cff 2015 keynote mc kinsey
TRANSCRIPT
@sramjiSam Ramji, CEO
Cloud Foundry Foundation
Continuous Innovation
and Digital Platforms
The End of Competitive AdvantageContinuous InnovationCloud Native Applications
Continuous Delivery of Business Value
Digital PlatformsEnterprise API Platform
Platform Business Model
The Dawn of a New Era
A shift in business matchingthe shift in human behavior
Continuous Reconfiguration
Options Valuation
Constructive Disengagement
Innovation Proficiency
Amazon
Netflix
Allstate
GE
Lockheed Martin
Continuous Innovation
Continuous Deployment
Continuous Integration
waterscrumfall
PAIR
cloud native applicationsWITH
continuous delivery of business value
waterscrumfall
Microservices
Containers
12-Factor Applications
cloud native applications
Ephemeral
Scalable
Agile
cloud native applications
Run in the cloud
Support any client device
Connect to legacy data and processes via APIs
cloud native applications
Right-sizing digital innovation
Focused on cycle time optimization
Smaller teams and faster tools
continuous delivery of business value
Two-pizza teams
Silo-breaking
continuous delivery of business value
“When looking to split a large application into parts, often management focuses on the technology layer, leading to UI teams, server-side logic teams, and database teams.
When teams are separated along these lines, even simple changes can lead to a cross-team project taking time and budgetary approval.
A smart team will optimise around this and plump for the lesser of two evils - just force the logic into whichever application they have access to. Logic everywhere in other words.
This is an example of Conway's Law in action.”
Martin Fowler, “Microservices”
continuous delivery of business value
“Any organization that designs a system (defined broadly) will produce a design whose structure is a copy of the organization's communication structure.
Melvyn Conway, 1967
continuous delivery of business value
dev+ops
continuous delivery of business value
waterscrumfall
continuous delivery of business value
dev+ops+biz
continuous delivery of business value
Requirements for microservices (per Fowler):
rapid provisioningbasic monitoring
rapid application deploymentdevops culture
continuous delivery of business value
Stories Chat Dashboards
continuous delivery of business value
Containers Automation Cluster Management
OCP
continuous delivery of business value
digital platform = APIs
Amazon’s pace of innovation is blistering
Amazon’s baseline issharing by default.
All teams will henceforth expose their data and functionality through service
interfaces.
Teams must communicate with each other through these interfaces. There
will be no other form of inter-process communication allowed: no direct
linking, no direct reads of another team’s data store, no shared-memory
model, no back-doors whatsoever.
The only communication allowed is via service interface calls over the
network.
It doesn’t matter what technology they use. All service interfaces, without
exception, must be designed from the ground up to be externalizable. That is
to say, the team must plan and design to be able to expose the interface to
developers in the outside world. No exceptions.
Anyone who doesn’t do this will be fired. Thank you; have a nice day!
“
Jeff BezosCEO, Amazon
The new baseline issharing by default.
“An architecture to move at the pace of
change.”
Key pillar of innovation strategy
Future proofs existing assets
Makes AT&T network into a platform and
addressable by other innovators
Creates permeability
“[The API program] is an architectural choice one makes for speed.”
John Donovan, Sr. EVP, Technology and Network Ops, AT&T
“If you have infrastructure assets and are going to operate at a pace at which the external market is moving, you have to take capabilities—industry-specific or not—and make platforms from them.”
John Donovan, Sr. EVP, Technology and Network OpsAT&T
“We’re pivoting toward architecting everything we do in an API-centric way.”
Jacob Feinstein, Sr. Director, Core ITAT&T
The new baseline issharing by default.
Nigel Fenwick & Martin Gill (2014),
“The Future Of Business Is Digital,”
Forrester Research
Platform Business Models
Platform businesses are built on network effects.
The more network effects, the stronger the platform.
Kindle
User Book
PSP
User
Gam
Zune
User
Music
MicrosoftSonyAmazon
Eisenmann, Parker, Van Alstyne (2011), “Platform Envelopment,” Strategic Management Journal.
MP3
User Music
Video
TV
Games
Dev
Web
HTML
eBooks
Pub
Calls
User
Apple
Eisenmann, Parker, Van Alstyne (2011), “Platform Envelopment,” Strategic Management Journal.
Eisenmann, Parker, Van Alstyne (2011), “Platform Envelopment,” Strategic Management Journal.
Openness is a critical element of all platform businesses.
Eisenmann, Parker, Van Alstyne (2011), “Platform Envelopment,” Strategic Management Journal.
V4V3
Price
q1
p1
Quantity
V1
V2
Platform sponsor gives away platform value.
Partners build apps for installed base, adding new layers of value.
Platform sponsor benefits from increased sales & royalties.
Partners benefit from cost savings and installed base.
Parker, Van Alstyne (2011), “Innovation, Openness & Platform Control,” SSRN.com.
Platform models generate profit through first and third party usage.
Most firms can only concentrate on most
valuable apps
Profits increase when others add to
platform’s “Long Tail”
Parker, Van Alstyne (2011), “Innovation, Openness & Platform Control,” SSRN.com.
Platform models build digital ecosystems through virtuous cycles.
[Ecosystem Competition]
Kishore S. Swaminathan (2009), Chief Scientist, Accenture
Nigel Fenwick & Martin Gill (2014),
“The Future Of Business Is Digital,”
Forrester Research
In closing
Empirical approach to digital transformation
Continuous Innovation
Enterprise Digital Platform
Further reading:
The End of Competitive Advantage (McGrath)http://12factor.net (Wiggins)Migrating to Cloud-Native Application Architectures (Stine)Microservices (Fowler)Platform Revolution (Parker, Van Alstyne Choudhary)The Power of Pull (Hagel, Brown, Davison)
Thank you@[email protected]
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