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CTO School Melbourne November 2016

Looking at your Technology company through the "3 Horizons of growth" model

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Page 1: Looking at your Technology company through the "3 Horizons of growth" model

CTO School MelbourneNovember 2016

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Thanks to our sponsors

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Join our Trello boardhttp://tinyurl.com/ctoschoolmelb

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Join our Slack conversationhttps://ctoschoolmelbourne.slack.com/

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This Month’s Topic

Looking at your technology business through the lens

of the 3 horizons modelwith

Nigel FernandesSEEK

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CTO School Melbourne

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Thinking about technical strategy & growthNigel FernandesArchitecture Practice Manager

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Objective:

Help you understand whether the 3 Horizons of Growth model could

work for you

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THIS TALK IS NOT ENDORSED BY

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Foundations of thistalk

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Individual autonomy without collective alignment leads to anarchy.

~ Sam Newman

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Platform = People + Technology

~ Scott Shaw

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Software delivery capability is a function of the alignment of

the platform to the needs of the product.

~ Me

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3 Horizons Model

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3 Horizons Model

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The Product side

Extend and defend core business

Build emergingbusinesses

Create viable options

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Experienced business operators extend the core

Business builders develop new opportunities

Visionaries, champions create viable options

The People side

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Transitional Architecture modernizes the core

Evolutionary Architecture guides growth with opportunities

Emergent Architecturebased on disruptive tech

The Technology side

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Horizon 1Superior execution.

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Extend and defend core business

Horizon 1

Transitional Architecture modernizes the core

Experienced business operators extend the core

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We rely on experienced technical leaders who possess:

• A track record and love for working effectively with

legacy code

• The ability refactor as you go along and be disciplined

• The ability to strangle systems along functionality seams

• The explainers. The patient. The calm and steady.

People

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Transitional Architectures aiming forSOA/Microservices as a strangler and for complexity management

Automated operations and effective team level support/on-call

New tech as a way of solving problems of scale: AWS, Docker etc.

New tech as a way of decoupling, managing blast radius

Focus on Inter-operability

Established pattern based decision making

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Tech Radar as a Reflection Exercise

Activity

Get technologists in a room.

Ask them to reflect on Techniques, Tools, Platforms and Languages in use. Classify these as Assess, Trial, Adopt or Hold.

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TIME modeling with Leadership

Activity

Sit with your leadership team

Ask them to reviewproducts and systems usingGartner’s TIME model.

Classify each into one of the four quadrants

Use the results as an input to decision making

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STARS modeling with Leadership.

Activity

Sit with your leadership teams

Ask them to assess their products and the teams working on them Classify each as Start-Up,Turnaround, AcceleratedGrowth, Realignment orSustaining Success

Reflect on the implications

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Patterns. Everywhere.

Logging. Metrics. Deployment. Secrets.

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Horizon 2Taking advantage of new opportunity

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Build emerging businesses

Horizon 2

Business builders develop new opportunities

Evolutionary Architecture guides growth with opportunities

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We rely on Product engineers. Characterized by:

• Enthusiasm and passion. Evangelists.

• A Strong sense of optimism

• Comfort with working in higher degrees of uncertainty

• Comfortable with trading tech debt for speed, and the

experience doing it.

• Knowledge of the second system effects

• Ability to think on their feet, adapt fast, and thrive while

under delivery pressure.

People

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Evolutionary Architectures guided by :Composibility of existing services to extend/create new products

Add new services to expose new capabilities/data

Invest in older software assets only where required

New tech as a way of attracting and retaining talent

New tech as a way of achieving shortened time to market

Optimize for code for flexibility not efficiency

Focus on Inter-operability

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FFF Exercise with Teams on a regular basis

Activity

To help teams keep their focus on the things thatare important.

Use the FFF for nonfunctional requirements

Have teams determineThe dimensions

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Trade off sliders with Teams on a regular basis

Activity

To help teams keep their focus on the things that are important.

To help keep product and technology teams honest.

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Tech Debt walls mapping

Activity

Technical teams get uncomfortable with borrowing down on tech debt. Visibility helps deal with managing the debt versus productivity scales

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Horizon 3Creating new viable businesses

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Horizon 3

Emergent Architecture based on disruptive tech

Business builders develop new opportunities

Create viable options

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We rely on Entrepreneurial engineers. Characterized by:

• Self driven. Champions and visionaries.

• Comfort with working with a lack of clarity

• Comfortable with building quick and dirty solutions

• Comfortable with throwing work away as products

develop and pivot.

• Ability to learn fast without a lot of formal support

• The courage to be different.

People

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Emergent Architectures characterized by :Operating outside the boundaries of established systems

New tech as a market disruptor

New tech as a commercially defensible IP

Optimized for learning

Mandates the need for re-investment later

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Horizon scanning

Activity

Workshop with the whole cross functional team and the entire stakeholder group to course correct and maintain engagement

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The Emergent Organization

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Experienced business operators extend the core

Business builders develop new opportunities

Visionaries, champions create viable options

Culture evolution

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Ref:Connected Company – Dave Gray

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Ref:Connected Company – Dave Gray

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Thank you

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Discussion notes

Wardley maps: (Matt Fellows and Ervin Van der Koogh)http://blog.gardeviance.org/2015/03/on-pioneers-settlers-town-planners-and.html?m=1and https://vimeo.com/189984496

Is there a Horizon 0 – the people and tech left behind after an organization has moved on, post the evolution from horizon 1 -> 2. What does that look like? (Liz Douglass – has upcoming talk at YOW CTO summit on this)

The 3 horizons model as applied to features and code flows within an application. 3 horizons of features, core feature set, potential high adoption/value-add/differentiator features, and long shots? How would you engineer these given this view? Would you put more rigour around networks and error case handling for horizon 1 versus 3 for example?(Oliver Jones)

Crossing the chasm & related HBR article : https://hbr.org/2007/07/to-succeed-in-the-long-term-focus-on-the-middle-term (Nish Mohanty and others)