Innovation: The Invisible Gorilla We at Dell Services are so focused our budgets, our processes, cutting costs and achieving synergies in our current business that we are only giving lip service to the future. We are not being rewarded by the street for our synergy promises. We are being called to task for our lack of innovation. The 800 lb gorilla in the room that we are all ignoring because we are focused elsewhere in Innovation (or more precisely the lack thereof). What now?
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Innovation: The Invisible Gorilla by Jim Stikeleather at NASA CIO Conference 2010
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Innovation:The Invisible Gorilla
We at Dell Services are so focused our budgets, our processes, cutting costs and achieving synergies in our current business that we are only giving lip service to the future. We are not being rewarded by the street for our synergy promises. We are being called to task for our lack of innovation. The 800 lb gorilla in the room that we are all ignoring because we are focused elsewhere in Innovation (or more precisely the lack thereof). What now?
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The Invisible Gorilla
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Innovation can be defined as a marked departure from traditional principles, processes, and practices or a departure from customary forms that significantly alters functionality. It can be thought of jumping from one S curve to another.
What is Innovation?
“Though the outcomes of successful innovations appear random, the processes that result in their success often are not.”- Clayton Christensen (2003)
• Myth 1: Innovation is all about emerging technologies and creating new products
– Reality 1: Innovation is also about new services and new ways of doing business
• Myth 2: Successful innovations require large scale revolution (disruption)
– Reality 2: The most successful innovations are often the simplest
• Myth 3: You have to be creative (egotistical) to be innovative
– Reality 3: While creative thinking can help, innovation is a systematic discipline.
• Myth 4: Innovation is expensive
– Reality 4: While emerging tech and drug research are expensive most innovations require the modest disciplined investment of time and brain power.
• Myth 5: Innovation is a “nice to have”
– Reality 5: Innovation is your only defense against commoditization and terminal decline
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Te
ch
no
log
yP
rod
uc
t a
nd
Se
rvic
e
New
Near to Existing
New
Business Model and Process
Near to Existing
IncrementalSustaining
BreakthroughOr
Radical Sustaining
GameChanger
(DISRUPTIVE)
technology innovation
process innovation
Types of Innovationbusiness model innovation
product & service innovation
BreakthroughOr
Radical Sustaining
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Process Maps
IDEATION
INTERNAL RESOURCES
IDEATION
EXTERNAL RESOURCES
DRAFT NEW PRODUCTCONCEPTS
NARROW CONCEPTSUNDER
CONSIDERATIONOUTLINE FEATURES/
BENEFITS
EXPOSE TOTARGET
CUSTOMERS(QUALITATIVE)
KILL
CONTINUE
REFINE
ESTABLISHSUCCESSCRITERIA
KILL
TEST MARKET(NEW PRODUCT
INCUBATOR)
EXECUTIVEMANAGEMENT
REVIEW(Investment Committee)
POST TEST MARKETEVALUATION
DESIGN, DEVELOP & PILOT(Project Launched)
FORMTEAM
DEFINE THEPROBLEM/
OPPORTUNITY
EXPOSE TO TARGETCUSTOMERS FOR
VOLUME ASSESSMENT(QUANTITATIVE)
TEST MARKETING PREPARATION
HIGH LEVELREQUIRE-
MENTS
DEVELOP BUS CASE/OBTAINAPPROVAL TO
PROCEED(Mgt Review)
KILL
CONTINUE
REFINE
FINAL ROLLOUT
PLAN
FINAL TIMELINE
WARGAMES
EXECUTIVEGROUPREVIEW
TRAINING
KILL
ROLL-OUT
EVALUATIONAND
MEASUREMENT
PLAN DEVELOPMENT
AND INITIAL TIME LINE
(Proj Request/Sizing)
TURN OVERTO PRODUCTMANAGEMENT
How far back depends on feedback received
May require refinement of business case and financials
Some, or all of these stages may not apply to smaller efforts, or those with low execution risk/low capital investment For large projects, or those requiring post-pilot review and approval, these stages will apply (e.g. Investment Committee level projects).
Project Release Management Flow Begins (see next page)
Project Lifecycle
Project Lifecycle
START
Start Project
End Project
This
Or this
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Innovation in the Context of Information Technology Today
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Industry Focused
Software Services
Cutting Edge
Utility Services
Legacy(Proprietary)
Why does IT need to innovate?
• Advancements in technology are enabling the move from proprietary to a utility based (on-demand, scalable, metered, natural billing unit, no up front costs, cost effective, energy efficient) model.
• This is facilitating information consumers to change the way they buy and use information technology – asset light with the “browser” becoming the window to inter and intra enterprise computing.
• While IT demand will continue to grow, spend on proprietary IT environments may shrink as enterprise capable pay per use services replace capital investments.
A fundamental shift is happening in the delivery and consumption of information technology which will transform IT over the next 10-15 years.
Utility Computing –technology specific manifestation of “Hollywood” business model.
• Hollywood model drivers (see above)• Ubiquitous IT (Carr)• GRSC complexity• “Red Queen” – accelerating rate of
tech and business change (flexibility / adaptability)
• Reduced IT ROI potential
• Virtualization• Cloud technologies• Fabric embedded Digital Rights
Management• Web 2/3; SOA AppDev tools (PaaS)• BPO 2.0 (Aberdeen) • Unified Communications
(HW/SW/Comm)
What is really driving the change?
PeopleCloud
ProcessCloud
InformationCloud
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Economic JustificationTHE DRIVERS DESCRIPTION
The MacroEconomic View
• IT low ROI - Paul Strassmann• As IT [ activity ] becomes ubiquitous it has no strategic value – Nicholas Carr• Creative Destruction - Joseph A. Schumpeter• Utility Computing - John McCarthy• Componentization - Herbert A. Simon• Red Queen Hypothesis - Leigh M. Van Valen (Co-evolution, Game Theory) William Barnett
Micro Economic Business Value
• Economies of scale. (volume)• Pay per use. (utility)• Speed to market. (componentization)• Focus on core. (outsourcing)• Greener (efficient supply and demand)• Meeting increasing regulatory requirements in all industries
The Innovation Paradox
• Survival today requires ‘coherence, coordination and stability’ [order]. - Survival tomorrow requires the replacement of these virtues [disorder]. - Salaman & Storey (The Open University)
• Innovation => Commodity - Christensen
The Ascent of Business Architecture and Process
• Recent OMG study on benefits achieved by BA and BPR projects:‒ Increase agility, efficiency, effectiveness – 85%‒ Improved IT requirements – 62%‒ Streamline inter-business unit processes – 82%‒ Align terminology / semantics – 42%‒ Streamline external relationships – 29%
Regulation and Compliance
• Increasing regulation of more industries across the globe• Varying regulation of industries across the globe• Merging of IT standards and business regulations (ISO; NIST; electronic reporting, etc.)
Internal IT Failure Business wants:• A place to experiment• Fast integration• Looser IT restrictions• Responsiveness
IT wants:• Plenty of notice• Predictability• Stability• Justification
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Infrastructure“IaaS”
Applications“SaaS”
Platform“PaaS”
• Building blocks for deploying and managing public or private clouds
• Application development and test platforms leveraged to develop and deploy applications over the internet
• Software application (i.e. CRM, HRM, Email)• Deployed in a hosted environment• Subscription based (vs. legacy license-based)
XaaS
What Is The Cloud
• On-demand self-service
• Broad network access
• Resource pooling
– Location independence
• Rapid elasticity
• Measured service
Cloud computing enables dynamic provisioning of computing resources over the internet. The market/business drivers are its utility based (on-demand, scalable up and down, metered, natural billing unit, no up front costs, cost effective, energy efficient) model.
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Trajectory of Computing Utility Models
2000 2005 2010 2015? 2020?
Physical AppHosting
OS VirtualMachines (IaaS)
Softwareas a Service
Platform as a Service(Application Hosting)
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HistoricalCurrent Stage
End State
• Basic Kernal
• VM Abstraction layer
• On Demand Functions
• App Store for System Capability IaaS
Evolution of the “Systems/Operations” Market
Automated generation of highly customized environments to specific niche customers
Policy based workload management (where, when, how much) and “rights to access and use” management.
Point of Presence
Device Linked to
Cloud
ServerFocused
Independent Standalone
Software Environments
• Android• iPhone• Chrome• Linux• Windows ?
• VMware• Joyent• Xen• Appliances
• Windows• Oracle• Eclipse
Salesforce, Google, Amazon,
AIM, VIS, etc
HyperVisor
Independent Operating System
Add on development/ deployment
environments
Open Source Applications
PaaS
Policy Management
andImplementation
ITSM / ITILModels
• Puppet Labs• AppDynamics/
AppFirst• Conformity• RiverMuse
• BMC• Service Now• CA
Needed: Version & Release Control; “Certification”; License Monitor; Pedigree; “Hash coding”; Catalog; user control, SLAs, self-service, billing, provisioning, security , “dev to production” – “Single Pane of Glass”
A virtual datacenter
per user per
application per user
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HistoricalCurrent Stage
End State
Application Components as a Service
Applications Components
Evolution of the “Applications Delivery” Market
Automated generation of highly customized applications to specific niche customers
Integration & Adaptive
PaaS
ProprietaryPaaS
IntegratedDevelopmentEnvironments
• BPEL/BPMN• WSCI/
WS-CAF
• Azure• Force• Morph
• Eclipse• Visual
Studio Mix of ISV like SaaS (SFdC),
SaaS start ups and ISV driven SaaS and PaaS
appliances
ASP
ISV
Open Source Applications
SaaS
MetaModels
FrameworkModels
• MDE• MDA• DSL
• Web 2.0• Vmforce• YUI
Carr-like Hyperscale IaaS Utilities with Andersen-like long tail component suppliers
An established company which, in an age demanding innovation, is not able to innovate, is doomed to decline and extinction.
--Peter Drucker
“I did not fail; I just found 10,000 ways that did not work.”Thomas Edison – American inventor
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An Innovation Approach:
Envision an end state and work backwards
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How IT will evolve
Real TimeInfrastructure
IntelligentCapacity
OptimizeSeparate Consolidate Contain
Data CenterAutomation
Server Consolidation
Test and Development
Computing Clouds
Leading Edge Today
Abstraction
Virtual Infrastructure
ManagementMonitoringCompliance
Orchestration(internal)Choreography(external)
Self-Service
On-DemandScalability
Policy-BasedWorkloads
Federation
Abstraction
Virtual Infrastructure
ManagementMonitoringCompliance
Orchestration(internal)
Self-Service
Abstraction
Virtual Infrastructure
ManagementMonitoringCompliance
Abstraction
Virtual Infrastructure
Abstraction
Private Cloud Model
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A Few Hyperscale CloudsCarr “Big Switch” Theory
Many Smaller Clouds“ SaaS Builders” & Corporate CloudsWhite Labels on Hyperscale Clouds
Anderson “Long Tail” Theory
Clo
ud
Siz
e
How the Vendor’s Will Evolve
Number of Clouds Servicing Demand10’s 1000’s
S
L
Platform as a Service
Application Components as a Service
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What Technologies and Practices?
• Virtualization
– Allowing one physical device appear and behave like many devices.
• Cloud
– Allowing multiple virtual devices to appear and behave like one very large device (World Wide Computer).
• Web 2.0
– Combining multiple applications so they appear and behave like one application.
• ISO27000 / DRM
– best practices on information security management for the preservation of confidentiality, integrity and availabilityof information assets.
• ISO 20000
– an integrated process approach andbest practices for service management services to customer requirements.
• BPO 2.0
– Piecemeal outsourcing evolving to integrated services along value chains with increased domain expertise.
• Unified Communications
– Integrating real-time communication like instant messaging, presence information, IP telephony, video conferencing, call control and speech control with non real-time communication services messaging like voicemail, e-mail, SMS and fax.
A broad selection of technologies and practices are called into play in developing Next Generation Computing environments among which are: