Why Will Digital Be Different?
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1 Why Will Digital Be Different? And how to make it so Dave West Scrum Day Europe 2018 July 5 th
2 Improving the Profession of Software 2
3 Scrum.org: The Home of Scrum 90% Agile Teams Use Scrum 2,800,000+ Assessments Taken 219 Professional Scrum Trainers (PSTs) 182,000+ Level I Professional Scrum Credential Holders Over 107,000 Taught 3,100+ Level II Professional Scrum Credential Holders Americas, Europe, Africa, Oceania & Asia 500+ Level III Professional Scrum Credential Holders 3
4 Each time you toss out a singing greeting card, you are disposing of more computing power than existed in the entire world before Paul Saffo First, Let s Set Some 4
5 The Agile of Accelerations The Market Digital Globalization Mother Nature Climate change, population growth Technology (Moores Law) Exponential increase in computing power 5
6 Entering the Age of Software Source: Perez 6
7 What Does the Age of Software Mean? AGE OF OIL & MASS PRODUCTION Movement of capital and control Efficiency Specialism of labor Skills built into the tools Management and control Rise of the middle class AGE OF SOFTWARE & DIGITAL Movement of capital and control Innovation and opportunity Cross-functional teams Self-organization and decentralization Rise of the creator 7
8 Success today requires the agility and drive to constantly rethink, reinvigorate, react and reinvent. - Bill Gates The Move to 8
9 Consider This Pen 9
10 Traditional Digital Transformation Has Focused on Digital as a technology upgrade (internal focus) Digital as new channels to market (external focus) 10
11 But Now Digital Is Changing EVERYTHING Digital as a technology upgrade (internal focus) Digital as new channels to market (external focus) Digital as new business model opportunities (business model innovation) Digital as an enabler for social transformation (power redistribution) 11
12 Opportunity Is EVERYWHERE Climate Change Business Models Channels Automation New Materials 5G++ 3D Printing Nano Tech Gene Tech Block Chain IFRD Open Source Digital Native Robots Globalization Generation n Globalization Cloud Big Data AI Internet 12
13 But Everything Is NOT an Opportunity Magic Product Box D What is desirable to users? Business Model Channel Architecture What is feasible with technology F What is viable in the marketplace V User Experience Customer Features What is the cultural change necessary? C Source : Dr. Alan Brown CoDE 13
14 Which Leads to Complexity and Chaos The Cynefin framework 14
15 Probe, Sense, and Respond (Inspect & Adapt) Deploy and Measure 5 1 Identify an Opportunity Customers / Users Stakeholders Build at Least Part Of It 4 Team 2 Understand Desired Outcomes 3 Evaluate Possible Solutions 15
16 The Scrum Framework 16
17 Change is hard at first, messy in the middle and gorgeous at the end. - Robin Sharma The Big Three for 17
18 The Gartner Model 18
19 Design Thinking 19
20 Lean Startup 20
21 Agile Development 21
22 Another Way of Thinking About It Customer Discovery Customer Validation Customer Creation Customer Building Plan Sense Respond Plan Sense Respond Plan Sense Respond Plan Sense Respond Design Thinking Lean Startup / Business Model Canvas Agile Delivery 22
23 The Backlog: A Map to Delivering Understanding Discovery Priority of backlog items discovering the problem, understanding the customer pains, and the product concept. Test ideas until validated. Validation It is feasible, understand change, understand the economics. Test ideas until validated. Creation Obtain early adopters, data of usage, understand rollout model Building Incrementally build out new features 23
24 Organizational Models 24
25 Organizational Models Need to Change HIERARCHICAL & MECHANISTIC ORGANIC & TEAM-CENTRIC 25
26 The First Step to Change ALIGNMENT TO PRODUCTS Teams and teams of teams aligned to deliver customer value Measurement based on outcomes, not work Organization built to serve these customer-centric groups WORK & TALENT MGT. SEPARATED Management of work defined by teams in pursuit of goals Talent management driven by master, journey-person, and apprentice model Management concentrates on building and maintaining an environment for agility to thrive 26
27 What Shape Are Your Team Member s Skills? Enterprise agility is more of a skills problem than a process one. 27
28 Communities Develop Talent (Mastery) Developer Community Team 1 Team 1 Team 2 Team 1 Team 2 Team 3 Share experiences and grow skills through immersion & pairing Use peer coaching to share knowledge and increase professionalism, consistency Remove common impediments Team 4 28
29 Digital Delivery Requires THE FUNDAMENTALS Empirical process focused on customer outcomes Team-based self-organization with a focus on learning Continuous change / improvement AND TO DO IT AT SCALE Thinking about a broader value stream Engaging constraints Managing the reality of skills Compromise is necessary but not mandatory 29
30 Don t be trapped by dogma which is living with the results of other people s thinking. - Steve Jobs Measurement Drives 30
31 Measurement Needs to Change as Well Measurement focused on the motion 31
32 It All Starts with Value Opportunity That Exists Realized Value 32
33 What Is Value? a)a unicorn b)a Rolex watch c) Getting home from work before 6:00 PM d)discounts at the comic shop e)a Tesla Model X car 33
34 Value means different things to different people. Their goals and desired outcomes vary. 34
35 Our Capability Is Important Our Ability to Innovate Time to Market 35
36 EBM Framework Market Value Organizational Capability 36
37 What Does It All 37
38 Summary We are in the middle of a change of age From Mass Production to Digital/Software Digital is so much more than technology and channel Tech upgrade, channels, new business models, social transformation Opportunity is everywhere, but not everything is an opportunity Which leads to complexity and chaos New thinking is driving change Design Thinking, Lean Startup, and Scrum But it s hard to change even with new ideas Linear use of models and ideas Organizations need to change Product orientation and decoupling of management is a good place to begin Measurement drives behavior Value and capability 38
39 It Really Is VERY Simple Values Learning Empiricism Empowered Teams Improvement Customer Discipline 39
40 With Measurement 40 40
41 Thank 41
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