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Agile, Digital & the new
management paradigms
Allan Kelly
allan@allankelly.net
@allankellynet
heuristics
Agile on the Beach
Falmouth, July 2018
Allan Kelly
Bringing technology & business together
Inspiring Agile Teams
• Writing
• Training
• Advising
• Troubleshooting
Its Digital, Stupid
0100 0001 0100 1100
0100 1100 0100 0001
0100 1110
Welcome to Planet Digital
0
1E+09
2E+09
3E+09
4E+09
5E+09
6E+09
7E+09
8E+09
1960 1970 1980 1990 2000 2010 2020
Transistors per CPU: 1970->2016
Data from https://en.wikipedia.org/wiki/Transistor_count
2016 Intel 22-core Xeon Broadwell-E5
(7,200,000,000)
1976 Ziloz Z80 (8,500)
1971 Intel 4004 (2,300)
1975 Mostek6502 (3,510)
do
t.com
bo
om
Ubiquitous, cheap CPU cycles are changing
the world
Changing business
Digital
Apps
Online retailThe Web
Gig economy
Uberisation
GPS
Big Data
Drones
Analytics
AI
Mobile phones
Smart phones
Sensors Lidar
Deep Learning
Social media
Robotics Cloud
Social marketing
Crowd funding
Internet of Things
3D printing
Self driving cars
Agile makes Digital possible
• Rapid releases
• Test in the market “Lean Start Up”
• Technology teams working with business
Planet Digital is built on
• Cheap CPUs
• Software
• Agile
Technology Change
Stage #1 – Do the same things faster
Stage #2 – Adopt new processes to increase benefit
Stage #3 – Innovation from process change
Repeat
Electricity
Factories needed redesign
Processes needed changing
Lean?
Factory image © Unknown - https://pin.it/qyb3sfi7uhhrwd
Admiral Grace Hopper, 1906-1992
"I've always been more
interested in the future than in
the past."
What does process
change look like on
planet digital?
AgileAgile is the process change that
accompanies digitisation
Agile processes unlock more value from digitisation
Plan less, release more
Planning is learning
Va
lue
of
pla
nn
ing
Time
Planning has rapidly diminishing returns
A little
plan
nin
g
is ben
eficial
Mo
re p
lan
nin
g d
oe
s
no
t ad
d va
lue
Excess
planning
reduce
s value
IBM 360
IBM 360 at Computer History MuseumDave Ross: CCL license via WikiMedia
46 years …
1970 OS/360 model 195
• 10,000 KIPS (10 MIPS)
• 4096kb (4Mb)
• COBOL on OS/360
• IMS database
• Monthly rental $250,000
(Approx. $1.25m in 2016 prices)
2016 Raspberry Pi 2
• 4,744 MIPS
• 1 Gb
• Linux
• Python, Scala, Ruby, …
• SQL, NoSQL
• Buy $35
CPU cycles €€€ expensive
-> Planning is cheapCPU cycles €€€ cheap
-> Planning is expensive
36,000 million instructions hour
17,078,400 million
instructions hour
Planning is learning
Doing is also learning
He who learns fastest wins
“We understand that the only
competitive advantage the
company of the future will have
is its managers’ ability to learn
faster than their competitors.”
Arie de Geus, The Living Company 1988
Which is the fastest way to learn?
A. Planning
B. Doing
C. Other, please specify
Learn by doing – iterate!
Planning is learning
Planning is valuable
But…
Planning is expensive
Planning has rapidly diminishing
returns
If you want to finish sooner
Then
Start sooner
Plan less, release more
Do it right,
then
Do the right thing
Yesterday
1) Do the right thing
2) Do it right
Decide what the
right thing is
Build it the right
way
The Alignment Trap
Less
Effective
More
Effective
Highly aligned
Less aligned
‘Alignment trap’
11% companies
+13% IT spending
-14% 3 year sales
growth
‘Maintenance zone’
74% companies
Avg IT spending
-2% 3 year sales
growth
‘IT Enabled growth’
7% companies
-6% IT spending
+35% 3 year sales
growth
‘Well-oiled IT’
8% companies
-15% IT spending
+11% 3 year sales
growth
So
urc
e:
Sh
pil
be
rg,
Be
rez,
Pu
rye
ar,
Sh
ah
:
MIT
Slo
an
Re
vie
w,
Fa
ll 2
00
7
1
2D
oin
g t
he
rig
ht
thin
gs
Doing things right
Humphrey's Law
Watts Humphrey
“Users do not know what
they want until they see
working software”
How do I know
what the right
thing is?
Learn by doing – iterate!
Today
1) Do the right thingBuild a machine which can iterate
A learning machine
2) Do it rightUse the machine to iterate your way to the right
thing
Zen’in keiei
Every person a manager
Uniqlo HR documentation.
“UNIQLO’s Zen-in Keiei
philosophy, under which every
employee adopts the mindset
of a business manager,
regardless of his or her
position.”
Zen’in keiei for programmers #1
Self-organizing teams
Zen’in keiei for programmers #2
Think like you are business
Tim O’Reilly
MIT Sloan Management Review, March 2016
a large part of the work of [Google,
Amazon, Uber, etc.] … is performed by
software programs and algorithms. These
programs are the workers, and the human
software developers who create them are
their managers.
Manager
Workers
Managers
Workers
55000
60000
65000
70000
75000
80000
85000
2012 2013 2014 2015 2016
UK students
studying management1st degree
1st year students studying business & administration - https://www.hesa.ac.uk/data-and-analysis
18% increase 2012-2017
Zen’in keiei
Learn about Management
#BizTech
Business
Everyone together
Technology
#BizTech
System
Requirements
Software
Requirements
Analysis
Program
Design
Coding
Testing
Operations
Remember this?
System
Requirements
Software
Requirements
Analysis
Program
Design
Coding
Testing
Operations
Coding
Programmers take
design & refactoring
Then Agile happened
System
Requirements
Software
Requirements
Analysis
Program
Design
Coding
Testing
Operations
Coding
Test First + Test
Automation
Programmers take
designer & refactoring
Testing got automated
System
Requirements
Software
Requirements
Analysis
Program
Design
Coding
Testing
Operations
Coding + Design + Automated Test + Operations
Then DevOps happened
System
Requirements
Software
Requirements
Analysis
Program
Design
Coding
Testing
Operations
Analysis + Coding + Design + Automated Test + Operations
BDD takes analysis
System
Requirements
Software
Requirements
Analysis
Program
Design
Coding
Testing
Operations
Requirements +
Analysis + Coding + Design + Automated Test + Operations
Finally #BizTech
#BizTech
Techies learn more about business
Non-techies learn more about tech
Everyone works as one team
Agile is the process change that accompanies digitisation
Digital businesses needs to be Agile
1. Plan less, release more
2. Build a machine that can iterate to learn
3. Everyone is a manager
4. #BizTech: One Team
Allan Kelly – allan@allankelly.net - @allankellynet
https://www.allankellyassociates.co.uk/blog/
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