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Why Digital Transformations are Failing at Scale

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During this webinar guest speaker, Forrester VP, Principal Analyst, Diego Lo Giudice, and Tasktop CEO, Dr. Mik Kersten, present their research on why transformations are failing at scale and how a product value stream approach enables organizations to survive and thrive in the age of digital disruption.

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Why Digital Transformations are Failing at Scale

  1. 1. 1© 2017 FORRESTER. REPRODUCTION PROHIBITED.
  2. 2. 2© 2017 FORRESTER. REPRODUCTION PROHIBITED.
  3. 3. © 2019 FORRESTER. REPRODUCTION PROHIBITED.
  4. 4. © 2019 FORRESTER. REPRODUCTION PROHIBITED. The New Business Imperative: Leading With Product Development Diego Lo Giudice, Vice President & Principal Analyst June xx, 2019
  5. 5. 5© 2019 FORRESTER. REPRODUCTION PROHIBITED. Digital transformation is the goal Source: Forrester’s Q1 2018 Digital Process Automation Survey Base 354 business and technology leaders
  6. 6. 6© 2019 FORRESTER. REPRODUCTION PROHIBITED. Most digital transformation initiatives are failing Source: “The Sorry State Of Digital Transformation In 2018” Forrester report. Base: 1,559 business and technology decision makers
  7. 7. © 2019 Forrester Research, Inc. Reproduction Prohibited CUSTOMER CRM Support What is Core ? …. Systems of Record. EMPLOYEE HR Recruiting FINANCE Accounting Planning RESOURCES ERP Supply Chain BIZ INTEL Analytics Reporting RETAIL Inventory, shipping, logistics, make-to-order AIRLINE Crew management, maintenance & operations
  8. 8. © 2019 Forrester Research, Inc. Reproduction Prohibited Customer experience Broken Customer Journeys Create Digital Illusion! The Core Mobile CRM Social monitoring Supply chain Vendor mgt Logistics B2B
  9. 9. © 2019 Forrester Research, Inc. Reproduction Prohibited
  10. 10. © 2019 Forrester Research, Inc. Reproduction Prohibited “My Mobile app did not approve my Web online payment”
  11. 11. @mik_kersten projecttoproduct.org Mawdud Choudhury “Brick & Mortar US Retailer Market Value” ExecTech Stock Price Change 2006-2016 50% of S&P 500 projected to be replaced in 10 years
  12. 12. 12© 2019 FORRESTER. REPRODUCTION PROHIBITED. So what’s going on?
  13. 13. 13© 2019 FORRESTER. REPRODUCTION PROHIBITED. #1. Your Core Is The Elephant In The Room !
  14. 14. © 2019 Forrester Research, Inc. Reproduction Prohibited Our Core Problems… Static and Inflexible Unreachable Indispensable Data Growing Technical Debt
  15. 15. © 2019 Forrester Research, Inc. Reproduction Prohibited What Else is Holding Us Back? Siloed work and limited collaboration Agile gets stuck! Forced to work on large batches Agile gets stuck! Doing Agile and not Being Agile.
  16. 16. © 2019 Forrester Research, Inc. Reproduction Prohibited Agile (…Fast, nimble small batches) The Bimodal Drama Waterfall (…slow, complex, big batch) Systems Of Engagement Systems Of Record
  17. 17. © Tasktop Technologies Inc. 2019 Tasktop Confidential Information 120 days To deliver a feature from an idea to customer 2.5 % Actual development time Other Development
  18. 18. © Tasktop Technologies Inc. 2019 Tasktop Confidential Information Scaling Staff, Slowing Delivery Business perceives that IT is delivering less and less as investment grows WHY?
  19. 19. @mik_kersten projecttoproduct.org Image taken with permission from Jon Smart presentation at DOES London 2018 – credit Klaus Leopold Local Optimization ofValue Stream
  20. 20. 20© 2019 FORRESTER. REPRODUCTION PROHIBITED. #2. Speed Of Delivery Is Stuck !
  21. 21. © 2019 Forrester Research, Inc. Reproduction Prohibited enterprises release applications monthly 20%release applications monthly 9%release applications monthly +
  22. 22. © 2019 Forrester Research, Inc. Reproduction Prohibited Your ”Development” Release Has Long Been Stuck ! Base (2018): 3,228 Developers Base: 546-719 Developers who work for a software company, for internal IT, or in technology services Source: Forrester Business Technographics Developer Survey, 2014-2018 0% 5% 10% 15% 20% 25% 30% We average one release a year (or less frequently) We average two releases a year We average one release per quarter We average one release a month We average one release a week We average a release a day We release many times per day "How often does your team or teams release applications?" 2018 2017 2016 2015 2014 One Release a Month
  23. 23. 23© 2019 FORRESTER. REPRODUCTION PROHIBITED. How Can We Fix This ?
  24. 24. 24© 2019 FORRESTER. REPRODUCTION PROHIBITED. #1. Remove The Elephant In The Room !
  25. 25. © 2019 Forrester Research, Inc. Reproduction Prohibited Eliminate The Bimodal Drama Agile (…Fast, nimble small batches) Systems Of Engagement Systems Of Record Waterfall (…slow, complex, big batch)
  26. 26. © 2019 Forrester Research, Inc. Reproduction Prohibited Move to cloud, to decouple and decompose through Containers, APIs, Microservices architectures and business services…
  27. 27. 27© 2019 FORRESTER. REPRODUCTION PROHIBITED. Modern Software Correlates With Business Growth Source: Forrester’s Business Technographics® Business and Technology Developer Survey 2018 Which of the following architecture styles does your organization currently use or plan to use? Base: Developers who work full time, n=3,111 Currently use microservices have revenue growth of 15% or more Currently use Planning to use Don't know Not interested or no plans 42% Microservices / microservice architecture 32% 17% 9% Not interested or no plans have revenue growth of 15% or more 31%11%
  28. 28. © 2019 Tasktop Technologies Incorporated. Agile DevOps Not Enough
  29. 29. © 2019 Tasktop Technologies Incorporated. From silos and proxy metrics
  30. 30. © 2019 Tasktop Technologies Incorporated. TOVALUE STREAM MANAGEMENT WITHTHE Flow Framework™
  31. 31. 31© 2019 FORRESTER. REPRODUCTION PROHIBITED. #2. Manage SW Delivery As A Business Capability
  32. 32. 32© 2019 FORRESTER. REPRODUCTION PROHIBITED. Software Delivery Requires Core Competencies Digital matters.. Software powers digital.. Software excellence = Business excellence
  33. 33. © 2019 Forrester Research, Inc. Reproduction Prohibited Software Delivery Capabilities Become A CEO ”Affair”
  34. 34. 34© 2019 FORRESTER. REPRODUCTION PROHIBITED. To harness digital... Forrester report: Harness Emerging Technologies To Differentiate Your Digital Business Beginners do only Agile... Advanced capability also requires pervasive continuous delivery
  35. 35. 35© 2019 FORRESTER. REPRODUCTION PROHIBITED. Measure Customer Satisfaction And Business Value
  36. 36. © 2019 Tasktop Technologies Incorporated. Getting Metrics
  37. 37. © 2019 Tasktop Technologies Incorporated. Delivery Meter
  38. 38. © 2019 Tasktop Technologies Incorporated. Speed to Value Meter
  39. 39. 39© 2019 FORRESTER. REPRODUCTION PROHIBITED. #3. Organize Around Products
  40. 40. © 2019 Forrester Research, Inc. Reproduction Prohibited Increase team autonomy, reduce dependencies to really move fast by aligning team, work, and architecture structures: “small is beautiful” Work Structure (Small Batches, MvPs) Team Structure (Squads, Product Teams) Product Architecture APIs, Micro- services
  41. 41. 41© 2019 FORRESTER. REPRODUCTION PROHIBITED. Automate Governance Through Pipelines CI Tool Automated Test and Validation Automated Deployment Code Repo Artifact Repo Code
  42. 42. 42© 2019 FORRESTER. REPRODUCTION PROHIBITED. Source: Elevate Agile-Plus-DevOps With Value Stream Management Forrester report Use VSM To Understand Flow In Pipelines and Value Delivered
  43. 43. © 2019 Forrester Research, Inc. Reproduction Prohibited Product-Centric Devs Are More Likely to Adopt Modern Practices Than Siloed Dev teams 46% Use design thinking (versus 25%) 61% Use Agile (versus 52%) 48% Use DevOps (versus 30%) 33% Use Value Stream Management (versus 14%) Base: 3,228 US developers Source: Forrester Analytics Global Business Technographics® Developer, 2018
  44. 44. © 2019 Tasktop Technologies Incorporated. Business IT ARTIFACT TYPES7 TOOLS6 PROJECTS10 TEAMS8 PRODUCT1
  45. 45. © 2019 Tasktop Technologies Incorporated. Product Model Jama Atlassian Jira Micro Focus ALM ServiceNow Condition A Condition B Condition C Condition D CONDITION: Features in Project A, C and F CONDITION: Requirements From Project Area “Massive Initiative” where owner is “Joe Smith” CONDITION: Risks that were created after 2017 and is assigned to Component B, D, F CONDITION: Support Tickets from Project H and J and if status is past the accepted state
  46. 46. © 2019 Tasktop Technologies Incorporated. MODELING allow your complex, messy reality to exist while simultaneously evolving, improving and measuring that reality
  47. 47. © 2019 Tasktop Technologies Incorporated. Learn more at http://tasktop.com mkersten@tasktop.com @mik_kersten
  48. 48. © 2019 Tasktop Technologies Incorporated.
  49. 49. © 2019 Tasktop Technologies Incorporated. 49© 2019 FORRESTER. REPRODUCTION PROHIBITED. Adopt Product-Centric thinking to Accelerate Innovation Empower Product Managers To Maintain Business, AD&D, And Customer Alignment Through VSM Draw Alignment Between Accelerated Innovation and Business Goals To Get Leadership Onboard
  50. 50. FORRESTER.COM Thank you © 2019 FORRESTER. REPRODUCTION PROHIBITED. Diego Lo Giudice dlogiudice@forrester.com Twitter: @dlogiudice
  51. 51. © 2019 Tasktop Technologies Incorporated.

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