs • … • Lean Value and Portfolio Management • Output > Throughput • Sourcing Models • VC Style Budgeting • Planning Cycles • … Technology Org Design Product Design Strategy As a Leader, you need to balance all of them to be successful. No single measure / method / technique will yield the expected results alone. ©ThoughtWorksDeutschlandGmbh-Vertraulich-Confidential

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