Multi speed IT
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This document discusses the business and organizational implications of multi-speed IT. It begins by setting the stage on how information growth, disruptive innovations, and market speed are accelerating exponentially. It then discusses the concepts of multi-speed IT and how systems of innovation can operate differently than traditional systems of record. The document outlines some technical, business, and organizational challenges that multi-speed IT presents. It concludes that while multi-speed IT adds complexity, it allows organizations to embrace change while maintaining existing systems.
Multi speed IT
- 1. Business and Organizational implications of Multi-Speed IT Dr. Joachim Baumann CEO dibuco GmbH [email protected] BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 1
- 2. Agenda • Setting the Stage • Multi-Speed IT • Technical Challenges • Business Implications • Organizational Implications • Conclusion BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 2
- 3. Setting the Stage • Global Information Growth • Disruptive Innovations become faster • Market Speed accelerates exponentially • Market Entry becomes less expensive Classical Market Approaches no longer work BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 3
- 4. BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 4 Global Information Growth IDC “Digital Universe” Study 2011 Europäische Buchproduktion 500–1800* 1 000 000 000 100 000 000 10 000 000 1 000 000 100 000 10 000 1000 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Jahrhundert * Ohne Südosteuropa (byzantinischer, später osmanischer Bereich) und Russland AnzahlderExemplare Manuskripte Gedruckt e Bücher • Information grows exponentially • Information is globally accessible • Speed of Change accelerates Half life of Information grows shorter Validity of Models based on this information • 300 years ago: A life-time • Today: 2-5 years • In 10 years: 1 year?
- 5. BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 5 Disruptive Innovation Performance Time Clayton Christensen – “The Innovator’s Dilemma” • Disruptive Innovations start in Niches • Grow and overtake the Market • Speed of Innovation grows with Information • Half life of Products grows shorter Interesting: Classical Companies are not surprised
- 6. BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 6 Examples of Disruptive Technologies
- 7. BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 7 • Initial Costs for Companies have become ridiculously low Market Entry: Cost Atlassian Google Apps Salesforce Sipgate Scopevisio → less than 200€ / Month Example 3D Printer • Price 200€ - 2.000€ Print Services e.g., makeyourproduct.com Arduino (starting at 1€) WLAN Processors (starting at 2€) Raspberry (30€) Software Companies Hardware Prototyping as a Service Prototyping of Embedded-Systemen Market entry Costs no longer prohibitive in most Markets
- 8. BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 8 Result: Crowdfunding Small Companies testing new Ideas
- 9. Hierarchical Companies • Focus on the knowledge of the person at the helm of the organization • Assume a slow-changing Market Model • Very good suited for predictable environments and rational decisions • Create a specific Company Culture based on Company Strategy • Adaptation Speed is limited • Humans can very efficiently categorize and decide based on Model and Culture BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 9 CEO Department Head Department Head Team Lead Team Lead Team Lead Team Lead Team Lead Team Lead
- 10. Effects of a Hierarchical Organizations Every hierarchical organization follows • Vision, Mission, Strategy based on a Model and a Paradigm • These effectively limit your „Universe“ (see Conway‘s law - ) Hierarchical Organizations align strongly to the strategy (see Chandler, Drucker) • Optimization of each sub-hierarchy • Changes in Strategy lead to structural Changes Change needs time (5-7 years) Why: Because this is a Cultural Change BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 10 Peter Ferdinand Drucker, “The Practice of Management”, Harper & Row, 1954 Alfred Chandler, "Strategy and Structures”, MIT Press, 1962
- 11. Potential Solutions Secure a Niche • Choose a Market with High Entry Costs Change the Market • Limitations through external Regulations • Current Example: Uber • Lobbyism Works only a limited time Adapt to the Market Shorter Product Cycles with continuous Adaptation to Market Changes BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 11
- 12. Multi-Speed IT: A Solution? BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 12 Systems of Innovation Systems of Differentiation Systems of Record Nonlinear Mode Accept instability (DevOps, Agile) “Sprint” Traditional Mode Required Reliability (ITIL, CMMi, COBIT) “Marathon” - + Governance + - Change
- 13. Multi-Speed IT: Architectural View BPUG, Dienstag, 31. Januar 2017 13Strategy FS FFM.pptx Core Systems Systems of Record Interface Systems of Innovation System Type • Fast moving • Short-lived • Agile • Market-driven • Based on experiments System Type • Slow-Moving • Evolutionary • Risk-averse • Classical approach
- 14. Technical Challenges • Different Development Speeds • Well-defined Interface needed • Interface has to buffer the different Speeds • System of Innovations cannot wait for Systems of Records Development • Different Development Processes • Friction Loss and wasted Efforts • Different Development Cultures • Polarization • „Immune Reaction“ • Different Environments • Can the Innovative Product be merged with the System of Records? BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 14
- 15. Business Implications • Business Assumption • Anything goes • The possible Applications are limited by • Regulatory Limitations • Technical Limitations of • System of Records • Operations • Organizational Limits (e.g., product logistics) Think not only of Plan & Build; don‘t forget Run & Deliver BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 15
- 16. Multi-Speed IT: Organizational View Systems of Innovation • Fast moving • Short-lived • Agile • Market-driven • Based on Experiments • Fail-Fast Agile Organization, Agile Development, Short Cycles Systems of Record • Slow-Moving • Evolutionary • Classical Approach • Following Procedures and Plans • Risk-averse • No-Failure Approach Hierarchical Organization, Waterfall Development, Long Cycles BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 16 CEO Department Head Department Head Team Lead Team Lead Team Lead Team Lead Team Lead Team Lead
- 17. Organizational Implications Organization Types are incompatible • Different use of offices • Different compensation models • Different incentive models • Leads to problems with employees, worker‘s council, HR,... Best Solution • Different Legal Entities • Offices in different parts of the City • But additional overhead for later re-integration BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 17
- 18. Conclusion Multi-Speed IT is a possible Solution • Advantages • Allows Innovation and Continuity to co-exist • Can mediate Friction Loss • Challenges • Adds Technical Complexity and Overhead • Adds Organizational Challenges But it is the only way to embrace the change while keeping the „old“ business BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 18
- 19. Dr. Joachim Baumann email [email protected] web www.dibuco.de dibuco GmbH | Franz-Schubert Str. 75 | 70195 Stuttgart BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 19
- 20. - solutions for the digital age - • [email protected] tel +49 711 699 475 60 fax +49 711 699 475 62 www.dibuco.de BPUG, Dienstag, 31. Januar 2017 www.dibuco.de | Implications of Multi-Speed IT 20
- 21. Manager-Hirne arbeiten schneller Test mit 35 Managern und 35 Nicht-Managern: • 540 Entscheidungen in 22 Minuten (Beobachtung im Magnetresonanztomograph) Ergebnis: Manager verwenden andere Hirnregionen zur Entscheidung Funktioniert über kategorisiertes Wissen (Schubladendenken) Bedeutet festes Modell und feste Paradigmen • Muss trainiert werden • Passt ideal zur Optimierung von Organisationen Seite 21 Caspers S, Heim S, Lucas MG, Stephan E, Fischer L, et al. (2012) Dissociated Neural Processing for Decisions in Managers and Non-Managers. PLoS ONE 7(8): e43537. doi:10.1371/journal.pone.0043537
- 22. Picture Credits Blickwinkel: Unternehmen – Flickr, Achim Lammert, Munich Skyline Blickwinkel: Der Mensch – Flickr, ThisParticularGreg, People Transaktionskosten – Flickr, 401(K) 2012, money Markteintritt – Flickr, Siamese Puppy, Fence Bird Bündelung – Flickr, Tim Parkinson, Is there a sale on? @ Lowestoft, Suffolk Marktdominanz - Wikipedia Puzzleteile, Daten – http://de.wikipedia.org/wiki/Datei:Europ%C3%A4ische_Buchproduktion_500%E2%80%931800.png IDC “Digital Universe” - http://germany.emc.com/collateral/about/news/idc-emc-digital-universe-2011-infographic.pdf Puzzleteile, Daten - http://commons.wikimedia.org/wiki/File:Schlafende_Japaner.jpg Puzzleteile, Disruptive Technologien - http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif, Lösungsansatz, Safe Framework, The Big Picture – http://scaledagileframework.com/downloads/ Neue Rolle des CIO –http://commons.wikimedia.org/wiki/File:Pfad_im_Glatzener_Moor.jpg Jäger und Sammler - http://commons.wikimedia.org/wiki/File:Hadza_montage.png Weidegesellschaften - http://commons.wikimedia.org/wiki/File:Fotothek_df_tg_0007728_Landwirtschaft_%5E_Ackerbau_%5E_Getreideanbau_%5E_Heu.jpg Städte - http://commons.wikimedia.org/wiki/File:Antikes_Alexandria_Karte.JPG Stände - http://commons.wikimedia.org/wiki/File:St%C3%A4ndemodell_Lichtenberger.jpg Industrielle Revolution - http://commons.wikimedia.org/wiki/File:Philipp_Jakob_Loutherbourg_d._J._002.jpg, http://commons.wikimedia.org/wiki/File:Steam_engine_in_action.gif Menschen: Res. Probleme – Flickr, Michael Coghlan, Dais Menschen: Res. Probleme – Red and Blue Pill, Wikipedia Macht Agiliität Sinn - http://s594.photobucket.com/user/ungry-ippo/media/polar-bear-face-palm.jpg.html Klassisches Vorgehen - Flickr, Gosheshe, The Thinker Blickwinkel: Der Markt – Flickr, Quelle: https://www.flickr.com/photos/toofarnorth/2729520971/