rick dove interim executive, change management paradigm shift international [email protected]...
TRANSCRIPT
Rick Dove
Interim Executive, Change Management
Paradigm Shift International
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
CustomerSatisfaction
Mgmnt
TalentRelationship
Mgmnt
AdaptableSystemsMgmnt
StrategyDeliveryMgmnt
SecurityEvolutionMgmnt
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
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
AgileSystemsMgmnt
SecurityEvolutionMgmnt
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
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
AgileSystemsMgmnt
SecurityEvolutionMgmnt
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
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
Penetrates Like X-Ray into All Customer Satisfaction Activity
MyFabPortal
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
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Intelligent Transparency
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
Intelligent Transparency
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
AgileSystemsMgmnt
SecurityEvolutionMgmnt
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
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
AgileSystemsMgmnt
SecurityEvolutionMgmnt
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)
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
AgileSystemsMgmnt
SecurityEvolutionMgmnt
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• Software• Hardware Spec• Training• Implementation
Full Functionality• Software• Hardware Spec• Training• Implementation
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.
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……..
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V2V2
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V2V2
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……..
……..
……..
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
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
AgileSystemsMgmnt
SecurityEvolutionMgmnt
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)
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
AgileSystemsMgmnt
SecurityEvolutionMgmnt
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
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
AgileSystemsMgmnt
SecurityEvolutionMgmnt
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
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
- Strategic Themes- Agile Activities – Initial- Agile Activities - Later
Strategy comesfrom activity
interaction
AgileSystemsMgmnt
SecurityEvolutionMgmnt
Lines show key dependencies
ResponseSituation Analysis
ReusableReconfigurable
Scalable
with objectivesdefined by
achieved witharchitecture that is
Note: Relationships flow downward in concept maps
unless an arrowhead is present.
Response-AbilityDesign Principles
Proactive/ReactiveAnalysis Framework
Agile Strategy
Concepts
Agility
KnowledgeManagement
activities are
ResponseAbility
consists of
activities are
ITAdaptation
Mgmnt
ITInfrastructure
Mgmnt
CustomerSatisfaction
Mgmnt
TalentRelationship
Mgmnt
AdaptableSystemsMgmnt
StrategyDeliveryMgmnt
SecurityEvolutionMgmnt
Culture &Process
MyBus &MyETLMyFab Outsource
Support Culture &TrainingMyProjects Principles &
New Vision
appsare
appsare
appsare
appsare
appsare
appsare
appsare
ServiceIntegration
Mgmnt
MyStaff
appsare
Response-AbilityDesign Principles
CreationImprovement
MigrationModification
with proactivedomains of
CorrectionVariation
ExpansionReconfig-uration
with reactivedomains of
ResponseSituation Analysis
ReusableReconfigurable
Scalable
achieved witharchitecture that is
Agile Strategy
Concepts
Note: Relationships flow downward in concept maps
unless an arrowhead is present.
with objectivesdefined by
Agility
KnowledgeManagement
activities are
ResponseAbility
consists of
activities are
ITAdaptation
Mgmnt
ITInfrastructure
Mgmnt
CustomerSatisfaction
Mgmnt
TalentRelationship
Mgmnt
AdaptableSystemsMgmnt
StrategyDeliveryMgmnt
SecurityEvolutionMgmnt
Culture &Process
MyBus &MyETLMyFab Outsource
Support Culture &TrainingMyProjects Principles &
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
– ...
Response-AbilityDesign Principles
CreationImprovement
MigrationModification
with proactivedomains of
CorrectionVariation
ExpansionReconfig-uration
with reactivedomains of
ResponseSituation Analysis
ReusableReconfigurable
Scalable
achieved witharchitecture that is
Agile Strategy
Concepts
Note: Relationships flow downward in concept maps
unless an arrowhead is present.
with objectivesdefined by
Agility
KnowledgeManagement
activities are
ResponseAbility
consists of
activities are
ITAdaptation
Mgmnt
ITInfrastructure
Mgmnt
CustomerSatisfaction
Mgmnt
TalentRelationship
Mgmnt
AdaptableSystemsMgmnt
StrategyDeliveryMgmnt
SecurityEvolutionMgmnt
Culture &Process
MyBus &MyETLMyFab Outsource
Support Culture &TrainingMyProjects Principles &
New Vision
appsare
appsare
appsare
appsare
appsare
appsare
appsare
ServiceIntegration
Mgmnt
MyStaff
appsare
CreationImprovement
MigrationModification
with proactivedomains of
CorrectionVariation
ExpansionReconfig-uration
with reactivedomains of
ResponseSituation Analysis
ReusableReconfigurable
Scalable
achieved witharchitecture that is
Self-Contained
UnitsPlugCompatibilityFacilitated
ReuseDeferredCommitmentRedundancy/
Diversity
EvolvableFramework Elastic
Capacity SelfOrganization Distributed
Ctrl & Info Peer-PeerInteraction
based onprinciples of
Note: Relationships flow downward in concept maps
unless an arrowhead is present.
with objectivesdefined by
Agile Strategy
Concepts
Agility
KnowledgeManagement
activities are
ResponseAbility
consists of
activities are
ITAdaptation
Mgmnt
ITInfrastructure
Mgmnt
CustomerSatisfaction
Mgmnt
TalentRelationship
Mgmnt
AdaptableSystemsMgmnt
StrategyDeliveryMgmnt
SecurityEvolutionMgmnt
Culture &Process
MyBus &MyETLMyFab Outsource
Support Culture &TrainingMyProjects Principles &
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
MigrationModification
with proactivedomains of
CorrectionVariation
ExpansionReconfig-uration
with reactivedomains of
ResponseSituation Analysis
ReusableReconfigurable
Scalable
achieved witharchitecture that is
Self-Contained
UnitsPlugCompatibilityFacilitated
ReuseDeferredCommitmentRedundancy/
Diversity
EvolvableFramework Elastic
Capacity SelfOrganization Distributed
Ctrl & Info Peer-PeerInteraction
based onprinciples of
Note: Relationships flow downward in concept maps
unless an arrowhead is present.
with objectivesdefined by
Agile Strategy
Concepts
Agility
KnowledgeManagement
activities are
ResponseAbility
consists of
activities are
ITAdaptation
Mgmnt
ITInfrastructure
Mgmnt
CustomerSatisfaction
Mgmnt
TalentRelationship
Mgmnt
AdaptableSystemsMgmnt
StrategyDeliveryMgmnt
SecurityEvolutionMgmnt
Culture &Process
MyBus &MyETLMyFab Outsource
Support Culture &TrainingMyProjects Principles &
New Vision
appsare
appsare
appsare
appsare
appsare
appsare
appsare
ServiceIntegration
Mgmnt
MyStaff
appsare
appsare
CreationImprovement
MigrationModification
with proactivedomains of
CorrectionVariation
ExpansionReconfig-uration
with reactivedomains of
ResponseSituation Analysis
ReusableReconfigurable
Scalable
achieved witharchitecture that is
Self-Contained
UnitsPlugCompatibilityFacilitated
ReuseDeferredCommitmentRedundancy/
Diversity
EvolvableFramework Elastic
Capacity SelfOrganization Distributed
Ctrl & Info Peer-PeerInteraction
based onprinciples of
Note: Relationships flow downward in concept maps
unless an arrowhead is present.
with objectivesdefined by
Agile Strategy
Concepts
Agility
KnowledgeManagement
activities are
ResponseAbility
consists of
activities are
ServiceIntegration
Mgmnt
ITAdaptation
Mgmnt
ITInfrastructure
Mgmnt
CustomerSatisfaction
Mgmnt
TalentRelationship
Mgmnt
AdaptableSystemsMgmnt
SecurityEvolutionMgmnt
MyStaff Culture &Process
MyBus &MyETLMyFab Outsource
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
MigrationModification
with proactivedomains of
CorrectionVariation
ExpansionReconfig-uration
with reactivedomains of
ResponseSituation Analysis
ReusableReconfigurable
Scalable
achieved witharchitecture that is
Self-Contained
UnitsPlugCompatibilityFacilitated
ReuseDeferredCommitmentRedundancy/
Diversity
EvolvableFramework Elastic
Capacity SelfOrganization Distributed
Ctrl & Info Peer-PeerInteraction
based onprinciples of
Note: Relationships flow downward in concept maps
unless an arrowhead is present.
with objectivesdefined by
Agile Strategy
Concepts
appsare
Agility
KnowledgeManagement
activities are
ResponseAbility
consists of
activities are
ServiceIntegration
Mgmnt
ITAdaptation
Mgmnt
ITInfrastructure
Mgmnt
CustomerSatisfaction
Mgmnt
TalentRelationship
Mgmnt
AdaptableSystemsMgmnt
SecurityEvolutionMgmnt
MyStaff Culture &Process
MyBus &MyETLMyFab Outsource
Support Culture &Training
Principles &New Vision
appsare
appsare
appsare
appsare
appsare
appsare
appsare
StrategyDeliveryMgmntappsare
MyProjects
CulturalEngineering
Mgmnt
CreationImprovement
MigrationModification
with proactivedomains of
CorrectionVariation
ExpansionReconfig-uration
with reactivedomains of
ResponseSituation Analysis
ReusableReconfigurable
Scalable
achieved witharchitecture that is
Self-Contained
UnitsPlugCompatibilityFacilitated
ReuseDeferredCommitmentRedundancy/
Diversity
EvolvableFramework Elastic
Capacity SelfOrganization Distributed
Ctrl & Info Peer-PeerInteraction
based onprinciples of
Note: Relationships flow downward in concept maps
unless an arrowhead is present.
with objectivesdefined byRealsearch
CollaborativeLearning
Agile Strategy
Concepts
appsare
Agility
KnowledgeManagement
activities are
ResponseAbility
consists of
activities are
ServiceIntegration
Mgmnt
ITAdaptation
Mgmnt
ITInfrastructure
Mgmnt
CustomerSatisfaction
Mgmnt
TalentRelationship
Mgmnt
AdaptableSystemsMgmnt
SecurityEvolutionMgmnt
MyStaff Culture &Process
MyBus &MyETLMyFab Outsource
Support Culture &Training
Principles &New Vision
appsare
appsare
appsare
appsare
appsare
appsare
appsare
StrategyDeliveryMgmntappsare
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
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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.
Relationship flow is downwardunless arrowhead present.
Kaheman & Tvarsky: Prospect Theory
© 2004, Rick Dove, Propositioning: Talent of Champions
Relationship flow is downwardunless arrowhead present.
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