driving organizational change best practices...ü become more agile ü capacity & willingness to...
TRANSCRIPT
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Driving Organizational Change Best Practices
Arjo van OostenGlobal Senior Director, Digital Execution Practice
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1 2 3Why Change for RAD? What’s the Problem?
Building Blocks for change
Value definition and value proof
Agenda
4Achieving sustainable change
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The Need we See
NEED
ü Increase Time to Market
ü Become More Agile
ü Capacity & Willingness to Change
ü Predictable, Re-usable
ü Governance & Quality
ü Automation
ü Scalable collaborative Bus-IT organization.
ü Expand the developer ecosystem.
ü Capability to create applications at scale
Make it Fast Make it Efficient
Make it Scale
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The Challenges we Generally SeeMisunderstanding the MVP
Change best practice
need
Waterfall mindset from IT and/or business
Business and IT Collaboration
DevOps challenges
Developers and their time are scarce
Growing Demand
Scale
Speed
Efficient
Traditional portfolio process
&funding
Delayed change
Can’t meet demand
Can’t deliver value
Can’t grow & execute vision
See it as a technology Problem only
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Mendix 4P Focus
PLATFORM
Technology is not the biggest challenge
1
2
3
4
5
6
6
Skills & Resources
Funding & Budgets
Culture/structure of organization
IT-Business Alignment
Technology challenges
Capacity/willingness to change
Manage sponsorships/relationships
22%
15%
12%
11%
9%
8%
8%
Gartner Insights: From the 2016 Gartner CIO Agenda Report
PEOPLE
PORTFOLIO
PROCESS
PROCESS
PEOPLE
PEOPLE
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So, let’s have my team build an app on Mendix!...right?”
people process portfolio
Platform
Select (First) App Enable team Go-Live Now What..
Not the right organizational footprint
Not the right Foundation & Growth Vision
An App Alone will Not Drive Change
More than building an app
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The Maker Center: Foundation for Change
Unleash Maker Capability
Micro Services BizDevOps
Cloud Native
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Unleash Maker Capability
Micro Services BizDevOps
Cloud Native
The Maker Center: Foundation for Change
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Foundational Building Blocks
Unleash Maker Capability
Architecture & Governance
Architecture & Governance
• Guidelines on Quality, Delivery and Reusability
• Alignment between portfolio and delivery
• Architecture framework and growth vision
Experts & Foundation
Experts & Foundation
• Technical and Subject Matter Expertise
• Production accelerators: reusable building blocks, scripts, UX, testing, etc..
BizDevOps Maker Team(s)
Maker Teams
• Developing new apps/components and maintaining existing ones
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Unleash Maker Capability
Architecture & Governance
Experts & Foundation
BizDevOps Maker Team(s)
Portfolio• Defining RAD apps to
start with• RAD Portfolio roadmap
definition• Portfolio Management
Portfolio
Foundational Building Blocks
Value
Value• Return on investment
and Funding• Time to market gain• Efficiency gain
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Why is Value Important for Change?
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Cost Efficiency
• Less hours • Lower developer costs• Lower Maintenance costs• Opex Cloud• Compliancy
(New) Revenue
• Portfolio value• New Markets• New business models• Customer retention• Share of wallet
Strategic Value
• Business & IT Alignment• Business developer• Citizen developer enablement• Innovation• Strategic goals
Value (Success) Drives Change
Flexible, change readiness
A company being capable of releasing new featuresand products:• In minutes or days• Multiple times a day• Across multiple clouds• Around the world
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RAD Vision Maturity Influences Change Focus
Value/investment
RAD Vision Maturity
Vision Maturity
Discovery
“Not really sure if RAD is something for us”
Focus on the project
Vision
Maturity
ValueVision
Maturity
“We want to create our own RAD capability, but not really sure how it
fits in our organization or IT ecosystem”
Focus on the program
Strategic
RAD is the only way we are going to achieve our specific strategic
objectives, enter new markets, new business models
Focus on strategic impact
--..
“Not really care with which technology my problem is fixed ”
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Core Value Drivers
Increase Time to Market Speed
Traditional
$$$
RAD
$$$
Start Live
Start Live Infrastructure
Cost/hour
Hours for development & Maintenance
Lower Costs of Development
Traditional
Increase Application Velocity
RAD
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Understanding Time to Market Value“This application will deliver:
€1M extra revenue per month and €100K cost reduction after go live”
Traditional GTM time: 6 months
StartLive
Jan Feb March April May June July Aug Sep Oct Nov Dec
The Value of bringing this app to market twice as fast € 3.3M
€ 1,1M € 1,1M € 1,1M € 1,1M € 1,1M € 1,1M
Generated Y1value = € 6.6M
$
dev dev dev dev dev dev
StartLive
Jan Feb March April May June July Aug Sep Oct Nov Dec
Mendix GTM time: 3 months
€ 1,1M € 1,1M € 1,1M € 1,1M € 1,1M € 1,1M
Generated Y1value = € 9.9M
€ 1,1M € 1,1M € 1,1M
$
dev dev dev
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App Initiative NameCurrent Situation-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.
Description of the idea (“we believe”)----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.
Enabled by1. ------------------------------2. ------------------------------3. ------------------------------.
What will it solve/create1. ----------------------------2. ----------------------------3. ------------------------------.
What are the affected KPI’s• Reduce reinsurance errors due to incomplete
addresses by 5%• € 65,000 per month
• Increase direct mail response ratio by 10%• € 120,000 per month
VALUE FOCUS: REVENUE + COST REDUCTION BUSINESS VALUE : € 185,000 PER MONTH
Defining an App’s Business Value
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YOUR TRADITIONAL TEAM
APP JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
WORKFLOW #1 15 15 15 15 15 15 15 15 120WORKFLOW #2 25 25 25 75B2B PORTAL #1 -Total Value 195
Understanding App Velocity ValueYOUR MENDIX TEAM
APP JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
WORKFLOW #1 15 15 15 15 15 15 15 15 15 15 150WORKFLOW #2 25 25 25 25 25 25 25 25 200B2B PORTAL #1 50 60 70 80 90 100 450Total Value 800
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Supporting the Full Value Chain
Inboundlogistics Operations
Outboundlogistics
Marketing & Sales Services
€
€
€
€
€€ € € € € € € € € € € € € € € € € € € € €€€
Operational Efficiency Solutions
Customer Engagement
Solutions
New Market Solutions
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• 10App Description
Current Situation-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.
Description of the idea (“we believe”)----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.
Enabled by1. -----------------------------
-2. -----------------------------
-3. -----------------------------
-.
What will it solve/create1. ----------------------------2. ----------------------------3. ----------------------------
--.
What are the affected KPI’s
10 apps1.000.000 p/m
Back of the Napkin Value Calculation
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Back of the Napkin Value Calculation
16Months X 6
developersX 100K
Salary = 800KTraditional
Time to Market
16 Months
4 Months- X
1MValue per
month
+ 800k - 200kSavings
4Months XRAD 100K
Salary
= 12.6MIn pocket value
20Extra apps
+
= 200K6developers
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Sustainable Change
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Mendix Success doesn’t just happen, it’s planned for.”
Anonymous ;)
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3S Change: Start, Structure, Scale
START
• Start small, gain broader support
• Prove value of your new approach
• Celebrate first success
STRUCTURE
• Extend portfolio• Grow and split team (COE)• Accelerate ROI and benefit
proof
SCALE
• Become a Digital Enterprise
• Multi region/Country• Strategic impact
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START
SCALE
Architects, Cloud, UI/UX, Technical consultants,
security, integration etc...
Deliver Expertise
Functional and technical governance.
Embed governanceCloud, strategy,
DevOps, QA, testing, monitoring.
Automation & re-use
Ideation processes, portfolio, ROI, MVP,
Agile.
Formalize processesCreate talent pool, expand
development teams, retrospectives.
Ready to next level scale
Operationalize the plan, enable stakeholders,
formalize teams.
Create FoundationSelect, train and
certify. Team growth plan
Enable Developers
Important Milestones
STRUC-TURE
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Basic Check list for Change Readiness
Program Level• ROI• Benefit realization• Communication ROI & Budget
for changeThe ArchitectThe Program
Owner
The Organizational Footprint
Use case focus and portfolio
The vision
Transformation LevelStrategic Level• Strategic return• Transformation risk• Resources
Application Level• Time• Cost• Quality (scope) The (first) app The TeamThe Product
Owner
Alignment
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Urgency Coalition Vision Empowerment S-T Wins Anchoring
Coalition Vision Empowerment S-T Wins Anchoring Disinterested
Vision Empowerment S-T Wins AnchoringUrgencyLack of accountability and progress
Coalition Empowerment S-T Wins AnchoringUrgency Inaction/Confusion/ Resistance
Coalition Vision S-T Wins AnchoringUrgency Frustration
Coalition Vision Empowerment AnchoringUrgency Loss of momentum
Coalition Vision Empowerment S-T WinsUrgency Wasted effort
Coalition Vision Empowerment S-T Wins AnchoringUrgency CHANGE
Sustainable Change
Kotter Change model
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Take the online Learning Track
Business & IT Leaderü Change managementü Value proofü Maker Centerü Portfolio
https://gettingstarted.mendixcloud.com
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The Mendix Experience
MendixTechnology
+ =Mendix
ExperienceMendix
Methodology
Are you ready for change? What are your change fit/gaps What is your change roadmap?
Ask for the RAD Maturity AssessmentOr contact me directly:
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Thank You!