Rick Dove Interim Executive, Change Management Paradigm Shift International [email protected] On-Demand Application Integration for Agile Business Strategy.

Rick Dove

Interim Executive, Change Management

Paradigm Shift International

[email protected]

On-DemandApplication Integration for Agile Business Strategy

Rick Dove• Interim Exec/Change Mgmnt:

- CIO at Silterra, 1999-2002- President at ProMetal, 2002-2003

• Carnegie Mellon: BSEE, UC Berkeley: unfinished PhD in Computer Science

• 30+ years of start-ups and turnarounds

• Co-founder of Agile Enterprise concept in '91 at Lehigh Univ.

• Author: "Response Ability: the Language, Structure, and Culture of Agile Enterprise", Wiley, 2001.

• Book WIP: "Value Propositioning: Talent of Champions"

• Lives on Lama Mountain, Taos, New Mexico, at 8200 feet ......Land of Enchantment.

• www.parshift.comPhoto: Brian Zick

Note• I'll just skim thru some slides in your proceedings.

They are there for the record, and would take too long in detail,but they set the stage.

• I'll focus on a few, to clarify issues of On Demand learned at Silterra,adding a few that speak to higher level purpose, results, and lessons learned.

• I'll be here the entire conferenceif you want to discuss what I don't cover now.

Background

• October 1999 (dot.com bubbling, semi-slump ending)

• Silterra is a start-up semiconductor foundry in Malaysia, with interim USA top management and ex-pat process experts

• Funded mainly by government designated sources

• Mixed Cultures: 60% Malay, 30% Chinese, 10% Indian

• CEO has a vision for a preemptive modern-day competitor...Goal: Build a uniquely superior foundry businessStrat: Best practices + Agile IT infrastructure under logistics

• CIO (interim exec) is writing book on systems agility... Goal: Meet CEO's goals with Agile Systems design principlesStrat: Design differentiation strategy and apply principles

OpportunityNew company:

No operating culture, performance metrics, or infrastructure legacy.

+

New technology:

Internet. Broadband. PDAs. XML. Enterprise IT. eBusiness.

+

New environment:

More uncertain, connected, knowledgeable. Faster. Always changing.

+

New customer expectations:

Personal attention. Immediate response. Self service. Lots of information.

= New Opportunity

to design a company

fit to the new environment,

and focused on new values

Guiding Concepts

InfoTech must not dictate or limit corporate capability• Remove the ERP/Technology lock-in• Provide freedom to use best tools• Enable fast insert of new technology in support of strategy

InfoTech must exploit new electronic connectivity opportunity• Real-time visibility of all enterprise activity and information• Everyone wired for immediate self-service• Dashboards and "agents" to bring focus on desired information • Assist and structure key management processes• Quick connections to information trading partners

InfoTech shifts from financial reporting to enterprise infrastructure• View as a logistics service, not as a financial function• Distribute control and responsibility to the users

Refined ObjectivesSupporting strategy with best-fit tools

is enabled rather than inhibited

Switching/upgrading to new technology and applicationsis enabled rather than inhibited.

Accommodating custom electronic "partner" relationshipsis enabled rather than inhibited.

Integrating new plants, facilities, mergers, and acquisitionsis enabled rather than inhibited.

All information is accessible electronicallyto those authorized to see it.

Electronic "dashboards" will provide real-time vision and monitoringof operational and strategic activities.

Provide competitive advantage throughenterprise visibility, adaptability, and technology

Rules of Engagement

Get the best plans and designs and technologies possible, wherever they may be found.

For implementation and evolution,employ internal and local resources whenever possible,

else transfer responsibility to local resources as fast as possible.

Build internal spec/test/management/operating capability,and outsource implementation projects (locally).

View and install IT as a logistics function.

Organize strategic, tactical, and distributed elements.

Make up the rules as you go along,and refine them until they work.

ERP/HRM Implementation

Wish Typical Imp Actual with OSFM ERP in 12 mos working 24-36 mos 12 mos workingImp=80% of license cost 200-300% 75-85% Budget $10 Million (5+5) $15-25 Million $9 Million

HRM (PS) in 6 mos 12-18 mos 5 mos

HOW??

– Unique approach to integration methodology and management– Adherence to methodology (ie, effective management)– BSAs utilizing MBW tool to develop business processes– BSAs taking responsibility for integrating ERP with users– Bus/XML architecture connecting ERP with HRM– Expertise to help integrate ERP with CIM (Triniti)– Expertise in agile system design/implementation (Dove/Guglielmo)

BSA = Business Systems AnalystMBW = Management by Wire (application from www.ecgsoft.com)

(To show metric results of a process designed with agile principles)

General Approach• Establish Goals

• Develop Strategic Themes

• Build Differentiation Strategy

• Identify Phase 1 and 2 Activities

• Set Objectives Based on Dynamic Responsiveness

• Employ Agile Design Principles

• Embed Change Proficiency in the Culture

Tools: Consistent Principles and Concept Representation

• Porter Strategic Differentiation (theme/activity dependency web)

• Balanced Score Card (BSC) with 4-Tier Strategy Map

• Response Situation Analysis (8 change domains)

• RRS Architecture (10 design principles)

• Agile Security Framework (12 design principles)

BSC Strategy Map Lowest Cost Profitable Growth

Highest Quality Premier Service Competitive Tech

Process Mastery Process Development

Competency Discipline Culture Innovation

What comes out the top is caused by what's at the bottom.

Financial goalsare attained

because we delivervalue to customers

which comes from key internal processes

(core competencies)

which are based onknowledge and

knowledgeable people

ProcessTransparency

ProcessTransparency

Goal Linkage - Cause & Effect Lowest Cost Profitable Growth

Highest Quality Premier Service Competitive Tech

Process Mastery Process Development

Competency Discipline Culture Innovation

What comes out the top is caused by what's at the bottom.

Initial IT projects target most-in-need enabling areas.

Financial goalsare attained

because we delivervalue to customers

which comes from key internal processes

(core competencies)

which are based onknowledge and

knowledgeable people

Differentiation Strategy

• A set of interacting activities which makes us– different than our competitors,– valuable to our customers, and– difficult to copy.

• Important because competition on operational efficiency alone– converges on common capabilities and – results in decreasing profits

• An activity web is a tool for– building a differentiation strategy and– communicating a differentiation strategy

Activity WebDifferentiation Strategy

CustomerCustomerCompatibleCompatible

StrategyDeliveryMgmnt

CulturalEngineering

Mgmnt

LeadershipLeadershipServiceService

TransparentTransparent

ITInfrastruct.

Mgmnt

ReliableReliable

ServiceInteraction

Mgmnt

Mix andCapacityMgmnt

StrategyDevel'ment

Mgmnt

TalentRelationship

Mgmnt

TrustworthyTrustworthy

ProcessDevel'ment

Mgmnt

BestBestValueValue

CustomerSatisfaction

Mgmnt

ProductionMasteryMgmnt

ITAdaptation

Mgmnt

Strategy comesfrom activity

interaction

AgileSystemsMgmnt

SecurityEvolutionMgmnt

Lines show mutual dependencies

- Strategic Themes- Agile Activities – Initial- Agile Activities - Later

Agility

KnowledgeManagement

activities are

ResponseAbility

consists of

activities are

ITAdaptation

Mgmnt

ITInfrastructure

Mgmnt


Mgmnt

TalentRelationship

Mgmnt

AdaptableSystemsMgmnt



Culture &Process

MyBus &MyETLMyFab Outsource

Support Culture &TrainingMyProjects Principles &

New Vision

ResponseSituation Analysis

ReusableReconfigurable

Scalable

with objectivesdefined by

achieved witharchitecture that is

Agile Strategy Concept Linkage

Note: Relationships flow downward in concept maps

unless an arrowhead is present.

Response-AbilityDesign Principles

Proactive/ReactiveAnalysis Framework

appsare

appsare

appsare

appsare

appsare

appsare

appsare

8 Key Activities

ServiceIntegration

Mgmnt

MyStaff

appsare



CulturalEngineering

Mgmnt



ITInfrastruct.

Mgmnt

ReliableReliable

ServiceInteraction

Mgmnt


StrategyDevel'ment

Mgmnt

TalentRelationship

Mgmnt


ProcessDevel'ment

Mgmnt

BestBestValueValue


Mgmnt


ITAdaptation

Mgmnt

AgileSystemsMgmnt


Activity: Strategy Delivery Management (MyProjects)Goal: Real-time transparency of strategy implementation activity Objectives: Web interaction with all strategy implementation activity

Respond faster to strategy changes and project difficultiesBuild and maintain management discipline and cultureTie resource deployment to strategic goalsIncrease success rate of strategiesManage the achievement of goals and objectives effectively

DynamicExternal Factors

• Customers• Technology• Market Cycles• Competition• etc

Dynamic Internal Factors

• Knowledge• People• Infrastructure• Resources• etc

Strategies

Process Organization

PerformanceMetrics

Information

Activity: Strategy Delivery Management (MyProjects)• Web interaction/dashboard for all strategy implementation activity• Project definition, strategic value, approval, real-time monitoring• Resource application, scheduling, conflicts (internal data analysis)• Justification dynamics monitoring, conflicts (external data analysis)• Cultural Dev: BSC, RS Analysis, RRS Design, Personal Performance

ProjectProject

ProjectProject

ProjectProject

ProjectProject Project

ProjectProject

ProjectProject

ProjectProject

Project

MyProjects

Real-time X-Ray of All Strategy Implementation Activity

http://www.jach.hawaii.edu/JAClocal/images/clipart/Technology/radar.gif



CulturalEngineering

Mgmnt



ITInfrastruct.

Mgmnt

ReliableReliable

ServiceInteraction

Mgmnt


StrategyDevel'ment

Mgmnt

TalentRelationship

Mgmnt


ProcessDevel'ment

Mgmnt

BestBestValueValue


Mgmnt


ITAdaptation

Mgmnt

AgileSystemsMgmnt


Activity: Customer Satisfaction ManagementGoal: Real-time view of customer satisfaction activity and infoObjectives: Web interaction with all ops/eng/service information

Self-service access to information and knowledgeUser customizable reports and data formattingUser customizable event monitoring and alerts

Individualized security-level and access controlManagement of service event resolution and quality Quickly accommodate new features and new technologyHelp reduce service costs by 50%

MyFabPortal

Web Access

Load And Oracle Data

Service Management

Access Oracle APIs

Pre-Release Features

Direct Access

Document Search& Retreival

User & SecurityValidation

Web Access

Web Access

Web Access

Web Access

Web Access

Web Access

Web Access

CollaborativeAnalysis

Access Analytical Data

Manufact'ing

Engineering

Sales/Mkt

Planning

Finance

Execs, Etc

EngineeringData Bases

Oracle FIN,OSFM, etc

Oracle CRMAPS, Etc

EpicentricApps

FeaturePrototyper

CADET+

DocumentControl

SecurityData Base

CustomerEng'ring

DataPower

Customers

MyFab Serves Everybody

Web Access


Service Management

Access Oracle APIs


Direct Access



Web Access

Web Access

Web Access

Web Access

Web Access

Web Access

Web Access



Manufact'ing

Engineering

Sales/Mkt

Planning

Finance

Execs, Etc



Oracle CRMAPS, Etc

EpicentricApps

FeaturePrototyper

CADET+

DocumentControl

SecurityData Base

CustomerEng'ring

DataPower

Customers

Penetrates Like X-Ray into All Customer Satisfaction Activity

MyFabPortal

MyFabPortal

Web Access


Service Management

Access Oracle APIs


Direct Access



Web Access

Web Access

Web Access

Web Access

Web Access

Web Access

Web Access



Manufact'ing

Engineering

Sales/Mkt

Planning

Finance

Execs, Etc



Oracle CRMAPS, Etc

EpicentricApps

FeaturePrototyper

CADET+

DocumentControl

SecurityData Base

CustomerEng'ring

DataPower

Customers

. . . . . . . . . . . . . . . . . . . . . . . . .

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Intelligent Transparency

MyFabPortal

Web Access


Service Management

Access Oracle APIs


Direct Access



Web Access

Web Access

Web Access

Web Access

Web Access

Web Access

Web Access



Manufact'ing

Engineering

Sales/Mkt

Planning

Finance

Execs, Etc



Oracle CRMAPS, Etc

EpicentricApps

FeaturePrototyper

CADET+

DocumentControl

SecurityData Base

CustomerEng'ring

DataPower

Customers

Intelligent Transparency



CulturalEngineering

Mgmnt



ITInfrastruct.

Mgmnt

ReliableReliable

ServiceInteraction

Mgmnt


StrategyDevel'ment

Mgmnt

TalentRelationship

Mgmnt


ProcessDevel'ment

Mgmnt

BestBestValueValue


Mgmnt


ITAdaptation

Mgmnt

AgileSystemsMgmnt


Activity: Customer Service Interaction ManagementGoal: Faster, cheaper, better customer interactionObjectives: Faster access to more useful data and knowledge

Faster resolution of problems and opportunitiesReduced elapsed time/cost of new-business prototypesReduced cost of customer satisfaction activity Build higher value relationships with lower service costs

MyFab IT Infrastructure

MyStaff Facilitation Infrastructure

Order WafersOrder Wafers

CustomerGuide

FacilitatesUtilization

7x24 Rolling Responsibility, Decisions, and Best-Interest Initiative

Activity: Customer Service Interaction Management (MyStaff)• Rolling-responsibility service-centric operating strategy.• No customer-service department, per se, everybody services.• Employees show best-interest initiative and initiate service contact.• Customer has access to anyone, and to any information (must earn the right)• Video access to production floor work-in-process and process operators• Mi casa, su casa!!!

Customer serviced directly by responsible person

Customer access by phone/web/email/pager/PDA/etc



CulturalEngineering

Mgmnt



ITInfrastruct.

Mgmnt

ReliableReliable

ServiceInteraction

Mgmnt


StrategyDevel'ment

Mgmnt

TalentRelationship

Mgmnt


ProcessDevel'ment

Mgmnt

BestBestValueValue


Mgmnt


ITAdaptation

Mgmnt

AgileSystemsMgmnt


Activity: IT Infrastructure ManagementGoal: Support new business process/strategy quickly/effectivelyObjectives: Highly adaptable enterprise IT architecture

Bring new IT applications into the system quicklyReplace old IT applications without disruptionIncorporate new business-units and data sources quicklyEnable a multi-vendor enterprise IT system

Activity: IT Infrastructure Management

Fab #1

• Bus-Centric Plug-and-Play Component Architecture• MyBus* and MyETL* Infrastructure Components

PeopleSoft

MyProjects

OtherAppsMyFab Oracle

11i ApsOther

dBases

Fab #n A&T #1 A&T #n

Like Component Stereo...Loosely-Coupled Components Facilitate Upgrade and System Change

AdexaPlanner

XML Enterprise Bus

A&T = Assembly and Test Plant

OracleERP dB

(* MyBus/MyETL: Tuesday 9:45 presentation by Gene Guglielmo)



CulturalEngineering

Mgmnt



ITInfrastruct.

Mgmnt

ReliableReliable

ServiceInteraction

Mgmnt


StrategyDevel'ment

Mgmnt

TalentRelationship

Mgmnt


ProcessDevel'ment

Mgmnt

BestBestValueValue


Mgmnt


ITAdaptation

Mgmnt

AgileSystemsMgmnt


Activity: IT Adaptation ManagementGoal: Faster, cheaper, better implementation of IT projects Objectives: Reduce cost/time due to mismatch of skills and technology

Gain best-fit current technology solutionsEliminate need for scarce development-staff resourcesProvide on-time, on-budget, on-spec controlled results

Agile Implementation Process

DevelopBusiness Rulesand Data Defs

Configure ERPApplications

ConfigureDatabase

Configure/BuildBus Adaptors

• Implementation strategy “encapsulates” each team,making them solely/totally responsible for functionality.

bsa bsa

bsa bsa

bsa

bsa

bsa

bsa

B-RulesMgr

……..

……..

V1V1

bsabsa V1V1

V1V1

bsabsa

……..

……..

……..

V2V2

dbadba V2V2

V2V2

dbadba

……..

……..

……..

V3V3

IfTIfT V3V3

V3V3

IfTIfT

……..

Days0-60

61-120

121-180

Days0-15

16-30

31-45

Full Functionality• Software• Hardware Spec• Training• Implementation

• Encapsulation of projects promotes plugable encapsulation of functional components.



Full Functionality• Procedures• Work Flow• Rules• Data Definitions

Days0-60

61-120

121-180

60 days

Step A Step B Step C Step D

3-Phases

Template

Alpha

Beta

bsa = business systems analyst, V1/V2/V3 = different vendors, dba = database administrator, IfT = IT infrastructure technician.

© 2

001

, R

esp

on

se

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ey

……..

……..

V2V2

bsa bsa V2V2

V2V2

bsa bsa

……..

……..

……..

V3V3

ITIT V3V3

V3V3

ITIT

……..60 days

3-Phases

Template

Alpha

Beta

DevelopArchitectureand Design

DevelopBusiness Rules

and Specs

ManageOutsourced

Development

ConductTesting and

User Training

Days0-90

91-180

181-270

Days60-90

150-180

240-270

bsa bsa

bsa bsa

bsa

bsa

bsa

Proj.Mgr

bsa

Activity: IT Adaptation Management• Process-management approach to IT development

120 days

ssa ssa

ssa ssa

ssa

ssa

ssa

Prog.Mgr

ssa

SteeringCommittee

ProgramManager

BudgetOwner

IT ProjectManager BSA

IT SupportResources

Outside DevelopmentResources

ITInfrastructure

Operations

COTS (ERP) Project Example

……..

……..

V2V2

bsa bsa V2V2

……..

……..

……..

V3V3

ITIT V3V3

V3V3

……..60 days

3-Phases

Template

Alpha

Beta

DevelopArchitectureand Design

DevelopBusiness Rules

and Specs

ManageOutsourced

Development

ConductTesting and

User Training

Days0-90

91-180

181-270

Days60-90

150-180

240-270

bsa bsa

bsa bsa

bsa

bsa

bsa

Proj.Mgr

bsa

120 days

ssa ssa

ssa ssa

ssa

ssa

ssa

Prog.Mgr

ssa

SteeringCommittee

ProgramManager

BudgetOwner

IT ProjectManager BSA

IT SupportResources

Outside DevelopmentResources

ITInfrastructure

Operations

V2V2

bsa bsa ITIT



CulturalEngineering

Mgmnt



ITInfrastruct.

Mgmnt

ReliableReliable

ServiceInteraction

Mgmnt


StrategyDevel'ment

Mgmnt

TalentRelationship

Mgmnt


ProcessDevel'ment

Mgmnt

BestBestValueValue


Mgmnt


ITAdaptation

Mgmnt

AgileSystemsMgmnt


Activity: Talent Relationship ManagementGoal: Utilize outside expertise effectively and seamlesslyObjectives: Obtain and apply specialty expertise rapidly

Maximize productivityEffective knowledge transfer and diffusionEmployee-like behavior (loyalty, trust, urgency, etc)



CulturalEngineering

Mgmnt



ITInfrastruct.

Mgmnt

ReliableReliable

ServiceInteraction

Mgmnt


StrategyDevel'ment

Mgmnt

TalentRelationship

Mgmnt


ProcessDevel'ment

Mgmnt

BestBestValueValue


Mgmnt


ITAdaptation

Mgmnt

AgileSystemsMgmnt


Activity: Security Evolution ManagementGoal: Multi-tiered Customer-Selectable Leadership SecurityObjectives: Assumption of entry (no faith in perimeter defenses)

Early intrusion and tamper detectionPartitioned vulnerability/intrusion containmentEffective damage control and rapid recoveryEnlightened perimeter and insider defense shieldsAnticipatory defenses and high agilityAccommodate any customer security requirement

Agile SecurityProactive Principles

Vulnerability Anticipation – Identify/fix vulnerabilities before exploitation, sense indirect indicators of exploitation

Prudence – Correct vulnerabilities before exploitation

Transformation – Change randomly the elements/nature of security system

Threat/Risk Anticipation – Identify and counter threats and risks before exploitation

Migration – Continuous upgrade of security strategy and components

Accountability (Proactive) – Identify perpetrators with traps, glass houses, disinformation, etc, before damage

Reactive Principles

Detection – Detect intrusion and damage quickly

Containment – Minimize potential damage scope

Mitigation – Minimize potential damage magnitude

Assessment – Understand what has been damaged and how

Recovery – Repair damage quickly

Accountability (Reactive) – Identify the perpetrators forensically, after damage

© 2004, Rick Dove, paper-in-process: Agile Security: New Principles For A New Age

Activity: Security Evolution Management



CulturalEngineering

Mgmnt



ITInfrastruct.

Mgmnt

ReliableReliable

ServiceInteraction

Mgmnt


StrategyDevel'ment

Mgmnt

TalentRelationship

Mgmnt


ProcessDevel'ment

Mgmnt

BestBestValueValue


Mgmnt


ITAdaptation

Mgmnt

AgileSystemsMgmnt


Activity: Agile Systems ManagementGoal: Systems designed to accommodate changeObjectives: Develop skills for creating/maintaining adaptable systems

Highly adaptable IT systemsRapid production process creationReadily employed external expertiseDelivery commitments unaffected by the unexpected

Activity: Agile Systems Management

Use Response Situation Analysis to define objectives:

Proactive Reactive

▪ Creation ▪ Correction

▪ Improvement ▪ Variation

▪ Migration ▪ Expansion

▪ Modification ▪ Reconfiguration

Use Reusable/Reconfigurable/Scalable (RRS) principles to design systems:

▪ Encapsulated Modularity ▪ Evolving Framework

▪ Plug Compatibility ▪ Redundancy/Diversity

▪ Facilitated Reuse ▪ Elastic Capacity

▪ Peer-Peer Interaction ▪ Distributed Control/Information

▪ Deferred Commitment ▪ Self Organization

Designate management responsibilities for maintenance of system...

▪ Frameworks ▪ Components

▪ Configurations ▪ Component Inventories

Activity WebDifferentiation Strategy



CulturalEngineering

Mgmnt



ITInfrastruct.

Mgmnt

ReliableReliable

ServiceInteraction

Mgmnt


StrategyDevel'ment

Mgmnt

TalentRelationship

Mgmnt


ProcessDevel'ment

Mgmnt

BestBestValueValue


Mgmnt


ITAdaptation

Mgmnt

- Strategic Themes- Agile Activities – Initial- Agile Activities - Later

Strategy comesfrom activity

interaction

AgileSystemsMgmnt


Lines show key dependencies



Scalable






Proactive/ReactiveAnalysis Framework

Agile Strategy

Concepts

Agility

KnowledgeManagement

activities are

ResponseAbility

consists of

activities are

ITAdaptation

Mgmnt

ITInfrastructure

Mgmnt


Mgmnt

TalentRelationship

Mgmnt




Culture &Process



New Vision

appsare

appsare

appsare

appsare

appsare

appsare

appsare

ServiceIntegration

Mgmnt

MyStaff

appsare


CreationImprovement

MigrationModification

with proactivedomains of

CorrectionVariation

ExpansionReconfig-uration

with reactivedomains of



Scalable


Agile Strategy

Concepts




Agility

KnowledgeManagement

activities are

ResponseAbility

consists of

activities are

ITAdaptation

Mgmnt

ITInfrastructure

Mgmnt


Mgmnt

TalentRelationship

Mgmnt




Culture &Process



New Vision

appsare

appsare

appsare

appsare

appsare

appsare

appsare

ServiceIntegration

Mgmnt

MyStaff

appsare

AGILITY IS CHANGE PROFICIENCYIN EIGHT CHANGE DOMAINS

Proactive Change:

– Creation

– Improvement

– Migration

– Modification

Reactive Change:

– Correction

– Variation

– Expansion

– Reconfiguration

Build New Capability.

Continuous, Daily Incremental Upgrade.

Transformation of Basic Concepts.

Add/Delete Unique Capability.

Failure Corrections and Alternatives.

Real-Time Operating Change.

Increase/Decrease Existing Capability.

Change Relationships Among Modules.

Infrastructure Requirements – A Response Situation Analysis[Response Ability Metrics: c=cost, t=time, q=quality, s=scope]

– Creating (acquiring) sufficiently experienced personnel resources [c,t,q,s]

– Creating new customer/supplier/partner bus-link hook-up [t,q,s]

– Creating business acquisition bus-link hook-up [t,q,s]

– Creating an interface to a new application [t,c,s]

– Creation effective interface documentation [c,q]

– Improvement of interface performance [t,s]

– Retention of sufficiently experienced personnel resources [t,c,q,s]

– Migration to NT and COM/DCOM, etc [c,q]

– Addition of new fab [q,s]

– Addition of new customer/supplier/partner data interface [t,s]

– Addition of new industry data standard [t,s]

– Fixing an interface bug that surfaces later in time (author gone) [t,q]

– Diagnosing/testing/debugging new/reconfigured interfaces [t]

– Increase greatly the number of interfaced applications [s]

– Reconfiguration of an interface for an application upgrade/change [c,t,q,s]

– Replacing the bus vendor [c,t,s]

– ...

MyFab: RS Analysis– Addition/change of application/feature modules

– Addition/change of data sources

– Potentially large internal and external user base

– Changing web server platforms

– Availability/affordability of development/maintenance resources

– Security of MyFab system must lead and conform to any customer

– Data interface link and protocol variety accommodates any customer

– Uninterrupted service (DDOS immune, hot manual procedures, ...)

– Scalability of web service volume

– Device variation: Browsers and various PDA types

– Tracked item migration (lots→ wafers→ dies→ finished goods)

– Accommodate special customer needs

– Migration to COTS components from initial custom development

– Customer customizable reports, presentations, alerts

– ...


CreationImprovement



CorrectionVariation





Scalable


Agile Strategy

Concepts




Agility

KnowledgeManagement

activities are

ResponseAbility

consists of

activities are

ITAdaptation

Mgmnt

ITInfrastructure

Mgmnt


Mgmnt

TalentRelationship

Mgmnt




Culture &Process



New Vision

appsare

appsare

appsare

appsare

appsare

appsare

appsare

ServiceIntegration

Mgmnt

MyStaff

appsare

CreationImprovement



CorrectionVariation





Scalable


Self-Contained

UnitsPlugCompatibilityFacilitated

ReuseDeferredCommitmentRedundancy/

Diversity

EvolvableFramework Elastic

Capacity SelfOrganization Distributed

Ctrl & Info Peer-PeerInteraction

based onprinciples of




Agile Strategy

Concepts

Agility

KnowledgeManagement

activities are

ResponseAbility

consists of

activities are

ITAdaptation

Mgmnt

ITInfrastructure

Mgmnt


Mgmnt

TalentRelationship

Mgmnt




Culture &Process



New Vision

appsare

appsare

appsare

appsare

appsare

appsare

appsare

ServiceIntegration

Mgmnt

MyStaff

appsare

System

A group of components

sharing a common interaction framework

and serving a common purpose.

Framework

A set of standardsconstraining and enabling the interactions

of compatible system components.

Component

A separable system sub-unit

with a self-contained capability/purpose/identity,

and capable of interaction with other components.

Cell of Workstations

Practice of Procedures

Stereo System of Components

Chain of Suppliers

Team of People

Company of Divisions

Business Systems

© 2001, Response Ability: The language, Structure, and Culture of the Agile Enterprise, Rick Dove, Wiley

Note: 1 Dee Hock coined the word chaord for organisms, organizations, and systems which harmoniously exhibit characteristics of both order and chaos. The Birth of the Chaordic Century: Out of Control and Into Order, Chaordic Alliance, 1997, www.chaordic.org.

Ordered Chaordic1 ChaoticLegoLego

LegoLegoGlue

Model Lego Erector Set

Framework Examples

© 2001, Response Ability: The language, Structure, and Culture of the Agile Enterprise, Rick Dove, Wiley

CreationImprovement



CorrectionVariation





Scalable


Self-Contained



Diversity








Agile Strategy

Concepts

Agility

KnowledgeManagement

activities are

ResponseAbility

consists of

activities are

ITAdaptation

Mgmnt

ITInfrastructure

Mgmnt


Mgmnt

TalentRelationship

Mgmnt




Culture &Process



New Vision

appsare

appsare

appsare

appsare

appsare

appsare

appsare

ServiceIntegration

Mgmnt

MyStaff

appsare

appsare

CreationImprovement



CorrectionVariation





Scalable


Self-Contained



Diversity








Agile Strategy

Concepts

Agility

KnowledgeManagement

activities are

ResponseAbility

consists of

activities are

ServiceIntegration

Mgmnt

ITAdaptation

Mgmnt

ITInfrastructure

Mgmnt


Mgmnt

TalentRelationship

Mgmnt



MyStaff Culture &Process


Support Culture &Training

Principles &New Vision

appsare

appsare

appsare

appsare

appsare

appsare

appsare

StrategyDeliveryMgmntappsare

MyProjects

CulturalEngineering

Mgmnt

MyProjects

Objective: Enable, enforce, and constrain the creation and evolution of a management discipline and culture that values projects for:– contribution to corporate goals, – personal accountability, – clearly stated responsibilities, – performance goals and metrics, – frequent and open re-evaluation of progress and plans, and – the meeting of commitments.

MyStaff

Objective: Enable, enforce, and constrain the creation and evolution of a service discipline and culture that values:– open information and knowledge sharing, – initiative, – responsibility, – accountability, and – constant improvement.

Activity: Cultural Engineering Management• Two dashboard-like applications channel cultural development

CreationImprovement



CorrectionVariation





Scalable


Self-Contained



Diversity








Agile Strategy

Concepts

appsare

Agility

KnowledgeManagement

activities are

ResponseAbility

consists of

activities are

ServiceIntegration

Mgmnt

ITAdaptation

Mgmnt

ITInfrastructure

Mgmnt


Mgmnt

TalentRelationship

Mgmnt







appsare

appsare

appsare

appsare

appsare

appsare

appsare


MyProjects

CulturalEngineering

Mgmnt

CreationImprovement



CorrectionVariation





Scalable


Self-Contained



Diversity







with objectivesdefined byRealsearch

CollaborativeLearning

Agile Strategy

Concepts

appsare

Agility

KnowledgeManagement

activities are

ResponseAbility

consists of

activities are

ServiceIntegration

Mgmnt

ITAdaptation

Mgmnt

ITInfrastructure

Mgmnt


Mgmnt

TalentRelationship

Mgmnt







appsare

appsare

appsare

appsare

appsare

appsare

appsare


MyProjects

CulturalEngineering

Mgmnt

Activity: Realsearch Collaborative Learning

• Knowledge Development

• Knowledge Capture

• Insight Development

• Knowledge Transfer

Real People

Real Problems

Real Time

Issue-Focused

Principle-Based

Structured Workshops

Knowledge Packaged for Transfer

Realsearch, a form of Action Learning

The Detail and DisciplineAvailable at Amazon.com $70+

Available here at $60Chap 8 Silterra IT infrastructure 3 Proactive/reactive principles 4 RS analysis process 5 RRS principles 7 RRS design process 10 Realsearch process

• Discovery workshops analyzed cases. • Found underlying RRS principles.• Then applied principles to a design,

solving a problem for workshop host.• This process is called Realsearch:

Real people solving Real problems in Real time

SuccessesThat will probably stick:

• ERP/HRM implementation procedure (integration responsibility model)

• Agile IT infrastructure

• On-Demand application integration

That will probably be lost:

• Access to comprehensive information On-Demand

• Differentiated eBusiness strategy and implementation

• Business manager responsibility for IT

• Agile business engineering office

• MyStaff concept of employee involvement (but IT support stays)

That were planned but will probably not be implemented

• MyProjects: strategy implementation management/transparency

• Agile-culture development and maintenance

• Agile security strategy

Hindsight ObservationsValue propositioning insufficiently addressed for execs

– CEO vision was articulated, but not bought into by others

– Benefits of agile vision neither appreciated, nor taught

Major attention focus conflict

– Production focused on plant/process construction (Herculean)

– Sales/Marketing focused on getting orders (Herculean)

– Other areas struggling with OJT and cultural conflicts

Unresolved responsibility gaps

– Copy Exact MES untouchable, sacred, isolationist

– Unresolved data-integrity conflict between ERP and MES

– Unresolved ownership of eBusiness strategy & proj mgmnt

Unresolved cultural conflicts

– Serious intercultural cold war and gang politics

– Resentment of US mgmnt, impatience for power transition

– Competency and performance not appreciated concepts

Unsustainable implementation and strategy

– Mandate to hire local IT, but insufficient capabilities available

Hindsight LessonsValue propositioning for main decision should never stop

– People will not listen until they are ready

– Individual focus discovers and utilizes individual's values

Success constraints should be addressed with separate and continuous value propositioning

– Do not assume problems are understood, make the case

– Start-ups do not have forgiving time frames

Responsibility voids and conflicts must be resolved early

– IT cannot get cooperation w/o business mgr's commitment

Cultural engineering should start early

– Soft stuff is hard part, and cannot be postponed

– Mismatch here is guaranteed rejection with time

There is no substitute for competency and talent

– Plan sustainability up front and act early

Hindsight LessonsStrategic Value Proposition Work Needed

•Agile security strategy and architecture

•Internal responsibility for IT integration

•Business management commitment to agility

•Access to information by employees and customers

•Business management responsibility for IT tools

•Business engineering responsibility

Misperception LogicPlous: Behavioral Psychology of Decision Making

© 2004, Rick Dove, Value Propositioning: Talent of Champions

conforms to

SelectivePerception

Expectations

Hopes

ContextDependence

MemoryBias

AssociatedMemories

InferredDetails

Re-construction

of Event

PartialMemory

OtherInformation

from

filled inwith

HindsightBias

PastEvent

believing

Predictable

was

Mis-perception

is caused by

Consistency

BiasedKnowledge

SelfImage

with

forces

OldPerceptions

meaning

results in

Comparison

SpecificReference

DominatePerception

FirstPerception

LastPerception

AssociatedPerceptions

determined by

making

may use

meaning making

with conform to

drawn from

CognitiveDissonance

Relationship flow is downwardunless arrowhead present.

RecencyEffect

PrimacyEffect

ContrastEffect

HaloEffect

will be

PerceptionCreation

by changing

determined by

Individual Decision Logic

UnderValued

Increases

IndividualDecisionBehavior

LowProbability

Gain

HighProbability

Loss

LossAverse

Behavior

"S" Curve

RelativeNon-Linear FormulationDependent

RiskAverse

Behavior

RiskSeekingBehavior

SteeperNegativeValues

GainLoss

Value

StatusQuo

RuinessOutcome

Hopes andExpectations

Perception asLoss or Gain

to

HighProbability

Gain

LowProbability

Loss

UnderWeightedHigh Prob

OverWeightedCertainty

Psycho-logicalBias

OverWeightedLow Prob

LossesLoomLarger

KnowledgeDependent

OverWeighted

Prob

UnderWeighted

Prob

LowKnowledge

HighKnowledgeChunking

Probabilities

Simplified

Elimination

by

Simpli-fication

reflects valuation as:

unless

results in results in results in results in results in results in results in results in results in

with

looks like

shaped as

InitialGains/Losses

Dominate

DiminishingIncremental

Values

results in

NotSignificant

if

perceptions of

if DM has

sets neutralpoint of

whichbiases

shaped by

effect iseffect is

Probability (Prob) is the subjective likelihood, assumed by a Decision Maker, that a proposed benefit will deliver as promised.


Kaheman & Tvarsky: Prospect Theory

© 2004, Rick Dove, Propositioning: Talent of Champions


based on

PerceptionCreation

GroupDecisionBehavior

PerformanceTargets

UnresolvedConflict

SimplePatterns

CandidateSolutions

SearchProcess

ProblemPerception

Who'sSearching

Amount ofOrg Slack

StandardRules

PastExperience

Past OrgSlack

selected by

PastPerform-

ance

PastObjectives

Perform-ance ofOthers

based on

DM'sObjectives

ObjectiveList

GroupMembers

involves

ObjectiveSetting Choice

based on

Influenced by

based on

"Satisficing"Valuation

results in

avoidsuncertainty by

Short TermView

results in

ContractTerms

NegotiatedPredictability

SequentialAttention

results in

PostponingSome

Objectives

results in

LowestCommonality

AcceptableLevel Rules

includes

MitigatingConflict

Training andExperience

AttentionFocus

Similarityto CurrentSolution

by

ValuePropositions

DecisionPsychology

interpreting

from

determined by

Group Decision LogicCyert & March: Behavioral Theory of the FirmSimon: Administrative Behavior

© 2004, Rick Dove, Value Propositioning: Talent of Champions

On "On Demand"• Term is associated with a solution, not a problem or objective

• Term has no standard definition, used many different ways

• Term implies broad meaning but is used narrowly

• Term is applied to vendor strategies

• We would all benefit from solution-independent definition and objectives

Next ...Agile / On-Demand IT

- Flesh out design principles for generic application and apply to specific focus-problem designs- Discovery workshop groups will do this- Deliverable: white paper on design principles and application- Five workshop host-sites wanted, with real focus-problem- Ten at-large participants wanted

Agile Security- Flesh out design principles for generic application and apply to specific focus-problem designs- Discovery workshop groups will do this- Deliverable: white paper on design principles and application- Five workshop host-sites wanted, with real focus-problem- Ten at-large participants wanted

Value Propositioning- Technology and decision-making behavior mix poorly- New book-in-process addresses this- Good and bad examples wanted- Pre-pub evaluation readers wanted

MoreEnterprise On Demand

• Gene Guglielmo: Tuesday at 9:45 – Bridging The Legacy IT Gap

• Ralph Hodgson: Tuesday 4:45 - Solution Envisioning, Foundation for eBusiness Components

• Jack Ring: Wednesday at 9:45 - Managing On Demand: Doctor Heal Thyself

Rick Dove Interim Executive, Change Management Paradigm Shift International [email protected] On-Demand Application Integration for Agile Business Strategy.

Documents

new opportunity

new environment

new mexico

new values

new plants

opportunity new company

new customer expectations

agile business strategy