next generation it

Srini Koushik - March 2012

Next Generation IT

Srini Koushik December 2011

Changing the role of IT in today’s business


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


Source: Intel Corporation Gordon Moore

Computing power continues to increase


Connectivity is exploding


Source: get Satisfaction Bob Metcalf

Networks continue to grow


Digitization of an analog world


Everyone is connected, Everything is connected – all the time


Change is not a destination, just like Hope is not a Strategy

Rudy Giuliani


Globalization of the Marketplace


Consumerization of IT

Source Wired Magazine


Social Data

Videos Structured Data Voice Sensors

Images Mobile data

Democratization of data


Virtualization of the Value Chain


Videos Structured Data Voice Sensors

Fundamentally changing the role of IT


Structured Data

Mobile data

Videos Structured Data

Voice Sensors

globalization

virtualization

democratization

consumerization changing role or IT

These trends are changing how we deliver IT . . .


Structured Data

Mobile data

Videos Structured Data

Voice Sensors

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 . . .


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 z e i t e r a t e i m p r o v e

Context INFORMATION TECHNOLOGY


You have to learn the rules of the game. And then you have to play it better than

anyone else.

Albert Einstein


Mass Production Factories


Highly dependent on skilled labor


Model Industrialized by Service Providers


Sourc

e –

Edm

onto

n S

un

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


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


IT Economics driven by Labor Arbitrage


“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


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


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

Adapte

d fro

m T

he P

rinci

ple

s of Pro

duct

Deve

lopm

ent

– D

onald

G. Rein

ertse

n

IT Management Orthodoxies


IT is not Innovative

Poor Quality

IT is Slow

IT is too Expensive

All of the above


“When everybody else is playing Checkers – We will start playing Chess”

Srini


Defining Value


Relationship Management

Specifications Solutions

Development Service Support

Staffing and Supplier Management

IT Financial Management

Security and Risk Management

Enterprise Architecture

Core

Activitie

s Sup

port

A

ctiv

itie

s

Valu

e A

dd

ed

Act

ivitie

s IT Portfolio Management

IT Support – Facilities etc.

The IT Value Chain


AD&M Value Stream

Requirements Design Implementation Verification Maintenance



IT Portfolio Management





Infrastructure & Operations Value Stream



IT Portfolio Management




Request Incident Problem Change Release


Create Flow - From Efficiency to Throughput


From Compartmental Thinking to Systems Thinking


Standardization to Mass Customization


Adding Creativity to Engineering


Design Thinking – Convergent to Divergent


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


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


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


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


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


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


“Institutions will try to preserve the problem to which they are the solution”

Clay Shirkey


Thank you for your time

[email protected]

Twitter @skoushik

LinkedIn http://www.linkedin.com/in/srinikoushik

mailto:[email protected]

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