The document discusses how enterprises can transform into responsive enterprises by embracing a model of continuous feedback and improvement powered by software. It argues that software is the key to business value and that enterprises should organize themselves as hierarchical yet flexible feedback systems. Developers are seen as the engines of growth, and decision-making should be data-driven. The responsive enterprise approach promotes agility, failure, and rapid learning from feedback to stay aligned with a changing environment.

1. Jaykumar Ghaghada
L20394262

2. What caught my eye?

3. Five fastest-growing companies
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
2004 1976 1968 1987 1975
118.80%
55.90%
48.50% 47.60%
41.80%

4. Bottom five companies that lost market capitalization
0
20
40
60
80
100
1900(mergers) 1812 1900 1973(mergers) 1962
5.00% 4.90% 2.60%6.30% 4.30%

5. The Responsive Enterprise:
Embracing the HackerWay
A Responsive Enterprise is a Software Company
The People Side of the Responsive Enterprise
Transforming into a Responsive Enterprise

6. The Responsive Enterprise:
Embracing the HackerWay
A Responsive Enterprise is a Software Company

7. A Responsive Enterprise is a Software
Company
In this new world:
Business = data + algorithms
Its value is in the real - time data and algorithms. Uber uses to transform this data into decisions.
Runs it whole operation on public cloud infrastructure.

8. A Responsive Enterprise is a Software
Company
Software promotes agility.
• Company ignoring feedback(No-control system)
- Grow older and become deaf to feedback & external
input.

9. Model Introduction in Foreword
• A no-control system produces output based only on their internal echo
chambers(Figure 3).
• Example:

10. A Responsive Enterprise is a Software
Company
Software promotes agility.
• Company ignoring feedback(No-control system)
- Grow older and become deaf to feedback & external
input.
• Traditional Company(Open-loop system)
- Difficult to adjust quickly to changes in environment.

11. Model Introduction in Foreword
• A open-loop control system computes the control input to the system
using only the external input, but without taking into account the current
output of the system(Figure 1).
• A open-loop control system works well with full knowledge of a static
word, but it falls apart when the environment evolves, or when there is
no perfect model of the system under control.
• Example:
Cab Driver and the Passenger who wants that taxi.

12. A Responsive Enterprise is a Software
Company
Software promotes agility.
• Company ignoring feedback(No-control system)
- Grow older and become deaf to feedback & external input.
• Traditional Company(Open-loop system)
- Difficult to adjust quickly to changes in environment.
• Responsive Enterprise (Closed-loop system)
- A/B testing
- Multi-armed bandit testing

13. Model Introduction in Foreword
• A closed-loop control system takes into account the current output of
the system and feeds this information back to the controller, which
combines these measurements with the current external input to
continuously correct and optimize the system under control (Figure 2).
• Example:

14. A Responsive Enterprise is a Software
Company
Failures are acceptable, feedback must be quick.
• Responsive enterprises accept that accept all failures will always
happen
- Guard from cascading failures by purposefully causing
failures.
• Developers can be stimulated to write better software by
providing them immediate and physical feedback.
- Elementary Psychology
• View as a Mealy machine ( non deterministic )

15. The Responsive Enterprise:
Embracing the HackerWay
A Responsive Enterprise is a Software Company
The People side of the Responsive Enterprise

16. The People side of the Responsive
Enterprise
A responsive enterprise powered by software must deeply embrace
developers as the engine for growth.
The “Seven aspects of our Culture”
1. Values are what we value
2. High Performance
3. Freedom and Responsibility
4. Context, not Control
5. Highly Aligned, Loosely Coupled
6. PayTop of Market
7. Promotions and Development

17. The People side of the Responsive
Enterprise
Context, not Control
• Give developers strict guidelines and orders.
• Provide them immediate and real-time feedback.
• Provide and enforce this context.
• Keep developers happy and productive within these well-defined
bounds.

18. The People side of the Responsive
Enterprise
Pay top of market.

19. The People side of the Responsive
Enterprise
Highly Aligned, loosely coupled.
There is much to learn from the military.
Software development should follow the
Philosophy of Command:
“In order to support the fluid an chaotic nature of the battlefield,
command must be decentralized. Subordinate leaders must use
their own initiative to accomplish tasks which support their
senior’s intent.”

20. The People side of the Responsive
Enterprise
Freedom and responsibility
• Traditional Enterprise
-Traditions are enclosed as process.
- Process causes organizational deafness, which leads to the
downfall of a no-feedback system.
• Responsive Enterprise
-Traditions have no role
-The contrapositive is that in a high-tech company composed of
first-rate hackers, there is no need for process.
• No company embodies the hacker culture better than Facebook

21. The Responsive Enterprise:
Embracing the HackerWay
A Responsive Enterprise is a Software Company
The People side of the Responsive Enterprise
Transforming into a Responsive Enterprise

22. Transforming into a Responsive
Enterprise
1. Embrace that software is at the heart of everything you do.
2. Organize yourself as a fractal closed-loop real-time feedback system at each
level of the organization, with bidirectional feedback loops between layer.
3. Effective organization are hierarchical, like it not.
4. Developers are the engines of growth and are responsible for the tactical level
of the operation.
5. Middle management only provides operational context linking strategy with
tactics.
6. Decision making is mostly driven by data as opposed to status and seniority.
7. The senior leadership team sets strategic (macro) long-term direction.

23. The Responsive Enterprise:
Embracing the HackerWay
A Responsive Enterprise is a Software Company
The People side of the Responsive Enterprise
Transforming into a Responsive Enterprise
Conclusion?

24. The Responsive Enterprise:
Embracing the HackerWay
Conclusion
• Sooner than you may think, every company will be a software
company.
• The obvious way to run a software is as a meta software application,
recursively structured as a layer of commuting closed-loop feedback
systems, using a strictly layered architecture modeled after the
time-proven hierarchical structure of armies and applying software
inspired profiling and debugging techniques to optimize the
profitability of the enterprise.

25. The Responsive Enterprise:
Embracing the HackerWay
Inspired by this article:
• Responsive enterprise is a survival way in this new world for the enterprises,
and “software company” is an data-proven and attractive approach to make
one enterprise a closed-loop system.
• Even though the environment is updating with the traditional enterprises cliché
changing, us practitioners in IT field still need to develop from the conventions.
• Under the new circumstances
- A “hacker” or a mediocre bean counter?
- How to survive in this prevailing Hacker culture?

26. Thank you for your time.
Any questions ?