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NEW VINT REPORT: HOW COMPANIES SURVIVE BY MASTERING DIGITAL DISRUPTION WITH DEVOPS

“Mastering Digital Disruption with DevOps” is the final report in a series of four on Disruption from global IT consultancy Sogeti’s trend lab VINT. It defines the current disruption era where innovation and agile working methods rule, and sketches out what incumbents need to do in order to master this change. 

24 March 2016, Paris, France/Vianen, Netherlands – Traditional organizations can't keep up with the pace of innovation. Their employees are not engaged and they are lacking real customer centricity. New practices on how to run the organization is gaining momentum. Management innovation, and in particular the practice of DevOps1, are revolutionizing the way organizations are managed. And that is needed, because in this business disruption era there is no way that old fashioned management styles can lead to newly gained market success.

Doing DevOps
According to the report, Nasdaq, American insurance company Nationwide, retailer Target, Western Union and the Australian airline Quantas are all doing DevOps.

This holistic approach of running an organization not only optimizes the collaboration between development side (Dev) and the operation side (Ops) of a company, it also forms a blueprint for mastering disruptive innovations in the market”, commented Menno van Doorn, co-author of the new report from VINT.

Another example of a company doing DevOps is the Dutch ING Bank2 that is implementing what is called “The Spotify Model”; a DevOps way of working that has been introduced at the music service company Spotify. ING has substantially accelerated its innovation with DevOps. Their time-to-market for new functions and ideas was reduced from more than 20 weeks to approximately four days. It has led to risk reduction: the test coverage rose from 20 to 80 per cent and the overall risk decreased. And customer satisfaction of the app rating for ING apps in the app store went from one to 4.5 stars.

Menno van Doorn, continued:

DevOps is hotter than ever, even though its name might not reflect that. But what it stands for covers the whole spectrum of what organizations need to do to be successful in this business disruption era”.

No easy fixes
Big Bang market introductions of new services like Uber were the wake-up call for many incumbents. The new report states that there are no easy fixes to fight, survive, let alone 'thrive' digital disruption. A trip to Silicon Valley, buying a startup, starting an incubator, sandboxing, or fighting startups in court is not enough. The DNA of the company, its culture and bureaucracy need to change. Management innovation is the only sustainable way to fight disruption.

"It's the end of management as we know it. Multidisciplinary teams, self-organization and a minimum viable bureaucracy are some of the principles that make organizations keep up with startups", said Menno van Doorn.

Antifragility
The long term perspective of organizations future success has been described in Nasim Taleb's book 'Antifragile'. Instead of robust or resilient, organizations should strive to become antifragile: gain strength from disruptions. Implementing management innovation, DevOps and other modern practices like Lean Startup are needed for antifragility.

Menno van Doorn commented:

"The black swans have arrived, and more of them will come. Organizations need to work on their DNA in order to deal with that reality".

Last report in a series of 4
The “Design to Disrupt” research from VINT includes a series of four reports. The first report, “Design to Disrupt – An Executive Introduction” marked the start of the research project. The second report, “The new digital competition”, analyzed the new digital competition from fast-moving, agile startups growing their business with the speed of light through disruptive innovation. The third report, "Blockchain: cryptoplatform for a frictionless economy”, concentrated on Blockchain and Bitcoin.

The forth report “Mastering Digital Disruption with DevOps” is the last in the series and is authored by VINT trend watchers Menno van Doorn and Erik van Ommeren together with from Software Testing expert John Dial (Sogeti US) and Management Consultant Dave van Herpen (Sogeti Netherlands).

Download the report here: http://bit.ly/1SubOqS

All Sogeti publications are available in our online bookstore: www.ict-books.com

[1] In traditional, functionally separated organizations there is rarely cross-departmental integration of these functions with IT operations. DevOps promotes a set of processes and methods for thinking about communication and collaboration between development, QA, and IT operations, particularly useful in an agile world. 
[2] Source: ING video “Agile way of working at ING Netherlands: https://www.youtube.com/watch?v=NcB0ZKWAPA0

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