Transcript Document

On-Demand
Application Integration for
Agile Business Strategy
Rick Dove
Interim Executive, Change Management
Paradigm Shift International
[email protected]
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.com
Photo: 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 conference
if 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 business
Strat: 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 principles
Strat: Design differentiation strategy and apply principles
Opportunity
New 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 Objectives
Supporting strategy with best-fit tools
is enabled rather than inhibited
Switching/upgrading to new technology and applications
is enabled rather than inhibited.
Accommodating custom electronic "partner" relationships
is enabled rather than inhibited.
Integrating new plants, facilities, mergers, and acquisitions
is enabled rather than inhibited.
All information is accessible electronically
to those authorized to see it.
Electronic "dashboards" will provide real-time vision and monitoring
of operational and strategic activities.
Provide competitive advantage through
enterprise 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
(To show metric results of a process designed with agile principles)
Wish
ERP in 12 mos working
Imp=80% of license cost
Budget $10 Million (5+5)
Typical Imp
24-36 mos
200-300%
$15-25 Million
Actual with OSFM
12 mos working
75-85%
$9 Million
HRM (PS) in 6 mos
12-18 mos
5 mos
HOW??
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–
–
–
–
–
–
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 Analyst
MBW = Management by Wire (application from www.ecgsoft.com)
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
Financial goals
are attained
because we deliver
value to customers
Lowest Cost
Highest Quality
Profitable Growth
Premier Service
which comes from
Process
key internal processes Process Mastery
Transparency
(core competencies)
which are based on
knowledge and
knowledgeable people
Competency
Discipline
Competitive Tech
Process Development
Culture
Innovation
What comes out the top is caused by what's at the bottom.
Goal Linkage - Cause & Effect
Financial goals
are attained
because we deliver
value to customers
Lowest Cost
Highest Quality
Profitable Growth
Premier Service
which comes from
Process
key internal processes Process Mastery
Transparency
(core competencies)
which are based on
knowledge and
knowledgeable people
Competency
Discipline
Competitive Tech
Process Development
Culture
Innovation
What comes out the top is caused by what's at the bottom.
Initial IT projects target most-in-need enabling areas.
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
Lines show mutual
dependencies
Strategy comes
from activity
interaction
Cultural
Engineering
Mgmnt
IT
Infrastruct.
Mgmnt
IT
Adaptation
Mgmnt
Service
Interaction
Mgmnt
Strategy
Devel'ment
Mgmnt
Talent
Relationship
Mgmnt
Customer
Satisfaction
Mgmnt
Strategy
Delivery
Mgmnt
Leadership
Service
Agile
Systems
Mgmnt
Customer
Compatible
Transparent
Process
Devel'ment
Mgmnt
Production
Mastery
Mgmnt
Mix and
Capacity
Mgmnt
Security
Evolution
Mgmnt
- Strategic Themes
- Agile Activities – Initial
- Agile Activities - Later
Best
Value
Trustworthy
Reliable
Activity Web
Differentiation Strategy
Note: Relationships flow
downward in concept maps
unless an arrowhead is present.
Agility
8 Key Activities
consists of
Knowledge
Management
Response
Ability
activities are
activities are
Service
Integration
Mgmnt
apps
are
Strategy
Delivery
Mgmnt
apps
are
Customer
Satisfaction
Mgmnt
apps
are
IT
Infrastructure
Mgmnt
apps
are
IT
Adaptation
Mgmnt
apps
are
Talent
Relationship
Mgmnt
apps
are
Adaptable
Systems
Mgmnt
apps
are
Security
Evolution
Mgmnt
apps
are
MyStaff
MyProjects
MyFab
MyBus &
MyETL
Culture &
Process
Outsource
Support
Culture &
Training
Principles &
New Vision
with objectives
defined by
Response
Situation
Analysis
Proactive/Reactive
Analysis Framework
achieved with
architecture that is
Reusable
Reconfigurable
Scalable
Response-Ability
Design Principles
Agile Strategy Concept Linkage
Cultural
Engineering
Mgmnt
IT
Adaptation
Mgmnt
IT
Infrastruct.
Mgmnt
Strategy
Devel'ment
Mgmnt
Service
Interaction
Mgmnt
Customer
Satisfaction
Mgmnt
Strategy
Delivery
Mgmnt
Leadership
Service
Talent
Activity:
Relationship
Mgmnt
Goal:
StrategyAgile
Delivery Management (MyProjects)
Customer
Systems
Real-time
transparency
of strategy Transparent
implementation activity
Mgmnt
Compatible
Objectives:Process
Web interaction with all strategy implementation activity
Devel'ment
Respond faster to strategy changes and project difficulties
Mgmnt
Build and maintain management discipline and culture
Best
Production Tie resource
Mix and deployment
Trustworthyto strategic goals
Value
Mastery
Capacity
Mgmnt Increase
success rate of strategies
Mgmnt
Manage the achievement of Reliable
goals and objectives effectively
Security
Evolution
Mgmnt
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
Real-time X-Ray of All
Strategy Implementation Activity
My
Projects
ProjectProject
Project
Project
Project
Project
Project
Project
ProjectProject
Project
Project
Project
Project
Project
Project
Dynamic
External Factors
• Customers
• Technology
• Market Cycles
• Competition
• etc
Dynamic
Internal Factors
Strategies
• Knowledge
• People
• Infrastructure
• Resources
• etc
Performance
Metrics
Process
Organization
Information
Cultural
Engineering
Mgmnt
IT
Adaptation
Mgmnt
Strategy
Devel'ment
Mgmnt
Talent
Activity:
Relationship
Mgmnt
Goal:
IT
Infrastruct.
Mgmnt
Service
Interaction
Mgmnt
Customer
Satisfaction
Mgmnt
Strategy
Delivery
Mgmnt
Leadership
Service
Customer
Satisfaction Management
Agile
Customer satisfaction
Systems
Real-time
view of customer
activity and info
Transparent
Mgmnt
Compatible
Objectives:Process
Web interaction with all ops/eng/service information
Devel'ment
Self-service access to information and knowledge
Mgmnt
User customizable reports and data formatting
Best alerts
Production User customizable
Mix and
event
monitoring
and
Trustworthy
Value
Mastery
Capacity
Mgmnt Individualized
security-level and access control
Mgmnt
Management of service event
resolution and quality
Reliable
Security
Quickly accommodate
new features and new technology
Evolution
Mgmnt
Help reduce service
costs by 50%
MyFab Serves Everybody
Customers
Engineering
Data Bases
Access Analytical Data
Oracle FIN,
OSFM, etc
Load And Oracle Data
CADET+
Manufact'ing
Web Access
Web Access
Service Management
Oracle CRM
APS, Etc
Feature
Prototyper
Epicentric
Apps
Web Access
Web Access
Pre-Release Features
Direct Access
Collaborative
Analysis
Planning
Web Access
Execs, Etc
Web Access
Document Search User & Security
Validation
& Retreival
DataPower Document
Control
Sales/Mkt
Web Access
MyFab
Portal
Access Oracle APIs
Engineering
Web Access
Security
Data Base
Finance
Customer
Eng'ring
Penetrates Like X-Ray into All Customer Satisfaction Activity
Customers
Engineering
Data Bases
Access Analytical Data
Oracle FIN,
OSFM, etc
Load And Oracle Data
CADET+
Manufact'ing
Web Access
Web Access
Service Management
Oracle CRM
APS, Etc
Feature
Prototyper
Epicentric
Apps
Web Access
Web Access
Pre-Release Features
Direct Access
Collaborative
Analysis
Planning
Web Access
Execs, Etc
Web Access
Document Search User & Security
Validation
& Retreival
DataPower Document
Control
Sales/Mkt
Web Access
MyFab
Portal
Access Oracle APIs
Engineering
Web Access
Security
Data Base
Finance
Customer
Eng'ring
Intelligent Transparency
Customers
Engineering
Data Bases
Web Access
Manufact'ing
Access Analytical Data
. . . . . . . Web
. . Access
Oracle FIN,
Load And Oracle
. .Data
. . . . . . . . . Web
. . . Access
..
Engineering
OSFM, etc
. . .
. . . . . . . . . .
. . . . . . . 
......................
Service Management
. . . .. . . . .
. . . Access
CADET+
Sales/Mkt
. . . . . . . . . . . . Web
. . . . . . . . . .MyFab
. . . . . . . .
. . . . . . . Web Access
Access Oracle APIs
Portal
. . . . . . . . . . . .. . . . . . . . . . . . .
Oracle CRM
Pre-Release Features
Planning
. . . . . . . . . . . . . . . . . . . . . . . Web
. Access
APS, Etc
. . . . . .
. . . . . . . . .
. . Access

. . . . .Web
Direct Access
....................
Feature
Execs, Etc
Collaborative
. . . . . . . . . . . .Web
.
. .Access
.

Prototyper
Analysis
.........
Epicentric
Document Search User & Security
Finance
Validation
& Retreival
Apps
DataPower Document
Control
Security
Data Base
Customer
Eng'ring
Intelligent Transparency
Customers
Engineering
Data Bases
Access Analytical Data
Oracle FIN,
OSFM, etc
Load And Oracle Data
CADET+
Manufact'ing
Web Access
Web Access
Service Management
Oracle CRM
APS, Etc
Feature
Prototyper
Epicentric
Apps
Web Access
Web Access
Pre-Release Features
Direct Access
Collaborative
Analysis
Planning
Web Access
Execs, Etc
Web Access
Document Search User & Security
Validation
& Retreival
DataPower Document
Control
Sales/Mkt
Web Access
MyFab
Portal
Access Oracle APIs
Engineering
Web Access
Security
Data Base
Finance
Customer
Eng'ring
Cultural
Engineering
Mgmnt
IT
Adaptation
Mgmnt
IT
Infrastruct.
Mgmnt
Strategy
Devel'ment
Mgmnt
Service
Interaction
Mgmnt
Customer
Satisfaction
Mgmnt
Strategy
Delivery
Mgmnt
Leadership
Service
Activity:
Customer Service Interaction Management
Talent
Agile
Relationship
Goal:
Faster,
cheaper,
better
customer interaction
Customer
Systems
Mgmnt
Transparent
Mgmnt
Compatible
Objectives: Faster access to more useful data and knowledge
Process
Faster resolution of problems and opportunities
Devel'ment
Mgmnt
Reduced elapsed time/cost of new-business prototypes
cost of customer
satisfaction
activity
Best
Production Reduced
Mix and
Trustworthy
Mastery Build higher
Capacity value relationships with Value
lower service costs
Mgmnt
Mgmnt
Security
Evolution
Mgmnt
Reliable
Order
Wafers
MyFab IT Infrastructure
MyStaff Facilitation Infrastructure
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 access by phone/web/email/pager/PDA/etc
7x24 Rolling Responsibility, Decisions, and Best-Interest Initiative
Customer
Guide
Facilitates
Utilization
Customer serviced directly by responsible person
Cultural
Engineering
Mgmnt
IT
Adaptation
Mgmnt
IT
Infrastruct.
Mgmnt
Strategy
Devel'ment
Mgmnt
Service
Interaction
Mgmnt
Customer
Satisfaction
Mgmnt
Strategy
Delivery
Mgmnt
Leadership
Service
Talent
Activity:
Relationship
Mgmnt
Goal:
IT Infrastructure
Management
Agile
Customer
Systems
Support
new business
process/strategy
quickly/effectively
Transparent
Mgmnt
Compatible
Objectives:Process
Highly adaptable enterprise IT architecture
Devel'ment
Bring new IT applications into the system quickly
Mgmnt
Replace old IT applications without disruption
Best sources quickly
Production Incorporate
Mix and new business-units
and
data
Trustworthy
Value
Mastery
Capacity
Mgmnt EnableMgmnt
a multi-vendor enterprise IT system
Security
Evolution
Mgmnt
Reliable
Activity: IT Infrastructure Management
• Bus-Centric Plug-and-Play Component Architecture
•
MyBus* and MyETL* Infrastructure Components
(* MyBus/MyETL: Tuesday 9:45 presentation by Gene Guglielmo)
MyFab
Oracle
11i Aps
Oracle
ERP dB
Adexa
Planner
People
Soft
My
Projects
Other
Apps
Other
dBases
XML Enterprise Bus
Fab #1
Fab #n
A&T #1
A&T #n
A&T = Assembly and Test Plant
Like Component Stereo...
Loosely-Coupled Components Facilitate Upgrade and System Change
Cultural
Engineering
Mgmnt
IT
Infrastruct.
Mgmnt
IT
Adaptation
Mgmnt
Strategy
Devel'ment
Mgmnt
Service
Interaction
Mgmnt
Customer
Satisfaction
Mgmnt
Strategy
Delivery
Mgmnt
Leadership
Service
Talent
Activity:
Relationship
Mgmnt
Goal:
IT Adaptation
Management
Agile
Customer
Transparent
Faster,Systems
cheaper, better
implementation
of IT projects
Mgmnt
Compatible
Objectives:Process
Reduce cost/time due to mismatch of skills and technology
Devel'ment
Gain best-fit current technology solutions
Mgmnt
Eliminate need for scarce development-staff resources
Best
Production Provide
Mixon-time,
and
Trustworthy
on-budget,
on-spec
controlled
results
Value
Mastery
Mgmnt
Capacity
Mgmnt
Security
Evolution
Mgmnt
Reliable
Full Functionality
• Procedures
• Work Flow
• Rules
• Data Definitions
Full Functionality
• Software
• Hardware Spec
• Training
• Implementation
Full Functionality
• Software
• Hardware Spec
• Training
• Implementation
Full Functionality
• Software
• Hardware Spec
• Training
• Implementation
Develop
Business Rules
and Data Defs
Configure ERP
Applications
Configure
Database
Configure/Build
Bus Adaptors
Days
0-60
Days
0-60
Days
0-15
60 days
bsa
bsa
bsa
bsa
V1
……..V1
V2
……..V2
V3
……..V3
61-120
bsa V1……..
bsa V1
61-120
dba V2……..
dba V2
16-30
IfT V3……..
IfT V3
bsa
121-180
bsa ……..
bsa
V1
V1
121-180
dba ……..
dba
V2
V2
31-45
IfT ……..
IfT
V3
V3
Step A
Step B
Step C
Step D
B-Rules
Mgr
bsa
bsa
bsa
3-Phases
Template
Alpha
Beta
• Encapsulation of projects promotes plugable
• Implementation strategy “encapsulates” each team,
encapsulation of functional components.
making them solely/totally responsible for functionality.
bsa = business systems analyst, V1/V2/V3 = different vendors, dba = database administrator, IfT = IT infrastructure technician.
© 2001, Response Ability: The language, Structure, and Culture of the Agile Enterprise, Rick Dove, Wiley
Agile Implementation Process
Activity: IT Adaptation Management
• Process-management approach to IT development
Steering
Committee
Budget
Owner
Program
Manager
IT Project
Manager
IT Support
Resources
IT
Infrastructure
Operations
BSA
Outside Development
Resources
Develop
Architecture
and Design
Develop
Business Rules
and Specs
Manage
Outsourced
Development
Conduct
Testing and
User Training
ssa
bsa
Days
0-90
Days
60-90
ssa 120 days ssa
bsa 60 days bsa
Prog.
Mgr
Proj.
Mgr
ssa
ssa
ssa
ssa
ssa
bsa
bsa
91-180
bsa
bsa
bsa
……..V2
V2
bsa V2……..
bsa V2
181-270
bsa
V2
……..bsa
V2
COTS (ERP) Project Example
V3
……..V3
3-Phases
Template
150-180
IT V3……..
IT V3
Alpha
240-270
IT ……..IT
V3
V3
Beta
Steering
Committee
Budget
Owner
Program
Manager
IT Project
Manager
IT Support
Resources
IT
Infrastructure
Operations
BSA
Outside Development
Resources
Develop
Architecture
and Design
Develop
Business Rules
and Specs
Manage
Outsourced
Development
Conduct
Testing and
User Training
ssa
bsa
Days
0-90
Days
60-90
ssa 120 days ssa
bsa 60 days bsa
Prog.
Mgr
Proj.
Mgr
ssa
ssa
ssa
ssa
ssa
bsa
bsa
91-180
bsa
bsa
bsa
……..V2
V2
bsa V2……..
bsa V2
181-270
bsa
V2
……..bsa
V2
V3
……..V3
3-Phases
Template
150-180
IT V3……..
IT V3
Alpha
240-270
IT ……..IT
V3
V3
Beta
Cultural
Engineering
Mgmnt
Activity:
Talent Relationship Management
IT expertise
Service
Goal: IT Utilize outside
effectivelyCustomer
and seamlessly
Strategy
Infrastruct.
Satisfaction
Adaptation
Interaction
Delivery
Objectives:
Obtain
and
apply
specialty
expertise
rapidly
Mgmnt
Mgmnt
Mgmnt
Mgmnt
Mgmnt
Maximize productivity
Effective knowledge transfer and diffusion
Strategy
Leadership
Devel'ment
Employee-like
behavior
(loyalty,
trust, urgency, etc)
Service
Mgmnt
Talent
Relationship
Mgmnt
Agile
Systems
Mgmnt
Customer
Compatible
Transparent
Process
Devel'ment
Mgmnt
Production
Mastery
Mgmnt
Mix and
Capacity
Mgmnt
Best
Value
Trustworthy
Security
Evolution
Mgmnt
Reliable
Activity:
Security Evolution
Management
Cultural
Engineering
Goal:
Multi-tiered
Customer-Selectable Leadership Security
Mgmnt
Objectives: Assumption of entry (no faith in perimeter defenses)
Early intrusion and tamper detection
Partitioned vulnerability/intrusion containment
IT
Customer
IT
Service
Strategy
Effective
damage
control
and
rapid
recovery Delivery
Infrastruct.
Satisfaction
Adaptation
Interaction
Mgmnt
Mgmnt
Mgmnt Enlightened
Mgmnt
perimeter Mgmnt
and insider defense
shields
Anticipatory defenses and high agility
Strategy
Accommodate any customer
security requirement
Leadership
Devel'ment
Service
Mgmnt
Talent
Relationship
Mgmnt
Agile
Systems
Mgmnt
Customer
Compatible
Transparent
Process
Devel'ment
Mgmnt
Production
Mastery
Mgmnt
Mix and
Capacity
Mgmnt
Best
Value
Trustworthy
Security
Evolution
Mgmnt
Reliable
Activity: Security Evolution Management
Agile Security
Reactive Principles
Proactive Principles
Detection – Detect intrusion and
damage quickly
Vulnerability Anticipation – Identify/fix
vulnerabilities before exploitation,
sense indirect indicators of exploitation
Containment – Minimize potential Prudence – Correct vulnerabilities
damage scope
before exploitation
Mitigation – Minimize potential
damage magnitude
Transformation – Change randomly
the elements/nature of security system
Assessment – Understand what
has been damaged and how
Recovery – Repair damage
quickly
Threat/Risk Anticipation – Identify and
counter threats and risks before
exploitation
Migration – Continuous upgrade of
security strategy and components
Accountability (Reactive) –
Identify the perpetrators
forensically, after damage
Accountability (Proactive) – Identify
perpetrators with traps, glass houses,
disinformation, etc, before damage
© 2004, Rick Dove, paper-in-process: Agile Security: New Principles For A New Age
Cultural
Engineering
Mgmnt
Activity:
Agile Systems Management
Goal:
Systems designed to accommodate change
IT for creating/maintaining
Customer
IT Develop skills
Service
Objectives:
adaptable
systems
Strategy
Infrastruct.
Satisfaction
Adaptation
Interaction
Delivery
IT systems
Mgmnt
Mgmnt
Mgmnt Highly adaptable
Mgmnt
Mgmnt
Rapid production process creation
Readily employed external expertise
Strategy
Leadership
Devel'ment
Delivery
commitments
unaffected
Service by the unexpected
Mgmnt
Talent
Relationship
Mgmnt
Agile
Systems
Mgmnt
Customer
Compatible
Transparent
Process
Devel'ment
Mgmnt
Production
Mastery
Mgmnt
Mix and
Capacity
Mgmnt
Best
Value
Trustworthy
Security
Evolution
Mgmnt
Reliable
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
Lines show key
dependencies
Strategy comes
from activity
interaction
Cultural
Engineering
Mgmnt
IT
Infrastruct.
Mgmnt
IT
Adaptation
Mgmnt
Service
Interaction
Mgmnt
Strategy
Devel'ment
Mgmnt
Talent
Relationship
Mgmnt
Customer
Satisfaction
Mgmnt
Strategy
Delivery
Mgmnt
Leadership
Service
Agile
Systems
Mgmnt
Customer
Compatible
Transparent
Process
Devel'ment
Mgmnt
Production
Mastery
Mgmnt
Mix and
Capacity
Mgmnt
Security
Evolution
Mgmnt
- Strategic Themes
- Agile Activities – Initial
- Agile Activities - Later
Best
Value
Trustworthy
Reliable
Activity Web
Differentiation Strategy
Note: Relationships flow
downward in concept maps
unless an arrowhead is present.
Agility
Agile Strategy
Concepts
consists of
Knowledge
Management
Response
Ability
activities are
activities are
Service
Integration
Mgmnt
apps
are
Strategy
Delivery
Mgmnt
apps
are
Customer
Satisfaction
Mgmnt
apps
are
IT
Infrastructure
Mgmnt
apps
are
IT
Adaptation
Mgmnt
apps
are
Talent
Relationship
Mgmnt
apps
are
Adaptable
Systems
Mgmnt
apps
are
Security
Evolution
Mgmnt
apps
are
MyStaff
MyProjects
MyFab
MyBus &
MyETL
Culture &
Process
Outsource
Support
Culture &
Training
Principles &
New Vision
with objectives
defined by
Response
Situation
Analysis
Proactive/Reactive
Analysis Framework
achieved with
architecture that is
Reusable
Reconfigurable
Scalable
Response-Ability
Design Principles
Note: Relationships flow
downward in concept maps
unless an arrowhead is present.
Agility
Agile Strategy
Concepts
consists of
Knowledge
Management
Response
Ability
activities are
activities are
Service
Integration
Mgmnt
apps
are
Strategy
Delivery
Mgmnt
apps
are
Customer
Satisfaction
Mgmnt
apps
are
IT
Infrastructure
Mgmnt
apps
are
IT
Adaptation
Mgmnt
apps
are
Talent
Relationship
Mgmnt
apps
are
Adaptable
Systems
Mgmnt
apps
are
Security
Evolution
Mgmnt
apps
are
MyStaff
MyProjects
MyFab
MyBus &
MyETL
Culture &
Process
Outsource
Support
Culture &
Training
Principles &
New Vision
with objectives
defined by
with proactive
domains of
Modification
Migration
Improvement
Creation
Response
Situation
Analysis
achieved with
architecture that is
Reusable
Reconfigurable
Scalable
with reactive
domains of
Correction
Variation
Response-Ability
Design Principles
Expansion
Reconfiguration
AGILITY IS CHANGE PROFICIENCY
IN EIGHT CHANGE DOMAINS
Proactive Change:
– Creation
Build New Capability.
– Improvement
Continuous, Daily Incremental Upgrade.
– Migration
Transformation of Basic Concepts.
– Modification
Add/Delete Unique Capability.
Reactive Change:
– Correction
Failure Corrections and Alternatives.
– Variation
Real-Time Operating Change.
– Expansion
Increase/Decrease Existing Capability.
– Reconfiguration
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
...
Note: Relationships flow
downward in concept maps
unless an arrowhead is present.
Agility
Agile Strategy
Concepts
consists of
Knowledge
Management
Response
Ability
activities are
activities are
Service
Integration
Mgmnt
apps
are
Strategy
Delivery
Mgmnt
apps
are
Customer
Satisfaction
Mgmnt
apps
are
IT
Infrastructure
Mgmnt
apps
are
IT
Adaptation
Mgmnt
apps
are
Talent
Relationship
Mgmnt
apps
are
Adaptable
Systems
Mgmnt
apps
are
Security
Evolution
Mgmnt
apps
are
MyStaff
MyProjects
MyFab
MyBus &
MyETL
Culture &
Process
Outsource
Support
Culture &
Training
Principles &
New Vision
with objectives
defined by
with proactive
domains of
Modification
Migration
Improvement
Creation
Response
Situation
Analysis
achieved with
architecture that is
Reusable
Reconfigurable
Scalable
with reactive
domains of
Correction
Variation
Response-Ability
Design Principles
Expansion
Reconfiguration
Note: Relationships flow
downward in concept maps
unless an arrowhead is present.
Agility
Agile Strategy
Concepts
consists of
Knowledge
Management
Response
Ability
activities are
activities are
Service
Integration
Mgmnt
apps
are
Strategy
Delivery
Mgmnt
apps
are
Customer
Satisfaction
Mgmnt
apps
are
IT
Infrastructure
Mgmnt
apps
are
IT
Adaptation
Mgmnt
apps
are
Talent
Relationship
Mgmnt
apps
are
Adaptable
Systems
Mgmnt
apps
are
Security
Evolution
Mgmnt
apps
are
MyStaff
MyProjects
MyFab
MyBus &
MyETL
Culture &
Process
Outsource
Support
Culture &
Training
Principles &
New Vision
with objectives
defined by
with proactive
domains of
Modification
Migration
Improvement
Creation
Response
Situation
Analysis
achieved with
architecture that is
with reactive
domains of
Correction
Reusable
Reconfigurable
Scalable
Variation
Expansion
Reconfiguration
based on
principles of
Deferred
Commitment
Redundancy/
Diversity
Plug
Compatibility
Facilitated
Reuse
SelfContained
Units
Evolvable
Framework
Elastic
Capacity
Self
Organization Distributed
Ctrl & Info
Peer-Peer
Interaction
Business Systems
System
Stereo System of Components
A group of components
sharing a common interaction framework
Company of Divisions
and serving a common purpose.
Framework
Chain of Suppliers
A set of standards
constraining and enabling the interactions
of compatible system components.
Practice of Procedures
Component
A separable system sub-unit
with a self-contained capability/purpose/identity,
and capable of interaction with other components.
Cell of Workstations
© 2001, Response Ability: The language, Structure, and Culture of the Agile Enterprise, Rick Dove, Wiley
Team of People
Framework Examples
Chaordic1
Ordered
Lego
Lego
Lego
Model
Lego
Glue
Chaotic
Lego
Erector Set
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.
© 2001, Response Ability: The language, Structure, and Culture of the Agile Enterprise, Rick Dove, Wiley
Note: Relationships flow
downward in concept maps
unless an arrowhead is present.
Agility
Agile Strategy
Concepts
consists of
Knowledge
Management
Response
Ability
activities are
activities are
Service
Integration
Mgmnt
apps
are
Strategy
Delivery
Mgmnt
apps
are
Customer
Satisfaction
Mgmnt
apps
are
IT
Infrastructure
Mgmnt
apps
are
IT
Adaptation
Mgmnt
apps
are
Talent
Relationship
Mgmnt
apps
are
Adaptable
Systems
Mgmnt
apps
are
Security
Evolution
Mgmnt
apps
are
MyStaff
MyProjects
MyFab
MyBus &
MyETL
Culture &
Process
Outsource
Support
Culture &
Training
Principles &
New Vision
with objectives
defined by
with proactive
domains of
Modification
Migration
Improvement
Creation
Response
Situation
Analysis
achieved with
architecture that is
with reactive
domains of
Correction
Reusable
Reconfigurable
Scalable
Variation
Expansion
Reconfiguration
based on
principles of
Deferred
Commitment
Redundancy/
Diversity
Plug
Compatibility
Facilitated
Reuse
SelfContained
Units
Evolvable
Framework
Elastic
Capacity
Self
Organization Distributed
Ctrl & Info
Peer-Peer
Interaction
Note: Relationships flow
downward in concept maps
unless an arrowhead is present.
Agility
Agile Strategy
Concepts
consists of
Knowledge
Management
Response
Ability
activities are
Service
Strategy
Integration
Delivery
Mgmnt
Mgmnt
apps Cultural apps
are Engineering are
Mgmnt
apps
MyStaff are MyProjects
activities are
Customer
Satisfaction
Mgmnt
apps
are
IT
Infrastructure
Mgmnt
apps
are
IT
Adaptation
Mgmnt
apps
are
Talent
Relationship
Mgmnt
apps
are
Adaptable
Systems
Mgmnt
apps
are
Security
Evolution
Mgmnt
apps
are
MyFab
MyBus &
MyETL
Culture &
Process
Outsource
Support
Culture &
Training
Principles &
New Vision
with objectives
defined by
with proactive
domains of
Modification
Migration
Improvement
Creation
Response
Situation
Analysis
achieved with
architecture that is
with reactive
domains of
Correction
Reusable
Reconfigurable
Scalable
Variation
Expansion
Reconfiguration
based on
principles of
Deferred
Commitment
Redundancy/
Diversity
Plug
Compatibility
Facilitated
Reuse
SelfContained
Units
Evolvable
Framework
Elastic
Capacity
Self
Organization Distributed
Ctrl & Info
Peer-Peer
Interaction
Activity: Cultural Engineering Management
• Two dashboard-like applications channel cultural development
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.
Note: Relationships flow
downward in concept maps
unless an arrowhead is present.
Agility
Agile Strategy
Concepts
consists of
Knowledge
Management
Response
Ability
activities are
Service
Strategy
Integration
Delivery
Mgmnt
Mgmnt
apps Cultural apps
are Engineering are
Mgmnt
apps
MyStaff are MyProjects
activities are
Customer
Satisfaction
Mgmnt
apps
are
IT
Infrastructure
Mgmnt
apps
are
IT
Adaptation
Mgmnt
apps
are
Talent
Relationship
Mgmnt
apps
are
Adaptable
Systems
Mgmnt
apps
are
Security
Evolution
Mgmnt
apps
are
MyFab
MyBus &
MyETL
Culture &
Process
Outsource
Support
Culture &
Training
Principles &
New Vision
with objectives
defined by
with proactive
domains of
Modification
Migration
Improvement
Creation
Response
Situation
Analysis
achieved with
architecture that is
with reactive
domains of
Correction
Reusable
Reconfigurable
Scalable
Variation
Expansion
Reconfiguration
based on
principles of
Deferred
Commitment
Redundancy/
Diversity
Plug
Compatibility
Facilitated
Reuse
SelfContained
Units
Evolvable
Framework
Elastic
Capacity
Self
Organization Distributed
Ctrl & Info
Peer-Peer
Interaction
Note: Relationships flow
downward in concept maps
unless an arrowhead is present.
Agility
Agile Strategy
Concepts
consists of
Knowledge
Management
Response
Ability
activities are
Service
Strategy
Integration
Delivery
Mgmnt
Mgmnt
apps Cultural apps
are Engineering are
Mgmnt
apps
MyStaff are MyProjects
Realsearch
Collaborative
Learning
Modification
Migration
activities are
Customer
Satisfaction
Mgmnt
apps
are
IT
Infrastructure
Mgmnt
apps
are
IT
Adaptation
Mgmnt
apps
are
Talent
Relationship
Mgmnt
apps
are
Adaptable
Systems
Mgmnt
apps
are
Security
Evolution
Mgmnt
apps
are
MyFab
MyBus &
MyETL
Culture &
Process
Outsource
Support
Culture &
Training
Principles &
New Vision
with objectives
defined by
with proactive
domains of
Improvement
Creation
Response
Situation
Analysis
achieved with
architecture that is
with reactive
domains of
Correction
Reusable
Reconfigurable
Scalable
Variation
Expansion
Reconfiguration
based on
principles of
Deferred
Commitment
Redundancy/
Diversity
Plug
Compatibility
Facilitated
Reuse
SelfContained
Units
Evolvable
Framework
Elastic
Capacity
Self
Organization Distributed
Ctrl & Info
Peer-Peer
Interaction
Activity: Realsearch Collaborative Learning
Realsearch, a form of Action Learning
Real People
•
Knowledge Development
•
Knowledge Capture
•
Insight Development
•
Knowledge Transfer
Real Problems
Real Time
Issue-Focused
Principle-Based
Structured Workshops
Knowledge Packaged for Transfer
The Detail and Discipline
Available at Amazon.com $70+
Available here at $60
Chap
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
Successes
That 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 Observations
Value 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 Lessons
Value 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 Lessons
Strategic 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 Logic
Misperception
Plous: Behavioral Psychology of Decision Making
is caused by
Relationship flow is downward
unless arrowhead present.
Context
Dependence
Perception
Creation
Memory
Bias
determined by
determined by
Selective
Perception
Cognitive
Dissonance
Hindsight
Bias
forces
believing
Consistency
Past
Event
may use
Contrast
Effect
making
Comparison
with
Specific
Reference
Primacy
Effect
Recency
Effect
Halo
Effect
meaning
making
Last
Perception
Associated
Perceptions
meaning
First
Perception
will be
conform to
conforms to
Hopes
was
Expectations
Dominate
Perception
with
Self
Image
Predictable
Reconstruction
of Event
from
Partial
Memory
filled in
with
by changing
Old
Perceptions
Other
Information
Inferred
Details
drawn from
results in
Biased
Knowledge
© 2004, Rick Dove, Value Propositioning: Talent of Champions
Associated
Memories
Individual Decision Logic
Kaheman & Tvarsky: Prospect Theory
Individual
Decision
Behavior
reflects valuation as:
Relationship flow is downward
unless arrowhead present.
Non-Linear
with
Psychological
Bias
Relative
unless
shaped as
looks like
Ruiness
Outcome
"S" Curve
Value
Gain
Initial
Gains/Losses
Dominate
Losses
Loom
Larger
effect is
effect is
Diminishing
Incremental
Values
results in
results in
results in
results in
Over
Weighted
Low Prob
Under
Weighted
High Prob
Over
Weighted
Certainty
Under
Valued
Increases
to
Status
Quo
shaped by
Loss
Formulation
Dependent
Steeper
Negative
Values
Simplified
which
biases
Knowledge
Dependent
by
if DM has
Elimination
Hopes and
Expectations
if
Chunking
Probabilities
sets neutral
Not
point of
Significant
Perception as
Loss or Gain
High
Knowledge
Low
Knowledge
perceptions of
Low
High
High
Low
Probability Probability Probability Probability
Gain
Loss
Gain
Loss
results in
results in
Loss
Averse
Behavior
Risk
Seeking
Behavior
results in
Risk
Averse
Behavior
results in
Simplification
results in
Under
Weighted
Prob
results in
Over
Weighted
Prob
Probability (Prob) is the subjective likelihood, assumed by a Decision Maker, that a proposed benefit will deliver as promised.
© 2004, Rick Dove, Propositioning: Talent of Champions
Relationship flow is downward
unless arrowhead present.
Group Decision Logic
Group
Decision
Behavior
involves
Objective
Setting
Perception
Creation
includes
Value
Propositions
Attention
Focus
Simple
Patterns
Unresolved
Conflict
Performance
Targets
Objective
List
based on
based on
Past
Objectives
Past
Performance
Cyert & March: Behavioral Theory of the Firm
Simon: Administrative Behavior
Performance of
Others
interpreting
Training and
Experience
Amount of
Org Slack
Standard
Rules
Candidate
Solutions
based on
selected by
Search
Process
Past
Experience
determined by
Who's
Searching
Similarity
to Current
Solution
Group
Members
based on
from
Influenced by
Decision
Psychology
Choice
DM's
Objectives
© 2004, Rick Dove, Value Propositioning: Talent of Champions
avoids
uncertainty by
Past Org
Slack
Mitigating
Conflict
by
Acceptable
Level Rules
Sequential
Attention
Short Term Negotiated
View
Predictability
results in
results in
results in
results in
Lowest
Commonality
Postponing
Some
Objectives
Contract
Terms
"Satisficing"
Valuation
Problem
Perception
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
More
Enterprise 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