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Models for delivering scalable innovation in traditional enterprises

Models for delivering scalable innovation in traditional enterprises 11
August 2015 Halifax Nova Scotia Bimodal IT: Models for delivering scalable innovation in traditional enterprises Chris Howard VP Distinguished Analyst chrishoward88 This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. 1 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. To solve any problem that has never been solved before, you have to leave the door to the unknown ajar. Richard Feynman 4 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. What is bimodal IT and why should you care 2. How should you get started in bimodal IT 3. How do you progress to enterprise bimodal and what traps should you avoid 5 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. What is bimodal IT and why should you care 2. How should you get started in bimodal IT 3. How do you progress to enterprise bimodal and what traps should you avoid 6 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Bimodal IT "You Must Be Part Solid and Part Fluid to Thrive in Digital Business" 7 7 © © 2 20 01 15 5 G Ga ar rttn ne er r,, IIn nc. c. a an nd d//o or r iitts s a affffiilliia atte es. s. A Allll r riig gh htts s r re ese ser rv ve ed d.. Being Rock Solid Is the Core of the Business Traditional Approaches Were Designed for Stability, Not Fluidity 9 9 © © 2 20 01 15 5 G Ga ar rttn ne er r,, IIn nc. c. a an nd d//o or r iitts s a affffiilliia atte es. s. A Allll r riig gh htts s r re ese ser rv ve ed d.. Being Fluid Means Taking Some Risks Bimodal IT Means — Having two modes of IT, each designed to develop and deliver information and technologyintensive services in its own way. Mode 1 is traditional, emphasizing predictability, accuracy, stability. Mode 2 is exploratory, emphasizing agility and speed. 11 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Bimodal IT Mode 2 Mode 1 12 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Paths for IT Economic Development Operational Efficiency Citizen Engagement Cost Reduction 13 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Perceptual Inertia Operational Efficiency "This is what our IT Cost Reduction shop does. And they need to keep doing it." 14 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Perceptual Inertia Economic Development "We don't really think of Citizen Engagement our IT shop this way. They're not very good at this." "This is the heart of our digital government strategy." 15 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Both Paths Support Business Outcomes Economic Development Operational Efficiency Citizen Engagement Cost Reduction 16 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Digital Business Outcomes Economic Development Digital business is the creation of Citizen Engagement new business designs reached by blurring the digital and physical worlds … via an unprecedented convergence of people, business and things. A business moment is a transient opportunity that is exploited dynamically. They represent moments of untapped opportunity and competition that can rapidly change the dynamics across industries. 17 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Digital Business Outcomes Economic Development Digital Citizen Engagement Physical People Business Things Transient Dynamic Competition 18 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. No way Too risky Let's do this Digital thing 19 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. The benefit outweighs the risk Just do it. Go around IT if necessary Let's do this Digital thing 20 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Bimodal IT Mode 2 Mode 1 21 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Bimodal Is Not — Just dividing Agile Pace something development layering in two An operating An IT model or Shadow IT capability organization chart change 22 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. The Third Era of Enterprise IT We are here IT Craftsmanship IT Industrialization Digitalization ADAPT IDEATE MONETIZE CREATE OFFER ENGAGE Technology Processes Business models Focus Programming, IT management, Digital leadership Capabilities system management service management Treat colleagues as Treat colleagues as Isolated, disengaged customers, unengaged with partners, Engagement internally and externally external customers engage external customers Outputs and Sporadic automation and Services and solutions, Digital business innovation, innovation, frequent issues efficiency and effectiveness new types of value Outcomes 23 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. The Industrialization Era Created Marathon Runners IT Industrialization Linear processes = IT management, service management Treat colleagues as customers, unengaged with external customers Services and solutions, efficiency and effectiveness 24 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. The Digital Era Requires Sprinters Digitalization ADAPT IDEATE MONETIZE CREATE OFFER ENGAGE Business models = Digital leadership Treat colleagues as partners, engaged external customers Digital business innovation, new types of value 25 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Bimodal IT = Marathon Runners + Sprinters, Deeply Different, Both Essential Mode 1 Mode 2 Reliability Goal Agility Price for Revenue, brand, Value performance customer experience Think Agile, Kanban, Waterfall, ITIL Approach Think Marathon DevOps Sprinter Runner Plandriven, Empirical, continuous, Governance approvalbased processbased Enterprise suppliers, Small, new vendors, Sourcing longterm deals shortterm deals Good at conventional Good at new and Talent process, projects uncertain projects ITcentric, Businesscentric, removed from Culture close to customer customer Long (months) Cycle Times Short (days, weeks) 26 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Governance Pace Layering and Bimodal IT Are Complementary Systems of + Innovation Mode 2 Systems of Differentiation Mode 1 Systems of + Record 27 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Change IT leaders should care about becoming bimodal because they cannot confront the range of needs presented by digital business with a single, conventional mode of IT. Don't be the bottleneck 28 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. What is bimodal IT and why should you care 2. How should you get started in bimodal IT 3. How do you progress to enterprise bimodal and what traps should you avoid 29 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Civic Moment Scenario: Precision Emergency Response Singular Accurately assess all real or possible threats to human Objective life and property to take precise, appropriate actions. 1. Public safety aerial 9. First responders arrive. surveillance platforms detect Incident commander's decisions hazmat incident and dispatch are informed by a full spectrum emergency responders. view of a dynamic situation. 2. Nearby hospitals, medical 8. Drones monitor onscene facilities alerted. School and human and vehicular activity to business emergency detect and note atypical protocols activated. activities or behaviors. 7. Incident data and social 3. Civilian vehicle navigation media are analyzed to measure Elapsed time: 5 minutes devices route traffic away progress, predict outcomes and from incident. recommend tactics. 4. Shipping manifest 6. Remote sensors continuously 5. Individual hazmat containers transmits hazard monitor air quality, weather transmit status of contents and classifications of cargo to conditions and infrastructure physical environment. emergency personnel. integrity. Image source: http://abcnews.go.com/US/12wrongfuldeathsuitsfiledquebectrain © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. crash/storyid=19831159 The Big Issues • Legacy systems • Legacy processes and change management • Legacy mindsets • Protection vs Sharing mindset 31 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Great marathon runners do not automatically make great sprinters. Great sprinters aren’t usually great marathon runners. 32 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Avoid the "Timid Middle" Stuck in the middle "Fit for no one" Mode 1 Mode 2 33 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Start Before You Think You Are Ready Enterprise Bimodal Project Bimodal Integrated: Iterative • Agile, Iterative Methods Collaboration • Highly Collaborative CrossBusiness Innovation • CFO and CEO on Board Lab • Flexible Funding Isolated Small • Adaptive Sourcing Vendors Low High Agile • Scaling Process Maturity Maturity Limited High Value Value Typical Second Mode Starting Point Point Beyond Which Enterprise Change Significant 34 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Start Before You Think You Are Ready Enterprise Bimodal Project Bimodal Integrated: Iterative • Agile, Iterative Methods Collaboration • Highly Collaborative CrossBusiness Innovation • CFO and CEO on Board Lab • Flexible Funding Isolated Small • Adaptive Sourcing Vendors Low High Agile • Scaling Process Maturity Maturity Limited High Value Value Typical Second Mode Starting Point Point Beyond Which Enterprise Change Significant 35 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Bimodal Is Very Experiential — You Have to Do It to Learn It 36 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Project Bimodal — Mode 1 Dominates Project Bimodal Mindset and Talent • Success mostly under IT control Teaming • Fragmented, not Bimodal systemic, capability Engagement • Project, not Critical capabilityfocused Capabilities Governance • Lower risk projects, with limited scope and limited Iterative Methods Mode 1 impact Structure 37 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Select Your Projects Based on Their Mode 1 Impact High New Core Extend Impact on Mode 1 Replace ment Island Low High Bimodal Maturity "A Project Will Never Scale If Mode 1 Is Not Willing and Fully Supportive." 38 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. — Chris Osgood, CoFounder and CoChair, MONUM Recommended Mode 2 Project Characteristics, to Start: Has Willing Is an Island Business Partner Project Has Uncertain Can Be Requirements, Completed Fast Low Complexity Creates External Is a System Value of Innovation 39 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Organizational Structure A — Mode 2 Reports to the CIO CIO Mode 1 Mode 2 Enterprise IO Plan and Build Plan and Build Architecture DevOps Mode 2 Fast Track: DevOps, Automation Add Organizational and Continuous Distance at First Delivery 40 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Organizational Structure B — Mode 2 Plan and Build Reports Outside IT CEO Chief Digital CIO Officer (CDO) Mode 1 Mode 2 IO Plan and Build Plan and Build DevOps 41 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. What is bimodal IT and why should you care 2. How should you get started in bimodal IT 3. How do you progress to enterprise bimodal and what traps should you avoid 42 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Moving to Enterprise Bimodal Enterprise Bimodal Project Bimodal Integrated: Iterative • Agile, Iterative Methods Collaboration • Highly Collaborative CrossBusiness Innovation • CFO and CEO on Board Lab • Flexible Funding Isolated Small • Adaptive Sourcing Vendors Low High Agile • Scaling Process Maturity Maturity Limited High Value Value Typical Second Mode Starting Point Point Beyond Which Enterprise Change Significant 43 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Progress to Enterprise Bimodal — Mode 2 Dominates Enterprise Bimodal Architecture • A Committed Executive Team That Accepts More Syncing Modes Operational Ambiguity Bimodal • A WellArchitected Digital Funding Critical Core on Which to Innovate Success IO Factors • Top Digital Talent • Synching Between Innovation Mgmt. Modes Adaptive Sourcing 44 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Characteristics of Digital Business Outcomes Outcome Characteristic Architecture Implication Humancentric Adaptive, contextaware Transient (speed of market Agile, modular, flexible opportunity) Ad hoc (rarely the same) Configurable, contextaware Maybe unknown (context moving fast, Design for openness, difficult to project) open APIs, composite, software defined Blur of physical and digital Interoperation, stratification of logic, more function "at the edge" Blur of industry boundaries Interoperation, Integration 45 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Beware: Don't Just Push the Bottleneck Downstream to Infrastructure and Operations Mode 2 Demands IO Bottleneck Key Capabilities to Avoid Becoming the IO Bottleneck: DevOps Automation 46 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Continuous Delivery Creating New Walls of Confusion The Elite Organization (may need initially): Development DevOps Operations The "Do It All" Organization: No Operations Development + DevOps Adapted from: http://www.slideshare.net/matthewskelton/devopspatternsteamtopologies 47 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Traps to Avoid 1. Disconnection 2. Spiralling technical debt 3. Poor communications 4. Lack of equity 5. An unrenovated core 48 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Bimodal Is Built on Trust Trust enables autonomy Autonomy enables team happiness Team happiness enables leader scaling 49 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Source: https://www.flickr.com/photos/joi/2941559903; Text adapted from: Laura Thomson (Minimum Viable Bureaucracy) Bimodal IT What Are the Next Steps UNCONSCIOUS COMPETENCE CONSCIOUS COMPETENCE Embed in Culture: Build • Establish shared values Capabilities: • Ensure equity • Define your filters • Build the processes and protocols to synchronize the two • Pick a project • Reward team oriented, goaldriven behaviors • Pick the team • Define the process, methods, tools. • START • Capture learning, iterate • Protect the team and its funding Create Awareness and Appetite: • Engage sourcing and • Socialize the concepts of bimodal with the executive team procurement • Challenge the executive team – how will it respond to the • Define an innovation transformation it faces management process. • Get agreement – what does bimodal mean to you, how to proceed • Manage technical debt • Iterate, iterate, iterate 50 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. UNCONSCIOUS INCOMPETENCE CONSCIOUS INCOMPETENCE By 2017, 75 of IT organizations will have a bimodal capability. Half will make a mess. Don’t be in the wrong half. 51 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Recommended Gartner Research  Bimodal IT: How to Be Digitally Agile Without Making a Mess Mary Mesaglio and Simon Mingay (G00268866)  Best Practices for Implementing Automation in Data Centers With Cloud and Virtualized Environments Ronni J. Colville and Milind Govekar (G00255255)  Bimodal IT and Adaptive Sourcing Are Critical to Digital Business Success Claudio Da Rold and Others (G00265879)  WebScale IT Empowers Teams to Create a Culture of Innovation John Rivard (G00251066) For more information, stop by Gartner Research Zone. 52 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.