Pivotal day seminar @ seoul on Nov 20, 2016

1. 1
Pivotal Seminar
PCF Customer Success Story
Minseok Kim
Sr. Platform Architect
mkim@pivotal.io

2. 2
About me
- 김민석 (mkim@pivotal.io)
- Platform Architect @ Pivotal
- Big-data Developer
- Software architect
- Software Quality Engineer
- Developer
https://www.facebook.com/groups/CloudfoundryKorea
https://www.meetup.com/Seoul-Cloud-Foundry-Meetup

3. § Digital Disruption with Pivotal
§ Success story at Banking Business
§ Key takeaways
목차

4. Our mission is to transform
how the world builds software
Powering Digital Transformation
Across All Industries

5. 5
DIGITAL DISRUPTION IS
CHANGING THE WAY
BANK BUSINESS IS DONE

6. 6
https://www.cbinsights.com/blog/increasingly-crowded-unicorn-club/
Software가 가져온 산업영역을 넘어선 혁신

7. 7
JUNE 9, 2016
Startups이 잠식하는 기존 Big Banks
https://www.cbinsights.com/blog/big-banks-tech-challenges/

8. 8
Francisco Gonzalez, CEO
“Banks need to take on Amazon and
Google or die. The shift to digital
requires a complete overhaul of
banks technology…it is a matter of
survival.”
Startups이 잠식하는 기존 Big Banks

9. 9
New entrants
• FinTech startups
• Tech entering finserv
• Blockchain
DisruptionAccelerating market
changes:
• Demographics
• Tech innovations
Hostile regulatory
environment:
• CFPB
• Basel III
• Political uncertainty
Banking업계의 위협요인

10. 10
Disruption
3 Strategic Choices:
1. Retreat (sell/close)
2. Do nothing (die)
3. Innovate (build/buy)
Competitive
Advantage
Threat Opportunity
Customer focus
Experimentation
Speed, quality at scale
위협을 기회로

11. 11
Yesterday Tomorrow
Few Apps Many
Low Experimentation High
Low Fails Many
Few Wins Some
Monolithic Architecture Decoupled
Tightly- Services Micro, Loosely-
Coupled coupled
Custom Data Stores Heterogeneous
기회를 이용하기 위한 방법론
People Enablement – Transformation
Customer-Driven Product Management

12. 12
Retail and
Commercial
Banking
Capital
Markets
Investment
Banking
Brokerage/
Wealth
Management
Insurance
Service
Providers
Pivotal과 손잡은 다양한 영역의 금융고객

13. 13
금융고객들의 목표
Accelerate the bank’s digital transformation journey and speed of innovation
Enable Speed to Market ● Compete effectively against agile startups and
fintech companies
● Ability to respond to customer needs immediately
● Fast feedback loops which reduces risk
● Cloud Native Platform enables automation of
previously manual tasks - driving efficiency
Deliver Customer Experience & More Value ● Customer driven product development limits
waste, reduces investment in non ROI products
● Improved employee happiness - working on
customer valued products that change the
business outcomes of a company
Engage Workforce ● Developers who love their job
● Business & IT working together to deliver
products to customers - revenue growth
● Reduction in attrition
● Easy to hire top talent

14. 14
Pivotal의 Transformation 접근방식

15. 15
Pivotal의 조직 Transformation 철학
Aligning on the
Transformation
Vision
Understanding
the End to End
Process
Assessing the
Impact to How
People Work
Evaluating
the Tools
Needed
Cross-Functional Leadership and Participation
Transformation Metrics

16. 16
Not open to
continuous
improvement
Org sees IT as
a cost center
Business
partners are
not joining on
the journey
No cross
functional
sponsorship
Funding model
doesn’t enable
experimentation
Lack of clarity for
middle management
on vision and
execution
We don’t know how
to source, assess
new talent
Hiring and recruiting
practices do not
allow us to compete
for talent
Legacy
processes
Risk
Averse
Transformation에 대한 어려움

17. 17
Sponsor Driven
Product Development
Customer Driven
Experiences
Prescribed Schedule,
Cost, and Scope
Functional Focused
Teams
Team Spends Significant
Time On Administration
Shared Services as a
Control Function
Outcome Focused:
Build, Measure, Learn
Customer Focused
Balanced Teams
Team Spends Most Time
Developing Product
Shared Services as an
Enablement Function
Starting Point Transformation
Portfolio planning and financing not conducive to learning
outcome approach
At Pivotal Labs, staff focused on development. Risk of
reverting to old behaviors when staff returns
Processes and organizations within and external to IT
create a justification and burden of proof environment
Business sponsors are not aligned or not educated with
customer driven product management discipline
Staff being recruited and trained. Skill gaps in Tech team,
Product Management role not developed, design outsourced
Predict and Request
Infrastructure
Waterfall
Self-service Agile
Infrastructure
Continuous Delivery
and Integration
Platform and Operations Team being formed.
Organization still underdevelopment
Environments and processes create wait states and
accumulated risk
Traditional Space
Collaborative, Co-
located, Agile/XP Space
Colocation starting to occur
Monolithic
Applications
Cloud Native
Architectures
Adoption by teams
Pivotal Transformation Journey
1-2 Years
Iterate & Learn
2 Years +
Scale *- with PartnersDiscovery & Direction
0-12 Months

18. 18
Pivotal Platform Transformation Journey
PRODUCTIONOPERATEDEPLOY
1 2 3 4 5 6
MONTH
Pre-Work Complete
Pre-Prod Deployed
Final Deploys
Done System Enhancements /
Upgrades
Help with App Deploys
7 8 9 10 11 12
SERVICES
SOLUTION ASSURANCE
CUSTOMER SOLUTION DIRECTOR* – A designated customer advocate building rela4onships, measuring value and coordina4ng customer success
PLATFORM DOJO
DESIGNATED SUPPORT ENGINEER* – An expert DSE providing “white glove” product support during year 1 of PCF opera4ons
A 6wk Dojo to enable a small-scale produc4on environment.
OPS DOJO
APP REPLATFORMING
3mos of SA coverage to help the customer along with plaKorm enhancements.
A 6wk Ops Dojo to enable “at-scale” tooling, processes, etc.
10wks to re-plaKorm 10s of apps
Deliver At-Scale Prod
Process Models
Move 10s of Apps to PCF;
drive Year 1 AI ConsumpIon

19. 19
Pivotal Labs의 Team Training 방식
DESIGNER
PRODUCT
OWNER
DEVELOPERS (2-3 PAIRS)
EXPERT
NOVICE
6 MONTHS 9 MONTHS 1 Year
ATOMIC
TEAMS
• Responsible for an app, service or
capability from end-to-end
• Developers work in pairs: two
people with one CPU
• Supported by Agile Ops
FOUR MONTHS FROM
‘GOOD’ TO ‘GREAT’
• Citi devs join ‘Pivots’ to pair
program
• Immersion allows them the
return to home as ‘pairing
leads’

20. § Digital Disruption with Pivotal
§ Success story at Banking Business
§ Key takeaways

21. 21
• First bank in Southeast Asia to run Cloud Native
applications on Pivotal Cloud Foundry,
progressing from traditional legacy systems to a
highly scalable and flexible environment
• Accelerate the bank’s digital transformation
journey and speed of innovation
• Redefine the banking experience for over 6 million
consumer and corporate customers across Asia,
and to compete effectively against agile startups
and fintech companies
DBS bank 사례

22. 22
• 변화는 혁신(revolution)아 아닌 점진적(evolution)
• customer experience 중심으로 한 변화
• 과거 은행이 안했던 실험(experiment)를 통한 서비스 개선
• data driven 서비스 개선, AI기반서비스 시작.
• agile team 구성을 통한 조직 체질개선
• fully automating everything
https://www.youtube.com/watch?v=YFtuS3wUpLs&feature=youtu.be
DBS & Pivotal

23. 23
https://www.dbs.com/newsroom/DBS_named_worlds_best_digital_bank
The world best fin-tech award 2016

24. 24
Citi bank
http://seekingalpha.com/article/3524176-capital-return-review-citigroup

25. 25
• Global organizational shift toward a next
generation agile mindset with their Product
Managers, Developers and Program Managers
• Needed the agility required to push products to
market faster and cost effectively
• Added modern, real-time, customer-centric
features to the bank’s P2P money transfer
product
Citi bank 사례

26. 26
Citi의 Objectives
● Citi seeks a structured and rational method for measuring progress and aligning
practices among teams.
● Citi wants to have situational awareness of its efforts in the context of technology best
practices, including Lean Startup, Spotify Squads, etc.
● Citi seeks to build on the holistic and interdisciplinary efforts of its Task Force Teams:
controls, testing, release & demand management, business alignment, and staffing
● Citi’s objectives should be practical: Provide a framework for Citi’s agile implementation
that promotes consistency but allows for flexibility when dictated by business needs

27. 27
https://www.youtube.com/watch?v=WDvCIhfb6y4&feature=youtu.be
SpringOne Platform 2016

28. 28
Mission statements

29. 29
● Starting to see agility in the organization, acceptance in external cloud providers
(e.g. Amazon and Azure)
● Looking forward there is a path to bring out new capabilities
● Plan to save $$$M in agile development in 2017 on a cloud platform
Business Benefits(1년 경과)

30. 30
고객가치 중심의 역량집중

31. 31
32%
18%
14%
5%
5%
5%
21%
Family Member
Friend
Other
Service provider
Work colleague
Social acquaintance
Spouse
70% of payments occur between friends and
family members…
Note: Other includes tips, emergency, gambling, gaming, club fees, child
… and are dominated by six use cases
% of P2P Txns
Source: Aite Group Survey, 2010
U.S. P2P Allocation by Recipient
70%tofriends&family
Splitting bills
(including restaurants)
Charity & fundraising
Repayments
Purchases
(casual selling)
Gifts and occasions
Financial support
and transfers
37%
Use cases
9%
9%
9%
15%
Other
5%
16%
70%tofriendsand
family
고객의 성향분석

32. 32
고객중심의 서비스 concept 테스트

33. 33
조직 체질 개선

34. 34
Citi fintech에 최적화된 balanced product team
● Compliance analyst part of balanced product team
○ member of weekly iteration team to prioritize, define and
estimate
● Compliance requirements captured as part of acceptance criteria
● Balanced team is aligned with business goals and milestones
● Compliance requirements are captured as tests
○ TDD ensures compliance helps drive software design
○ outcomes are validated via CI
○ CD ensures compliance requirements are met before
deployment
○ CD provides an audit trail for all artifacts tested
4 Engineers
1 Product Manager
1 Designer 1 Compliance Analyst

35. 35
Citi fintech에 최적화된 balanced product team
Balanced
Product
Team
● Customer driven digital product development capability is broader than an organization, a development
methodology, a tool set, or a physical space
● It is an ecosystem of processes, organizations, practices, skills, and space unified by an “explore and
learn” culture and shared goals, focused on delivering value to the customer
Customer Experience and Business Need
Balanced Platform Operations Team
Balanced
Product
Team
Balanced
Product
Team
Balanced
Product
Team
HR Finance Procurement Legal
Customer
Focused
Goals &
Processes
Build –
Measure
- Learn
DNA
Flip-
flops &
Beer
Culture

36. 36
Citi Bank 소속 개발팀 양성

37. 37
프로세스 개선(Today): Approval Driven
APP DEV QA OPERATIONS
CHANGE
MGMT
SECURITY COMPLIANCE
APPROVER APPROVER APPROVER APPROVER
infrastructure

38. 38
프로세스 개선(Tomorrow): New Process at Citi FinTech
38
Dev
Tests
Continuous
Integration
Exploratory
Testing
Acceptance
Testing
Stakeholder
Feedback
User
Feedback
As a programmer, did I
write the code I intended
to write?…
…without violating any
existing expectations in
the code?
Did we introduce
any unintended
consequences?
Did I get the feature
I asked for?
As a team, are we
headed in the right
direction?
Are we producing something
our customers/users love?

39. 39
프로세스 개선(Tomorrow): Self-Service, Self-Healing
APP DEV QA OPERATIONS
CHANGE
MGMT
SECURITY COMPLIANCE
infrastructure
CUSTOMER FACING APP
PLATFORM
CHOICE
SELF-SERVE
SELF-HEALING

40. 40
서비스 배포 Pipeline 개선(today)

41. 41
서비스 배포 Pipeline 개선(tomorrow)

42. 42
System design 개선(today)

43. 43
System design 개선(tomorrow)

44. 44
System design 개선(tomorrow)

45. 45
Overall Tomorrow

46. § Digital Disruption with Pivotal
§ Success story at Banking Business
§ Key takeaways

47. 47
Pivotal의 조직 Transformation 철학: re-cap
Aligning on the
Transformation
Vision
Understanding
the End to End
Process
Assessing the
Impact to How
People Work
Evaluating
the Tools
Needed
Cross-Functional Leadership and Participation
Transformation Metrics

48. 48
이러한 목표/변화가 필요하다면,
§ Convert Threat to Opportunity by building Competitive Advantage
§ Have Transformation vision to be both strategic and practical
§ Do Customer focus experimentation speed, quality at scale
§ Enable Agile team by doing
§ Do Productive operation with fully automated platforms
§ Make Happy company with balanced team aligned with vision

49. 49
Let’s help you become a disruptor
TOGETHER