From project to product mindset and onwards to product platform architectures

Partner um S23M
23. Jul 2018

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From project to product mindset and onwards to product platform architectures

  1. Auckland From project to product mindset and onwards to product platform architectures
  2. Who we are? 2270+ members 34 Meetups so far Started in Feb 2015
  3. Closing time H&S / Obligatory Instructions In case of fire Live streaming Toilets Questions
  4. Announcements Micro meetups Venues ProductTank NZ Slack workspace Jobs channel
  5. Introduction Jorn Bettin Partner – S23M
  6. Collaboration for Life From project to product mindset
 and onwards to product platform architectures Jorn Bettin ProductTank Auckland Meetup, July 2018
  7. Collaboration for Life product limited knowledge many unknowns batch size : 1
 volume : 1 this is not a product this is a project
  8. Collaboration for Life Is it possible to stay innovative and economically manage many hundreds or even thousands of products or product variants? simple product simple configuration batch size : > 1,000
 volume : > 10,000 product
  9. Collaboration for Life very complex product simple configuration batch size : 1
 volume : > 10,000 product line
  10. Collaboration for Life very complex product complex configuration batch size : 5 … 100 volume : > 500 product line
  11. Collaboration for Life complex product complex configuration batch size : 1 … 10
 volume : 100 the boundary case between project and product
  12. Collaboration for Life complicated product complicated configuration batch size : 1
 volume : > 10,000 ERP this smells more like a project than a product
  13. Collaboration for Life complex product complex configuration batch size : 1
 volume : > 10,000 ERP this would be a product line Configuration
  14. Collaboration for Life Problems with the IT mindset 1) Purpose. In an IT mindset organization, the staff exists to service the perceived technology needs of “the business.” 
 In a technology-enabled product organization, the staff exists to service the needs of your customers, within the constraints of the business. This is a profound and far- reaching difference. Most of what is below stems from this difference. 2) Passion. In an IT mindset organization, product and tech are mercenaries. There is little to no product passion. They are there to build whatever. 
 In a product organization, product and tech are missionaries. They have joined the organization because they care about the mission and helping customers solve real problems. 3) Requirements. In an IT mindset organization, requirements are “gathered” from stakeholders, prioritized in the form of roadmaps, and implemented. 
 In a product organization, we must discover the necessary product to be built. Moreover, we know that most ideas will not work with customers the way we might hope, and we also know that those that do work will require several iterations to achieve the necessary business results. IT mindset methods are simply too slow, too expensive and generate far too much waste. …
  15. Collaboration for Life Problems with the project management mindset I am so concerned if a company makes an explicit choice to move to something like SAFe. This is a very clear and loud statement about culture to the company. It tells me the company does not understand or appreciate the role of engineers or designers in innovation. It tells me they are all about top- down control. Most importantly, it tells me the leaders don’t understand what they need to do to compete against the likes of Amazon. Amazon and Google both also provide services to businesses, some of which are in regulated industries, so this introduces constraints on them too. Now each of these companies has their own favorite techniques, and each has a different company culture, but all three have built their businesses on the concept of hiring skilled people – especially engineers, designers and product managers – and then empowering them to solve hard problems. That is why I can’t conceive of any of these companies ever moving to a process anywhere even close to SAFe. Maybe more importantly, they are an existence proof that you don’t need to.
  16. Collaboration for Life From project to product mindset The steps towards a product mindset: 1. Realisation that there is potential demand from 3 or more customers for a given solution 2. Confirmation of the opportunity to generate significant profit by reusing prior work 3. Any variabilities are initially approached pragmatically, via copy, paste, and adaptation where needed 4. Adaptations quickly lead to variant / version hell 5. Variant / version hell is successfully addressed via configuration files and tools operated by the product development team 6. If there is demand, the solution can now be sold to thousands of customers with minimal adaptation effort
  17. Collaboration for Life Guess which product requires an “implementation project”
  18. Collaboration for Life From product to product line mindset The steps towards a product line mindset: 1. Implementation projects (= product configuration) become a bottleneck due to (b) complexity and (b) often a limited number of people with critical configuration domain knowledge 2. Product demand outstrips the ability to implement on time 3. Product configuration costs become a pain point for customers 4. Inadequate product configurability leads to a demand for customisation 5. Customisations quickly leads to variant / version hell 6. Variant / version hell is successfully addressed via model oriented commonality and variability analysis and the development of configuration tools that can be operated by customers 7. If there is demand, the product can now be sold to customers with minimal need for “implementation projects”
  19. Collaboration for Life … is the method of effectively pre-tailoring the product to the idiosyncrasies of every user … postpones the task of differentiating a product 
 until the latest possible point in the supply network … is about achieving a tremendous increase in variety and customisation without a corresponding increase in costs Mass customisation
  20. Collaboration for Life Mass customisation
  21. Collaboration for Life Model Oriented Domain Analysis & Engineering … offers a systematic approach for conducting commonality and variability analysis across the needs of all customers and potential prospects, and for sourcing and surfacing the domain knowledge needed to hide all implementation details from the users of configuration tools, so that most of these tools can be operated by customers … is the method of effectively minimising the complexity of configuration 
 by pre-tailoring the product to the idiosyncrasies of every category of user … hands the task of differentiating a product 
 for a specific category of user to power users of that category
  22. Collaboration for Life Product line management and engineering
  23. Collaboration for Life Model Oriented Domain Analysis & Engineering
  24. Collaboration for Life Product line work streams & feedback loops Design Principles and thinking tools Platform Engineering, domain specific reuse and simplification Product Engineering, configuration, customisation, testing Product Line Operations, monitoring, incident management Experimentation, problem resolution, ideation w ork stream s & feedbacks feedbacks
  25. Collaboration for Life Product line artefacts product/service designs results of product/service usage product/service platform (engineering tools and methods) thinking tools and design principles knowledge
  26. Collaboration for Life Frequency of events & product line team structures weekly / monthly events and feedbacks daily events and operational decision making monthly / quarterly events and feedbacks stable / timeless design principles and thinking tools weekly / monthly events and feedbacks stream team s
  27. Collaboration for Life Product line value creation maximisation of automation (3 to 100 times faster) maximisation of automation (fewer errors) knowledge distillation & systematic reuse application of thinking tools and design principles exploration of new domains (broader customer base)
  28. Collaboration for Life Product line implications shifts towards configuration by power users shifts towards monitoring focus on architecture and better configuration tools focus on teaching thinking tools and design principles availability of spare time for experimentation
  29. Collaboration for Life Product line engineering with MODA + MODE
  30. Collaboration for Life Context : Exponential change in communication - 1,800,000 years: Cumulative cultural transmission, teaching, imitation, experimentation - 200,000 years : Spoken human languages — local communication of tacit knowledge - 5,400 years : Written human languages — communication across time, explicit knowledge - 600 years : Printing press — 1-to-many communication across space, scale - 180 years : Electrical telegraph & telephone — global peer-to-peer communication, on demand - 15 years : Internet — global 1-to-many communication, zero marginal cost, dirt cheap - Now : Internet of things – machine-to-machine communication, new technologies every month
 apps time
  31. Collaboration for Life Tapping into the visual processing capacity 
 of the human brain The brain’s capacity for processing visual data is around 20 times higher than the brain’s capacity for processing audio data. Even with simple technologies such as whiteboards and markers it is possible to design and use highly expressive and unambiguous visual languages that are much easier for humans to parse and understand than information in a linear format (audio or text). MODA+MODE therefore makes extensive use of visual languages and provides guidance for developing further domain specific visual languages.
  32. Collaboration for Life Viewpoints and perspectives
  33. Collaboration for Life Human scale visual language design can be understood as the elaboration of the role of cognitive characteristics of humans within ergonomics. Systems, models and technologies are only understandable as long as they do not generate cognitive loads that exceed human cognitive limits. Developing visual languages and interaction styles 
 that are better than English or any other linear language
  34. Collaboration for Life Naive product specification focus on user experience and interactions between users and the product collaboration product user
  35. Collaboration for Life The objective of designing 
 human scale visual languages and interaction styles … is to improve filtering, collaboration, thinking, and learning: 1. between humans, 2. between humans and software systems, 3. and between software systems. collaboration collaboration collaboration collaboration
  36. Collaboration for Life Categories of languages and interaction styles filtering, collaboration, thinking, learning collaboration collaboration filtering, collaboration, thinking, learning 1. verbal, non-verbal, tool-mediated (textual, mathematical, diagrammatic, artistic, etc.) 2. speech2text, text2speech, textual, mathematical, diagrammatic, artistic, etc. 3. textual protocols
  37. Collaboration for Life Language and interaction system design activities filtering, collaboration, thinking, learning collaboration collaboration filtering, collaboration, thinking, learning 1. Culture design 2. User experience design 3. Interoperability standard design
  38. Collaboration for Life Creating a learning organisation / system
  39. Collaboration for Life Creating a learning organisation with MODA + MODE formalising agent and perspective- based modular models connecting formal models between agents updating of individual mental models and related examples interactive sharing of knowledge MODA + MODE extends the concepts of continuous improvement and the SECI cycle into the realm of digital business and data intensive supply chains
  40. Collaboration for Life 6 Questions Investigating decision making processes: 1. Identification of relevant agents: Who? 2. Identification of agent motivations: Why? 3. Identification of relevant events: When and how often? 4. Identification of relevant valuable resource flows: What? and Where? 5. Identification of limits of understanding: What do we (not) know? 6. Identification of heuristics: How? => obligations => value chain => logistics => value creation => risks, opportunities => principles, system specifications to surface and validate tacit knowledge about socio-technological systems
  41. Collaboration for Life play, learn, observe, question, imagine a language for describing value creation a language for describing
 motivations a language for describing interactions The human lens to make sense of the world and the natural environment from a human perspective,
 to evolve our value systems, and to structure and optimise human activities system lens semantic lens logistic lens
  42. Collaboration for Life design / engineering transportation / communication quality / maintenance energy / food
 production culture value creation human artefactshuman symbols critical self-reflection nature human societies motivations resourcesevents agents interactions The human lens defines
 categories that are invariant across cultures, space, and time learn play observe question imagine system lens semantic lens logistic lens
  43. Collaboration for Life Joe wants to buy a blue car Your Organisation/Service Example of domain analysis Explanatory video: agent event resource motivation fast and convenient 
 personal transport
  44. Collaboration for Life Understanding events : business as usual Joe wants to buy a blue car Your Organisation/Service
  45. Collaboration for Life Understanding events : changes in context increased demand defective tyres received from supplier Your Organisation/Service supply chain management t demand
  46. Collaboration for Life Your Organisation/Service product line engineering supply chain management sales application engineering customer supplier Visualising the domain supply chain
  47. Collaboration for Life REA commonality and variability analysis events operational fruit ready to harvest fruit ready to ship fruit arrival in market fruit in retail store order received customer payment received grower payment made invoice issued strategic new grower new retailer new regulator new logistic service new market external disease currency crash oil price shock significant change in demand agents Zespri Z EU Z Japan Z Korea Z China Z US retailersregulators consumers logistics services packhouses growerscoolstores resources offices trusted relationshipsquality assurance systems orchards tacit knowledge logistics automation systems information assetsmoney Kiwifruit business intelligence systems
  48. Collaboration for Life Organisational learning over time product line product project platform & experimental 
 advanced power tools prototype & product 
 rough power tools 3 customers product support
 life cycle management product line operations
 product family management solution
 off-the-shelf tools solution delivery
 project management Mindset Design focus Management focus cost & time
 bottlenecks opportunistic
 reuse strategic
 reuse fewer
 unknowns known
 variabilities Depthofknowledge
  49. Collaboration for Life Agile : 
 unknown variability, tech experiments platform engineering customer needs knowledge product platform products feedback feedback experimentation product engineering customer needs ideas technologies Lean : 
 known variability, statistical 
 quality control product line operations Business Agility : 
 changing context, business experiments
  50. Collaboration for Life Organisational design patterns
  51. Collaboration for Life The organisational pattern for digital service delivery
  52. Collaboration for Life Business architectures for the digital service economy Mapping a business operating model onto an enterprise and domain architecture
  53. Collaboration for Life Business architectures for the digital service economy Business architecture is the non-IT part of enterprise and domain architecture
  54. Collaboration for Life Business architectures for the digital service economy Rule of thumb: buy Enterprise Architecture and build Domain Architecture
  55. Collaboration for Life Thinking tools
  56. Collaboration for Life MODA + MODE backbone principles for 
 creating learning organisations and understandable systems 26 principles that provide 
 a meta paradigm to avoid 
 getting entrapped in a paradigm MODA + MODE thinking tools for interdisciplinary research, design, and engineering:
  57. Collaboration for Life Techniques and tools for context specific methodology construction, sourced from a range of domains Source domains (sciences) • Scientific method • Theory of knowledge • Cognitive science • Creativity, neurodiversity movement • Disability studies • Critical psychology • Sociology • Social psychology • Organisational psychology • Evolutionary biology • Cell biology • Medicine Source domains (engineering) • Probabilistic reasoning • Product line engineering • Domain engineering • Model driven engineering • Domain specific modelling • Continuous improvement • Kaizen • Agile software development • Management • Risk management Mathematical foundations • Category theory • Model theory • Denotational semantics • Multi-state logics
  58. Collaboration for Life The 26 backbone principles 1. Understand that minorities and outsiders are well positioned for uncovering attempts of deception 2. Give minorities and outsiders access to private means of communication 3. Operate transparent governance 4. Adapt the cognitive load generated by technology to human cognitive limits 5. Recognise neurological differences as authentic and valuable sources of innovative potential 6. Value metrics from the physical and biological world more than human opinions 7. Value local perspectives more than widely-held popular beliefs 8. Value the strength of shared beliefs and corresponding evidence more than the number of shared beliefs 9. Use 4-state information quality logic to minimise ambiguity 10.Use probabilistic reasoning to acknowledge uncertainty 11.Conduct commonality and variability analysis 12.Formalise the results of commonality and variability analysis 13.Develop visual domain specific languages to describe familiar domains in unambiguous terms 14.Understand that all information is dependent on perspective and viewpoint 15.Understand that a multitude of perspectives generates new insights 16.Validate shared understanding by sharing of models and corresponding instances 17.Understand that power gradients stand in the way of transformation 18.Aim for optimal conflict in a supportive and trusting team environment 19.Use agile experiments when venturing into unfamiliar domains to learn from mistakes 20.Conduct an adequate number of experiments in different contexts to minimise risk before global application of major changes 21.Understand that collaboration occurs to the extent that there is shared understanding 22.Recognise paradoxes and disagreements as the essence of continuous improvement 23.Practice everyday improvement, everybody improvement, everywhere improvement 24.Engage in niche construction 25.Use feedback loops to create learning systems 26.Use modular decentralised design to promote reuse without compromising resilience
  59. Collaboration for Life A specific culture may have further bones, but one or more
 missing vertebrae lead to an organisational learning disability Our experience
  60. Collaboration for Life Creativity
  61. Collaboration for Life © 2016 S23M Conceptual blending is at the core of creativity Diverse knowledge is necessary to solve various problems in the world and to create value in the future, and overcome challenges that go beyond the framework of research in industry, government and academia. 
 [from the mission of the Honda Research Institute]
  62. Collaboration for Life Creativity = Having a “less well functioning mental bureaucrat” Neurodivergent people: • Adhere to idiosyncratic moral value systems rather than social norms • Are okay with exploring ideas that upset the “social order” • Spend much more time experimenting and implementing ideas that others would consider crazy or a waste of time • Have untypical life goals: new forms of understanding, making a positive impact, translating ideas into artistic expression Autists in particular tend to: • Easily suffer from sensory and social overload • Have unusually developed pattern recognition abilities • Have an unusual ability to persevere Deep innovation: • autistic perseverance autistic hypersensitivity autistic pattern recognition neurodivergent creativity autistic authenticity individual autistic rituals invention innovation neurological traits derived/aggregate behaviours
  63. Collaboration for Life The Two Traits of the Best Problem-Solving Teams: Cognitive Diversity and Psychological Safety HBR autistic
 collaboration absence of neurodiversity
  64. Collaboration for Life play, learn, observe, question, imagine Scientists, Engineers, Entrepreneurs, Artists & Mathematicians CIIC brings together academic researchers and practitioners every 3 months 
 to tackle wicked problems that don’t have an obvious solution. Challenges that Go Beyond the Established Framework of Research in Industry, Government and Academia Conference on Interdisciplinary Innovation and Collaboration
  65. Collaboration for Life Conference on Interdisciplinary Innovation and Collaboration CIIC workshop results ( • June 2018 – Human, non-human and ecosystem health • March 2018 – Topics at the intersection of agriculture and healthcare • December 2017 – Design of interaction patterns for knowledge validation and trust building • September 2017 – Interaction and collaboration of humans and intelligent machines • June 2017 – Human scale computing • March 2017 – Neurodiversity • December 2016 – Making information interactive • September 2016 – The potential and limits of clinical decision support systems • March 2016 – Design and development of tools for effective self-care • December 2015 – Is there a place for barter? • September 2015 – How do we need to redefine economic progress? What is value? • June 2015 – Growing New Zealand’s contribution to a sustainable world
  66. Collaboration for Life • Allows knowledge to flourish in the open creative spaces between disciplines and organisational silos • Complements the typical yearly cycle of domain-specific conferences • Has a quarterly cycle and feedback loop between teams that supports 
 on-going and longer-term collaborations more effectively than yearly events • Captures knowledge flows and transdisciplinary insights in reusable semantic models and patterns • Currently runs in Auckland at AUT and in Melbourne at RMIT, 
 and the CIIC community is available to assist with replicating the concept in other locations • Can help coordinate collaboration between locations via the CIIC Web site and related online tools • Invites further co-sponsors from industry, academia, and government • Is an antidote to bureaucratic limitations; large organisation are now inquiring about establishing regular in-house CIIC style events • Provides a safe environment for neurodivergent / autistic people to connect and collaborate CIIC invites communities and economic ecosystems 
 to sharpen their collaborative edge by embracing open innovation. Conference on Interdisciplinary Innovation and Collaboration
  67. Collaboration for Life AUT – Auckland University of Technology MODA + MODE is being integrated into the 
 curriculum on entrepreneurial strategies, creative technologies, 
 and methodologies for trans-disciplinary research and collaboration
  68. Collaboration for Life Book on Domain Engineering Domain Engineering is of considerable practical significance, as it provides methods and techniques that help reduce time-to-market, development costs, and project risks on one hand, and helps improve system quality and performance on a consistent basis on the other. • The most comprehensive and up-to-date work on domain engineering • Covers all important technological aspects, including software product lines, domain-specific languages, and conceptual modeling • Introduces novel approaches and techniques, and includes a wealth of pointers for further research • ISBN 978-3-642-36653-6, published 2013
  69. Collaboration for Life Case studies
  70. Collaboration for Life The MODA + MODE approach has a fractal characteristic that enables it to operate at all levels of scale, with explicit support for feedback loops between different levels of scale: • Development of collaboration platforms that improve the resilience and performance of economic ecosystems. • Development of technology platforms that harness deep domain expertise to streamline the development of new products. • Improvements in quality, reliability, and productivity of specific teams or technological systems. • Integrating the knowledge of multiple domain experts in a cross- disciplinary context to co-create innovative solution designs. • Translating tacit knowledge into explicit knowledge that does not decay over time. Typical use cases in industry, academia, and government
  71. Collaboration for Life Case Studies - New product and platform development Company Main Context Description Results From prototype to product
 Agile product development New methodology and knowledge transfer into an ongoing project. Introduction of best practices for agile software development The professionalism and skills that S23M brought were exceptional, top rate. I was surprised at how well the teams engaged with you guys. Core team now proficient in the use of new techniques Product line management & engineering Legacy software re-engineering relating to product definition and premium calculation Simplification of artefacts & workflows Product specification artefacts are 
 20 times smaller New premium calculation engine runs 
 100 times faster Product line engineering Simplification of application development on a new technology platform Automation and improvement of quality assurance Domain experts with no software engineering background are able to develop complete applications 4-fold productivity increase
  72. Collaboration for Life Case Studies - Collaboration and interoperability Company Main Context Description Results Product line engineering Visual design tools for 
 postal automation systems Modular visual language specifications for mail piece coding strategies 2 to 3-fold productivity improvement Medium & long-term quality gains Statistical report specifications now 
 6 times smaller Supply chain optimisation and risk management Development of a QA and test management framework for 
 supply chain optimisation Risk management of SAP Cloud migration The framework was fundamental for the success of the projects. The risk profile was managed very effectively with the methodology from S23M ERP optimisation Simplification of application development on a new technology platform Automation and improvement of quality assurance Real-Time inventory system, error rates in warehouse management are close to zero 
 7 people maintain web applications across 170 locations & 23 languages 
 (1,500 database tables)
  73. Collaboration for Life Case Studies - Industry standard design & development Company Main Context Description Results Health informatics industry standard development Improving speed and accuracy of a requirements to health informatics standard and reference software implementation publication process Many critical flaws in open source tooling were corrected and contributed back to the international health informatics standards community. S23M was able to reveal the power of automatically generated traces between models using formal model transformations, merged with human- documented correspondences. State Government Design Agency, National Construction Specification Agency, Universities and Cooperative Research Centres, Australia Developing a national BIM building product library Replacement of generic design objects in Computer Aided Design and Manufacturing (CAD/CAM) software with actual properties and 3D geometry of building products A viable standards-based BIM building product library awaiting deployment investment, licensed for public-good purposes. 
 The solution is currently used as an academic and professional teaching tool for the construction industry.
  74. Collaboration for Life Thank you! Jorn Bettin Nothing beats capturing the knowledge flow of leading domain experts to co-create organisations & systems that are understandable by future generations of humans & software tools.
  75. Collaboration for Life Appendix
  76. Collaboration for Life Thinking in systems, designs, patterns the team the tools We distil knowledge and enable knowledge to flow to all the places where it can be put to good use for the world
  77. Collaboration for Life • from an exploratory start-up culture to mature new product development, product management, sales, and product support • when to tweak and adapt specific practices • when to replace specific practices and habits • when to introduce product platform development as a work stream • from a simple product development mindset 
 to a product line engineering culture • when to outsource or insource non-core activities • when to grow by acquisition • when to cannibalise, divest, or sun-set specific product lines Advising clients on when to shift gears
  78. Collaboration for Life We work with the tacit knowledge within your team to achieve severalfold improvements in terms of better quality, lower costs and productivity benefits by • managing the risks of business transformation, • transforming information into valuable domain knowledge, • addressing sustainability and compliance requirements, • making product lines configurable and customisable, • developing new products and markets, • optimising supply chains. Reducing complexity and catalysing cultural transformation
  79. Collaboration for Life We create enterprise grade SaaS solutions without proprietary lock-in • Collaboration, trustworthiness and reliability are amongst the biggest challenges in a digitally networked world • Transparency, including open science, open data, and open source software are emerging as essential tools Addressing software needs beyond standard solutions
  80. Q & A
  81. Thank you
  82. @pmauckland