One more unique example is Atlassian, and thanks to Khanh Tuongfor sending me these links, becausethiswas definitely a new one to me. We used it well in this talk by uncommenting as we went. And using it to illustrate the narrative and our content. Mapping the Evolution of Cloud up to Serverless DevOps best practices, case studies, organizational change, ways of working, and the latest thinking affecting business and technology leadership. If we take the value chain and turn it into a Wardley Map, we can assess what we need to focus on as well as the potential inertia points. We’ll map our value chain on the map with the stakeholder at the top. Positioning the elements left to right (or along the x-axis) depends on how well developed that element is. Business Goal This turned into a fascinating adventure through Competitive Advantages, Mental Models, and practical lessons for operators. Also lots of fun pictures and diagrams in this one!

What is the Value Flywheel? - IT Revolution

Since 2014, you’ve asked for a way for this community to interact between conferences. Well, we’re finally making it happen. We learned that under the right conditions, the problems of commitment, alignment, motivation, and change just melt away. They largely take care of themselves.[…] There’s a whole bunch of advantages. One is a problem-prevention culture, which is an exciting concept. Do companies understand that they need a problem-prevention culture in their engineering and product areas? It doesn’t exist in many organizations; It hasn’t cut through. They’re still on the feature, factory, and server mindset. Deliver, deliver deliver. Feature, feature feature. The software engineer in an organization is focused on a different set of tenets than the CEO. The engineer’s responsibility is to build well, so there are specific tenets that will help set them on the right path. Culture of discipline: Fanatical adherence to the Hedgehog Concept and refuse to do anything that is not inline with this or pursue other opportunities that can divert the company

Customer reviews

Mark McCann: Then finally, the observations. We use these observations really to drive, “Well, what are we actually going to do? What is this map telling us? What actions is it compelling us to start thinking about?” The observations we have here around, that increased the attendee-speaker interaction. The virtual platform has created a new value proposition. A speaker to attend the interaction is now easier, so we probably should do something about that and start capitalizing on that. The well architected practice helps problem prevention. Failure isn’t an option on a virtual conference. You need this to be up and resilient and highly available. So the platform needs to be very robust and you don’t want to custom build that for a few extra features. You want to basically leverage and do your homework, but leverage a class capability that already exists out there that has those well architected characteristics that you need to deliver a compelling virtual event. The “flywheel” loses momentum and slows down each time the objective changes and resources are reassigned, eventually slipping into a Doom Loop, a circumstance in which every action leads to a worsening of the initial situation. The “flywheel effect” and the “doom loop” can occur in the same firm at the same time, especially if a company does not fully comprehend what components enabled the “flywheel” in the first wheel and makes rash alterations. The company famously touts that it has grown without sales reps, precisely because its mid-market and enterprise teams farm exclusively within the pool created by the company’s marketing engine. This is because Network Effects (past a certain tipping point, especially when combined with virality), can be auto-catalytic.

Serverless architecture case study - The Serverless Edge

There’s also another dimension to this. I’ve experienced squads that work with well-architected and commit to work through all the processes. And I have worked with teams that don’t engage. When you compare the two, they’re very different. So it’s an interesting question, and it has multiple sub components to how you answer it. Because when you talk about enabling engineers in a big company like Liberty Mutual, you’re talking about large numbers of engineers. So it could be 1000s, across the globe, we’re talking about as opposed to maybe a couple of small teams. Direction alignment, enabling constraints and walking the walk There’s much more access now, because at this event, we’re going to be speaking to you on speaker chat as we are presenting here. So maybe we can use that time to find some of the adopters of the patterns and explore further use cases. Then we can find some minds here who are trying to tease out some capabilities or some terms and we can use that. It’s a valuable capability that has emerged there. It’s not a primary need, but we need to think ahead of these things. We need to start thinking, “What are the new emerging values that we, as a conference provider, can grab.” Maps tend to be on the walls when you are in the office. People get around a whiteboard and talk about a problem like position movement and placement. And then you photograph the map on the whiteboard. And you take the photograph and then digitise it.Expect real-life transformation stories from startups to large global orgs including our own journey at Liberty Mutual. In 2013, we realized that the cloud was not just another data center; it could offer a transformational way of working. We sensed a paradigm shift and knew it was time to start exploring. We were following the work of Simon Wardley and his technique, called Wardley Mapping. First, let’s do some introductions. My name is David Anderson. I’m an engineer with extensive enterprise, cloud, and leadership experience. It was used to state that companies don’t become exceptional as a result of a single intervention or initiative, but rather as a result of a series of small wins that accumulate over years of hard work until momentum takes over to power sustained periods of accelerated growth that greatly outstrip the effort being applied at that particular time. Network Effectsand Flywheel Effect are very commonly conflated, because they so commonly occur together. The Chicago Bulls, a basketball team in the National Basketball Association league in the United States of America, is an example of an organization that experienced both the “Flywheel Effect” and the “Doom Loop.” While most people think of Michael Jordan’s breakout season in 1991 as the “event” that led to the team winning six championships in eight years (1991 to 1998), it was actually the many decisions made by General Manager Jerry Krause between 1985 and 1991 that accumulated to build a team around Michael Jordan and resulted in the “overnight” success of 1991.

Wardley Mapping with the Value Flywheel - The Serverless Edge Wardley Mapping with the Value Flywheel - The Serverless Edge

The more the goal or north star of the organization moves to the left on the map (toward Genesis), the more unique that goal is on the market (and potentially more valuable). But, if the components below the goal are also situated too far to the left (i.e., if the elements needed to achieve the goal are still too expensive, require too much toil, etc.), then the business goal may seem too farfetched— it will not get the support required. This post is a transcript of the 2021 DevOps Enterprise Summit presentation by David Anderson and Mark McCann. You can view the full video here. That said, it’s essential to understand that we are constantly evolving—these tenets may not hold in a few years. For that reason, we will also illustrate them using Wardley Maps. You should map your context and adapt these principles to work in your environment. If you have ever tried to drive a spin bike or a potter’s wheel, you know how difficult it is to start the wheel moving. However, once you’re moving, you’ll benefit from the momentum you’ve built up from your earlier efforts. Similarly, the framework can assist enterprises & businesses to help grow by accumulating tiny wins that build on each other over time, eventually gaining enough momentum for development to occur on its own. Origin

The question every business leader must ask themselves is this: Is technology really driving your business? There is a significant culture change required to truly achieve this. Just lifting and shifting into the cloud will only give you a nicer data center. Simply writing more code only increases your organization’s liability, it doesn’t guarantee you’ll win in the marketplace. You won’t really be benefitting from what these technologies have to offer your business unless you embrace a deeper mindset shift. And, the business metrics delivered became simply unbelievable: 95%+ runtime cost-savings, new functionality delivered months ahead of schedule, global rollout in weeks instead of years, innovative features leading the market and deploying multiple times a day. 6. The birth of the Serverless First Organization Strategy

12 Key Tenets of the Value Flywheel Effect - IT Revolution

Another advantage of scale comes from psychology.The psychologists use the term social proof.We are all influenced — subconsciously and to some extent consciously — by what we see others do and approve.Therefore, if everybody’s buying something, we think it’s better.We don’t like to be the one guy who’s out of step. One of the biggest misunderstandings in the world of software is the value of code. But code is a liability, as we’ll say repeatedly in this book. The more code we write, the more complexity and risk we generate for ourselves. In the modern cloud, it’s important to offload as many capabilities to the provider as possible. Less code allows teams to move faster. Taking advantage of serverless is the clearest next best action for many modern organizations. A shared understanding is one of the most challenging things to achieve in software. The process of developing software involves layers upon layers of abstraction: we take code and hide it behind a single call or button, and then we build again on top of that. The code is an abstraction, the architecture is an abstraction, and the deployed system (especially on the cloud) is an abstraction. Psychological safety is critical here, as it is the foundation for an environment that fosters success. Engineering requires collaboration, challenge, vulnerability, calculated risk-taking, and skill. A highly charged political environment will negatively impact the team’s success. Alternatively, a team-first environment, like in many sports, will lead to better results and engagement all around. It is irresponsible for modern organizations to ignore or waste the potential that effective technology brings to the business, in particular, the power and potential of serverless and the modern cloud—both represent software in its purest form, without hardware. Executives must learn to harness today’s technology to drive innovation and power change. They must challenge their own assumptions, continuously innovate, and adapt to their changing environment. 8. Embrace a deeper mindsetThe Value Flywheel Effect is a technique already being used by next-generation leaders and companies to succeed in the modern competitive landscape. Combining the power derived from the Value Flywheel and the situational clarity provided by Wardley Mapping, organizations are able to sense and respond to change, easily navigating the rough waves ahead, including migrating to the cloud and serverless. The Value Flywheel Effect: Power the Future and Accelerate Your Organization to the Modern Cloud by David Anderson – eBook Details It can accelerate the growth of a business and the widening of a moat,but it is not itself a source of competitive advantage.It is a force-multiplier of existing competitive advantages. Network effects represent the demand-side economies of scale. The Flywheel Effect and Network Effects commonly occur together. Network effects almost always lead to or create a Flywheel Effect, but the Flywheel Effect can occur where network effects do not, as we’ve seen in the previous examples. Network Effects are the most powerful source of the Flywheel Effect. This is because Network Effects (past a certain tipping point, especially when combined with virality), can be auto-catalytic. Direction