March 24, 2016
Traditional organizations cannot keep up with the pace of innovation, says global IT consultancy Sogeti’s trend lab VINT. According to the firm, a wholly-owned subsidiary of Capgemini Group, their employees are not engaged and they are lacking real customer centricity.
“New practices on how to run the organization are gaining momentum,” the firm states in a new report entitled Mastering Digital Disruption with DevOps. “Management innovation, and in particular the practice of DevOps, are revolutionizing the way organizations are managed. And that is needed, because in this business disruption era there is no way that old fashioned management styles can lead to newly gained market success.”
According to the report, Nasdaq, American insurance company Nationwide, retailer Target, Western Union and the Australian airline Quantas are all doing DevOps.
“This holistic approach of running an organization not only optimizes the collaboration between development side (Dev) and the operation side (Ops) of a company, it also forms a blueprint for mastering disruptive innovations in the market,” said Menno van Doorn, co-author of the report.
Another example of a company doing DevOps is the Dutch ING Bank, which is implementing what is called “The Spotify Model”; a DevOps way of working that has been introduced at the music service company Spotify.
‘NG has substantially accelerated its innovation with DevOps. Their time-to-market for new functions and ideas was reduced from more than 20 weeks to approximately four days. It has led to risk reduction: the test coverage rose from 20% to 80% and the overall risk decreased. And customer satisfaction of the app rating for ING apps in the app store went from one to 4.5 stars.”
“DevOps is hotter than ever, even though its name might not reflect that,” van Doorn said. “But what it stands for covers the whole spectrum of what organizations need to do to be successful in this business disruption era.”
Big Bang market introductions of new services like Uber were the wake-up call for many incumbents. The new report states that there are no easy fixes to fight, survive, let alone ‘thrive’ digital disruption. A trip to Silicon Valley, buying a startup, starting an incubator, sandboxing, or fighting startups in court is not enough. The DNA of the company, its culture and bureaucracy need to change. Management innovation is the only sustainable way to fight disruption.”
“It’s the end of management as we know it. Multidisciplinary teams, self-organization and a minimum viable bureaucracy are some of the principles that make organizations keep up with startups,” said van Doorn.
“The black swans have arrived, and more of them will come. Organizations need to work on their DNA in order to deal with that reality.”
Last report in a series of 4
The “Design to Disrupt” research from VINT includes a series of four reports. The first report, “Design to Disrupt – An Executive Introduction” marked the start of the research project. The second report, “The new digital competition,”analyzed the new digital competition from fast-moving, agile startups growing their business with the speed of light through disruptive innovation. The third report, “Blockchain: cryptoplatform for a frictionless economy”, concentrated on Blockchain and Bitcoin.
The latest report can be downloaded via http://bit.ly/1SubOqS