Every business today is under pressure from a startup that is disrupting their traditional market. We have seen this in the taxi industry with Uber[i], ATOM Bank is revolutionizing banking[ii] and Airbnb the hotel industry.[iii] The overused statement that today every business is a software business, is resonating in every industry and we are all under pressure to not only deliver faster, we must do so with quality and add value to our respective businesses.
Delivering faster requires a new model, one which features smaller changes driven through faster high-quality release cycles that leverage end to end automation. To guide the transition, infrastructure and operations (I&O) pros should employ the CALMSS competency model (Culture, Automation, Lean, Measurement and management, Sharing, and Sourcing). All team members who are engaged in the product life cycle – from individual contributors to the executive team – must master these competencies. I&O pros must also use benchmarks to assess their progress and to maintain or adjust their current DevOps competencies accordingly.
You have all heard the success stories of Uber and Airbnb as they leverage technology to disrupt existing business norms in the taxi and hotel businesses. Digital business successes such as these are pressuring traditional enterprises to focus on differentiation in business models, customer intimacy and velocity as they look to not only preserve market share, but – more importantly – to grow it! This is what Forrester calls the business technology (BT) agenda – technology investments that help your business win, serve, and retain customers.
Additionally, as an I&O professional you cannot ignore the investments, and success, with public cloud. For instance, public cloud providers like Amazon Web Services drive and deliver systems of innovation to create velocity both in new business ventures and traditional enterprises, especially in fueling mobility and web services. The investments to date are supporting the ability of the Public Cloud to support and drive innovation. Additionally, these solutions now raise the possibility of the cloud’s suitability for the next phase, transition of systems of record. This is one of the predictions in our Forrester “Predictions 2016: The Cloud Accelerates” which articulates 11 key developments for Cloud and what I&O professionals should do about them.
The “low hanging fruit” is gone – now it’s time to reach higher
The cloud is not just reshaping how companies provision technology; it's changing customers' experience. A technology platform that is easily scalable for and accessible to the billions of connected devices customers use — PCs, smartphones, tablets, TVs, cars, jet engines, and more — has allowed cloud-services companies to completely reinvent experiences. No one was using black-car drivers' idle time to disrupt the taxi industry on a mass scale prior to Uber. Millions of customers, both consumers and business clients, have flocked to these cloud services, believing these are better experiences. The proof? The cloud computing elder Amazon is a perennial leader in Forrester's Customer Experience Index and has a market capitalization of more than $200 billion. So, the question you're probably asking is, "Does this mean that we need to build our customer interaction points in the cloud?"
I recently heard my all-time favorite excuse for why you can't disrupt yourself. It was in a session with 40 senior IT leaders of a Fortune 500 company including the CIO. Somebody brought up Uber and Airbnb, and most in the room nodded in agreement that a big company could learn a thing or two from these disruptors. That's when someone dropped my new favorite excuse: "But we can't imitate Uber and Airbnb because what they're doing is illegal."
Sure, it would be nice to just avoid taking the fast and bumpy road of disruption in favor of staying in the smooth parking lot of denial. But that's not really an option because the lessons of Uber, Airbnb, and other disruptors apply to everyone in every industry.
I don't mean to sidestep the legal question, but I do mean to point out that it's hardly the issue here. Uber and Airbnb are coming under fire because they're using cheap technology and existing resources to make their customer's lives dramatically better, one positive experience at a time. That's the real issue here, and it's the one companies of any size should focus on.