|By Jason Bloomberg||
|August 15, 2014 09:45 AM EDT||
Imagine for a moment you’re in the woods, trying to climb to the top of a nearby mountain – only you’ve lost your way, and you’re not sure where the mountain is. So you get the bright idea: simply walk uphill until you can’t walk uphill any more. At that point you’ll be at the top of the mountain, right?
The answer, of course, is perhaps, but probably not – and in any case, the strategy of always walking uphill is an unquestionably poor technique for finding your way to the top of a mountain, given the unpredictable nature of the terrain. After all, this strategy will simply take you to the top of a nearby hill. Only if you’re exceptionally lucky will that hill end up being the mountain you’re looking for.
This hill-climbing story illustrates the problem of local optima: any optimization strategy that focuses on improving the current situation may not lead to the best solution. So, how do you find the best solution? Well, it depends. Perhaps you can see the mountain from where you are, but perhaps not. Maybe you simply have to RTFM (read the frickin’ map), assuming you have one, and you can identify your current location. Or perhaps you should set off in a random direction for a random amount of time, see where you end up, and then try going uphill – repeating as often as necessary. Eventually you’re bound to hit upon the mountain, right? Bottom line: there is no straightforward answer.
The reason this Cortex is spending time climbing mountains is because the local optima problem affects most Digital Transformation initiatives, since the majority of such initiatives are centered on some kind of optimization activity: optimize the customer experience, or optimize the integration of Web and mobile, or optimize the organization’s use of social media, etc.
If you set a goal based upon starting where you are today and heading in a direction that will improve the current situation, you will likely reach a local optimum. But it probably won’t be the true optimal strategy, because, of course, some competitor will end up beating you to the top of that mountain – a mountain you may not have even known about until it’s too late.
Nevertheless, managers love optimization strategies, because they lead to positive business outcomes, and positive business outcomes lead to cash bonuses. And after all, labeling such optimizations as Digital Transformations is generally accurate, as you are using digital technologies to change your business somehow. But we’re still missing a big part of the transformation picture: disruption.
Disruptions shake up the status quo in some unpredictable direction, much like the random walk approach to finding the mountain peak. They can help you avoid the problem of local optima, but even so, there’s no telling if they will take you any closer to your goal. The challenge for Digital Transformation initiatives, therefore, is to leverage – or even introduce – disruptions in a way that will actually help you find that highest mountaintop.
But disruptions are inherently unpredictable and risky. External disruptions – sudden changes in the marketplace, geopolitical environment, available technology, etc. can occur at any time, and even internal disruptions, including reorganizations, changing management policies, new management, etc., can lead to unpredictable results. What’s a risk-adverse manager to do?
Intuition tells us that disruptive transformations are potentially much more likely to help us achieve our strategic goals than optimization transformations, even though they appear to be much higher risk. Do we stick to optimizations, comfortable in the business outcomes we can achieve, even though we may miss the mountaintop? Or do we place a bet on a disruptive transformation, even though it feels like a plunge into chaos? Perhaps we have no choice, as an external disruption may force us to take the riskier path. How do we manage our Digital Transformation then?
Enter Complex Systems Theory
Some background: Complex Adaptive Systems are self-organizing systems of systems that exhibit emergent properties, which are properties of the system as a whole that aren’t properties of the component subsystems. The central principle to all of Intellyx’s research is that the enterprise is a complex system consisting of people and technology subsystems, and business agility is an emergent property of the organization as complex system. The challenge of Agile Architecture, therefore, is influencing people and technology in such a way as to achieve business agility, rather than the chaotic behavior that large organizations typically exhibit.
Many natural phenomena can be explained in terms of emergent behavior, from the construction of beehives to the effects of DNA. The analogue in nature we’ll use in this Cortex is the power of natural selection that enables species to adapt to changing environments.
As complex systems consist of component systems and their relationships, we can think of such systems as networks. In the case of evolution, the components are individual creatures in an ecosystem; for us, the components are people and technology systems. Sometimes the connections (or edges, in network-speak) between components are tight, for example, within family groups, or loose, as they might be between different groups. In the case of an enterprise, tight connections between people include hierarchical reporting structures, behaviors that result from formal governance policies, etc., while loose connections would refer to interactions between people in different teams or in different parts of an organization. Similarly, tight connections between technology systems would include traditional integrations between systems, while loose connections indicate interactions between loosely coupled systems that are architected properly for inherent flexibility.
Shifting a system from high connectivity to low connectivity increases evolutionary change. Furthermore, disruptions also lead to increasing rates of evolutionary change, in particular when the system exhibits low connectivity. Such change leads to adaptation to the disruptions in the environment, so combining low connectivity with disruptions leads to periods of rapid innovation and adaptation. However, when a system retains its high connectivity during periods of disruption, that system is less likely to evolve, and thus won’t adapt to the change. Extinction, of course, is the eventual result.
The lessons here for enterprises seeking Digital Transformation are straightforward. In order to foster high levels of innovation that lead to adaptation to both internal and external disruption (in other words, behavior that gets you to the top of the mountain), you must foster an organization with low connectivity and furthermore, give them flexible, loosely coupled technology tools. In such environments, teams have the leeway to self-organize, and their innate creativity will foster innovations that will lead over time to the best solutions. And the role of management in this process? Give people the right tools and get out of their way.
The Adaptive Flexibility Matrix
For our Digital Transformation efforts to be successful at achieving our strategic goals (as opposed to optimizing for short-term business outcomes), we must embrace disruption, loosen the connections between people and take steps to make our technology loosely-coupled and flexible. Such transformation is a tall order to be sure, and many organizations seeking it drop the ball in one way or another, as shown in the chart below.
Adaptive Flexibility in Digital Transformation Initiatives
The chart above maps both technology and people in an organization from less flexible to more flexible. If neither are flexible, of course, then transformation is impossible, and you’re stuck in the lower left corner.
One mistake companies make as they try to get out of this corner is to focus on building or buying more flexible technology, without going through the more difficult cultural and organizational shifts that lead to more flexible people. Such companies move across the bottom of the chart from left to right, and end up with “tone deaf” digital efforts – yes, they may have mobile interfaces and social media, but perhaps their mobile technology isn’t responsive, their social media strategy puts off or angers customers, or they drop the ball on the human side of Digital Transformation in some other way.
Another common mistake is to undergo a digital initiative in the face of inflexible technology: moving from lower left to upper left on the chart. In these organizations the digital team leaves the recalcitrant tech behind, separating the digital efforts from traditional IT – which leads to dangerous pitfalls for any digital effort.
The reason why successful Digital Transformation initiatives are so deceptively difficult is that organizations must change along both axes at once in order to achieve the upper right hand corner, which has all the elements the complex system of the enterprise requires to build innovative, self-organizing teams that can both respond to disruption and leverage it for competitive advantage – in other words, achieve the business agility that drives all true transformation.
The Intellyx Take
If you understand how with the proper initial parameters, complex systems can lead to high levels of adaptive innovation in times of increased disruption, then the argument in this Cortex makes complete sense. However, it is deeply counterintuitive when you place it into the context of traditional management approaches.
Unfortunately, much of the Digital Transformation thought leadership available today comes from management consultants, who spend much of their time advising executives. “Digital maturity requires strong leadership to drive change!” trumpets MIT Sloan Review. “Successful [Digital Transformation] does not happen bottom up. It must be driven from the top!” exclaims Capgemini (exclamation points added, but boldface was all theirs). Such consultants have that perspective, of course, because they have to present a story executives are comfortable with.
In contrast, this Cortex should make traditionally-minded executives (namely, the ones who purchase management consulting) extraordinarily uncomfortable. Stop managing hierarchically. Instead, spin off autonomous, self-organizing teams. Don’t fear disruption. Instead, embrace and drive disruption. Change reporting structures. Move people around. Rethink governance. Revamp HR policies and procedures. Get rid of all the scar tissue in the organization that is getting in the way of innovation. Let people self-organize and let them figure out how to adapt to disruption on their own. The leadership we really need is likely to be quite different than the leadership the consultants are talking about.
To old guard executives, this approach sounds like a recipe for chaos. However, complex systems theory has a whole chapter on chaos as well, and the old guard has it backwards. In fact, chaos describes the status quo at most large enterprises – bureaucracy, empire building, the absence of a single source of truth, inflexible legacy technology, and rigid processes that stifle the best and brightest. Instead, this Agile Architecture approach leads to emergence – business agility in the face of any disruption, self-organization that leads to adaptation and drives innovation. Isn’t that the Digital Transformation you’re really looking for?
Image credit: ThenAndAgain
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Aug. 3, 2015 11:30 PM EDT Reads: 242
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Aug. 3, 2015 11:00 PM EDT Reads: 693
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Aug. 3, 2015 10:45 PM EDT Reads: 219
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 3, 2015 06:45 PM EDT Reads: 533
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Aug. 3, 2015 05:45 PM EDT
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Aug. 3, 2015 04:00 PM EDT Reads: 276
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Aug. 3, 2015 03:45 PM EDT
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
Aug. 3, 2015 03:30 PM EDT
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
Aug. 3, 2015 03:15 PM EDT
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Aug. 3, 2015 03:00 PM EDT Reads: 560
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Aug. 3, 2015 12:30 PM EDT Reads: 208
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Aug. 3, 2015 09:45 AM EDT Reads: 367
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Aug. 3, 2015 07:30 AM EDT Reads: 193
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Aug. 2, 2015 06:00 PM EDT Reads: 1,138
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Aug. 2, 2015 04:00 PM EDT Reads: 435