2023 Agile Summit Taiwan - Value Flywheel Effect - Kim Kao - DevAx Solutions Architect

In this session, Kim Kao will primarily talk about how businesses aiming to enhance their competitiveness can use visualization to comprehensively organize their core competencies, and leverage technology at scale to drive transformation and change. In the era of cloud services, there are several classic market cases that can be shared. The topic content includes, but is not limited to, Wardley Mapping Impact Mapping, Sense-making approach, and the development pattern of working backwards as a reference for execution.

Transcript

1. © 2023, Amazon Web Services, Inc. or its affiliates. © 2023, Amazon Web Services, Inc. or its affiliates. Value Flywheel Effect 轉動價值飛輪從發展方針定標開始 Kim Kao 高翊凱, he/him Co-organizer, Domain-Driven Design Taiwan Community Lead of Developer Specialist Solution Architect, Amazon Web Services, GCR
2. © 2023, Amazon Web Services, Inc. or its affiliates. Self introduction • Father of 3, well architected life • Working with cloud industry • Committed to improving peer relationships among software professionals • Evangelist of Domain-Driven Design
3. © 2023, Amazon Web Services, Inc. or its affiliates. 3 ARR ? vs RDD? • #Annual Recursive Revenue • #Resume-Driven Design
4. © 2023, Amazon Web Services, Inc. or its affiliates. agenda 4 • The Value flywheel • Essential capabilities behind flywheel • Case study • Heuristics of practices • Q&A
5. © 2023, Amazon Web Services, Inc. or its affiliates. © 2023, Amazon Web Services, Inc. or its affiliates. 5 The value flywheel
6. © 2023, Amazon Web Services, Inc. or its affiliates. © 2020, Amazon Web Services, Inc. or its affiliates. All rights reserved.
7. © 2023, Amazon Web Services, Inc. or its affiliates. © 2020, Amazon Web Services, Inc. or its affiliates. All rights reserved.
8. © 2023, Amazon Web Services, Inc. or its affiliates. © 2020, Amazon Web Services, Inc. or its affiliates. All rights reserved.
9. © 2023, Amazon Web Services, Inc. or its affiliates.
10. © 2023, Amazon Web Services, Inc. or its affiliates. © 2020, Amazon Web Services, Inc. or its affiliates. All rights reserved.
11. © 2023, Amazon Web Services, Inc. or its affiliates. Amazon LOWER COST STRUCTURE LOWER PRICE CUSTOMER EXPERIENCE TRAFFIC SELLERS SELECTION
12. © 2023, Amazon Web Services, Inc. or its affiliates. 12 Steps Forward Consistent with Hedgehog Concept Flywheels Builds Momentum Accumulation of Visible Results People Line up, Energized by results Jim Collins – Good to Great
13. © 2023, Amazon Web Services, Inc. or its affiliates. The Value Flywheel Effect LONG-TERM VALUE CLARITY OF PURPOSE PHASE 3 PHASE1 PHASE4 PHASE2 Join Business & Technology Strategies CHALLENGE & LANDSCAPE NEXT BEST ACTION Step 1 – CLARITY OF PURPOSE $MRR Jun, 2022 Jun, 2023 Get well plan? Revenue dropped by 60% Inactive members + 40% Termination of supplier collaboration + 30%
14. © 2023, Amazon Web Services, Inc. or its affiliates. PHASE 1 – CLARITY OF PURPOSE - Raise the # of active members - Extend the contract - Net new leads/engagement - Recruit new supplier with structural campaign CEO § Data-informed North Star Metrics § Making differentiation § Never embrace lagging indicator CLARITY OF PURPOSE PHASE1 Join Business & Technology Strategies
15. © 2023, Amazon Web Services, Inc. or its affiliates. Lagging Metric North Star Framework Suffering in execution Too focus on critical metrics Difficult to choose appropriate metrics Looking for short-term win Lack of whole picture None concrete execution plan 15
16. © 2023, Amazon Web Services, Inc. or its affiliates. Leading Metric Impact Mapping Key Characteristics 16 • Strategy planning tool • Visualize the goals, actors • Through behaviors impact to identify potential results • Connect all stakeholders to execute tasks and deliver results
17. © 2023, Amazon Web Services, Inc. or its affiliates. PHASE 2 – CHALLENGE & LANDSCAPE - I can only deal with on-premise system - Front end is the best - Agile? Are you kidding me ? - Take care the worries & concern - Enable & coach through pre-production journe - Embrace diverse stakeholders - Involve in Sociotechnical systems § Psychological safety § A sociotechnical systems view § Enable empowered engineers ENGINEERS PHASE2 Join Business & Technology Strategies CHALLENGE & LANDSCAPE
18. © 2023, Amazon Web Services, Inc. or its affiliates. Sociotechnical Within a socio-technical systems perspective, any organisation, or part of it, is made up of a set of interacting sub-systems Any organisation employs people with capabilities, who work towards goals, follow processes, use technology, operate within a physical infrastructure, and share certain cultural assumptions and norms
19. © 2023, Amazon Web Services, Inc. or its affiliates. The collaboration model • Define the product from scratch • Get early stage user feedback • Enhancement based on critical request • Impact the overall architecture design • Expect to gain great customer experience • Update strategies
20. © 2023, Amazon Web Services, Inc. or its affiliates. Continuous architecture Incremental architecture is essential in a modern agile development environment" ~ by Allen Holub (@allenholub) Credit to Nick Tune, @ntcoding
21. © 2023, Amazon Web Services, Inc. or its affiliates. As an architect you design for the present, with an awareness of the past for a future which is essentially unknown Norman Foster
22. © 2023, Amazon Web Services, Inc. or its affiliates. Continuous architecture contains • Context of the system • Key functional requirements that will impact the architecture • Quality attributes that drive the architecture • Making trade-off from the cycle
23. © 2023, Amazon Web Services, Inc. or its affiliates. Difference between CA and traditional architecture approaches • End to end delivery • Not only in software architecture itself, but ask to have entire coverage • Way to avoid big-architecture-up-front syndrome
24. © 2023, Amazon Web Services, Inc. or its affiliates. Making and governing architectural decisions Provide Guidelines Gain Visibilities
25. © 2023, Amazon Web Services, Inc. or its affiliates. Architectural decisions • Most of the time, architecture diagram is not readable or maintainable • Only authors realized the entire content • Key assests in the decisions should be recorded, try to use https://adr.github.io • 3 key points should be covered in adr • 1) clearly articulate all constraints related to a decision • 2) focus on quality attributes, not on functional requirements • 3) trade-off between the different opions and impact on quality attributes should be considered
26. © 2023, Amazon Web Services, Inc. or its affiliates. Building the quality attributes utility tree • Stimulus – Measure the revenue grows from achitecture changing • Response – should be stable in expected responding time • Measurement – SLA, costs, DR, RTO/RPO • Environment – Could support rapidly change , scalability and DR requirements?
27. © 2023, Amazon Web Services, Inc. or its affiliates. PHASE 3 – CHALLENGE & LANDSCAPE - NO CI, that’s all - Lack of documents, knowledge leaking - We do what we want - RDD - Take care the worries & concern - Enable & coach through pre-production journey - Embrace diverse stakeholders - Involve in Sociotechnical systems § Code is a liability § System is the asset § Align on how you will serve customers PRODUCT LEADERs Next Best Action PHASE 3 Join Business & Technology Strategies
28. © 2023, Amazon Web Services, Inc. or its affiliates. Load Liability from Day1
29. © 2023, Amazon Web Services, Inc. or its affiliates. Get the whole picture Entire product engineering life cycle “DOWNTIME” Defects Overproduction Waiting Non-utilized Talent Transportation Inventory Motion Extra-Processing Data Driven Process Time Lead Time Activity Ration %Complete/Accurate Remove wasted steps Draw VSM Figure out Waste Analysis the flow Establish Pull CA Align with Value Stream mapping
30. © 2023, Amazon Web Services, Inc. or its affiliates. PHASE 4 – LONG-TERM Value - Reliability is not reachable - Failure is BAU - Just meet urgent requests - Problem prevention culture – Well Architected - Sustainability as top priority - Next Generation companies can see ahead § A problem-prevention Culture § Keep a low-carbon footprint § Map the emerging value CTO LONG-TERM VALUE PHASE4 Join Business & Technology Strategies
31. © 2023, Amazon Web Services, Inc. or its affiliates. When you look at the workloads your team is building, can you answer the question: “Are you Well-Architected?”
32. © 2023, Amazon Web Services, Inc. or its affiliates. Pillars of AWS Well-Architected Cost Optimization Reliability Security Operational Excellence Performance Efficiency Sustainability
33. © 2023, Amazon Web Services, Inc. or its affiliates. Design principles Automate responses to critical events: Monitor and automatically trigger responses to event-driven, or condition-driven, alerts General design principles Pillar-specific design principles
34. © 2023, Amazon Web Services, Inc. or its affiliates. Wrap it up in transparency • Conduct the body of work in documenting the trade-off decision making • Architecture Decision Record as the long- term business growing playbook • Make sure everyone can access in your org
35. © 2023, Amazon Web Services, Inc. or its affiliates. Legacy system refactoring strategy Rebuild vs Refactor ?
36. © 2023, Amazon Web Services, Inc. or its affiliates. © 2023, Amazon Web Services, Inc. or its affiliates. 36 Essential capabilities behind value flywheel
37. © 2023, Amazon Web Services, Inc. or its affiliates. Strategic Planning 37
38. © 2023, Amazon Web Services, Inc. or its affiliates. © 2023, Amazon Web Services, Inc. or its affiliates. By using a map of a business, we can anticipate change and learn to use it to our advantage ~ Simon Wardley
39. © 2023, Amazon Web Services, Inc. or its affiliates. Evolution of the Value Chain Commodity Product Custom Built Genesis Just Innovated Uncertainty Semi-Product Experimented Specific Knowledge embedded Widely Adopted Turn-Key Solution High maturity Plenty of choices Standard & Low-Cost
40. © 2023, Amazon Web Services, Inc. or its affiliates. Principles of Wardley Mapping Courage Collaboration Empathy Perspective Narrative Challenge
41. © 2023, Amazon Web Services, Inc. or its affiliates. Wardley Mapping Canvas • Identify Users • Verify User Needs • Start from visible to audience • Aware Momentum & Iternia of to-be pace
42. © 2023, Amazon Web Services, Inc. or its affiliates.
43. © 2023, Amazon Web Services, Inc. or its affiliates. © 2023, Amazon Web Services, Inc. or its affiliates. Case Study Optimising serverless for BBC ~ Johnathan Ishmael, Lead technical Architect, BBC
44. © 2023, Amazon Web Services, Inc. or its affiliates.
45. © 2023, Amazon Web Services, Inc. or its affiliates. Unexpected Growing Line of Business Scalability challenge 45 https://www.infoq.com/news/2021/01/bbc-serverless-scale/ • Challenging on top of the complexity of running such an extensive service. • Unpredictable traffic during world-wide events (e.g. Olympic, WW FG) • Tons of Millions users watching and reading content at once • Combined with essential features – SEO, accessibility, personalization • Multiple channel support – Web, Mobile • Compete with Apple new, Netflix with less budgets
46. © 2023, Amazon Web Services, Inc. or its affiliates. Motivation of driving refactor to Serveless 60 million DAU 20K RPS 3x grows QPS / new breaking news story erupts These key moments are critical for the BBC, and they are the moments in which the audience turns to us. We must not fail. Any technology we choose must be able to respond to these traffic patterns.
47. © 2023, Amazon Web Services, Inc. or its affiliates. Legacy architecture of BBC 47 • Timeline : During 2020 • 165M unique requests from WW • “Web Core” stack averaged 80K request/min, peaking at 120K/min • Edge traffic over CDN 2.5M PV/min ; 41K qps
48. © 2023, Amazon Web Services, Inc. or its affiliates. Success factors 48 https://medium.com/bbc-product-technology/shipping-progressive-web-apps-everywhere-190a421c606a Value Chain Visible invisible Serving context: - 160M unique PV - 80K RPM, Peak 120K RPM - 2.5M PV/Min; 41K QPS over CDN Offer WW content (Sports, RADIO, News, TV) World Wide Access Multiple platform support Unpredictable traffic Serving Content Distribution Network React App Storage Cache Elastic Compute Environment inertia Serverless EC2/Container/Kubernetes Web App
49. © 2023, Amazon Web Services, Inc. or its affiliates. Architecture Decision Record 49 https://medium.com/bbc-product-technology/shipping-progressive-web-apps-everywhere-190a421c606a Value Chain Visible invisible Serving context: - 160M unique PV - 80K RPM, Peak 120K RPM - 2.5M PV/Min; 41K QPS over CDN World Wide Access Elastic Compute Environment inertia Serverless EC2/Container/Kubernetes Container (Kubernetes) Lambda - Heavy delay in scaling - Don’t tolerate large bursts of traffic well enough CPU bound compute Lived up < 2s EC2 No persistent requirement - limited by underlying compute instance - Has to scale out to meet the demands of running container - Suitable for long lived, stateful sessions, good to proting - Good to handle short lived traffic - non-persistent, stateless connections - Leave provisioning tasks to providers
50. © 2023, Amazon Web Services, Inc. or its affiliates. BBC Serverless architecture 60 million DAU | 20K RPS | 3x growth up QPS/new breaking news story erupts Base scenario : No traditional architecture, go with API Gateway, but customzie the entry point from EC2 • Internal handle the traffuc forwarding • Fastest caching operation and fail backs • High network, high memory, low CPU usages
51. © 2023, Amazon Web Services, Inc. or its affiliates. Overall gained performance 51 A graph showing the average and p90 response times of our presentation React app serverless function over a 4 week period. X axis is time, Y axis is duration in milliseconds.
52. © 2023, Amazon Web Services, Inc. or its affiliates. © 2023, Amazon Web Services, Inc. or its affiliates. Heuristics of practice
53. © 2023, Amazon Web Services, Inc. or its affiliates. Goal Alignment Facilitating Problem Domain Resources alignment
54. © 2023, Amazon Web Services, Inc. or its affiliates. 1. Value Flywheel 2. Wardley Mapping 3. Architecture Decision Record • Persona • North Star • Don’t embrace lagging metrics • Invest on core sub domain • Know the momentum • Mitigate the inertia • Make it traceable • Align with business goals • Take case stakeholders
55. © 2023, Amazon Web Services, Inc. or its affiliates.
56. © 2023, Amazon Web Services, Inc. or its affiliates. Thank you! © 2023, Amazon Web Services, Inc. or its affiliates.