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Digital Transformation Game Plan

Book Description

Digital transformation is now synonymous with business transformation. Rather than simply blur the lines between IT and business, digital transformation removes that distinction altogether. This practical book provides a game plan to help your business through this transformation, along with technical concepts that you need to know to be an effective leader in a modern digital business.

Chock full of practical advice and case studies that show how businesses have made this transition, three professionals from Thoughtworks reveal lessons learned in guiding companies through the digital transformation process. While there’s no magic bullet available, you’ll discover effective ways to create lasting change at your organization.

With this book, you’ll learn how to:

  • Examine your current business model to determine the true value you are bringing to your customers
  • Simplify your business model to focus on the value you are creating for your audience
  • Roll out the simplified business model in a way that will lead to sustainable change
  • Build a world class technology capability as the core of your transformation strategy to drive change

Table of Contents

  1. Foreword
    1. The Digital Transformation Game Plan
  2. Introduction
    1. O’Reilly Online Learning
    2. How to Contact Us
    3. Acknowledgments
  3. I. Heightened Customer Expectations and Alignment to Customer Outcomes
  4. 1. The Simplified Business Model
    1. Shareholder Value Versus Customer Value
    2. Identifying Your Simplified Model
      1. 1. Understand Customer Value
      2. 2. Use a Thin-Slice Approach
      3. 3. Have the Correct Measures of Success
      4. 4. Align Everything to the Work
      5. 5. Create Visibility and Transparency
    3. Key Points
  5. 2. Understanding Customer Value
    1. Focusing on Customer Outcomes
    2. The Impact of Technology on Value and Expectations
      1. Evolving to Customer Outcomes
      2. It Takes Courage to Act
      3. How to Get Started
    3. Key Points
  6. 3. The Thin-Slice Approach to Transformation
    1. Why Big Transformation Programs Fail
      1. Broad Transformation Approach
      2. Biased Decision Making
      3. Copying Others Rather Than Learning for Yourself
    2. Implementing a Thin Slice
      1. Measure the Slice
      2. Get Everyone in on the Slice
      3. Arrange Teams Around—and Across—the Slice
      4. Slice Patiently
      5. Mixing Thin Slices and Broader Transformation Initiatives
    3. The non-“end” state
      1. Managing Change Fatigue
    4. Key Points
  7. 4. Measures and Decision Making
    1. Customer Value Measures
    2. Financial Measures
    3. Individual KPIs
    4. Improvement Measures
    5. Putting It All together
    6. Key Points
  8. 5. Aligning Work to Measures
    1. Cascade Approach
      1. Cascade Approaches in Action
      2. Retrofit Current Work
    2. Prioritization and Governance
      1. Case Study: Prioritization in Action
      2. Pivoting to a Simpler Prioritization Model
      3. Prioritizing at each cascade level
    3. Putting It All together
    4. Key Points
  9. 6. Visibility and Transparency
    1. Visual Systems
    2. Spaces
      1. Obeya Room
      2. Program Space
      3. Team Space
    3. Reports and Charts
    4. Walking the Walls
    5. Key Points
  10. II. Building a Responsive Organization
  11. 7. Organizational Constraints and How to Tackle Them
    1. Organizational Structure
    2. Role Obsession
    3. Death by Compromise
    4. Evolving Culture
    5. Key Points
  12. 8. Functional Constraints
    1. General Functional Alignment
      1. The Double-Triangle Model
    2. Finance
    3. HR
      1. Example Warning Signals: Employee Satisfaction Surveys and the Bell Curve
      2. Talent Management
    4. Legal and Regulatory Compliance
    5. Key Points
  13. 9. Letting Data Decide
    1. Data as a Source of Knowledge
    2. Data as a Decision Point: Choosing What to Do
    3. Use Data to Create an Intelligent Enterprise
    4. Key Points
  14. 10. Technology Concepts Every Executive Should Know
    1. Technology Excellence Matters
      1. Internal Software Quality
      2. Software Design and Technical Debt
      3. Skilled Engineers
      4. Business and Technology Leadership
    2. Growing and Empowering Talent
      1. Build a Culture of Learning
      2. Build a Culture of Empowerment
    3. CD and DevOps
      1. CD
      2. DevOps
    4. Digital Platforms
    5. Products Over Projects
    6. The Future Shape of the IT Department
      1. First, teams should be built around business capability or customer outcomes
      2. Second, “Two-Speed IT” is not sustainable
    7. Key Points
  15. 11. Technology Excellence Matters
    1. Which IT System Is a Utility Asset and Which Is a Strategic Asset?
    2. Why Internal Quality Matters for Strategic Assets
      1. High Internal Quality Drives a Lower Total Cost of Development
      2. Technical Debt Builds Up When Internal Quality Deteriorates
    3. Technology Excellence Is a Choice
      1. Adopt Agile Engineering Practices, Beyond Just the Management Practices
    4. Key Points
  16. 12. Growing and Empowering Talent
    1. Build More Core Digital Capability In-House
    2. Build a Culture of Learning
      1. Create a Safe Environment to Provide Feedback
      2. Encourage Continuous Feedback
      3. Create an Environment in Which It’s Safe to Fail
      4. Don’t Cut the Training and Development Budget
      5. Learning and Development Is an Important Function
    3. Build a Culture of Empowerment
      1. Communicate and Share Information
      2. Delegate Decision-Making Authority
      3. Nurture the Sense of Ownership
    4. Recruit for Potential
    5. Scaling Digital Talent Through Digital Partners
      1. The Cost-Driven Approach Is Outdated
      2. What to Look for in a Digital Partner
    6. Key Points
  17. III. Building Technology at the Core: A Tech Perspective for Business Leaders
  18. 13. Continuous Delivery and DevOps
    1. Release Software Features Early and Continuously
      1. Doing the Hard and Painful Things Early and More Frequently
    2. DevOps Further Extends the Cross-Functional Team Concept
      1. DevOps Is a Culture Change, Not a New Job Title
    3. Four Key Metrics for Success
    4. Summary
    5. Key Points
  19. 14. Digital Platforms
    1. Modular, API-Enabled Architecture Instead of Monolithic Architecture
      1. Is This Simply Software Reuse?
      2. Microservices
    2. Self-Service Data
    3. Delivery Infrastructure
      1. Removing friction
    4. Legacy System Modernization
      1. Seven Steps to Modernization
    5. Key Points
  20. 15. Products Over Projects
    1. Defining Product Thinking
    2. The Difference Between Products and Projects
    3. The Benefits of Product Thinking
    4. How to Enable Product Orientation
    5. Challenges When Moving to a Product-Centric World
    6. Summary
    7. Key Points
  21. 16. The Future Shape of the IT Department
    1. Better Alignment Between Business and IT
    2. Create an Explicit Strategy to Handle Growing Tech Complexity
    3. Align Teams with Customer Outcomes, Not Functional Systems
    4. There Shouldn’t Be Two Speeds
    5. Focus on Building Teams
    6. The “T-Shaped” Professional
    7. The Blurring Boundary Between Business and IT
    8. Business Leaders Will Be More Involved in Technology Decisions
    9. Key Points
  22. Final Reflection: The Importance of Leadership
    1. Driving Technology Transformation
    2. Creating Cultures of Experimentation
    3. Shaping the Future of Work
      1. How the Work Is Done
      2. Where the Work Is Done
      3. Who Does the Work
    4. New Leadership Traits
    5. Key Points
  23. Conclusion (Getting Started)
    1. The 34 Tenets of Digital Transformation
  24. Index