We’re in the Second Machine Age, demand for software is rocketing. Large enterprises and governments are adopting cloud, open source, SaaS platforms and bespoke agile apps. They’re trying to re-engineer processes, transform service quality and costs. There has never been a better time to grow a software business and sell to large organisations. Companies in all industries want a ‘digital transformation’ but also have to overcome the internal barriers within their own organisations to change. Stephen, draws on his experiences working with the UK’s Government Digital Service to share lessons learnt in attempting to transform one of the largest, most IT intensive behemoths into an organisation that is, ‘Digital by Default’ How can you profit from this shift? www.businessofsoftware.org

1. Digital transformation – how to succeed
Stephen Allott
Chairman, {Pebble Code}
16 May 2016

2. Forecast
Trinity College, Cambridge
Xerox
Sun Microsystems
(1st lawyer hired outside the US)
McKinsey strategy
Tech and corporate finance
Micromuse President, CFO and
main board director.
NASDAQ: MUSE
Cambridge Computer Lab
Trinamo
UK Crown Rep SME
10 chairman roles

3. Micromuse turnover
1
142
83
39
19
63
1995 1996 1997 1998 1999 2000 2001
(£M)

4. OEM STRATEGY
1. Dell big: what’s the growth plan and rep deployment?
2. Huawei growth plan and location of manager?
3. Decide on plans for Lenovo, Intel and Cray
MONT VENTOUX

5. Forecast
Topics today
1. Digital transformation: how to succeed
2. How to sell to Government
3. A surprising thing I found out

6. “Market cap of
$5.1 billion”

7. Forecast
Gov Digital

8. Forecast
Choosing the right pilots
- How many?
- What types?
- How to manage?

9. 25 GDS exemplar projects

10. Forecast
Division
Goals
Product
Goals
Organisation
Goals
Functional
Goals
Digital Exemplar
Best Practice
Right approach
Thing right
Right thing
How to succeed

11. Forecast
- Secure top down commitment
- Insource management and
development
- Establish agile governance (business
case, service & product management)
How to succeed
Division
Goals
Product
Goals
Organisation
Goals
Functional
Goals
Digital Exemplar
Best Practice
Right approach
Thing right
Right thing

12. Tools for Thing Right
- Know and fill key roles
- Assess capability honestly
- Use employees in key
roles/suppliers as skill
building/backup
- Follow agile best practice
with close involvement
- Replace non-performers
Rightthing:userledMVPservicemgmt
Thing right: “actually not contractually”
Build the right
thing well
Tools for Right Thing
- Hack days
- User research
- User lab testing (e.g. at
GDS)
- Minimum Viable Product
- A / B testing
- Beta testing
- Tight link to helpdesk to
react to feedback real
time
Build the right
thing
- Badly
- Slowly
- Expensively
Build the wrong
thing well
Fail
Epic fail
Right thing is the key

13. Forecast
- Secure top down commitment
- Insource management and
development
- Establish agile governance (business
case, service & product management)
How to succeed
Division
Goals
Product
Goals
Organisation
Goals
Functional
Goals
Digital Exemplar
Best Practice
Right approach
Thing right
Right thing
- Start with user led design
- Develop Minimum Viable Product
- “Right size” the components, sourcing
from suppliers, COTS and open
source

14. Forecast
- Secure top down commitment
- Insource management and
development
- Establish agile governance (business
case, service & product management)
How to succeed
Division
Goals
Product
Goals
Organisation
Goals
Functional
Goals
Digital Exemplar
Best Practice
Right approach
Thing right
Right thing
- Start with user led design
- Develop Minimum Viable Product
- “Right size” the components, sourcing
from suppliers, COTS and open
source
- Install requisite capability across all
roles
- Use best practice lean start up and
agile software development
approaches
- View as a product not a project; it’s
forever

15. Roles you will need
Programme and project manager
Portfolio manager
Service manager
Business analyst
Product manager
Delivery manager
Technical architect
Product / business analyst / data scientist
User researcher
Interaction designer
Front end developer
Back end developer
Quality assurance / tester
Agile coach
Hosting platform developer
Web operations
[Security expert]
Infrastructure architect
Business representatives, users and subject
matter experts
Portfolio, product and service
management
Agile product team
Web operations
Business representatives

16. Forecast
Topics today
1. Digital transformation: how
to succeed
2. How to sell to Government
3. A surprising thing I found
out

17. Forecast
UK public sector
1.6
1.7
2.0
3.2
4.1
5.1
Hardware
Software
Services
Staff
Comms
IT outsourcing
2014/15, £b
Source: Kable

18. Forecast
Central
Government
Departments

19. Forecast
Title
STEP GENERAL G-CLOUD OJEU FRAMEWORK
Get in the
conversation
Inform prospects
Don’t “sell”
Use seminars
Drive referrals from base
Research current
buyers using Gov
Spend
Research
competitors’
offerings on the
Digital Marketplace
Monitor
Contracts
Finder
Monitor Contracts
Finder
Get on the
frameworks
Engage and
shape the
specifications
Pre-market engagement is
now clear policy and best
practice
Give references
Respond to
inquiries
Respond to
PINS
Engage pre-
market
Engage pre-market
Bid and win Get expert help
Answer the question
Give an example
Give proof
Use Mystery Shopper
Good Documents
Face to face
Interviews
Use
clarifying
questions
Do great bids
Use clarifying
questions
Do great bids
Deliver a great
result and
service
Good work wins more
work
First timers take extra
care
Wins are public Wins are
public

20. Forecast
Use G-Cloud
£m
18.3
141.3
399.6
FY 12/13 FY 13/14 FY 14/15

21. Forecast
Topics today
1. Digital transformation: how
to succeed
2. How to sell to Government
3. A surprising thing I found
out

22. Forecast
Title
“Aggregation
and
Centralisation”
= conventional
wisdom

23. Forecast
Feb 2011
“Today, we are announcing big
changes to the way government
does business.”
“.... wherever possible, we’re
going to break up large
contracts into smaller elements,
so that SMEs can make a bid
and get involved”
https://www.gov.uk/government/
speeches/pms-speech-at-the-
strategic-supplier-summit

24. Forecast
The mistake:
Aggregation by
default is wrong

25. Forecast
Peter Kraljic
published HBR
article in 1983
http://bit.ly/Kraljic

26. Forecast
Kraljic is for fixed
spec production
parts…
Not tooling

27. Buy the Thing Right: getting a deal Forecast
Innovation impact
BuytheRightThing:latesttools
Yes
No
YesNo

28. Buy the Thing Right: getting a deal Forecast
BuytheRightThing:latesttools
Yes
No
YesNo
Bigger lever?

29. Buy the Thing Right: getting a deal
BuytheRightThing:latesttools
Yes
No
YesNo
Bigger lever?

30. Buy the Thing Right: getting a deal
BuytheRightThing:latesttools
Yes
No
YesNo
Tools or Parts?

31. Forecast
What else do you
need ….?
A top developer can be
10x more productive
than a mediocre one.1

32. OEM STRATEGY
1. Dell big: what’s the growth plan and rep deployment?
2. Huawei growth plan and location of manager?
3. Decide on plans for Lenovo, Intel and Cray
MONT VENTOUX