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How do executives kickstart innovation - pragmatically, rapidly and frugally?
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©ThoughtWorks2009
Platforming
Quarterly BriefingLondon, UK
24 Sep 2009
Innovating Information Systems in the Google AgeScott Conley, CSO
©ThoughtWorks2009
Context
RecessionIndifferent CEOShrinking demandPrice pressureControl expectationsPerfect knowledge?
12 month goals
✤ allocate tiny
budget
✤ deliver ‘agility’
✤ seize
something!
“Will it work?”
©ThoughtWorks2009
Thinking out loudBusiness-as-usualTechnology-centricMonolith Oriented Architecture?
“Which enterprise software provider should we work with? How much should we spend?”
"Facingthesedemands,
manyexecu3vesasking
themselveswhichacronym
(e.g.,BI,CRM,ERP)isright
forus?”
http://blogs.ft.com/donsullblog/2009/07/02/getting-it-right-for-execution/
Don Sull on FT.com
©ThoughtWorks2009
The core challenge
http://blogs.ft.com/donsullblog/2009/07/02/getting-it-right-for-execution/
Whatorganiza(onal,
behavioral,and
culturalchangeswill
weneedtocapturethe
benefitsofimproved
informa3on?"
“Whattypeofsuppor3ngdatadoweneedtomakesenseofarapidlychanging
market?
wrongques(ons..amorefundamentalset..
To pragmatically innovate on information:
You need an information advantage.You need an operational advantage.
©ThoughtWorks2009
Additional Thinking
Enterprise 2.0Behavioral EconomicsConstraint-driven Innovation“Free”Lean
Long term, organisms that deliver intent and emergent
design will survive.
©ThoughtWorks2009
Additional Thinking
Jeff Jarvis, pattern seeker“Link economy”Abundance
“Trust the people”
Amazon, others “would do it,” too..Build a platform that leverages these forces
Build a platform?
©ThoughtWorks2009
Platforms
a “distributed model of enabling countless companies to start atop what it provides.”
http://www.buzzmachine.com/2008/04/06/the-fall-of-the-firm/
products?ini3a3ves?ideas?
©ThoughtWorks2009
3 Platforms
SOCIAL
MOBILE
CLOUD
.. or harness one?
©ThoughtWorks2009
3 Platforms
SOCIALCLOUD
Let’s focus on just these
two.
MOBILE
©ThoughtWorks2009
Crushing onCloud
©ThoughtWorks2009
Cloud Marketing
How are cloud vendors positioning themselves?
©ThoughtWorks2009
Cloud Marketing
How are cloud vendors positioning themselves?
©ThoughtWorks2009
Cloud Marketing
How are cloud vendors positioning themselves?
Thevalueincloudlies
wellbeyond
costopportuni3es
inthedatacenter.
CHEAPER
PRICE
SAVE
©ThoughtWorks2009
Defining Cloud
Thevalueincloudlies
wellbeyond
costopportuni3es
inthedatacenter.
Internet accessibleStandardized capabilityUtility pricingSelf-provisioning APIsElasticity
http://www.forrester.com/Research/Document/Excerpt/0,7211,45073,00.html
Flickr
©ThoughtWorks2009
Cloud Market
Office Live
Google Apps
Provisioning business-level functional applications or services.
Innovation cycle:Late Majority Salesforce.com
Software-as-a-Service 1000’sby2020
Google Checkout
RackspaceMosso
Akamai
©ThoughtWorks2009
Cloud Market
Amazon AWSEC2, S3
Innovation cycle:Early Majority
Provisioning (virtual) hardware or other fine-grained embedded behavior/services.
Infrastructure-as-a-Service 100’sby2020
Salesforceforce.com
©ThoughtWorks2009
Cloud Market
Google AppEngine
EngineYardFlex
MicrosoftAzure
Innovation cycle:Early adopters
Provisioning virtual application stacks or similar environment sandboxes
Platform-as-a-Service 10by2020
©ThoughtWorks2009
Operationaladvantage
Viably ‘drive
down’ the
innovation
expectation
Automobile wholesaler“Last Mile” problems
Performance testing
Environment rigor
“First Mile” opptysProduct experiments
©ThoughtWorks2009
Another Long Tail
Capture otherwise inaccessible market opportunities
http://blog.animoto.com/2008/04/21/amazon-ceo-jeff-bezos-on-animoto/
15hoursof
Internet
fame
©ThoughtWorks2009
Another Long Tail
In 4 days:From 50 to 5000 servers5000 daily users to 750,000
http://blog.seattlepi.com/amazon/archives/142569.asp
mone3zetheviralspike
operational advantage
©ThoughtWorks2009
Takeaways
Cloud is critical leverage for true information-driven agility.
Major step towards ‘closing the production cycle loop’
What 'comes out of the wall' is not entirely described by the fact that it's coming out of the wall!
©ThoughtWorks2009
FriendingSocial
bebo
Ravelry
Get Satisfaction
©ThoughtWorks2009
Social Market
Development of consumer graphs is paramount. Enterprise penetration is very thin and inconsistent.
c2c networks
Innovation cycle:Early Majority
Blogs
ProductForums
Reputation Systems
©ThoughtWorks2009
Social Market
RecommendationEnginesDeliberately cultivated
communities around a brand or experience
b2c networks
Innovation cycle:Late Majority
©ThoughtWorks2009
Social Market
force.com
eBay, Amazon
Debated! Do social patterns have relevance to the b2b space?
b2b networks
Innovation cycle:Early Adopters
©ThoughtWorks2009
on corporate strategy..
"Corporate strategy is all about collecting information from many different sources, evaluating the probabilities of potential outcomes, and making decisions in the face of an uncertain future."
James SurowieckiThe Wisdom of Crowds
B2C is bottoms up!
Dell’sIdeaStorm
Glam zipcar
Obamacampaign
Sony VIAOLenovo
Comcast
TencentQQ
B2C is bottoms up!
Dell’sIdeaStorm
Glam zipcar
Obamacampaign
Sony VIAOLenovo
Comcast
TencentQQ
Allareopenlytryingto
inverttheirproduct/
service/branddesign
approaches
Spanish apparel retailerDominant supply chainStrong sales
How to take the next step?
Forecasting?
©ThoughtWorks2009
Zara
Realagilityinthesupplychain?For
anapparelcompany,that’sopera(onal
advantage.
©ThoughtWorks2009
Zara
HQ
design
store mgrs
clothes
forecasts,trends
targets of opportunity
#1worldwide
25%ofavgITspend
informationadvantage
©ThoughtWorks2009
Takeaways
Get your humans involved, use social tech to move specific knowledge
Employees, customers, all of them! Don't build a community; penetrate one. Social is relevant to b2b
Abandonthetechno‐hubrishegemony!
©ThoughtWorks2009
Current Favorite Short Case
SOCIAL
MOBILE
CLOUD
“We only have so much CapEx”
©ThoughtWorks2009
ThoughtWorks Conference Connection
“Howdowegetmovementinthis
market?”
“Buy everyone
Blackberrys”
“Build an iPhone app”
Conferencesareoneofourcoresocial
ecosystemplaygrounds.
Can we better penetrate this social graph?
Can we harness a cloud platform?
“Send people to mobile events”
©ThoughtWorks2009
ThoughtWorks Conference Connection
Can we better penetrate this social graph?
Can we harness a cloud platform?
Anchored on AppEngine
marketing / brandservice offeringsnew investmentsinformation
low investment
happy users
operational
For Conferences
and Attendees
©ThoughtWorks2009
SummaryHarness the platforms (then develop one!)Push your innovation past the technologies
Use the low cost clouds to position your knowledge systems for agility/operational advantage
There are humans in your (eco)systemUnderstand themAccount for themUse them!
©ThoughtWorks2009
Thank you!