Yves Caseau
Head of AXA Digital Agency
NATF (National Academy of Technologies of France)
Yves Caseau - Digital Age Information Systems – November 2014 1/24
OOuuttlliinnee
1. Digital Revolution
When companies need to evolve
together with their customers
2. Information Systems Revolution
Master the new set of tools
3. Software Factories
Build the capability to constantly evolve
your software assets
Software
Strategy
Markets are
Conversations
Customer
Empowerment
Intention
Economy
Increasing
Complexity
Continuous
Change
Digital Innovation
MMeeaassuurree
OObbsseessssiioonn
The Map
The Compass
The Target
Yves Caseau - Digital Age Information Systems – November 2014 2/24
Part One : DDiiggiittaall RReevvoolluuttiioonn
Software
Strategy
Markets are
Conversations
Customer
Empowerment
Intention
Economy
Increasing
Complexity
Continuous
Change
Digital Innovation
MMeeaassuurree
OObbsseessssiioonn
The Map
Yves Caseau - Digital Age Information Systems – November 2014 3/24
Complexity and Continuous Change rreeqquuiirree AAggiilliittyy
Increasing complexity of 21st century prevents
forecasting
The central role of the user in the digital world
adds to the complexity brought by technological
change
Agility means constant and fast re-adjustment
towards the environment
Yves Caseau - Digital Age Information Systems – November 2014 4/24
Our Customer Is The Architect of HHeerr OOwwnn EExxppeerriieennccee
Digital experiences are “mash-up” of contents, products
and services from different sources
Digital customer-centricity implies to relinquish control
The ultimate form of personalization is not smart
analytics, it is customer empowerment
Making the customer the architect has a profound impact
on information systems
Yves Caseau - Digital Age Information Systems – November 2014 5/24
Markets Are Conversations –– CCoommee PPrreeppaarreedd !!
In the world of content abundance, to grab attention you
must listen
« Conversations cannot be controlled.
They can only be joined » - R. Rothemberg
Sharing a conversation with the customer requires a
content strategy
Conversations thrive on communities
Yves Caseau - Digital Age Information Systems – November 2014 6/24
The Relentless Pursuit ooff DDiiggiittaall IInnnnoovvaattiioonn
Innovation is solving a pain point together with the
customer
Minimum Viable Product : How to collect feedback as
early as possible, but not earlier
Innovation is grown, not designed – It is not the idea that
matters, it is the doing !
Yves Caseau - Digital Age Information Systems – November 2014 7/24
No Digital Leader Without aa SSooffttwwaarree SSttrraatteeggyy
“Software is eating the world” – M. Andreesen
Your software sourcing & crafting strategy says which
ecosystems you will be part of
Agility (both speed and flexibility) is determined by your software strategy
Yves Caseau - Digital Age Information Systems – November 2014 8/24
Pulling Opportunities from CCuussttoommeerr IInnttiimmaaccyy
Getting to know your customers without bothering them
« Relations lead to Conversations,
Conversations lead to Transactions » - D. Searls
Learn from your customers’ digital traces
Customers will not elect to let you listen if you have
nothing to say
Yves Caseau - Digital Age Information Systems – November 2014 9/24
Part Two : Information SSyysstteemmss RReevvoolluuttiioonn
The Compass
Yves Caseau - Digital Age Information Systems – November 2014 10/24
The New Way of Working ooff WWeebb’’ss GGiiaannttss
“Measure Obsession”
The most precious currency in the digital world is the
customer’s time
Build versus Buy
Lean Startup and Devops
Yves Caseau - Digital Age Information Systems – November 2014 11/24
Platforms Attract Value aanndd SSaattiissffyy CCuussttoommeerrss
Need for more and more software, at cheaper
prices
The need for constant innovation implies open
innovation
The platform game is “give and take”
Yves Caseau - Digital Age Information Systems – November 2014 12/24
Enroll Ecosystems to DDeevveelloopp YYoouurr SSooffttwwaarree
Mobile First, Cloud First
Commodity Hardware and Open OS
Open APIs and Open Source
Yves Caseau - Digital Age Information Systems – November 2014 13/24
Smartphone Revolution is MMoorree tthhaann MMoobbiillee WWeebb
The smartphone is the remote control of our
connected life
Mobile experience has its own codes
The smartphone is an amazing platform:
computing, video, sensors, recognition, etc.
Yves Caseau - Digital Age Information Systems – November 2014 14/24
A New Toolbox : Programming HHaass CChhaannggeedd !!
Test: do you write code ? do you Google it ?
Welcome to massively distributed programming
(e.g., Map Reduce)
Systems programming, no longer computers
Advanced AI and machine learning algorithms are
available as open source libraries
Yves Caseau - Digital Age Information Systems – November 2014 15/24
« Data is the New Code » : BBiigg DDaattaa DDiissrruuppttiioonnss
Cost and technology disruption
“Data is becoming at heart of Computer Science”.
T. Hoffman
A new way of programming : data-oriented, sub-linear,
machine-learning grown
Each Web Giant is investing massively to be ahead of
its Big Data game
Yves Caseau - Digital Age Information Systems – November 2014 16/24
Part Three :: SSooffttwwaarree FFaaccttoorriieess
The Target
Yves Caseau - Digital Age Information Systems – November 2014 17/24
Constantly Changing Software RReeqquuiirreess NNeeww MMeetthhooddss
Source code becomes more important
(shown, shared and modified)
Since building is a constant task, the process
becomes more important than the result
The heart of the game is to constantly learn new
skills
Yves Caseau - Digital Age Information Systems – November 2014 18/24
Software Factories : Focus on Building && AAuuttoommaattiioonn
Continuous build, integration and delivery
A process that is run continuously must be
automated
DevOps : manage Infrastructure a code and lean
cross-function collaboration
Yves Caseau - Digital Age Information Systems – November 2014 19/24
Homeostasis Requires OOppeenn SSoouurrccee PPrraaccttiiccee
White-box integration with source code
There is a treasure trove of value in the existing
open source communities
Open Source is not free :
it is a collaborative game of “give & take”
Yves Caseau - Digital Age Information Systems – November 2014 20/24
The Toyota Way of CCoonnttiinnuuoouuss DDeelliivveerryy
Small autonomous and cross-functional teams
Synchronized work and standup meetings
Pull, Kanban and visual management
Yves Caseau - Digital Age Information Systems – November 2014 21/24
Love your Code and Value yyoouurr SSooffttwwaarree TTeeaammss
Code reviews and pair programming
Coding standards, discipline and pride
Incremental development produces junk.
Constant refactoring is mandatory (tending the garden)
Value your teams : let them learn
Yves Caseau - Digital Age Information Systems – November 2014 22/24
API : An Organic System is Defined bbyy IIttss MMeemmbbrraannee
This is a service architecture game :
modularity, event-oriented architecture, data exposition
Think like a software editor :
upward compatibility, “composability” (ability to use in
composite applications), standardization
Test your APIs and grow your ecosystems with
hackathons
Yves Caseau - Digital Age Information Systems – November 2014 23/24
CCoonncclluussiioonn
Digital revolution is only beginning !
One must learn to co-create experiences with their customers
Barbarians at our doors: paradigm shifts in production tools
Technology’s evolution pace will intensify: machine learning and
forecasting, AI, semantic processing & pattern recognition.
Adopt tools and methods from « the Web Giants » (GAFA)
Agile & lean software development
Lean Startup & measure
Big Data, Web programming, Commodity computing
Software Factories to assemble open source into experiences
Because of constant change, your software changes constantly
Skilled teams & Customer-centric continuous build
“Love your code” culture
Yves Caseau - Digital Age Information Systems – November 2014 24/24
Notes de l'éditeur
Complexity: key challenge for management + key challenge for CIO
Agility is a business attitude – this is what we learned from Spotify at Bouygues Telecom
IT Agility feeds on Business Agility
(1) Think of preparing a vacation
Conversations are two-ways exchange of information
Cf the Attention Economy by Thomas Davenport. To capture attention, you must listenCf. the segment of one
Randall Rothemberg, quoted by Don Peppers in Extreme Trust
Lots of ways to bring value : information, free service
You need to embrace the right and the desire of you consumers to participate to communities
Software defines the customer experience
Marc Andreesen: More and more major businesses and industries are being run on software and delivered as online services—from movies to agriculture to national defense. Many of the winners are Silicon Valley-style entrepreneurial technology companies that are invading and overturning established industry structures. Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not.
http://genius.com/Marc-andreessen-why-software-is-eating-the-world-annotated
(2) Software defines your innovation strategy Software strategy defines your cost structure
(3) Because of constant change, your software base must change constantly ! This is the topic of the talk in a nutshell
The intention economy is about knowing your customer’s intention
Example of the grocery list, provided as a free service –
Take real interest into your customers and their pain points
The first step of relation is trust !
Future is VRM, but the intention is already there in the digital space
Contents & listen – in that order : customers will not elect to let you listen if you have nothing to say.Social Networks is not a digital strategy, they are a tool
Everything gets measure – from performance to usability – Technical back-office indicators as well as engagement front-office
A/B testing, eyeball tracking and web analytics
Fact-based decisions
Focust on the speed and fluidity of customer experience
A new culture that builds its software - This the GAFA Software strategy
We talked about Lean Startup - Eric Ries is a hero at Google we shall talk about devops in the slides to come, Facebook being a good example of this strong collaboration between development and operations.
Platform is buzzword of the decade –
Makes perfect sense : only way to attract value (there are more smart minds outside the company than inside)
What is more and more true: right way to satisfy the customer because she is the architect of her own experience
Direct consequence of part 1: we need to churn more and more SW, whole life duration is shorter and shorter – we have a problem
Open innovation was always a good idea, it is now a requirement because of the rate of change
You need to think as a platform but yon need to use other platform as well.The Telco world of the last decade is full of failed platform initiatives
A Software ecosystem is a platform strategy that has succeeded
Let other developers develop your mobile applications – Leverage the wealth of cloud services
Your software cost structure is eventually a key driver for your economic survival – learn from the best and leverage the cheapest solutions
Invite yourself into open source communities though APIs – another give & take game
“Mobile Revolution” …
Is not “using your smartphone for performing digitized version of the insurance life-cycle processes” (must-do)
The mobile is the heart of a digital system that changes both your life and what it means to protect it
Cloud of web services, connected objects, smart touch devices, sensors, etc
This asks the question of what is my new business in this new digitally-extended life, as opposed to how to make my current business fit on a mobile device
Usability is critical – save time and effort – use measures & continuous improvement
Obvious : computing power of a cray – stunning screens and touch interface – video capabilitiesAlso : ever-increasing collection of sensors (6 to 10 in today’s iPhone or Samsungs), ever increasing capabilities of recogniotion (image / voice / gesture)
Anecdote : Book that I bought in a convenience store on a tiny village of North Iceland
Although I have taught computing and computer science at university level and run software projects for 30 years, I know only half because I am a dinosaur
This is the power of community, this is why you need to hire young developers
Another reason to hire new developers – Von Neuman dinosaurs such as myself need to team up with distributed mindset
From specialty hardware to distributed systems : grid, cloud, etc. – It great to talk about Internet of things, it’s better to learn to program it
You do not need Computer Science PhDs to prepare the future, but you need a new open, curious and collaborative mindset
I will not give you the usual speech about the capability of Big Data to create new service opportunities or to bring your customer analytics to a new level.
All of this is true, there are many great books or testimonies about it.
I want to talk about Big Data versus our existing information systems –
Big Data is a cost and technology disruption – You can store almost anything at a constantly lowering price you can run massively distributed algorithms with low efforts and low costs
What are the new frontiers of computer science : semantics & natural language processing, image recognition, autonomous robots. In all these fields, advances are made by running simple algorithms on huge amounts of data
(3) This “new way of programming”, centered on data, may be characterized in three ways:
Massively parallel programming because of the distribution of very large amount of data. The data distribution architecture becomes the software architecture because, as the volume grows, it becomes important to avoid “moving data”.
Sub-linear algorithms (whose compute time grows slower than the amount of data that they process) play a key role. We heard many great examples about the importance of such algorithms, such as the use of Hyperloglog counters in the computation of Facebook social graph diameter.
Algorithms need to be adaptive and tuned incrementally from their data. Hence machine learning becomes a key skill when one works on a very large amount of data.
(4) cf. “Barbarian Attack” by Nicolas Colin – a series of great talk showing the disruption of this new way of working.
This new digital world is a world when software changes constantly
Google estimate that each software module is modified once a month
The dream of doing all changes for meta-data parametrization has failed . Black-box components
This is a major change from 10 years ago and from the system engineering culture.
You do not build such an ever-changing system with the same tools and top-down methods that we learned to 20 years ago.These methods adapts to their constantly changing environment – the software factory is a training academy
The factory metaphor is useful to capture the need for automation, configuration management and rigorous synchronized execution
It balances the wrong perception that agile means free spirits without constraints
(1) test-driven development + run all tests as early as possible + support learn startup principles (show me)
Automated build from detailed configuration management lots of techniques and open-source software available
Lots of great experiences available on libe from Facebook, Netlix, Spotify
This is the white box metaphor : what has changed is that the black box component approach does not work any longer
Need for many eyeballs
Need to change the code at the source level
Leveraging the power of open source communities has changed from an interesting option into a must do
Changes are so deep they happen at source code level – both in the pieces or at the glue levelYou need to assemble pieces which are built with the same features (recursive nature)
The Web Giant know this and they play the game heavily high quality and great support communitybecause good software is built incrementally through feedback
(3) collaborative price - requires culture change Since adoption is proportional to genericity, using open source software is a “connected art”.
Common to DevOps, Lean Startup and Octo : the influence of lean (Toyota Way)
Small team, small batches, incremental work
Synchronized : work on the same tempo
Kanban is a visual tool to help the team work at a common pace (pull versus pull)Visual management has many other use to help the team to work and learn together
Hackathon image : a good symbol of a culture that values code and developers
OCTO reports that this is a common trait of GAFA
My proposal to you is that it is a mandatory consequence of the digital world challenge
Code that changes constantly needs to be reviewed
Code reviews can only be efficient if they are fun – requires both discipline and pride.
Producing poorly structured and unorganized code is a natural consequence of incremental cycles. “Pull architecture” helps (architect to help developers) but this is not enough – refactoring
I could have chosen an illustration from cellular biology but those plugs make it more practical
If you subscribe to the systemic view of a company that is defined by its interaction with various software and service ecosystems, then the API (interfaces) are the most critical decisions
(1) (a) The API strategy is the new name for SOA, but at a different scale with a different focus (outbound)
(b) Data is the new oil => data architecture (Importance of REST API : shared data becomes integration glue because this is simple and highly scalable)
(2) Composite application is the buzzword of the moment : source code integration (as an app) of services that are exposed through APIs. They are hot because this method of delivery new services is efficient and agile Playing the game requies an API strategy
(3) Bytel OpenBox experiments Hackathon bring value on multiple level : internal culture (cf. previous slide), systemic (open-source testing & improvement), open innovation (detect talents and potential partners)