September 26, 2023

Discuss the impact of four forces in your company.

Assignment Part 2: Group Submission.

This is a group project (3-4 students), the Group need to choose a company from the list below and make a study about the company for their virtual business processes. Answer for the below questions with their related practices.

Maximum Grades: 16

Submission Due Date: 28/10/2023

9.http://www.jarir.com

Guidelines for the assignment:

üThis is a group project (3-4 students), which is part of your course score. It requires effort, research, and critical thinking.

üNumber of words for each answer should be 175 to 200 Words.

üUse font Times New Roman, 12 font sizes. Use 1.5 line spacing with adjust to all paragraphs (alignment).

üThe answers can be combination of paragraphs and points with subheadings.

üThe Answers of this Assignment can include Charts, Tables, images and relevant Snap shots. Etc.

üUse the same Question word document format for submission with answers filled.

üEnsure that you follow the APA style in your project and references.

üYou must check the spelling and grammar mistakes before submitting the assignment.

üUp to 20% of the total grade will be deducted for providing a poor structure of assignment (Structure includes these elements paper style, free of spelling and grammar mistakes, referencing and word count).

üAssignment must be in Word format only NO PDF

üYour file should be saved as Word doc [Example]: [Your Website Name] [CRN] ECOM 425 – Assignment Part 2.doc

Questions

1.Discuss the impact of four forces in your company. (4 marks)

Four Forces: customer behavior, technological change, business models and social impact.

(Week-2-Book-1 -Chapter-2)

2.Narrate the importance and application of Swarm intelligence in your business.

(4 marks)

(Week -5 ,BOOK-1-Chapter6 -Strategy)

3.As per your business study, describe the digital operation model in detail (4 marks)

4.Discuss about the challenges of ‘Customer journey transformation’. (4 marks)

(Week -5 ,BOOK-1-Chapter6 -Strategy)

Requirements: Question

College of Administrative and Financial Sciences

E-commerce Department

Assignment : Part 2

Assignment Part 2: Group Submission.

Maximum Grades: 16

Submission Due Date: 28/10/2023

https://alrajhibank.com.sa

https://eddy.com.sa

https://en-sa.namshi.com

https://www.almarai.com

http://www.salam.sa

https://www.saudia.com

https://www.mobily.com.sa

http://www.jarir.com

https://www.sabic.com

Guidelines for the assignment:

This is a group project (3-4 students), which is part of your course score. It requires effort, research, and critical thinking.

Number of words for each answer should be 175 to 200 Words.

Use font Times New Roman, 12 font sizes. Use 1.5 line spacing with adjust to all paragraphs (alignment).

The answers can be combination of paragraphs and points with subheadings.

The Answers of this Assignment can include Charts, Tables, images and relevant Snap shots. Etc.

Use the same Question word document format for submission with answers filled.

Ensure that you follow the APA style in your project and references.

You must check the spelling and grammar mistakes before submitting the assignment.

Up to 20% of the total grade will be deducted for providing a poor structure of assignment (Structure includes these elements paper style, free of spelling and grammar mistakes, referencing and word count).

Assignment must be in Word format only NO PDF

Your file should be saved as Word doc [Example]: [Your Website Name] [CRN] ECOM 425 – Assignment Part 2.doc

Questions

Discuss the impact of four forces in your company. (4 marks)

Four Forces: customer behavior, technological change, business models and social impact.

(Week-2-Book-1 -Chapter-2)

Narrate the importance and application of Swarm intelligence in your business.

(4 marks)

(Week -5 ,BOOK-1-Chapter6 -Strategy)

As per your business study, describe the digital operation model in detail (4 marks)

Discuss about the challenges of ‘Customer journey transformation’. (4 marks)

(Week -5 ,BOOK-1-Chapter6 -Strategy)

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021CHAPTER 1: The Death of Business as UsualCHAPTER 2: The Four Forces of Connected ChangeECOM425 –Department of E-Commerce|ةيلاملاو ةيرادالا مولعلا ةيلكWeek -2-Part -1 -The current Business and Change requirements.

Learning Objectives -The Death of Business as Usual•To create an organization that can continually change at a pace that matches the changes around it.•To build the capability to identify and realize value for your customers and business through digital.•Focus on your organization’s ability (and willingness) to learn, unlearn, and relearn. •Understand the capabilities that will define you as a company in the future.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncBusinesschangeThecurrentbusinessfacedownchallengesandrespondtochange.Thechangehumanbehavior,emergingtechnology,andtheavailabilityoffundsandinvestmenttocreateentirelydifferentbusinessmodelsThe stories of Blockbuster, Kodak, Nokia, and a host of other legacy businesses are the examples of unsuccessful at riding the wave of business changes.Nokia didn’t “fail” in the mobile phonemarket. Having started life as a paper mill in 1865, it made successful leaps through electricity, rubber, cable, and communications to later own more than 50% of global market share of smartphones. When it needed to leap again, Nokia stalled and stumbled. It wasn’t able tobuild a platform business or to surround itself with an expansive ecosystem of apps, content, information, and entertainment. Its digital moat had dried up and it was unable to resist the incursions of new competitors.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc4OpeningCase:Nokiadidn’t“fail”inthemobilephonemarket.Havingstartedlifeasapapermillin1865,itmadesuccessfulleapsthroughelectricity,rubber,cable,andcommunicationstolaterownmorethan50%ofglobalmarketshareofsmartphones.Whenitneededtoleapagain,Nokiastalledandstumbled.Itwasn’tabletobuildaplatformbusinessortosurrounditselfwithanexpansiveecosystemofapps,content,information,andentertainment.Itsdigitalmoathaddriedupanditwasunabletoresisttheincursionsofnewcompetitors.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncLand‐based transportation -Industrial RevolutionTwo inventions❑ThefirstisThomasNewcomen’s“atmosphericsteamengine”of1711,enabledtheprofitableextractionofcoalfromfloodedminesandpoweredeverythingincludingthetransportationofpeople.❑ThesecondisCarlBenz’sMotorwagen,which,in1885,becamethefirstcartorealisticallybepoweredbytheinternalcombustionengine.Teslawasfoundedin2003,andUberin2009.Theserepresentthemostsignificantrecentdisruptionstoourunderstandingofland‐basedtransportation.Tesla and Uber Tesla were not the first in their fields but became dominant players: despite the existence of other electric cars, Tesla’s made popular impact while Uber’s significance was to deliver ride‐sharing on a global scale.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc6Business Transformation•Thesignificantfourforcesdrivingthedisruptivechangesinthecurrentdigitalevolutionarerapidchangeinconsumerbehavior,technology,businessmodels,andagrowingawarenessoftheimpactthatbusinessandtechnologyhasonsocietiesandourenvironment.•RayKurzweil’s“LawofAcceleratingReturns”,citedthatthetechnologicalevolutionisexponentialandnotlinear.•Digital business transformation is an ongoing commitment to adapt in line with changing customer needs and shifting industry landscapes.•ThesourcesofcompetitiveadvantageidentifiedbyWarrenBuffettasthebasisforcompaniesas“economicmoat”.Successfulbusinessesarevalue‐centricandcreatedvaluewithsomecombinationoftheircoreproductsandservices,brand,economiesofscale,andefficiencies.•Softwaredevelopmentandmanagementiscontinuousandeverevolving,addingnewfunctionalityandchangesasareactiontocustomer,business,andmarketdemands.Warren Buffett –Business philanthropist According to Warren Buffett, economic moat refers to a business’s ability to maintain competitive advantage over its competitors to keep up its long-term profits.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc7Digital Assets and Liabilities•In digital organization, the SPEED capabilities are:Strategy, Product, Experience, Engineering, and Data.•Digital becomes an asset than an enabler to realize the value.Digital Business Transformation: Why It’s More Than Just Technology•Businesses acquiring technological capabilities alone not be sufficient to face the digital challenges.•The competitive advantage of digital companies include integrated set of capabilities, what they able to create with those capabilities and the cultural principles.•Digitallycompanieschallengeestablishedbrandsinplatformbusinessmodels,networkeffects,convenience,agility,andcustomerexperience.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc8For Avatar movie ,James Cameron partnered with Microsoft to create Gaia, a cloud‐based platform that processed and gave the movie’s distributed team access to the massive amounts of data being generated for the film. Gaia became so critical to the movie, producer Jon Landau said, “Without Gaia, we would not have been able to do the production. Gaia was the backbone that everything else ran on top of.”Digitally companies consistently challenge established brands in platform business models, network effects, convenience, agility, and customer experience. These are the outcomes of their “digital moat” –the competitive advantage created through their digital capability.Example for Digital native companies -Walt Disney Company’s launch of Disney+. Bob Iger, Disney’s CEO, had spoken about the importance and challenge of maintaining “relevance” and being open to disrupting yourself.Disney+ will need to nurture and support an operating model that will continuously evolve and create value over time.

Learning Objectives -The Four Forces of Connected Change•How to identify and incorporate shifting customer expectations?•Is strategy for technology gives an understanding of customer needs and behaviors?•How are the physical assets, communities, and experiences utilized to counter incursions by digital, platform‐based competitors?•Can we articulate our purpose in the world?

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc10The Four ForcesThefourforcesofconnectedchangethatmovementinonecanaffectanyoralltheothers.Eachoftheseforcesisundergoingradicalchangeinthemselvesandascombinedfundamentallychangingthecommerciallandscape.•Customer behaviors,•Technological change,•Business models, and•Societal impact.Customer BehaviorsIn Digital Age -“The customer is always right” , this is due to a general shift in power dynamics between companies and their customers.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc11The Shifting Power Balance to Consumers•Convenience, personalization, and experience are key measures of customer value•The balance of power has moved from companies to customersCustomers, using digital sources to make their purchasing decision, expect things to be connected, secure, and easy to use; for brand experiences to be “frictionless” and to work, flow, and center on their daily lives; that products and services will make their lives simpler and more rewarding; and for technology to work in a seamless way.Ecosystem Evolution•In the digital age, one of the biggest shifts is ecosystem evolution. The best experiences that consumers have define the experiences they have across other sectors.•The customers can communicate and influence each other to make or break the reputation of businesses.•Thedigitaltoolsincustomerhandallowtheminstantaccesstoinformationinatransparentanddemocratizedmarketplacethataidstheirownpurchasingdecisionandallowsthemtoinfluencethepurchasingdecisionsofothers.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc12Technological ChangeTechnologyistheenablerthatallowsbusinessestoidentifyandunlockcustomervalueandtoconnectwiththem.Technologychangescreateimpacts:Howwecreateefficiencieswithinourbusinessesandindustries,howwebringproductsandservicestomarketatspeed,andhowwegatherinformationandunderstandingofourcustomers.TechnologyandtheCustomerExperienceTheaccelerationincomputingpower,inparallelwitharapidlyandradicallyimprovinginterface,furtheradvancedthefunctionalityandusabilityofthesetechnologies.Theculturalandtechnologicalgroundworksofestablishedcompaniesareoftenthebiggestdeterminantsofwhethertheyarereactiveinsteadofproactivewithregardstotechnologicalchange,andineffecttochangestothecustomerexperienceandexpectations.The progression of mobility –both in terms of the devices and the ability to connect anywhere –has freed us to choose how and where we work, access information, and form relationships and communicate with others.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc13The Role of Data•One of the biggest technology challenges and opportunities for companies is around data.•The creation of middleware technology platforms that connect data in a more meaningful way in the context of a customer journey.•Cloud computing provide computing power and storage.•The digital technologies have an improved and connected understanding of customer needs and behaviors, and the ability to serve those customers with relevant products and services.Today, the organizations recognize the need to understand that customer in a more rounded sense. They benefit in their ability to retain that customer in the longer term, to upsell or cross‐sell more effectively.Cloud‐based systems to evolve to mean a great deal more to businesses today. Cheap storage easier to store information centrally; computation power behind the storage; and the ability to access the information and to be connected from wherever you were.Reduced management emphasis allows more time to focus on what your core competence is about. It will benefit to newer, agile digital competitors and their ability to enter your market.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc14•Need to decide what and how to transform and, in the process of that transformation, to determine which technologies to invest to differentiate from competitors.•The platform business model –and the technology giants predicated on this model –is one of the greatest business phenomena of the digital age.•The platform business model in which technology allows the platform to scale quickly and provides for the network effect.•Need to understand the limitations to take up business‐critical technologies and to overcome those limitations.Business ModelsAs technology evolves exponentially, the gap between organizational change and technological change becomes wider. New competitor enters your market along the curve of technological change. The technology and the opportunity gives themtheir disruptive business model.Platform business models and the network effect matter because they disrupt industries and, for established businesses, what they do can be difficult to replicate.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc15Societal Change•Today, there is no hold to a single company, there are wider set of choices and influence the perception of a company to millions of other people. •The customer, their relationship to the business, and their expectations are different.The Role of Purpose•The ability to adapt and transform to the rapid digital change, in order to remain relevant and protected from competitive risk, is crucial.•The three measures –financial, social, and environmental –are the legs of triple bottom line (TBL) accounting used by the leading businesses.•Purpose about why they need to change. “Why are we doing this?” “Is this essential?”.•Digital business transformation isn’t a destination, it’s a journey.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc16Today, we live and work in an age of transformative change, shaped by technologies that are rapidly and fundamentally altering the way we experience, interact with, and make an impact on the world.Example :Lego defines its vision as “A global force for establishing and innovating learning‐through‐play.” Lego’s mission, separate from its vision, is equally powerful: “Inspire and develop the builders of tomorrow” and is supported by four promises around people, play, partners, and planet.John Elkington, the writer who coined the term “triple bottom line” back in 1994, is today working with a new 3Rs framework. Responsibility, Resilience, and Regeneration are the considerations for a digital era, where self‐disruption and innovation by businesses and across value chains become an essential part of the new system.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc17“Be, Say, Do”The action oriented digital world draw connections about, what a company exists to do, what it says, and the actions it takes.The organizational transformation need to connect to their purposeBeyond the company andthe customer ,a modern business is more accountable for the partnership or supply chain network.Dimension of society and responsibility to people who are outside a company’s customer‐partner‐shareholder ecosystem entirely.

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021Chapter3:WhatIsSlowingDownEstablishedBusinesses?:Blocks,Brakes,andBehaviorsChapter4:CharacteristicsofaDigitalBusinessECOM425 –Department of E-Commerce|لاملاو ةيرادالا مولعلا ةيلكةيWeek-2 –Part-2-Need for Digital business Transformation

Learning Objectives -What Is Slowing Your Business Down?ECOM425 –Department of E-Commerce•To know how the top‐down decision making directly conflicts with their ability to evolve at pace with the changes around them.•To understand about the organizational silos and emphasis on distinct areas of expertise versus the collaboration across them.•To know the importance of Legacy system replacement.•To know the importance of investments for Digital transformation•To implement the transformative change beyond the thinking of value and culture.•To understand the need of new ideas adoption.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncIntroduction:Organizations(tobecomefaster,moreagileandtobeinadigitalworld)needtoidentifytheblocks,brakes,andbehaviorsthatperpetuate,andthereasonswhywedothat.Establishedcompanieshavegrownupwiththedecisionmakingdonebythetopoftheorganizationalpyramid.Inthesoftwareworld,decisionmakingisarealchallengebecausethescaleofdecisionmaking,therateofdecisionmaking,andthetest‐and‐learnideasareofanentirelydifferentorderfromadigitalperspective.Asperthebook,thethingsthatareholdingtheorganizationbackare:Top‐downdecisionmaking,Organizationalsilos,Legacytechnology,Short‐termism,Talentshortages,Valuesandculture,“Notinventedhere”

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncTop‐down Decision Making•Thetraditionalapproachofbeinglinear,deliberative,andconstructingahierarchyofdecisionmakingtoenablescaleisamongthemostseminaloftheblockstochange.•Today,theprocessforcreatingvaluethroughdigitalisiterativeacrossmultiplecapabilitiesandcreatingtheabilitytorapidlytestandlearnisessential.•Theneedtodayistomakedata‐drivendecisions,constantly.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncCaseStudy:OrganizationalSilos:TheChiefDigitalOfficer(CDO)ataleadingbankmadeacommentthathasalwaysstayedwithme,“ThegreatestimpactIcanhaveinthisorganizationishelpingthemrealizethatiftheindividualcapabilitieswithinourbusinessunitsdon’tworktogether,we’llneverbeabletoscaletodosomethingtransformationalandwillonlyeverbeabletomakeincrementalchange.”Itwasaprofoundinsight,andshowedanincredibleclarityofpurpose.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncOrganizationalSilos•People’sdrivers,theiragendas,andtheirabilitytoprocessinformationareallafactorinhowsuccessfulanorganizationwillbeattransforming.•Howquicklyasinglepersoncanprocessinformationisoneofthegreatlimitationsofdecisionmakingtoday.Decision‐makingtoolssimplifyandpresenttheinformationtomakethedecisioneasier.Complexenvironmentsofhighchangethathavecertainbehaviors.•Thefirstispsychologicalsafety,whereyouretreattowhatyouknowisgoingtocreatesafetyforyouandyourorganization.•Thesecondistodecideabouttheprimaryfocusistoprotecttheinterestsofyourteamoryourself.Organizational silos and divisional interests operating against the best interests of the companies we work for or with. They are prevalent and certainly are not unique to your experience or business.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncLegacyTechnology•“Legacy,”inthecontextoftechnology,“outofdate.”•Reasonforlegacysystemsnonreplacement:Theyarebig,complex,andthecostaswellastheriskofreplacingthemleadstoacrucialinvestmentdecisionbeingdeferred.•Theriskandcostapproachisa“houseofcards”approachtotechnology.•Technologiesevolveindifferentplacesandatdifferentrateswithinabusinessisthatbudgetaryresponsibilityforthetechnologyisalsosiloed.

Short‐termism•Thefocusofestablishedcompanies,bothprivateandpublic,isonthisquarterlyearningscycle.•Anestablishedbusinessislikelytotakeapresent‐stateapproachtoinvestmentandnottoinvestthatwillnothaveasignificantimpactonrevenueandprofitability.•Thepresentcostofinvesting,ignoringthefuture,stored‐upcostsofnotinvesting,theeffectofwhichcancompoundovertimeinthedigitalage.ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncAmazon famously spends more than $16 billion on research and development, reinvests revenue into future growth, and is relatively relaxed about how quickly its investments turn a profit.Short -termism : A consequence can be the avoidance of risk, the need to show ongoing and growing profits, to maintain PE ratios and EBITDA performance, and to deliver dividends accompanied by high share prices.

Talent ShortagesEstablishedcompany’sskillgapsareinAIanddatascience,notenoughexperiencedpeopletomeetthedemandforwhatare,andwillbe,vitalelementsofcompanies’potentialtoidentifyandrealizefuturecustomervalue.Theabilitytoattractandretainthebestdigitalandengineeringtalentisatwofoldchallengeforindustryleaders.•First,theyareincompetitionwithleadingdigitalbusinesseswhichmayalreadyhavestrongcultures,capabilities,andwaysofworkingandarethereforeattractiveemployersfortalententeringtheworkforce.•Second,thetechnologyskillsthatweneedinourorganizationsarechangingrapidly,andtheriskisinvestinginthewrongkindoftalent,orthatevenifyouinvestintherighttalent,youareunabletoretainthem.Needofcontinuousreskillingandupskillingyourexistingtalent.The World Economic Forum has estimated that at least 133 million new technology roles will have been generated globally between 2018 and 2022and that 54% of all employees will require significant reskilling and upskilling. Global organizational consulting and talent firm Korn Ferry estimates that, by 2030, the technology sector alone will have a skills shortage of 4.3 million workers.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncValues and Culture (and Purpose)•Acompanywithadistinct,deep,andunifyingcultureandvaluesisastrongcompany.•Acompany’scultureandvaluesareoftenareflectionofitsorigins,provenance,andfounders.•Asuccessfulorganizationtodayneedstoembodyaclearreasontoexist,inlinewithcustomerneeds.•Theabilitytoadaptandtransformtotherapidchangebroughtaboutbydigital,inordertoremainrelevantandprotectedfromcompetitiverisk,iscrucial.The culture and values that are defined and lived by a tight‐knit group of executives can manifest themselves as entrenched thinking and methods, which generate the greatest of brakes on transformative change.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc“Not Invented Here”•Historicallysuccessfulcompaniestrytomirrorandrepeatthatmadeitsuccessfulinthefirstplace.Theyareatthegreatestriskoflosing.•Itistheirmarketleadershipandthepressuretosustainshort‐termgrowthinrevenueandprofitthatleadsthemtospurnnon‐orthodoxopportunities.•Adigitalentrantadoptsnewideasandexperimentedwithuntilanotherstrongideacomesalongthatimprovesuponwhatwentbefore.Orthodoxy is an obstacle, a great, muscular beast of an obstacle that will almost always stand obstinately between you and whatever it is you want to change.

Learning Objectives -Characteristics of a Digital Business•To know what the business serving, what problem solving, and for whom?•Understanding of your organization’s value to the customer, and consequently understand that value to the business.•To transform multidisciplinary covering everything from product and policy, to people, operations, and technology.•To become a technology company, regardless of the industry you operate in.•To use data and AI to constantly evolve and refine your businessECOM425 -E-Commerce Department

The Inconvenient TruthThe inconvenient truth is that most companies are great at their core business, but not great at reimagining the future of their business.Many of the top companies of yesterday have been overtaken by those that were born digital or that have digital at their core.Figure:shows a comparison of the top five US companies by market capitalization in 2001 and today.To succeed by evolving to be relevant in the world today for us and for the generations to come.The challenge is to develop the vision as well as the road map to get there; to identify opportunities for disruption, but also to understand how you will go about delivering it; to identify and remove the obstacles to transformation that exist within your business, while replacing them with the qualities and behaviors of a digital‐at‐the‐core organization.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncDecoding What Digital Companies Do WellAn established organization struggles to put the same emphasis on this aspect of experience as a digital native does –almost instinctively.Established businesses, find doing the same things very difficult in their current context and in opposition to their existing structural, operational, and behavioral constraints.Tinder is a useful reference to consider as we start to decode what it is that makes the most successful digital businesses today and identify the qualities that they share in common.Figure 4.2shows six things that leading digital businesses consistently do very well. The first quality that they share is to have a very clear idea of what need they are serving or what problem they aresolving, and for whom. The reason that clarity is so powerful is because it allows them to focus. It allows them to be the thing that they were born to be.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncFigure:Shared qualities of leading digital businessesFigure 4.2shows six things that leading digital businesses consistently do very well. The first quality that they share is to have a very clear idea of what need they are serving or what problem they aresolving, and for whom. The reason that clarity is so powerful is because it allows them to focus. It allows them to be the thing that they were born to be.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncDecoding What Digital Companies Do Well ..Contn.•TheFigure:Sharedqualitiesofleadingdigitalbusinessesshowssixthingsthatleadingdigitalbusinessesconsistentlydoverywell.Thefirstqualitythattheyshareistohaveaveryclearideaofwhatneedtheyareservingorwhatproblemtheyaresolving,andforwhom.•Digitalbusinessesarealsoveryquicktounderstandthevaluetothecustomerofwhattheydo.Theyareveryclearonwhatthebenefitoftheirproductorserviceistotheuser.•Adigitalbusinesswillquicklygofrom“wearecreatingthismuchvalueforthecustomer”to“hereisthevaluetousinourbusinessandhereishowwecanbevalued“.Leadingdigitalbusinessesfocusondesigningtheexperience.•Leadingdigitalbusinessesunderstandthatthereisadirectlinkamongvaluetothecustomer,valuetothebusiness,andqualityoftheexperienceandtheyareapplyingdata,AI,andmachinelearningtokeeppacewithchangesincustomerexpectationsandneeds.•Companiesareconstantlylookingattheinputstheygainfromcustomersandusingthatdatatorefineandevolvetheirbusiness.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc17To constantly evolve their business ,that’s where it is identified those adjacent opportunities, those areas of growth where the businesses that started in one place but morphed into another in order to be successful.They are powered by engineering. They understand that if you’re a bank you are in fact a software company. If you’re a retailer, you’re a software company. If you’re a healthcare provider, you’re a software company. That is because, when engineering and technology are core to how ideas are conceived, all ofthese businesses are intrinsically able to turn them into reality.Their engineering capability and mindset provide them with the final quality of a leading digital business: the ability to continually refine themselves using their data and inputs.

Decoding How They Do ItTo effectively transform a business, leaders need to look at their business model as whole asFigure:End‐to‐end transformationBy widening our lens of transformation to include multiple facets of the business, it becomes easier to identify a point of untapped expectation within the customer journey and use that to illuminate a path of transformation across the whole enterprise.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncDecoding How They Do It ..Contn.The true potential of transformation today lies in value, differentiation, and productivity: three metrics representing a strategic shift in mindset from project to product. A product improves constantly to serve consumers’ wants and needs.Figure :Factors impacting the “experience” of ecommerce in retail-illustrates the factors in play when a retailer considers its ecommerce experience: not just what the customers sees but everything within the business that impacts the experience.Organizationsthinkaboutthebroaderexperience,theirorganizationandoperationsinasinglesliceandthenask,“Howcanwereinvent(toreflect)that?”That’snothowtheywerebuilt,althoughthathasbeguntochange.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc20Amazon is a good example of a company that does this well. Each step in the brand’s evolution has marked a significant iteration and disruption of its own business, technologies, processes, and people, all the while remaining an evolutionary journey of their core idea. How? The organization sees both its platforms and services as products, continuously improving and deploying new versions and business lines by using data in ways other companies have yet to consider. This approach –a combination of data aggregator and disruptor –is what allows the brand to inject itself into people’s lives in a way that consistently eases wants and satisfies desires.For Amazon, the experience might be Prime Now, and it means my product is delivered to me within a couple of hours. If you think through, this not as a consumer but from a business perspective; it introduces significant complexity to operations from a scale and agility perspective and changes to logistics and the supply chain in order to deliver on this promise. You see, even for Amazon, it’s not easy. More established companies than Amazon, this voluntary disruption in order to evolve their business is an even harder concept to understand and to implement.Organizations don’t think about a customer journey that cuts across user experience, the broader experience, and their organization and operations in a single slice and then ask, “How can we reinvent (to reflect) that?” That’s not how they were built, although that has begun to change.

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021Chapter-1-The Big PictureChapter-2-Tech @coreECOM425 –Department of E-Commerce|لاملاو ةيرادالا مولعلا ةيلكةيWeek-3 -Organizational Responsiveness and Technology

Learning Objectives -The Big Picture •EDGE is an operating model that connects strategy to delivery.•To focus Customer value is an outcome rather than an output.•To modify your fitness functions to encourage the responsiveness you desire.•Building capabilities for the future, from technical ones to portfolio Prioritization.•To know the importance of customer value and adaptability.

Digital EnterpriseECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Digital enterprise transformation is the Fourth Industrial Revolution.Questions for attaining the complete Digital enterprise:•How are you responding? •Do you have your digital strategy in place? •How do you plan to “realize” that strategy? Is your enterprise getting incremental outcomes in a world of exponential opportunities?•Whether your goals are for your organization to become a digital enterprise, foster widespread innovation, or implement a digital strategy, is your transformation vision thwarted by poor execution?Digital enterprise : An enterprise that is transforming itself to meet the challenges of our postindustrial Digital Age, by embracing an adaptive culture, employing technology at its core, and creating new business models.EDGE is not an acronym, but an expression that reminds us of the challenges, messiness, and excitement of transforming into a digital Enterprise.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.4Transformation from the Industrial Age to the Digital Age: -Leveraging technology and creating new business models are important.-Technological advances generate opportunities, however enterprises’ capabilities—from developing a digital strategy, to portfolio management, to software delivery—often struggle to keep pace.-Transforming requires continuous innovation and fast adaptation to the changing environment.

AN OPERATING MODEL.▪Theenterprisesmaysufferfromstrategicmisalignmentbetweentheirbusinessandtechnologyfunctions.▪Theoperatingmodelthatstandsbetweenvisionanddelivery—thecriticallinkthatisoftenmissing.▪EDGEfocusesonbuildinganenterprisethatcanrespondquicklytocustomers’needsandemergingtechnologybydefininganoperatingmodelthatbridgesthisstrategy–deliverygap.Figure : EDGE: An operating model.“They have developed next-generation operating models that provide the speed, precision, and flexibility to quickly unlock new sources of value and radically reduce costs. The operating model of the future combines digital technologies and process-improvement capabilities in an integrated, sequenced way to drastically improve customer journeys and internal processes.”—João Dias, David Hamilton, Christopher Paquette, and Rohit Sood, “How to Start Building Your Next-Generation OperatingModel,” McKinsey Insights, March 2017The three fundamental questions about your transformation: (1) How should we work together?; (2) How should we invest?;(3) How can we adapt fast enough?

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.6Building Organizational Responsiveness-Severalagile/leanscalingframeworksfocusonplanningforandbuilding“bigger”things.-Thestrategymustbebrokendownintoaportfolioofsmallpiecesofvaluethatcanbeprioritized.-Thisisthemodelofhoworganizationscanbetterpursuenewandexistingmarketopportunitiesanddeliverhighervaluefortheinvestmentmade.Figure :Building a responsive organization.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.7Toward a Customer-Value Fitness Function•Customer value is the key driver that will lead to improved ROI.•A fitness function summarizes a specific measure to evaluate how close a solution is to achieving a stated goal.•The fitness functions or business goals (Table) from pre-digital to digital times have changed from focusing on ROI to focusing on customer value.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.8Contn…•Customervaluehasbothtangible(financial)andintangiblecomponents,intangiblesarecriticaltolong-termsuccess,andtheabilitytodelivercustomervalueisacriticalcapabilityformostcompanies.•Thecustomervalueandspeed/adaptabilityastheprimaryobjectivesandROIandcost/efficiencyasconstraints.•Thebusinessfitnessfunctionshavebeentransitioning,thetechnologytransitionhasbeenmovingfromcostandefficiencytospeedandadaptability.

9Gap in Enterprise sustainability-Thegrowingopportunity–capabilitygaphasbecomeacriticalissueforexecutiveleadership(Figure).Overcomingthisgaprequiresinnovativethinkingandputtingtechatyourbusiness’score,fromstrategytodelivery.-SwitchingITfromacost/efficiencydrivertooneofspeed/adaptabilityrequirescourageoustechnologyleaders.-Customervalueiskeytothepresent.-Adaptabilityiskeytothefuture.Figure:Thewideninggapbetweenopportunitiesandthecapabilitytoexploreorexploittheseopportunities.A product (or service) is what you deliver to a customer to capitalize on an opportunity. A capability is how you build what.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.10Final Thoughts –Big Picture•Anoperatingmodelthatconnectsstrategytodelivery.•Thenumberoffeaturesthatadeliveryteamproducesisanoutput,whereasthevaluethattheydeliverisanoutcome.•Fundamentalchangemustbedrivenbycourageousexecutiveswhoaresupportedbycourageousleadersatalllevels.•Thefundamentalapproachneedcanbesummarizedintwosimplewords:Envision–Explore•MovingintotheFourthIndustrialRevolution,duetouncertaintyandtheneedforspeedandinnovationisthedominatingforce,portfolioandprogrammanagementmustbemuchmoreresponsivethanthepast.

Learning Objectives -Tech @core•To determine Tech@Coreas a centerpiece of your digital transformation•Understanding of how technology might impact organizations.•To understand the gap in technology knowledge between technology and business groups

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.12A Digital Enterprise: Technology at the Core 1.Tech@coremeansthattechnologyisyourbusinessnomatterwhatyourbusiness.2.Figure2-1suggeststhatthetransitionfromtechinasupportingroletoTech@Corefollowedalinearprogression.3.Long-termbusinesseswillhaveportionsoftheirtechnologyassetsineachofthesecategories,theiroverallapproachtotechisthekey.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.13Developing a Technology StrategyAgilists plan and they document, but not certainly turn the process into a lengthy, document-centric one. Fast feedback, iteration, and learning , communicate and collaborate are important in product development.To broaden and strengthen your technology capabilities, you need to take the following steps:•Shift your technology fitness function to speed and adaptability. •Accelerate your technology edge over competitors.•Maintain awareness and take advantage of technology shifts and trends. •Develop a digital technology platform strategy. •Reduce technical debt to increase speed and adaptability. •Get your key tech staff involved and constantly improving their capabilities.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.14A tech capability strategy should be derived from your enterprise vision and goals. Clear capability goals also require new measures of success (measures of adaptability and speed): You can’t expect a different outcome if you keep old measurementsIn developing your tech strategy, you also need to analyze three types of time horizons—continuing the existing business, growing new opportunities, and experimenting with future opportunities.As long asyour enterprise operates on a ROI fitness function, transforming it into a digital enterprise will be a nearly impossible quest.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.15Seismic Shifts and TrendsShifts and trends evolve together.•Sometimes a series of trends indicate a seismic shift, sometimes shifts begin to emerge independently, and some trends don’t fall within a specific shift.For each shift and trend, you need to acquire, analyze, and formulate a variety of data: • Signals: What are you seeing that is indicative of this shift? • Business impact: How might this shift affect your enterprise? • Horizon—what is the time horizon for the trends within this shift? • Urgency: How urgently do you need to react to this trend?• Technical impact: What capabilities will you need to implement your strategies? • Actionable advice: What advice will you offer your enterprise on how to approach and use these shifts and trends?

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.16Creating a Tech Radar The figure shows one of the four quadrants—techniques, platforms, tools, languages, and frameworks. The location on the rings of the radar indicate actions—adopt, trial, assess, hold.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.17• Adopt: Ready for use now. It has been proven through use on projects and general industry acceptance. • Trial: Ready for cautious use. It is not completely proven, so use on carefully selected initiatives. • Assess: Up and coming. It should be followed closely and used experimentally. • Hold: Getting industry attention but not yet, or maybe ever, ready to use. It may be flawed and might be viewed as something to avoid.Creating a Tech Radar.Contn.. At each of the levels, you ask critical questions relative to advancing the technology to the next level. Only a few will make it through each stage: Some will be abandoned, and some placed into a hold status. You need to limit work-in-progress (WIP) for each stage. Limit the number of things you’re assessing or trialing at any one time and make it clear to teams if another team is already assessing a technology so they can quickly ask and learn how that trial is going. This might be considered a kind of governance for learning.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.18Reducing Technical DebtTechnical debt is the degradation of technology over time due to a lack of investment in maintaining adaptability and quality.•Figure 2-4 shows how this kind of degradation starts out slowly, but then accelerates as time passes.11 More than a few legacy systems are now essentially unmaintainable. In the early days, changes are relatively easy. As technical debt grows, the answer to the question, “Do we implement new features or do we reduce technical debt?” is, of course skewed to new features. After a few years of ignoring technical debt, enhancements can take forever and you are faced with three equally bad options: rewrite the application (which is expensive and very risky), do nothing (and the problem gets worse and worse), or work toward reducing the technical debt systematically over time.•A second problem with legacy systems is the difference in delivery cycle time between digital experience and legacy development groups.•Organizations are caught in a dilemma years in the making: Redeveloping the systems is too time consuming and risky, but building new digital assets depends on upgrades to these systems.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.19Case Study :Limits to GrowthInthemid-2000s,Salesforce.comhadasignificantchallenge:Itsrapidgrowthwasoutpacingitssoftwaredevelopmentdeliverycapability.Thedragofitslegacysystem’stechnicaldebtanditssoftwaredevelopmentprocessbothcontributedtothecompany’sproblems.ButsolvingthismultifacetedproblemresultedinSalesforcebeingnamedbyForbesmagazineasthemostinnovativecompanyintheworldfortheyears2011–2015(andinthetopthreesincethen).Salesforcecrediteditsadoptionofagiledevelopmentpracticesassignificantlycontributingtothecompany’sturnaround.Improvingthequalityofnewcodereducedtheintroductionofnewtechdebt,whileintroducingstrategiesforreducinglegacytechnicaldebthelpedimprovedeliverytimes.Ofcourse,thisfirm’ssuccesswastheresultofmultiplebusinessandtechnologyfactors,butintroducingagilityinitsmanyformswascritical.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.20Investment Decisions to Revitalize Core Enterprise Systems•Rewritingthesesystems,isanexpensiveandusuallyhigh-riskstrategy—onetobepursuedcarefully.•Fortunately,awiderangeofoptionsbetweendoingnothingandrewritingareavailable—migratingtoaservicesarchitecture(includingmicroservices),evolutionaryarchitecture,decouplingandwrapping,employingcontinuousdelivery,andmore.The need for agility in the Digital Age extends far beyond “strategic” systems, and revamping investment buckets is one way to emphasize this scope.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.21Digital Technology PlatformsBusiness platforms are enabled by digital technology platforms (DTP) as shown in Figure 2-5, you can have one without the other, though usually both are necessary in a digital enterprise.Focusing on cost drove organizations toward efficiency and productivity, which emphasize standardization as the chosen path to successs.Our strategy needs to be one of Envision–Evolve. The vision, whether for an enterprise or a product, needs to be oriented toward customer value and outcomes. It provides direction, butallows for alternative paths to completion. Since the customers may “know it when they see it,” the process needs to adjust time and time again to what we learn moving forward.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.22In our experience, the organizations that have been successful at digital transformation have unlocked their key assets by taking three steps:• Removing friction from engineering teams • Building an ecosystem around assets• Experimenting efficiently and effectively with those assetsDigital Technology Platforms. Contn..

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.23Removing Friction•Friction is usually considered as resistance to movement, but it can also be considered as a conflict between people.•There are many ways to reduce friction that focus on removing barriers to faster delivery and improving adaptability. •Another option is to correct the false tradeoff between speed and quality.Friction can also arise from using the wrong technology for an initiative. Frequently new initiatives are forced to use inappropriate technology because of existing standards.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.24Building an Asset EcosystemAn ecosystem is a system or network of interconnecting and interacting parts.First,lookateachassetclassanddeterminehowintegralthisassetclassisimplementinggoalsacrosstheLVT:•Impactsmanygoals(customerassets,forexample)•Impactsseveralgoals•ImpactsveryfewgoalsOne of the tasks you need to complete is to determine a strategy for your key technology assets or asset classes. This analysis includes three components, shown in Figure 2-6:(1) determining the asset classes’ impact on Lean Value Tree (LVT) goals(2) speculating on the rate of change of this area of the business,(3) determining the current adaptability of asset classes.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.25Second,foreachbusinesscapabilityorproductline,youneedtoanticipatethefuturerateofchange:Extremelyvolatile,Volatile,ModeratelyvolatileandRelativelystablethethirdstageoftheassetanalysisistoestimatetherelativeadaptabilityofeachassetorassetclass.•Highlyadaptable—relativelyquickandinexpensivetochange•Adaptable—moderatelyexpensiveandtimeconsumingtochange•Somewhatadaptable—difficultandexpensivetochange•Notadaptable—veryexpensiveandtimeconsumingtochange.Building an Asset Ecosystem. Contn..This kind of asset analysis is particularly important when you are prioritizing legacy systems that support Business as Usual (BAU) and trying to reduce technical debt.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.26ExperimentingOneofthepremisesofEDGEisthatadaptationrequiresexperimentation,andforthatexperimentationtosucceed,thereneedanexperimentalmindset,anexperimentalprocess,andexperimentaltools.ThesecondrequirementisanexperimentalprocessThethirdrequirementisaplatformNeedthesetechnologycomponentsforeverytypeofdevelopment—legacyback-officesystems,onlineapplications,mobileapplications,bigdataandanalyticalsystems,andapplicationswithanInternetofThings(IoT)piece.•Rather than planning, which indicates a prescriptive solution, you need to think of the future in terms of hypotheses about the future.•The second requirement is an experimental process, which for the purposes of this book is an enhanced version of agile.•The third requirement is that you need a platform, the right technology components, to experiment rapidly.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.27Who Creates Your Technology Strategy?Delivering innovative, customer-value–oriented products demands a high-trust, collaborative relationship between business and IT. Iterative, experimental processes focused on value delivery require a different mindset about “plans” and “contracts.” Teams need to adjust and adapt over time as experiments provide new learning. Trying to write a detailed, specific, compliance-based contract would be a waste of time in this environment.

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021Chapter3: EDGE PrinciplesChapter4: Building a Value-Driven Portfolio|لاملاو ةيرادالا مولعلا ةيلكةيWeek-4 -Building strategy and value -driven portfolio

Learning Objectives -EDGE Principles•To know the importance of the two key ingredients of digital transformation demands—articulated principles and trust in leaders.•To Understand the six guiding principles for applying EDGE.•To know the importance of Value Based and Governance principles.•To finding the right balance between adapting and planning.•To understand the scope of Autonomous teams and responsibility.•To know the importance of Self-Sufficient, Collaborative Decision Making

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Outcome-Based Strategy•One of the more difficult things for managers and executives to embrace in these transformations is learning to measure success differently.•EDGE advocates investing based on customer outcomes (customer value) first, and business benefits (i.e., profit, market share) second. 3The agile and lean movements have been more about principles than practices, processes, or tools.Once these value-based outcomes and their measures of success and targets have been established and shared, it’s far more effective to align groups to them.

4Your ability to adapt EDGE practices, based on an understanding of the principles, will be critical to success. The six guiding principles outlined in this chapter (Figure 3-1) are key to understanding and applying EDGE. These principles help us answer questions about investing for change, working together, and adapting quickly.The three principles on the outside loop—outcome-based strategy, value-based prioritization, and lightweight planning and governance—focus on answering the “how should we invest” question. The inner loop principles—autonomous teams; adaptive, learning culture; and self-sufficient,collaborative decisions—speak to working together and adapting fast enough.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Value-Based Prioritization•EDGE uses the term “value” to represent customer value: what a customer is willing to pay•Measures of Success should represent value at every level, from organizational goals to detailed implementation stories, so people don’t end up working at cross purposes.•This value-based approach to prioritization maintains alignment throughout the organization.•You can quickly compare it to the existing work in progress and adjust priorities. If a new idea is created as you learn about the customer’s needs, you can quickly compare it to the existing work in progress and adjust priorities.5

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Lightweight Planning and Governance•In EDGE, governance is built on agile and lean principles, from vision to delivery.•Governance provides a framework to ensure that: •Customer value goals are being met within established constraints (time, cost, and internal and external regulatory requirements). •Decision-making rights required for accountability are effectively allocated and managed.•Decision-making rights are particularly important in EDGEbecause autonomous teams take on greater decision making and accountability. This could also be considered a balance of guidance and oversight.•Governance teams need to navigate a paradox•ensuring adequate compliance to fiduciary, regulatory, and risk management needs while also moderating the burdensome overhead of traditional governance processes. •When teams are asked to be flexible, adaptive, and agile, governance processes need to mirror those goals.This means changing the measurement systems to be more outcome oriented. It doesn’t require abandoning traditional cost and schedule measures, but it does mean subordinating them to measures of customer value.6

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Adaptive, Learning Culture•EDGE advocates building quick, incremental feedback from the real world into the process.•These explorations are also a great way to reduce risk. •Adaptive leaders need to create an environment in which people feel confident enough to engage in experimentation and adjustment. 7•The feedback loops should have a cadence of weeks or months—after all, your enterprise can’t wait years to determine whether plans deliver.•Short duration, low-cost experiments provide valuable feedback, where learning is embraced as an outcome.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Autonomous TeamsIn this environment, teams should have broad decision-making authority and be accountable for outcomes delivered—not just delivery of features.what is the key to autonomy? it’s the delicate balance between self-directing work and accountability.8Autonomous teams are creative, collaborative, innovative, and empowered—and sometimes messy and unruly.This balance occurs when teams understand the desired outcome and their decision rights and have the resources necessary to be successful.

Characteristics of Autonomous Teams The best decisions and products result from teams with the following characteristics:• IndependentTeams are self-directed with clear goals and boundaries they can play within• EmpoweredTeams perceive that their decisions aren’t constantly questioned; they have a clear understanding of their decision rights• AccountableTeams feel responsible for the outcomes they’ve agreed to• CollaborativeThere is a high degree of trust within the team, and team members feel comfortable speaking their minds and working together. • InterdisciplinaryDifferent disciplines contribute to better solutions and better decisions by bringing diverse perspectives and experiences.• TransparentInformation is widely distributed and shared, not withheld9

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Self-Sufficient, Collaborative Decision Making•The best and quickest decisions are made by those closest to the work. •EDGE also helps organizations set up feedback mechanisms to ensure that even though many decisions are made at the team level, decisions are transparent; this enables leaders to guide teams.•Collaborative decision making doesn’t mean everyone is involved in each and everydecision, but rather that the process includes those whom the decision impacts.•Furthermore, better decisions, at all levels, arise from a common understanding of the desired business outcomes.10EDGE provides a means for responsibly delegating decisions to people who are closest to the information

Learning Objectives -Building a Value-Driven Portfolio•To know the importance of tree structures for enterprise planning•To learn about Management by objectives approach that had a vision, goal, and objective structure•To know the importance of strategy and Lean Value Tree.•To learn about Value-Driven Portfolio and levels of investment in funding allocation.•To study the different type of Customer Categories through three horizon model funding allocation.

The Lean Value Tree:Every enterprise, from the smallest to the largest, must sift through these opportunities to come up withfocused goals—which opportunities to pursue, which opportunities to consider further in the future, and which opportunities to abandon.The investment question has three stages:First, determine what to invest in.Second, develop actionable, outcome-oriented MoSthat clearly indicate progress as the delivery process unfolds, not at the end.Third, use the relative value of those MoS to prioritize work on the LVT items.IntroductionAs you know from experience, this is not an easy process. It requires skillful analytical ability and keen judgment. The Lean Value Tree (LVT) and Measures of Success (MoS) introduced in thisand the next chapter offer thought-enhancing tools to assist in this process.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Contn…•The LVT provides a line-of-sight to the strategic intent of the organization•The LVT becomes the linkage of the organization’s steering mechanism•As a living document, the LVT provides a line-of-sight to the strategic intent of the organization and, therefore, becomes critical input to decision making through the entire value stream.•The LVT becomes the linkage of the organization’s steering mechanism that grounds decisions in an understanding of the strategic intent and desired outcomes

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.14Case Study/ Exercise: A Telco Lean Value TreeDuringourfirstiterationoftheLeanValueTreewiththedigitalbusinessofatelecommunicationscompany,wedidaninitialtwo-hourtimeboxedassessmentwiththedirectorofdigitalproductsandportfolioowner,initiallytoevaluateourknowledgeofthecurrentportfolio.Westartedbymappingallcurrentworkinprogressagainstthegoalsofthebusiness.Duringthisexercise,wediscoveredthegoalsdidn’tarticulatewhytheywereimportantfortheorganization.Forexample,“Driveto20%marketshare”didn’texpresshowcustomerswouldbenefitfromthisinvestment.Sowespentsometimeunderstandinghoweachoftheitemsintheportfolioalignedtotheorganizationalgoals.Fromthisexercise,wewereabletoreframetheworkinflightintogroupsofcustomeroutcomeinitiatives.Forinstance,“Driveto20%marketshare”became“EnablecustomerstoseamlesslyviewliveTVandInternetTVallinoneplace.”

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.15Contn…We learned three things from this timeboxed exercise:1.By articulating the organizational goals in terms of customer outcomes, it became really clear what the value of each investment was and why it was important for the organization.2. By visualizing all work in flight, we could see that the least important initiatives were receiving the most amount of funding.This led to opportunities to rebalance the portfolio to deliver the greatest value for customers.3. By timeboxing the initial portfolio review, we were able to demonstrate the value of applying EDGE and build the case for continuing this work with the portfolio owners, business unit leads, and chief digital officer.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Strategy and the Lean Value TreeThe LVT tool is used to capture and share your organizational vision and strategy. Everything in the tree stems from the executive business vision and is framed in terms of outcomes, so the value those activities will provide to the organization is clear.The LVT, as shown in Figure 4-1, embraces the value-driven practices of lean development, as all work stems from the vision and clearly links to goals. There are no special side projects or huge programs of work. Instead, work is broken down into small, independently valuable increments that clearly tie back to an outcome. The value of each incremental outcome should be measurable.

Cont..•GOAL:-goal describes how the organization intends to realize the vision.Goals are relatively stable views of the high-level business strategy and are expressed in terms of desired outcomes, rather than specific solutions, product ideas, or features. Ideally, goals articulate the desired customer outcome that will enable the organization to achieve its vision.•BETS :-A goal consists of a portfolio of bets.Each bet is a hypothesis of value that the organization believes will help it realize a goal.•If bets don’t support achieving the goal, they don’t belong in the portfolio.Conversely, every bet necessary to achieve the goal belongs together under the goal in the tree. In this way, we establish the mutually exclusive, collectively exhaustive (MECE)1 nature of the LVT. An enterprise can continue to invest in the bets that further a goal and cease to invest in those that don’t.•INITIATIVES:-An initiative describes what to build to prove out a bet.Initiatives typically take the form of a series of smaller hypotheses (or experiments) that have a clear measure of success, based on which teams can make decisions on whether they’re able to prove or disprove the hypothesis.•An initiative differs from a project, in that projects typically spin up and ramp down to execute a plan and build features within a fixed end-date.Whereas initiatives have a running backlog of hypotheses that are continuously reprioritized. Completion is defined by achieving the desired outcomes, rather than by completing all the activities in the plan. This is a very important mindset change—from focusing on outputs to focusing on outcomes.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Describing a Value-Driven PortfolioA portfolio node for a goal, bet, or initiative should:• Have a name • Identify its relationship to other nodes • Have a goal owner or owner team • Have a description (expressed as a desired outcome) • Identify potential challenges and opportunities • Have one to three measures of success • Identify potential sub nodes

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Cont…Each node (goal, bet, or initiative) of the LVT describes a portfolio; the linkages between each node show which nodes are related to each other. The following guidelines suggest which information should be represented at the goal, bet, and initiative level. This information should be visual, should be easily accessible to anyone in the organization, and lays the foundation for successful governance during periodic value reviews.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Strategic Portfolio Ownership•EDGErecommendsmovingdecisionsasclosetotheworkaspossible,soweofferthefollowingguidelinesforownershipanddecisionrightsofthevariousportfoliolevels•Thisalignswellwiththeirtypicalresponsibilitiesofdevelopingstrategyandallocatinginvestmenttosupportthatstrategy.•Foreachinitiativeinthebetportfoliodescribedbythebetteam,responsibilityisdelegatedtoaninitiativeteamNow, with clearly defined portfolios, you can delegate decision rights for each portfolio (i.e., each node in the LVT) to those people who are best equipped to make the decisions required to achieve the desired outcome.The executive team should create the vision and goal levels of the LVT. As mentioned earlier, vision and goals should be relatively stable and provide the foundation for communicating the strategic intent of the organization.The delivery team makes the decisions within the initiative and is accountable to the bet team to produce the desired outcome (MoS) within the bounds of the funding granted by them.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Evolving the Lean Value TreeThe executive team is responsible for adding new goals or revising goals on the LVT.Trees grow new limbs from time to time, sometimes in places you didn’t expect. Goals, like limbs, should be regularly reviewed, and should be modified or removed when market insights change or are added as new opportunities emerge.The value realization team (VRT) and the executive team collaborate on these changes.The value realization team (VRT) and the executive team collaborate on these changes, using the periodic value review as the primary forum for these discussions.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Adding a New Goal•New goals can arise from multiple channels: •Strategic planning: industry, competitor, and customer analysis •Feedback from bet owners and their teams •Executive vision and inspirationPotential goals should be examined in depth by a preliminary goal owner team and staffed with people who can bring different experiences and domain perspectives. That goal owner team should develop a broad view of the goal and make initial observations on possible bets and MoS.By doing so, it can develop and share high-level insights. This information enables the executive team to decide whether to take on this goal.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Cont…Once a potential goal is well understood, the organization has multiple options available: • Add it as a new goal to the LVT • Merge it with an existing goal • Add it as a strategic bet under an existing goal • Send it back to the preliminary owner team for further development • Drop the goal • Keep it on the goal or bet backlog for future considerationGoals adopted by the organization need a permanent ownership team that’s responsible for adjusting the bets and MoS as needed and for reviewing the strategy developed by the preliminary team.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Adding a New Bet or InitiativeBets should be reviewed and updated more frequently than goals.The proposal process is repeated for initiatives within betsThe updated LVT and supporting details should be common working knowledge at all levels of an organization.They can be added, eliminated, or adjusted based on progress (or lack thereof), changes in relative value ranking with other bets on the backlog, or expansion of the scope or funding for a goal.The publishing of that information is coordinated by the VRT and requires executive team and owner participation to evangelize and explain how things have changed and why.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Funding AllocationInvestment segmentation primarily reflects executive team judgment on how best to further the vision. Judgment is a key input in this process. Traditional investment allocation schemes are typically based on detailed ROI projections.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Cont…Goal and bet owners should collaborate on the budget allocation to bets and initiatives that support the goal. This is one of the major shifts in thinking in EDGE: There’s a transition from approving specific pieces of work and solutions to funding desired outcomes.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Portfolio CategorizationCategorizationAlternatives•Customertype/marketsegment•Three-horizonsmodel•Producttypes•Geographic/marketarea

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Cont…Customer Type CategorizationCustomer type categories are shown in Figure 4-8. For example, in wealth management settings, customer types could be advised customers versus non-advised customers, or customer segments using demographics such as age, location, and net worth. You might also use buckets for millennials and baby boomers.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Three Horizon Model CategorizationMcKinsey’s three-horizons model9 (shown in Figure 4-9, with the allocation shown in Figure 4-10) is designed to highlight the difference between near-term investments that expand current business operations (horizon 1) and future-focused investments that are more speculative. Horizons 2 and3 focus on transformative business opportunities, which, though often not “urgent,” are very important for long-term survival.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Product Life Cycle CategorizationManagement literature contains a large variety of 2 ×2 matrices for evaluating products. One that has been around for a long time is the Boston Consulting Group’s BCG Matrix10 (shown in Figure 4-11, with the allocation depicted in Figure 4-12). It is based on product life cycle theory. Other matrices may fi t better in specific situations.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Geographic/Market AreaLarge companies may allocate investments based on their physical locations (or defined market areas (Europe, Great Britain, Asia), as shown in Figure 4-13 .

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021Chapter 5: The Big Hairy Audacious Goals (BHAGs) of Digital Business TransformationChapter 6: StrategyECOM425 –Department of E-Commerce|لاملاو ةيرادالا مولعلا ةيلكةيWeek-5 -Digital transformation and Strategy

Learning Objectives -Characteristics of a Digital BusinessTo understand the two BHAGs of Digital Business Transformation that will keep the business heading in the right direction.•Goal 1: Developing the Muscle of Continuous Change (the PS How)PS(Publicis Sapient)•Goal 2: Building the Capability to Identify and Realize Value (SPEED)ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc

Introduction :Established businesses need to do something differently and searching for answers to questions: How do you make the leap forward into digital while taking your teams with you? Where do you begin? For those who have already started, where do you go next?The first step is to be very clear about the goals of any digital business transformation. The reality is that teams are made up of people who process information differently.Companies often lose their way is when they make bets on a capability, acquire a company, or even launch an innovative new product without connecting fundamental ideas.3ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc

The Two BHAGs of Digital Business TransformationDigital business transformation is aimed at driving two outcomes:1.Creating an organization that can continually change at pace with the changes around it.2.Constructing the capability to identify and realize value through digital for your customers and businessEvery action, large or small, should ladder up to these two ideas while supporting the specific vision and outcomes in the organization.Goal 1: Developing the Muscle of Continuous Change (the PS How)•The idea of creating an organization that can continuously change.•Simply set their transformation activities in the context of both navigating change and creating value.4ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncIn their bookCompeting Against Time,authors George Stalk and Thomas Houtintroduced the idea of time as the most powerful source of competitive advantage.1In a world that is rapidly evolving, the idea of managing time as a strategic asset and creating the systems and ways of working to accelerate responsiveness, adaptability, and speed to market is incredibly relevant. In fact, this concept is so important that Tim Cook recommends this book to every Apple new hire.

5ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncFIGURE 5.1 The Publicis Sapient “How” frameFigure5.1.InthePublicisSapient“How”layout,howvalueisidentifiedandrealizedcontinuouslyinadigitalbusiness.•Ithasfiveactivitiesthatcanhappenconcurrently:Ignite,Hunt,Shape,Incubate,andBuild&Scale.•Dependingonwhereyouareinyourjourney,youcouldcomeinatanyofthesepoints.Forthesakeofsimplicity,wewilltaketheminorder.Ignite:•Whyistransformationnecessary?•Howhavetechnologyandchangingcustomerbehaviorsimpactedmyindustry?•WhatdoIneedtochangeinmyownbusiness?

6ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncThe Hunt activities :•Identify the potential customer and business value pools. •Dig into how customer needs are evolving and how that influences “where to play” and “how to win.”•Client Says -“don’t tell me what I can do”, show me.•Hence ,prototypes are playing an increasing role in both visualizing what’s possible and helping stakeholders come along on the journey.•The reality for most businesses is Hunt will not just produce one set of activities. It will create a portfolio of moves that will need to be prioritized and coordinated.

The Shape activities :Donebycreatingtestablehypothesesforeachvaluepoolandthenusingdata,research,feedback,modeling,andanalysistechniquestorefineyourhypothesisandprobetheconsequencesofyourinvestmentchoices.Incubate:•CreateMinimumViableProducts(MVPs)andtesttheirviabilityinthemarket.•Starttestingproduct‐marketfit:isthismeetingtheneedsofcustomers?Whoistheprimaryaudience?Howmuchmonetarypotentialisthere(whetherinrevenueorcost)?Build & Scale:•The MVPs that were piloted are now scaled to the desired audience(s).•Another set of activities that feed back into the continuous Hunt for value.•Start to build the muscle within your organization to operate in a state of constant change. 7ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc

8Goal 2: Building the Capability to Identify and Realize Value (SPEED)Constructingthecapabilitytoidentifyandrealizevaluethroughdigital.Thedynamicsarenotsometangentialoptionsthatmanufacturerscanoptinoroutof;theyarefundamentaltohowthisindustryisevolving.CEOsareincreasinglycenteredonhowtheircompaniestransformandwherevalueiscreated.Example–Apple:Bycreatingaplatformwheredeveloperscouldlaunchnewappsandexpandingfromthere,Applecreatedamuchwiderdigitalmoatarounditsbusiness.The fundamental capabilities that you will continue to build on and evolve to create powerful digital products, services, and experiences. These are your SPEED capabilities:•Strategy: developing and testing your hypothesis on priority value pools•Product: evolving at pace and scale•Experience: how you can enable value for customers•Engineering: delivering on your promise, at pace and at scale•Data: validating your hypotheses and uncovering insights for constant iterationToday’s cars are as much about software as they are hardware. How does my car connect to the rest of my life? How is it designed to capture my habits and needs? And then, how does the data comingback from the car factor into an iterative design of the car itself? If you think about the dealership model, cars can now be delivered like groceries.

Learning Objectives –Strategy•Tounderstandtheroleofstrategycapabilityintheorganization.•Theneedofjumpinthedirectionofanentirelynewbusinessmodel•Tofundaportfolioapproachtodefend,differentiate,anddisrupt.•Apartnerecosystemiskeytounlockingvalueforyourcustomersandyourbusiness.ECOM425 -E-Commerce Department

SwarmintelligenceSwarmintelligence,wheredecentralized,self‐organizingplayersoperateasacollective.Swarmintelligenceandstigmergyaremostcommonlyappliedinadigitalcontexttothefieldsofartificialintelligence(AI),machinelearning,androbotics.TheRoleofStrategyTheprimaryorientationofstrategywithinmostcompanieshasalwayscenteredonvaluecreationthroughcompetitivedifferentiation:theclassic“wheretoplay”and“howtowin.”Whentheprimarycompetitivethreatsbegan,itcreateduncertaintyanddisruptionaroundtraditionalcompetitiveanalysis.Theprimarystrategicfocusmustbeonyourcustomer,andyourvalueisnotjustintheanalysis,orevenindevelopingaroadmap,butratheritisinyourabilitytotest,learn,refine,andsuccessfullybringtomarket.10ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncIn the 1950s, a scientist named Pierre‐Paul Grasse introduced a new concept within social insect societies called “stigmergy.”1 What he observed was that when one of the insects veered from the rest of the group, it left behind traces in the environment that actually changedthe future actions of the rest of the group.

CaseStudyexample:Thelate1990swhenAmazonwasjustanonlinebookseller,partofitssitedesignwastoincorporatereviewpageswherecustomerscouldcommentonbooksandexchangeideas.Bythelate1990sandearly2000s,thosereviewsbecameakeycompetitiveadvantageforAmazon.Bythemid‐2000s,BusinessInsiderestimatedthatthe“Wasthishelpfultoyou?”featureonthewebsiteaccountedforover$2.7billioninrevenuealone.Today,it’shardtoimaginepurchasingjustaboutanythingwithoutareview,whetherit’sonaretailsiteoroneofthemultitudeofYouTubevideosonanythingfrombuyingtoothpastetobuyingacar.11ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncFIGURE 6.1 Evolution of business purpose statements

12ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncAnchor Strategy on Your Customer, Not Your Competition“Whatisourwinningaspiration?”haslongbeenthestartingpointofstrategicanalysis.Thistiestothepurposeandvisionoftheorganizationandthequestionsthatdetermine“Whodoyouwanttobe?”and“Whatvaluedoyouaimtocreateintheworld?”Customer‐orientedvisionstatements(Figure6.1)arethemostpowerfulbecausetheyanchortocustomerneeds,whichinturncanbeusedtoshapeyourdigitalvision.Thecombinationofconnectingthepurposeservedinacustomer’slifetothesolutionscancreatethroughyourdigitalcapabilitiesbecomesaspacefertilewithtransformationalopportunity.

13ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncDetermine“WheretoPlay”byLookingatYourMarketDifferently(theD‐3Model)Inearly2020,ThethreequestionsthatPublicisSapientwantedtohelpanswer:•Whatparametersordefinitionsshouldweplacearound“digital”and“digitaltransformation”?•Whatroleshoulddigitalplayinourentirebusiness/valuechain?•Whatisrequiredtodeliveronthedefinedambition?•Whatiscriticallyimportanttorecognizeisthatthesearenottechnologyquestions;theyarequestionsaboutcompetitiveness.Indigitalbusinesstransformation,“wheretoplay?”isnotaquestionjustofmarketsandcustomersegmentsbutisaboutmakingexplicitchoicesthatwilldeterminethekindofvalueaimedtoproducethroughyourdigitalcapability.Therearethreewell‐definedpatternsinwhatwerefertoastheD‐3model:defend,differentiate,ordisrupt,illustratedinFigure6.2.The choice of which of these paths best fits a company’s transformation perspective will have a direct correlation to its capabilities as well as to the value pools it is able to pursue.

14ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncFIGURE 6.2 The D‐3 Model:Defend, Differentiate, Disrupt

Contn..Theprimaryfocusisonservingyourexistingmarketsandaudienceswhileleveragingbestpractices.Companiesinvestinspecificsolutionsthatwillallowthemtokeeppacewiththeirtraditionalcompetitors:programssuchasinvestinginecommerce,digitalmarketing,oroperationalIT.Differentiationcanbeaveryrichopportunityspaceformanyorganizations.Thispathcantakeyoufromadvancingyourexistingprocessestoablurringofthelinebetweenyourdigitalandphysicaloperations.Disruptiswhereyoustarttoleanintothefullscopeofdigitalbusinesstransformation.Whatsetsdifferentiationanddisruptionapartisthatwhenyouchoosetodisruptyouarecreatingnewmarketsandaudiences.Disruptionalsorequiresyoutoreachthedecisionthatyouarefundamentallygoingtochangethewayyourcompanyoperatesandproducesvalue.15ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc

16ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc“How to Win”: View Your Transformation as a Portfolio of MovesAnorganization’sstrategycapabilityplaysacriticalroleinsettingitstransformationobjectivesinthecontextoftheeconomicmodelofthebusiness.TheFigure6.3illustratesthedifferentvaluepoolsthatcanbeaddressedaspartofatransformationprogram.Thesevaluepoolscancenteronthecustomer,thebusiness,oramixandcanincludecostmeasures,capabilityinvestment,andinnovativegrowthopportunities.Figure6.4-Threemodelsoftransformationemergedforhowthebankcouldapproachthechallenge,whichweighedtheimmediatethreatwiththelonger‐termtransformationneeds:evolve,attack,orjump.Theevolveapproachfocusedonthelong‐term,takingamoregradualapproachtobothgrowthandcost‐reductiontransformation.Attackinvolvedlaunchingapropositiontogoafteranewsegment,provideanewservice,orenteranewgeography.Thefinalmodelapproachwasmorefocusedonbottom‐linethantop‐linegrowthandwassignificantlymoreaggressivethantheevolvemodel.Thejumpallowedthecompanytotargetastep‐changeinoperationsandcustomerexperienceandjumpdirectlyintonewstrategicplatformsandwaysofworking.

ECOM425 -NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next 17Publicis Sapient was working with a large retail bank that was facing immediate competitive threats from fintech start‐ups. At the same time, the bank was aware of the need to transform within its existing business but faced the same challenges that many established businesses face around legacy technology, practices, and culture.Through evolve, the bank could address its capabilities, ways of working, and start to transform through a focus on customer‐centric value streams.Attack focused on driving top‐line growth through an independent business that was intentionally partitioned from the core of the bank. This would give the necessary flexibility to design and operate it like a digitally native company, and to move quickly to address the fintech threat.The final model was jump where the bank could create a highly optimized shell of the model that they wanted to migrate their current business into.

FIGURE 6.3 Customer journey transformation18ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc

FIGURE 6.4 Three models of transformation19ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc

Build“Your”Capabilities:ThePartnerEcosystemStrategyhasalwaysplayedadirectroleinchoicesabouthowtobuildcapabilities:frommergersandacquisitions,todecisionsonhowtobuildinternally,topartnershipchoices.Astherateofchangehasincreased,itisimpossibleforonecompanytoholdallthecapabilitiesthatitneedstoinnovatesolutions.Thisiswherepartnerecosystemsplayanimportantroleoncreatingadaptability,innovation,andscale.First,customerneedsarecontinuouslyevolving.Co‐creationhasbecomeanincreasinglypowerfulapplicationofthepartnershipecosystem.Partnershipecosystemsarealsomultidirectional.Intellectualpropertyandacceleratorassetsareanotherkeyconsiderationinthedesignofapartnershipecosystem.20ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc

ECOM425 -NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next 21Publicis Sapient has an ecosystem of partners such as Adobe, Google, Microsoft, and Salesforce that we leverage to expand what we can bring to clients. These partnerships are not just about implementing technology; they are built around intellectual property that addresses specific customer solutions.As you move up the spectrum of defend, differentiate, and disrupt (D‐3), the role of your partnerships will likely expand. If your focus is on defending, your partners may play a key role in value creation for your business by improving the systems and ways of working for your teams. If you are differentiating, partners can connect in new capabilities to round out differentiated offers for customers. At the disruption level, partners can become equals in the creation of platforms that provide mutual benefit to both parties.An environment that is rapidly evolving, partnership ecosystems provide access to talent and capabilities that may be difficult to acquire and scale.Partnership ecosystems provide access and stickiness to customers as well as customer insights that go beyond any of their individual players.

22ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncCase Study : Apple’s Strategy to Enter the Car Industry”Theautonomous,connected,electric,andsharedmobilitymarketisexpectedtotransformmasstransportationandtheglobalautomotiveindustryby2030.Astheinfrastructureisinplace,Applecouldutilizethisecosystemtohelpestablishitspresenceintheautomotiveindustry.Apple’sentryintotheautomotivespaceisexpected.Applecouldtakeaproduct-oraservice-focusedapproachwithProjectTitan.Apple’sentryintotheautomotiveindustrywillhelpitcompleteitsecosystemcomprisingdevices-software,cloudstorage,andhomekittherebyofferingseamlessaccesstopersonaldatabothathomeandonthemove.WhatisAppletryingtoachievebyenteringintotheautomotivespaceandhowwoulditdisrupttheautomotivesector?

Bringing Products to Market: The Elusive Product‐Market FitThelevelofcorporatestrategy–coveringthehigh‐levelchoicesthatacompanymakesonwhatitwantstobe,whereitwantstoplay,andhowtogetthere.Strategycertainlyplaysacoreroleatthislevel,butitalsoplaysacentralroleincreatingthegroundinghypothesisonhowtobringproductsandservicestomarket.StrategyplaysapivotalroleincreatingtheNorthStartoguidethechoicesforthebusiness,whilepartneringwithothercapabilityareastocreateproductsthatmeettheneedsoftoday’sconsumersthroughcompellingbusinessmodels.23ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncIn October 2018, the analyst firm Gartner made a bold prediction. The company claimed that, by 2030, 80% of financial firms will either go out of business or be rendered irrelevant by new competition, customer behaviors, and advances in technology.5Today, banks face a new set of competitors including non‐bank financial institutions and fintech companies that are disrupting the financial services landscape. The key reason for their success is their ability to anticipate customer needs and deliver the right products and services that traditional providers are too slow to create, also known as anticipatory banking.

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021Chapter-5-Measuring and Prioritizing ValueChapter-6 -Building a Product MindsetECOM425 –Department of E-Commerce|يلاملاو ةيرادالا مولعلا ةيلكةWeek -7 -Building Measures and Product elements

Learning Objectives -Measuring and Prioritizing ValueTo understand the importance of Measures of Success (MoS)To identity Measures of SuccessTo know about the leading and lagging MeasuresECOM425 –Department of E-Commerce

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.3Why Measures MatterMeasuresthataredefinedandarticulatedcorrectlybecomeapowerfulwaytoshapetheworkthatwillhelpachievethedesiredoutcomewithoutconstrainingcreativity.TherearethreeprimaryreasonsforusingMoSinEDGE:•MoShelpleadershipshapeandalignthework,withoutprescribingaspecificsolution.•MoSreplacedeliverablesastheprimarydescriptionofwhatisexpectedfromtheteamdoingthework.•MoSareusedthroughoutthedeliveryprocesstodemonstrateprogress,prioritizework,andsupportdecisionmakingonincrementalfundingTeams need to adjust and adapt over time as experiments provide new learning. Trying to write a detailed, specific, compliance-based contract would be a waste of time in this environment.

Identifying Measures of SuccessIdeally, MoS represent customer value—a measurement of something a customer sees as valuable.Outcomes that the organization desires, but a customer does not directly recognize as valuable, are called “benefits.”ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

Cont…The differentiation between customer value and internal business benefit is another important step in transitioning to a customer-centric view of your enterprise.•Customer Value MoS, such as delivery time (order to receipt) and customer satisfaction, are good measures of outcomes that represent customer value•Business Benefits Revenue, profit, market share, and time to market are measures of benefits that are desirable to the organization, but not something a customer sees as valuable.•Activity Measures should be used within teams only to enable learning and continuous improvement. Measurements of activity should never be used to evaluate goal, bet, or initiative valueECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

Leading and Lagging MeasuresTherearecertainlyrisksinfocusingonleadingindicators:Youmaymakeerroneousassumptionsabouttherelationshipbetweentheleadingindicators(inputs)andthelaggingindicators(outcomes).•Were that to happen, you’d be steering your initiatives with leading indicator MoS that looked good, butwon’t achieve your desired outcome.•Our recommendation is that you use leading indicator MoS only when you have high confidence in the correlation between those measures and customer value. If you don’t have that confidence, then design some of your early activities to prove your hypothesis, before committing substantial investment. Figure 5-3 depicts how customer value, business benefit, and activity measures align on the LVT.Measures are often characterized as either leading or lagging indicators.

Learning Objectives -Building a Product Mindset•Tounderstandtheproductmindsetthatstressesdeliveringcustomervalueinthepresentandadaptabilityforthefuture.•Tounderstandthepeopleandproductinorganization.•TounderstandtheProductsandtheConnectiontotheLVT.•Tounderstandabouttheproductelementsanditsblueprint.•Tounderstandaboutminimumviableproduct(MVP)andcharacteristics.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

Introduction•Productsarethevehiclesthatdelivervaluetocustomers.•Productpeopleencourageteamstodeliveracontinuousstreamofvalueovertime.MovingfromProjectstoProductsToenableproductthinking,theremustbeashiftfromthetraditionalwaysofdeliveringaprojecttoevolvingaproduct.•Turning an initiative into an innovative product that evolves over time requires a product mindset that stresses delivering customer value in the present and adaptability for the future.•A balancing act that pushes team members to make good decisions. Considering a continuous stream of value helps prioritize both current and future investments.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

The Role of Product People in Organizations•Theexpectationisthattheproductwillbetheconnectorbetweenwhatcustomersvalueandtherealizationofbusinessbenefits.•Thisrolebecomesthegluebetweenportfolioowners’assumptionsandtheteams•The key difference between a project and a product is that products have a customer and expected value. This definition of product focuses the delivery team on the value they are delivering.•While this paradigm shift has important organizational structure and design implications, the emphasis in this chapter is on why the product mindset is important in delivering a value-driven portfolio.

Important Product Skills•Creator and champion of the vision.The product person works closely with stakeholders to understand the business direction and shapes a vision for how the product might help the organization deliver on the strategy.•Builds organizational alignment of the vision and direction.The product person aligns the delivery team to the organizational goals. It’s easy for teams to lose sight of why they are building something.•Embodies coaching and not gatekeeping.•A self-sufficient team should be empowered to make their own decisions as a team and to contribute their unique perspectives of the problem.•Advocate for the customerProduct people believe in the value proposition because it will deliver something that customers will love . They understand users’ pains and delights, and use this understanding to make informed, forward-thinking decisions.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.11•Keeper of the process and evangelist for the product mindset.Product thinking involves using Measures of Success to guide teams toward making sound decisions that focus on value. A good process enables teams to think and act creatively, rather than emphasizing throughput and features delivered.•Thinks beyond the immediate MVP to set a direction for the product.The product person facilitates organizational understanding of the current focus of investment and the promised value, while articulating the future needs of the product and hypotheses of value. •Translates customer needs into requirements and facilitates building the product backlog.Defining and slicing the requirements so that work can be prioritized at a more granular level is an important skill in the delivery of value. There will always be instances where lower-value options could be selected for development.

Product and Portfolio Team Collaboration•Feedbackloopsmustexistbetweenportfolioowners,whomakeassumptionsofpossiblevalue,andthedeliveryteams,whichareresponsiblefordeliveringtheassumedvalue.Thisisadifferentwayofworkingthantraditionalapproachesbecauseitsnotaskingstakeholderstofeedteamsafeatures(orsolutions)list,buttoempowerteamstosolveacustomerproblemorneedandcomeupwithasolutionthathasbeenvalidatedwithcustomers.•Assomeorganizationsmovetomoreautonomousteamsandagilepractices,thelinkcanbelostbetweenexecutives’desiredcustomervalueandthedeliveryofthework.Theautonomousteamreliesheavilyontheroleofproductasthe“glue”thatbringsdiverseperspectivestogetherandalignsthemwiththeportfolioteamandcustomerexpectations.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

Defining Products and the Connection to the LVTThissectionfocusesonhowworkisfurtherbrokendownfromtheLVTtoproductblueprints,andthenhowproductblueprintsconnecttoagileproductbacklogs.Theseframeworks(seeFigures6-2and6-3)becomethebackboneforcreatingflowandalignmentfromexecutiveleadershipstrategicintenttotheteamsthatdelivervaluetocustomers.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

How Products Are Derived from the LVT•When a bet or initiative is first defined, it comes with many assumptions about the expected value. This section describes two possible ways that a product would exist in the LVT: •as a new product that doesn’t exist today (i.e., an initiative in the LVT) •as potential product enhancement to an existing product.Initiatives and Products•For new products that don’t exist in the current portfolio of products offered by the organization, a product will be an initiative as defined in the LVT.•bet is a hypothesis of value and initiatives are a way of testing the hypothesis.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

Bets and ProductsThe goals of a discovery workshop are to create a shared understanding of the bet and how the product will achieve the bet and to co-create a path forward for the team.The discovery workshop marks the beginning of a relationship and ongoing dialogue between the delivery team assigned to the initiative team and the portfolio team.A discovery workshop should include the following things: • Rationale for the goal, bet, or initiative• Supporting evidence of the market opportunity • Landscape/competitor analysis• Financial assumptions • Organizational analysis • Validation of fundamental assumptions that are likely to change product direction • Ideation of potential ideas and ways to achieve the outcome • Hypotheses identification for future validation • Defined measures of success

Breaking Down Bets into ProductsSincebetsarehypothesesofvalueandframethealternativedirectionsforachievingthegoal,betsshouldnotspecifyaproductsolution.Instead,theyshoulddescribetheintendedapproachtowardthegoal.Fromthedefinitionofthesebets,thediscoveryworkshopfocusedonacross-functionalteamideationexercisetocomeupwithpotentialproducthypothesesofvalue.TheresultsareshowninFigures6-4and6-5.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

Defining the Product•Deciding“howmuch”productdefinitionisnecessaryisn’talwayseasy.Herearesomeguidelinestodeterminewhetheryouhaveenoughtomoveforward:•Haveyouidentifiedthekeyhypothesesthat,ifinvalidated,wouldcauseachangeindirectionfortheproduct?Areyoucomfortableinmovingforwardwhileknowingthesehypotheseswillneedtobevalidated?•Aretheoutstandinghypotheseswellcommunicated,visible,andunderstoodamongthestakeholdergroupanddeliveryteam?ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

• Do they understand what is needed to validate each hypothesis, including the timing, impact, and potential changes in direction? • Are the appropriate risks and dependencies communicated? • Consider timeboxed planning to avoid going too far in a particular direction.There is a common myth in the agile community that if we are “agile,” then we don’t need to plan up front. A product blueprint is less a detailed plan or detailed definition of the product, and more a high-level map that guides teams in a direction. It is not a detailed step-by-step plan of how to get there.Cont…ECOM425-Jim Robert Highsmith, Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional..

Core Elements of a Product Blueprint•Information conveyed in a product blueprint can vary. depending on the type of product and where it is in the product life cycle. The types are:There should be articulation of how this product fits within the broader business and technical context of the organization.Alignment to Organizational Goals on the LVT•Elevator Pitchis a concise overview of which problem the product solves and how it creates value in the marketplace.•Key Measures of Success The product blueprint should contain customer metrics that describe the success of the product as well as the desired business benefits from this initiative•Hypotheses Validated or to Be ValidatedHypotheses are assumptions about the product that have either been validated or are still to be validated. It is good practice to have a history of the key product decisions made over time, what’s been proven or disproven, and key learnings.•Target Customers and Their Needs A product blueprint describes who the customers are and why the product is needed by these customers.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.20Target Customers and Their Needs A product blueprint describes who the customers are and why the product is needed by these customers.•Customer Goalsrepresent a desired customer outcome. A customer goal has a series of steps required to complete the goal.•Customer Journeysdescribe an end-to-end customer experience. The reason we use customer journeys instead of a list of features is because customer journeys go beyond the digital product.•Prototypes That Bring the Product Vision to LifeA prototype can be anything from a whiteboard sketch to a digital mockup of the experience to an early build of the product.•Competitive Advantageis the articulation of the competitive advantage that the organization will receive from investing in this product.•Customer Adoption Plandescribes the customers who have been identified as early adopters of the product, as well as the potential sequencing of customer groups that will be participating in feedback sessions or have agreed to be part of pilot releases

What a Product Blueprint Is and Is Not•A product blueprint is a communication tool.•It’s an agile product backlog, or product roadmap and not a detailed plan. •A product blueprint is never static.•A product blueprint should not be the mechanism to hold product teams accountable.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

Visualizing and Communicating Product BlueprintsThere are many ways to visualize a product blueprint and articulate the information represented in a product blueprint.In terms of format, visual tools such as PowerPoint presentations, physical prototypes, wireframe mockups, and customer storyboards are the most effective.Creating Agile Product BacklogsThe process of further breaking down the LVT from products to an agile product backlog, which sets up the delivery team to begin implementation and further validation of hypotheses.One of the key benefits of further breaking down a product into a backlog of work is that it empowers teams to prioritize based on customer value, not plan too far ahead, and solicit incremental feedback from customers as well as internal stakeholders and the portfolio team.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

Why MVP Is Just a Starting Conversation•Whencoachingteams,weoftenseeateamengaginginlengthydebatesaboutwhattheMVPofaproductshouldbe.OneoftheproblemsistheviablepartoftheMVPdefinition.Itisoftenassumedtomeancommerciallyviable.AtthetimeofdefiningtheMVP,youarelikelytohavemorehypothesesuntestedthantested.Inturn,spendinglotsoftimeupfrontdefiningaviableproductisusuallyjustwastedeffort.•OneofthebigtrapsthatteamsfallintowhentryingtodefinetheMVPisfeaturebloatItisfunctionsoftheproduct,suchasabilitytoprintareportandthetemptationtocovereverysingleedgecaseoftheproduct.e.g.,saveareport,modifyareport,shareareport•MakingthepiecesoftheproductevensmallerthantheMVPandapplyingarapidtest-and-learnapproachalleviatestheprecedingconcerns.Theseproblemscanbeavoidedbythinslicingtheproductintoaseriesofvaluableexperiencesforthecustomer.Likewise,deliveryteamsgainconfidencethattheyareheadedintherightdirectionastheyapplyaniterativeapproachtobuildingand“checkingin”withcustomers.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

Thin Slicing: An Alternative Approach to MVPAnalternativetousingMVPisdefiningworkinthinslicesofvalue.•A thin slice is typically smaller than the definition of MVP (there are many thin slices within an MVP) and is released to a smaller subset of customers as an early pilot. A thin slice of the product is prioritized to facilitate maximum team learning.•It is often about defining multiple releases prior to releasing the MVP (see Figure 6-6). Typically, multiple thin slices can be released for early feedback from a pilot set of customers, long before the MVP is available.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

Architectural ConsiderationsThefirstthinsliceofaproductenablesdeliveryteamstobringforwardtechnicalunknowns,risks,andcomplexitythatenabletheproposedarchitecturetoevolvewhileprovingouttechnicalassumptionsandapproaches.Drivingathinslicedownthroughthearchitecturallayers(seeFigure6-7)allowsteamstoproveoutapproachestointegration,testing,anddataintegrity.Teamsarethenabletovalidatecoreassumptionsearlier,andtherebyprogressonapaththatenablesmorerapidbuildandrelease.Chapter2,Tech@Core,describestheprocessofcreatingatechradarforincorporatingtechnologytrendsandreducingtechnicaldebtaspartofthisevolution.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021ECOM425 –Department of E-Commerce|يلاملاو ةيرادالا مولعلا ةيلكةWeek -8 -Integrating Strategic and BusinessChapter 7 -Integrating Strategic and Business as Usual Portfolios

Learning Objectives –Integrating Strategic and Business asUsual PortfoliosTounderstandthecriticalcomponentsofworkthatneedtobeaddressed:workfromyourstrategicLVT,worktomaintainorenhancecurrentBAUsystems,andworktoenhanceanddevelopcapabilities.Tounderstandaboutthebacklogsandcomponents.ToknowtheCustomizationandadaptationisanimportantpartofEDGE.ECOM425 –Department of E-Commerce

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Back to RealityThereareanumberofquestionsyouneedtoaddressinthisrealitycheck:•Whichworkflowcomponentsneedtobeprioritized?•Howdowebalanceprioritiesfortheseseeminglydisparatecomponents?•Integratingstrategicandbusinessasusualportfolios•WhatkindsofMoSdoweuseforBAUitems?•Whatarethefactorsthatmaketheapproachoutlinedinthischaptereffective?Even if you plan to spend, say, 15 percent of the budget on new initiatives, short-term demands and the raw magnitude of the BAU budget will often pull resources away from your new initiatives.

Integrated Backlogs•One of the advantages of agile software development comes from the team’s ability to focus on a few valuable things each iteration.•Teams produce more value when they have a well-prioritized backlog of work to pull from as they are ready.•Productivity suffers in any team, whether agile or not, when priorities are unclear or when items are injected into the work stream from unplanned sources. Frequent task switching and lack of an effective way to prioritize work both adversely impact effective work time.•This type of work has been known by many names—break/fix, maintenance, bug fixes, patches, and others.•Typically, this work is pushed onto the delivery team because they are the obvious choice to change their own code. Certainly, this is a correct assumption, but the team wasn’t planning for this work and taking it up jeopardizes their existing commitments to new strategic features. In the alternative case, these small but unscheduled changes may be handled by a maintenance team, which creates another set of problems.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Cont…•This prioritization problem plagues every team attempting to deliver software. It gets worse when you consider the tech debt that accumulates during product development and maintenance.•Small changes that are valuable and don’t take a lot of time to deliver, it seems as if it makes sense to just “slip those in” the next release.•Each delivery team would have a backlog for its initiatives. Under a bet there might be two initiatives, each of which is assigned to a different team, so that each team would have its own backlogThe cumulative effect slows the team down and makes development more challenging. Eventually, this reaches a nexus when the team is forced to deal with the sins of their past. Tech debt consumes their capacity and reduces, at least temporarily, the value they deliver to their customers. These customers are not happy that they are not getting many new features in the next release.Of course, that also impacts the planned work schedule. All ofthese types of work are important and have tobe addressed, but without the typical unpredictable impact on the planned work.At the next level up, each goal team would have a backlog of prioritized bets. However, the emphasis in this chapter will be on the initiative backlog used by delivery teams.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Backlog Components•The components of a backlog are Strategic, Defects, Technical Debt, Small Enhancements, and Technical Capability. •Each of these components takes time and needs to be prioritized.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Strategic•The bottom level of the LVT contains strategic initiatives that are broken down into stories that incorporate the product ideas.Business as Usual•Every organization has legacy systems.•We refer to this nonstrategic work as BAU and break it down into three main types—small enhancements, defects, and technical debt.•The advantage of putting BAU items on the LVT is that your entire workload will be depicted in one place, and you can see how BAU work impacts strategic work.•The disadvantage of putting BAU items on the LVT is that when you try to map all your BAU work, you will have a significantly larger tree.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.8In our experience, for most organizations only 10 to 20 percent of the work is strategic. Most portfolios consist of mainly the other three types of work listed under BAU.The older your organization, the larger the investment in those legacy systems and they consume significant delivery capacity.First, an important governance question for BAU work is, “Do we use an LVT?” The answer is, “It depends.” There are advantages and disadvantages to either approach.Moreover, much of it cannot be directly mapped to your business strategy, as that strategy usually does not specify maintaining your current capabilities.

Types of BAU WorkWhile a number ofterms are used to categorize this work, the three used in this chapter are small enhancements, defects, and technical debt. These are shown in Figure 7-2, together with strategic work, to provide a total view of a team’s workload.BAUcanspanarangeofworktypesandtimecommitments.SmallEnhancements:-•Manyorganizationshave“maintenanceteams”thattakecareoflegacysystems.Theseteamshandlethesmallenhancementrequestsfromvarioususerrepresentatives.Suchsmallenhancementsaretypicallydrivenbyadesiretomakethingsbetter,faster,orcheaper•Thesemaintenanceitemsareseenasthe“fastpath”togetthingsdonebecausetheyrarelyrequirejumpingthroughthecost/benefitanalysishurdlesforlargeprojects.ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.10Defects:-•Complexproblemstendtodrivecomplexsolutionsthatarenotalwaysimplementedperfectly.•Themostchallengingpartofdefectrepairworkisthatmuchofitisunplanned.•Whileusuallytheworkneededtoeffecttherepairisminimal,that’snotalwaysthecase.Whenincidentsoccur,serviceneedstoberestoredquickly.Inmostorganizations,incidentswithhighimpactareprioritizedandoverrideallotherworkuntilresolved.Thisreallythrowsawrenchintoprioritizationandportfoliomanagement.

Cont…Technical Debt:-•Technical debt is defined as the degradation of technology over time due to a lack of investment in maintaining adaptability and quality.•Technical debt causes cycle time to decrease from release to release, and even from iteration to iteration. It accumulates over time—slowly at first, but and then faster and faster as you abandon quality for “one-time” speed.MoS for BAU:-•Good measures of success are critical for all teams to have the necessary information to understand what is expected and to be able to evaluate its impact.•The LVT can help structure the strategic portfolio, and MoS articulate the desired outcome. But how do you do this for the rest of the work.•BAU work is typically a combination of repairing defects, managing technical debt, and making small enhancements to the systems that support those capabilities.•These processes are relatively stable, and business outcome-oriented measurements usually already exist or can be identified for them.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Capabilities•There are two related types of capability development—business and technical.•BAU business capabilities are improved by intermittent small enhancements, whereas technical capabilities are enhanced by activities such as skills training.An enhancement to a business capability would generate a delivery story to be prioritized, while a technical capability would be incorporated by assigning a percentage of the team’s effort to an improvement activity.An example of a business capability would be an order fulfillment process, whereas a technical capability would be building a technology platform.Business Capability-Based Portfolios:-•Each business capability has one or more business processes and associated systems that support them. Every organization has finance and accounting capabilities that are necessary for it to function as a business. Most would agree that these capabilities are not strategic, but certainly critical to the functioning of the business.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.13•A BAU portfolio is a backlog of the three types of work—small enhancements, defects, and technical debt—that need to be managed within a budget.This ability to understand the value of every portfolio is at the heart of EDGE. Whether it is applied to moving investment funds from one strategic initiative to another under a bet, ormoving those funds from one BAU portfolio to another, the same lightweight governance processes can be applied.By developing an integrated backlog, you are trying to understand the entire workload of your delivery teams and gain a more comprehensive understanding of the product performance and investment.Technical Capability:-•The LVT and MoS help us understand which opportunities to pursue to compete in the marketplace.•Improving technical capabilities is different from delivering customer stories.•The time needed to improve capabilities should be allocated by percentage to teams. This percentage may vary from time to time as the mix of strategic and BAU work changes.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Case Study Example : Two Percent for Continuous ImprovementYearsago,whenworkingasaCIO,DavidwasabletoconvincetheCFOofhisorganizationthattheITdepartmentshouldinvestatleast2percentofthetotalITbudgeteveryyearintocontinuousimprovementactivities.Theseactivitiesconsistedofamixoftools,learning,anddevelopment,andevensometechnologyspikesthatwerenotrequestedbythebusinessbutwereundertakenforthepurposeoflearninganddemonstratingproofofconceptsfornewengineeringtechniques.Onememorableexamplewasa$185,000investmentinimprovingautomatedenvironmentdeployment,whichunlockedanaverageof21percentimprovementinteamvelocityforsevendeliveryteams.That21percentmoreworkwaslikehiringanotherteamatnocost.Ofcourse,thattotallyunderstatesthevaluecreatedbyapplyingthatcapacitytohigh-valuework.ThatinvestmenthadthehighestROIofanyinvestmentmadebythecompanythatyear.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Combining Strategic and BAU PortfoliosOne approach to combining strategic and BAU portfolios that works well is the concept of reserved capacity.In our AR BAU portfolio example, if some strategic work is likely, you could reserve some of the money (capacity) invested in the AR budget for strategic work, as depicted in Figure 7-3. This approach maintains a consistent budget for operational expenses, butallows for a small amount of potential strategic work. These funds can be used only for small strategic initiatives in the AR BAU portfolio. The reserve capacity should be taken into accountwhen establishing targets for the MoS of the AR BAU portfolio.

PrioritizationIfthereisanexistingprioritizedbacklog,astherewillbeinmostcases,youwillbeadjustingthelistbyaddingnewitemsandremovingobsoleteones.TraditionalSolutions•Defects,newfeatureadditions,infrastructureupdates,andothersmallchangeswerehandledbythemaintenancegroup.Individualsoftenworkedonthesesmallchangesbythemselves.•Maintenanceworkwasusuallyhighpriority,soquickfixesthatincreasedtechnicaldebtoftenbecamethenorm•Themoreexperiencedandskilledpeoplewantedtoworkonprojectsandnot“cleanup”work,whichleftlessexperiencedstaffdestinedtoworkonmaintenance.•Manyteamswehaveworkedwithhavetriedvarioustechniquestodealwiththesechallenges.Settingasideaportionoftheteam’scapacityforthistypeofworkisonecommonapproach•New-projectteamsdidn’thavetoworryaboutthelong-termconsequencesoftheirwork,andbecausetheprojectscheduleandcostsusuallydrovethatwork,quality(includingtesting)oftensuffered.•Onereasonthatorganizationsoftenseparatetheirplannedandunplannedworkbacklogsisbecausetheyhavenomethodofcomparingthevarioustypesofworkforprioritization.•Thisapproachdefinitelyhelpseliminatethenegativeimpactontheplannedworkschedule—ordoesit?Wewouldarguethatallyouhavedoneistoguaranteethatyoudeliverlessplannedworkeveryiteration.

Cont…ABetterWay•Transparencyandgivingteamssubstantialdecision-makingauthorityarebetterwaysofmanagingthisproblem.•Thereisnomagicformulaformakingprioritizationdecisions.Balancingbetweenworkingoninitiatives,products,BAU,staffcapabilities,andtechnicaldebtdependsonreasonablevalueanalysisandacollaborativedecision-makingframeofmind.ComponentStrategies•Forstrategicstories,youcanobtainthemostcomprehensivestrategyinformationfromthegoals,bets,initiatives,andMoS.•Relativeprioritizationalsoenhancesyourabilitytoincludeintangiblefactorsinyourdeliberations.Having a visible backlog that includes all types of work (strategic, BAU, and technical capabilities) gives the team, productspecialist, and customers situational awareness. This is a good foundation for a collaborative effort to prioritize work.This process can be enhanced by certain practices, effective judgment, and escalation procedures. Moreover, while you try to push as many decisions to the autonomous delivery teams as possible, you can’t push them all. Sometimes managers and executives have perspectives that team members don’t. Sometimes major spending decisions are necessary. Pulling all these components into an integrated, prioritized backlog is challenging, but ultimately worth the effort.Teams that have, and understand, these goals have a solid basis on which to make prioritization decisions. Those that don’t are doomed to flounder around trying to prioritize components without guidance.

Relative versus Absolute Value•A relative process is much faster than spending time calculating concrete numbers that are often based on suspicious assumptions.No matter what techniques you use, the final prioritized backlog—at any level—boils down to a collective judgment.•Relative prioritization also enhances your ability to include intangible factors in your deliberations.The final factor that favors relative prioritization is the quick feedback that brings you back on track if your team’s judgment takes a brief leave of absence.Doing Less•The hours spent calculating costs, prioritizing, and reprioritizing these items can be staggering, representing a large sunk cost.How do you avoid all this wasted effort in EDGE? Demand shaping, delaying detail, and quick quartiling•Delaying detail is another way to reduce work effort, if not demand itself.Detailing enough for two or three iterations of delivery should, in most cases, be sufficient.•Quick quartilingis another way to do less. Rather than prioritizing all the items on your backlog, try breaking that list into quarters or even thirds.Again, it’s a way to move through the prioritization process faster. Don’t do work you don’t need to—do less!

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.19Team Prioritization•A key reason that the prioritization approach advanced in this chapter works is that it is conducted by a collaborative, self-sufficient, autonomous team. •There is also an impact on prioritization when you organize by product rather than by project orientation.If the organization lacks a high degree of collaborative decision making, teams are not self-sufficient with broad knowledge, and teams lack the autonomy to make most prioritization decisions, then the practices in this chapter won’t work well.Traditional project-organized teams emphasized speedy feature delivery without giving much attention to the other components, particularly if maintenance was then handed off to another team.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Work-in-Progress•The ideas of monitoring and restricting work-in-progress (WIP) have had a large influence in the agile, lean, and Kanbancommunities.The introduction of new items or changing priorities will alter the sequence in your backlog over time. As shown in Figure 7-4, restricting the number of items flowing from the unprioritized to the prioritized boxes will save time. The size of the two boxes reflects this reality.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Value and Effort ScoringThis value and effort scoring is the last step in assigning priorities to the various components.Value scoring again gives us a way to compare very different components and prioritize them. Although the team members understand all ofthe factors involved—such as strategies, cost, value, and risk—they just don’t take the time to assign specific numerical weights to them.Following are four practices you can use for prioritizing stories, presented from the simplest to the most complex.Simplest: Direct Priority Assignment:-The simplest and least time-consuming prioritization processis to have the team infer value by just ranking the stories on the backlog.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Moderately Simple: Direct Value Assignment:-The next step in simple to complex ways of assessing priority is to assign a numeric value to a story and possibly an effort number.Moderate: MoS Assessment:-Three different MoS (NPS, conversion, abandonment) were evaluated to come up withthe value score.Complex: Cost of Delay:-While you might potentially use (Cost of Delay)CoDat the story levelFigure 7-5 shows an assignment matrix using both value and effort. In this approach, the priority is not calculated, but rather assigned by the team as it looks over the matrix.After each of these value and effort numbers were assigned, the rest was a calculation, as was the V/E number that combined value and effort. In the two simpler approaches, the effort numbers were implied rather than explicitWhile you might potentially use (Cost of Delay)CoDat the story level, we think it far too complex and time consuming to use it for prioritizing LVT components within most organizations.Cont…

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Escalation Processes•Havinganescalationprocessinplacewillhelptheteamsunderstandwhichprioritizationdecisionstheycanmake,andwhichonesneedleadershipinput.•Thelatterteammaythinktheyareatanimpasse,sotheyescalatethedecisiontomanagement.Imperfect Prioritization•Thisisanadaptiveprocessthatusesrelative,notabsolute,measures,soprioritieswilllikelychangefromtimetotime.•RememberthatalltheprocessesinEDGEareagile,meaningthatthereareshortiterationsofdoing,followedbyreflectionandlearning,andthenbyadaptingquickly.This may be the point at which a well-functioning autonomous team and a team that’s not quite there take different approaches.Given that the well-functioning team has the appropriate mix of product and technical members, they should be able to handle a very high percentage of difficult prioritization decisions.Even if you get the priorities wrong, you get to adjust them in a short time period. Quick reaction to resolve mistakes provides a safety net for those mistakes and manages risk.

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021ECOM425 –Department of E-Commerce|لاملاو ةيرادالا مولعلا ةيلكةيWeek-9 -Product and ExperienceChapter 7-ProductChapter-8-Experience

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncLearning Objectives –Chapter7-Product•Focusonspeed,quality,andvaluewillgivetheabilitytomoveatthespeedofdisruptivechangeinthefaceofuncertaintyandwilldelivervaluebothtocustomersandthebusiness.•Ifthefocusismoreonoutputsandhandoffsthanonsharedoutcomesforthebusiness,thenyoumustcourse‐correct!•Beware“technicaldebt,”wherewhatappearstobetheeasier,shorterpathisinsteadleadingtothewrong,orzero,businessoutcome.

Opening case: Procter & Gamble (P&G) NeilMcElroyismostknownforhisrolesaspresidentofProcter&Gamble(P&G)andasUSsecretaryofdefenseunderPresidentDwightD.Eisenhower.OnMay13,1931,hewasajuniorexecutiveatP&GmanagingtheadvertisingandpromotionofCamaysoap.•Advertising,andsalesweremanagedasdistinctfunctions,andhefoundhimselfcompetingwithIvorySoap,oneofP&G’sownbrands,formoneyandattention.•Hewasmakingapitchforacoupleofnewhiresforhisteamandwrotean800‐wordmemoarguingforabrand‐basedstructurethatwouldalloweachbrandtohavetheproperteam,budget,andfocustocompetesuccessfully.•McElroyarguedthatthereneededtobeteamsfocusedonsinglebrandsunderasingleowner,called“BrandMen”atthetime.•Thebrandswouldbecomedistinctbusinessesabletomoreeffectivelydifferentiatethemselves.•Hegothishires,butmoreimportantly,hismemo-initiatedP&G’srestructureintoabrand‐centricorganizationandinfluencedhowmostcorporationswouldmanagetheirbrandstothisday.TheteamatHPadoptedtheseprinciplesintotheirwork,creatinganapproachtoproductthatcombinedthebrandorientationfromP&G,thefocusoncustomervalueanddevelopmenttheywerebuildingwithinHP,andtheideasofleanmanufacturingandcontinuousimprovementfromToyota.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncProductmanagementiscreatingthecapabilitytorepeatedlyproduceproductsandservicesthatachieveproduct‐marketfit,whereyoucreateproductsthatcustomerswanttobuy,haveidentifiedtheaudiencethatwantstobuythem,andhavedesignedabusinessmodelthatcompelsthataudiencetobuyyourproduct.Thebusinessneedtosimultaneouslyidentifyingandrealizingvalue.Identifyingvalueismorethanjustsurfacingideas;itrequirestightcross‐functionalcoordinationacrossthefivecapabilityareastoidentify,shape,prototype,andtesttheviabilityoftheidea.Realizingvalueishowyouscaletheseideasthroughdeliveryandthenbringthemtomarketortoyourinternalorganization.The Relentless Hunt for Value

HowtoCreateTechProductsCustomersLove,MartyCaganshareswhathecallsthe“twoinconvenienttruthsofproduct”.•Atleasthalfofourideasarejustnotgoingtowork.•Itwilltakeseveraliterationstogettheimplementationoftheseideastothepointwheretheydeliverthenecessarybusinessvalue.Thereareacoupleofdynamicsthatconsistentlyshowupinfailedtransformations.“watermeloneffect,”wheretheservice‐levelagreements(SLAs)alllookgreenontheoutside,butinsidetheprogramisredandtheeffortsarenotproducingthedesiredbusinessresults.“technicaldebt,”wherecompaniestakewhatappearstobetheeasier,shorterpathinsteadofthepaththatwillproducetherightoutcomes,resultinginadditionalcosttoreworkthesolution.The Inconvenient Truths of ProductThe challenge is that as much as companies proclaim they use Agile and Lean methods,they consistently revert backto waterfall processes with handoffs from one area to the next. This approach then creates a negative, reinforcing loop focused more on the output of the projects versus the outcomes for the business.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc1.Risksaretackledupfront,ratherthanattheend.Coreproblemswiththewaterfallapproach:theproductisonlytestedandvalidatedattheendofthedevelopmentprocess,creatingmuchgreateroverallrisk.2.Productsaredefinedanddesignedcollaboratively,ratherthansequentially.Requiresadeepconnectionacrossstrategy,product,experience,engineering,anddata.3.It’sallaboutsolvingproblems,notimplementingfeatures..Focusingonoutcomescreateschecksandbalancestopreventthewatermeloneffectofproject‐orientedapproaches.Cagan’sthree principles

The Forces of Change in ProductThebrand‐basedstructureoperatesaroundlong‐rangeplans,typicallymeasuredinyears.Theproduct‐basedstructureisdesignedtoiterate,test,learn,andoperateincontinuousdevelopment.Creatingamodelbuiltforcontinuousimprovementofthefullproduct,bothdigitalandphysical,becomescritical.Everyprojectmanagerwouldmanagethreevariables:time,scope,andcost.Insteadoffocusingontime,scope,andcost,ifitisfocustospeed,quality,andvalue,yougaintheabilitytomoveatthespeedofdisruptivechangeinthefaceofuncertainty.If instead of focusing on time, scope, and cost, we focus on speed: How fast can we go from an idea all the way to putting it into the world? How can we do that with quality so that whenever we do it, we are not breaking things? In addition, how do we make sure we’re not just completing the scope but delivering the value to the customers and to the business?

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncFIGURE 7.1 Model for enacting change quickly and at scale

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncAgile, Lean, and DevOpsTheprinciplesofAgile,Lean,andDevOps,asseeninFigure7.2,willunderpinmanyoftheorganization’scapabilities.Eachoftheseconceptsiskeytohowproductmanagementisexecuted.Agileisasetofframeworks,practices,andprinciplesdesignedtogiveteamstheagilitytorespondtochange.AgileisbasedonLean,keyvalues:•Individualsandinteractionsoverprocessesandtools•Workingsoftwareovercomprehensivedocumentation•Customercollaborationovercontractnegotiation•RespondingtochangeoverfollowingaplanThecriticalcharacteristicofAgileisthefocusonthecross‐functionalteam.Leanmethodologiesareprimarilyfocusedonreducingwastesothoseteamscanbemoreeffectiveindrivingoutcomes.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncFigure-7.2-The principles of Agile, Lean, and DevOps

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncContn…TrulyapplyingLeaninadigitalcontextrequiresgettingtotheplacewhereyourcapabilitiesareworkingconcurrentlyandcollaborativelytocreatehigh‐valueproducts.DevOpsprovidesisawayforcompaniestoproducesoftwarefasterandwithhigherqualitybydirectlyaddressingtheorganizationalsilosandblockers.Thesethreeapproachesistofindtheonesthatworkinthecontextofyourbusinessandultimatelydriveyourabilitytodelivervalueconsistently,withquality,andrepeatedlyforyourcustomers.CreatestrongercollaborationbetweensoftwaredevelopmentandIToperationsteams,providesstrongerconnectionstoyourlinesofbusinessandcustomers,andimprovesyourorganization’sabilitytoproducecontinuoussoftwaredelivery.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncBanking Case Study: Transforming ProductIn2014,oneoftheUnitedKingdom’sleadingretailandcommercialbanks,aboutitsdigitaltransformation.ThedigitalCIOatthetimeandtransformationdirectordescribedtheeffortas“takingdigitalandmakingitachangeagentforthegroupratherthansolelyforthechannel.”•Firstwasoneofthemostimportantshiftsinanydigitalbusinesstransformation:theshifttocustomer.TheCIOandheadofdigitalandtransformationshared,“Weweresolvingtheclassicalonlineproblemratherthanfocusingoncustomerexperienceacrosstouchpoints,policies,andprocedures.•Second,customerexperiencebecameacoretenetofthestrategy.Especiallyinitsbusinessbanking,financialplanningandretirement,andunsecuredcustomerlendingbusinesses.•Finally,thoughAgilemethodshadbeenintroducedintheorganization,itwasfarfromAgileatscale.Thebankstartedproducingnewandimproveddigitalpropositions.Theshifttocustomervaluebeganproducingresultsnotjustwithcustomersbutinternallyaswell.Taking on a transformation of this scale is incredibly daunting. One of the hardest choices is how to begin. In this client’s case, we focused on the transformation of 10 customer journeys end‐to‐end based on cost to the group and importance to customers. These 10 journeys included some of the most core products and services within the bank. This by nature ensured a foundational product orientation to the work.

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncLearning Objectives –Chapter-8-Experience•Experience capability plays a central role in optimizing every component of the customer experience.•Multidisciplinary: Not just “experience” capability, but strategy, engineering, data, and product as well.•The “move fast” organizational goal is born out of the strategy, engineering, and data capabilities.•The key difference between classical design versus design thinking and computational design is iteration and continual improvement built on data, data systems, AI, and machine learning.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncWhatIsExperience,Anyway?Focusyourexperienceeffortsonmarketingandoccasionallyaspecificsaleschannelortwo,eachmanageddistinctly,whilethecreationofproducts,services,andcustomersupportcontinuedtobemanagedthroughtheprocessesthebusinessalwaysfollowed.Fundamentalshifts:Thefirst:Orientationtocustomer.Firsttwocharacteristicsofdigitalcompanies:understandingtheneedtheyareservingandthevaluetothecustomer?Thisorientationhasverydifferentimplicationsthananchoringtotheproductorserviceyouprovide.Thedifferenceisnowit’snotjustabouthowtheproductsyousellbettermeetaneedbuthowyourcompanycanidentifyandmeettheneedsofyourcustomersmoreeffectively.Thesecondshift:Experienceencompassestheentirecustomerjourneyandcrossesorganizationalsilos.Customers are increasingly expecting the interactions with brands to be frictionless. Amazing products have tobe coupled with strong experiences which can only be created by connecting everything from what it is like walking into a physical location to the “unboxing experience” (i.e.the physical experience of beginning to use a product).

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncContn…Thethirdshift:Centeredonwheredigitalentersthevaluecreationprocess.Today,digitalispartofthedesigntoolkitwhenproducts,services,andexperiencesareconceivedandevolved.•Digitalcompaniesaredesigningeveryaspectoftheircustomerjourneywithdatacaptureinmind.•Dataandcomputationarealsofundamentallyevolvingtheexperiencecapabilityitself.•Howdigitalisappliedtoincreasetheusabilityandeffectivenessforthecustomer.Therearefourcharacteristicsthatshapethis–Light,Ethical,Accessible,andDataful(LEAD)•Thedatatoolwouldplayakeyroleinsupportingthedeliveryoftheclientstrategyinareassuchasbrandandclientrelationships;identificationofthebestgrowthopportunities;deliveryofhigh‐quality,differentiated,andintegratedresearchproducts;andstrongemployeeengagement.•Thewidereachofexperienceisitsgreateststrength.Itbridgesthegapbetweenyourstrategyandthecapabilitiesthatcometogethertoformwhoyouwillbecomeasadigitalbusinessandhowyoucreatevalueforyourcustomers.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncInterestingaboutthedevelopmentoftheiPhonewasthenumberofquickturnarounddemosthathappenedonthepathtomarket.Thismostrevolutionaryofdeviceswouldhavetoconstantlyevolve,incorporatingtechnologicalprogressandcustomerexpectations.Thisprocessofconnectingtheidea,design,engineering,andexperiencetoapowerfulbusinesspropositionwasthebasisforoneofthemostrevolutionaryproductsinhistory.Orienting to the CustomerBrand Is the Experience and Experience Is the BrandInformationarchitecture(IA)isthescienceoforganizingandstructuringthecontentofwebsites,webandmobileapplications,andsocialmediasoftware.IAisdesigningthesystemsofinformationrequiredunderstandingtheinterdependenciesamongusers,content,andcontext.Experienceisdefinedbyanythingandeverythingthattouchesauserofasystem,aprocess,oraconsumerandhowmuchwecanimprovethatperson’ssatisfaction,abilitytocompletetheirtask,anddelightthemwhereverpossible.Itismultidisciplinary,withteamsencompassingnotjust“experience”capability,butstrategy,engineering,data,andproductaswell.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncContn…Withproductandservicedesignthegoalistosurface,design,andbuildideasthatwillunlockvalue.Figure8.1,youwouldgothroughaprocesstounderstandtheminenoughdetailtoimplement,createrequirements,andhaveabacklogofchange.Fromthatbacklogyou’dgothroughtoimplementationtotaketheproductlive.throughtoimplementationtotaketheproductlive.FIGURE 8.1 Opportunities to create valueThrough Agile you create the regular rhythm to implement the ideas and take them live and incorporate micro methods like Lean and Six Sigma to bring them to life.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncFIGURE 8.2 Connecting service design to deliveryContn…Figure8.2showshowservicedesignisusedatthefrontstageofthatlifecycle,tofindtheopportunitiesandunderstandthevaluetheyrepresentandthenhowAgilemethodologiesareusedalongthatjourneytotestandbringtheideastomarket.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncContn…Servicedesignhavefourkeycomponents:designthinking,frontstage/backstage,changecandidates,andmodelingforbehaviorasseeninFigure8.3.Designthinkinggivesusthewhoandthewhy,allowingustoconnectneedtothecompany’spurpose.Frontstage/backstageallowsyoutolookacrosstheentirelandscapeofopportunitieswhereyoucancreatevalue:Thisisyourbroadestopportunitylandscape.FIGURE 8.3 Service design foundationsThe mixed backlog could include opportunities from any part of the business: policy change, process change, user experience, customer experience, technology, etc.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncAhigher purpose for design is to achieve market relevance and outcomes that are meaningful for people and society.There Are Three Types of DesignClassical design –activities which pertain to the design of objects we use in the physical worldDesign thinking –activities that enable companies to put the user at the center of every design decision and to create innovative products focused on human wants and needsComputational design –activities involving processors, sensors, memories, actuators, data, and networksThechallengeforourestablishedclientstodayishowtocreateavirtuouscycleofdatacapture,integration,improvement,andimplementation.Toincorporatedesignthinkingintoyourbusiness,dataisamassiveaccelerantandimportant.Tooperateatalevelofcomputationaldesign,acohesivedatainfrastructureisrequired.Data and Computation

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncComputational DesignAspartofthedesignprocess,structuralengineersfromtheengineeringfirmArupusedadvancedparametricdesignmodelingandgenerativealgorithmstoexplorenewshapesforthenewbridgeusingcode.FIGURE 8.4 Parametric design modeling for Amsterdam BridgeFIGURE 8.5 World’s first 3D‐printed metal bridgeUnlike with traditional design where the designer (or engineer in this case) would create multiple iterations themselves, with parametric design modeling, they could use software tools (in this case Grasshopper and Karambaand 3D modeling tool Rhino) to design a rough shape, lock in the components in the system, and then use code to tell the system what they want to optimize for. The software then uses generative algorithms to create successive iterations and ultimately land on theoptimal final shape.When the design was locked, MX3D created intelligent software that transformed welding machines into 3D printing robots to produce a fully functional steel bridge.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc•Thebridgewasalsoinstrumentedwithasensornetworkthatgathersdatathatwillbeusedtobuildadigitaltwintocontinuouslymonitorthehealthofthebridgeunderdifferentenvironmentalconditions.Thiswillallowthatvirtuousfeedbackloopofdataintothemaintenanceandevolutionofthebridge.•Experiencecapabilitywillnotonlychangewhatyoucanproduce,buthowfastyouproduceandevolveitandbringyoueverclosertotheaspirationofwhoyoucanbeasacompany.Contn…

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncLight reflects the idea of speed.Ethical is an idea that’s very importantAccessible addresses how easy it was to interact within the experience.Datafuladdresses how you are using data to provide value.What Makes a Great Experience? LEAD (Light, Ethical, Accessible, Dataful)

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021ECOM425 –Department of E-Commerce| ةيرادالا مولعلا ةيلكةيلاملاوWeek-10 -Engineering and Data StructureChapter 9-EngineeringChapter-10-Data

Learning Objectives –Chapter 9 -Engineering•Engineering capability is key to how you create value for customers and your ability to remain competitive through differentiation around product and service.•Find and hire engineers to complement traditional technologists.•Search and destroy any traditional technology silos. •How can you be leveraging cloud‐based services in the context of the products you are creating and the value streams within them?•Shift to a microservices approach to improve your speed, quality, and flexibility.•How will you leverage automation for testing, so that software can be updated through continuous releases?

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncCorecompetencieshadtofulfillthreecriteria:•Providepotentialaccesstoawidevarietyofmarkets.•Makeasignificantcontributiontoperceivedcustomerbenefitsoftheendproduct.•Bedifficultforcompetitorstoimitate.TechnologyasaCostCentertoTechnologyasaValue‐driverTechnologycancreatevaluetothecustomerandrealdifferentiationaroundacompany’sproductandservice.Companieswantedtoownandmanagetheirtechnologyinfrastructureversusoutsourceittoathirdpartytomanage.Leveragingtechnologytocreatevalueforcustomers,ontheotherhand,requiresacompletelydifferentsetofconsiderationsandorientationtohowyouthinkaboutbuildingit.Example: Amazon is a company built latterly in a more digital world. Its technology does not belong to any particular group. Amazon’s technology is its product, the thing that is its biggest differentiator.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncSpaghetti Tech: The Layers of Enterprise ITTechnologycapabilityiskeytohowyoucreatevalueforcustomersandyourabilitytoremaincompetitive.Shiftingtechnologyfrombeingprimarilyfunctionaltovalue‐producinginestablishedbusinessesischallengingbecausepartoftheprocessinvolvesnavigatingthespaghetti‐likearchitecturethathasbeenbuiltoverdecades.Legacyarchitecturetakesthistoawholeotherlevel:thelayersthatexistincludedata,hardware,software,andbusinessprocesses.Moore’sLawTechnologyteamsareoftenlarge,hierarchical,andmadeupofindividualswithdeepexpertiseinaparticularhardware,software,orprogramminglanguage.Moore’sLawpredictedthatthenumberoftransistorsonamicrochipwoulddoubleeverytwoyearswhilethecostofcomputerswouldbecutinhalfinthatsametime.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncFIGURE 9.1 Cost of computingFIGURE 9.2 Moore’s Law –cost of storageComputers became smaller, faster, and cheaper as storage capacity increased. What we only imagined doing years before became not only possible, but affordable. This created fertile ground to rethink enterprise technology architecture and the role of technology in the enterprise.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncThetechnologicalskeletonsofestablishedcompaniesincludemultiplearchitecturesfrompoint‐to‐pointconnectingmainframes,services‐orientedarchitectureassociatedwithmiddleware,totheclient‐serverarchitecturesbuiltinthemidstofthedot‐comdays.Manyorganizationsthathavechangedtheirfront‐endtechnologyandhavegoodappsbuttheinventorymanagementsystem,orpricingmanagement,orpropertymanagementsystemorreservationsystemsforahotelchainarethesameoldsystemstheyhavehadforever.Thislegacytechnologyjeopardizestheend‐to‐endprocess,whichinturnrisksnegativelyimpactingtheexperiencecustomershavewiththebusiness.Legacy Technology

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncThe Impact of Product and Rise of EngineeringDigital companies aren’t judged by the industries they disrupt but by their ability to use digital to create new products, services, and markets. In order to do that, technology could not just be a matter of delivering on an idea. Instead, digital companies hired engineers who could apply the possibilities of technology to solve problems.Clients making this shift face a number ofhurdles along the way:•How do I associate engineering transformation to business and/or customer value to get sustained funding?•How do I turn my legacy systems into value generators within my digital transformation?•How do I divert more of my legacy run spend to growth and transformation?•I am running Agile events, but how do I achieve real engineering agility?•How do I achieve speed to market without taking unnecessary risk with resilience and stability?•How do I generate value from the cloud instead of it being another data center?•How do I connect modern engineering to customer‐centric value?•How do I know all ofthe investment I have made in modern technologies and techniques is working?

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncTechnology and EngineeringFrom an engineering perspective, creating a core competency in digital requires lenses across three areas:•Architecture•Ways of working•TalentThis means being able to effect change on front‐stage and back‐stage processes, including internal operations, as seen in Figure 9.3.For a bank setting out to improve the lending experience, it had to not only address the front‐stage experience in branches or online, but also make the internal approach to processing loans more efficient. This starts to touch on the role of DevOps: Scaling change needs innovation tightly coupled with operations.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncFIGURE 9.3 End‐to‐end transformation

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncArchitecture: CloudCloud is a key design component for how you create flexibility and agility within your systems architecture.Digitalbusinesstransformationcannotbedonethroughtechnologyalone.Tocreatevaluerequiresanapproachwhereallcapabilitiesareworkingcontinuouslyinconcert.Cloudisfundamentallydifferentfromlegacyarchitecturesbecauseitisdecentralized,offeringinfrastructureplatforms,services,andtoolsthroughtheInternet.Theoptionsforcloudservicesaregrowingsignificantly.Threemaintypesofcloudservice:InfrastructureasaService(IaaS),PlatformasaService(PaaS),andSoftwareasaService(SaaS).•IaaSofferson‐demandaccesstohelpscalehardware,thingslikenetworking,storage,andservers.•PaaSgivesyouacloud‐basedenvironmentfortestinganddevelopmentwhereyoucandevelop,manage,andhostapplications.•Finally,SaaSgivesyouaccesstocloud‐basedsoftwarethatyoucanaccessindependentlyviatheweborapplicationprogramminginterface(API)intoyourexistingarchitecture.Gartner is predicting roughly a 17% CAGR in public cloud service revenue from 2018 to 2022.3 Today, Amazon Web Services, Google, Microsoft Azure, Salesforce, and IBM lead cloud services. An example of SaaS that has gained increasing popularity is Communications as a Service (CaaS), which facilitates business communications through things like Voice over IP (VoIP), Internet telephone solutions, and video conferencing.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc•Privatecloudallowscompaniestohostontheirowndatacenterandmanageitthemselves.Thinkofthisascreatingyourownintranetwithyourcloudarchitectureprotectedbyyourownfirewallandsecurity.•Publiccloudistheopposite,whereyouaregivenaccesstotheprovider’senvironmentandtheymanagetheenvironment,infrastructure,andsecurityforyou.•Hybridisjustthat:amixbetweenthetwowhereyoudeterminewhataspectsofyourenvironmentyouwanttobepublicorprivateanddeterminetheassociatedsecurityandAPIstomakethearchitecturework.Applicationofcloudwillevolveovertimebasedontheneedsofyourcustomersandbusiness,thevaluestreamsyouareactivating,andthegrowthyouseektoachieve.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncMicroservicesMicroservicesisanarchitecturalapproachtobuildingapplicationsthatpartitionsappsintoservicesthatcanbebuilt,tested,andupdatedindependentlyofotherservicessupportingtheapplication.Thestructureofmicroservicesstartstotouchonteamstructuresandroles.OnesideadvantageofmicroservicesisthatinthecontextofDevOpsitstartstocreaterealcodeartistry.When you shift to developing multiple microservices concurrently, you team sizes get smaller, but you may also have more developers working on the same app. You will also see how the flexibility it creates in terms of tools reinforces the need for an engineering role that can see across the entire system and, importantly, can architect the systems to work effectively.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncWaysofWorking:Agile,Lean,DevOpsShiftingyourtechnologyfunctiontoaproductandvalueorientationthroughtheuseofAgile,Lean,andDevOpsamountstosignificantchangesinthewaythiscapabilityoperates:•Thelevelofambiguityintheworkincreases.Youneednotjusttechnologists,butengineerswhocandesignhowmultipletechnologiesareappliedfromfrontstagetobackstagetoenableaproductorservice.•Teamshavetobemuchclosertothecustomer.Tocreatevaluableproducts,services,andexperiences,yourengineershavetoknowcustomerpainpointsandhavevisibilityintofeedbackloopsthattheycanrelaytoyourtechnologyteams.•Teamsgetsmallerandmoreautonomous.Themulti‐disciplinaryteamsdesigningtheproductorshapingthecode,thenatureofcloud‐basedtechnology,andshorterdeploymentcyclesnecessitatesmallerteamsthatleverageexperts.•Deliverywillbecontinuousanddeliverycycleswillbeshorter.Codewillbemovingintoproductiononaconstantbasisinordertobuildspeedandqualityandenableanenvironmentoftestandlearn.•DevOpswillbecriticaltocreatingend‐to‐endproductsandservices.DevOpshelpstoclosethegapbetweenyourdevelopmentteamsandyourexistingIToperationsarchitecture.Developers not only write code but manage that code in a model of continuous improvement and integration. This creates a higher level of performance in the code itself and a different orientation: Not only are you going to build the house you’re going to live in, you willbe responsible for continuously improving it.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncLow Code/No CodeLowcodeisatypeofapplicationthathelpsprofessionaldevelopersdevelopapplicationswithlittlehand‐coding,essentiallystreamliningtheirworkandhelpingacceleratethedevelopmentprocess.Nocode,ontheotherhand,isgearedtoward“citizendevelopers,”businessuserswhodonotknowhowtocodeandallowingthemtobuildappsthroughinterfacesthatdon’trequirethemtowriteanycodeatall.EngineersEngineersfollowadifferentprofilethantraditionaltechnologists.Theyarepolyglots,traversingmultiplelanguages.Theroletheyplayisinidentifyingandactivatingwhat’spossiblethroughtechnologyandtestingandrefiningbasedontheneedsofthecustomer.AutomationContinuousdevelopmentrequirescontinuousfeedbackloops.Softwareisupdatedthroughcontinuousreleases.Asthepaceofdevelopmentandreleasesaccelerates,automationwillplayakeyroleinproducingvaluewithspeedandquality.

Learning Objectives –Chapter10 -Data•ToDevelopadatastrategy,andthecapabilitytoserveit,thatputsdatatoworktodriveabettercustomerexperience,innovatenewproductsandservices,andrunyouroperationsmoreeffectively.•Challengeyourorganizationtobedata‐drivenoperationallyandrecognizehowthatincreasesyourabilitytomovewithspeedandqualitytocreatevalue.•Ensurethatyourexperienceandproductcapabilitiesareinservicetoyourdatacapability,aswellasviceversa.•Whenitcomestodataandethics:It’snotjustwhat’slegal,butwhat’sethical.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncDataasanAsset•Disney’sintangibleassetsinQ1of2020were$100billionalone.Itsothermajorassetsarevastcontentlibraries,theMarvelcatalogue,themeparks,studios,medianetworks,andtheirownstreamingplatformDisney+.•Netflix’smajorassetsincludesomeoriginalcontentrightsbutareprimarilyitsstreamingplatformandsuperiorunderstandingofthecustomer.•Disney+andNetflixsuccesswilldependonitsabilitytousedata,experience,andastrongcatalogueofcontenttoretainthosecustomers.GettingStartedwithData•AdatacapabilitypoweredbyAIandmachinelearningcanactuallymakedecisions,increasingthespeed.•Freesyourteamsuptofocusonthenextlevelofdecisionsthatwilldrivemorevaluefromidentifyingadjacenciesandnewofferings.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc17While identifying audiences who were interested in specific types of movies and shows helped Netflix determine the licensed content it wanted to bring into the platform, when it inverted these data, it became even more interesting. The company now had the ability to understand audience detail for specific movies: who saw it, where do they live, what else did they rent, and did they like it? It was a level of insight that movie studios never had and, importantly, could never provide to their advertisers. Now you could tell whether the audience watched the movie long enough to see your product placement and you had the data to identify that audience down to the individual level. For those long‐tail movies, this gave Netflix the ability to estimate audience size using a similar algorithm to that used in its recommendation algorithm, andprovided stronger negotiating power for licensing deals. Through the application of data, Netflix had created a superior relationship with the customer than the studios themselves.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncCaseStudy:NetflixNetflixhasnowsuccessfullyexpandedintooriginalfilmandTVseries.Bytheendof2019,ithadbecomethelargestmoviestudioinHollywoodbasedonvolume,doublingandinsomecasestriplingtheoutputofitscompetitors.5Thecompany’s2020contentbudgetwas$18billion,ofwhich50%wasallocatedtodevelopingitsowncontent.Inayearwhenmanystudiosandnetworkswerepostponingcontentcreationduetothecoronaviruspandemic,Netflixhadalreadyshotits2020slateofseriesandfilmsandwasworkingonthe2021season.InJulyof2020alone,itintroduced59originalpiecesofcontentfrompopularTVshowstonewseries,movies,documentaries,andanime.6Becauseitwasnotbeholdentothestudiosforcontent,Netflixwasalsofreefromtheconstraintsofreleaseschedules,andthemodelhastheagilitytomeettheuniqueneedsofastreamingaudience.Ultimately,thecontentfeedsbackintoasystemthatusesdata,AI,andmachinelearningtofurtherdevelopanexperience,products,andservicesthatmeettheneedsofsubscribers.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncCustomer Experience and Growth:•Howcouldwe“own”andholisticallyunderstandourconsumersandstarttogetahandleonfirst‐partyconsumerdata?•Howcanwestaymorerelevantintheeyesofourcustomersthanourcompetitors?•Howcanweeffectivelyuseourdatatoreachourcustomersandimproveourexperience?•Howcanwepersonalizeaninteractionforacustomerbasedonhistoricaldata?•Howcanweharnessthedatawealreadyhave(andallthenewdatacominginfromdigitalconsumers)todrivegrowth?•Howcanweaccessandprovidereal‐timedataonhealthandsafetytoourcustomers?

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncEfficient Operations:•Howdoweharnessourfulfillmentdatatoimproveefficienciesandspurinnovationbutfuelcustomerexperience?•Howdoweharnessdatatobettermanageeverythingfromproductassortments,businessoperationstoconsumerloyalty–anddrivegrowth?•Howcanwemonetizeourdatawhilerespectingcustomerprivacy?Four lenses that can be applied across any aspect of business•Utility:Howdoyougetusefuldataandanalyticsontherightaudience(datasetsanddataarchitecture)?•DataScienceandArtificialIntelligence:Howdoyoumanageyourdataandcreateaclosedloopsystemofautomatedlearninganddecisionmaking?•DesigningforData:Howdoyoudesignyourproducts,services,andexperiencestocollectdata?•Ethics:Howdoesbecomingdata‐ledimpactyourethicalresponsibility?

Utility: How Do You Get Useful Data on the Right Audience?•Thisabilitytocreatedatathatcanbeaccessedtooptimizemultiplebusinessfunctionsandofferingsistheholygrailformanyofourclients.•Allindustriesarelookingforwaystousedatatodriveabettercustomerexperience,innovatenewproductsandservices,andruntheiroperationsmoreeffectively.Thecomponentsthatshapeanycompany’sdatastrategyarethedatasets,dataarchitecture,anddatascienceandAIthatexistinitsenvironment.•Datasets(DoYouHavetheDataYouNeedtoUnderstandYourBusinessandCustomers?)giveyouaviewintothedatathatcurrentlyexistsinyourbusinessandthedatayouneedtoacquiretounderstandyourtargetaudienceorbusinessprocess.•Dataarchitecture(IstheDatainaFormatandStructureThatAreAccessible?)isthesystemsandprocessesusedtogovernthetypesofdatayoucollect,howit’sused,stored,managed,andintegrated.•DatascienceandAIcreatethealgorithmsthatenableyoutogenerateinsightsfromyourdataandthecomputationalabilitytoautomateandevolvethoseinsights.The value of the Netflix data is its ability to fuel the AI the company uses for its user experience, to guide the content production, and to negotiate licensing deals. The data is structured in a way that allows Netflix to invert customer preference data to better understand the specific audience of a given movie. What is most powerful about the Netflix data strategy is that ultimately everything ladders back to the primary outcome of reducing churn and ensuring retention rates.

Data Science and Artificial IntelligenceHowdoyoumanageyourdataandcreateaclosed‐loopsystem,soyourdatacapabilityishelpingyourbusinesslearnandmakedecisionsinrealtime?ThemethodsandtoolsthosehumansapplytopreparingthedataanddesigningthealgorithmsforAIwillcontinuetoevolve.Becauseoftheproliferationofdataandthesteadyincreaseincomputationalpower,thesealgorithmscannowbeeffectivelyappliedtomassivedatasetsandautomatedthroughmachinelearning.TheapplicationofAIandmachinelearningcanthenenableyourmachinestoact,makedecisions,andlearn.Whenyoucreatethisgenerativeloop,whereeachcapabilityreinforcestheother,itallowsyourorganizationtomovewithinyourexistingparametersatspeed.TheautomationandAIgivesthestrategicinputsandfreesupyourteamstostartexploringadjacenciesandpotentialpartnershipopportunitiestodevelopnewproductsandservices.Netflix recommender algorithms: First, each algorithm had to be tested to vet the strength of its ability to predict relevant content; then it could be incorporated into the recommender systems to create a better experience for users and to ensure high retention rates; and, finally, through machine learning the company could perpetually learn from each user event through computation.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons IncDesigning for Data: How Do You Design Your Products, Services, and Experiences to Collect Data?Productshouldconnectyourdataandexperiencecapabilitiestoensuredatacollectionispartofthedesignprocesssothatyoucancreateamechanismtocontinuetofeedyouralgorithmswithmoreinformation.Thiscreatesagenerativeloopacrossyourbusinessthatallowsforconstantlearninganditeration.Ethics:HowDoesBecomingData‐ledImpactYourEthicalResponsibility?Thecomplexityofcreatingethicalstandardsacrossaglobalenvironmentisinfinitelycomplex.Whendesigningtheproducts,services,andexperiencesfordata,useafewsimpleprinciplestoguidehowweensurewearedoingsowithanethicallens:•Beclearaboutthevalueyouprovidethecustomerinexchangefortheirdata.•Includedatainyourdesignsothecustomercangiveyouthedataeasily.•Thedatashouldonlybeusedforthepurposethecustomerhasagreedto–trustiseverything.

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021| ةيرادالا مولعلا ةيلكةيلاملاوWeek-11 -Governance, Team Collaboration and Adaptive LeadershipChapter8 -Lightweight GovernanceChapter 9: Autonomous Teams and CollaborativeChapter 10: Adaptive Leadership

Learning Objectives -Lightweight Governance•Governanceiscriticaltoorganizations.•Streamlineyourapproachtogovernancetomeetthedemandsoftoday’sfast-movingenvironment.•Meetingcustomervalue,regulatory,financial,andsafetygoalsisstillcoretoyourmanagementresponsibilities.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Introduction•Theagilevalue“workingsoftwareovercomprehensivedocumentation”1Chargedorganizationstofocusontheprimaryobjectiveofsoftwaredelivery—thecode.•Inmanyorganizationstheevolutionofsoftwareengineeringmethodshadtakenaturntowarddocuments:lengthyrequirementsspecifications,comprehensivetestplans,extensivedesigndiagramming,andmore.•Thesedocumentsevolvedovertimetobecometheobjectiveandcodebecameanecessary,butlessconsequential,component.Agile isn’t anti-documentation; instead, it favorsthe primary outcome of software development—running, tested code.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.The Lost Objectives of Governance•Goals,bets,andinitiativesmeettheircustomervaluegoals.•Decision-makingrightsrequiredforaccountabilityareeffectivelyallocatedandmanaged.•Initiativesfollowinternalandexternalregulationsandstandards(e.g.,safety,auditing,accounting).•Theintentionoflightweightgovernanceisnottoeliminatedocumentation,butrathertofocusontheprimaryobjectivesofgovernancethroughappropriatedelegationofdecisionrightsandestablishingclearaccountability.•As with software delivery, the objectives of governance have gotten lost in the blizzard of documentation. Executives have a fiduciary responsibility to monitor investments. This oversight task is an important one—it keeps their organizations from making critical mistakes.

Establishing Lightweight Governance•Traditionalportfolioandprojectgovernancestresseddocumentingdeliverables(suchasdesignandrequirementsdocuments)andcompletingactivities.Whenusingthisapproach,preparingfordeliverablereviewswithexecutivescouldbebothexhaustiveandscary.Adoptionofagiledeliverypracticeshasworkedagainstcreatingthistypeofenvironment,butunfortunatelyithascreptbackin,asenterpriseshavetriedtoexpandagile’sreachtolargerprojectsandacrosstheirorganizations.•Theexecutiveteam’sfocusshouldbehowtohelptheorganizationbefaster,moreinnovative,andmoreadaptive—ratherthanslowingtheprocessdown.Everyleveloftheexecutiveteamsshouldencouragespeedandlearning—whichisexactlytheintentofthe“Establishlightweightgovernance”guideline.•Governanceinyourorganizationshouldbeaboutsteeringvaluecreationfirst.Whilegovernancecertainlyhasastrongfiduciaryaspect,managementandexecutivereviewersprovideuniqueperspectivesandexperiencethatcanassistineffectivedelivery.•Existingmanagementframeworks,includinggovernance,arethebiggestroadblockstobusinessagilityandproductmindset.Manyexistingframeworksaredocumentationandprocessheavy,aspeopletrytoconvincethemselvestheycanpredictthefuturebyconductingextensiveanalysis.•Transformationalinitiatives—thoserequiringinnovation—dependonlearningfaster,sosmallmistakesdon’tevolveintobigones.

Cont…GovernanceinEDGEstressesaregularcadenceofPeriodicValueReviews(PVR).VRsshouldhavesimilarobjectivestothoseofanagiledeliveryteam’sreview:•Toencouragelearningandearlyriskmitigationthroughshortfeedbackcycles•Tomakedecisionsbasedonvaluedeliveredfirst•Todecide,foreachinvestment,whethertocontinue,adjust,stop,orpivot•PVRs provide the framework to ensure that funds and resources are being used as intended and that progress toward goals, bets, and initiatives is being made. •The cadence of PVRs might be quarterly for goals, monthly for bets, and biweekly or weekly for initiatives.•It’s not enough to have frequent reviews—your organization must be willing to make difficult allocation or reallocation decisions during these reviews.•The importance of lightweight governance is that it helps build organizational discipline through regular value reviews, andgives teams a forum in which to suggest new paths forward and assess the relative value of goals, bets, and initiatives.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Periodic Value Review•Intraditionalportfoliomanagementprocesses,rollupsofportfoliostatusreportsareusedtocommunicateprogressandsurfaceproblemsthatmightbeaffectingtheportfolio.•EDGEreplacesactivityreviewswithaPVR.AteachleveloftheLVT,theownerteamsreviewthevaluethey’vecreatedduringtheperiodbyshowingtheimpactontheMoS.•Intraditionalportfoliomanagement,anorganizationhasonlyvisibilityintotheactivityperformedandknowledgeoftheoriginalsolutionplan.•WithaPVR,theownerteamsconsiderthedeliveriesmade,thevalueproduced(MoS),theinvestmentsmade,theworkinprogress,andthetopofthebacklog.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.8•The PVR process shown in Figure 8-2 ensures an organization has an easy way to monitor and steer investments. The owner teams review value by evaluating the MoS.EDGE replaces activity reviews with a PVR. At each level of the LVT, the owner teams review the value they’ve created during the period by showBecausethey’ve been delivering incrementally, they can demonstrate actual value creation (or lack thereof). This real-time feedback is a key differentiator of EDGE.•It has very little opportunity to determine if it’s prudent to continue onthe original path, change direction, or stop the madness, because the result isn’t known until the end. •This is a complete picture of the portfolio intended to provide enough information to support a value-based conversation between the stakeholders and the delivery team.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Rebalancing the PortfolioRebalancing the portfolio occurs when information presented in the PVR indicates a change in the current investment. You always have two choices, as shown in Figure 8-3: (1)continue and invest more (2) stop and free up capacity to explore the next most valuable idea.If opportunities aren’t delivering value, the organization can choose one of three options: 1.Invest less. 2. Stop pursuing an opportunity. 3. Pivot to a more valuable opportunity •As an example, suppose a competitor releases a new product that requires an immediate response. That response might be to set up a new bet and take funds and teams from another opportunity to address it.•Investing less means setting new investment targets, adjusting staffing, and possibly adjusting MoS again. •Stopping pursuit of an opportunity frees resources to take up the next most valuable opportunity. •Pivoting means to use what you have learned to and continue a different way.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Cont…Thisregularandfrequentresponsetofeedback,showninFigure8-4,givesorganizationsunprecedentedcontroloverachievingbusinessoutcomes.Rebalancing—likeallofEDGE—isincrementalanditerative.•Organizations needn’t wait years to change direction. PVR teams have the opportunity with every PVR to react to their learning—to invest more in ideas that help, and to eliminate investment in ideas that don’t.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.Periodic Value Review DashboardInaPVR,theportfolioownerteamreviewstheportfolioforthepreviousperiod,illustratingthedeliveriesmade,thevalueproduced(MoS),theinvestmentsmade,andtheworkinprogress,andprovidingaglimpseintowhat’sonthetopofthebacklog.•This is a complete picture of the portfolio that’s intended to provide enough information to support a value-based conversation between the stakeholders and the team responsible for delivery of value from the portfolio.•Figure 8-5 is an example dashboard that consolidates this information on a single page.

Learning Objectives -Autonomous Teams and Collaborative•How should we work together?•Achieve these results with the trio of autonomous teams, collaborative working and decision making, and the cultural changes.

13Autonomous Teams•EDGEissimilartotheagileandleanapproachesinitsuseandpromotionofeffectiveteams.Anumberofconceptshavebeenattachedtoourmodernteams—autonomous,collaborative,self-sufficient.Acollaborativeteamisjointlyaccountableforresults—everyonecontributes.•Autonomousteamshaveboththeauthorityandtheaccountabilitytodeliveranoutcome-orientedworkproduct—whetherthatisasoftwarefeature(code)oraprioritizedportfoliothatimplementsagoal.Aself-sufficientteamcontainsavarietyofcapabilitiesanddiversityofperspectivesneededtoproduceresultswithminimaldependenciesonotherteamsorindividuals.•Managementauthorshaveoftenusedthreerelatedtermsovertheyears—delegation,empowerment,andautonomy.•Thefirstterm,delegation,speakstoassignmentoftaskstoanotherpersonorteam.Delegationhascometobemoreabouttasksthanaboutdecisions.Amanagerassignsworkbydelegatingtosomeone,buttheultimateaccountabilityforresultsremainswiththedelegator.•Empoweredteamshaveonlythedecision-makingpowerassignedtothembymanagement.Empowerment,aspracticed,doesn’tgofarenough,asauthorityisdribbledouttoemployeesbymanagement.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.14Cont..•Autonomysuggestsbothawiderrangeofteamself-governanceandasenseofinnatepowerratherthandelegatedpower.•Autonomousteamsareself-directed,withcleargoalsandboundariestheycanworkwithin.Withinanorganization,teamscannotbecompletelyindependent,buttheydoneedtohaveadegreeofcontrolorautonomyovertheirimmediateworkenvironmenttofullyengageinthatwork.•Autonomousteamsshouldworktowardassignedcustomervalueoutcomes,ratherthanbeingassignedtasks.Theteam,whichshouldincludeaproductperson,collaborativelyprioritizeswhatitwillworkonduringthenextiterationtodeliverontheoutcomesassignedtotheteam.•Thetwothingsassignedtoteamsfromleadersareoutcomesandboundaries.The two things assigned to teams from leaders are outcomes and boundaries.The first defines what the teams are accountable for; the second identifies the constraints on the teams. •Onewaytoapproachthesequestionsistogobacktoabasicprincipleemphasizedinthisbook—operatingattheedgeofchaostofosterinnovationandcreativity.Operating at the edge means putting some structure in place, but not too much. The edge is sharp, so people try to stay away from it—gravitating to either too much or too little structure

15Team Composition: From Cross-Functional to Self-SufficientTeams•Sincetheearlydaysofagiledevelopment(andbefore),practitionershavepromotedtheideaofcross-functionalteams.•Somespecializedskilledmemberswereparttimeanddesignatedassubject-matterexperts(SMEs).Theseteamswerecalledcross-functionalbecausetheydrewneededskilledmembersfromtheirfunctionalorganizations.ITteamcompositionsoftenincludeddevelopers,testers,analysts,andothers.Asagilepracticesevolved,rolessuchasproductspecialistsandIToperationswereincluded.•Autonomousteamsneedtobeasindependentofotherpartsoftheorganizationaspossible.Themoredependenciesyouhave,themoreexcusesyouhavetoavoidthataccountability.•Aself-sufficientteamshouldincludeallthecapabilitiesnecessarytodelivertheworkinitsportfolio.Atypicalsoftwaredeliveryteammayhavebetweenfourandeightskillareasrepresented.Executiveandleadershipteamsshouldhavesimilarself-sufficiency—CIO,CFO,VPproductdevelopment,VPmarketing.•InEDGE,oneofthemajorshiftsinpracticeisfromupfrontdetailedplanningandanalysistomoreholisticlong-termroadmapping;thisallowsplanningtobedirectionallyconsistent,yetresponsivetonewinformation.

16Trust Relationships•Collaborationissimplytwoormoreindividualsworkingtogethertocreateaproductorshareknowledge.•Complianceisperforminganassignedtaskbuttakingnoresponsibilityfortheoutcome.•Cooperativeinteractionshavesometrustthatmaybeshakyandsomeaccountability,butstaffalwayskeepaneyeonafallbackpositionthatdeflectsblame.•Atrulycollaborativeinteractionbeginswithahighdegreeoftrustthathasbeenestablishedovertime.•Autonomousteamsstriveforthecollaborativeendofthespectrum.•The core of successful collaborative teams is trust. Indeed, trust lies at the heart of autonomy, collaboration, and effective decision making.•Figure 9-1 shows the dimensions of interactions along a low to high trust line. We frequently think of these dimensions as existing in relationships among team members, but they also apply to the relationships between leaders/managers and teams that report to them.•Cooperative teams will go beyond written agreements, but they fall back on them when trouble looms.•A collaborative team takes full responsibility for delivering outcomes within established boundaries. They don’t make excuses or blame individual team members.•There needs to be collaborative relationships among team members and between the team and management. Autonomous teams do not arise from statements like “You are now an autonomous team,” but rather from actions and interactions that build trust and accountability.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.17AccountabilityandAutonomy•Neitherateamnoritsmanagersbecomeautonomousovernight.Theyhavetobuildupaleveloftrustineachothersothattheirfearsabouteachotherareminimized.•Teams worry that managers will make unreasonable commitments without discussing those commitments with them first.•Thetrustlevelmayreachcooperationbytheearlystagesofnorming.•Bytheendofnormingandintotheperformingstage,trusthasbuilttothetruecollaborationlevel,andbothteamsandtheirmanagersareperformingCreatinganEnvironmentThatFostersAutonomy•Leaderscantakeanumberofactionstofosterautonomy,suchashavingteamssettheirownschedule,decidewhattoworkonandwhoworksonit,maketheirownmake-or-buydecisions,andintegratetheirworkwithotherteams.•Creatinganenvironmentthatencouragesautonomyrequiresexceptionalleadership—particularlyinmakingthetransitionfromtraditionalteams•In this company, employees set their own work hours—completely. It doesn’t matter when or where you work, as long asyou get results. •Leaders, in contrast, fear losing control and that teams will make unwise decisions or will shirk accountability. The processes and practices of EDGE may be the easiest to implement in an organization; autonomous teams and adaptive leadership may prove more difficult.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.18EDGETeams•Theagile/leanworldisbuiltaroundautonomous,self-sufficientteams(whicharecoreEDGEprinciples).•EDGE’soperatingmodeltruststeamstomakesmartchoices,basedonthebusinessgoals,financialconstraints,andlearningexperiencedthroughoutdevelopment.TheValueRealizationTeam•TheValueRealizationTeam(VRT),whichreplacesaProjectorPortfolioManagementOffice(PMO),playsakeyroleinchangebysupportingtherightkindofneworganization.•TheVRTshouldensurethatthecurrentstateofinvestmentbeeasilyaccessedbylookingatinformationradiators.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.19This is one of the ways in which EDGE goes beyond portfolio management and moves into the realm of an operating model. It’s not enough to invest wisely in innovation; you have tomanage these initiatives differently, whether at the delivery team or at the executive team level.Organizationally, it means teams are long-lived and aligned with a business capability or product. This can be a big change for traditional organizations, which tend to be organized along functions such as marketing, inventory management, information technology, and product development.The VRT focuses on accelerating the delivery of value. It has primary responsibility for facilitating the EDGE processes, maintaining the integrity of the EDGE methods and artifacts, and coaching and mentoring people in developing a continuous learning mindset.Resource allocation and progress should be visible. This includes sharing what betand initiative teams are working on and which teams have additional capacity.

20PortfolioTeams•Theportfolioteamscollaborativelydeveloparobustvisionofwhichdrivers,constraints,andopportunitiesexistintheirdomain.They’reresponsiblefordefiningoutcomes,creatingthesolution,anddeliveringontheapproach.Foraportfolioteamtobenefitovertimefromlearning,sharedinsights,andgrowingrelationships,membersshouldstaytogether.ExecutiveorGoalTeams•Theexecutiveorgoalteamdevelopsanoverallvision(incollaborationwithotherleaders),shapestheLVTmessage,andbroadlyallocatesinvestmentstogoals(andmultipleportfoliosinthecaseoflargeorganizations).Theexecutiveteamactivelyshapesthehigh-levelstrategy;themembersarenotjust“approvers”forplansdevelopedbystaff.It’sessentialthattheteamhasdirectengagementfromseniorleadersbutnotcontroloverdesignanddelivery.BetTeam•Thebetteamdefinesthecriticallinkbetweengoalsthatarehigh-levelaspirationsaboutthefutureandspecificchunksofthedesiredoutcomes.Abetteamshouldincludeself-sufficientmembers,justasistrueforotherteams.Thecompositionoftheseteamsalsoneedstoincludepersonnelwhohaveexperienceandinterestininnovation,experimentation,andgettinggoodfeedback.InitiativeorDeliveryTeams•Initiativeordeliveryteamsshouldincludememberswithalltheprincipalcapabilitiesneededtodeliveraninitiative(suchasworkingsoftware).Ateamownsabusinessoutcome,notafixedpieceofcodeortechnology.Itshouldincludebothproductandtechnologyroles.Somerolesmaynotrequirefull-timeparticipationintheteam(e.g.,legal,operations,security),sothepeopleplayingtheserolescanservemorethanoneteamsimultaneously.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.21Collaborative, Self-Sufficient DecisionsMostdecisionmakingintoday’sorganizationsisdoneinoneoftwoways:1.Asingleindividualisgivendecisionrightsforaparticulardomain.2.Agroupisassembledtomakethedecision.Self-SufficientKnowledge•Self-sufficientteamsshouldhavetheknowledgeandskillstodeliveraproduct.DiverseSocialPerspectives•Aseverymanagementconsultantandauthorpointsout,theworldisshrinkingandcompaniesneedsocialperspectivesthatincludediversitiesbasedonregion,race,gender,religionandmore.TrustandRespect•Respectentailsaccepting,andevenadmiring.Trustisthebeliefinthereliabilityofothers,believingthattheywill,tothebestoftheirability,dowhattheycommittodoing.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.22•Decision-making people and processes need to balance responsiveness with decision quality. The people factor is partly about choosing how many people are involved, and partly about the decision process used.•By contrast, the goals with self-sufficient teams are to minimize dependencies and to maximize mutual commitment to outcomes.•Doing so may take extra time, and it may be frustrating at times. Even so, bringing diverse social perspectives to your digital transformation is critically important to self-sufficient knowledge.•On good teams, there is mutual respect among all the players, even as they recognize the differing contributions of various members. Everyone contributes and is part of the win.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.23Cont…OpentoOthers’Ideas•Opennessiscloselytiedtotrustandrespect,asitisdifficulttobeopenwhenthesebehaviorsaremissing.Team members need a fundamental belief that ideas can progress from good to better to best by integrating multiple perspectives into a final product.FacilitatorsTobeeffective,everyself-sufficientteamneedsoneormoreskilledfacilitators.Goodfacilitatorshelpturngroupsofpeopleintojelledteams.Agoodfacilitatorcanmeanthedifferencebetweenboring,unfruitfulmeetingsthatgoonandon,andmeetingsthatproduceresultsinatimelymannerandleavetheparticipantsenergized.

24WillingnesstoParticipateGranted,everyoneneedsalonetime,butthatisdifferentfromunwillingnesstoparticipate.Havingindividualswhoparticipatefullyintheteamcandeterminethelevelofsuccess.Buttherecanalsobeover-participation—excessivemeetingsthatdrainthemembers’enthusiasmforteamactivities.SlowDecisionMakingAnoft-quotedproblemraisedaboutcollaborativedecisionsisthatmakingthemistooslow—toomuchtalking,notenoughdeciding.Whilethiscanbeanissue,goodteamsknowthattheprocesscanactuallybeconsiderablyfaster:•Somedecisionscanbemadebysubsetsofthefullteam,orevenbytheleaders.•Wheneveryonehasparticipatedinthedecision,theyarelikelytobemorecommittedtoitsimplementation.•SlowdecisionmakingisoftentheresultofpoorunderstandingofthegoalsorMoSoftheinitiative.•SlowdecisionmakingisoftentheresultofpoorfacilitationWhenpeoplecomplainaboutslowteamdecisions,theyaregenerallythinkingaboutone-offdecisions,notaseriesofdecisionsthattheteamneedstomake.Thediscussionoftheseitemsmaytakemoretimeinthebeginninguntiltheentireteambecomescomfortablewiththeirunderstanding,butlittletimethereafter.Cont…

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.CaseStudy-SlowDecisionsJimwasconsultingwithasoftwarecompanyinDublin,Ireland.Managementwasconcernedthatthedevelopmentstaffwastooslowandwantedimprovementsuggestions.Aftertalkingwithanumberofmanagers,teamleads,anddevelopers,Jimdeterminedthattheproblemwasnotslowdevelopers,butratherslowmanagementdecisions.Everytimeaproductdecisionneededtobemade,evenafairlylow-leveldecision,thedevelopmentteamshadtoreferthedecisionstotheheadquartersstaffinSiliconValley.Becausetheheadquartersstaffhadtheirownsetofprioritiesanddidn’thavedailycontactwiththestaffinIreland,evenminordecisionsoftentookweeks—leadingtomuchfrustrationinthedevteam.Thissituationpromptedcommentslike,“Itseemsthattheydon’tcare,sowhyshouldwe,”whichobviouslyledtoevenslowerprogress.Jim’srecommendationtothegroupandtheirmanagementwasto(1)gatherdataonthetimedelaysfortheirrequests,(2)basedonthatdatatoestablishnewprocessessuchthatrequestshadhigherprioritywiththeHQgroup,and(3)empowertheIrelandofficestafftomakemoreday-to-daydecisionsontheirown.Theserecommendationswereimplementedreasonablyquicklyandledtofasterdecisionturnaround,fasterfeaturedelivery,andimprovedmoraleinthedevteam.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.26The preceding story illustrates a few of the factors that go into goodgroup decisions:• You need individuals with self-sufficient knowledge.• You need diverse social perspectives.• You need trust and respect among the participants.• You need participants who are open to others’ ideas.• You need facilitators who are adept at encouraging wideparticipation.• You need participants who are willing to participate.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.27Aligning Organizations to Business Capability•Traditionally,manybusinessandtechnicalorganizationshavebeenorganizedaroundfunctions.•Iforganizationhasembracedcontinuousdeploymentandevolutionaryarchitecture,enterprisearchitectsanddeliveryinfrastructureteamsmayalreadybeworkinginconcertwiththeteamaswell.•Figure9-2showsself-sufficientteamsateachleveloftheLVTstructure.•Institutionalizeandexpandself-sufficientteamstobelonger-livedteamsalignedonproductorbusinesscapability.•Expandleanconceptsintothebusinessbyincreasingbusinessinvolvementinportfolioteams.•Thefirstsignificanttransitionfororganizationswasfromfunctionaltoself-sufficientteams,althoughinthebeginningmanyagileteamswerelimitedtotechnicalroles.An LVT is aligned around outcomes of customer value at every level.From the earliest stages of agile software development, proponents recommended cross-functional (now self-sufficient) teams. Perhaps they tended to focus on stories (user requirements), which were written in business terms, but the early agile teams didn’t focus on outcomes.

28Cont…•The second transition in changing organizational alignment was from a project orientation to a product orientation, as shown in Figure 9-3.•Thethirdtypeoftransitionhasbeenfromprojecttocapability,asorganizationscommittooutcomegoals.•Thebigshiftfororganizationsistomovefrom“part-time”transientprojectassignmentsofpeople,todedicatedlonger-termproductandbusinesscapabilityareaassignments.•Amixofproductandcapabilityalignmentwillbeevidentinmanyorganizations,particularlysoftwareproductcompanies.•Theendgoaloftheserealignmentsistohavelong-termteamsoftechnologystaffsupportingproduct/businesscapabilitiesandmeasuringsuccessbasedonachievingdesiredcustomervalueoutcomes.The2ndtransition step expanded the skill areas included in the project team—most notably including product and tech operations staff.This realignment includes both technology and business areas of the organization. This typically happens as organizations becomecustomer driven from the outside in, rather than from the inside out. People can certainly move around, but in a responsible way. Roles must be backfilledand time must be given for people to get up to speed when they enter a new domain.Software companies may choose to have a product alignment for their products, maintaining a customer value fi tnessfunction and a capability alignment for internal applications.

Learning Objectives -Adaptive Leadership•Adaptingisaboutuncertainty,anxiety,experimenting,judgment,fear,innovation,collaboration,anddecisionmaking.•Itisaboutenvisioningandexploring,ratherthanplanninganddoing.•Itisaboutbold,grittyleadershipandinspiringotherstoengageinthefuture.•AdaptiveleadershipisacriticalcomponentoftheEDGEoperatingmodel.

30Encourage an Adaptive Mindset•An adaptive mindset is one of Envision–Explore, rather than the traditional Plan–Do.•There are times and situations in which a Plan–Do mindset would be appropriate, but Envision–Explore will still be the primary mindset of an adaptive leader.•Envision–Explore could also be called Hypothesis–Experiment.Envision speaks to possibility, externality with customers, value, outcome orientation, and blueprint orientation, whereas Explore speaks to openness to change, responsiveness, autonomy, and learning.•Plan–Do brings to mind internal focus, output measures, reacting to threats, delegation, and detail task orientation.Given a particular goal (which itself might change), you place “bets” on how best to achieve that goal. Some bets work out and deliver value, some need to be dropped, and others require significant modification (a pivot).•Envision–Explore defines an experimental process—one that iterates to a good solution.•Exploring is the process of delivering results—whether that is software, services, or other products. In the software business, the approach that epitomizes exploration is agile delivery.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.31Lead Change•Agileproponentshavechampionedablendofhigh-performance,self-sufficient,empowered,autonomousteams.•ManageAnxietyTeamsneedtothinkpositivelyabouttheirvisionanddesiredoutcomes,yetremainopentodatathatindicatestheneedtopivotthesolution.•OvercomingtheCultureofFearBuildingyourpracticeofexperimentationincludesovercomingacultureoffearthatisoftencouchedasfearoffailure,butisactuallymuchmore.•TheThin-SliceChangeStrategyIfyourgoalistotransformanentireorganization,thestrategywe’vefoundmostsuccessfulisa“thinslice”implementation.•WhatNottoChangePartofsucceedingatadaptingfastenoughisbeinggoodatknowingwhentochangeandwhennotto.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.32•But like the other changes required to become an adaptive leader, creating autonomous teams, figuring out their goals and boundaries, and helping them grow into high-performance teams are difficult. •One of the most difficult roles in leading change is that of empathetic listener. You are undertaking a digital transformation because of economic forces of change—external pressure. •An experimentation mindset admits that we don’t have the right answer and that we have a difficult problem to solve, one that needs creativity and diversity. Two things help us overcome the fear therespect and trust. Respect relates to expertise, and trust to execution.•As agile became more widely used, a few organizations—typically software companies—tried top-down implementations in which senior executives decreed that all teams would use agile. •As agile practices have approached mainstream status, organizations have molded practices and processes to their own unique situations, and strategies for expanding agile into wider organizations uses have all been accomplished—guided by four short, concise value statements.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.33Be Bold•A digital transformation requires leaders with a well-articulated purpose that inspires those around them. t is driven by an experimental process and a technology platform geared toward experimentation, but in the end people and culture dictate success. •Businesses don’t have thousands of years to adapt, and often not even tens of years. However, businesses do need a mechanism similar to mutations that can act as a catalyst for adaptation to environmental changes•Bold experimentation doesn’t end with the product: Your guided experiments could cover organizational structure, business model, a technology platform, and culture. The outcomes, measured by your choice of MoS, also help bound experimentation•Leading a digital transformation can be a daunting task, in large measure because it affects financial and power relationships in an organization. When you read about or have a consultant tell you about a process such as EDGE, it appears that there is a direct cause and effect.

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.34Riding Paradox•Theabilitytodifferentiatebetweenproblemsandparadoxes,alongwiththeabilitytobalanceparadoxicalresolutionstimeaftertime,areamongthedefiningcharacteristicsofanadaptiveleader.•Paradoxes aren’t solved once and for all; they require balancing actions again and again. There is even difficulty finding a word for the outcome of a paradox. A “problem” has a solution, but what is the outcome of a paradox—a “temporary solution”? The best word seems to be “resolution,” which has a dynamic aspect to it that “solution” doesn’t. So, problems have solutions whereas paradoxes have resolutions•Living with paradoxes means planning, but not becoming wedded to the plan. It means sensing when actual events override the plan and responding with the appropriate “resolution.” Learning to do this well is a keystone of adaptive leadership.Paradoxesthatleadersfaceincludethefollowing:▪Accountabilityversusautonomy▪Hierarchicalcontrolversusself-organization▪Predictabilityversusadaptability▪Efficiencyversusresponsiveness

ECOM425-Jim Robert Highsmith., Linda Luu., David Robinson. (2020). EDGE: Value-Driven Digital Transformation, (1st edition) published by Addison-Wesley Professional.35Inspire Others•Adaptiveleadershipisaboutleading.It’saboutdefiningandembracinganambitiousvision.It’sabouthavingthecouragetopushthroughnegativism.•Organizationalgritistheperseverancetocontinuouslylearnfromsetbackssothatitbecomes“justthewaywedothingsaroundhere.”•Gritreferstostrengthofcharacterandtheresolvetogetsomethingdone—nomatterwhat.•It’s about having the grit to persist in the hard work required to change. It’s about persistence—the willingness to adjust and move forward, but not giving up on the vision.•That’s not the end of the world in a company with strong organizational grit. Employees take the learnings and find better ways to solve the same problem. In such organizations, teams are rewarded for learning, not punished for failing.

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021ECOM425 –Department of E-Commerce| ةيرادالا مولعلا ةيلكةيلاملاوWeek-12 -Components of Successful Digital Business Transformations.Chapter 12-Components of Successful Digital Business Transformations.

ةعماجلاةيدوعسلاةينورتكللااةعماجلاةيدوعسلاةينورتكللاا26/12/2021Learning Objectives-Chapter 12-Components of Successful Digital Business Transformations.Tounderstandthetenstepsoforganizationaltransformation.ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc1. Always Remember the Ultimate Goals of Digital Business Transformations (the DBT BHAGs)•Creatinganorganizationthatcancontinuallychangeatpacewiththechangesaroundit.•Constructingthecapabilitytoidentifyandrealizevalueforyourcustomersandbusinessthroughdigital.2. Align the Team Around a Shared VisionAligningyourcoreteamiscritical.Partofthereasontransformationsfailisbecauseofalackofaccountability.Co‐creationofvisionandoutcomecanhelpyourleadershipmoreclearlyseetheirroleandaccountabilitywithinthetransformationprogram.Asteadyhandisimportant,asisavision,butrolemodelingwhatthebehaviorsarethatproducetheoutcomescreatesapathforotherstodothesame.Example:Amazonisacompanybuiltlatterlyinamoredigitalworld.Itstechnologydoesnotbelongtoanyparticulargroup.Amazon’stechnologyisitsproduct,thethingthatisitsbiggestdifferentiator.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc3. Get C‐Level Buy‐InClearsponsorshipandsupportcanmakeallthedifferenceingettingtheresourcesandattentionthetransformationprogramwillrequire.Senior‐levelsupportcandrivetherightaccountabilityandvisibilitytosustaintheenergyaroundthetransformation.4.AnchorinOutcomesTheleadershipteamhaddevelopedasolidcustomerrelationshipstrategyorientedaroundengagingthreecustomertypesandthedesiredexperienceforeach:Frequents,Regulars,andOccasionals.Atechnologyintegrationprograminitiatedtoimproveefficiency,reducecost,orimprovethecustomerexperience.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc5. Seize Your Quick Wins and CommunicateQuickwinsareanimportantwaytosignalprogress.Thesewinscancrossanumberofcategoriesfromprogressagainstoutcomes,toadvancingcapabilities,torecognizingprogressintheprocessitself.Peoplewanttoseewheretheyfitintothechange,buttheyalsowanttoseehowtheirleadersarereactingtoit.It’snotjustaboutwhatyoucommunicate,buthow.Authenticityiseverything.6.MoveFastRapidprototypingenablesyoutobuildoutsomeofyourmostambiguous(orambitious)ideastoseehowtheytranslateinreallifeandwhattheyactuallyenable.Whateveryourentrypointintotransformation,themostimportantthingisthatyouhaveaclearvisionoftheoutcomesyou’retryingtodriveandthatyoustarttochartthepathtogetthere.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc7. Be Thoughtful About Your Governance ChoicesTheteamneedstoincludepeoplewhobalancecriticalexpertisewithabeliefinthevisionyouarecreatingtogether.whatshouldyoulookforwhendesigningtheteam?•Leaderswhoaresigneduptothevisionofwherethecompanyneedstogo•Memberswhohavemeaningfulroleintheorganizationand/orcontrolofsizablebusinessunitthatwillleadthewayforthebroaderorganization•Thecoreteamhastobecross‐functionalandmulti‐disciplinary•Anyexternalpartnersshouldbetherebecausetheyfillaspecificgapontheteam–thiscouldbecapability‐specificortheycouldbetherebecauseoftheirstrengthingovernanceDecidingwhatlevelofleadershipispartoftheteamisalsoanimportantconsideration.

8. Choose Partners Who Will Co‐create and Are a Fit for Your TeamToday’spartnerecosystemsarecomposedofpartnerswhofillyourcapabilitygapsandalsoplayacriticalroleinco‐creation.Partnerswhoplaydifferentroleswithinyourtransformationand,asaresult,thecriteriamaylookdifferentforeach.Yourtransformationpartnermayneedtobridgevision,businessperspective,andtechnologicalexpertise.Asmuchasthetangiblecharacteristicsofyourpartnersareimportant,soaretheintangibles.9.KeepYourTeamsSmallandCross‐functionalSmall,multidisciplinaryteamsprovideawaytobreakthroughoperationalsilosandcreateprogressfaster.Rapidresponseteams,forinstance,bringtogetherasmall,diversesetofcapabilityleaderstobringprototypestolifeinamatterofweeks.Foroneofourlargebankingclients,webrokedownits1,500‐personengineeringteamintomoremanageableclustersof200people.Foreachcohortof200,weputinplaceacoreofagilecoaches,engineers,operationspeople,creativedesigners,strategists,businessanalysts,andotherchampions.Theyliaisedacrossthedifferentservicelines,actingasakindofguildoftechnicalprofessionals,i.e.,themodernworld’smastercraftspeople.Theapproachchangedthewaythecompanyapproacheditsengineeringfunctionandenabledthemtobringthedesiredproductstomarketmuchfaster.

ECOM425-NIGEL VAZ (2021). Digital Business Transformation: How Established Companies Sustain Competitive Advantage from Now to Next John, Wiley & Sons Inc10. Consider New Approaches to Funding That Match the

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