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(ISM308) 9 Best Practices to Avoid Stalled Cloud Transformation

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You've successfully completed proofs-of-concept using the cloud. You've staffed a cross-functional cloud tiger team to define standards. You've communicated broadly and won executive support. Why is your cloud transformation program stalling? If this sounds familiar, know that you're not alone. Many organizations experience program delays, with some delays lasting 12 months or longer. We spoke with leaders, project consultants, and engineers from mature organizations that have successfully accelerated through program delays. In this session, we discuss what we learned about why cloud transformation programs stall even when you do everything right and share nine best practices for avoiding or breaking through a delay.

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(ISM308) 9 Best Practices to Avoid Stalled Cloud Transformation

  1. 1. © 2015, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Eric Tachibana, Professional Services October 2015 ISM308 Keep Cloud Transformation on Track Ten Best Practices to Avoid or Break Through a Stalled Cloud Transformation Program
  2. 2. What to expect from the session • Learn from research done by AWS Professional Services to understand why many enterprise cloud transformation programs stall in the field • Discuss 10 best practices shared by enterprises who were able to break through the stall
  3. 3. Most transformation programs will stall in the field
  4. 4. Stall [stawl] verb 1.1 stop or cause to stop making progress 1.2 (of a motor vehicle or its engine) stop running, typically because of an overload on the engine
  5. 5. accelerate through the stall 10% experience a prolonged stall at around 20% adoption 70% never recover 20%
  6. 6. Here is what we’d like to see in a cloud adoption…
  7. 7. CUSTOMER 1 0 5 10 15 20 25 30 35 40 45 1 4 7 10 13 16 19 22 25 CUSTOMER 2 0 10 20 30 40 50 1 4 7 101316192225 CUSTOMER 3 CUSTOMER 4 0 10 20 30 40 50 60 1 4 7 101316192225 0 10 20 30 40 50 60 70 80 1 4 7 101316192225 CUSTOMER 5 CUSTOMER 6 CUSTOMER 7 0 10 20 30 40 50 60 70 1 4 7 10 13 16 19 22 25 0 10 20 30 40 50 60 1 4 7 101316192225 0 20 40 60 80 100 1 4 7 101316192225 STALLED 9 MONTHS STALLED 18 MONTHS STALLED 8 MONTHS STALLED 18 MONTHS STALLED 15 MONTHS STALLED 8 MONTHS STALLED 14 MONTHS Jan 2013: What we actually saw in Asia * Cheerio Score is used as a proxy for growth rates. However, it holds price drops and revenue outliers constant ESCAPED? ESCAPED? ESCAPED? STUCK STUCK STUCK STUCK CUSTOMER 8 0 10 20 30 40 50 60 1 4 7 101316192225 STALLED 16 MONTHS STUCK
  8. 8. * Cheerio Score is used as a proxy for growth rates that hold price drops and revenue outliers constant Enterprises behaved the same way globally… CUSTOMER 9 CUSTOMER 10 CUSTOMER 11 CUSTOMER 12 0 20 40 60 80 100 1 4 7 10 13 16 19 22 25 0 10 20 30 40 50 60 1 4 7 10 13 16 19 22 25 0 10 20 30 40 50 60 1 4 7 10 13 16 19 22 25 CUSTOMER 13 CUSTOMER 14 CUSTOMER 15 0 20 40 60 80 100 1 4 7 10 13 16 19 22 25 0 20 40 60 80 1 4 7 10 13 16 19 22 25 0 20 40 60 80 1 4 7 10 13 16 19 22 25 0 20 40 60 80 100 1 4 7 10 13 16 19 22 25 STALLED 20 MONTHS STALLED 9 MONTHS STALLED 18 MONTHS STALLED 12 MONTHS STALLED 25 MONTHS STALLED 15 MONTHS STALLED 10 MONTHS
  9. 9. accelerate through the stall 10% experience a prolonged stall at around 20% adoption 70% never recover 20%
  10. 10. That’s hundreds of millions of dollars in delayed transformation each year
  11. 11. What if you could escape the stall?
  12. 12. THE GOOD NEWS! There are proven tools we can use
  13. 13. S-curves are a natural law of product markets MARKETSATURATION
  14. 14. S-curves are made up of groups of buyers
  15. 15. These groups share buying goals and buying behaviors herd :
  16. 16. S Because of the differences between buying groups….
  17. 17. Several crises emerge in the process… THE CHASM!!! (this is the BIG one) Crack 2 Crack 1
  18. 18. The Chasm occurs because Early Majority and Early Adopters are so different
  19. 19. It is new to the market It is the fastest product It is the easiest to use It has elegant architecture It has unique functionality It is the de facto standard It has the largest installed base It has most third-party supporters It has great support It has low cost of ownership s What they want is different Early Adopters Early Majority
  20. 20. What does all this mean for you?
  21. 21. Managers in enterprises BEHAVE THE SAME as consumers in consumer markets
  22. 22. The Great Stall is actually Moore’s Chasm!!!
  23. 23. Accelerating through the Great Stall is the same as Crossing the Chasm
  24. 24. 10 things you need to do differently in your cloud transformation program…
  25. 25. 01 Admit you’ve got a problem What made your change initiative successful thus far is not relevant for the next stage in adoption. Next step Do a lean-ux user persona workshop to understand the early majority in your enterprise.
  26. 26. 02 Change and incentivize the team members Your cloud enablement team is likely full of innovators, led by an early adopter, and very poachable. Next step Bring in new team members who can open doors into the Early Majority market, bring key supplementary skills, and provide lots of positive reinforcement.
  27. 27. 03 Identify the beachhead You need a strategic market entry project that you can complete. Your victory will impress follow-on Early Majority buyers. Next step Do a beachhead analysis workshop to develop your decision rubric and analyze the context.
  28. 28. 04 Identify the bowling pins Don’t boil the ocean. It’s about momentum, not volume. Next step Re-use your beachhead decision rubric, and run a bowling pin analysis workshop.
  29. 29. 05 Re-position / Re-communicate Change the communications script to speak to the early majority psyche. Next steps Adopt a cloud-first strategy led from the top. Throw out your existing communications plan and do a new one.
  30. 30. 06 Re-prioritize the offering Deliver the product halo and remember that transformation != migration. Next step Revisit your MVP and start to experiment again with the offering, but use a new group of target customers.
  31. 31. 07 Address Early Majority org ecosystem Clear barriers proactively, and don’t bring a knife to a gunfight – bring in experts here. Next steps Put cloud first into vendor RFPs. Get on the front foot with finance and financial reporting, security, legal, and procurement.
  32. 32. 08 Be heard and seen Communicate wins. And then communicate wins. And then after that communicate wins. Next step Develop a communications tactical plan that reflects Early Majority values, and start delivering it.
  33. 33. 09 Lead, lead, lead Leaders must stay engaged and visible. They must also discipline with carrots and sticks. Next step Require middle managers to get certified, and encourage senior managers to set examples by sitting beside them.
  34. 34. 10 Automate It was fine to do things manually in the early phase, but that will never scale to thousands of apps. Next step Get your people trained with DevSecOps and DevSecOps on AWS. Reuse a Bot Army like GE or a Simian Army like Netflix.
  35. 35. Admit you have a problem Change the team members Identify the beachhead Identify the bowling pins Re-position Re-prioritize the offering Work on the ecosystem Be heard and seen Lead Automate Say what?!?
  36. 36. How can we help?
  37. 37. 01Consultancy Services Accelerator Programs
  38. 38. 02Leverage customer-to-customer contacts
  39. 39. 03 Broadly train. A few stars cannot implement an all-in approach alone
  40. 40. 04Facilitate vendor-to-vendor collaboration
  41. 41. Remember to complete your evaluations!
  42. 42. Thank you!
  43. 43. CREATIVE COMMONS ATTRIBUTIONS Toilet Slide: https://www.flickr.com/photos/japokskee/ Money Slide: https://www.flickr.com/photos/68751915@N05/ Jumping Slide: https://www.flickr.com/photos/vinothchandar/ Book cover Slide: http://www.amazon.com/Crossing-Edition-Collins-Business-Essentials-ebook/dp/B00DB3D81G S-Curve Slide: http://www.technology.org/2013/06/25/the-long-road-for-electric-vehicles/ Lifecycle vis-à-vis s-curve Slide: http://en.wikipedia.org/wiki/Diffusion_of_innovations Crossing the Chasm Bell Curve & Summary: http://www.slideshare.net/khberglund/crossing-the-chasm-henrik-berglund D-Day Slide: http://www.uscg.mil/history/articles/h_normandy.asp

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