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 CorporationGordon Moore
Computing power continues to increase

Connectivity is exploding

Source: get SatisfactionBob 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
ImagesMobile 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 Stru
ctur
ed
Dat
a
Voice Se
ns
ors
globalization
virtualization
democratization
consumerization changing role or IT
These trends are changing how we deliver IT . . .

Structured Data
Mobile data
Videos Stru
ctur
ed
Dat
a
Voice Se
ns
ors
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 ze i t e r a t e i m p r o v e
ContextINFORMATION 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

Source–EdmontonSun
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
AdaptedfromThePrinciplesofProductDevelopment–DonaldG.Reinertsen
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
CoreActivities
Support
Activities
ValueAdded
Activities
IT Portfolio Management
IT Support – Facilities etc.
The IT Value Chain

AD&M Value Stream
Requirements Design Implementation Verification Maintenance

Infrastructure & Operations Value Stream
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

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
srinivaskoushik@aol.com
Twitter @skoushik
LinkedIn http://www.linkedin.com/in/srinikoushik

Next Generation IT

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