Click here to close now.

Welcome!

SDN Journal Authors: Liz McMillan, Lori MacVittie, Elizabeth White, Adam Vincent, Roger Strukhoff

Related Topics: Cloud Expo, Java, Linux, Big Data Journal, SDN Journal, @ThingsExpo

Cloud Expo: Article

Digital Transformation, Innovation, Optimization, and Disruption

Give people the right tools and get out of their way

Imagine for a moment you’re in the woods, trying to climb to the top of a nearby mountain – only you’ve lost your way, and you’re not sure where the mountain is. So you get the bright idea: simply walk uphill until you can’t walk uphill any more. At that point you’ll be at the top of the mountain, right?

The answer, of course, is perhaps, but probably not – and in any case, the strategy of always walking uphill is an unquestionably poor technique for finding your way to the top of a mountain, given the unpredictable nature of the terrain. After all, this strategy will simply take you to the top of a nearby hill. Only if you’re exceptionally lucky will that hill end up being the mountain you’re looking for.

This hill-climbing story illustrates the problem of local optima: any optimization strategy that focuses on improving the current situation may not lead to the best solution. So, how do you find the best solution? Well, it depends. Perhaps you can see the mountain from where you are, but perhaps not. Maybe you simply have to RTFM (read the frickin’ map), assuming you have one, and you can identify your current location. Or perhaps you should set off in a random direction for a random amount of time, see where you end up, and then try going uphill – repeating as often as necessary. Eventually you’re bound to hit upon the mountain, right? Bottom line: there is no straightforward answer.

The reason this Cortex is spending time climbing mountains is because the local optima problem affects most Digital Transformation initiatives, since the majority of such initiatives are centered on some kind of optimization activity: optimize the customer experience, or optimize the integration of Web and mobile, or optimize the organization’s use of social media, etc.

If you set a goal based upon starting where you are today and heading in a direction that will improve the current situation, you will likely reach a local optimum. But it probably won’t be the true optimal strategy, because, of course, some competitor will end up beating you to the top of that mountain – a mountain you may not have even known about until it’s too late.

Nevertheless, managers love optimization strategies, because they lead to positive business outcomes, and positive business outcomes lead to cash bonuses. And after all, labeling such optimizations as Digital Transformations is generally accurate, as you are using digital technologies to change your business somehow. But we’re still missing a big part of the transformation picture: disruption.

Disruptions shake up the status quo in some unpredictable direction, much like the random walk approach to finding the mountain peak. They can help you avoid the problem of local optima, but even so, there’s no telling if they will take you any closer to your goal. The challenge for Digital Transformation initiatives, therefore, is to leverage – or even introduce – disruptions in a way that will actually help you find that highest mountaintop.

But disruptions are inherently unpredictable and risky. External disruptions – sudden changes in the marketplace, geopolitical environment, available technology, etc. can occur at any time, and even internal disruptions, including reorganizations, changing management policies, new management, etc., can lead to unpredictable results. What’s a risk-adverse manager to do?

Intuition tells us that disruptive transformations are potentially much more likely to help us achieve our strategic goals than optimization transformations, even though they appear to be much higher risk. Do we stick to optimizations, comfortable in the business outcomes we can achieve, even though we may miss the mountaintop? Or do we place a bet on a disruptive transformation, even though it feels like a plunge into chaos? Perhaps we have no choice, as an external disruption may force us to take the riskier path. How do we manage our Digital Transformation then?

Enter Complex Systems Theory

Some background: Complex Adaptive Systems are self-organizing systems of systems that exhibit emergent properties, which are properties of the system as a whole that aren’t properties of the component subsystems. The central principle to all of Intellyx’s research is that the enterprise is a complex system consisting of people and technology subsystems, and business agility is an emergent property of the organization as complex system. The challenge of Agile Architecture, therefore, is influencing people and technology in such a way as to achieve business agility, rather than the chaotic behavior that large organizations typically exhibit.

Many natural phenomena can be explained in terms of emergent behavior, from the construction of beehives to the effects of DNA. The analogue in nature we’ll use in this Cortex is the power of natural selection that enables species to adapt to changing environments.

As complex systems consist of component systems and their relationships, we can think of such systems as networks. In the case of evolution, the components are individual creatures in an ecosystem; for us, the components are people and technology systems. Sometimes the connections (or edges, in network-speak) between components are tight, for example, within family groups, or loose, as they might be between different groups. In the case of an enterprise, tight connections between people include hierarchical reporting structures, behaviors that result from formal governance policies, etc., while loose connections would refer to interactions between people in different teams or in different parts of an organization. Similarly, tight connections between technology systems would include traditional integrations between systems, while loose connections indicate interactions between loosely coupled systems that are architected properly for inherent flexibility.

Shifting a system from high connectivity to low connectivity increases evolutionary change. Furthermore, disruptions also lead to increasing rates of evolutionary change, in particular when the system exhibits low connectivity. Such change leads to adaptation to the disruptions in the environment, so combining low connectivity with disruptions leads to periods of rapid innovation and adaptation. However, when a system retains its high connectivity during periods of disruption, that system is less likely to evolve, and thus won’t adapt to the change. Extinction, of course, is the eventual result.

The lessons here for enterprises seeking Digital Transformation are straightforward. In order to foster high levels of innovation that lead to adaptation to both internal and external disruption (in other words, behavior that gets you to the top of the mountain), you must foster an organization with low connectivity and furthermore, give them flexible, loosely coupled technology tools. In such environments, teams have the leeway to self-organize, and their innate creativity will foster innovations that will lead over time to the best solutions. And the role of management in this process? Give people the right tools and get out of their way.

The Adaptive Flexibility Matrix

For our Digital Transformation efforts to be successful at achieving our strategic goals (as opposed to optimizing for short-term business outcomes), we must embrace disruption, loosen the connections between people and take steps to make our technology loosely-coupled and flexible. Such transformation is a tall order to be sure, and many organizations seeking it drop the ball in one way or another, as shown in the chart below.

Adaptive Flexibility in Digital Transformation Initiatives

The chart above maps both technology and people in an organization from less flexible to more flexible. If neither are flexible, of course, then transformation is impossible, and you’re stuck in the lower left corner.

One mistake companies make as they try to get out of this corner is to focus on building or buying more flexible technology, without going through the more difficult cultural and organizational shifts that lead to more flexible people. Such companies move across the bottom of the chart from left to right, and end up with “tone deaf” digital efforts – yes, they may have mobile interfaces and social media, but perhaps their mobile technology isn’t responsive, their social media strategy puts off or angers customers, or they drop the ball on the human side of Digital Transformation in some other way.

Another common mistake is to undergo a digital initiative in the face of inflexible technology: moving from lower left to upper left on the chart. In these organizations the digital team leaves the recalcitrant tech behind, separating the digital efforts from traditional IT – which leads to dangerous pitfalls for any digital effort.

The reason why successful Digital Transformation initiatives are so deceptively difficult is that organizations must change along both axes at once in order to achieve the upper right hand corner, which has all the elements the complex system of the enterprise requires to build innovative, self-organizing teams that can both respond to disruption and leverage it for competitive advantage – in other words, achieve the business agility that drives all true transformation.

The Intellyx Take

If you understand how with the proper initial parameters, complex systems can lead to high levels of adaptive innovation in times of increased disruption, then the argument in this Cortex makes complete sense. However, it is deeply counterintuitive when you place it into the context of traditional management approaches.

Unfortunately, much of the Digital Transformation thought leadership available today comes from management consultants, who spend much of their time advising executives. “Digital maturity requires strong leadership to drive change!” trumpets MIT Sloan Review. “Successful [Digital Transformation] does not happen bottom up. It must be driven from the top!” exclaims Capgemini (exclamation points added, but boldface was all theirs). Such consultants have that perspective, of course, because they have to present a story executives are comfortable with.

In contrast, this Cortex should make traditionally-minded executives (namely, the ones who purchase management consulting) extraordinarily uncomfortable. Stop managing hierarchically. Instead, spin off autonomous, self-organizing teams. Don’t fear disruption. Instead, embrace and drive disruption. Change reporting structures. Move people around. Rethink governance. Revamp HR policies and procedures. Get rid of all the scar tissue in the organization that is getting in the way of innovation. Let people self-organize and let them figure out how to adapt to disruption on their own. The leadership we really need is likely to be quite different than the leadership the consultants are talking about.

To old guard executives, this approach sounds like a recipe for chaos. However, complex systems theory has a whole chapter on chaos as well, and the old guard has it backwards. In fact, chaos describes the status quo at most large enterprises – bureaucracy, empire building, the absence of a single source of truth, inflexible legacy technology, and rigid processes that stifle the best and brightest. Instead, this Agile Architecture approach leads to emergence – business agility in the face of any disruption, self-organization that leads to adaptation and drives innovation. Isn’t that the Digital Transformation you’re really looking for?

Image credit: ThenAndAgain

 

More Stories By Jason Bloomberg

Jason Bloomberg is the leading expert on architecting agility for the enterprise. As president of Intellyx, Mr. Bloomberg brings his years of thought leadership in the areas of Cloud Computing, Enterprise Architecture, and Service-Oriented Architecture to a global clientele of business executives, architects, software vendors, and Cloud service providers looking to achieve technology-enabled business agility across their organizations and for their customers. His latest book, The Agile Architecture Revolution (John Wiley & Sons, 2013), sets the stage for Mr. Bloomberg’s groundbreaking Agile Architecture vision.

Mr. Bloomberg is perhaps best known for his twelve years at ZapThink, where he created and delivered the Licensed ZapThink Architect (LZA) SOA course and associated credential, certifying over 1,700 professionals worldwide. He is one of the original Managing Partners of ZapThink LLC, the leading SOA advisory and analysis firm, which was acquired by Dovel Technologies in 2011. He now runs the successor to the LZA program, the Bloomberg Agile Architecture Course, around the world.

Mr. Bloomberg is a frequent conference speaker and prolific writer. He has published over 500 articles, spoken at over 300 conferences, Webinars, and other events, and has been quoted in the press over 1,400 times as the leading expert on agile approaches to architecture in the enterprise.

Mr. Bloomberg’s previous book, Service Orient or Be Doomed! How Service Orientation Will Change Your Business (John Wiley & Sons, 2006, coauthored with Ron Schmelzer), is recognized as the leading business book on Service Orientation. He also co-authored the books XML and Web Services Unleashed (SAMS Publishing, 2002), and Web Page Scripting Techniques (Hayden Books, 1996).

Prior to ZapThink, Mr. Bloomberg built a diverse background in eBusiness technology management and industry analysis, including serving as a senior analyst in IDC’s eBusiness Advisory group, as well as holding eBusiness management positions at USWeb/CKS (later marchFIRST) and WaveBend Solutions (now Hitachi Consulting).

@CloudExpo Stories
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborat...
WSM International is launching a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. This is the first independent services company to create a dedicated practice to help organizations looking to transition to the DevOps model. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of ...
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed...
Business as usual for IT is evolving into a “Make or Buy” decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud busi...
SYS-CON Events announced today that Aria Systems, the leading innovator in recurring revenue, has been named “Bronze Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Proven by the world’s most demanding enterprises, including AAA NCNU, Constant Contact, Falck, Hootsuite, Pitney Bowes, Telekom Denmark, and VMware, Aria helps enterprises grow their recurring revenue businesses. With Aria’s end-to-end active monetization platform, g...
Businesses are looking to empower employees and departments to do more, go faster, and streamline their processes. For all workers – but mobile workers especially – utilizing the cloud to reconnect documents and improve processes without destructing existing workflows can have a dramatic impact on productivity. In his session at 16th Cloud Expo, Mark Grilli, vice president of Acrobat Solutions marketing at Adobe Systems Incorporated, will outline new ways that the cloud is changing the way peo...
Sonus Networks introduced the Sonus WebRTC Services Solution, a virtualized Web Real-Time Communications (WebRTC) offer, purpose-built for the Cloud. The WebRTC Services Solution provides signaling from WebRTC-to-WebRTC applications and interworking from WebRTC-to-Session Initiation Protocol (SIP), delivering advanced real-time communications capabilities on mobile applications and on websites, which are accessible via a browser.
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
Are your applications getting in the way of your business strategy? It’s time to rethink your IT approach. In his session at 16th Cloud Expo, Madhukar Kumar, Vice President, Product Management at Liaison Technologies, will discuss a new data-centric approach to IT that allows your data, not applications, to inform business strategy. By moving away from an application-centric IT model where data integration and analysis are subservient to the constraints of applications, your organization will b...
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
WSM International has launched a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of the organization. According to a recent press release from Gartner, "By 2016, DevOps will evolve from a niche strategy employed by large cloud ...
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional S...
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...