Tag: business innovation

  • Technical Debt: When It Works and When It Doesn’t

    Technical Debt: When It Works and When It Doesn’t

    Every software team has probably faced technical debt—the accumulation of little development deficiencies that will require rework down the line. Just like financial debt, they accrue interest as they build up, in the form of difficult software modifications or challenges in adding new features. Time is the usual culprit; your development team has one timeframe for creation but your leadership team wants to bring the software to market faster. And when it comes to choosing between building a clean and polished piece of software or hitting that delivery date, you usually need to bow to pressures from on high. It’s at that point that your collaboration might go off track, with little pieces of incomplete code jumping into the mix.

    Without careful monitoring, technical debt will eventually slow down your development and deployment processes, degrade your product quality and limit your ability to innovate in a changing market. But is technical debt unilaterally bad? Not always. Sometimes it’s in service to a greater strategy. Let’s look at the differences.

    When is Debt Part of a Good Strategy?

    Pankaj Gupta, senior director, product marketing at Citrix, said when technical debt impedes an organization’s ability to function, that’s a clear sign they need to wipe out the debt and start with a clean slate.

    “But there are a few scenarios under which it makes sense to let debt accumulate,” he said. “For example, if the cost of addressing a technical debt is significantly higher now than in the future; if the debt is not impacting your immediate and short-term business needs or if you have an emergency release like a major security vulnerability fix.”

    Daniel Viveiros, chief technology officer at CI&T, recommended that teams keep the big picture in mind when making the right tradeoffs. “For me, it’s about putting the business first and understanding that constantly activating value is imperative for success,” he said. “Well-managed technical debt can be an effective tool to shorten the lead time. Deferring refactorings, modernization efforts and other common debts in order to prioritize deployments is a constant tradeoff the engineering teams deal with on a daily basis.”

    What are the Signs of Too Much Technical Debt?

    Gupta provided some warning signs for technical debt overload.  “You know you’re accumulating too much technical debt when the cost and/or time to fix the technical debt is higher than starting fresh,” he said. “And the time taken for each release and deployment is consistently increasing.”

    A less obvious result: a DevOps exodus. The development team will be the first to feel the impact of too much technical debt, such as having a harder time completing tasks and working long hours to fix frequent breakages. “Employees are leaving the company out of frustration from working on legacy systems, spending most of their time fixing ad-hoc issues, routinely missing and being on-call all the time,” Gupta said. What debt reaches that level, resignations begin to mount.

    Viveiros pointed out that compiled debt will impact system resilience: “Bugs are originated more often and the change failure rate goes up. Speed is perceived as risky instead of something beneficial to the digital delivery process.”

    The ultimate sign of too much debt, he said, is poor business performance and lost revenue. “If downtime equals lost opportunities, the technical debt will become a financial debt,” Viveiros said. “Too much technical debt may impact the perceived quality of the product. As a result, the product and brand’s image will suffer.”

    What’s the Best Way to Manage Debt?

    Failure to deal with technical debt means kicking it down the road to another developer to tackle—and no one wants to be that person. So what’s the best way to take control and pay it off? To start, approach it as a collaborative effort and implement these four practices.

    1. Identify the types of debt. Not all technical debt is created equal. Distinguish between the debt you accept in the moment as something to fix later on and the inadvertent debt you discover—and categorize it into code debt, design debt, build debt and other forms to identify origin patterns.
    2. Analyze and automate. Analyze the origins of your debt and look for ways to tighten workflows or automate certain tests and processes. By reducing common errors and hidden bugs, you can stop them from snowballing into technical debt.
    3. Develop new policies and standards. These should clarify when debt makes sense and when it causes unacceptable damage. For instance, an immediate release of a security patch would be deemed acceptable while errors that will eventually cause considerable downtime would not.
    4. Communicate the cost to IT and business leaders. When another hyper-speed deadline comes your way, make sure your leadership understands the risks to product quality and developer retention. With the price tag made clear, they’re more likely to change delivery dates or provide funding for additional developers.

    Like most out-of-control spending, harmful technical debt begins with poor decisions and a certain level of denial. By approaching decisions with greater clarity and foresight on both the Dev and Ops sides of the house, teams can give themselves more breathing room and the space to produce exceptional software.

  • How No-Code Will Transform DevOps

    How No-Code Will Transform DevOps

    In the years that low- and no-code development tools have been available, the movement has been slow to gather pace. Until recently, the vast majority of app and workflow development has remained firmly in the hands of professional coders.

    That is about to change—and fast. Gartner forecasts that the global low-code development technologies market is on track to reach $13.8 billion in 2021, an increase of nearly 23% over 2020. Other research suggests that 20% of all workers use no-code tools today, including 56% of coders. And 71% of those who use no-code tools within IT adopted them within the last year.

    No-code development is reaching a tipping point, and this trickle of adoption has turned into a torrent, driving more and more business demand daily.

    Drivers for the No-Code Movement

    The reason for this acceleration is simple: Digital transformation requires speed. If businesses are to digitize the full universe of processes across all departments, then they need tools that can be adopted quickly and with little ramp-up time.

    No-code tools are an ideal solution to this problem, and not just for a short-term fix. If the investment is seen solely as a short-term fix to immediate problems, it’s very likely that a company’s digital transformation efforts will continue to die on the vine. Digital transformation is not a “one-and-done” process; it’s only the start of a new business strategy based on continual innovation, where new apps and tools are built and rebuilt, time and again, to keep up with changing market dynamics and customer/employee requirements.

    The long-term trend of digital transformation has been accelerated by two shorter-term trends. First, obviously, is the COVID-19 pandemic. The social distancing measures used to control the virus meant that businesses had to create new apps and workflows (in hours or days) if they were to survive. No-code tools played an important role in helping businesses adapt at a breakneck pace, and gave them a taste of just what’s possible with intuitive app and workflow development.

    Second, a shortage of skilled developers. The population of 24 million global developers accounts for just 1% of the overall workforce, leaving businesses short-handed and looking for ways of empowering non-coders to take control of app development for themselves. As well as plugging skills gaps, no-code also meets demand from employees for more autonomy and more control over their operations, projects and workflows.

    Unlocking Innovation

    The net result of these drivers is that no-code is now a bona fide movement, and technology companies large and small are taking advantage of market innovations to transform what it means to build websites, software applications, workflows and mobile apps.

    The impact on enterprises will be profound. As Accenture highlighted in its 2021 Technology Vision, no-code is part of the broader democratization of IT, where the ability to create technology solutions to address business challenges is extended to everyone in the organization. This trend will unleash a wave of “grassroots innovation” that will help companies reinvent themselves in the years ahead. Those that fail to take this opportunity now may struggle to keep up with more inventive and agile competitors later.

    What No-Code Means for Developers

    For developers, this trend will undoubtedly lead to many questions. What is the role of the professionally trained coder in a no-code world? Will DevOps become extinct as “citizen developers” take over? Far from causing detrimental effects, no-code and low-code will likely prove to be hugely beneficial overall. Here are four key reasons why:

    Reduced workload/stress. With no-code-based roles, organizations are able to expand their technical capabilities without needing to hire more developers or coders. What’s more, by spreading basic app and workload development tasks across the organization, developers’ time is freed up. For teams that are already understaffed and under pressure, this can make a huge difference in the workplace experience and enable developers to spend more time focused on delivering high-quality software.

    A more strategic role in the enterprise. With tactical software development carried out within business units, developers can spend more of their time focused on the ‘next big thing,’ whether that’s mixed reality, quantum computing or AI. Developers and the wider IT team can act as “futurologists”, assessing new tools for the best fit within the business and guiding purchasing decisions to ensure the best possible outcomes.

    Accelerated innovation. For more complex software development that requires coding expertise, developers can leverage the speed of no-code to spin up proofs-of-concept and test them before investing time and resources on full-scale development. In fact, research suggests that many developers are already taking this approach, with 38% stating that they use no-code for prototyping a new product.

    New roles and opportunities. No-code will have a deep and broad impact on the enterprise, changing how work is done and creating new roles in the process. Many of these roles will provide new career paths and opportunities for developers, such as no-code consulting (helping businesses find the optimum no-code framework and tools for their needs) and roles that revolve around optimizing processes, building solutions and discovering ways to easily automate and streamline the day-to-day work within their organizations.

    DevOps teams, long the drivers of digital transformation, are now finally feeling the effects of those efforts. A new world of work is emerging where everyone is a technologist; using intuitive tools to rapidly build solutions to their business needs as they arise. This approach will free developers from their traditional role as gatekeepers of innovation, allowing them to focus on strategic technology decisions and channeling their specialist skills to areas where they will make the most impact.

    The rise of no-code is good news for everyone. It accelerates digital transformation and unlocks the innovation potential of all employees. And it’s great for developers, too; making their work more interesting, less stressful and with new career paths and opportunities for development. No-code can provide a growth driver to all enterprises, and arm early adopters with a significant competitive advantage.

  • Successful Digital Transformation: It’s About Strategy

    Successful Digital Transformation: It’s About Strategy

    While having a mature digital enterprise helped organizations to better survive – and even thrive, in some cases – the pandemic, that’s not the primary reason why organizations will continue to invest in their digital transformation efforts. According to new research from consultancy Deloitte, businesses will continue to invest in their digital transformation capabilities to innovate rapidly and to survive competitive battles in the marketplace.

    Deloitte’s survey found that enterprises believe such ongoing investments in digital transformation will continue to deliver benefits, such as enabling them to innovate more quickly, modernize their business-technology systems and become more resilient. The pandemic proved an unfortunate test of such business resilience, with more than 75% of respondents saying that their digital capabilities helped them better meet the business challenges posed by the pandemic.

    The survey also found that enterprises plan to increase their digital investments and to do so considerably. Respondents indicate, on average, planned investment of nearly $13 million on digital transformation in the next year — a 15% increase from the prior year’s spend.

    These findings mirror those of another survey released this week from software provider Rimini Street, which found digital transformation is one of the top five priorities among CFOs, and that 71% of CFOs believe that such investments are essential to the success of their businesses. Further, 77% of CFOs said they would work with their CIOs to help find funding for digital transformation efforts — if there was a strong ROI demonstrated.

    Perhaps most noteworthy from the Deloitte survey is that, while digital platforms and digital transformation efforts are essential, they are not a competitive advantage by themselves. It’s what businesses do with those platforms that matter.

    Additionally, most Deloitte respondents see plenty of competitive upheavals ahead: most respondents feel it is most likely that their main competitors will be a startup or current digital native competitor in as little as five years. Less than one-third of respondents believe that their current competitors will remain competitors five years from now.

    To win funding for digital transformation and innovation initiatives, the Rimini Street survey suggests CIOs will most likely succeed by not pushing innovation for its own sake, but by seeking out initiatives that will generate a strong return. In that survey, CFOs made it clear that optimizing existing technology, revenue-generating endeavors and improving processes and staff efficiencies were their top three priorities.

    In that race to continuously optimize business technology systems, many CIOs in Deloitte’s survey also see a downside. More than half of those questioned said that the rapid pace of change is harmful to both their organization and their customers, and 75% said the rapid change had created significant upheaval in business leadership or their board during the past 24 months.

    Whether enterprise business and technology leaders want a world with such rapid change doesn’t matter: it is the world in which they must compete. And those enterprises that succeed in the next few years will be those that not only make the right investments in digital transformation, but those that figure out the best ways to innovate and connect with customers by leveraging those investments.

  • Using DevOps to Be an Innovation Champion

    Using DevOps to Be an Innovation Champion

    Innovation, which increasingly is cited as the competitive advantage businesses need to meet their digital challenges, is widely misunderstood; it’s mistakenly reduced to the sophisticated features of a technology or a service.

    As a competitive matter, innovation is more than that; it’s primarily the process of translating ideas or inventions into high-value technology features or added-value services. In other words, to be called innovation, a technology or a service must satisfy a specific need and create value for customers.

    DevOps is very often seen as the perfect means to make an IT organization an innovation champion, it’s true. Yet, many CIOs and their solution vendors and consultants have failed to achieve that goal because they’ve oversimplified the process. DevOps is part of the process, not the process itself. DevOps isn’t the end but the means.

    In this article, I share two fantastic concepts—Innovation Virtuous Circle (IVC) and Value Stream—we leverage at ITaaSNow to enable DevOps and transform in a record time IT organizations into innovation champions.

    Define Your Strategy with the Innovation Virtuous Circle

    Making innovation your organization’s main competitive advantage isn’t as simplistic as investing in the most sophisticated technologies; it starts with defining your strategy, continues with implementing it throughout your IT organization’s value stream, and ends up with getting it adopted across your business.

    Improvisation and organizational transformation aren’t good friends. Rely on proven frameworks that safely guide the effort step by step; it’s the purpose of the IVC—it facilitates and accelerates the innovation strategy definition effort:

    The Innovation Virtuous Circle (IVC)

    The principle underneath the IVC is the notion that keeping customers loyal through innovation guarantees continuous revenue. The idea is, the more innovation, the more loyal customers and the more revenue.

    Put together your business and IT stakeholders to discuss the means by which customers will be kept loyal to ensure continuous revenue. Follow the steps suggested by the IVC:

    1. Clarify the agile processes and practices, the tools, skills and partners by which customer data will be captured and tracked for analytics purposes.
    2. Identify the agile analytics processes and practices, the tools, people, skills and partners that’ll help to spot innovative ideas, solutions and technologies.
    3. Clarify the agile processes and practices, the tools, skills and partners needed to ensure high frequency, high quality and speedy innovation delivery.
    4. Identify the agile processes and practices, the tools, people, skills and partners that’ll help to monitor customer satisfaction and improve customer experience.

    What you get out of this step is a comprehensive strategy including the targeted customers to keep loyal, the estimated expected revenue along with the organizational capability to achieve them.

    Reconfigure Your IT Value Stream with DevOps

    Once your innovation strategy is defined, the next step is to use the value stream framework to deploy it throughout your IT organization.

    The value stream represents the added-value interactions, people and skills, processes and practices and tools mobilized throughout your IT organization to deliver innovation:

    The Agile IT Value Stream

    It conceptually structures the IT organization’s value stream into a four-stage agile process. Each stage is associated with a specific goal and mobilizes specific elements of your innovation strategy.

    Again, put together your business and IT stakeholders to address the following:

    1. For Plan & Measure, discuss your future governance’s structure, members and roles, agenda along with the tools and infrastructure supporting your analytics-based innovations screening and prioritization and portfolio management processes.
    2. About Develop & Test, get a consensus on the staff to assign, the agile methodology along with the continuous testing and integration infrastructure that will support your innovation development processes.
    3. Regarding Release & Deploy, discuss the staff to assign, your release management and launching processes along with the continuous deployment infrastructure needed to support them.
    4. As for Monitor & Improve, discuss the staff to assign, your service continuous improvement processes, along with the analytics technologies intended to support them.

    What you get is a comprehensive and documented blueprint of your IT organization’s value stream transformed to DevOps. Use it as a baseline to hire the solution vendor and consulting firm that’ll concretely reconfigure your IT operational model to innovation.

     Wrapping up

    Using the concepts of IVC, Value Stream, and DevOps to establish IT operational models that boost innovation is a transformation approach we’ve been using to make businesses innovation champions.

    All of the companies that replicated the organizational transformation approach described in this article are:

    • Rolling out per year more than 20 services and products qualified as innovations
    • Either doubling or tripling their revenue
    • Keeping loyal 98 percent of their customers

    That’s the kind of contributions and impacts your business unit leaders expect from you as the CIO and your IT department.

    — Philippe Abdoulaye

  • Changing the Culture of Metrics Analysis

    Changing the Culture of Metrics Analysis

    You could say the development and operations teams gave birth to the idea of DevOps, as it is believed the chief benefits are garnered in those two functional disciplines. Because of this, metrics nearly always are conducted from the points of view of cost reduction, speed and efficiency. This makes perfect sense when business treats IT (and IT sees itself) as a service- or cost-based organization. But what if DevOps has a few more characteristics that could actually change that culture? What if, for the first time, DevOps could enable IT to become a real partner with the business organization it serves?

    To make this happen, business and IT must begin to share attainable goals. Imagine the impact of a highly functioning, enterprise-class DevOps service within IT; upon the time to market of products and services the business is looking to launch. A proven, consistent ability of IT to deliver on time or ahead of schedule (i.e., reliability) then begins to change the dynamics of what marketing proposes and delivers. Time then becomes a valid metric to consider when looking at customer adoption rates. DevOps usually does not directly impact initial market demand, but the impact of delivering new services or features months or years ahead of previous projections can dramatically impact time to market. For example, if your business is able to change its billing model or billing methods six months to a year ahead of every one of your competitors, what impact might that have on market adoption? At that point DevOps becomes a key business differentiator, until the rest of the universe has it.

    Consider an additional impact of a highly functioning DevOps service on feature delivery or the feature road maps themselves. The implementation of DevOps inherently delivers smaller units of change on a higher frequency, reducing risk and allowing iteration and alteration of future plans based on the real-time feedback of change success. Marketing focus groups may provide an original road map, but the impact of DevOps can be integrated back into those same focus groups. Instead of imagining what might be possible, DevOps allows delivery of what is possible to see, feel, touch and prompt further imagination. The net impact is an increase to the pace and depth of innovation itself. You know what your customers really want, and you can give it to them quicker. What kind of impact does that have on the reputation of your business if it becomes a market leader because of this? Or what happens when a large organization is then able to deliver with the speed, agility and flexibility of a small firm?

    Cost Reduction vs. Revenue Generation

    Now consider the value of cost-reduction metrics compared with revenue-generation metrics. It is easy enough to determine that the pre-DevOps delivery cycle might have been 12 weeks per feature as an example, or that each build took six hours to complete and now post-DevOps takes only 12 minutes to run. Metrics like these will begin to show an increase in productivity by existing development staff—or, maintaining the same feature delivery rate, a reduction in the number of personnel needed to achieve them. Similarly, it is easy to show a reduced number of trouble tickets post-DevOps, and a concurrent reduction in the average time to resolve each ticket. DevOps then has enabled the CIO to continue to take arbitrary budget cuts demanded by the business each year. This is not partnership—over time this is a recipe for the reduction, pace and quality of innovation (the smartest people leave first during layoffs; they don’t need to stay).

    However, even significant cost-reduction metrics pale in comparison to revenue-generation metrics. As an alternative, imagine what the net growth in customers of a given product might be, over a six-month period of time, because a desired feature set was delivered early? And what if it is two to three years before your competitors can implement the same high-functioning DevOps services you already have in place today? If a business makes $2 per-widget profit and captures 20 percent additional market share over six months, equating to “x” million new customers … well, you begin to get the idea. All of the sudden IT is no longer viewed as a cost center by business; it is viewed as a revenue-enabler. The immediate business response is, “If I allocated more budget into the types of staff facilitating DevOps services (running the gamut from coding to operations to marketing), could I gain even faster delivery rates or deeper feature sets or more market share by pioneering what has never been pioneered?”

    The two main reasons this realization hardly ever occurs in business today are that 1.) IT has failed at delivering on promises so often it has trained the business to believe it “cannot” deliver on time or on budget; and 2.) few businesses conduct accurate time-to-market metrics measuring the delta of what additional “time” does to the equation, largely because they never had to. DevOps provides the catalyst to begin to re-examine both of these phenomenon.

    But it goes deeper than that. Changing the culture of innovation, in which I am eager to test new ideas faster, means I need more ideas all the time. The competitive advantage our nation, our businesses and our careers have always benefited from is our ability to create and innovate. Other nations around the world, or other organizations your company competes with, may be able to do repetitive tasks faster or more efficiently. But rarely do worker-drones create or produce a wealth of ideas. But if we begin to focus on the long-term impact of fostering innovation in our own country, and in our companies, we will remain perpetually out front. The goal of DevOps is not merely efficiency, it is also to spark the imagination. When our focus and our metrics reflect this, we all win.

    If you would like to continue a conversation on how to create and implement a highly functioning enterprise class DevOps service, feel free to contact me.