This document discusses Wardley mapping, which is a technique for visualizing value chains and markets. It provides examples of using maps to understand user needs, product evolution, flows of capital and risk, bottlenecks in processes, and costs. Wardley mapping helps analyze how products transition from custom to commodity and how this impacts strategy, execution, and policy around standards and regulation.
10. LevelofStrategicPlay(AWARENESS)
Uses Open Techniques to Compete (ACTION)
160 Hi-Tech companies in Silicon
Valley, 2012, Leading edge forum
Size of the bubble = No. of Companies
LowHigh
Low High
Execution
Rules!
11. LevelofStrategicPlay(AWARENESS)
Uses Open Techniques to Compete (ACTION)
160 Hi-Tech companies in Silicon
Valley, 2012, Leading edge forum
Size of the bubble = No. of Companies
LowHigh
Low High
Strategy
Rules!
12. LevelofStrategicPlay(AWARENESS)
Uses Open Techniques to Compete (ACTION)
160 Hi-Tech companies in Silicon
Valley, 2012, Leading edge forum
Size of the bubble = No. of Companies
LowHigh
Low High
+ve Market Cap (7 yrs)
-ve Market Cap (7 yrs)
13. “Dimon’s doctrine is as flawed as it is
popular.”
Professor Roger L. Martin,
The Execution Trap, 2009
29. Priority Order Company You
Creation of a digital “cloud based” service for
provision of the software
1
Investigating the use of the data conversion product
that is available in order to improve efficiencies in
operation
2
Expansion of existing product into overseas markets such
as Brazil
3
Increasing the development effort on our existing
product line including more advanced reporting and other
innovative features.
4
Undertake a significant marketing campaign to promote
our solution in the existing market.
5
Other
39. Photo Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Image
Manipulation
Compute
Customer
Visual Yes
Context Yes
Position NO
Anchor NO
Movement NO
Components Yes
46. Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Online Image
Manipulation
Compute
Customer
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
ValueChain
VisibleInvisible
Visual Yes
Context Yes
Position Yes
Anchor Yes
Movement NO
Components Yes
47. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Online Image
Manipulation
Compute
Customer
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Needs
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
Visual Yes
Context Yes
Position Yes
Anchor Yes
Movement NO
Components Yes
48. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
CRM
Online Image
Manipulation
Compute
Customer
Platform
2005
Visual Yes
Context Yes
Position Yes
Anchor Yes
Movement Yes
Components Yes
49. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
CRM
Online Image
Manipulation
Compute
Customer
Platform
Anchor
Position
Movement
50. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
CRM
Online Image
Manipulation
Compute
Customer
Platform
Space has
meaning!
54. WATER
USER
Needs
CUP OF TEA
Needs
HOT WATER
TEA
Needs
KETTLE
Needs
Needs
POWER
ValueChain
VisibleInvisible
Needs
Forms of Capital
Exchange
Financial
Physical
Social
Risk
Knowledge
+bidirectional
flow
55. WATER
USER
CUP OF TEA
HOT WATER
TEA
KETTLE
POWER
ValueChain
VisibleInvisible
+financial
+physical
+financial
+physical
57. WATER
USER
CUP OF TEA
HOT WATER
TEA
KETTLE
POWER
ValueChain
VisibleInvisible
+$0.35
+$0.15
+$0.20
+$0.15
+$0.05
+$0.05
Physical flow
(the cup of tea)
58. WATER
USER
CUP OF TEA
HOT WATER
TEA
KETTLE
POWER
ValueChain
VisibleInvisible
+$0.35
+$0.15
+$0.20
+$0.15
+$0.05
+$0.05
Revenue 0.35
Cost of Goods sold
Tea 0.15
Water 0.05
Power 0.05
Operating Profit 0.10
Other Expense
Depreciation
(Kettle)
0.10
Net Income 0.00
Physical flow
(the cup of tea)
59. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
USER
CUP OF TEA
TEA
KETTLE
POWER
ValueChain
VisibleInvisible
+$0.35
+$0.20
+$0.15
+$0.15
+$0.05
WATER
HOT WATER
+$0.05
60. Spend 9 months lovingly
building a toaster for $1000
from raw materials?
Buy a toaster for $40?
If the user needs a slice of toast …
61. Spend years and millions of $$
lovingly building from raw
materials?
Use a compute utility like
EC2 or GCP or Azure?
If the user needs some compute …
62. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
+impact
USER
CUP OF TEA
TEA
KETTLE
POWER
ValueChain
VisibleInvisible
+$0.35
+$0.20
+$0.15
+$0.15
+$0.05
WATER
HOT WATER
+$0.05
63. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
USER
CUP OF TEA
TEA
KETTLE
POWER
ValueChain
VisibleInvisible
+$0.35
+$0.20
+$0.15
+$0.15
+$0.05
+Inertia
WATER
HOT WATER
+$0.05
+impact
64. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
+impact
(30% cost reduction)
WATER
USER
CUP OF TEA
HOT WATER
TEA
KETTLE
POWER
ValueChain
VisibleInvisible
+$0.25
+$0.10
+$0.15
+$0.05
+$0.05
+$0.02
65. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
+impact
(30% cost reduction)
WATER
USER
CUP OF TEA
HOT WATER
TEA
KETTLE
POWER
ValueChain
VisibleInvisible
+$0.25
+$0.10
+$0.15
+$0.05
+$0.05
+$0.02
Risk
69. Order
Server
Goods In Modify Mount
New
Capacity
Bottleneck
Compute
Needed
Rack
Process flow
+Robotics
(automate)
Current Robotic
Cost per install failure US$2,500.00 US$2,500.00
% likelihood of failure 8.0% 0.5%
Average cost of failure per install US$200 US$13
Time to install (mins) 120 30
Labour cost per install US$129 US$11
Annual number of install 8,000 8,000
Total annual cost of Install US$1,028,571 US$85,714
Total annual cost of failures US$1,600,000 US$100,000
Total annual cost US$2,628,571 US$185,714
Investment / Capex US$0 US$2,000,000
ROI < 1 year
Question : Would you invest?
70. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Compute
User
Needs
71. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Compute
User
Needs
Order
Server
Goods In
Server
Needs
Needs
Needs
72. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Compute
Modify
Rack
User
Mount
Order
Server
Goods In
Server
73. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Compute
Modify
Rack
User
Mount
Order
Server
Goods In
Server
+flow
74. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Compute
Modify
Rack
User
Mount
Order
Server
Goods In
Server
+flow
75. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Compute
Modify
Rack
User
Mount
Order
Server
Goods In
Server
+flow
76. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Compute
Rack
User
Mount
Order
Server
Goods In
+flow
Server
Modify
77. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Compute
Rack
User
Mount
Order
Server
Goods In
+flow
Server
Modify
78. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Compute
Rack
User
Mount
Order
Server
Goods In
+flow
Server
Modify
Cost of
racks
Cost of
mounting
Cost of
modification
Cost of physical
storage & handling
Capital cost
of equipment
79. Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Compute
Rack
User
Mount
Order
Server
Goods In
+flow
Server
Modify
Cost of
racks
Cost of
mounting
Cost of
modification
Cost of physical
storage & handling
Capital cost
of equipment
Current Robotic
Cost per install failure US$2,500.00 US$2,500.00
% likelihood of failure 8.0% 0.5%
Average cost of failure per
install
US$200 US$13
Time to install (mins) 120 30
Labour cost per install US$129 US$11
Annual number of install 8,000 8,000
Total annual cost of Install US$1,028,571 US$85,714
Total annual cost of failures US$1,600,000 US$100,000
Total annual cost US$2,628,571 US$185,714
Investment / Capex US$0 US$2,000,000
ROI < 1 year
Question : Would you invest?
100. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Platform
Customer
Past +Competition Future
Experimentation
Chaotic
Uncertain
Unpredictable
Changing
Different
Exciting
Future Worth
Unusual
Rare
Poorly understood
Differential
Competitive Advantage
Volume Operations
Ordered
Known
Measured
Stable
Standard
Obvious
Low Margin
Essential
Ubiquitous
Defined
Operational efficiency
Cost of doing business
Climatic pattern
Characteristics
change
101. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
AGILE / In-house
Strong Weak
focus on reducing cost of change
102. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SIX SIGMA / Outsource
StrongWeak
AGILE / In-house
Strong Weak
focus on reducing deviation
focus on reducing cost of change
103. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SIX SIGMA / Outsource
StrongWeak
AGILE / In-house
Strong Weak
Strong WeakWeak
LEAN / Off the shelf product
focus on learning & reducing waste
focus on reducing deviation
focus on reducing cost of change
104. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SIX SIGMA / Outsource
StrongWeak
AGILE / In-house
Strong Weak
Climatic pattern
No one size
fits all
Strong WeakWeak
LEAN / Off the shelf product
focus on learning & reducing waste
focus on reducing deviation
focus on reducing cost of change
105. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Unit / Utility based
StrongWeak
COTS / Fixed
StrongWeak
Strong Weak
Outcome based
Strong Weak
Time and Material / VC based
focus on reducing cost of change
focus on reducing deviation
focus on learning & reducing waste
108. Buy
our home
made nuts &
bolts
Queen Bertha and the Spinners, 1888
Albert Anker [Public domain], via Wikimedia Commons
https://commons.wikimedia.org/wiki/File:400-oz-Gold-Bars-AB-01.jpg
112. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Climatic pattern
Higher order systems
create new sources
of worth
Electricity
Television
Radio
+Worth
Computing
+Worth
+Worth
Z3
Parthian Battery
114. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Computing
Databases
Intelligent Agents
Towards user need
Line of the Present
Electricity
Z3
SDC
Parthian Battery
115. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
CRM
Compute
Customer
Past
+Competition
Future
Climatic pattern
Past success
breeds inertia
+Inertia
Platform
Online Image
Manipulation
116.
117.
118. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
Online Image
Manipulation
2005
119. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
+efficiency
Online Image
Manipulation
120. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
+efficiency
+Inertia
Online Image
Manipulation
121. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
+efficiency
+Inertia
+Worth
Online Image
Manipulation
122. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
CRM
Compute
Customer
+efficiency
+Inertia
+Worth
Online Image
Manipulation
Here?
Here?
Here?
Here?
Where to
Invest?
Platform
124. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
CRM
Online Image
Manipulation
Compute
Customer
Platform
125. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
CRM
Online Image
Manipulation
Compute
Customer
Platform
Activity
Practice
Financial
monitoring
126. I II III IV
Activities Genesis Custom
Product
+ Rental Services
Commodity
+ Utility Services
Practices Novel Emerging Good Best
Data Unmodelled Divergent Convergent Modelled
Knowledge Concept Hypothesis Theory Accepted
Stage of
Evolution
Type
132. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Operating
system
133. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Operating
system
134.
135. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Operating
system
136. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Operating
system
High MTTR
137. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Operating
system
Novel
architectural
practice
High MTTR
138. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Operating
system
High MTTR
Novel
architectural
practice
139. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Operating
system
High MTTR
Good
architectural
practice
New Tribe
142. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Good
architectural
practice
Framework
Emerging coding
practice
Operating
system
High MTTR
143. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Good
architectural
practice
Framework
Operating
system
High MTTR
Emerging coding
practice
144. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice
Framework
Best coding
practice
Operating
system
High MTTR
145.
146. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice
Framework
Best coding
practice
Operating
system
High MTTR
CLOUD
147. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice
Framework
Operating
system
Best coding
practice
Novel
architectural
practice
High MTTR
Low MTTR
Climatic pattern
co-evolution
CLOUD
154. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice
Framework
Operating
system
Best coding
practice
Novel
architectural
practice
Low MTTR Inertia
CLOUD
155. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice
Framework
Operating
system
Best coding
practice
Novel
architectural
practice
Low MTTR Inertia
CLOUD
156. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice (Legacy)
Framework
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
New Tribe
CLOUD
157. It’s all about user
needs, iterative
cycles, automation,
feedback loops, …
160. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
Framework
CLOUD
161. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
SERVERLESS
CLOUD
Framework
162. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
emerging
architectural
practice
(???)
Low obscurity of
cost
SERVERLESS
CLOUD
163. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
emerging
architectural
practice
(???)
Low obscurity of
cost
SERVERLESS
CLOUD
164. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
emerging
architectural
practice
(???)
Low obscurity of
cost
SERVERLESS
165. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
New Tribe
Application
emerging
architectural
practice
(???)
SERVERLESS
166. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
New Tribe
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
emerging
architectural
practice
(???)
Low MTTRHigh MTTR
New
Legacy
SERVERLESS
CLOUD
170. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
emerging
architectural
practice
(???)
Low MTTRHigh MTTR
Low obscurity of
cost
SERVERLESS
CLOUD
171. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
emerging
architectural
practice
(???)
Low MTTRHigh MTTR
Low obscurity of
cost
LESS VISIBLE
SERVERLESS
CLOUD
172. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SERVERLESS
CLOUD
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
emerging
architectural
practice
(???)
Low MTTRHigh MTTR
Low obscurity of
cost
WE WON’T CARE
173. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SERVERLESS
CLOUD
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
emerging
architectural
practice
(???)
Low MTTRHigh MTTR
Low obscurity of
cost
WE WON’T CARE
174. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SERVERLESS
CLOUD
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
emerging
architectural
practice
(???)
Low MTTRHigh MTTR
Low obscurity of
cost
WIN THE BATTLE
LOSE THE WAR
180. “Red Queen”
The need to constantly
evolve in order to stand
still relative to a
surrounding ecosystem
Prof. Van Valen
181. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
emerging
architectural
practice
(???)
Low MTTRHigh MTTR
Low obscurity of
cost
SERVERLESS
CLOUD
182. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
compute
Best
architectural
practice (Legacy)
Operating
system
Best coding
practice
Good
architectural
practice
(DevOps)
emerging
architectural
practice
(???)
Low MTTRHigh MTTR
Low obscurity of
cost
SERVERLESS
CLOUD
WE WON’T CARE
183. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Application
Best coding
practice
emerging
architectural
practice
(???)
Low obscurity of
cost
SERVERLESS
184. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SERVERLESS
Best coding
practice
emerging
architectural
practice
(???)
Low obscurity of
cost
Application
185. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SERVERLESS
emerging
architectural
practice
(???)
Low obscurity of
cost
Application
186. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SERVERLESS
emerging
architectural
practice
(???)
Low obscurity of
cost
Application
+efficiency
187. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SERVERLESS
emerging
architectural
practice
(???)
Low obscurity of
cost
Application
+efficiency
+speed
188. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SERVERLESS
emerging
architectural
practice
(???)
Low obscurity of
cost
Application
+efficiency
New Application
+speed +speed
ADJACENT
UNEXPLORED
189. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
SERVERLESS
emerging
architectural
practice
(???)
Low obscurity of
cost
Application
+efficiency
New Application
+speed +speed
ADJACENT
UNEXPLORED
+Worth
195. Spend 9 months and $1000
lovingly building your own
toaster?
Buy a toaster for $40?
If the user needs a slice of toast …
ThomasThwaite,TheToasterProject
196. Spend years and millions of $$
lovingly building your own
cloud?
Use a compute utility like
EC2 or GCP or Azure?
If the user needs some compute …
197. Build your own?
Use a serverless environment like
Lambda or Azure Functions or
Google Functions
If the user needs to run some code …
198. Category Wardley’s Climatic Pattern (Rules of the game. Patterns that are applied across contexts regardless of user choice)
Components
Everything evolves through supply and
demand competition
Rates of evolution can vary by
ecosystem
(e.g. consumer vs industrial)
Characteristics change as
components evolve
(Salaman & Storey)
No choice over evolution
(Red Queen)
No single method fits all
(e.g. in development or purchasing)
Components can co-evolve
(e.g. practice with activity)
Evolution consists of
multiple waves of
diffusion with many
chasms.
Commoditisation <>
Centralisation
Financial
Higher order systems create new sources
of value
Efficiency does not mean a
reduced spend (Jevon’s Paradox)
Capital flows to new areas
of value
Creative Destruction
(Joseph Schumpeter)
Future value is inversely proportional
to the certainty we have over it.
Evolution to higher order systems
results in increasing local order
and energy consumption
Speed
Efficiency enables innovation
(Componentisation effect)
Evolution of communication
mechanisms can increase the
speed of evolution overall and
the diffusion of a single
example of change
Increased stability of
lower order systems
increases agility & speed
of re-combination
Change is not always linear
(discontinuous &
exponential change exists)
Shifts from product to utility tend to
demonstrate a punctuated equilibrium
Inertia Success breeds inertia Inertia can kill an organisation
Inertia increases the more
successful the past model
is
Competitors Competitors actions will change the game
Most competitors have poor
situational awareness
Prediction
Not everything is random
(p[what] vs p[when])
Economy has cycles
(peace, war and wonder)
Different forms of
disruption
(predictable vs non-
predictable)
A “war” (point of
industrialisation) causes
organisations to evolve
You cannot measure evolution over time
or adoption, you need to embrace
uncertainty.
The less evolved something is
then the more uncertain it
becomes
Not everything survives
213. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Componentisation effect
Component service
Component service
Gameplay
ILC
214. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Componentisation effect
Component service
Component service
Gameplay
ILC
215. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Componentisation effect
Component service
Component service
Others build
new things
(innovate)
Gameplay
ILC
216. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Componentisation effect
Component service
Component service
Identify patterns
through meta data
(leverage)
Others build
new things
(innovate)
Gameplay
ILC
217. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
The ever growing
platform
(commoditise)
Componentisation effect
Component service
Component service
Identify patterns
through meta data
(leverage)
Others build
new things
(innovate)
Gameplay
ILC
222. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
CRM
Compute
Customer
Online Image
Manipulation
Platform
2005
223. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Here?
Here?
Here?
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
Online Image
Manipulation
2005
Here?
224. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
Online Image
Manipulation
2005
Here?
225. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
Open
Online Image
Manipulation
2005
226. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
Open
Online Image
Manipulation
2005
227. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
Open
Online Image
Manipulation
2005
Exploit
228. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Use
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
Open
Online Image
Manipulation
2005
Exploit
229. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Use
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
Open
Online Image
Manipulation
2005
Exploit
Gameplay
Context specific
play
233. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Activity
Client
Power
Sensors
Environmental
Data
System
logic
Efficiency
Analysis
Practice
Data
234. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
US
Power
Sensors
Environmental
Data
Brazil
Efficiency
Analysis
EU
System
logic
Market
235. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
US
Power
Sensors
Environmental
Data
Brazil
Efficiency
Analysis
EU
System
logic
236. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
US
Power
Sensors
Environmental
Data
Brazil
Efficiency
Analysis
EU
System
logic
237. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
US Player
Power
Sensors
Environmental
Data
Brazil
Efficiency
Analysis
System
logic
238. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
US Player
Power
Sensors
Environmental
Data
Brazil
Efficiency
Analysis
System
logic
+ future
development
+ ecosystem
239. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
Power
Sensors
Environmental
Data
Emerging
Practice
Brazil
Efficiency
Analysis
System
logic
US Player
+ future
development
+ ecosystem
240. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
Power
Sensors
Environmental
Data
Emerging
Practice
Brazil
Efficiency
Analysis
System
logic
US Player
+ future
development
+ legacy
+ ecosystem
Legacy
241. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
Power
Sensors
Environmental
Data
Emerging
Practice
Brazil
Efficiency
Analysis
System
logic
US Player
+ future
development
+ legacy
+ ecosystem
Legacy
Leave it!
Here
242. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
Power
Sensors
Environmental
Data
Emerging
Practice
Brazil
Efficiency
Analysis
System
logic
US Player
+ future
development
+ legacy
+ ecosystem
+Cloud
effort
1
2
3
5
4
+Use
+Sell
+Market
+Development
244. Priority Order Company You
Creation of a digital “cloud based” service for
provision of the software
1
Investigating the use of the data conversion product
that is available in order to improve efficiencies in
operation
2
Expansion of existing product into overseas markets such
as Brazil
3
Increasing the development effort on our existing
product line including more advanced reporting and other
innovative features.
4
Undertake a significant marketing campaign to promote
our solution in the existing market.
5
Other
245. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
Power
Sensors
Environmental
Data
Emerging
Practice
Brazil
Efficiency
Analysis
System
logic
US Player
+ future
development
+ legacy
+ ecosystem
248. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
Power
Sensors
Environmental
Data
Emerging
Practice
Brazil
Efficiency
Analysis
System
logic
US Player
+ future
development
+ legacy
1
2
5 63
87
9
10
4
249. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
Power
Sensors
Environmental
Data
Emerging
Practice
Brazil
Efficiency
Analysis
System
logic
US Player
+ future
development
+ legacy
+ ecosystem
1 +Sell
2
+Market
250. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible Client
China
Power
Sensors
Environmental
Data
Emerging
Practice
Brazil
Efficiency
Analysis
System
logic
US Player
+ future
development
+ legacy
+ ecosystem
Open? 1 +Sell
1 +Cloud effort
2
3
+Use
4
2
+Market
+Build
Open?
5
264. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
CRM
Compute
Customer
+efficiency
+Inertia
+Worth
Online Image
Manipulation
Here?
Here?
Here?
Here?
Platform
265. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Online Photo
Storage
Data Centre
Power
Print
Web Site
Platform
CRM
Compute
Customer
+efficiency
+Inertia
+Worth
Online Image
Manipulation
Gameplay
Accelerate, de-
accelerate &
constraints
Open
Fear, uncertainty
& doubt
+Constraints
266. Uncharted Industrialised
Genesis Custom Built Product (+ rental) Commodity (+ utility) Evolution
ValueChain
VisibleInvisible
Use
Exploit
Online Photo
Storage
Data Centre
Power
Print
Web Site
CRM
Compute
Customer
+Inertia
Online Image
Manipulation
Open
+Constraints
+Worth
+efficiency
2005
Gameplay
Context
specific play
Platform