The astonishing value of speed

This slide deck discusses the potential advantages of accelerating the cycle times of the IT value chain (from a business idea until the user sees it in the respective application and can provide feedback) and the deployment frequency to production.

First, it clarifies what "going fast" in terms of accelerating IT means - that it does not mean running the widespread rat race faster, but shortening cycle times which is a completely different story and has significantly different effects.

Then, it discusses why this kind of delivery speed is essential in post-industrial markets. Afterwards, more advantages relating human wellbeing, stress reduction, options for process and organization simplification, creating more value with less effort, tackling the shortage of IT talent and more are discussed - which are also relevant if not living in a post-industrial market.

Finally, the advantages and options not being available without short cycle times are summarized.

As always the voice track is missing. Still, I hope that the deck contains some interesting ideas for you ...

Transcript

1. The astonishing value of speed
   Why you cannot afford not to go fast in IT
   Uwe Friedrichsen – codecentric AG – 2013-2021
   

   View Slide

2. Uwe Friedrichsen
   CTO @ codecentric
   https://twitter.com/ufried
   https://www.speakerdeck.com/ufried
   https://ufried.com/blog/value_of_speed/
   

   View Slide

3. Going fast
   

   View Slide

4. What do you mean with “going fast”?
   How fast is “fast”?
   

   View Slide

5. What do you mean with “going fast”?
   How fast is “fast”?
   

   View Slide

6. Features / Unit of time
   

   View Slide

7. Cycle times * Deployment frequency
   * Time from a new idea until the customer experiences its implementation and can provide feedback
   

   View Slide

8. With “fast” I refer to cycle times
   Deployment frequency simply must not compromise cycle times
   

   View Slide

9. What do you mean with “going fast”?
   How fast is “fast”?
   

   View Slide

10. With “fast” I mean the delivery speed (and quality)
    of the elite performers of the State of DevOps (*) report
    (*) https://services.google.com/fh/files/misc/state-of-devops-2019.pdf
    

    View Slide

11. https://services.google.com/fh/files/misc/state-of-devops-2019.pdf, p. 18
    

    View Slide

12. https://services.google.com/fh/files/misc/state-of-devops-2019.pdf, p. 20
    

    View Slide

13. https://services.google.com/fh/files/misc/state-of-devops-2019.pdf, p. 21
    

    View Slide

14. We don’t need it
    

    View Slide

15. What about post-industrial markets?
    

    View Slide

16. Post-what?
    

    View Slide

17. Formal part of
    value creation
    Solution:
    machine
    Dynamic part
    of value
    creation
    Solution: man
    sluggishness/low dynamic high dynamic
    high dynamic
    The historical course of market dynamics
    and the recent rise of highly dynamic and complex markets
    The dominance of high dynamics and complexity is neither good nor bad. It‘s a historical fact.
    t
    1970/80 today
    Age of
    crafts manu-
    facturing
    Age of
    tayloristic
    industry
    Age of
    global
    markets
    1850/1900
    Spacious markets,
    little competition
    Local markets,
    high customi-
    zation
    Outperformers exercise
    market pressure over
    conventional companies
    We call the graph shown here the “Taylor Bathtub”.
    The “bathtub” curve
    Source: BetaCodex Network Associates, “Organize for complexity”, BetaCodex Network White Paper 12 & 13
    

    View Slide

18. Formal part of
    value creation
    Solution:
    machine
    Dynamic part
    of value
    creation
    Solution: man
    sluggishness/low dynamic high dynamic
    high dynamic
    The historical course of market dynamics
    and the recent rise of highly dynamic and complex markets
    The dominance of high dynamics and complexity is neither good nor bad. It‘s a historical fact.
    t
    1970/80 today
    Age of
    crafts manu-
    facturing
    Age of
    tayloristic
    industry
    Age of
    global
    markets
    1850/1900
    Spacious markets,
    little competition
    Local markets,
    high customi-
    zation
    Outperformers exercise
    market pressure over
    conventional companies
    We call the graph shown here the “Taylor Bathtub”.
    Pre-industrial era
    Source: BetaCodex Network Associates, “Organize for complexity”, BetaCodex Network White Paper 12 & 13
    Tailor-made
    solutions
    Mastery
    is key to success
    

    View Slide

19. Formal part of
    value creation
    Solution:
    machine
    Dynamic part
    of value
    creation
    Solution: man
    sluggishness/low dynamic high dynamic
    high dynamic
    The historical course of market dynamics
    and the recent rise of highly dynamic and complex markets
    The dominance of high dynamics and complexity is neither good nor bad. It‘s a historical fact.
    t
    1970/80 today
    Age of
    crafts manu-
    facturing
    Age of
    tayloristic
    industry
    Age of
    global
    markets
    1850/1900
    Spacious markets,
    little competition
    Local markets,
    high customi-
    zation
    Outperformers exercise
    market pressure over
    conventional companies
    We call the graph shown here the “Taylor Bathtub”.
    Industrial era
    Source: BetaCodex Network Associates, “Organize for complexity”, BetaCodex Network White Paper 12 & 13
    Cost-efficiently
    scale production
    Getting more done with less people
    is key to success
    

    View Slide

20. Formal part of
    value creation
    Solution:
    machine
    Dynamic part
    of value
    creation
    Solution: man
    sluggishness/low dynamic high dynamic
    high dynamic
    The historical course of market dynamics
    and the recent rise of highly dynamic and complex markets
    The dominance of high dynamics and complexity is neither good nor bad. It‘s a historical fact.
    t
    1970/80 today
    Age of
    crafts manu-
    facturing
    Age of
    tayloristic
    industry
    Age of
    global
    markets
    1850/1900
    Spacious markets,
    little competition
    Local markets,
    high customi-
    zation
    Outperformers exercise
    market pressure over
    conventional companies
    We call the graph shown here the “Taylor Bathtub”.
    Post-industrial era
    Source: BetaCodex Network Associates, “Organize for complexity”, BetaCodex Network White Paper 12 & 13
    Continuously respond
    to changing demands
    Continuous market adaption
    is key to success
    

    View Slide

21. Industrial Post-industrial
    Dictated by Supplier Driven by Consumer
    Market development
    Demand >> Supply Supply >> Demand
    Demand-Supply Ratio
    High Low
    Success certainty
    Long Short
    Refinancing period
    Market characteristics Wide, sluggish Narrow, fast
    Cost-efficiency & scale Fast feedback & adaptability
    Preferred strategy
    

    View Slide

22. In post-industrial markets not those survive who produce as
    cost-efficiently as possible, but those who adapt to the
    ever-changing needs and demands of the customers
    faster than their competitors.
    This requires fast feedback loops with your customers.
    

    View Slide

23. What does that have to do with IT?
    

    View Slide

24. 1960 1970 1980 1990 2000 2010 2020
    Complicated
    (Business functions)
    Complex
    (Business processes)
    Highly complex
    (Business nervous system)
    Software crisis
    Software engineering
    PC
    LAN
    Internet
    Business
    Support
    of IT
    Selective
    Holistic
    Complicated
    Complex
    “Moore’s law”
    Mobile
    IoT
    

    View Slide

25. IT has changed a lot over the decades ...
    

    View Slide

26. 1960 1970 1980 1990 2000 2010 2020
    Complicated
    (Business functions)
    Complex
    (Business processes)
    Highly complex
    (Business nervous system)
    Software crisis
    PC
    LAN
    Internet
    Business
    Support
    of IT
    Selective
    Holistic
    Complicated
    Complex
    “Moore’s law”
    Mobile
    IoT
    Software engineering
    ... but still we strive to
    control our IT of today ...
    ... based on the concepts
    we developed for an IT
    almost 50 years ago
    

    View Slide

27. Formal part of
    value creation
    Solution:
    machine
    Dynamic part
    of value
    creation
    Solution: man
    sluggishness/low dynamic high dynamic
    high dynamic
    The historical course of market dynamics
    and the recent rise of highly dynamic and complex markets
    The dominance of high dynamics and complexity is neither good nor bad. It‘s a historical fact.
    t
    1970/80 today
    Age of
    crafts manu-
    facturing
    Age of
    tayloristic
    industry
    Age of
    global
    markets
    1850/1900
    Spacious markets,
    little competition
    Local markets,
    high customi-
    zation
    Outperformers exercise
    market pressure over
    conventional companies
    We call the graph shown here the “Taylor Bathtub”.
    Remember the “bathtub” curve?
    Source: BetaCodex Network Associates, “Organize for complexity”, BetaCodex Network White Paper 12 & 13
    

    View Slide

28. 1960 1970 1980 1990 2000 2010 2020
    Complicated
    (Business functions)
    Complex
    (Business processes)
    Highly complex
    (Business nervous system)
    Software crisis
    Software engineering
    PC
    LAN
    Internet
    Business
    Support
    of IT
    Selective
    Holistic
    Complicated
    Complex
    “Moore’s law”
    Mobile
    IoT
    Also the business we
    support with IT today ...
    ... is very different from
    the business we
    supported back then
    

    View Slide

29. The role of IT today
    

    View Slide

30. The role of IT
    • Nervous system of the business
    • Enabler of (disruptive) new business models
    • Integral part of the business model (“digital transformation”)
    • Medium for the continuous customer communication
    

    View Slide

31. You cannot change anything in your business without touching IT.
    IT delimits how fast you can get feedback from your customers.
    

    View Slide

32. Today, business and IT are the same side of the the same coin.
    The other side is the market.
    

    View Slide

33. But my market is not post-industrial
    

    View Slide

34. There is still huge value
    

    View Slide

35. Higher organizational performance
    https://services.google.com/fh/files/misc/state-of-devops-2019.pdf, p. 5
    

    View Slide

36. Better work/life balance, reductions in burnout
    https://services.google.com/fh/files/misc/state-of-devops-2019.pdf, p. 6
    

    View Slide

37. Improves stability, reduces burnout
    https://services.google.com/fh/files/misc/state-of-devops-2019.pdf, p. 6
    

    View Slide

38. Shorter cycle times do not lead to more stress and chaos,
    but on the contrary to less stress and higher performance.
    This alone should be worth aiming for short cycle times.
    

    View Slide

39. Still not convinced …
    

    View Slide

40. There are even more advantages
    

    View Slide

41. Cutting off manual tasks
    • Short lead times require high degree of automation
    • Additional effects of rigorous automation
    • Less errors happen
    • People are happier
    • More capacity for valuable work
    • Get more done with the same – happier – people
    • Saves money, improves productivity and robustness
    

    View Slide

42. Simplifying tasks
    • Aiming for short cycle times ruthlessly points out waste
    • Makes visible if a task has become an end in itself, e.g.
    • Bloated requirements validation processes
    • Complex design rules from the ivory tower
    • Documentation without a reader
    • …
    • Shows the degree of autopoiesis *
    * In its sociological interpretation by Niklas Luhmann
    

    View Slide

43. Valueless routines, ends in themselves,
    bloated procedures and alike
    do not mix with short cycle times
    

    View Slide

44. Simplifying tasks
    • Focus on cycle times means focus on value
    • Simpler processes
    • Less useless procedures
    • Focus on purpose and value, not on routines and habits
    • Saves money, reduces stress, improves productivity
    

    View Slide

45. Configuration frenzy
    • Most applications contain lots of configuration options
    • Multiple execution paths
    • Complex decision logic
    • Additional configuration option management frontends
    • Additional configuration option storage
    • Additional logic to access configuration at runtime
    • Sometimes up to 50% of overall solution complexity
    

    View Slide

46. Configuration frenzy
    • Added complexity comes at a price
    • Code harder to read
    • Code harder to understand
    • Code harder to test
    • Code harder to debug
    • Changes becomes slower and more expensive
    • More bugs creep in
    • Robustness in operations goes down
    

    View Slide

47. Most configuration options are only needed due to long lead times
    

    View Slide

48. t
    Timespan available
    for delivering change
    Timespan needed by IT
    to deliver change
    Change via configuration options
    needed due to this time gap
    Change need
    detected
    Change delivery
    needed at the latest
    Earliest delivery date
    via software change
    

    View Slide

49. What if lead times were shorter than needed change delivery timespan?
    

    View Slide

50. t
    Change delivery
    needed at the latest
    Timespan available
    for delivering change
    Timespan
    needed by IT to
    deliver change
    Configuration options not needed
    for change delivery
    Change need
    detected
    Delivery date via
    software change
    

    View Slide

51. Configuration frenzy
    • With intraday lead times, most configurations not needed *
    • Saves time and money, improves robustness
    * You will not get rid of all configuration options, but you may not need quite a lot of them anymore
    

    View Slide

52. Project overheads
    • Long lead times lead to a huge backlog
    • Requests pile up while organization is busy processing
    current batch of projects
    • Simple queue not sufficient to manage amount of requests
    • Instead, more complex organization needed
    

    View Slide

53. Project overheads
    • Requests are bundled in projects to manage backlog
    • Projects must be defined
    • Projects must be budgeted
    • Projects must be prioritized and approved
    • Projects must be set up and staffed
    • Projects must be implemented, controlled and readjusted
    • Huge additional effort
    • Requires minimum project size
    • Often reinforcing loop
    

    View Slide

54. What if you could implement requests so fast
    that you do not need to manage a huge request backlog?
    

    View Slide

55. Project overheads
    • Intraday lead times would dramatically reduce backlog
    • Much simpler organization would be sufficient
    • Imagine a big Kanban board for all requests *
    • Project overheads would disappear
    • Regular organization sufficient to handle all requests
    • Business and IT owners would be more relaxed
    • Stable teams are possible
    * Usually not that simple, but still simple solutions possible
    

    View Slide

56. Project overheads
    • Saves money, makes you faster, reduces stress
    

    View Slide

57. No “emergency taskforces” needed
    • Widespread separation between “project” and “maintenance”
    • “Project” implements new functionality
    • “Project” typically is organized in long-running projects
    • “Maintenance” takes care of bugs and small changes
    • “Maintenance” usually uses a flow-style process
    • Most experienced engineers usually assigned to “project”
    

    View Slide

58. Project A
    Project B
    Project C
    Maintenance
    Senior
    Engineer
    Junior
    Engineer
    Ops
    Expert
    

    View Slide

59. Now a serious production error occurs …
    

    View Slide

60. Project A
    Project B
    Project C
    Maintenance
    Senior
    Engineer
    Junior
    Engineer
    Ops
    Expert
    Hey, we’ve got
    a serious
    production
    problem here!
    

    View Slide

61. Project A
    Project B
    Project C
    Maintenance
    Senior
    Engineer
    Junior
    Engineer
    Ops
    Expert
    Oh, that’s
    intricate. We
    don’t know
    how to fix it.
    

    View Slide

62. Thus, an “emergency task force” is set up
    

    View Slide

63. Project A
    Project B
    Project C
    Maintenance
    Senior
    Engineer
    Junior
    Engineer
    Ops
    Expert
    Emergency
    Task Force
    That’s intricate,
    indeed. But we
    can fix it.
    Coordination &
    management
    

    View Slide

64. Meanwhile …
    

    View Slide

65. Project A
    Project B
    Project C
    Maintenance
    Senior
    Engineer
    Junior
    Engineer
    Ops
    Expert
    Emergency
    Task Force
    Coordination &
    management
    Crippled
    (significantly
    reduced progress)
    Crippled
    (significantly
    reduced progress)
    Mostly
    standing still
    Mostly
    standing still
    Additional
    overheads
    

    View Slide

66. Often, these “emergency task forces” run for days
    and need to be formed on a quite regular base.
    This means a significant productivity loss,
    not to mention the stress for all people involved.
    

    View Slide

67. Now, assume an IT organization with intraday cycle times
    

    View Slide

68. Senior
    Engineer
    Junior
    Engineer
    Ops
    Expert
    Capability Team 1
    Capability Team 2
    Capability Team 3
    Capability Team 4 Capability Team 6
    Capability Team 5 Capability Team 7
    Note: This is one possible organization supporting short cycle times. There are a lot
    more ways to implement an effective organization supporting short cycle times.
    

    View Slide

69. Now a serious production error occurs …
    

    View Slide

70. Senior
    Engineer
    Junior
    Engineer
    Ops
    Expert
    Capability Team 1
    Capability Team 2
    Capability Team 3
    Capability Team 4 Capability Team 6
    Capability Team 5 Capability Team 7
    Whoa,
    something blew
    up in production!
    

    View Slide

71. Senior
    Engineer
    Junior
    Engineer
    Ops
    Expert
    Capability Team 1
    Capability Team 2
    Capability Team 3
    Capability Team 4 Capability Team 6
    Capability Team 5 Capability Team 7
    Yeah, we need to
    look into it asap!
    

    View Slide

72. Senior
    Engineer
    Junior
    Engineer
    Ops
    Expert
    Capability Team 1
    Capability Team 2
    Capability Team 3
    Capability Team 4 Capability Team 6
    Capability Team 5 Capability Team 7
    Swarming on
    production
    issue
    

    View Slide

73. Meanwhile …
    

    View Slide

74. Senior
    Engineer
    Junior
    Engineer
    Ops
    Expert
    Capability Team 1
    Capability Team 2
    Capability Team 3
    Capability Team 4 Capability Team 6
    Capability Team 5 Capability Team 7
    Swarming on
    production
    issue
    No exceptional procedures required.
    Can be handled using standard process.
    No exceptional ad hoc organization required.
    Can be handle by regular organization.
    Rest of organization not crippled.
    No exceptional coordination
    overheads needed.
    

    View Slide

75. No “emergency taskforces” needed
    • With intraday lead times, production errors become
    “just another task” (with a high priority of course)
    • Saves money, reduces stress, improves productivity
    

    View Slide

76. Less worthless work
    • With long lead times, most code is not used *
    • ~20% frequently used
    • ~30% rarely used
    • ~50% not used (often disliked by users)
    * see, e.g., https://www.martinfowler.com/articles/xp2002.html#BuildOnlyTheFeaturesYouNeed
    

    View Slide

77. t
    Specify the
    new system!
    

    View Slide

78. t
    What could be
    needed for the
    new system?
    ?
    ?
    ?
    ?
    ?
    ?
    

    View Slide

79. t
    I think we
    need
    I want
    
    Wait. I’ll do
    some market
    research
    In the future,
    we might
    need
    Let me ask
    some more
    stakeholders
    

    View Slide

80. t
    Do you really have
    everything in it?
    Remember: We only
    have that one shot!
    

    View Slide

81. t
    

    View Slide

82. t
    Budgeting
    

    View Slide

83. t
    Approval
    

    View Slide

84. t
    Implementation
    

    View Slide

85. t
    Deployment
    

    View Slide

86. t
    That’s not
    what I need!
    

    View Slide

87. Now, assume an organization with intraday cycle times
    

    View Slide

88. < 1d
    

    View Slide

89. < 1d
    

    View Slide

90. Less worthless work
    • Intraday lead times enable fast feedback from users
    • Allows identifying and cutting off non-successful features
    • Allows creating more value with a smaller team
    • Enables outsmarting demographic change
    • Saves money, makes you faster, increases revenue
    

    View Slide

91. More flexibility
    • Companies often aim for better “business agility”
    without understanding the effects of digital transformation
    • Business and IT have become inseparable
    • Business and IT are the same side of the same coin –
    the other side is the market
    • IT delimits speed and thus flexibility of your business
    • Intraday lead times allow for great “business agility”
    • Improves flexibility, enables increased revenue
    

    View Slide

92. Do you still think you do not need it?
    

    View Slide

93. Is there really a different path worth following?
    

    View Slide

94. Hmm … I’ll think about it
    

    View Slide

95. Summing up
    

    View Slide

96. Effects of going fast 1/2
    • Essential for highly dynamic, post-industrial markets
    • Significant cost savings
    • Simpler, more effective organizations
    • Higher productivity
    • Increased robustness of the IT landscape
    

    View Slide

97. Effects of going fast 2/2
    • Higher employee satisfaction (with all its positive effects)
    • Increased company resilience
    • Improved business agility
    • Higher user/customer satisfaction if played right
    • Relief for the omnipresent shortage of IT experts
    • …
    

    View Slide

98. There is no sensible alternative to going fast
    

    View Slide

99. What are you waiting for?
    

    View Slide

100. Uwe Friedrichsen
     CTO @ codecentric
     https://twitter.com/ufried
     https://www.speakerdeck.com/ufried
     https://ufried.com/blog/value_of_speed/
     

     View Slide