General shortened version of the presentation covering evolution, change, mapping, ecosystems, cloud, economic cycles, commoditisation, componentisation, strategy and open approaches.
2. LEF tracks the co-evolution of Business & IT
Developing an Outside-In
Operating Model
Research-Based Services
Visioning, strategy,
advice, coaching,
executive education,
diagnostics, assessments,
staff development, training
workshops, presentations,
The Future of Data & ERP Weapons of Mass events, study tours
Discussion
2012 Research 2013 Research Previous Research
Leading Edge Forum 01/29/13 01:57 2
13. Value Chain
Machine
Company
(Machine)
Standard
Pipes
Company Nuts & Bolts
(Nut & Bolts)
Armory
System
Screw
Cutting Lathe
Metal Ingots
Company
(Lathes)
23. Value Chain
Customer
Fotango
Image
Manipulation Payment
Photo Storage
Web Site Banking systems
Customer Platform
Relationship
System Development Tools
(CRM)
Distributed
Architecture
Compute
Data Centre
The Company
Servers
Power
24. Customer
Value Chain Fotango
Online Image
Map
Payment
Manipulation
Online Photo
Storage Web Site
CRM
Distributed Platform
Architecture
Data Centre Compute
Power
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
29. Value Chain
Chaotic
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
30. Value Chain Fotango
Rare
Online Image
ManipulationUnderstood
Poorly
Online Photo
Storage
Differential
Competitive Advantage
High unit value
Distributed
Constantly changing
Architecture
Undefined market
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
31. Value Chain
Linear
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
32. Value Chain
Commonplace
Well Understood
Web Site & Operations
Efficiency
CRM
Cost of doing business
Volume operations
Standardised
Defined market
Compute
Power
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
33. Value Chain
Linear
Competition
Chaotic
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
35. Value Chain
AGILE
Strong Weak
SIX SIGMA
Weak Strong
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
36. Value Chain
Outsource
SIX SIGMA
Weak Strong
... tends to apply
single technique ...
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
37. Value Chain
Change
Control +++
... with a common
consequence ...
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
38. Value Chain
... only
somethings are
suitable
Outsource
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
48. Computing Infrastructure
Past
Compute
(Product)
Novel
Architectural Emerging Good Practice Best Practice
Practice Practice (Scale Up) (Scale Up)
(Scale Up) (Scale Up)
Evolution
49. Novel Architectural
Practice Emerging
(Scale Out, Practice Good Practice
Distributed Systems) (Scale Out) Future Best
(Scale Out)
Practice
(Scale Out)
Past Compute
Compute
(Product) (Utility)
Best Practice
(Scale Up)
Evolution
50. Good Practice
(Scale Out)
Co-Evolution
Compute Compute
(Product) (Utility)
Best Practice
(Scale Up)
Evolution
51. Good Practice
(Scale Out)
New Estate
But we want the "DevOps"
benefits ...
Compute Compute
(Product) (Utility)
Legacy
Estate
Best Practice
(Scale Up)
Evolution
52. Good Practice
But we don't (Scale Out)
want to re- New Estate
architect ... "DevOps"
Cost
Compute Compute
(Product) (Utility)
Legacy
Estate
Best Practice
(Scale Up)
Evolution
55. Value Chain
Vendors have ...
Past Success
Inertia
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
56. Million
$2,000 3%
and the new
$1,500 world is changing
slowly ...
$1,000
$500
$0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Analyst Estimates for EC2 Revenue
57. Million
$30,000 50%
$22,500 Hang on, this
can't be right ...
$15,000
$7,500
3%
$0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Analyst Estimates for EC2 Revenue
67. Utility
Ubiquity
Product
Cloud is standard
evolutionary shift ...
Certainty
68. Ubiquity
ion
etit
p
C om
Consumer
... caused by
competition
Supplier Certainty
69. Value Chain
Worth
... resulting in
standard benefits
Agility
e
fac
er
Efficiency
Int
Competition
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
70. Value Chain
... which we have
inertia to
Inertia
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
71. Value Chain
... along with a
change in
competition
Peace War
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
72. “Red Queen”
The need to constantly
evolve in order to stand still
relative to a surrounding
ecosystem
Prof.Van Valen ... that kills
75. Good Practice
(Scale Out)
New Estate
"DevOps"
Co-Evolution
Compute Compute
(Product) (Utility)
Legacy
Estate
Best Practice
(Scale Up)
Evolution
76. 60%
View on Open Source
Three forms of
50%
organisation in
the wild ...
40%
30%
20%
10%
0%
Nothing Cost Rely Engaged Weapon
Traditional Web 2.0 Next Generation
77. Type Traditional Next Generation
Organisation
Structure Departmental Service / Cell
Culture Inertia Fluid / Gameable
Corporate Focus Profit Disruption
Strategy / Tactical
Open source Cost Reduction Weapon
Learning Analysts Ecosystem
"Big" Data Used Driven By
Resilience N+1 Design For Failure
Failure Testing Disaster Recovery Chaos Engines
Practice
Capacity Scale Up Scale-out
Technique Single Mixed
Deployment Change Control Continuous
Activity
Infrastructure Enterprise Class Commodity
78. Value Chain
More cell based
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
82. 40%
We have a formal process for
Open Technology
30%
Traditional
20%
Web 2.0
10%
0%
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
83. Our company deploys an open technology
60%
approach as a means of outmaneouvering
competitors
40%
Traditional Web 2.0
20%
0%
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
84. Value Chain
IOS
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
85. Value Chain
IOS
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
86. Value Chain
Data Centre
Open
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
87. Type Traditional Next Generation
Organisation
Structure Departmental Service / Cell
Culture Inertia Fluid / Gameable
Corporate Focus Profit Disruption
Strategy / Tactical
Open source Cost Reduction Weapon
Learning Analysts Ecosystem
"Big" Data Used Driven By
Resilience N+1 Design For Failure
Failure Testing Disaster Recovery Chaos Engines
Practice
Capacity Scale Up Scale-out
Technique Single Mixed
Deployment Change Control Continuous
Activity
Infrastructure Enterprise Class Commodity
101. Web 2.0
Traditional
Strategic Play
Uses Open to Compete
102. Players
Doing well ...
Strategic Play
Uses Open to Compete
103. Type Traditional Next Generation
Organisation
Structure Departmental Service / Cell
... More
Culture Inertia Fluid / Gameable like
Corporate Focus Profit Disruption
Strategy / Tactical
Open source Cost Reduction Weapon
Learning Analysts Ecosystem
"Big" Data Used Driven By
Resilience N+1 Design For Failure
Failure Testing Disaster Recovery Chaos Engines
Practice
Capacity Scale Up Scale-out
Technique Single Mixed
Deployment Change Control Continuous
Activity
Infrastructure Enterprise Class Commodity
104. Customer
Value Chain Fotango
.... Manipulate
Online Image
Payment
Manipulation Open Source,
Online Photo Open Data,
Storage
APIs
Web Site
CRM
Distributed Platform
Architecture
Data Centre Compute
Power
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)
106. Thinkers
Doing OK ...
Strategic Play
Uses Open to Compete
107. Strategic Play
Believers
Whoops ...
Uses Open to Compete
108. Strategic Play
Chancers
Oh dear ...
Uses Open to Compete
109. Type Traditional Next Generation
Organisation
Structure Departmental Service / Cell
Look Like ...
Culture Inertia Fluid / Gameable
Corporate Focus Profit Disruption
Strategy / Tactical
Open source Cost Reduction Weapon
Learning Analysts Ecosystem
"Big" Data Used Driven By
Resilience N+1 Design For Failure
Failure Testing Disaster Recovery Chaos Engines
Practice
Capacity Scale Up Scale-out
Technique Single Mixed
Deployment Change Control Continuous
Activity
Infrastructure Enterprise Class Commodity
126. Value Chain
Step 7.
Worth Manipulate the
environment
(Strategy)
Agility
e
fac
er
Efficiency
Int
Open
Genesis Custom Product Commodity Evolution
Built (+ rental) (+ utility)