Pivotal’s Rob Mee presented at the Global ICT Summit in Tokyo, Japan. Organized by the Nikkei and the Ministry of Internal Affairs and Communications, Rob was asked to present on how software is disrupting economies and industries worldwide, and how traditional approaches, paradigms and processes need to change in order to compete in these modern times. Say It Again—Software Is Eating The World Underscoring the types of radical changes software is making to businesses models, Rob pointed out 4 different examples where software was so powerful it tacitly replaced the need for business assets. Uber. The world’s largest taxi company owns no vehicles. Facebook. The world’s most popular media company creates no content. Alibaba. The world’s most valuable retail company has no inventory. Airbnb. The world’s largest accommodation provider owns no real estate. Software is helping companies compete more aggressively on product, business model and user experience. Companies like Square are inventing cash registers that fit in a baby’s palm, turning your phone or tablet into a critical business device that can wander. Backed with free mobile point of sale tools, online stores and reporting, all types of retailers, professional services, and transportation providers are flocking to use this service. On the consumer side, Apple is reinventing how we pay these merchants, encapsulating the entire process in one natural motion. By means of paving the way to a new standard in payment experience, Apple has managed to insert itself into the payments industry—effectively inserting itself as another step in a value chain, while convincing us all it is a good thing. The Secret To Digital Transformation Is Culture For more than 25 years, Rob has lead Pivotal Labs, the organization known for setting the bar for software development excellence. In fact, many of the companies disrupting industries today have worked with Pivotal Labs at some point to get there. The secret is simple—it’s rooted in your company’s culture. Your company needs to transform itself to become a software company, with hyper focus on building something meaningful inside a framework that encourages productivity and quality. At a high level, there are 3 key principles that need to permeate your culture in order to gain the kind of focus needed to complete your digital transformation. Agile development with pair programming. To truly embrace agile development, there is a lot to learn. By pairing developers, you optimize a learning environment. Agile experts can share process knowledge. Programming language experts can share technical expertise. And by switching up pairs and assignments routinely, developers gain a broader understanding of all of the systems supporting their applications. Armed with better expertise and understanding of the full application, pairs turn out results more quickly by breaking down barriers to development more faster.

1. THE SECRET
BEHIND SILICON
VALLEY
Rob Mee
Pivotal, Executive Vice President, R&D and Products
Changing the World by Building
Great Software Companies

2. BUILD SOMETHING
MEANINGFUL

3. SILICON VALLEY
Home to the world’s most valuable
and important companies

4. SOFTWARE IS CHANGING
INDUSTRIES
$6BN
Financial Services
$20BN
Hotel
$50BN
Transportation
$38BN
Entertainment
$31BN
Automotive
$3.2BN
Industrial Products

5. The world’s largest taxi company owns no vehicles
The world’s most popular media company creates no content
The world’s most valuable retail company has no inventory
The world’s largest accommodation provider owns no real estate
SOFTWARE IS CHANGING
BUSINESS MODELS
Credit: Tom Goodwin, SVP Havas Media

6. March 5, 2015
GOOGLE INTRODUCES LONG-ANTICIPATED
INSURANCE
SHOPPING SITE

7. ANYONE
COULD BECOME
YOUR COMPETITOR

8. BUILDING A
NEW FUTURE

9. MAKING THE
ONCE IMPOSSIBLE
PROBABLE

10. CIO DINNER
Industry Insights & Trends

11. Automotive Industry
USING SOFTWARE TO
TAKE DRIVERS
Competing on
Product
Competing on
Business Model
Competing on
Experience

12. Financial Industry
USING SOFTWARE TO
TAKE CUSTOMERS
Competing on
Product
Competing on
Business Model
Competing on
Experience

13. 73.3
79.4
83.8
88.4
93.3
98.4
103.8
109.5
115.6
121.9
128.6
135.7
143.2
3.7 5.0 6.8 9.3
12.7
17.2
23.4
31.8
43.3
58.9
80.1
108.9
148.1
5.0
7.0
9.9 14.3
21.2
32.0
49.2
77.3
123.7
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Retail Industry
USING SOFTWARE TO
GROW ONLINE SALES
Store Sales // +5.5%
Online Sales // +36%
Online Sales // Aggressive
$80BN
Annual Revenue

14. SOFTWARE IS
YOUR DOMAIN

15. MECHANICAL ENGINEERS CONSULTANTS SOFTWARE ENGINEERS
Domain Expertise Business Model Software Development
LEGACY APPROACH TO
PRODUCT DEVELOPMENT

16. LEGACY APPROACH TO
ENGINEERING
Engineers
Quality Assurance
Release Engineers
Infrastructure
Operations
x500
x100
x25
x35
x50
ENGINEERING DIVISION

17. IN THE FUTURE
REFOCUS

18. FOCUS NOW MEANS BEING AN
EXPERT IN YOUR
DOMAIN AND A GREAT
SOFTWARE COMPANY

19. ENABLING SOFTWARE DEVELOPMENT
WITH PIVOTAL OPEN
CLOUD PLATFORM

20. THERE IS A NEW WAY
OF DOING THINGS

21. 4 Engineers (1 Client)
1 Product Manager
1 Designer
0 Project Managers

22. AGILE PAIR PROGRAMMING
SCALES
3 MONTHS 6 MONTHS 9 MONTHS 1 Year
EXPERT
NOVICE

23. BECOMING A GREAT
SOFTWARE COMPANY…
IS NOT Just about agile development
OR Changing how products are built

24. IT’S ABOUT BUILDING A
GREAT CULTURE

25. April 28, 2015

27. REPROGRAMMING THE
WORLD TO CREATE A
BETTER FUTURE

28. S I L I C O N V A L L E Y

29. T O K Y O

30. LET’S BUILD
SOMETHING
MEANINGFUL
Rmee@Pivotal.io