|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
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabilities include HD voice, video, multimedia messaging, mobility, conferencing, Web collaboration, deskt...
Mar. 30, 2015 01:00 AM EDT Reads: 1,480
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Mar. 29, 2015 10:00 PM EDT Reads: 1,820
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
Mar. 29, 2015 07:00 PM EDT Reads: 5,246
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.
Mar. 29, 2015 06:00 PM EDT Reads: 1,858
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Mar. 29, 2015 06:00 PM EDT Reads: 1,489
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Mar. 29, 2015 06:00 PM EDT Reads: 1,609
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...
Mar. 29, 2015 04:15 PM EDT Reads: 2,443
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
Mar. 29, 2015 04:00 PM EDT Reads: 1,437
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Mar. 29, 2015 03:30 PM EDT Reads: 2,176
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dr...
Mar. 29, 2015 03:00 PM EDT Reads: 2,867
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
Mar. 29, 2015 03:00 PM EDT Reads: 3,478
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the M2M space. This really allows some room for influential individuals to create more high value inter...
Mar. 29, 2015 01:45 PM EDT Reads: 4,674
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
Mar. 29, 2015 12:00 PM EDT Reads: 1,465
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment.
Mar. 29, 2015 12:00 PM EDT Reads: 820
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
Mar. 29, 2015 11:45 AM EDT Reads: 1,136
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
Mar. 29, 2015 11:00 AM EDT Reads: 2,113
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
Mar. 29, 2015 11:00 AM EDT Reads: 1,433
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
Mar. 29, 2015 08:30 AM EDT Reads: 2,063
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Things. Akana enables enterprises to share data as APIs, connect and integrate applications, drive part...
Mar. 28, 2015 04:15 PM EDT Reads: 1,560
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. Join SoftLayer on June 9 at 16th Cloud Expo to learn about IBM Cloud's SoftLayer platform, explore se...
Mar. 28, 2015 02:00 PM EDT Reads: 1,649