As industries digitally transform their existing business models to fend off competitors or disrupt new markets, they find their IT to be a limiting factor. In this session, we cover the trends of disruptions and opportunities of digital transformation, and the evolution of IT monoliths to microservices and now cloud native services. We also explore dependency management, or “lock in,” through a “choosing, using, and losing” mental model. Finally, we explore chaos architecture as an evolving method for exposing weaknesses before they become real problems.

2. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Trends in Digital Transformation

3. OLD WORLD IT
Employees at work
Factories + supply chainSales channels
Marketing analytics

4. Employees at work
Factories + supply chainSales channels
Marketing analytics
OLD WORLD IT
NEW WORLD IT

5. NEW WORLD IT Employees at work
Factories +
supply chain
IoT-connected
things
Online
marketing
Continuous
supply tracking
Just-in-time
production
Online sales
+ delivery
Social media

6. Personalization
Customer analytics
New channels direct to customer
More things, more scale, rapid change
New needs

7. AWS: Unblocking
innovation for digital
transformation

8. Culture Skills Organization Finance
Leadership
systems and
feedback
Training and
compensation
Silos
project to
product
Capex
versus
Opex
Blockers for innovation

9. Centralized slow decision-making
Lack of trust
Inflexible policies and processes
Leadership systems
and feedback

10. Stephen Orban
Ahead in the Cloud
Mark Schwartz
A Seat at the Table
Leadership systems
and feedback

11. If you want to build a ship, don’t drum up
the people to gather wood, divide the
work, and give orders. Instead, teach them
to yearn for the vast and endless sea.
Antoine de Saint-Exupéry
Author of Le Petit Prince (The Little Prince)
Culture

12. Nordstrom Technology NorDNA Culture Deck
Culture

13. 1. Values are what we value
2. High performance
3. Freedom & responsibility
4. Context, not control
5. Highly aligned, loosely coupled
6. Pay top of market
7. Promotions & development
Seven aspects
of Netflix culture
Culture

14. • Customer
obsession
• Ownership
• Invent and
simplify
• Are right, a lot
• Hire and develop
the best
• Insist on the
highest standards
• Think big
• Bias for action
• Frugality
• Learn and
be curious
• Earn trust
of others
• Dive deep
• Have backbone;
disagree and
commit
• Deliver results
Amazon leadership
principles
Culture

15. Intentional
Appropriate
Judgement
Culture

16. Blockers for innovation
Culture Skills Organization Finance
Leadership
systems and
feedback
Training and
compensation
Silos
project to
product
Capex
versus
Opex

17. Train existing staff on cloud tech
Fund pathfinder teams
Be prepared to pay more to keep the
best people after training!
Training and
compensation

18. Training and
compensation
Get out of the way
of innovation
Read the new book
Powerful by Patty McCord
Netflix Chief Talent Officer

19. Blockers for innovation
Culture Skills Organization Finance
Leadership
systems and
feedback
Training and
compensation
Silos
project to
product
Capex
versus
Opex

20. Move from projects
to product teams
Long-term product ownership
Continuous delivery
DevOps and “run what you wrote”
Reduce tech-debt and lock-in

21. Move from projects
to product teams
The Phoenix Project
The DevOps
Handbook
By Gene Kim and
others

22. Blockers for innovation
Culture Skills Organization Finance
Leadership
systems and
feedback
Training and
compensation
Silos
project to
product
Capex
versus
Opex

23. Is your CTO defining your
technology architecture or is
the CFO really in charge?
Capex versus Opex

24. Data center to cloud waterfall to
agile and DevOps
Understand the impact on EBITDA
Plan ahead, don’t surprise the CFO or
your shareholders
Capex versus Opex

25. Speed Scale Strategic
Time to value Distributed
optimized
capacity
Critical workloads
data center
replacement
!
Pathway for digital transformation

26. The fast
companies are 440x faster than
the slow
Months Hours
We found that, compared to low performers, high performers have:
46 times more frequent code deployments
440 times faster lead time from commit to deploy
170 times faster mean time to recover from downtime
5.0 times lower change failure rate (1/5 as likely for a change to fail)
Time to value
https://itrevolution.com/book/accelerate/

27. Time to value (2018 DORA Report)
The elite
companies are 2555xfaster than
the slow
The elite are moving further ahead …
We found that, compared to low performers, high performers have:
46 times more frequent code deployments
2555 times faster lead time from commit to deploy
2604 times faster mean time to recover from downtime
7 times lower change failure rate (1/7 as likely for a change to fail)
https://itrevolution.com/book/accelerate/

28. Speed Scale Strategic
Time to value Distributed
optimized
capacity
Critical workloads
data center
replacement
!
Pathway for digital transformation

29. Highly scaled
Distributed for availability
Cost-optimized high utilization
Cloud-native architecture
Distributed optimized capacity

30. Pay as you go, afterwards
Self service – No waiting
Globally distributed by default
Cross-zone/region availability models
High utilization – Turn idle resources off
Immutable code deployments
Cloud-native principles

31. Speed Scale Strategic
Time to value Distributed
optimized
capacity
Critical workloads
data center
replacement
!
Pathway for digital transformation

32. “You can’t legislate against
failure, focus on fast detection
and response.”
– Chris Pinkham

33. A fire drill is a boring
routine where we make
everyone take the stairs
and assemble in the
parking lot
People
training
!

34. Fire drills save lives in
the event of a real fire,
because people are
trained how to react
People
training

35. Infrastructure
Switching
Application
People
Who runs the
“fire drill” for IT?

36. Infrastructure
Switching
Application
People
Chaos
engineering
team

37. Chaos testing ensures that you have:
Experienced staff
Robust applications
Dependable switching fabric
Redundant service foundation

38. Expensive and custom disaster recovery
is being replaced by low-cost, portable,
automated chaos engineering

39. Speed Scale Strategic
Time to value Distributed
optimized
capacity
Critical workloads
data center
replacement
!
Pathway for digital transformation

40. Thank you!
© 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.