Why IT does not matter in Exponential Organizations
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Transcript of Why IT does not matter in Exponential Organizations
Why IT does not matter in Exponential Organizations*
Srini Koushik Chief Technology Officer
© 2016 - Magellan Health * Based on Exponential Organizations by Salim Ismail 1
The world is changing rapidly around us
© 2016 - Magellan Health 2
Sharing Economy
Capital looking for investments
Rising costs of Healthcare
Volatility in Asian Economies
LAN – WAN - PAN
Bluetooth and BLE
LTE & 5G
Loons, Drones, Satellites
Longevity
Capital looking for investments
Digital Natives & immigrants
Eco-friendly and Green
Connected Home & Mobility
Quantified Self
3-D Printing
Natural Language Processing
Smart Everything
Miniaturization
Quantum Computing
Moore’s Law
The velocity and intensity of these shifts is increasing
© 2016 - Magellan Health
1940 1950 1990 2001 2009 2016
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Causing structural and seismic shifts in the global economy
• Only 55 of Fortune 500 companies from 1955 are on the list in 2015
• The average lifespan of an Fortune 500 company is 15 years (down from 67 years)
• At this rate in the next 10 years 200 of the companies in the current Fortune 500 will no longer be on that list
© 2016 - Magellan Health 4
The Exponential Organization (ExO)
An Exponential Organization is one whose output (or impact) is disproportionally (10x) larger than its peer
because of the use of innovative organizational techniques that leverage exponential technologies
© 2016 - Magellan Health 5
© 2016 - Magellan Health
ExOs are built around a Massive Transformative Purpose (MTP)
The Massive Transformative Purpose (MTP) is the higher, aspirational purpose of the organization, capturing the hearts and minds of those both inside and (especially)
outside of the organization.
Think Different
We organize the world’s information
Leading humanity to healthy, vibrant lives
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© 2016 - Magellan Health
ExO’s are enabled by key capabilities
DASHBOARDS Manage ecosystem effectiveness
EXPERIMENTATION Quick, effective and externally focused
AUTONOMY Empower employees and partners
SOCIAL Real-time, Bidirectional, Informal Networks
and Social Technologies
INTERFACES Open and Loosely Coupled
STAFF ON DEMAND Hire key skills, rent others based on demand
CROWDSOURCING Engage the external ecosystem in core business processes
ALGORITHMS Unique, differentiated, insight driven algorithms
LEVERAGED ASSETS Leverage assets, use scale to drive costs based on demand and usage
ENGAGEMENT Build capabilities by engaging and Integrating across the ecosystem
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Ability to create and own new content
Engage community by inviting them to Binge
Watch
Netflix Challenge on Kaggle
Run multiple experiments and A/B
tests to customize experiments
Algorithms that track viewing habits and increases viewership
Multi-sided platform that makes watching content easy
Internal dashboards that help Netflix manage content & infrastructure to deliver optimum performance.
Netflix aims to be the World’s entertainment distribution platform
Cloud based infrastructure and
content delivery
© 2016 - Magellan Health
Staff on Demand
Community &
Crowd Algorithms Leveraged
Assets Engaging Platform Interfaces Experiment Dashboards Autonomy Social
Use of social technologies to
engage employees in ideas
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Focus of ExOs
Customer Centric
Build the Ecosystem
Valuable Experiences
Leveraged Assets and Resources
ExO
Appleized Engaged Context sensitive Cloud & Crowd
© 2016 - Magellan Health
© 2016 - Magellan Health 10
How do traditional IT organizations fit into ExOs?
Relationship Management
Specifications
Solutions Development
Service Support
Staffing and Supplier Management
IT Financial Management
Security and Risk Management
Enterprise Architecture
Cor
e A
ctiv
ities
Su
ppor
t A
ctiv
ities
Va
lue
Add
ed
Act
iviti
es IT Portfolio Management
IT Support – Facilities etc.
1. Standardization
2. Centralized Control
3. Specialized Skills
4. Agile Methods
5. Automation
6. Efficiency
7. Outsourcing
© 2016 - Magellan Health
This model was designed for “Turn of Century” problems
Today’s IT Playbook
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Exponential IT represents a significant departure from today’s IT
© 2016 - Magellan Health
Consumer
Products
Closed Ecosystem
Standardization
Application Centric
Platforms
Co-creator
Open Ecosystem
Mass Customization
Data Centric
Full-stack skills Specialized Skills
Cloud & Smart Sourcing Own assets & Outsource
1
2
3
4
5
6
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Exponential IT needs a new set of Plays
Adapted from Lean Startup created by Eric Ries
© 2016 - Magellan Health
BUILD
MEASURE
LEARN
1. 2P HIT & Smart Creatives
2. A portfolio of Experiences
3. Lightweight Integration
4. Agile Insights
5. Build @ Web Scale
6. Platform Thinking
7. Active Ecosystem Engagement
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Ideas
Pla@orms Data
Smart Creatives – People & System
Excerpts from http://www.slideshare.net/ericschmidt/how-google-works-final-1
APTITUDE: Desire to perform
ATTITUDE: The Ability to Learn
ADAPTIVE: Willingness to Change
© 2016 - Magellan Health
DRIVE: What makes them tick?
LEAD: How they Lead
LEARN: How they learn
TEAM SIZE: 2 Pizza Teams
TEAM MAKEUP:
Horizontally Integrated
AUTONOMY: How they Operate
Talent Leaders Team
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BUSINESS (VIABILITY)
PEOPLE (DESIRABILITY)
TECHNOLOGY (FEASIBILITY)
© 2016 - Magellan Health
Importance
Freq
uenc
y
Low High
Low
H
igh
Experience Design
+ +
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Secure – Simple – Context Aware
Trad
itiao
nl
New
Data Lake
ODS & Sources ETL EDW
Derived (Transformed)
Discovery Sandbox EDW
Streaming
Unstructured Data
Various Sources
Reporting, BI Extracts
Data Science Data Discovery Reporting, BI,
Extracts
Agile Insights – New supply chain of data
© 2016 - Magellan Health 16
Lightweight Integration
Stateless Micro Services Secure Cloud based APIs
Scalable and Extensible
Cohesive Services
Loosely Coupled
Data at Rest
Data in Motion
Data @ Rest Orchestration & Compensation
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Secure Web Scale Computing
Business Architecture
Cloud Native Architecture
Continuous Delivery
DevOps Engineered Security & Defense
Cloud Native ITSD&M
© 2016 - Magellan Health 18
Platform Thinking
Producer ecosystem
SaaS
Enterprise Customers
Service Providers
MULTI-SIDED
PLATFORM
Deliver signature experiences Value is derived from the ecosystem - Network Effect Business model delivers value to all participants – Win-Win Open and Interoperable – Easy to connect to Consumed as a Service Value derived from content & network
Consumer ecosystem
Legacy Systems
© 2016 - Magellan Health 19
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Active Engagement
© 2016 - Magellan Health
Technology Platform Collaboration tools Social Media User ratings Multi-modal access Easy to access and use
Digital Channels
Partner Ecosystem
Metrics & Learning
Customer Ecosystem
Social Media
IT
Consumers as Co-creators Customization of features Decide what to consume Information on usage Transparency on charges Engagement in platform design
Producers of Content APIs and interfaces Service Levels and Compensation Branding IP Sharing Revenue and sharing model
Growth Plan & Metrics Engagement metrics Stage gate measures A-B Testing Scan competitive models Alternative plans for Pivot
1
2 3
4
• Every industry will be transformed by ExOs
• Smart Creatives and Adaptive Leaders power ExOs • ExOs focus on delivering a secure, seamless, context aware and
differentiated experiences
• ExOs view technology and data as a competitive differentiator
• Traditional IT will need to be revamped to support an ExO
Conclusion
© 2016 - Magellan Health 21
Srini Koushik Srini Koushik is Chief Technology Officer of Magellan Health. Previously he was President and CEO of NTT Innovation Institute, a Silicon Valley-based startup focused on building platforms for today’s Digital Businesses . He is also the founder and CEO of Right Brain Systems LLC. Srini has 27 years of experience as Programmer, Architect, CTO, CIO and P&L owner at Fortune 100 Companies including IBM, HP and Nationwide. Srini is an Open Group Distinguished Certified Architecture profession leader. He has published several articles, holds three patents, and co-authored a best-selling book, Patterns for e-business, in 2001. He was elected to the IBM Academy of Technology, and was named an IBM Distinguished Engineer in 1996. He was also named an Elite 8 CIO by Insurance and Technology, a Top 25 CIO by Infoworld, a Top 10 All-Star in the financial services industry by TechDecisions, and a Computerworld Premier 100 Technology Leader in 2014. Srini holds a bachelor’s degree in physics from the University of Madras, a master’s degree in computer science from the University of Bombay, a master’s degree in business administration from Ohio State University, and has completed executive education courses from both the MIT Sloan School of Management and Stanford University. Srini enjoys skydiving, hang gliding and other extreme sports. He is currently working on learning to play the guitar. He enjoys traveling and has been to 55 countries and wants to visit the other 140 countries in his lifetime.
© 2016 - Magellan Health 22