Quantifying Outcomes - Digital Transformation and the Competitive Edge

Slides from a short-form interactive webinar that you can watch here -- https://www.brighttalk.com/webcast/11349/245789 - use via Creative Commons - Attribution ShareAlike

Transcript

2. INTRODUCTIONS George Miranda Technical Strategy Chef Software, Inc. @gmiranda23 .
3. 5x Apps and experiences are the new interface Disrupt or be disrupted. Outperform the competition with digital transformation. Success with digital transformation is key to business growth Idea Ship PROBLEM Most enterprises aren’t very good at shipping software ▪ Slow time-to-market ▪ Poor user experience ▪ High cost ▪ Poor predictability ▪ Vulnerabilities and risk POTENTIAL 1—Gartner, Delivering Value at Speed 2—GartnerApps, November 2016 REQUIREMENT For organizations that have implemented DevOps, 66% saw faster realization of business value1. Gartner predicts that through 2021 market demand for app development will outstrip supply by 5x. 66%
4. 1. BMC 2. Splunk 3. IBM 4. HP 5. New Relic 6. AWS 7. Servicenow 8. CA 9. Microsoft 10.Chef 11. Solarwinds 12. Atlassian Chef has driven the automation revolution Our platform is a leader in Continuous Automation Infrastructure Automation Compliance Automation Application Automation Strategic Vendor of F500 OSS Leadership With which vendor do you think you will be spending the most on IT tools in three years? Goldman Sachs Spending Survey, 2016 Key Partners
5. Microservices Container Runtime Datacenter Microservices Physical Runtime Cloud Monolithic Container Runtime Datacenter Microservices ” Hybrid is the standard model for Modern App Teams Teams need to deliver all infrastructure, any app, everywhere. Continuously. Emerging Landscape Legacy Reality Most enterprises are going to operate in hybrid mode for many years to come Andy Jassy, CEO, Amazon Web Services (re:Invent 2016) Architecture MONOLITHS MICROSERVICES Runtime PHYSICAL CONTAINERS Infrastructure DATACENTER CLOUD Infrastructure Application Compliance Automation The state of an app portfolio APP A APP B APP C APP D Physical Runtime Datacenter
6. LOB LOB FOCUS ON SPEED Tension caused by the demands placed on teams… …can be resolved by vertical integration and automation… …to deliver a future of developer services and software at speed SHARED SERVICES Vertical Integration is key to velocity A balance of increasing speed, improved efficiency and decreasing risk FOCUS ON RISK SHARED SERVICES LOB Line of Business LOB Line of Business LOB SHARED SERVICES LOB DEVELOPER SERVICES BUILD • DEPLOY • MANAGE • COLLABORATE
7. ” Business Value with Developer Services Shifting capabilities to match business requirements Developer Services Engineer Line of Business Development Team I provide services that developers and development teams use to build and deliver applications. Developer Services Teams Traditional Central IT System Administrator Centralized Enterprise IT Team I manage and deliver infrastructure required to run software in my organization. Enabling development teams to get insights into speed, efficiency and risk of delivery of their software Reducing risk to my organization from my infrastructure and software that runs on it Enabling development teams to ship software at speed while maintaining quality and reducing risk Reliably managing changes to infrastructure requirements Providing on-demand, self-service infrastructure and services tailored to developer needs Managing and lowering costs of running, configuring, and maintaining infrastructure DEPLOY MANAGE Don’t measure me on traditional IT metrics, but on the metrics of the business Jim Fowler, CIO, GE Capital BUILD Reducing friction by enabling full stack transparency and management capability with separation of duties Delivering configured infrastructure and handing off responsibility to development teams COLLABORATE
8. The impact of outperformance 5x Revenue Growth, 8x Profitability Growth, 2x Shareholder Return Growth 4.3% 13.5 % 18.1 % 0.8% -1.8% 10.3% B2B digital leaders turn in stronger financial performance. Top-quartile digital B2B companies Rest of B2B sample Revenue growth, CAGR,2010-15 Operating profit (EBIT) Growth, CAGR, 2010-15 Return to shareholder (TRS) growth, CAGR, 2010-15 ~5X ~8X ~2X Firms with high performing IT organizations were twice as likely to exceed their profitability, market share, and productivity goals The State of DevOps, 2016 HIGH PERFORMING IT ORGANIZATIONS: ▪ 200x more frequent releases ▪ 24x faster at recovering from failures ▪ 3x lower change failure rate ▪ 255x shorter lead times No high velocity company has gotten there without automation as a foundation 2x
9. Velocity: time from idea to ship Software success metrics Quantifying outcomes to deliver software at speed Deployment frequency Time from commit to deploy Mean time to resolve Time deploying remediation Change failure rate SPEED Measure of rate of software change EFFICIENCY Measure of effectiveness of software change RISK Measure of quality of software change Compliance audit frequency Idea Ship
10. Standard Bank pushes ideas from commit to deploy in 18 minutes with Chef Focus on Speed Measuring the rate of software change HIGH IT PERFORMERS MEDIUM IT PERFORMERS LOW IT PERFORMERS On-demand Week - Month Month – 6 Month < 1 Hour Week - Month Month - 6 month USE CASES INCLUDE: ▪ Application Delivery ▪ Build Pipelines DEPLOYMENT FREQUENCY TIME FROM COMMIT TO DEPLOY
11. Intuit reduced change failure rate by 90% with Chef Focus on Efficiency Measuring the effectiveness of software change HIGH IT PERFORMERS MEDIUM IT PERFORMERS LOW IT PERFORMERS 0-15% 31-45% * 16-30% < 1 Hour < 1 Day < 1 Day * USE CASES INCLUDE: ▪ Configuration Management ▪ Server Drift CHANGE FAILURE RATE MEAN TIME TO RESOLVE
12. Equifax easily scans and maintains security policies with Chef Focus on Risk Measuring the quality of software change HIGH IT PERFORMERS MEDIUM IT PERFORMERS LOW IT PERFORMERS On-Demand Week - Month Month - 12 Months < 1 Hour Week - Month Month - 6 Months USE CASES INCLUDE: ▪ Compliance Automation ▪ Compliance Coverage COMPLIANCE AUDIT FREQUENCY TIME DEPLOYING REMEDIATION
13. “ “ What if..? YOU COULD NOT ONLY OUTPERFORM YOUR OWN PLAN, BUT THE PLANS OF YOUR PEERS Citi relies on Chef as the automation platform used to help transform over 3,000 application teams. Chef is the platform for a continuous delivery pipeline empowering application teams to ship a thousand plus changes per day across “Carl Sagan size deployments.” GE touts Chef as the most rapidly adopted technology in the history of GE. We’re no longer an airline. We’re a software company with wings. —Veresh Sita, CIO, Alaska Airlines Focus on your Success
14. Q&A George Miranda Technical Strategy Chef Software, Inc. @gmiranda23 . What challenges do you face in transforming to outperform your competitors?