Wardley Maps

Loonshots

ianwaring Future Trends, Management, Wardley Maps
Loonshots by Safi Bahcall

I’m reading too many books on innovation in large organisations that could be drastically shortened and still convey useful lessons. This book covers what appears to be a simple lesson, oft repeated.

The lesson is that large businesses often let large (current) business lines dominate the allocation of resources. This is often to the detriment of small, more radical approaches to serve customers in new ways and with potential much larger future growth potential. And if that weren’t enough, those large and powerful business lines act as political anti-bodies to any potential threat to their internal franchise.

So you have to leadership able to keep them separate, generously funded and away from any internal political interference. Let the emergent group put a pirate flag on a mast atop a separate building, and not let on what they are doing – even to the rest of the organisation.

To many, that small emergent growth potential team is a typical startup. Probably the best book that explains behaviours and how Venture Capital places bets towards breeding disruptive growth is “Zero to One” by Peter Thiel. I feel I learnt more about driving disruptive businesses in that book over almost all others i’ve read.

Another approach is as described in ‘Zone to Win” by Geoffrey Moore. That centres on formalising the division of funding streams to products or operating divisions to support their expected size or operating mechanics in future time horizons – if indeed these are predictable.

Loonshots is largely about leaving “wild duck” ideas alone and cites examples where doing this (and overcoming several large setbacks on the way) has led to companies disrupting previous industry leaders. So, largely familiar stories with the usual examples.

However, for a large organisation, one example of simple genius really sticks out in my mind: Honda. The core Agile based R&D is in one operating company, and the six-sigma Manufacturing line in another. That is probably the ultimate and most effective piece of operational and management simplicity out there.

Simple Mistakes – User Experience 101 failure

ianwaring Amazon, Enterprise IT, Future Trends, Health, Management, Medical, Shares, Wardley Maps 1 Comment

Things have been very busy at work recently, but I surfaced on Saturday to take my wife into Reading to collect goods she’d ordered from Boots earlier in the week. Just replenishing a range of items so she didn’t start running out from Monday. She’d been advised to pick everything up anytime after midday from their town centre store.

You’ve probably guessed it – no sign of the order. She was just pointed at the customer service phone number on her copy of the order sheet, and asked to call them. Which she duly did outside, only to find that hundreds of customers who’d paid for their orders in the week with Mastercard were similarly in the same position. So she asked if she could cancel the order and at least buy the same things in the store while she was in town. Answer: the operator wasn’t sure if she was even allowed to cancel, but would ask and email back. That email never arrived; the only one that did a day later confirmed her items had now dispatched for the store but still no indication of arrival date – and the next 15 mile round trip needed.

I’m reminded of two things learnt from both Amazon and in producing strategy maps using the Wardley Mapping technique. The common thing when you’re involved in any product, project or business process design is that you start with the customer and optimise for their most delightful experience – then work back from there. And you only start trying to be unique if it’s directly visible to that user experience in some tangible way. Both facets together are still an incredibly important gap that I see folks miss all the time (I see that in projects at work, but that’s another story).

During the week, it was announced Amazon had purchased PillPack – a small new England company – and it sent the shares of all the big Pharmacy Chains in the USA tumbling (in market cap terms, around $13 Billion in a day). So, what do they do? Simple:

If you have a regular prescription, they put all the tablets you’re supposed to consume in a time/date labelled packet. These are printed and filled in a roll, output in chronological order – then loaded into a dispenser you receive in the mail (overnight if needed urgently):Simple! And then a set of services where they maintain your repeat needs with your doctor directly, so all the grunt work in ensuring you get your meds is done for you. They even allow you to set your holiday location if you’re away and ship there if needed to ensure you never have an unwanted gap.

Compare that to the run around most folks are exposed to with regular prescriptions and in understanding what to take and when. Instead you have a friendly, subscription based business serving your needs. (For some reason, Wall Street currently obsess about subscription based businesses – they value their stock not on Price to Earnings ratios but on Price to Sales Revenue multiples instead – and Amazon are in the thick of that too).

Personal experience here with Amazon (we’re Prime members) is that there is any problem with an order and we ask to cancel, it just happens and money immediately reimbursed. You can see why all those retail pharmacy shares took a hit with the PillPack buyout announcement by Amazon; you can see the end user experience is about to get radically better, and probably first in a number of Amazon initiatives in the Health Industry that will follow a path of relentless, customer obsessed, focus. 

Amazon already have a joint venture with Goldman Sachs and Berkshire Hathaway to work out how to provide cost effective health benefits to their combined employee populations. Something they’ll no doubt open outside the company too in time. That’s when life for CVS, Walgreens, Target and so forth (plus Boots in the UK) will get very interesting. Bring it on!

IT Trends into 2018 – or the continued delusions of Ian Waring

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William Tell the Penguin

I’m conflicted. CIO Magazine published a list of “12 technologies that will disrupt business in 2018”, which promptly received Twitter accolades from folks I greatly respect: Leading Edge Forum, DXC Technology and indeed Simon Wardley. Having looked at it, I thought it had more than it’s fair share of muddled thinking (and they listed 13 items!). Am I alone in this? Original here. Taking the list items in turn:

Smart Health Tech (as evidenced by the joint venture involving Amazon, Berkshire Hathaway and JP Morgan Chase). I think this is big, but not for the “corporate wellness programs using remote patient monitoring” reason cited. That is a small part of it.

Between the three you have a large base of employees in a country without a single payer healthcare system, mired with business model inefficiencies. Getting an operationally efficient pilot with reasonable scale using internal users in the JV companies running, and then letting outsiders (even competitors) use the result, is meat and drink to Amazon. Not least as they always start with the ultimate consumer (not rent seeking insurance or pharma suppliers), and work back from there.

It’s always telling that if anyone were to try anti-trust actions on them, it’s difficult to envision a corrective action that Amazon aren’t already doing to themselves already. This program is real fox in the hen house territory; that’s why on announcement of the joint venture, leading insurance and pharmaceutical shares took quite a bath. The opportunity to use remote patient monitoring, using wearable sensors, is the next piece of icing on top of the likely efficient base, but very secondary at the start.

Video, video conferencing and VR. Their description cites the magic word “Agile” and appears to focus on using video to connect geographically dispersed software development teams. To me, this feels like one of those situations you can quickly distill down to “great technology, what can we use this for?”. Conferencing – even voice – yes. Shared KanBan flows (Trello), shared BaseCamp views, communal use of GitHub, all yes. Agile? That’s really where you’re doing fast iterations of custom code alongside the end user, way over to the left of a Wardley Map; six sigma, doggedly industrialising a process, over to the right. Video or VR is a strange bedfellow in the environment described.

Chatbots. If you survey vendors, and separately survey the likely target users of the technology, you get wildly different appetites. Vendors see a relentless march to interactions being dominated by BOT interfaces. Consumers, given a choice, always prefer not having to interact in the first place, and only where the need exists, to engage with a human. Interacting with a BOT is something largely avoided unless it is the only way to get immediate (or out of hours) assistance.

Where the user finds themselves in front of a ChatBot UI, they tend to prefer an analogue of a human talking them, preferably appearing to be of a similar age.

The one striking thing i’ve found was talking to a vendor who built an machine learning model that went through IT Helpdesk tickets, instant message and email interaction histories, nominally to prioritise the natural language corpus into a list of intent:action pairs for use by their ChatBot developers. They found that the primary output from the exercise was in improving FAQ sheets in the first instance. Ian thinking “is this technology chasing a use case?” again. Maybe you have a different perspective!

IoT (Internet of Things). The sample provides was tying together devices, sensors and other assets driving reductions in equipment downtime, process waste and energy consumption in “early adopter” smart factories. And then citing security concerns and the need to work with IT teams in these environments to alleviate such risks.

I see lots of big number analyses from vendors, but little from application perspectives. It’s really a story of networked sensors relaying information back to a data repository, and building insights, actions or notifications on the resulting data corpus. Right now, the primary sensor networks in the wild are the location data and history stored on mobile phone handsets or smart watches. Security devices a smaller base. Embedded simple devices smaller still. I think i’m more excited when sensors get meaningful vision capabilities (listed separately below). Until then, content to let my Apple Watch keep tabs on my heart rate, and to feed that daily into a research project looking at strokes.

Voice Control and Virtual Assistants. Alexa: set an alarm for 6:45am tomorrow. Play Lucy in the Sky with Diamonds. What’s the weather like in Southampton right now? OK Google: What is $120 in UK pounds? Siri: send a message to Jane; my eta is 7:30pm. See you in a bit. Send.

It’s primarily a convenience thing when my hands are on a steering wheel, in flour in a mixing bowl, or the quickest way to enact a desired action – usually away from a keyboard and out of earshot to anyone else. It does liberate my two youngest grandchildren who are learning to read and write. Those apart, it’s just another UI used occasionally – albeit i’m still in awe of folks that dictate their book writing efforts into Siri as they go about their day. I find it difficult to label this capability as disruptive (to what?).

Immersive Experiences (AR/VR/Mixed Reality). A short list of potential use cases once you get past technology searching for an application (cart before horse city). Jane trying out lipstick and hair colours. Showing the kids a shark swimming around a room, or what colour Tesla to put in our driveway. Measuring rooms and seeing what furniture would look like in situ if purchased. Is it Groundhog Day for Second Life, is there a battery of disruptive applications, or is it me struggling for examples? Not sure.

Smart Manufacturing. Described as transformative tech to watch. In the meantime, 3D printing. Not my area, but it feels to me low volume local production of customised parts, and i’m not sure how big that industry is, or how much stock can be released by putting instant manufacture close to end use. My dentist 3D prints parts of teeth while patients wait, but otherwise i’ve not had any exposure that I could translate as a disruptive application.

Computer Vision. Yes! A big one. I’m reminded of a Google presentation that related the time in prehistoric times when the number of different life form species on earth vastly accelerated; this was the Cambrian Period, when life forms first developed eyes. A combination of cheap camera hardware components, and excellent machine learning Vision APIs, should be transformative. Especially when data can be collected, extracted, summarised and distributed as needed. Everything from number plate, barcode or presence/not present counters, through to the ability to describe what’s in a picture, or to transcribe the words recited in a video.

In the Open Source Software World, we reckon bugs are shallow as the source listing gets exposed to many eyes. When eyes get ubiquitous, there are probably going to be little that happens that we collectively don’t know about. The disruption is then at the door of privacy legislation and practice.

Artificial Intelligence for Services. The whole shebang in the article relates back to BOTs. I personally think it’s more nuanced; it’s being able to process “dirty” or mixed media data sources in aggregate, and to use the resulting analysis to both prioritise and improve individual business processes. Things like www.parlo.io‘s Broca NLU product, which can build a suggested intent:action Service Catalogue from Natural Language analysis of support tickets, CRM data, instant message and support email content.

I’m sure there are other applications that can make use of data collected to help deliver better, more efficient or timely services to customers. BOTs, I fear, are only part of the story – with benefits accruing more to the service supplier than to the customer exposed to them. Your own mileage may vary.

Containers and Microservices. The whole section is a Minestrone Soup of Acronyms and total bollocks. If Simon Wardley was in a grave, he’d be spinning in it (but thank god he’s not).

Microservices is about making your organisations data and processes available to applications that can be internally facing, externally facing or both using web interfaces. You typically work with Apigee (now owned by Google) or 3Scale (owned by Red Hat) to produce a well documented, discoverable, accessible and secure Application Programming Interface to the services you wish to expose. Sort licensing, cost mechanisms and away. This is a useful, disruptive trend.

Containers are a standardised way of packaging applications so that they can be delivered and deployed consistently, and the number of instances orchestrated to handle variations in load. A side effect is that they are one way of getting applications running consistently on both your own server hardware, and in different cloud vendors infrastructures.

There is a view in several circles that containers are an “interim” technology, and that the service they provide will get abstracted away out of sight once “Serverless” technologies come to the fore. Same with the “DevOps” teams that are currently employed in many organisations, to rapidly iterate and deploy custom code very regularly by mingling Developer and Operations staff.

With Serverless, the theory being that you should be able to write code once, and for it to be fired up, then scaled up or down based on demand, automatically for you. At the moment, services like Amazon AWS Lambda, Google Cloud Functions and Microsoft Azure Functions (plus point database services used with them) are different enough to make applications based on one limited to that cloud provider only.

Serverless is the Disruptive Technology here. Containers are where the puck is, not where the industry is headed.

Blockchain. The technology that first appeared under Bitcoin is the Blockchain. A public ledger, distributed over many different servers worldwide, that doesn’t require a single trusted entity to guarantee the integrity (aka “one version of the truth”) of the data. It manages to ensure that transactions move reliably, and avoids the “Byzantine Generals Problem” – where malicious behaviour by actors in the system could otherwise corrupt its working.

Blockchain is quite a poster child of all sorts of applications (as a holder and distributor of value), and focus of a lot of venture capital and commercial projects. Ethereum is one such open source, distributed platform for smart contracts. There are many others; even use of virtual coins (ICO’s) to act as a substitute for venture capital funding.

While it has the potential to disrupt, no app has yet broken through to mainstream use, and i’m conscious that some vendors have started to patent swathes of features around blockchain applications. I fear it will be slow boil for a long time yet.

Cloud to Edge Computing. Another rather gobbledygook set of words. I think they really mean that there are applications that require good compute power at the network edge. Devices like LIDAR (the spinning camera atop self driving cars) is typically consuming several GB of data per mile travel, where there is insufficient reliable bandwidth to delegate all the compute to a remote cloud server. So there are models of how a car should drive itself that are built in the cloud, but downloaded and executed in the car without a high speed network connection needing to be in place while it’s driving. Basic event data (accident ahead, speed, any notable news) may be fed back as it goes, with more voluminous data shared back later when adjacent to a fast home or work network.

Very fast chips are a thing; the CPU in my Apple Watch is faster than a room size VAX-11/780 computer I used earlier in my career. The ARM processor in my iPhone and iPad Pro are 64-bit powerhouses (Apple’s semiconductor folks really hit out of the park on every iteration they’ve shipped to date). Development Environments for powerful, embedded systems are something i’ve not seen so far though.

Digital Ethics. This is a real elephant in the room. Social networks have been built to fulfil the holy grail of advertisers, which is to lavish attention on the brands they represent in very specific target audiences. Advertisers are the paying customers. Users are the Product. All the incentives and business models align to these characteristics.

Political operators, both local as well as foreign actors, have fundamentally subverted the model. Controversial and most often incorrect and/or salacious stories get wide distribution before any truth emerges. Fake accounts and automated bots further corrupt the measures to pervert the engagement indicators that drive increased distribution (noticeable that one video segment of one Donald Trump speech got two orders of magnitude more “likes” than the number of people that actually played the video at all). Above all, messages that appeal to different filter bubbles drive action in some cases, and antipathy in others, to directly undermine voting patterns.

This is probably the biggest challenge facing large social networks, at the same time that politicians (though the root cause of much of the questionable behaviours, alongside their friends in other media), start throwing regulatory threats into the mix.

Many politicians are far too adept at blaming societal ills on anyone but themselves, and in many cases on defenceless outsiders. A practice repeated with alarming regularity around the world, appealing to isolationist bigotry.

The world will be a better place when we work together to make the world a better place, and to sideline these other people and their poison. Work to do.

IT Trends into 2017 – or the delusions of Ian Waring

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Bowling Ball and Pins

My perception is as follows. I’m also happy to be told I’m mad, or delusional, or both – but here goes. Most reflect changes well past the industry move from CapEx led investments to Opex subscriptions of several years past, and indeed the wholesale growth in use of Open Source Software across the industry over the last 10 years. Your own Mileage, or that of your Organisation, May Vary:

  1. if anyone says the words “private cloud”, run for the hills. Or make them watch https://youtu.be/URvWSsAgtJE. There is also an equivalent showing how to build a toaster for $15,000. The economics of being in the business of building your own datacentre infrastructure is now an economic fallacy. My last months Amazon AWS bill (where I’ve been developing code – and have a one page site saying what the result will look like) was for 3p. My Digital Ocean server instance (that runs a network of WordPress sites) with 30GB flash storage and more bandwidth than I can shake a stick at, plus backups, is $24/month. Apart from that, all I have is subscriptions to Microsoft, Github and Google for various point services.
  2. Most large IT vendors have approached cloud vendors as “sell to”, and sacrificed their own future by not mapping customer landscapes properly. That’s why OpenStack is painting itself into a small corner of the future market – aimed at enterprises that run their own data centres and pay support costs on a per software instance basis. That’s Banking, Finance and Telco land. Everyone else is on (or headed to) the public cloud, for both economic reasons and “where the experts to manage infrastructure and it’s security live” at scale.
  3. The War stage of Infrastructure cloud is over. Network effects are consolidating around a small number of large players (AWS, Google Cloud Platform, Microsoft Azure) and more niche players with scale (Digital Ocean among SME developers, Softlayer in IBM customers of old, Heroku with Salesforce, probably a few hosting providers).
  4. Industry move to scale out open source, NoSQL (key:value document orientated) databases, and components folks can wire together. Having been brought up on MySQL, it was surprisingly easy to set up a MongoDB cluster with shards (to spread the read load, scaled out based on index key ranges) and to have slave replicas backing data up on the fly across a wide area network. For wiring up discrete cloud services, the ground is still rough in places (I spent a couple of months trying to get an authentication/login workflow working between a single page JavaScript web app, Amazon Cognito and IAM). As is the case across the cloud industry, the documentation struggles to keep up with the speed of change; developers have to be happy to routinely dip into Github to see how to make things work.
  5. There is a lot of focus on using Containers as a delivery mechanism for scale out infrastructure, and management tools to orchestrate their environment. Go, Chef, Jenkins, Kubernetes, none of which I have operational experience with (as I’m building new apps have less dependencies on legacy code and data than most). Continuous Integration and DevOps often cited in environments were custom code needs to be deployed, with Slack as the ultimate communications tool to warn of regular incoming updates. Having been at one startup for a while, it often reminded me of the sort of military infantry call of “incoming!” from the DevOps team.
  6. There are some laudable efforts to abstract code to be able to run on multiple cloud providers. FOG in the Ruby ecosystem. CloudFoundry (termed BlueMix in IBM) is executing particularly well in large Enterprises with investments in Java code. Amazon are trying pretty hard to make their partners use functionality only available on AWS, in traditional lock-in strategy (to avoid their services becoming a price led commodity).
  7. The bleeding edge is currently “Function as a Service”, “Backend as a Service” or “Serverless apps” typified with Amazon Lambda. There are actually two different entities in the mix; one to provide code and to pay per invocation against external events, the other to be able to scale (or contract) a service in real time as demand flexes. You abstract all knowledge of the environment  away.
  8. Google, Azure and to a lesser extent AWS are packaging up API calls for various core services and machine learning facilities. Eg: I can call Google’s Vision API with a JPEG image file, and it can give me the location of every face (top of nose) on the picture, face bounds, whether each is smiling or not). Another that can describe what’s in the picture. There’s also a link into machine learning training to say “does this picture show a cookie” or “extract the invoice number off this image of a picture of an invoice”. There is an excellent 35 minute discussion on the evolving API landscape (including the 8 stages of API lifecycle, the need for honeypots to offset an emergent security threat and an insight to one impressive Uber API) on a recent edition of the Google Cloud Platform Podcast: see http://feedproxy.google.com/~r/GcpPodcast/~3/LiXCEub0LFo/
  9. Microsoft and Google (with PowerApps and App Maker respectively) trying to remove the queue of IT requests for small custom business apps based on company data. Though so far, only on internal intranet type apps, not exposed outside the organisation). This is also an antithesis of the desire for “big data”, which is really the domain of folks with massive data sets and the emergent “Internet of Things” sensor networks – where cloud vendor efforts on machine learning APIs can provide real business value. But for a lot of commercial organisations, getting data consolidated into a “single version of the truth” and accessible to the folks who need it day to day is where PowerApps and AppMaker can really help.
  10. Mobile apps are currently dogged by “winner take all” app stores, with a typical user using 5 apps for almost all of their mobile activity. With new enhancements added by all the major browser manufacturers, web components will finally come to the fore for mobile app delivery (not least as they have all the benefits of the web and all of those of mobile apps – off a single code base). Look to hear a lot more about Polymer in the coming months (which I’m using for my own app in conjunction with Google Firebase – to develop a compelling Progressive Web app). For an introduction, see: https://www.youtube.com/watch?v=VBbejeKHrjg
  11. Overall, the thing most large vendors and SIs have missed is to map their customer needs against available project components. To map user needs against axes of product life cycle and value chains – and to suss the likely movement of components (which also tells you where to apply six sigma and where agile techniques within the same organisation). But more eloquently explained by Simon Wardley: https://youtu.be/Ty6pOVEc3bA

There are quite a range of “end of 2016” of surveys I’ve seen that reflect quite a few of these trends, albeit from different perspectives (even one that mentioned the end of Java as a legacy language). You can also add overlays with security challenges and trends. But – what have I missed, or what have I got wrong? I’d love to know your views.

Crossing the Chasm on One Page of A4 … and Wardley Maps

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Crossing the Chasm Diagram

Crossing the Chasm – on one sheet of A4

The core essence of most management books I read can be boiled down to occupy a sheet of A4. There have also been a few big mistakes along the way, such as what were considered at the time to be seminal works, like Tom Peter’s “In Search of Excellence” — that in retrospect was an example summarised as “even the most successful companies possess DNA that also breed the seeds of their own destruction”.

I have much simpler business dynamics mapped out that I can explain to fast track employees — and demonstrate — inside an hour; there are usually four graphs that, once drawn, will betray the dynamics (or points of failure) afflicting any business. A very useful lesson I learnt from Microsoft when I used to distribute their software. But I digress.

Among my many Business books, I thought the insights in Geoffrey Moores Book “Crossing the Chasm” were brilliant — and useful for helping grow some of the product businesses i’ve run. The only gotcha is that I found myself keeping on cross referencing different parts of the book when trying to build a go-to-market plan for DEC Alpha AXP Servers (my first use of his work) back in the mid-1990’s — the time I worked for one of DEC’s Distributors.

So, suitably bored when my wife was watching J.R. Ewing being mischievous in the first UK run of “Dallas” on TV, I sat on the living room floor and penned this one page summary of the books major points. Just click it to download the PDF with my compliments. Or watch the author himself describe the model in under 14 minutes at an O’Reilly Strata Conference here. Or alternatively, go buy the latest edition of his book: Crossing the Chasm

My PA (when I ran Marketing Services at Demon Internet) redrew my hand-drawn sheet of A4 into the Microsoft Publisher document that output the one page PDF, and that i’ve referred to ever since. If you want a copy of the source file, please let me know — drop a request to: [email protected].

That said, i’ve been far more inspired by the recent work of Simon Wardley. He effectively breaks a service into its individual components and positions each on a 2D map;  x-axis dictates the stage of the components evolution as it does through a Chasm-style lifecycle; the y-axis symbolises the value chain from raw materials to end user experience. You then place all the individual components and their linkages as part of an end-to-end service on the result. Having seen the landscape in this map form, then to assess how each component evolves/moves from custom build to commodity status over time. Even newest components evolve from chaotic genesis (where standards are not defined and/or features incomplete) to becoming well understood utilities in time.

The result highlights which service components need Agile, fast iterating discovery and which are becoming industrialised, six-sigma commodities. And once you see your map, you can focus teams and their measures on the important changes needed without breeding any contradictory or conflict-ridden behaviours. You end up with a well understood map and – once you overlay competitive offerings – can also assess the positions of other organisations that you may be competing with.

The only gotcha in all of this approach is that Simon hasn’t written the book yet. However, I notice he’s just provided a summary of his work on his Bits n Pieces Blog yesterday. See: Wardley Maps – set of useful Posts. That will keep anyone out of mischief for a very long time, but the end result is a well articulated, compelling strategy and the basis for a well thought out, go to market plan.

In the meantime, the basics on what is and isn’t working, and sussing out the important things to focus on, are core skills I can bring to bear for any software, channel-based or internet related business. I’m also technically literate enough to drag the supporting data out of IT systems for you where needed. Whether your business is an Internet-based startup or an established B2C or B2B Enterprise focussed IT business, i’d be delighted to assist.