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

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Next Generation IT

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