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Courtesy of Red Hat's Joshua Gossett, below is a transcript of his speaking session on 'Accelerating Value Creation: Maximizing Hybrid Cloud Outcomes Through Platforms' to Build a Thriving Enterprise that took place at BTOES Enterprise Architecture Live Virtual Conference.
Accelerating Value Creation: Maximizing Hybrid Cloud Outcomes Through Platforms
Organizations across the spectrum have looked to leverage both public and private clouds to accelerate value creation either through cost optimization and or reducing time to address market conditions.
The actual results of these efforts have mostly produced mixed and or negative company and organizational outcomes. In this session we will discuss root causes and lessons learned from these efforts.
Also, we will share examples of strategies and tactics that have been utilized by our clients that have proven to create positive IT and balance sheet outcomes.
Our next guest is Joshua. Joshua is the chief transformation strategies for Red Hat. He has spent over 15 years in various enterprise in principle level, architecture roles. He's focused on ensuring enterprise architecture decisions positively impact the corporate balance sheet. So he has tremendous experience across many different industries and business models and the implementation of effective enterprise architecture for value creation. Joshua, real pleasure to have you with us today. Go ahead and share your presentation at this point, and I'll let you carry from here.
Sorry about that transition. They're appreciated Josie, thank you. So my name is Joshua Gosset, it's really a pleasure to be here with you and it's really an honor, it's very humbling to be with a large group of peers and colleagues. So today my to my presentation is really focused on the value side and the value creation.
And so, you know, after several years in architecture, you know, there's been, know, a lot of technology decisions that are made that, you know, had great at that, were great ideas and very sound. But how does that really relate to your value creation and really driving a corporate balance sheet and outcomes? And that's really what I focus on today. Specifically, I'm going to be talking about, you know, regardless of the architectural decisions that are made, it's really a common paradox that we're trying to attack. And I describe that and start to talk about, Elaborate on that. one of the keys patterns that exist currently, and have evolved over several years, is really this concept of platforms. So, I'm going to go into that a little bit, and then, really, I'm gonna go, and show, actually, some of the results that have come from some of our clients. Some of the partners that we worked with. And when we develop and do these appropriately. and show some of the results. So, I think it's imperative to say, you know, what were the outcome of these decisions?
So, if we look at the, the world we live in today, there's no, there's no, definitely.
Doubt that there's several different cloud and multiple options out there. I think that this is just the realities of the world we live in. And before, when you had several different types of systems and deployment types, you know, you have a situation where, you know, you just drive additional sets of complexity. So, I think this is, you know, this is relevant to the world we live in today.
As you start to look at that, though, you know, the goals, regardless of what your legacy of state looks like, your current estate or your mixed environment between public private clouds, the goal, some simply remained the same. Over time. You're trying to really support a, you know, an operating environment that then can support sets of applications. You have different tooling on both sides, from an operational support perspective. You have no developer tools on the other side. This place in the middle where they made is really, fundamentally, we're enterprise architecture comes to play. It's critical that we make decisions in this area that allow these two types of paradigms to exist between each other.
No, fundamentally though, even as you look at, you know, as systems in, in, continue to evolve and continue to modernize, the same paradox, it is in play. And so when I fundamentally understand this paradox is you have two different types of dynamics going on in any enterprise in the IT side and in the business.
So on one side, you have a driver that says, you know, you must increase the variety, you must increased and scale to customer needs, you must, you know, that the differentiation is what drives value. So what does that really mean? It means you have high levels of variability.
So this, you know, this is on one side of the Enterprise environment. And then you also, know, this is really where you drive these revenue type activities.
And so there's one side of the coin that's driving that and then there's this other side of the coin where a lot of people live and work in, which is more about scale and optimization, right? So this is really set. You know, this is where hey, we're trying to consolidate, we're trying to centralize we're trying to get economies of scale, but really what we're trying to do is we're trying to drive operating margin reductions.
We're trying to get better asset efficiency.
We're trying to do these things that affect the balance sheet really heavily around like reducing cost. And so, and that makes sense in an environment. But it's directly in the it's the polar opposite of creating variety. It's decreasing variety to get scale.
And so you have these two different, different buckets. You've got business and develop and on one side, and infrastructure, and operations on the other. And they're on this teeter totter, if you will. And this is where the enterprise architecture, you know, comes right in the middle.
How do you create effective processes and systems that allow you to manage this teeter totter where both of these things can be satisfied simultaneously?
So this is where the real value creation in an enterprise architecture can sit and where we see great value creation happening.
And so let's talk about this in more detail.
If we really look at this middle, as we have, you have to redefine what this middle is.
And so when we talk about no one side, it has high levels of variation in differentiation, and the other side that has no economies of scale and infrastructure, you have this thing that happens in the mental. And we'd like to talk about these in a concept of the different economies that exist. And so you have, on one side, a kind of a scale economy that this variation economy.
On the right side, you have this, this is the scale economy, which is really built on optimization. But then you have this thing in the middle, which is really what we're defining as the scope economy.
So the scope of economy is really where you see the emergence of things that we would call today platforms. There's platforms is a term that's used in several different constructs. But from the purest sense here, we look at this platform as a way to create a set of common interfaces.
And so what does that do? Right, so it's really about, how do we craft?
Well factored functions. How do we craft and accelerate adoption?
How do we create a, you know, economies that are allowed, that create value without destroying things?
How do we create increased variability on one side, but then also, no decrease duplication, and then hop, how do we how do we actually create this as if you say, like a clutch to obey a goal and allow it to have high variation on one side and then hike standardization on the other and those two coexist.
And so the interesting things about the scope economies, and where these platforms, play, in the center, is really, these are things that oftentimes, you know, when you use them, they're not destroyed, they actually increase value. And so that's the interesting part about looking at, and being able to apply patterns and capabilities that actually become more valuable as they are used.
So, this is where, you know, platforms, no play, in the scope economy, and trying to understand, how does enterprise architecture sit in in this and create an appropriate pipeline And appropriate roadmap that sees these differentiated being created, but then can create common patterns that can be re-used. Instead of having to have the different value creation team or the differentiating, correct team, rebuild the same thing over and over. And then at the same time, being able to hand that over to the operations teams to harden and have them be able to bring those economies of scale and reliability.
So, tomorrow, to get more specifics about, know, these primitives and common patterns that we talk about.
This kind of narrow narrates it a little bit more specifically.
And so we talk about these scales on the, on the right side of the equation. They see your fundamental elements, right? So these are, like, you know, we often call these primitives, but it's, you know, your network storage compute database. These are often common patterns. You see these on, no matter what your infrastructure platform, these are just the fundamental building blocks. Oftentimes, I'll say that, especially in the cloud provider space, you have a lot of things that are patterns that are scope, like, so, you'll have, you know, native functions. You'll have all different kinds of capabilities and slash solution and, like, all different kinds of things, right?
That, that could allow you to utilize those things, but without bringing those in incorrectly, defining them, using enterprise architecture to correctly to find those and the scope, This is where you have very hard time, actually getting value out of those.
But, so, when you start to talk about, in the scope economy, the kind of cloud native patterns and primitives, you know, this is really talking about creating a platform as a set of interface interfaces.
And then being able to actually combine complexities.
And so, these are, these are things that often happen. You know, a great example here is data patterns. So if you look in situations where you have development teams, depending on where they are in your business, oftentimes, they use very common datasets.
And so those datasets, like as an example, like a customer record, the more times you can use the same customer record, the more valuable it becomes.
These are types of and these are things that can be put into the scope economies, have put into these, these platforms that allow developer, and the team's not to have to rebuild those every time they take on a new project.
So you create more value, but then they allow hardening of that on the scope side.
And so, data is a key portion of the types of patterns that we talk about and how you access that information in a common way, you know, The other thing that we talk about is how do we define, you know, a well factored function, right? So, a function, no such, you know, we can think about that as the construct of functions. But, the thing about, when you actually apply this in your enterprise, these functions have specific environmental context to your organization.
And I think that is what we'd like to talk to quite often, which is, yes, you have availability of these in a cloud, or in any types of platform. You know, what? We considered potentially platforms, all The clouds have these functions. The problem is those functions aren't constructed in a way that are designed to optimize them for your operating environment.
So, your operating environment requires enterprise architecture to step in and create a set of functions, or patterns, or whatever you want to call them, that allows them to be a standard for the organization, that fits the needs of the differentiation economy in your, in your environment. So oftentimes, what I see is this scope economies completely skipped.
Can they just open up all of the scale economy, so open up interfaces to your teams, and then all of a sudden, you have the worst problem, because you are constantly using things with even more variance.
And you just drive your costs completely out of, you know, off the edge, right? So then I'm sure that these are where we run into problems, like, you know, our cloud costs were exponentially higher orders of magnitude higher than we we budgeted because they didn't come in and shape these patterns appropriately to drive scale, but also accelerate variation.
And so these are, these are the types of activities that we talk about. It are so critical, and this is where we see the modern enterprise architecture residing in the scope economy. And understanding: what are the real fiscal outcomes that you're trying to drive on both sides of these? So keeping in mind that in the scope side, the scope economy is the one who's speaking two different languages.
They're the ones that are talking to infrastructure, and using that Cost optimization language, because that's what they're driving to operating margin.
And there are also you sitting in there the Rosetta Stone for the development side, which is saying, Hey, I'm bringing new capabilities that allow you to increase variation, debt, stability, with stability.
And so they are the ones that are now talking in the development language.
And so these are really critical to be able to act as that and act, as that middle ground, to create these and accelerate value in both sides, where we can go and create new products and go address new customers and deliver new services, but we can do it in a scalable manner that won't drive costs completely out of control.
So you're acting as that middle ground inside, You know, these are critical concepts.
So from my perspective, it's always really critical that you know, I talked about those, kinda what I consider like there can be very nebulous concepts, some more in practice.
I like to show examples of types of patterns, that we've encountered, that become highly effective.
And so this is an example of a microservices pattern that we've worked with before, but this is where Enterprise architecture so multiple architects were were brought in to develop this type of pattern.
So what this pattern does, this is a CI CD pattern.
For a building common microservices, it uses a CI CD pipeline to do it, but it's really creating a standardized way across the enterprise to build new software. So the important part here is it doesn't actually drive what software you do, but what it does do is it actually standardizes the way that they do source control. The way they do unit testing, some the some security controls. it also standardizes the way that they deliver APIs also standardizes the way they do logging tracing metrics.
These are all really critical to have in place when you build new services because when you try to troubleshoot these services, if they're not standardized, there's no way to find and trace that needle in a haystack.
And so this is an example of a microservices pattern design pattern that's used repetitively, no matter what thing you're trying to build. So this allows the development teams and the business, you know, trying to pick business value to go ahead and write code in any way they want.
But it allows the support team to be able to effectively support this.
When you have dozens or hundreds of microservices, they know how they can operationally manage it.
And so these create a nice bridge. This is what creates the common pattern to create and drive value out of the scope side.
This is a, this is something that I know a lot of companies do already, and this is just around more domain driven design concepts.
But really, what it's talking about is, no, this is a good example of a scope economy. In the sense of that, You're building out foundational domains, and then you're building out capabilities.
So, this is an example, more of a roadmap perspective, But, when I talk earlier about, how do you build effective projects, and then use those projects to create patterns across complex sets of domains, right?
So this is where core enterprise architecture can step in and create tremendous value by looking at across all of these different projects.
So let's say these are a project roadmap on the top, understanding all the different domains, those hitt, but then understanding how those projects provide capabilities for the other projects in your pipeline.
So if you start to look at this over time, what happens is the actual development and delivery time of each of these projects actually reduces because you've already built parts of those capabilities, and made those into patterns for the enterprise, and shared them.
So in each project, they don't have to go re rebuild these complexities.
So, I mean, this is, you know, this was built for more of an API construct.
But holistically, it works from a data pattern perspective. It works from an integration perspective. It works from just anywhere in your environment, where you're going to continue to build new services, new capabilities. But you need to also be able to control those costs. And you also need to be able to harden them to provide the operational capability to support them, and continue to create, produce an optimized, nice cost, accelerating variation of this. These types of roadmaps allow you to do that, and to provide value in a different way. And this is, this is what I see as Core.
Opera is a prime opportunity from Enterprise architecture perspective to go across domains and then be able to look at this more holistically from an enterprise level, and say, hey, we've we were able to extract what makes it our companies.
Then we're able to use that over and over again.
And then drive our value from our development teams, only building net new things versus rebuilding things we use all the time, that are core to just the way we operate, like, where we house data, or how we integrate into things or whatnot.
So I always like to, I showed a couple of patterns. I always also like to talk about what are the results, right? Because it's one thing to talk in a very nebulous way about the, the broader strategy. It's another thing to talk about examples of patterns. Now, it's like, what happens when the rubber meets the road.
How do you actually, what does this do inside of a organization? What does it look like fiscally? And so, I think that is, that is critical to making decisions. And understanding how the decisions you make affect, what happens.
And so, this is an example of this actual business case that this came from, was a client, that they have a on premise solution from a software perspective.
They are trying to scale into move their shift there. There's really an omni channel type construct here, but it's for a client facing software that was originally designed to legacy piece of software. It was originally designed for an on premise deployment. It was being modernized because they were trying to shift from on premise deployment to sass on various clouds.
And so they were refactoring their code base into the cloud. They had picked one of the cloud providers and wrote into Native functions and rewrote several pieces of their, their capability to into that. But what happened? Is there a global scale company? So every time that they were going into a cloud, they were having to, as an example, they wanted to enter into the Middle East. They wanted to enter into the Asia pacific market.
They were, they had, they needed different clouds to support those. And they needed certain sets of on premise deployments to manage and be able to be deployed a SaaS when they originally had like a fat client app.
And so, really, the use case here, from, if you boil it down simply, it was, How do we create a common way of doing things?
Dell allows us to accelerate entering new markets, then also help us shift customer demand, and then also help us capture customer data, and they, and create new value out of that. Because previously, because they, this particular application is fairly data, is data intensive. And so now moving to Sass allowed them to capture their customers' data and then actually create better models and algorithms that they could turn back around and offer a SaaS offerings. So this was the dynamics of this particular use case.
That if you looked at what we actually were able to deliver, you know, we talked about what their investment look like.
But it really talks about they were going to be able to scale and control their costs based on the the way that our customers are adopting their product.
And more importantly, they were they were going to say $6.5 million in operating costs for every time they tried to redevelop to another cloud.
So this particular customer, it was taking them a year Purecloud, actually go more than that. It was almost two years for cloud to fully rewrite their software in every different cloud.
And so they were paying outsourcers to do that. And so they were incurring a substantial cost every time they did that. And so what we were able to do is provide a common code structure for them, were able to provide something that was more modernized, and modular, and portable.
And that particular effort provided an opportunity for them to save $6.5 million every time they were trying to move into a new channel.
So they were in two channels At the time they were in A, we could deploy on premise. Or we were in Azure.
And so they were trying to move to, oh, we need to go to Ali. We need to be able to deploy into different on premise environments using a faff model. Every time they did that, the engineering effort was in excess of $10 million.
And so we were able to show them by moving to a common set of patterns.
In moving their software to a common set of patterns, it allowed them to enter those markets.
With a common code base, it dropped there, support their app support costs went down substantially, because now they didn't have the amount of variation across different clouds because they were using all those native services.
And then at the same time, they were able to get additional efficiencies inside of the instances themselves.
And so, the story goes that, from an operating margin perspective, we were able to save them about $124 million, and that was just five year cost savings, have just deploying and supporting the software that they were selling to clients.
On the other side of the coin, you had, really, the story here, though, was a revenue story for them. Because there was a large portion of the market that they couldn't reach.
And so from their perspective, what we're able to do, using a platform, effectively in creating effective patterns, we're able to show them how to enter markets.
What that meant to their business was $886 million, over five years dollars that they would not be able to capture. So this wasn't taken in this removed, this said, hey, you keep all your same customers, this is just your incremental upside.
And so this customer was about a, a 1.8 to $2 billion revenue business. So this type of revenue uptick for them. For incremental was huge.
And so, this is where, this is what effective patterns can do for an organization.
And so, we were actually able to radically affect their revenue, and we're actually able to optimize their operating costs. So, they were getting both on the balance sheet and operating margin reduction, as well as a revenue uptick.
More importantly, we opened up a new revenue stream for them, because now, they were able to do that fast capture of the data.
And so, that allowed them to do new sets of products to capture more customers, that they never would have been able to reach prior.
And so, this is what effectively can happen when you use these types of patterns.
So this is a little bit different. Look at that.
And so, one of the thing that I I call out on, this is, there's a certain function that we were talking to them about, which is the reducing time and capacity was really about some of these concepts of costumed delay.
And so, cost of delays is used, when we talk about, like, you know, opportunity costs lost, and some of the capabilities around, What are you paying your folks to do today? How many projects can deliver in a certain amount of time?
And if you use these platform concepts, and as they deploy these platform concepts, they were able to accelerate the a number of projects that they were able to do in a year, and that equated to a huge upside for them, because they were no longer losing revenue. They were no longer wasting time. So they were getting a net benefit from revenue perspective, as well as an operating margin benefit, because they were getting more effective use of development staff they had, and more effective use of their third party outsourcers that they were using. So, this was tremendous for their business.
And, so, the other thing that was really fun about this particular, the results of this project was that we were able to show that, this actually show the, like a 2.5, a 2.2 X potential upsell opportunity, versus what their current strategy was. So, we actually waited this out. It's like, look at your current enterprise, look at your current enterprise patterns, Look at the current where you develop software, Look at the current way you scale operations.
How do, if we come in and they put these patterns, what does that mean for, versus your current strategy if we go this different strategy?
And so, what we sit, we showed them as they were able to accelerate their soft mix. So they were able to transfer their customers and modernize their customer base. At the same time, they were able to capture all this upsell opportunity 2.5 times faster, or 2.2 X faster. And so this is just a view of where they were saving money in cloud infrastructure, and cloud adoption, and all these different areas.
But at the same time, you know, all of the revenue potential that they were, they were leaving on the table.
So what does what does that mean from a day-to-day? Like, what does effective patterns bring to the table? So this is, this is a snapshot from an application of elm and life cycle.
And so, this is where we see the types of shifts happen.
And so, when you build effective patterns and you have effective scope, and you you've done this effectively for enterprise architecture, this is where we start to see huge shifts. And, actually, the application percentage of time spent in different parts of the environment. So, this is particularly on the development side. We see, most importantly, an increase in the capabilities around, you know, focusing heavily on development time, and taking out a lot of will be sort of like overhead tasks. You know, if we shift time away from you know, project management, but put that into development. These are really important for you, because that's where you're building your variation. And, so, trying to optimize where you spend your, where these teams spend their time across the entire continuum.
And, that's really important.
And then, from the, the application support, ... time life cycle, this is the other side of it. So, this is the economies of scale. And so, what does that actually mean? After we put a piece of software in production and we use effective patterns?
You know, enterprise architecture was supporting the business appropriately.
Then we're able to see the the after results, this operating margin decrease.
And it's really about shifting lots of time out of support.
Because we were using these effective patterns that were hardened.
And so what happens is, because we were building things and using doing this effectively, they were able to greatly decrease their application support costs because they're able to shrink in several areas the percentage of time they, they, they focus on in these different kind of common areas. Right.
And so, like I said, this is the economies of scale story. So the first one was the variations increases. This is where we create extra economy and what does it mean? This really just means we increase your, we decrease or increase operating margins so we save the cost.
And then lastly.
I think one thing that that we talk, you know, really passionately about, you know, when I was in Enterprise Architect, and when I was doing architectural work, I was really focused on the technology, and technology, people on technology, and, and, you know, we solve problems with technology. That's our expertise.
But I think what I really talk about here is, I had to realize, as I know, matured in that and when I was trying to see how do we become more relevant to the business and how do we value that IT by itself can't really drive high amounts of things typically for the corporate balance sheet unless they do them purposely.
And so, if we look at these different things that affect, you know, the Balance Sheet of your of an Organization, IT alone can only affect a very small percentage of takeover of the stakeholder value.
And so what it tells me told me was, it was critical that we put ourselves in a place to understand, how are the decisions we make, drive outcomes? What outcomes on the balance sheet are they trying to drive?
And then we can help drive good Enterprise Architecture decisions, because we're aligned with the business goals of the organization.
And so then, our technology initiatives are in line with our corporate initiatives.
And then we also know the stakeholders in the areas that we need to focus on.
So, we can make this really create value, And so, just, I use this chart to show, depending on what, no matter where you're an Enterprise architect, the goals of your organization are going to be different. You know, I do, you know, public company, you know, public, commercial companies have one set of goals, and depending on where they are in their strategy, it could be capture customers' increase revenue, decrease cost. So, all of these happen in a continuum, Or if you're in a public institution, or work for a city, state, local government, you know, it's, it's, it's a little bit different. But I usually think revenue growth is about how to expand services for your users.
But at the end of the day, we just have to realize what parts we can play, and then we, as we're playing those parts, we have to ensure that we're directing them to support the organization.
Did meet their goals. And I think that, and how they reflect those goals to the two external companies is through the balance sheet.
And so really being mindful about the work that we do, how it affects what, what results we're driving to our stakeholders and shareholders, that's just really business critical.
And so I appreciate, the.
All the things we do with technology, it's just really important to be purposeful.
And so the, no, and that's.
And that's the story, here.
Fantastic, Fantastic jock show, what a great deal.
End to end of enterprise architecture, and strategies, and the results? So we really, really appreciate your presentation. A few questions that have come up just to set set the stage A bit, Joshua, I know that you work across many different industries, different client types, there are questions about the typical profile? For your customer? Just so that we understand a bit of background. what does, what does your typical customer may look like?
Yeah, I mean, typically, I'm working with Fortune, typically, Fortune 200, Fortune 100 clients, typically. My common customer base, most of those companies, I do a lot of Global companies. I mean, large. Global No, glamor enterprises. So, now, I've worked with multiple Fortune 10. I've also worked with some large state and local municipalities. I'm starting to do some work in Australia right now, with, with some of their, with the government there, and, you know, kind of, civil services side, so, a pretty broad profile.
But, I would say, 80% of my work is with, you know, probably Fortune 100, very good. That really helps set the background. I'm looking at the questions, and, by the way, keep asking your questions, and I'll pick as many as I can. Let me make sure that I have my panel visible here, so, that I address your questions as they as they come in.
So, what's fascinating, your coverage of variability, it really, really interesting perspective on the paradox of variability as a differentiator early on from business development perspective as, as, you know, variability is the spice of life early on and later on when you're going to scale variability is evil because scale. So tell us a little bit about what you have seen in the marketplace on, that on, on, on either on both sides of the variability spectrum, especially with the pandemic and the shifts that a lot of organizations have to undertake.
Yeah, so, I mean the variability is interesting because, you know, you've created, you know, I'm dealing with some work with hospitals particularly. Right, So they are, their way they capture patients or support patients has radically changed.
I mean, there's still fundamental hospitals and their fundamental economics work the same, but the way, the interesting thing that they're worried about, is trying to understand, how did they manage the, still, give care.
But then, know, how they run their business, is, kind of reimbursement rates, and, you know, number of beds, and those kinds of things. So I think that, that's, that's probably one of the more interesting use cases that I've seen that forced an industry to adopt you know, burying how they support their their their customers. I mean, the hospitals are that, they're still customers, but they're really patients. And so, I think that I've seen that, and, you know, telehealth, those type of things, but, really, the integrations behind the scenes of that is how they work with payers and providers.
And making sure that they can collect revenues in, how that, how that translates to their balance sheet and those type of things, I think that's been really, really interesting.
And so, that's on the variation side of the house, you know, I've seen people move really fast.
I mean, just the nature of telework is calcium explosions in certain markets and how they support their clients, it's really, yeah, you can look at the stock market and see the people who are benefiting from that. But I think that The Healthcare one is probably the most interesting case. I've worked on a plate.
Very much so. So if you look at the last 12 months or so, what do you think are the most important developments, or trends in the past 12 months, related to enterprise architecture and strategies related to enterprise architecture?
Yeah, I think, so there's always been a push for, when I talked about the paradox, there's always been a push for driving, depending on, where the organization is, an IT is usually looked at as a, as a cost center. And so there's always a push, more heavily towards the operating margin side, which is, you know, how do we reduce headcount? How do we reduce costs? Those kinds of things.
I think that kogod in the cogan environment has accelerated those projects.
And so oftentimes we have a lot of, you know, processes around modernization and various different elements, which is really focused on cost.
So, sorry about that, I didn't that question.
Know, there was some background that came up on that I'm not. I'm not sure where that came from, honestly, that's worth.
Yeah, so, what, what I've seen especially like, so, this is like an auto manufacturing, I've seen a really hard push in to try to drive this, What, I consider the enterprise pattern side of, of, it really, application modernization and consolidation, is what we traditionally call it, but there's been an X, it's been accelerated at a huge rate because there were companies that were already basing their cost savings on modernization and and, you know, consolidation, like, think about app modernization, in the sense, I see a lot of that. And so it's, how do we go in and take environments consolidate, and we have a lot of repeated pieces of software that do a lot of the same things. And how do we take down those portfolios and drive cost efficiencies? And how do we use patterns to accelerate our ability to change? And so, I'll give you an example, I'm working with a large, global auto manufacturer, The auto manufacturer build cars based on a schedule. They have one vehicle in their entire portfolio that they allow to build custom. And so, they're trying to shift to potentially electric cars.
So now what they're doing is they're saying, you know, hey, can you help us normalize our portfolio across all of our manufacturing facilities?
So we can actually build all of our cars custom because Covert showed that people are going to our website and trying to buy cars from us directly, or we usually sell through through dealers And we have no way to do that today. And so if we can take out a lot of this waste of every factory has unique software.
We were able to actually offer our customers new ways to purchases purchase from us, but also drop our operational costs substantially.
So that was a that was a little bit broader answer than what you specifically asked.
But I think that is a really fascinating use case that everybody's trying to achieve, but it's only been accelerated because they see opportunities to support their customers in a better way. And they don't have the capabilities currently.
I love that. I love that. That's, that's, that's great. What do you see in the marketplace?
Which are some of the myths that people have when it comes to enterprise architecture.
So, I think that the common misses, you know, I, I, I see a lot of failures. And there are failures as the wrong word, I see.
Like, so we talk about adoption of a cloud strategy, So this is really fun, either, like, I look at it, It's like, hey, you know, we're gonna open up this cloud thing, and people are going to be developed. And all this variation is going to be created, and we're going to be able to go faster and drop cost, and all these other things. So, that sounds like a great story, right?
The myth is that they forget the Enterprise Patterns Part. So they have like patterns for like access control, and usually every organization, especially large organizations, have like thousands of Enterprise Architect, and they're usually actually, you know, they're usually aligned in a way that is siloed.
And so, because of that, they just, all they do is recreate common silos inside of us, on the platform.
And also, they don't effectively give these patterns to development. So all you do is create a worse problem than you had before.
And so because they don't have effective roadmaps to understand the, but I consider, like, the essence of the organization, like, every organization operates in a certain way.
And so they don't look at that as a roadmap and an opportunity to provide a common pattern to accelerate the variation. It's just, Hey, I'm here to peck technology. And, I'm in a certain domain. It's You have to have a view of how to, how does a person use that repeatedly faster?
Or, does it create more friction?
And, so, I think that's the biggest myths, I think, you know, especially, you know, last several years, these Cloud providers, they come in, they dump that on, You turn it on, it becomes extraordinarily expensive.
Now, you're building the same type of patterns on prem, and trying to put them in a cloud, You have a different operating model, you just create variation both across the operating environment, as well as in the very, in the development environment, and it just makes you worse than when you started.
So, I think, succinctly, a common enterprise pattern roadmap, and aligning that to the projects that your development teams are trying to drive that, is the largest mess. And there's a huge amount of cost savings. And there's a huge amount of value that can be created, just by creating that type of roadmap.
Standing, thank you. That's very insightful perspectives on the market and the opportunities. I have a commentary in a question here from Lydia Spencer and asks, well, first states, as enterprise architects, my team tries to advocate for industry standard third party solutions Lloyd, vendor lock in so that we can easily port to another platform in the future is needed.
However, vendors tend to offer a large price breaks on their proprietary products, database, or app server, their AI tools, et cetera.
Our senior management ultimately wants to save money, So, it's difficult to advocate for them to spend more, to avoid vendor lock in.
Is there a strategy for when to select when it is a good idea to go vendor's proprietary solution?
So, I think so.
I mean, I think there are certain there are certain times, you know, I mean, if we went into like, no, I don't have the time to go into it in us, but there are certain times where vendor strategies make sense. that I always am very cautious about, like, just list looks at the source, Right? So, you're right, those vendors are coming in there, and they're making a cost proposition. And this is really common, and what I consider like the infrastructure side of the house, where it's like that, that scope, or, it's like, Hey, we drive more cost efficiencies if we use your stuff.
The problem is, you missed who's the user of this.
I think the way that you advocate for this successfully is you go and you go to the development side, and you look at their project pipeline. Then you go in there and you pick. If you look at the delivery capabilities they need, you can go and circle in that roadmap. Like, oh, I need access to this common data, and they need access. They need, they're going to need these kinds of basic, fundamental capabilities.
When you see those capabilities overlapping, those are the patterns you need to build. You need to look internal to your org and see what the roadmap in the future looks like, and how those capabilities are being repeated.
I mean, I'll say this simply, you know, picking what database they use. You know, you need multiple databases, because you have different use cases, and you have different capabilities as an example.
But if you're not looking at what your organization is trying to do, and you're listening to the vendor, you're missing the boat, because dropping the cost actually could impede your ability to drive revenue.
And so, that's where you, that. that's the key here, is go to development team.
Look at your development pipeline, work with your partners, and then say, oh, I see you using these things. Build a roadmap. And then, you go to the developer, go to these vendors, and you say, these are our core capabilities we need to support for our systems. We want to build a common pattern.
Like, can you help us there? Instead of them telling you what to use, It's just, your vendors are in it for vendors. So, I mean, I work for a vendor, so I get it. But at the same time, you have to do What's good for the company you have to do. What's what your developers need to accelerate their work? Because that's your customer. You have to focus on your customer. And they're your customers. So that's what I'd say.
Well said. Well said. Josh, thank you so much for joining us today, sharing your expertise about enterprise architecture strategies and your vast experience across many industries. So we really appreciate your insights.
Yeah, thanks, Joseph. Have a great day.
All right, That's great. That wraps up this segment of Enterprise Architecture, lies a little bit back up at the top of the hour. And you do not want to miss this from the City of Calgary in Canada. We have a liter of Business. Central Prize Architecture was doing that work for the city. And I will share with us the experiences of doing this in the inner city government setting. So very, very interesting presentation from the lao Siddiqi. And for those of you who are closing the session, provide, any feedback you have on the questionnaire that will pop up, and we'll see you back up at the top of the hour. Thank you.
Red Hat Transformation Team – Chief Transformation Strategist,
Joshua Gossett joined Red Hat in 2015 after a 10 years tenure at Dell Technologies. Both at Dell Technologies and Red Hat he has served in multiple Senior and Principal level Enterprise Architecture roles.
During his time at Red Hat he has designed and led Transformation Programs for Multiple Large Enterprise Clients. In working with these large organizations he has developed and directed the execution of customized programmatic approaches to support the foundational changes that are required to turn Digital Transformation from a CEO buzz word to an organizational reality.
He has also led and direct teams that assisted organizational and business unit leaders to take nebulous digital declarations and transform them into a true technology strategy with approaches, principles, and tactics that fuel cultural changes and accelerate delivery of digital products and capabilities. He has 10+ years of experience managing multi-year programs that range from the inception, startup, adoption, and operationalization of new Modern Digital Platform Services in multiple Fortune 100 organizations.
Joshua serves his clients with a goal to making them clients for life. This servant leadership approach has allowed him to partner and help build and deliver real organizational transformation and balance sheet results with his clients. With his focus on service excellence and a broad base of skills he elevates the teams he collaborates with.
Mr. Gossett holds a BA in Economics from the University of Texas at Austin. He also hold certificates in Strategic Decision Making and Risk Management and Managerial Leadership from the University of Texas. Given his background as a Principal Architect he also has numerous Technology Certifications as well as Certifications in Six Sigma, SAFe Agile, and ITIL.
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