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

Kim Kao
June 16, 2023

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.

Kim Kao

June 16, 2023
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  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

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  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

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  3. © 2023, Amazon Web Services, Inc. or its affiliates. 3
    ARR ? vs RDD?
    • #Annual Recursive Revenue
    • #Resume-Driven Design

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  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

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  5. © 2023, Amazon Web Services, Inc. or its affiliates.
    © 2023, Amazon Web Services, Inc. or its affiliates. 5
    The value flywheel

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  6. © 2023, Amazon Web Services, Inc. or its affiliates.
    © 2020, Amazon Web Services, Inc. or its affiliates. All rights reserved.

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  7. © 2023, Amazon Web Services, Inc. or its affiliates.
    © 2020, Amazon Web Services, Inc. or its affiliates. All rights reserved.

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  8. © 2023, Amazon Web Services, Inc. or its affiliates.
    © 2020, Amazon Web Services, Inc. or its affiliates. All rights reserved.

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  9. © 2023, Amazon Web Services, Inc. or its affiliates.

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  10. © 2023, Amazon Web Services, Inc. or its affiliates.
    © 2020, Amazon Web Services, Inc. or its affiliates. All rights reserved.

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  11. © 2023, Amazon Web Services, Inc. or its affiliates.
    Amazon
    LOWER COST
    STRUCTURE
    LOWER PRICE
    CUSTOMER EXPERIENCE
    TRAFFIC
    SELLERS
    SELECTION

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  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

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  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%

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  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

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  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

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  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

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  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

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  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

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  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

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  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

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  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

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  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

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  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

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  24. © 2023, Amazon Web Services, Inc. or its affiliates.
    Making and governing architectural decisions
    Provide
    Guidelines
    Gain
    Visibilities

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  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

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  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?

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  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

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  28. © 2023, Amazon Web Services, Inc. or its affiliates.
    Load Liability from Day1

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  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

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  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

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  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?”

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  32. © 2023, Amazon Web Services, Inc. or its affiliates.
    Pillars of AWS Well-Architected
    Cost
    Optimization
    Reliability
    Security
    Operational
    Excellence
    Performance
    Efficiency
    Sustainability

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  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

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  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

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  35. © 2023, Amazon Web Services, Inc. or its affiliates.
    Legacy system refactoring strategy
    Rebuild vs
    Refactor ?

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  36. © 2023, Amazon Web Services, Inc. or its affiliates.
    © 2023, Amazon Web Services, Inc. or its affiliates. 36
    Essential capabilities
    behind value flywheel

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  37. © 2023, Amazon Web Services, Inc. or its affiliates.
    Strategic Planning
    37

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  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

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  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

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  40. © 2023, Amazon Web Services, Inc. or its affiliates.
    Principles of Wardley Mapping
    Courage Collaboration Empathy
    Perspective Narrative Challenge

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  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

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  42. © 2023, Amazon Web Services, Inc. or its affiliates.

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  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

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  44. © 2023, Amazon Web Services, Inc. or its affiliates.

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  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

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  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.

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  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

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  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

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  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

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  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

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  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.

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  52. © 2023, Amazon Web Services, Inc. or its affiliates.
    © 2023, Amazon Web Services, Inc. or its affiliates.
    Heuristics of practice

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  53. © 2023, Amazon Web Services, Inc. or its affiliates.
    Goal
    Alignment
    Facilitating
    Problem
    Domain
    Resources alignment

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  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

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  55. © 2023, Amazon Web Services, Inc. or its affiliates.

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  56. © 2023, Amazon Web Services, Inc. or its affiliates.
    Thank you!
    © 2023, Amazon Web Services, Inc. or its affiliates.

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