1.
© Copyright 2018 Pivotal Software, Inc. All rights Reserved.
Feb 2019
How to Drive More Value
From Innovation Initiatives

2.
Who We Are?
Paul Choi
Sr. Director, Pivotal Labs
pchoi@pivotal.io
Lauren Gilchrist
Director, Pivotal Labs
lgilchrist@pivotal.io

3.
How to Drive More Value From Innovation Initiatives
● Background on Pivotal
● Software Development Industry Themes
● Common Problems Holding Back Enterprises Today
● Best Practices for Product Development
● Success Stories
● Q & A

4.
Pivotal’s Mission
is to transform how the world
builds software.

5.
Pivotal takes a comprehensive approach to changing how customers drive
more value from software
Methodology
Learn the necessary practices to
build modern software
Tools
Build with products focused on
developer productivity
Platform
Run every app, on every cloud,
on a unified platform
More Impactful
software
Pivotal Labs and
Services
Pivotal Cloud Foundry
Best-in-class products
Your teams
Pivotal
Culture
Continually improve and deliver
customer success

6.
We believe it’s fundamental for all
companies to develop modern
software development capabilities
as a core competency

7.
$32B Market Cap
Financial Services
$120B Valuation
Transportation
$158B Market Cap
Entertainment
$30B Valuation
Travel & Hospitality
$3.2B Acquisition by Google
Home Automation
Software is disrupting entire industries

8.
The greatest risk for any business
today is the pace of change.

9.
Cover w/ Image
What Does this mean?
No one is
entitled to
their
business
model.
Data: INNOSIGHT/Richard N. Foster/Standard & Poor’s

10.
Reasons you should be good at software
Your
customers
expect
seamless
digital
experiences.
You can
acquire and
engage
customers
faster and
cheaper
online.
You can
innovate and
adapt to
change more
rapidly.
Your
competition is
improving.
Your
employees
expect it.

11.
Enterprises that become good at
software create tremendous
value...

12.
Domino’s Pizza has increased its Stock Price by 1600%
since 2011
Launched
first iOS App
in 2011
Over 50% of
U.S. sales from
digital channels
Launched
first Android
App in 2012
Introduced
voice
ordering via
apps
Continued to
invest and
iterate on
software &
digital offerings

13.
Home Depot has increased its stock price by over 550%
since 2010
Launched
Apps on 3
Platforms
Began adopting
modern software
practices and
platform
Building software
at scale with
platform and
modern practices

14.
So what’s preventing enterprises
from being good at software?

15.
Current state of software dev for most enterprises today
Project
mindset, not
product
mindset
State of Agile
is Poor
Dev
productivity is
low (40%)
Unclear if
teams are
building the
“right” thing
Path to
production is
manual and
laborious

16.
“We built something for
our customers but it
doesn’t meet their
needs. Users aren’t
adopting our product”
“It takes forever to
release new features.
We see opportunities to
sell to new customers,
but we can’t respond
to change fast enough.”
“We handed off the
requirements to IT,
but then 6 months later
we got a product that
didn’t meet our
expectations.”
Common problems we hear from clients...
© Copyright 2018 Pivotal Software, Inc. All rights reserved.

17.
What can you do about it?

18.
Adopt Modern Software
Development Best Practices

19.
Balanced / Cross Functional Product Teams Yield Best
Outcomes
Design
Are we solving a real
user need?
Development
Are we building
production-ready,
sustainable software?
Product
Management
Will this help the
business?
Desirable
“What pains exist today for the
user? How might we solve those
pains? Are they able to use the
system effectively? Will they adopt
this product?”
Viable
“By solving these specific user
problems with these specific
solutions, are we creating valuable
business outcomes? How might we
measure those outcomes?”
Feasible
“What are the technical
complexities necessary to satisfy
the project and product goals best?
How can we build a system that
will respond well to change?”
Product
Confidential

20.
User Centered Design
Ensuring the software solves a real
problem for real users in a desirable
and usable product.
■ User Interviews
■ Ethnographic studies
■ Persona definition
■ Prototype creation
Design
PRACTICES
Lean
Reducing the risk of building the
wrong thing while comfortably
changing direction
■ Minimum Viable Product (MVP)
definition
■ Lean experiments
■ Identify & test assumptions
■ Data driven decisions
Product
Management
PRACTICES
Extreme Programming
Building working software at a
consistent speed and quality in the
face of changing requirements.
■ Paired Programming
■ Test-Driven Development
■ Short iterations
■ Continuous Integration /
Continuous Deployment
Development
PRACTICES

21.
Lean Product Management Practices
Lean is a product methodology
designed to decrease risk and reduce
waste through constant validated
learning.

22.
Long feedback loops, higher risk
Plan
QA &
Test
BuildDesign
Release
Start Finish
Months or Years
Waterfall Development

23.
Waterfall Risk + Time

24.
De-Risked Development

25.
Build, Measure, Learn

26.
User-Centered Design (UCD) Practices
UCD is a product design philosophy that emphasises
designing the product around how the user can, wants or
needs to use it, rather seeking to change the user's
behaviors around how the product works.
We aim to design a solution that solves user and business
problems.
It prioritises contact with end users, and not proxies, in order
to determine value. We take an evidence-based approach.

27.
What are the
problems?
Is this solution
valuable?
Is this solution
easy to use?
Exploration Validation Usability
User-Centered Design (UCD) Practices

28.
Exploration Validation Usability
User-Centered Design (UCD) Practices
Uncertainty Clarity
Time

29.
Users Needs Use Cases Features Deliver Learn
User-Centered Design (UCD) Practices

30.
Agility is the ability to react to change. We practice a
flavor of agile called Extreme Programming (XP).
XP ensures a team builds working software at a
consistent speed and quality in the face of changing
requirements.
We assume collaborative, cross-functional and
self-organizing teams that deliver software in an
incremental and iterative way.
Extreme Programming (XP) Practices

31.
Liberty Mutual
To Minimum “Shoddy”
Product
To production in 55
days, all based on user
interaction/feedback
11% Conversion
Double-digit y/y revenue
growth, thanks to new
SaaS product on PCF
BEFORE: No digital way to buy motorcycle insurance
online. Traditional methods could take 9-12 months
defining the solution.
SOLUTION:
● Pivotal Labs engagement for Agile methodology
● Pivotal Cloud Foundry
20 Quotes
Per day generated by
the app after four
months and no
advertising
© Copyright 2019 Pivotal Software, Inc. All rights Reserved.
28 Days 45 Updates
“That’s an impressive
conversion rate for a brand new
online application.”
—Johnathan Reardon, Vice President &
Senior Director of IT at Liberty Mutual

32.
US Air Force
Fuel cost savings for
one application
To deliver MVP into
production
1st DoD Team
To continuously deliver
to SIPRNet
BEFORE: Took an average of 8 years to deliver software
to warfighters. Risk management framework had 400-800
controls to navigate for an Authority to Operate (ATO)
SOLUTION:
● Engagements with Pivotal Labs for Agile/XP
methodologies
● Pivotal Cloud Foundry
● Reengineering procurement process
30/month
Production deployments
© Copyright 2017 Pivotal Software, Inc. All rights Reserved.
$428k/day 120 Days
“We’re now saving literally
hundreds of thousands of
gallons of fuel per day
because we’re more efficient
in how we plan.”
— Lieutenant Colonel Enrique Oti,
United States Air Force
Sources: https://content.pivotal.io/videos/day-2-keynote-lauren-knausenberger-and-bryon-kroger
https://content.pivotal.io/videos/lieutenant-colonel-enrique-oti

33.
Any Questions?
THANK YOU!

34.
Next Steps
Want to learn more about
what you heard today
Contact Us at info@pivotal.io
Want to validate a
innovation product you are
building
Come set up an appointment at one
of our 20 Labs offices worldwide for
Product Office Hours
General Reading
Recommendations
See next page

35.
Recommended Reading
● Lean Startup and Startup Way (Eric Ries)
● Extreme Programming (Kent Beck)
● Accelerate (Jez Humble, Nicole Forsgren, Gene Kim)
● Don’t Make Me Think (Steve Krug)

36.
Transforming how the world builds software
© Copyright 2019 Pivotal Software, Inc. All rights Reserved.