Designing Digital Change, Synopsis Hong Kong, April 2016: In this session Mr. Nigel Green shares his experience of preparing organisations for the Digital World. He introduces key concepts that will help open-up the discussion of the implications, risks, and opportunities, of a digital strategy. Whilst the popular definition of “Going Digital” is often focused on digital channels for Marketing purposes, Mr. Green explains why it also impacts many areas of the organisation, and explains why it is not simply the CMO’s, CDO’s, or CIO’s challenge alone. He will also share tools and techniques used in the design & execution of the transformation to a digitally enabled business. In addition, he will discuss pragmatic next steps to take, and share ideas on how to contribute to a business-wide discussion on the subject. This session should be of interest to anyone trying to get to grips with what “Going Digital” means to their organization, and how to start planning the change: - The components of a digitally-enabled Business Model - The implications & risks of adopting “Bi-modal IT” - How to design for the protection of existing core business systems whilst embracing the new - Dealing with an unknown future, and adaptive long-range planning - The dangers of “Big Design Up Front”, and perhaps paradoxically, why “Adaptive Design” is ever more crucial - The business and technology architecture implications - including a perspective on the applicability of a pattern adopted by the “born digitals” (e.g. Netflix, Google, and Amazon) - Suggested subject matter experts to track, follow-up research material, and next steps to take.

1. Nigel Green
5Di Limited
Hong Kong, April 2016

2. http://www.azlyrics.com/lyrics/doors/roadhouseblues.html
“The future's
uncertain,
and the end
is always
near.”

3. Or at least nearer than we might think.

4. 2016
will be shaped by
digital transformation
with
availability, capabilities, and business needs
being the biggest related issues
IT leadership will face.

5. Credit to Patrizia Bertini: European Director of Research and Insights at Wipro Digital
So what’s do be done?

6. DESIGN

7. NEW SERVICES
INTRODUCED

8. ORGANISATION
MODEL

9. TECHNOLOGY
ARCHITECTURE

10. CHANGE
JOURNEY

11. Digital Transformation:
an energy business story

12. We’ve been operating like this for many
years - but the world’s changing…
Mr. Blue
the COO

13. We must start the journey - where to start?

14. Mr. Black,
the Progranme
Director
Mr. Red,
the IT
Director
Business Unit Leads
Mr. Green,
the
Consultant

15. He recognised, however, that this would be a
far-reaching transformation.

16. “It’s all about
better
Meter reading”
“It’s a way to
introduce new
tariffs”
There wasn’t common understanding of the
scope and impact…
“We just need a
few new web &
mobile apps”
“Its just another
meter roll-out
project”
“There are
some new
Cyber Security
Threats”

18. https://chapel-group.com

20. 2015 …..2020….. 2025

21. Timely visibility of external
events
Event information processed at
the edge of the Grid
Insights delivered to field
workforce quickly
Business-wide situational
awareness
Grid & Asset Management
Analytics
Customer personalised
customer support
Insights to customers
Provide information to the right people at the right time.

22. 2015…..2020….. 2025

23. They knew, however, the plan would change over time.
More on how they tackled this later.
https://chapel-group.com

24. They knew, however, the plan would change over time.
More on how they tackled this later.
Top-level support was won
– the most important step.
“We’re much clearer
on our direction. And
we now have the
support of the Exec
Comm.”

26. New Ways of Working for all

27. A two-speed approach to IT.
http://www.gartner.com/it-glossary/bimodal
Mode 1
Mode 2

28. “Our Australian
sister company
wants help with
their IT Strategy. ”
Mode 1
Mode 2“Should they
adopt Bimodal
IT?”

30. BU Leads

31. + Mode 1
Mode 2
+ +

32. The whole business sees the need for, & adopts
constant-change: People, Processes & Technology.
Integrate Re-assess
Innovate
Commoditise
Govern
People, Processes & Technology
MODE 1
MODE 2

33. The destination must include the whole business –
nothing should be out of scope.
Integrate Re-assess
Innovate
Commoditise
Govern
People, Processes & Technology
Mode 1
Mode 2
“Gartner’s work on Bimodal provides valuable advice on how to kick-start an enterprise
digital transformation. But leaders wishing to create a significant, lasting impact on IT
performance should look to move beyond the Bimodal paradigm in the space of months
rather than years.”
“Nothing should be out of scope—enterprise architecture, process, budgeting, and
governance, risk and compliance”.
- Jez Humble, “The Flaw at the heart of Bimodal IT, continuousdelivery.com
http://continuousdelivery.com/2016/04/the-flaw-at-the-heart-of-bimodal-it/

34. The technical bit

35. Date: early 2013

36. “My work
is done!” “Nice job!”

37. Tweet
Tweet
Tweet
Tweet
Something new was creating a buzz, so he
investigated, here’s what he found…
Blog
Blog
Blog
Date: mid 2014
Tweet
Tweet
Tweet
Tweet
Blog
Blog
Blog

38. Some firms were enjoying “digital”
advantages more than others, but how?

40. Digital natives:
• Google
• Netflix
• Uber
• Amazon
• Ebay
• PayPal Holdings Inc.
• Airbnb Inc.,
• Groupon
• Expedia
… and many more.
Traditional firms:
• GE
• Hewlett Packard Co.
• Capital One Financial Corp.
• Goldman Sachs Group Inc.
• The Guardian Media Group (UK)
• Thomas Cook PLC (UK)
• William Hill PLC (UK)
… watch this space.
Who’s leading?
A new approach is gaining traction.
What do these firms have in common?
Date: early 2016

41. They’re all adopting Microservices
Over half of organizations across the US, UK, India and Israel plan to deploy microservices
to improve their agility in the next 12 months, according to new research by IDG Connect –
March 15th 2016
http://www.businesswire.com/news/home/20160315005089/en/IDG-Connect-Microservices-Firms-Battle-Monolithic-Restrictions

42. http://scn.sap.com/blogs/geetikashukla/2015/02/25/microservices-the-dismantle-of-the-monolith
• Small
• Independent
• Lightweight
• Single purpose
• Communicate through well-defined interfaces (like REST APIs)
• Communicate events in Near-Real Time

44. “…you can put lipstick on a pig,
but it’s still a pig.”
“You can wrap an old fish in a
piece of paper called ‘change.’
It’s still gonna stink after eight
years.”
President Obama, 2008
The Microservices vanguard, 2016
Layering “digital” on top of legacy systems won’t achieve
genuine transformation over the long term.

46. } Agility. By breaking down functionality to the near atomic level, development teams focus
on only updating the relevant pieces of an application. This removes a painful process of
integration experienced with monolithic applications. Development processes that used to
take months now take weeks.
} Efficiency. Far more efficient use of code and underlying infrastructure. Users report
significant cost savings— reducing the amount of infrastructure required to run a given
application by 50%.
} Resiliency. The dispersion of functionality across services can avoid a single point of
failure. The result is systems that perform much better with very limited downtime, and
can scale seamlessly on demand.
} Revenue. Faster iteration and less downtime add up to more revenue. User retention
and user engagement increase as your product continuously improves.

47. Maybe, a better, faster cheaper to deliver…

48. https://chapel-group.com

49. “Google is helping to power the
world with clean energy. Our goal
is 100% renewable power, and
so far we’ve committed to
purchase over 2 gigawatts of
renewable energy – equivalent to
taking nearly 1 million cars off the
road and making us the largest
non-utility purchaser of
renewable energy in the world.
…”
Do you know who your “digital-disruptor” might be?

50. Adopting Microservices may seem attractive
but…

51. CC-BY-SA skippyjon via Flickr
http://syntegrity.com.au/blog/how-to-avoid-a-messy-transition-to-microservices/

53. Before adopting Microservices your firm must :
ü Be ready and willing to use Cloud platforms such as AWS, Azure or Google Cloud Platform.
ü Have (some) Microservices expertise available (maybe from your vendors?)
ü Have experience or be ready to move to Dev/Ops deployment methods
ü Have good systems architecture (specifically SOA) expertise
ü Be willing to adopt Agile ways of working
ü Have a track-record in building good software!

54. Date: late 2015
The ACME checklist:
x Be ready and willing to use Cloud platforms
x Have (some) Microservices expertise available
x Have experience or be ready to move to Dev/Ops deployment methods
x Have good systems architecture (specifically SOA) expertise
ü Be willing to adopt Agile ways of working
ü Have a track-record in building good software!

55. ü Google “Microservices”, watch the movies (Fred George’s video highly
recommended), and read the many articles.
ü Talk to your vendors- get them to explain their plans for Microservices and
how they can help (Microsoft Azure Service Fabric, for example).
ü Go on a training course (courses are being given by Chris Richardson in
China next week)
ü Check your internal skills base – you might be able set off a “Skunk Works”
PoC.
ü Talk to academia – maybe they’re thinking about a Microservices
“hackathon”?

57. Bringing it all together

59. “Any attempt to base today’s
actions and commitments on
predictions of future events is
futile.”
- Peter F. Drucker, Managing
for Results, 1964

60. The future seems complex and uncertain.
CC-BY jurvetson via Flickr

61. So how do we plan with so many unknowns?
CC-BY milos milosevic via Flickr
“Ambiguity is central to Boyd’s vision… not something to be feared but something that is a
given…We never have complete and perfect information. The best way to succeed is to revel
in ambiguity.” –Grant Hammond,

62. Transition State Planning
A
B

63. Transition State:
Outcomes
Objectives
Long term
Short term
Observe - Orient - Decide - Course-correct

64. Integrate Re-assess
Innovate
Commoditise
Govern
People, Processes & Technology
They’re all adopting Microservices
(MSA)
They knew, however, the plan would change over time.
More on how they tackled this later.
2016 2023
They’re all adopting Microservices
(MSA)
Mode 1
Mode 2
? ?

65. They knew, however, the plan would change over time.
More on how they tackled this later.
Transition State:
Outcomes
Objectives
Long term
Short term
Observe - Listen - Course-correct
“We have the maps
and charts we need
for the journey –
let’s go!”

66. http://www.azlyrics.com/lyrics/doors/roadhouseblues.html
The future's
uncertain,
and (maybe)
the end (of old
ways of working)
is near.

67. nigel.green@5dinnovation.com
www.5dinnovation.com
Twitter: taotwit
https://www.linkedin.com/in/nigelgreen

68. } Digital: The impact of digital technologies on
interaction with the customer, employee or any person.
} Transformation: ~50% or more of the business
operation will be touched by the change.
} Design: A plan or drawing produced to show the look
and function or workings of a building, garment, or
other object before it is made.

69. http://www.artofmanliness.com/2014/09/15/ooda-loop/

70. • blindly ‘going digital’, by any means
• forcing everything to be digitalized, dematerialized,
transposed into bit and bytes
• all to do with the development of new apps and tools.
Credit to Patrizia Bertini: European Director of Research and Insights at Wipro Digital

71. } Panel: The Business Implications of Microservices
} http://taotwits-too-big-to-tweet.blogspot.com/
2015/09/going-digital-agile-architecture.html