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STKI IT Knowledge Integrators
Company Confidential
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Our new website and part of its contents:
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Our new website and part of its contents:
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examples of our content (video)
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Let's start with some definitions:
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Product-led
Organization
Digital Transformation Disruption
Xtreme (Post-digital) Adaptation
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intro
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My 2021-2022 reading list
I recommend the following:
Magazines & Books
(I read all of them)
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Product Management Books
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Product Management Books
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Business Books
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Economics Books
Forecasting books
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forecasting
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WHEN IT RAINS IT POURS:
global & local events affecting business technology in Israel
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• War between Russia and Ukraine
• Price of oil and gas increases
• Inflation maybe pushing the world into a recession.
• Interest rates increasing after years of “free money”
• “STARTUP” BUBBLE , profit the new name of the game
• Massive layoffs will occur in startups and will get bad, very
quickly, likely sometime mid next year (in Silicon Valley more than 700
start-ups have laid off over 100,000 workers this year)
• Possibility that the health situation deteriorates
• 2022 election’s results & 2023 State Budget
• Several hyperscalers opening Israeli Regions
• Technical Debt low priority in budget allocations
• CEOs pushing IT (again) to be only an enabler
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Predictions That Were So Wrong
But I Will Do Some Anyway
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Predictions for Israel @ 2023
a year of market challenges, bold decisions, and disruptive innovation.
• Hybrid Workspace & Workers
• Hybrid-cloud Core Technology Stack
• SaaS Enterprise Solutions
• Smart Automation
• (processes, testing, operations, etc.)
• Cloud First Development
• Communication & Knowledge Software
• FinOps services
• Zero-trust SASE
• Product-led organizations
• IT as the Business
• Technology & Products Division
• AI & Data Science
• Ecosystems & Super Apps
• Blockchain
• AR (augmented reality) (not metaverse)
• Israeli-Based Hyper-scalers
• Industry-specific Clouds
• Open Industry Integration (APIs)
• Composable Software (center office)
• Regularly modified & tested BCP
• Self-service Analytics
• Outsourcing
• Staff Augmentation
• Managed Services
• Co-location services
• Low code (citizen developers)
• Metaverse
• CDOs (digital or data) powered by IT
• Software licenses to subscriptions
• CAPEX to OPEX
• Uniting NOC & SOC centers
• Technical Debt is starting to be paid:
• Old on-prem ERP to cloud
• Closing on-prem Data Centers
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Predictions for Israel @ 2023
a year of market challenges, bold decisions, and disruptive innovation.
• Hybrid Workspace & Workers
• Hybrid-cloud Core Technology Stack
• SaaS Enterprise Solutions
• Smart Automation
• (processes, testing, operations, etc.)
• Cloud First Development
• Communication & Knowledge Software
• FinOps services
• Zero-trust SASE
• Product-led organizations
• IT as the Business
• Technology & Products Division
• AI & Data Science
• Ecosystems & Super Apps
• Blockchain
• AR (augmented reality) (not metaverse)
• Israeli-Based Hyper-scalers
• Industry-specific Clouds
• Open Industry Integration (APIs)
• Composable Software (center office)
• Regularly modified & tested BCP
• Self-service Analytics
• Outsourcing
• Staff Augmentation
• Managed Services
• Co-location services
• Low code (citizen developers)
• Metaverse
• CDOs (digital or data) powered by IT
• Software licenses to subscriptions
• CAPEX to OPEX
• Uniting NOC & SOC centers
• Technical Debt is starting to be paid:
• Old on-prem ERP to cloud
• Closing on-prem Data Centers
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FOURTH INDUSTRIAL REVOLUTION
FOURTH INDUSTRIAL REVOLUTION
Most people don’t realize that
DIGITAL DISRUPTION is the FOURTH INDUSTRIAL REVOLUTION.
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First Industrial Revolution: The evolution of society in the eighteenth and nineteenth
centuries from mostly agrarian to industrial and urban, which was mostly driven by
mechanical innovations such as the steam engine.
Second Industrial Revolution: The explosive growth of industries from the late 1800s to
the First World War. This was driven by mass-production techniques, electric power, and the
internal combustion engine.
Third Industrial Revolution: The widespread change (mixing computing & communication
to the masses) beginning in the 1980s with PCs, cellular phones and internet, due to new
electronic technologies.
Fourth Industrial Revolution: Modeling & mixing the physical, digital, and biological worlds
through algorithms (AI) & technologies. The major driver is the availability of massive
computing capacity from Hyperscale Cloud Technology Providers
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Availability of Hyperscale Cloud Technology’s massive computing capacity
is one of the biggest technological shifts of our lifetime;
it is going to fundamentally change everything.
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• The GOOGLE effect: separation of humans and information
• The WHATSAPP effect: Free communications, death of distance
• The ZOOM effect: Virtualization of family, classroom & business meetings
• The WOLT effect: Virtualization of food delivery experience
• The FACEBOOK effect: Virtualization of human relationships
• The AIRB&B effect: Virtualization of short-term accommodations
• The LINKEDIN effect: Virtualization of specialized knowledge and employment opportunities
• The AMAZON effect: Virtualization of customer experience
• The WAZE effect: Virtualization and crowdsourcing of automobile travel
• The SPOTIFY, APPLE MUSIC effect: Personalization of music consumerist
• The INSTAGRAM, SNAPCHAT, YOUTUBE effect: Virtualization of content sharing
• The YELP, TRIPADVISOR effect: Virtualization of Consumer Reviews
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Customers loved pandemic-era services and
want them to continue, even if they’d never
used them pre-pandemic.
Customers loved pandemic-era services and
want them to continue, even if they’d never
used them pre-pandemic.
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• The GOOGLE effect: separation of humans and information
• The WHATSAPP effect: Free communications, death of distance
• The ZOOM effect: Virtualization of family, classroom & business meetings
• The WOLT effect: Virtualization of food delivery experience
• The FACEBOOK effect: Virtualization of human relationships
• The AIRB&B effect: Virtualization of short-term accommodations
• The LINKEDIN effect: Virtualization of specialized knowledge and employment opportunities
• The AMAZON effect: Virtualization of customer experience
• The WAZE effect: Virtualization and crowdsourcing of automobile travel
• The SPOTIFY, APPLE MUSIC effect: Personalization of music consumerist
• The INSTAGRAM, SNAPCHAT, YOUTUBE effect: Virtualization of content sharing
• The YELP, TRIPADVISOR effect: Virtualization of Consumer Reviews
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Customers loved pandemic-era services and
want them to continue, even if they’d never
used them pre-pandemic.
Customers loved pandemic-era services and
want them to continue, even if they’d never
used them pre-pandemic.
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“every
company
(including
yours)
will be a
software
company”
No matter what industry
a company is in, it relies
on software to plan and
deliver on key business
objectives.
• means through which
we communicate,
collaborate, and
execute.
• factor that shapes
both the employee
and customer
experience.
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“every
company
(including
yours)
will be a
software
company”
No matter what industry
a company is in, it relies
on software to plan and
deliver on key business
objectives.
• means through which
we communicate,
collaborate, and
execute.
• factor that shapes
both the employee
and customer
experience.
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FinTech:
Software firms that automate the delivery of financial services
Innovation has long been focused on the consumer banking. Business banking
remains stuck in neutral and business services such as real time treasury,
payments and receivables will be available first by FinTechs
Competing directly with TRADITIONAL BANKS & FINANCIAL INSTITUTIONS
InsurTech:
Software firms that make it possible for customers to research and buy insurance
online. Digital tools had made it easy to write auto insurance profitably online, 15 minutes to save
15%.
Competing directly with TRADITIONAL INSURANCE COMPANIES
creative destruction disruptive innovation
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FinTech:
Software firms that automate the delivery of financial services
Innovation has long been focused on the consumer banking. Business banking
remains stuck in neutral and business services such as real time treasury,
payments and receivables will be available first by FinTechs
Competing directly with TRADITIONAL BANKS & FINANCIAL INSTITUTIONS
InsurTech:
Software firms that make it possible for customers to research and buy insurance
online. Digital tools had made it easy to write auto insurance profitably online, 15 minutes to save
15%.
Competing directly with TRADITIONAL INSURANCE COMPANIES
creative destruction disruptive innovation
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• All of you (today) offer a variety of software
services that make it easier (self service) for
costumers to solve their specific “problem”
• You will offer more and more software
products (as will your traditional and tech
competitors) giving more & more value to
customers
YOUR COMPANY will have to be a
SOFTWARE COMPANY
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• All of you (today) offer a variety of software
services that make it easier (self service) for
costumers to solve their specific “problem”
• You will offer more and more software
products (as will your traditional and tech
competitors) giving more & more value to
customers
YOUR COMPANY will have to be a
SOFTWARE COMPANY
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DIGITAL DISRUPTION:
Migration from the Third to the Fourth Industrial Revolution Era.
re-defines the value proposition of the business using technology products
that significantly change customer behavior and market conditions.
Most companies will become
product-based software companies
DIGITAL TRANSFORMATION:
Effects of the Fourth Industrial Revolution
Continue transforming business activities, processes & competencies
delivering products that deliver value
drive advantages (impacts) for companies and customers.
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distinguishing between:
disruption takeoff and sustained transformation :
• Successful DISRUPTION is the tipping point for successful
operation of the enterprise from one generation of the
industrial revolution to the next,
• TRANSFORMATION during the industrial revolution needs to
sustain the new business model. The disruption is incomplete
if the new business model cannot be built with an eye toward
perpetual evolution.
70% of enterprises fail in the disruption/transformation efforts:
There are two ways in which they can fail.
• first, fail to take off
• second, to maintain momentum, and they end up crashing.
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distinguishing between:
disruption takeoff and sustained transformation :
• Successful DISRUPTION is the tipping point for successful
operation of the enterprise from one generation of the
industrial revolution to the next,
• TRANSFORMATION during the industrial revolution needs to
sustain the new business model. The disruption is incomplete
if the new business model cannot be built with an eye toward
perpetual evolution.
70% of enterprises fail in the disruption/transformation efforts:
There are two ways in which they can fail.
• first, fail to take off
• second, to maintain momentum, and they end up crashing.
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• Imagine attaching a World War II airplane engine to a modern commercial jet aircraft.
The old engine would not have the power needed for the plane to take off and stay aloft.
• And yet, most enterprises undergoing digital transformation do exactly that ,when they rely on
older versions of IT organizational structures and capabilities to power the change
• The digital enterprise needs a new design of engine (i.e., IT function) to power takeoff and staying aloft,
just as modern aircraft needed a new breed of engines in the 1950s.
• The modern engines for digital are the new “Product Teams” based organization
and cloud-based solutions.
This can be fatal for a fully
synchronized digital transformation.
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Is Your IT Function a Piston Engine or a Gas-Turbine Engine?
Different enterprises have different names:
• CIO, ‫מנמ‬
"
‫ר‬ , VP Technologies, CISO
• Chief Data Officer, Chief Digital Officer,
• Chief Business Services, Chief Transformation Officer,
Most enterprises also have or are thinking about multiple organizations
doing these functions.
STKI strongly believes that all these enabling functions need to come
together. That is the major part of the “engine upgrade”
IT technologies, IT scope of operations, and IT skills all have incredibly
short life cycles. What’s new is that the
piston-engine version of IT has reached an inflection point.
IT needs a consciously different engine. We’re no
longer talking evolution; we’re talking about a
dramatically different redesign.
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old IT
new IT
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• The new IT function is not just about new technology
platforms, a new charter of work, or newer skills; it is
about leading all the other functions and business units
in the company to new product-enabled business models.
• The digital enterprise needs digital to be understood by
every function, but powered by the new IT.
• Which is why STKI believes that the new function needs a
totally new charter and a new name
• Products and Technologies Division .
‫וטכנולוגיות‬ ‫מוצרים‬ ‫חטיבת‬
Products and Technologies Division.
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Evolution of software
development
1990 -2022
Over the past 30 years, STKI has seen a rapid evolution in:
• how we ORGANIZE,
• DISCOVERY of what we want TO DO and what
we need NOT TO DO
• DELIVERY of the final product
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1990s:
Business leaders owned discovery and a
project manager with programmers tried to
deliver it on schedule and on budget
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The Evolution of Modern Software “Discovery & Delivery”
 Discovery happened once a year in an annual budgeting process
 Projects with fixed timelines were assigned to specific development teams.
 A project manager managed the work, budget, and schedule.
 Waterfall project management was used (mapping into distinct, sequential phases).
 Projects were often delivered late and over budget.
 Business needs often trumped customer needs.
 The enormous time lag between business requirements and the delivery of technology
that answered those needs, led to the cancelling of many projects.
 Business requirements, and customer requisites changed during this time, and the
final product did not meet the then current needs.
 Teams learned that many times customers never used it (offered limited value)
1990s: Business leaders owned discovery (they decided what to build)
project manager with programmers tried to deliver it on schedule and on budget
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2001: A group of software engineers (in a
mountain retreat) proposed the Agile manifesto.
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2001: A group of software engineers (in a mountain retreat)
proposed the Agile manifesto.
 Our highest priority is to satisfy the customer through early and continuous
delivery of valuable software (continuous delivery of value)
 Welcome changing requirements, even late in development. Agile processes
harness change for the customer's competitive advantage.
 Deliver working software frequently, from a couple of weeks to a couple of
months, with a preference to the shorter timescale.
 Businesspeople and developers must work together daily throughout the
project.
 Build projects around motivated individuals. Give them the environment and
support they need and trust them to get the job done.
 The most efficient and effective method of conveying information to and
within a development team is face-to-face conversation.
Cont. 2 : Evolution of Modern Software “Discovery & Delivery”
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 Working software is the primary measure of progress.
 Agile processes promote sustainable development. The sponsors, developers, and
users should be able to maintain a constant pace indefinitely.
 Continuous attention to technical excellence and good design enhances agility.
 Simplicity the art of maximizing the amount of work not done.
 The best architectures, requirements, and designs emerge from self-organizing
teams.
 At regular intervals, the team reflects on how to become more effective, then
tunes and adjusts its behavior accordingly.
Cont: Manifesto for Agile Software Development
Cont. 3 : Evolution of Modern Software “Discovery & Delivery”
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2002-2019: Agile in name only
Faking Digital
You aren't Agile or Digital because of what you call yourself.
You are Agile or Digital because of what you do.
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2002-2019: partial agile (agile in name only) & faking digital
 Discovery and Delivery are completely separate functions
 Business leaders didn’t give up ownership of “discovery” they kept their original ideas
 Most “delivery” teams weren’t good at estimating unpredictable work (time or budget)
 Biweekly sprints killed any chance of finding a continuously sustainable pace or innovation
ideas
 Continued operating on an annual budgeting cycle, making flexibility nearly impossible.
 Teams measured by features they delivered, not whether anyone used it or if it created any
value
 Very few projects were successful and used by clients for over 5 years (Chaos Report)
 Faking Digital is the practice of implementing technologies for operational & financial
effectiveness and adding new “front-end” applications without changing the business itself.
Cont. 4 : Evolution of Modern Software “Discovery & Delivery”
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• The digital age began 75 years ago, (invention of the
transistor)
• Digital calculators & watches introduced 50 years ago
• Internet is more than 50 years old
• First browser created 30 years ago
• IBM PC was introduced 40 years ago.
• Apple is 45 years old
• STKI is 30 years old
• Google is 25 years old
• iPhone is 15 years old
NOW is the time to move beyond the
digital transformation buzzword
Disruptions at the start of a New Industrial Revolution Era
demand a different game plan than simple
transformations of the current business model.
Digital is an “old mantra”
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Let’s not confuse
Faking Digital with Digital Disruption
Faking Digital
is the practice of implementing technologies for operational
& financial effectiveness and adding new “front-end”
applications without changing the business itself.
Corporate immune system working at full speed.
DIGITAL DISRUPTION
is the Xtreme Adaptation of the organization’s
business model by changing the
DNA-culture of both the enterprise & industry
digital
disruption
Faking
Digital
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The Standish Group
published a study called
the “Chaos Report,” which
cited that
nearly 84 percent
of projects will
either fail or go
over budget.
.
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The Chaos Report also
said that
“most features are
rarely or never used.”
During this era, it's not
just that we were not
building software
predictably; we were
not even building the
right things.
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2020: Lessons from the
pandemic era and startup
knowledge spillover
Implementing the “real” thing
-”lean and agile development”-
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It is time to press ahead with Digital Disruption,
learning from and applying the techniques from Start-ups,
transitioning into a “software company”
Start-ups are all about Xtreme adaptation based on
PRODUCTS and EMPOWERED TEAMS
change change change
large established business
make millions of excuses and obstacles for
not adapting
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During the covid-19 era most projects were led by junior managers,
moved fast, didn’t wait for meetings, business & IT merged and gave impressive results
Merging DISCOVERY and DELIVERY into ONE team
PROJECTS moved toward PRODUCTS
(IT moved from enabler of the business to being the business itself) :
• Collective-business wisdom of the zoom IT crowd-cloud
• Business knowledge of most front-line team members
• Comfortable offering non-standard processes and solutions for business outcomes
• Challenged assumptions giving honest and constructive feedback
2020 - : Lessons from the pandemic era
Cont. 4 : Evolution of Modern Software “Discovery & Delivery”
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 Questioning how discovery (what to build) decisions were made
 Pushing discovery decisions from business to product managers and the whole product team.
 Rather than just validating ideas, teams are co-creating with customers (from the beginning)
 Combining the team’s knowledge of what’s technically possible with the customer’s knowledge of
their own needs, pain points, and desires to build better products.
 Teams are adapting to changes in the market, in customer needs, and in technology, in real time.
 Adding Lean Practices to Agile Principles
 Include Value Stream Management
 Optimize the whole process. Without having a view of the whole process/system, we won’t know
what to optimize.
 add activities, processes, and automation that validate that the software meets the customer’s
needs.
Cont. 5 : Evolution of Modern Software “Discovery & Delivery”
2020 - : Lessons from startup knowledge spillover (LEAN + AGILE)
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The whole PRODUCT team contributes to
Continuous “Discovery & Delivery”
Continuous
Discovery
Continuous
Delivery
Product
life cycle
Design Thinking
The whole team is involved in customer interviews, mapping the customer
journey, ideating on solutions, discussing delivery options, developing the
code, supporting the product and responsible for outcomes
not a one-time activity, it is never
done, it must evolve
build, rebuild, ship & support
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Software products today “SHOULD” be conceived, designed, built, and
delivered by a cross-functional team that is part of the value stream
Team’s actors
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Software products today “SHOULD” be conceived, designed, built, and
delivered by a cross-functional team that is part of the value stream
Team’s actors
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Software products today “SHOULD” be conceived, designed, built, and
delivered by a cross-functional team that is part of the value stream
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Recently, STKI analysts received many questions from teams
chasing frameworks, tools or methodologies,
dreaming that each new innovation will suddenly magically,
effortlessly unlock the door for the
move from project to product based
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 OUTCOME ORIENTED mindset (outcomes rather than features / outputs)
 CUSTOMER-CENTRIC mindset places the customer at the center & that the
purpose of every business is to create and serve a customer.
 COLLABORATIVE mindset requires cross-functional nature of product work and
rejects the siloed model
 VISUAL mindset stepping beyond spoken and written language and into the
power of spatial thinkers by drawing, externalizing thinking mapping knowledge.
 EXPERIMENTAL mindset encourages scientific-thinking by identifying assumptions
and gathering evidence.
 EVOLVE FROM A PROJECT MINDSET TO A CONTINUOUS MINDSET infuse
discovery continuously throughout your delivery.
Product Team success
not just tactics or tools but the need to change the mindset.
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PROJECT PRODUCT
FUNDING Annual
Continuous with frequent
checkpoints for funding and
resources changes
TIMELINE Formal start and end dates
Continuous, ongoing, no firm end
dates but when not needed it is
retired
TEAMS
Matrix orchestration across
departments and technical
domains (silos)
Multidisciplinary, breaking
functional & specialization silos,
most of the team is full time
METRICS
On-time and on-budget
(sometimes also business
outcomes)
Business centric metrics
(customer satisfaction, profit,
market share, etc)
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FEATURE
based
on-prem
“application”
PROJECT
development
cost
OUTCOME based
PRODUCT
development cost
yearly
“USAGE PLUS
SUBSCRIPTION”
variable cost
(SaaS
consumption
model)
yearly usage
variable
expenses cost
on-prem cloud
PROJECT PRODUCT
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Three different types of Product Teams
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Platform Teams
provide common services to be implemented once but used in
many places, help in managing complexity by encapsulating
particularly difficult or specialized areas of the product.
Pini Cohen
Experience Teams
responsible for how the product is experienced (getting a
solution for the problem) by users in the form of apps, UIs,
solutions, or journeys.
Galit Fein
Data Product Teams
Focus on the process of collecting, organizing, storing, and sharing
data within an organization, they use that data to build a feature
for an experience team or build a whole data product.
(types: output data as a service, data-enhanced products, and data as
insights)
Einat Shimoni
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The goals of EXPERIENCE AND DATA TEAMS are
to solve problems for users and customers,
The goals of a PLATFORM TEAM is to enable the
experience and data teams to better solve problems
TEAM OBJECTIVES not the only work that a product
team is responsible for, also “keep‐the‐lights‐on”
We do need to keep an eye on this ongoing work because,
if it spikes, the team won't be able to make much progress
on their team objectives.
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Beware of
“Group-Think”
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Outcomes vs Outputs (features)
Lessons from Top Tech Companies
an OUTCOME is a CHANGE in human
behavior** that DRIVES business results.
** “human behavior” can apply to users’ behavior, customers’
behavior, or staff and employee behavior
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• In the old days setting project goals wasn’t that hard.
• If you’re making cars, you’re done when they roll off the
assembly line.
• But when making software products, done is less obvious.
• When is Microsoft word done? When is google done?
• Software systems are never done. We just decide to stop
working on them, or make an endless list of features and ask
our teams to work on that list—forever?
• The problem is that features can be finished and delivered and
“work perfectly” but still deliver NO VALUE
how many of these
buttons do you
use in real life?
Our world is full of “features” that work as specified
and yet deliver no value.
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 Starting with outcomes, rather than outputs, is
what lays the foundation for product success.
 By shifting focus to the impact on both
customers and business results (outcomes) the
team is clearly communicating the value it will
create.
 When the businesspeople leave it up to the
team to explore the best outputs that might
drive the outcome, they are giving the team
the latitude they need to create value for the
customer.
from an output (features) mindset to an outcome (business) mindset
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Don’t mix
Assumptions with Knowledge
MVP is just a buzzword that
means “experiment”
in order to turn
assumptions into knowledge.
run
experiments
what are the customer
behaviors that drive
business results?
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Outcomes (human behaviors that drive business results) is what happens
when you deliver the right features.
You could manage a team by telling them what to make:
that’s called managing outputs. It’s a problem because
features don’t always deliver value.
You could manage a team by asking them to target some
high-level business result That’s called managing
impact. It’s a problem because it’s not specific enough.
What you want is to manage with outcomes: ask
teams ”what is the customer behavior change that we
are looking for?” That allows them to find the right
solution
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Product Manager combines (numerous inputs) into a coherent Product Roadmap
outcome
based
roadmap
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Products and Technologies Division
Disruption & Transformation Road Map
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Products and Technologies Division
Disruption & Transformation Road Map
(where are you?
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Traditional IT with steroids
The Digital Disruption & Transformation Road Map
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1. Traditional IT with steroids
• Moving from “data processing” to “information technology”
• You’re finally budgeting and prioritizing “technical debt” payment
• You’re trying to upgrade technology to the latest platforms (from
older (on-prem to SaaS applications) including cloud, AI, etc.
• Business (CEO, CFO) don’t see ROI in upgrades (misunderstanding
of technical debt)
• Enterprise applications are not connected
• Infrastructure department is over-staffed (too many technologies)
• No Industrial Engineering group to optimize processes
• You’re not really “transforming the enterprise.”
• You’re “digitalizing” some operations. And seeing benefits.
• You have some fake digital products, customer relations, or
operations.
The Digital Disruption & Transformation Road Map (2)
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This is the cost of having to work on:
• Outdated infrastructure (software/ hardware)
• Outdated software (several versions behind latest vendor version or
old onprem versions)
• ERP and/or CRM
• Core systems based on outdated technologies (not in itself broken
systems) but are critical to day-to-day operations
• Outdated data management tools (ETL, DW, BI)
• Upgrading and automating old processes and killing non-necessary
ones
• Inability to integrate applications or processes (in-house or partners)
• Missing documentation
• Un-commented configuration
• Un-documented code changes
Traditional IT with steroids:
Finally paying our “technical debt”?????
The Digital Disruption & Transformation Road Map (3)
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This is the cost of having to work on:
• Outdated infrastructure (software/ hardware)
• Outdated software (several versions behind latest vendor version or
old onprem versions)
• ERP and/or CRM
• Core systems based on outdated technologies (not in itself broken
systems) but are critical to day-to-day operations
• Outdated data management tools (ETL, DW, BI)
• Upgrading and automating old processes and killing non-necessary
ones
• Inability to integrate applications or processes (in-house or partners)
• Missing documentation
• Un-commented configuration
• Un-documented code changes
Traditional IT with steroids:
Finally paying our “technical debt”?????
The Digital Disruption & Transformation Road Map (3)
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The Digital Disruption & Transformation Road Map (4)
SILOED IT
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2. SILOED IT
• Bureaucracy, old processes, technical debt hinder
automation, transformation and disruption at scale
• Parts of the organization are experimenting with
transformational business models and products
• Experimenting with data products
• Moving to best-of-breed enterprise applications
• There is no enterprise-wide product strategy to
completely transform your business model itself.
• Very strong Disruption DNA firewall
The Digital Disruption & Transformation Road Map (5)
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Upon returning, had to declare to
customs the items he was
bringing back from the moon:
mainly rock and dust samples.
Aldrin was reimbursed exactly $ 10 for “travel
expenses. Luckily, he was not responsible for
paying for actual transportation from Earth
to the moon—or even to Cape Kennedy,
Florida, where Apollo 11 launched, as he
had a government planes for that.
OLD PROCESSES NEVER DIE:
Bureaucracy, old processes for NASA astronaut Buzz Aldrin when he came back from the moon
The Digital Disruption & Transformation Road Map (6)
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IT Dilemma:
managing the middle way
The Digital Disruption & Transformation Road Map (7)
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3. IT Dilemma: managing the middle way
• Your enterprise has a mix of old and new digital business
models, processes, and products.
• Implementing
• self-service data services
• Data Science projects
• API gateways and management tools
• All new applications are following a corporate-wide strategy.
• Disruption DNA firewall still exists
• Management is not convinced of the need of disruptive
applications (Parmenides Fallacy)
The Digital Disruption & Transformation Road Map (8)
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The Digital Disruption & Transformation Road Map (9)
(especially xxxtech startups)
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Enlightened IT
The Digital Disruption & Transformation Road Map (10)
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4. Enlightened IT
• You’re delivering industry-leading customer results, innovative
digital products, and best-in-class operational efficiency.
• Implementing enterprise-wide data & digital literacy programs
• Hippo vs data
• Implementing open industry standards
• You’re not winning always
• You’re digitally optimized for the moment.
• Re-organizing the business-technology relationship
by building “PRODUCT TEAMS” and the new
“Products and Technologies Division”
‫וטכנולוגיות‬ ‫מוצרים‬ ‫חטיבת‬
The Digital Disruption & Transformation Road Map (11)
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The Digital Disruption & Transformation Road Map (12)
Hippo Dominated Vs Data Obsessed
data literacy programs
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Products and Technologies Division
‫וטכנולוגיות‬ ‫מוצרים‬ ‫חטיבת‬
The Digital Disruption & Transformation Road Map (13)
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5. Products and Technologies Division
‫וטכנולוגיות‬ ‫מוצרים‬ ‫חטיבת‬
• Experience, Data and Platform teams deliver business impacts
• Value as the main outcome with an enterprise-wide product strategy
• Transformation is fully synchronized & disruption is in the DNA
• The organization has transformed into a software company
• The organization is:
• Data-driven
• Cloud first development
• SaaS Enterprise Solutions
• Simplifies business processes using intelligent automation
• Provides personalized concierge value as-a-service
• Experiments with Blockchain and Augmented Reality
• Orchestrates ecosystems in order to build B2B and B2C super apps
• All this powered by the Products and Technologies Division
The Digital Disruption & Transformation Road Map (14)
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Any questions
STKI IT Knowledge Integrators
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Page 94

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STKI Summit 2022 presentation Jimmy

  • 1. STKI.INFO 1 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI IT Knowledge Integrators Company Confidential Page 1
  • 2. STKI.INFO 2 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Our new website and part of its contents: STKI IT Knowledge Integrators Company Confidential Page 2
  • 3. STKI.INFO 3 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Our new website and part of its contents: STKI IT Knowledge Integrators Company Confidential Page 3
  • 4. STKI.INFO 4 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph examples of our content (video) STKI IT Knowledge Integrators Company Confidential Page 4
  • 5. STKI.INFO 5 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Let's start with some definitions: STKI IT Knowledge Integrators Company Confidential Page 5
  • 6. STKI.INFO 6 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI IT Knowledge Integrators Company Confidential Page 6
  • 7. STKI.INFO 7 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Product-led Organization Digital Transformation Disruption Xtreme (Post-digital) Adaptation STKI IT Knowledge Integrators Company Confidential Page 7
  • 8. STKI.INFO 8 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph intro STKI IT Knowledge Integrators Company Confidential Page 8
  • 9. STKI.INFO 9 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph My 2021-2022 reading list I recommend the following: Magazines & Books (I read all of them) STKI IT Knowledge Integrators Company Confidential Page 9
  • 10. STKI.INFO 10 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Product Management Books STKI IT Knowledge Integrators Company Confidential Page 10
  • 11. STKI.INFO 11 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Product Management Books STKI IT Knowledge Integrators Company Confidential Page 11
  • 12. STKI.INFO 12 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Business Books STKI IT Knowledge Integrators Company Confidential Page 12
  • 13. STKI.INFO 13 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Economics Books Forecasting books STKI IT Knowledge Integrators Company Confidential Page 13
  • 14. STKI.INFO 14 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph forecasting STKI IT Knowledge Integrators Company Confidential Page 14
  • 15. STKI.INFO 15 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph WHEN IT RAINS IT POURS: global & local events affecting business technology in Israel 15 • War between Russia and Ukraine • Price of oil and gas increases • Inflation maybe pushing the world into a recession. • Interest rates increasing after years of “free money” • “STARTUP” BUBBLE , profit the new name of the game • Massive layoffs will occur in startups and will get bad, very quickly, likely sometime mid next year (in Silicon Valley more than 700 start-ups have laid off over 100,000 workers this year) • Possibility that the health situation deteriorates • 2022 election’s results & 2023 State Budget • Several hyperscalers opening Israeli Regions • Technical Debt low priority in budget allocations • CEOs pushing IT (again) to be only an enabler STKI IT Knowledge Integrators Company Confidential Page 15
  • 16. STKI.INFO 16 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Predictions That Were So Wrong But I Will Do Some Anyway STKI IT Knowledge Integrators Company Confidential Page 16
  • 17. STKI.INFO 17 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Predictions for Israel @ 2023 a year of market challenges, bold decisions, and disruptive innovation. • Hybrid Workspace & Workers • Hybrid-cloud Core Technology Stack • SaaS Enterprise Solutions • Smart Automation • (processes, testing, operations, etc.) • Cloud First Development • Communication & Knowledge Software • FinOps services • Zero-trust SASE • Product-led organizations • IT as the Business • Technology & Products Division • AI & Data Science • Ecosystems & Super Apps • Blockchain • AR (augmented reality) (not metaverse) • Israeli-Based Hyper-scalers • Industry-specific Clouds • Open Industry Integration (APIs) • Composable Software (center office) • Regularly modified & tested BCP • Self-service Analytics • Outsourcing • Staff Augmentation • Managed Services • Co-location services • Low code (citizen developers) • Metaverse • CDOs (digital or data) powered by IT • Software licenses to subscriptions • CAPEX to OPEX • Uniting NOC & SOC centers • Technical Debt is starting to be paid: • Old on-prem ERP to cloud • Closing on-prem Data Centers STKI IT Knowledge Integrators Company Confidential Page 17
  • 18. STKI.INFO 18 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Predictions for Israel @ 2023 a year of market challenges, bold decisions, and disruptive innovation. • Hybrid Workspace & Workers • Hybrid-cloud Core Technology Stack • SaaS Enterprise Solutions • Smart Automation • (processes, testing, operations, etc.) • Cloud First Development • Communication & Knowledge Software • FinOps services • Zero-trust SASE • Product-led organizations • IT as the Business • Technology & Products Division • AI & Data Science • Ecosystems & Super Apps • Blockchain • AR (augmented reality) (not metaverse) • Israeli-Based Hyper-scalers • Industry-specific Clouds • Open Industry Integration (APIs) • Composable Software (center office) • Regularly modified & tested BCP • Self-service Analytics • Outsourcing • Staff Augmentation • Managed Services • Co-location services • Low code (citizen developers) • Metaverse • CDOs (digital or data) powered by IT • Software licenses to subscriptions • CAPEX to OPEX • Uniting NOC & SOC centers • Technical Debt is starting to be paid: • Old on-prem ERP to cloud • Closing on-prem Data Centers STKI IT Knowledge Integrators Company Confidential Page 18
  • 19. STKI.INFO 19 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI IT Knowledge Integrators Company Confidential Page 19
  • 20. STKI.INFO 20 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph FOURTH INDUSTRIAL REVOLUTION FOURTH INDUSTRIAL REVOLUTION Most people don’t realize that DIGITAL DISRUPTION is the FOURTH INDUSTRIAL REVOLUTION. STKI IT Knowledge Integrators Company Confidential Page 20
  • 21. STKI.INFO 21 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph First Industrial Revolution: The evolution of society in the eighteenth and nineteenth centuries from mostly agrarian to industrial and urban, which was mostly driven by mechanical innovations such as the steam engine. Second Industrial Revolution: The explosive growth of industries from the late 1800s to the First World War. This was driven by mass-production techniques, electric power, and the internal combustion engine. Third Industrial Revolution: The widespread change (mixing computing & communication to the masses) beginning in the 1980s with PCs, cellular phones and internet, due to new electronic technologies. Fourth Industrial Revolution: Modeling & mixing the physical, digital, and biological worlds through algorithms (AI) & technologies. The major driver is the availability of massive computing capacity from Hyperscale Cloud Technology Providers STKI IT Knowledge Integrators Company Confidential Page 21
  • 22. STKI.INFO 22 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Availability of Hyperscale Cloud Technology’s massive computing capacity is one of the biggest technological shifts of our lifetime; it is going to fundamentally change everything. STKI IT Knowledge Integrators Company Confidential Page 22
  • 23. STKI.INFO 23 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph • The GOOGLE effect: separation of humans and information • The WHATSAPP effect: Free communications, death of distance • The ZOOM effect: Virtualization of family, classroom & business meetings • The WOLT effect: Virtualization of food delivery experience • The FACEBOOK effect: Virtualization of human relationships • The AIRB&B effect: Virtualization of short-term accommodations • The LINKEDIN effect: Virtualization of specialized knowledge and employment opportunities • The AMAZON effect: Virtualization of customer experience • The WAZE effect: Virtualization and crowdsourcing of automobile travel • The SPOTIFY, APPLE MUSIC effect: Personalization of music consumerist • The INSTAGRAM, SNAPCHAT, YOUTUBE effect: Virtualization of content sharing • The YELP, TRIPADVISOR effect: Virtualization of Consumer Reviews 23 Customers loved pandemic-era services and want them to continue, even if they’d never used them pre-pandemic. Customers loved pandemic-era services and want them to continue, even if they’d never used them pre-pandemic. STKI IT Knowledge Integrators Company Confidential Page 23
  • 24. STKI.INFO 24 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph • The GOOGLE effect: separation of humans and information • The WHATSAPP effect: Free communications, death of distance • The ZOOM effect: Virtualization of family, classroom & business meetings • The WOLT effect: Virtualization of food delivery experience • The FACEBOOK effect: Virtualization of human relationships • The AIRB&B effect: Virtualization of short-term accommodations • The LINKEDIN effect: Virtualization of specialized knowledge and employment opportunities • The AMAZON effect: Virtualization of customer experience • The WAZE effect: Virtualization and crowdsourcing of automobile travel • The SPOTIFY, APPLE MUSIC effect: Personalization of music consumerist • The INSTAGRAM, SNAPCHAT, YOUTUBE effect: Virtualization of content sharing • The YELP, TRIPADVISOR effect: Virtualization of Consumer Reviews 24 Customers loved pandemic-era services and want them to continue, even if they’d never used them pre-pandemic. Customers loved pandemic-era services and want them to continue, even if they’d never used them pre-pandemic. STKI IT Knowledge Integrators Company Confidential Page 24
  • 25. STKI.INFO 25 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph “every company (including yours) will be a software company” No matter what industry a company is in, it relies on software to plan and deliver on key business objectives. • means through which we communicate, collaborate, and execute. • factor that shapes both the employee and customer experience. STKI IT Knowledge Integrators Company Confidential Page 25
  • 26. STKI.INFO 26 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph “every company (including yours) will be a software company” No matter what industry a company is in, it relies on software to plan and deliver on key business objectives. • means through which we communicate, collaborate, and execute. • factor that shapes both the employee and customer experience. STKI IT Knowledge Integrators Company Confidential Page 26
  • 27. STKI.INFO 27 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph FinTech: Software firms that automate the delivery of financial services Innovation has long been focused on the consumer banking. Business banking remains stuck in neutral and business services such as real time treasury, payments and receivables will be available first by FinTechs Competing directly with TRADITIONAL BANKS & FINANCIAL INSTITUTIONS InsurTech: Software firms that make it possible for customers to research and buy insurance online. Digital tools had made it easy to write auto insurance profitably online, 15 minutes to save 15%. Competing directly with TRADITIONAL INSURANCE COMPANIES creative destruction disruptive innovation STKI IT Knowledge Integrators Company Confidential Page 27
  • 28. STKI.INFO 28 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph FinTech: Software firms that automate the delivery of financial services Innovation has long been focused on the consumer banking. Business banking remains stuck in neutral and business services such as real time treasury, payments and receivables will be available first by FinTechs Competing directly with TRADITIONAL BANKS & FINANCIAL INSTITUTIONS InsurTech: Software firms that make it possible for customers to research and buy insurance online. Digital tools had made it easy to write auto insurance profitably online, 15 minutes to save 15%. Competing directly with TRADITIONAL INSURANCE COMPANIES creative destruction disruptive innovation STKI IT Knowledge Integrators Company Confidential Page 28
  • 29. STKI.INFO 29 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph • All of you (today) offer a variety of software services that make it easier (self service) for costumers to solve their specific “problem” • You will offer more and more software products (as will your traditional and tech competitors) giving more & more value to customers YOUR COMPANY will have to be a SOFTWARE COMPANY STKI IT Knowledge Integrators Company Confidential Page 29
  • 30. STKI.INFO 30 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph • All of you (today) offer a variety of software services that make it easier (self service) for costumers to solve their specific “problem” • You will offer more and more software products (as will your traditional and tech competitors) giving more & more value to customers YOUR COMPANY will have to be a SOFTWARE COMPANY STKI IT Knowledge Integrators Company Confidential Page 30
  • 31. STKI.INFO 31 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph DIGITAL DISRUPTION: Migration from the Third to the Fourth Industrial Revolution Era. re-defines the value proposition of the business using technology products that significantly change customer behavior and market conditions. Most companies will become product-based software companies DIGITAL TRANSFORMATION: Effects of the Fourth Industrial Revolution Continue transforming business activities, processes & competencies delivering products that deliver value drive advantages (impacts) for companies and customers. STKI IT Knowledge Integrators Company Confidential Page 31
  • 32. STKI.INFO 32 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph distinguishing between: disruption takeoff and sustained transformation : • Successful DISRUPTION is the tipping point for successful operation of the enterprise from one generation of the industrial revolution to the next, • TRANSFORMATION during the industrial revolution needs to sustain the new business model. The disruption is incomplete if the new business model cannot be built with an eye toward perpetual evolution. 70% of enterprises fail in the disruption/transformation efforts: There are two ways in which they can fail. • first, fail to take off • second, to maintain momentum, and they end up crashing. STKI IT Knowledge Integrators Company Confidential Page 32
  • 33. STKI.INFO 33 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph distinguishing between: disruption takeoff and sustained transformation : • Successful DISRUPTION is the tipping point for successful operation of the enterprise from one generation of the industrial revolution to the next, • TRANSFORMATION during the industrial revolution needs to sustain the new business model. The disruption is incomplete if the new business model cannot be built with an eye toward perpetual evolution. 70% of enterprises fail in the disruption/transformation efforts: There are two ways in which they can fail. • first, fail to take off • second, to maintain momentum, and they end up crashing. STKI IT Knowledge Integrators Company Confidential Page 33
  • 34. STKI.INFO 34 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph • Imagine attaching a World War II airplane engine to a modern commercial jet aircraft. The old engine would not have the power needed for the plane to take off and stay aloft. • And yet, most enterprises undergoing digital transformation do exactly that ,when they rely on older versions of IT organizational structures and capabilities to power the change • The digital enterprise needs a new design of engine (i.e., IT function) to power takeoff and staying aloft, just as modern aircraft needed a new breed of engines in the 1950s. • The modern engines for digital are the new “Product Teams” based organization and cloud-based solutions. This can be fatal for a fully synchronized digital transformation. STKI IT Knowledge Integrators Company Confidential Page 34
  • 35. STKI.INFO 35 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Is Your IT Function a Piston Engine or a Gas-Turbine Engine? Different enterprises have different names: • CIO, ‫מנמ‬ " ‫ר‬ , VP Technologies, CISO • Chief Data Officer, Chief Digital Officer, • Chief Business Services, Chief Transformation Officer, Most enterprises also have or are thinking about multiple organizations doing these functions. STKI strongly believes that all these enabling functions need to come together. That is the major part of the “engine upgrade” IT technologies, IT scope of operations, and IT skills all have incredibly short life cycles. What’s new is that the piston-engine version of IT has reached an inflection point. IT needs a consciously different engine. We’re no longer talking evolution; we’re talking about a dramatically different redesign. STKI IT Knowledge Integrators Company Confidential Page 35
  • 36. STKI.INFO 36 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph old IT new IT STKI IT Knowledge Integrators Company Confidential Page 36
  • 37. STKI.INFO 37 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph • The new IT function is not just about new technology platforms, a new charter of work, or newer skills; it is about leading all the other functions and business units in the company to new product-enabled business models. • The digital enterprise needs digital to be understood by every function, but powered by the new IT. • Which is why STKI believes that the new function needs a totally new charter and a new name • Products and Technologies Division . ‫וטכנולוגיות‬ ‫מוצרים‬ ‫חטיבת‬ Products and Technologies Division. STKI IT Knowledge Integrators Company Confidential Page 37
  • 38. STKI.INFO 38 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Evolution of software development 1990 -2022 Over the past 30 years, STKI has seen a rapid evolution in: • how we ORGANIZE, • DISCOVERY of what we want TO DO and what we need NOT TO DO • DELIVERY of the final product STKI IT Knowledge Integrators Company Confidential Page 38
  • 39. STKI.INFO 39 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 1990s: Business leaders owned discovery and a project manager with programmers tried to deliver it on schedule and on budget STKI IT Knowledge Integrators Company Confidential Page 39
  • 40. STKI.INFO 40 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph The Evolution of Modern Software “Discovery & Delivery”  Discovery happened once a year in an annual budgeting process  Projects with fixed timelines were assigned to specific development teams.  A project manager managed the work, budget, and schedule.  Waterfall project management was used (mapping into distinct, sequential phases).  Projects were often delivered late and over budget.  Business needs often trumped customer needs.  The enormous time lag between business requirements and the delivery of technology that answered those needs, led to the cancelling of many projects.  Business requirements, and customer requisites changed during this time, and the final product did not meet the then current needs.  Teams learned that many times customers never used it (offered limited value) 1990s: Business leaders owned discovery (they decided what to build) project manager with programmers tried to deliver it on schedule and on budget STKI IT Knowledge Integrators Company Confidential Page 40
  • 41. STKI.INFO 41 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI IT Knowledge Integrators Company Confidential Page 41
  • 42. STKI.INFO 42 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 2001: A group of software engineers (in a mountain retreat) proposed the Agile manifesto. STKI IT Knowledge Integrators Company Confidential Page 42
  • 43. STKI.INFO 43 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 2001: A group of software engineers (in a mountain retreat) proposed the Agile manifesto.  Our highest priority is to satisfy the customer through early and continuous delivery of valuable software (continuous delivery of value)  Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage.  Deliver working software frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale.  Businesspeople and developers must work together daily throughout the project.  Build projects around motivated individuals. Give them the environment and support they need and trust them to get the job done.  The most efficient and effective method of conveying information to and within a development team is face-to-face conversation. Cont. 2 : Evolution of Modern Software “Discovery & Delivery” STKI IT Knowledge Integrators Company Confidential Page 43
  • 44. STKI.INFO 44 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph  Working software is the primary measure of progress.  Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely.  Continuous attention to technical excellence and good design enhances agility.  Simplicity the art of maximizing the amount of work not done.  The best architectures, requirements, and designs emerge from self-organizing teams.  At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly. Cont: Manifesto for Agile Software Development Cont. 3 : Evolution of Modern Software “Discovery & Delivery” STKI IT Knowledge Integrators Company Confidential Page 44
  • 45. STKI.INFO 45 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 2002-2019: Agile in name only Faking Digital You aren't Agile or Digital because of what you call yourself. You are Agile or Digital because of what you do. STKI IT Knowledge Integrators Company Confidential Page 45
  • 46. STKI.INFO 46 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 2002-2019: partial agile (agile in name only) & faking digital  Discovery and Delivery are completely separate functions  Business leaders didn’t give up ownership of “discovery” they kept their original ideas  Most “delivery” teams weren’t good at estimating unpredictable work (time or budget)  Biweekly sprints killed any chance of finding a continuously sustainable pace or innovation ideas  Continued operating on an annual budgeting cycle, making flexibility nearly impossible.  Teams measured by features they delivered, not whether anyone used it or if it created any value  Very few projects were successful and used by clients for over 5 years (Chaos Report)  Faking Digital is the practice of implementing technologies for operational & financial effectiveness and adding new “front-end” applications without changing the business itself. Cont. 4 : Evolution of Modern Software “Discovery & Delivery” STKI IT Knowledge Integrators Company Confidential Page 46
  • 47. STKI.INFO 47 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph • The digital age began 75 years ago, (invention of the transistor) • Digital calculators & watches introduced 50 years ago • Internet is more than 50 years old • First browser created 30 years ago • IBM PC was introduced 40 years ago. • Apple is 45 years old • STKI is 30 years old • Google is 25 years old • iPhone is 15 years old NOW is the time to move beyond the digital transformation buzzword Disruptions at the start of a New Industrial Revolution Era demand a different game plan than simple transformations of the current business model. Digital is an “old mantra” STKI IT Knowledge Integrators Company Confidential Page 47
  • 48. STKI.INFO 48 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Let’s not confuse Faking Digital with Digital Disruption Faking Digital is the practice of implementing technologies for operational & financial effectiveness and adding new “front-end” applications without changing the business itself. Corporate immune system working at full speed. DIGITAL DISRUPTION is the Xtreme Adaptation of the organization’s business model by changing the DNA-culture of both the enterprise & industry digital disruption Faking Digital STKI IT Knowledge Integrators Company Confidential Page 48
  • 49. STKI.INFO 49 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph The Standish Group published a study called the “Chaos Report,” which cited that nearly 84 percent of projects will either fail or go over budget. . STKI IT Knowledge Integrators Company Confidential Page 49
  • 50. STKI.INFO 50 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph The Chaos Report also said that “most features are rarely or never used.” During this era, it's not just that we were not building software predictably; we were not even building the right things. STKI IT Knowledge Integrators Company Confidential Page 50
  • 51. STKI.INFO 51 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 2020: Lessons from the pandemic era and startup knowledge spillover Implementing the “real” thing -”lean and agile development”- STKI IT Knowledge Integrators Company Confidential Page 51
  • 52. STKI.INFO 52 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph It is time to press ahead with Digital Disruption, learning from and applying the techniques from Start-ups, transitioning into a “software company” Start-ups are all about Xtreme adaptation based on PRODUCTS and EMPOWERED TEAMS change change change large established business make millions of excuses and obstacles for not adapting STKI IT Knowledge Integrators Company Confidential Page 52
  • 53. STKI.INFO 53 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph During the covid-19 era most projects were led by junior managers, moved fast, didn’t wait for meetings, business & IT merged and gave impressive results Merging DISCOVERY and DELIVERY into ONE team PROJECTS moved toward PRODUCTS (IT moved from enabler of the business to being the business itself) : • Collective-business wisdom of the zoom IT crowd-cloud • Business knowledge of most front-line team members • Comfortable offering non-standard processes and solutions for business outcomes • Challenged assumptions giving honest and constructive feedback 2020 - : Lessons from the pandemic era Cont. 4 : Evolution of Modern Software “Discovery & Delivery” STKI IT Knowledge Integrators Company Confidential Page 53
  • 54. STKI.INFO 54 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph  Questioning how discovery (what to build) decisions were made  Pushing discovery decisions from business to product managers and the whole product team.  Rather than just validating ideas, teams are co-creating with customers (from the beginning)  Combining the team’s knowledge of what’s technically possible with the customer’s knowledge of their own needs, pain points, and desires to build better products.  Teams are adapting to changes in the market, in customer needs, and in technology, in real time.  Adding Lean Practices to Agile Principles  Include Value Stream Management  Optimize the whole process. Without having a view of the whole process/system, we won’t know what to optimize.  add activities, processes, and automation that validate that the software meets the customer’s needs. Cont. 5 : Evolution of Modern Software “Discovery & Delivery” 2020 - : Lessons from startup knowledge spillover (LEAN + AGILE) STKI IT Knowledge Integrators Company Confidential Page 54
  • 55. STKI.INFO 55 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph The whole PRODUCT team contributes to Continuous “Discovery & Delivery” Continuous Discovery Continuous Delivery Product life cycle Design Thinking The whole team is involved in customer interviews, mapping the customer journey, ideating on solutions, discussing delivery options, developing the code, supporting the product and responsible for outcomes not a one-time activity, it is never done, it must evolve build, rebuild, ship & support STKI IT Knowledge Integrators Company Confidential Page 55
  • 56. STKI.INFO 56 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Software products today “SHOULD” be conceived, designed, built, and delivered by a cross-functional team that is part of the value stream Team’s actors STKI IT Knowledge Integrators Company Confidential Page 56
  • 57. STKI.INFO 57 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Software products today “SHOULD” be conceived, designed, built, and delivered by a cross-functional team that is part of the value stream Team’s actors STKI IT Knowledge Integrators Company Confidential Page 57
  • 58. STKI.INFO 58 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Software products today “SHOULD” be conceived, designed, built, and delivered by a cross-functional team that is part of the value stream STKI IT Knowledge Integrators Company Confidential Page 58
  • 59. STKI.INFO 59 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Recently, STKI analysts received many questions from teams chasing frameworks, tools or methodologies, dreaming that each new innovation will suddenly magically, effortlessly unlock the door for the move from project to product based STKI IT Knowledge Integrators Company Confidential Page 59
  • 60. STKI.INFO 60 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph  OUTCOME ORIENTED mindset (outcomes rather than features / outputs)  CUSTOMER-CENTRIC mindset places the customer at the center & that the purpose of every business is to create and serve a customer.  COLLABORATIVE mindset requires cross-functional nature of product work and rejects the siloed model  VISUAL mindset stepping beyond spoken and written language and into the power of spatial thinkers by drawing, externalizing thinking mapping knowledge.  EXPERIMENTAL mindset encourages scientific-thinking by identifying assumptions and gathering evidence.  EVOLVE FROM A PROJECT MINDSET TO A CONTINUOUS MINDSET infuse discovery continuously throughout your delivery. Product Team success not just tactics or tools but the need to change the mindset. STKI IT Knowledge Integrators Company Confidential Page 60
  • 61. STKI.INFO 61 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph PROJECT PRODUCT FUNDING Annual Continuous with frequent checkpoints for funding and resources changes TIMELINE Formal start and end dates Continuous, ongoing, no firm end dates but when not needed it is retired TEAMS Matrix orchestration across departments and technical domains (silos) Multidisciplinary, breaking functional & specialization silos, most of the team is full time METRICS On-time and on-budget (sometimes also business outcomes) Business centric metrics (customer satisfaction, profit, market share, etc) STKI IT Knowledge Integrators Company Confidential Page 61
  • 62. STKI.INFO 62 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph FEATURE based on-prem “application” PROJECT development cost OUTCOME based PRODUCT development cost yearly “USAGE PLUS SUBSCRIPTION” variable cost (SaaS consumption model) yearly usage variable expenses cost on-prem cloud PROJECT PRODUCT STKI IT Knowledge Integrators Company Confidential Page 62
  • 63. STKI.INFO 63 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Three different types of Product Teams STKI IT Knowledge Integrators Company Confidential Page 63
  • 64. STKI.INFO 64 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Platform Teams provide common services to be implemented once but used in many places, help in managing complexity by encapsulating particularly difficult or specialized areas of the product. Pini Cohen Experience Teams responsible for how the product is experienced (getting a solution for the problem) by users in the form of apps, UIs, solutions, or journeys. Galit Fein Data Product Teams Focus on the process of collecting, organizing, storing, and sharing data within an organization, they use that data to build a feature for an experience team or build a whole data product. (types: output data as a service, data-enhanced products, and data as insights) Einat Shimoni STKI IT Knowledge Integrators Company Confidential Page 64
  • 65. STKI.INFO 65 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph The goals of EXPERIENCE AND DATA TEAMS are to solve problems for users and customers, The goals of a PLATFORM TEAM is to enable the experience and data teams to better solve problems TEAM OBJECTIVES not the only work that a product team is responsible for, also “keep‐the‐lights‐on” We do need to keep an eye on this ongoing work because, if it spikes, the team won't be able to make much progress on their team objectives. STKI IT Knowledge Integrators Company Confidential Page 65
  • 66. STKI.INFO 66 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI.INFO 66 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI IT Knowledge Integrators Company Confidential Page 66
  • 67. STKI.INFO 67 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI.INFO 67 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI IT Knowledge Integrators Company Confidential Page 67
  • 68. STKI.INFO 68 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI IT Knowledge Integrators Company Confidential Page 68
  • 69. STKI.INFO 69 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Beware of “Group-Think” STKI IT Knowledge Integrators Company Confidential Page 69
  • 70. STKI.INFO 70 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Outcomes vs Outputs (features) Lessons from Top Tech Companies an OUTCOME is a CHANGE in human behavior** that DRIVES business results. ** “human behavior” can apply to users’ behavior, customers’ behavior, or staff and employee behavior STKI IT Knowledge Integrators Company Confidential Page 70
  • 71. STKI.INFO 71 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph • In the old days setting project goals wasn’t that hard. • If you’re making cars, you’re done when they roll off the assembly line. • But when making software products, done is less obvious. • When is Microsoft word done? When is google done? • Software systems are never done. We just decide to stop working on them, or make an endless list of features and ask our teams to work on that list—forever? • The problem is that features can be finished and delivered and “work perfectly” but still deliver NO VALUE how many of these buttons do you use in real life? Our world is full of “features” that work as specified and yet deliver no value. STKI IT Knowledge Integrators Company Confidential Page 71
  • 72. STKI.INFO 72 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph  Starting with outcomes, rather than outputs, is what lays the foundation for product success.  By shifting focus to the impact on both customers and business results (outcomes) the team is clearly communicating the value it will create.  When the businesspeople leave it up to the team to explore the best outputs that might drive the outcome, they are giving the team the latitude they need to create value for the customer. from an output (features) mindset to an outcome (business) mindset STKI IT Knowledge Integrators Company Confidential Page 72
  • 73. STKI.INFO 73 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Don’t mix Assumptions with Knowledge MVP is just a buzzword that means “experiment” in order to turn assumptions into knowledge. run experiments what are the customer behaviors that drive business results? STKI IT Knowledge Integrators Company Confidential Page 73
  • 74. STKI.INFO 74 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Outcomes (human behaviors that drive business results) is what happens when you deliver the right features. You could manage a team by telling them what to make: that’s called managing outputs. It’s a problem because features don’t always deliver value. You could manage a team by asking them to target some high-level business result That’s called managing impact. It’s a problem because it’s not specific enough. What you want is to manage with outcomes: ask teams ”what is the customer behavior change that we are looking for?” That allows them to find the right solution STKI IT Knowledge Integrators Company Confidential Page 74
  • 75. STKI.INFO 75 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI.INFO 75 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Product Manager combines (numerous inputs) into a coherent Product Roadmap outcome based roadmap STKI IT Knowledge Integrators Company Confidential Page 75
  • 76. STKI.INFO 76 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Products and Technologies Division Disruption & Transformation Road Map STKI IT Knowledge Integrators Company Confidential Page 76
  • 77. STKI.INFO 77 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Products and Technologies Division Disruption & Transformation Road Map (where are you? STKI IT Knowledge Integrators Company Confidential Page 77
  • 78. STKI.INFO 78 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Traditional IT with steroids The Digital Disruption & Transformation Road Map STKI IT Knowledge Integrators Company Confidential Page 78
  • 79. STKI.INFO 79 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 1. Traditional IT with steroids • Moving from “data processing” to “information technology” • You’re finally budgeting and prioritizing “technical debt” payment • You’re trying to upgrade technology to the latest platforms (from older (on-prem to SaaS applications) including cloud, AI, etc. • Business (CEO, CFO) don’t see ROI in upgrades (misunderstanding of technical debt) • Enterprise applications are not connected • Infrastructure department is over-staffed (too many technologies) • No Industrial Engineering group to optimize processes • You’re not really “transforming the enterprise.” • You’re “digitalizing” some operations. And seeing benefits. • You have some fake digital products, customer relations, or operations. The Digital Disruption & Transformation Road Map (2) STKI IT Knowledge Integrators Company Confidential Page 79
  • 80. STKI.INFO 80 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph STKI IT Knowledge Integrators Company Confidential Page 80
  • 81. STKI.INFO 81 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph This is the cost of having to work on: • Outdated infrastructure (software/ hardware) • Outdated software (several versions behind latest vendor version or old onprem versions) • ERP and/or CRM • Core systems based on outdated technologies (not in itself broken systems) but are critical to day-to-day operations • Outdated data management tools (ETL, DW, BI) • Upgrading and automating old processes and killing non-necessary ones • Inability to integrate applications or processes (in-house or partners) • Missing documentation • Un-commented configuration • Un-documented code changes Traditional IT with steroids: Finally paying our “technical debt”????? The Digital Disruption & Transformation Road Map (3) STKI IT Knowledge Integrators Company Confidential Page 81
  • 82. STKI.INFO 82 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph This is the cost of having to work on: • Outdated infrastructure (software/ hardware) • Outdated software (several versions behind latest vendor version or old onprem versions) • ERP and/or CRM • Core systems based on outdated technologies (not in itself broken systems) but are critical to day-to-day operations • Outdated data management tools (ETL, DW, BI) • Upgrading and automating old processes and killing non-necessary ones • Inability to integrate applications or processes (in-house or partners) • Missing documentation • Un-commented configuration • Un-documented code changes Traditional IT with steroids: Finally paying our “technical debt”????? The Digital Disruption & Transformation Road Map (3) STKI IT Knowledge Integrators Company Confidential Page 82
  • 83. STKI.INFO 83 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph The Digital Disruption & Transformation Road Map (4) SILOED IT STKI IT Knowledge Integrators Company Confidential Page 83
  • 84. STKI.INFO 84 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 2. SILOED IT • Bureaucracy, old processes, technical debt hinder automation, transformation and disruption at scale • Parts of the organization are experimenting with transformational business models and products • Experimenting with data products • Moving to best-of-breed enterprise applications • There is no enterprise-wide product strategy to completely transform your business model itself. • Very strong Disruption DNA firewall The Digital Disruption & Transformation Road Map (5) STKI IT Knowledge Integrators Company Confidential Page 84
  • 85. STKI.INFO 85 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Upon returning, had to declare to customs the items he was bringing back from the moon: mainly rock and dust samples. Aldrin was reimbursed exactly $ 10 for “travel expenses. Luckily, he was not responsible for paying for actual transportation from Earth to the moon—or even to Cape Kennedy, Florida, where Apollo 11 launched, as he had a government planes for that. OLD PROCESSES NEVER DIE: Bureaucracy, old processes for NASA astronaut Buzz Aldrin when he came back from the moon The Digital Disruption & Transformation Road Map (6) STKI IT Knowledge Integrators Company Confidential Page 85
  • 86. STKI.INFO 86 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph IT Dilemma: managing the middle way The Digital Disruption & Transformation Road Map (7) STKI IT Knowledge Integrators Company Confidential Page 86
  • 87. STKI.INFO 87 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 3. IT Dilemma: managing the middle way • Your enterprise has a mix of old and new digital business models, processes, and products. • Implementing • self-service data services • Data Science projects • API gateways and management tools • All new applications are following a corporate-wide strategy. • Disruption DNA firewall still exists • Management is not convinced of the need of disruptive applications (Parmenides Fallacy) The Digital Disruption & Transformation Road Map (8) STKI IT Knowledge Integrators Company Confidential Page 87
  • 88. STKI.INFO 88 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph The Digital Disruption & Transformation Road Map (9) (especially xxxtech startups) STKI IT Knowledge Integrators Company Confidential Page 88
  • 89. STKI.INFO 89 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Enlightened IT The Digital Disruption & Transformation Road Map (10) STKI IT Knowledge Integrators Company Confidential Page 89
  • 90. STKI.INFO 90 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 4. Enlightened IT • You’re delivering industry-leading customer results, innovative digital products, and best-in-class operational efficiency. • Implementing enterprise-wide data & digital literacy programs • Hippo vs data • Implementing open industry standards • You’re not winning always • You’re digitally optimized for the moment. • Re-organizing the business-technology relationship by building “PRODUCT TEAMS” and the new “Products and Technologies Division” ‫וטכנולוגיות‬ ‫מוצרים‬ ‫חטיבת‬ The Digital Disruption & Transformation Road Map (11) STKI IT Knowledge Integrators Company Confidential Page 90
  • 91. STKI.INFO 91 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph The Digital Disruption & Transformation Road Map (12) Hippo Dominated Vs Data Obsessed data literacy programs STKI IT Knowledge Integrators Company Confidential Page 91
  • 92. STKI.INFO 92 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Products and Technologies Division ‫וטכנולוגיות‬ ‫מוצרים‬ ‫חטיבת‬ The Digital Disruption & Transformation Road Map (13) STKI IT Knowledge Integrators Company Confidential Page 92
  • 93. STKI.INFO 93 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph 5. Products and Technologies Division ‫וטכנולוגיות‬ ‫מוצרים‬ ‫חטיבת‬ • Experience, Data and Platform teams deliver business impacts • Value as the main outcome with an enterprise-wide product strategy • Transformation is fully synchronized & disruption is in the DNA • The organization has transformed into a software company • The organization is: • Data-driven • Cloud first development • SaaS Enterprise Solutions • Simplifies business processes using intelligent automation • Provides personalized concierge value as-a-service • Experiments with Blockchain and Augmented Reality • Orchestrates ecosystems in order to build B2B and B2C super apps • All this powered by the Products and Technologies Division The Digital Disruption & Transformation Road Map (14) STKI IT Knowledge Integrators Company Confidential Page 93
  • 94. STKI.INFO 94 Copyright@STKI_2022 Do not remove source or attribution from any slide, graph or portion of graph Any questions STKI IT Knowledge Integrators Company Confidential Page 94