DevOps – End to End IT Development and Operations Management

DevOps is combination of development (Dev) and operations (Ops). As the name suggests DevOps is a framework and set of tools that ensure tight integration of development and operations management cycle.

DevOps need become stronger after year 2007 when internet technologies and platforms including social media platforms started being used heavily. This created a need for software companies and organizations to ensure that their IT development and operations management teams become tightly integrated to reduce errors, time delays, costs and more importantly become faster, highly reliable and accurate.

From year 2012 onwards DevOps became the norm for all software companies while from 2016 onwards most of the multinationals embarked on deploying DevOps frameworks and tools. In the past five years several specialized and automated DevOps tools have come up that offer seamless step by step integration for end-to-end IT development and IT operations management.

DevOps brings the development and operations team to work collaboratively together throughout the application lifecycle ensuring there is no gaps. DevOps is managed through set of automated tools that ensure each stage of handover is well checked and moved on to next stages without any gaps. DevOps framework and tools ensure continuous delivery and continuous integration along with version controls, logs and automation of tasks for all stages.

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The DevOps high level framework consists of 8 stages. Let’s understand each of them briefly.

1. Plan – DevOps planning stage is focused on agile planning and delivery. Agile development is an iterative development approach for continuous delivery.

2. Code – DevOps code stage is focused coders completing their coding packages and passing it on to build.

3.  Build – DevOps build stage is focused on combining and compiling the code packages to get them ready for testing.

4. Test – DevOps test stage is focused on testing and related rework completion to get the packages ready for release.

5. Release – DevOps release stage gets the finalized tested and built packages ready for final quality check and release. This is also the phase where continuous delivery and continuous integration comes together.

6. Deploy – DevOps deploy stage gets the packages deployed in production and moved on to monitor stage.

7. Monitor – DevOps monitor stage is focused on monitoring the success of deployment and address any issues faced.

8. Operate – DevOps operate stage is business as usual stage where normal operations continue. From this stage the next set of changes are fed to the plan stage and then the cycle continues.

Now let’s have a quick look at key tools that can be used at each stage of the framework. Organizations that operate the DevOps environment, use these tools to automate the entire DevOps application life cycle. There are many more tools and platforms available while below are the best tools/platforms that are used by many organizations.

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There are other aspects of DevOps as well which are slowly evolving. In past couple of year DevSecOps has come up as security is important. DevSecOps brings integration of IT development (Dev), security (Sec) and operations (Ops) ensuring IT security is taken care at each stage of the framework and entire end to end lifecycle.

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The latest framework relating to DevOps is called MLDevOps or MLOps. It integrates Machine Learning (ML), Development (Dev) and Operations (Ops) together. MLOps or MLDevOps is currently used by organizations dealing with big data analytics where they need to clean and model data using data science and machine learning techniques and algorithms. MLOps helps integrate and automate the entire process for machine learning applications life cycle management.

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There are many benefits of DevOps, while only organizations requiring continuous delivery and continuous integration should invest in this. DevOps will become a mandatory need for most organizations as all of them use internet-based applications that require agility and accuracy in managing changes and releases.

As we move towards using machine learning, artificial intelligence, robotics automation, mixed reality, blockchain, metaverse technologies, we will need full end to end automation of application development and operations lifecycle. We will need all of it to work seamlessly with agility and accuracy. 

I hope by now you have developed a good understanding on DevOps and why we need it. The need for DevOps and its evolving frameworks will continue to increase in coming period.

The Famous Eight Digital Business Models

We are in the digital economy and digital era where everything around us is digitalized. We all use many different forms of digital technologies to fulfil our daily needs and demands. Many of us also work and delivery digital technologies that support in digitalizing our business models.

Internet got introduced in the decade of 1990s, post that in the millennium (2000s) decade many foundations level digital business models evolved and started. The models became more powerful and started disrupting traditional business models and industries in the last decade. 

In the past decade many newer digital business models came up and many became largely successful while some perished as well. 

Let’s have a brief look at the digital business models and which brands are using them.

1. Free Business Model

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a.  The free business model is where the business is offering a service for free that can help the entire or subset of internet user community across the globe. 

b. The business model offers a free platform for users to use and fulfil their needs of searching, learning, sharing, connecting etc. 

c. The business model earns revenue using advertisements which are shown as part of the service.

d. The famous examples of the free model are Google, Facebook, Instagram, YouTube, Pinterest etc. E.g. when we search on google we get advertised and paid products on top of the search.

2. Freemium Business Model

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a.  The freemium business model is similar to the free model but its not entirely free. 

b. The business has the basic version of the solution, service or product free for all. 

c. The users have to pay for the standard and premium versions for getting additional features. The revenue is earned through subscriptions and data insights. 

d. Famous examples of the freemium model are LinkedIn and Spotify both have basic versions free to ensure they acquire the user base. Once users like the services, they subscribe and pay for more features.

3. Ecommerce Business Model

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a. The eCommerce business model is the most used and well know business model that all organizations and users use across the world.

b. In this model the organizations sell their products through an online platform to their customers as well as consumers to generate revenue.

c. There are many variations of this business model. The two most used are,

      i. Brand’s own shops are generally called D2C (direct to consumer) or B2C (business to consumer) business models where products are directly sold to end consumers using the online platform.

     ii. Brand’s retailers and professional customers generally use the B2B (business to business) or D2B (direct to business) business models where products can be ordered by retailers and professional customers at their agreed product prices and discounts in bulk for selling through their sales channels (shops, online channels etc.)

d. Famous examples of eCommerce models can be easily seen for any of the big brands’ online shops. E.g. Apple, Philips, Sony, Panasonic etc.

4. Marketplace Business Model

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a. The marketplace business model is next famous and widely used business model across the world.

b. As the name suggest, this business model is an online marketplace where consumers can find all brands’ products for online purchase.

c. The marketplace place providers create huge consumer base through digital marketing tools and techniques.

d. They ensure they are able to handle the full order to delivery cycle for the products sold. They also ensure brands’ can create their own shop in the marketplace to sell their products.

e. Famous examples of this model are eBay, Lazada, Shopee and many others.

5. On Demand Business Model

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a. The on-demand business model is what many of us use on daily basis. 

b. In this model the consumer calls or uses he on demand service and pays for the service based on the usage.

c. The model works through online on demand service request and pay per use.

d. Famous examples of this model are taxi and food delivery services like Grab, Gojek, Uber, Comfort, Ola, Deliveroo, Food panda etc.

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6. Subscription Based Business Model

a. The other largely used busines model is subscription-based business model.

b. In this business model we pay a recurring monthly or yearly subscription fees for using the product and services.

c. The business model is fully digital and online service consumed by consumers.

d. Famous examples of this model are, NetFlix, AppleTv+, Amazon Prime, Office365, Salesforce, AWS, Azure and several other online software and apps that we use on our laptop, tablet and mobile devices.

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7. Sharing Business Model

a. The sharing busines models have evolved in last decade where we rent or assets like property, car, equipment for use by others.

b. The busines model is fully digital where the consumer can reserve the asset for a certain number of days and pay for using it on those days.

c. Famous examples of sharing business model are car rentals and home rental companies like Airbnb, Uber and HyreCar etc.

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8. Open-Source Business Model

a. The open-source business model has gained more strength in the last decade while it started already in the millennium decade.

b. The business model earns revenue through training, hosting and other services while the core product itself is fully open-sourced for users to use and adapt.

c. Famous examples of open-source business model are Redhat Linux, Mozila FireFox, Github, Magento, MySQL and Python etc.

These are the eight famous and widely used digital business models that everyone must know. There are a few more models li

In this decade we will see further evolution of digital business models using next gen technologies namely artificial intelligence, robotics automation, data analytics, mixed reality and blockchains.

I hope this will help you learn and understand these models clearly now and every time you use it you will know how that business model and business works.

IT Service Management

IT Service Management is largely focused on effectively and efficiently managing the IT Operations processes, people, technology and tools.

Managing wide variety of IT services across multiple domains, platforms and standards requires standard framework, operating procedures, partners and tools.

ITIL (IT Infrastructure Library) Framework is used by all successful organization worldwide since 2003. The most robust ITIL framework that lasted whole of last decade was ITIL Version 3.0.

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For the current decade given the shift of entire technology platform and how we manage IT, there was a need for a new framework that can integrate well and work hand in hand with Agile, Lean, DevOps and Digital/Business Transformations.

The new ITIL framework ITIL Version 4.0 has reshaped ITIL framework to meet the current decade IT Service Management needs.

Here is a quick overview of what has changed from ITIL V3.0 to V4.0.

The new framework is more generic and holistic to ensure it can easily fit for all organizations.

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1. The core concept has changed from “service lifecycle” to “service value system”.

2. The processes have been changed to practices. The new framework has 34 ITIL practices.

3. ITIL guiding principles have been revised and reduced to 7 principles.

4. The 4Ps of service design are changed to 4 Dimensions of service management.

Here is a more detailed overview of changes from processes to practices.

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1. ITIL v4.0 shifts from 5 process domains to 3 practices domains.

2. Number practices have been increased to 34 when compared to 26 processes.

3. A lot of General Management practices have been added, also several new practices added in service management as well as technology management domain.

4. Best practices and process domains from ITIL v3.0 are all retained under ITIL v4.0 practices.

5. In ITIL v4.0 focus is increased on value creation instead of just managing the service lifecycle.

6. Integration and links with other frameworks and methodologies is now possible making ITIL v4.0 fit for agile, lean and devops frameworks.

7. ITIL v4.0 is much more aligned with new business strategies and new technology platforms and frameworks.

Overall ITIL v4.0 is best suited and fit for managing IT services and operations. Deploying the ITIL v4.0 framework is relatively straight forward for organizations already using ITIL v3.0 framework. IT service management in many organization is managed through IT strategic operations partners. All we need is the right operations partner and tools.

There are many IT Service Management tools in the market. Large organizations mostly use ServiceNow while small & medium size organizations use online web based pay per use (SaaS) tools.

The way we serve our internal and external customers will change entirely using automation, machine learning algorithms and artificial intelligence.

Automation has taken over the helpdesk and support part to a large extent through artificial intelligence, chatbots, robotics process automations as well as data analytics platforms. Automation and self service support models will continue to become more stronger in coming years but that will not entirely remove the need for IT service management as a whole.

IT service management is an important core of IT services and is here to stay for this decade and beyond.

Creating Value with the Value Proposition Canvas

The value proposition canvas is important for all businesses. It can be used for new products, initiatives foundation. It can also be used for knowing the value proposition of our existing business as well as for any new businesses and ventures.

The value proposition canvas consists of two major areas. One is focused on the customers and their needs while the other is focused on value proposition, we offer to fulfil our customer needs.

Value proposition canvas can be seen as the foundation and most important layer for forming any business and ventures. It can be also easily linked to the business model canvas Value Proposition and Customer Segments sections.

It is fairly easy to prepare and gives a full overview of our customers and how we fulfil their needs with our unique offerings.

We must start with our customer segments and define a unique persona in the “Customer” section. Based on the customer persona, we can fill up the “Want – Gain” section. 

Ideally if you have completed the “Empathy Map” and “Persona” for your ideal customer then you can easily fill in the “Want – Gain” as well as the “Need – Pain” sections.

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Let’s get the Customer section filled up,

1.     In the “Customer” section fill up the ideal customer persona information. Focus on defining the key aspects of the ideal customer segment.

2.     In the “Want – Gain” section fill up the customer wants and/or gains. What will the customer gain if they get the solution they are looking for.

3.     In the “Need – Pain” section fill up the customer pain points and/or needs. Think about what pains will be resolved and what the customer really needs.

4.     In the “Early Adopters” section fill up the customer sub segment that will be the early adopters of the product / solution / service.

5.     In the “Early Majority section fill up the customer sub segments that will be the early majority of the product / solution / service.

After completing the “Customer” section, let’s move to the “Product” section and fill up the benefits, features and user experience parts. Let’s get the Product section filled up,

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1.     In the “User Experience” section fill up what customers will experience when they use the product/solution/ service.

2.     In the “Benefit(s)” section fill up the key benefits of the product.

3.     In the “Feature(s)” section fill up the key features of the product.

4.     In the “Unique Value” section fill up the Unique Value offered by the product. This should be something that none of our competitors or alternatives offer.

5.     In the “Alternatives / Competitions” section fill up what are the current alternatives include what competitors are offering.

Please do remember to ensure the value proposition product and customer sections are in synchronised with each other and complimenting.

Here is the complete overview of the “Value Proposition Canvas” and how it will look like.

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This completes the value proposition. Do remember to review and revise it a few times as you might not get it 100% right in the first attempt and there will be need to review it with team and key stakeholders.

With the value proposition canvas, you should be able to share the entire proposition to stakeholders with just one slide.

Please keep it simple and brief. The details for each section can come from respective detailed exercises of “empathy map”, “persona”, “product prototype” etc.

I hope you will like, share and use this for your creating value propositions. In my next series of articles, I will share about more useful concepts that I have used over years and which are necessary must have for everyone to learn and know.

Create New Venture and Startups using Lean Canvas

The Business Model Canvas can be used to document and understand the existing business overview. For new entirely new businesses we can use the Lean Canvas Model.

Lean Canvas business model can be easily filled up if the business information is clearly available. It helps to bring structure and thought on important aspects of the business.

Lean Canvas helps in defining new venture and startups with ease. It consists of 9 major segments which can be defined in one single slide while details on each can be put up on separate slides or documents for reference, inputs and refinements.

Now let’s briefly define the segments for better understanding.

1.     Problem: List down the problems of your customer segments. Specify which key problems will be solved.

2.     Existing Alternatives: List down what are the existing alternatives and how customers cope with these problems or solve them using alternatives.

3.    Customer Segments: Focuses on knowing all the involved key customer segments of the business. Questions to ask are,

  • Who are our most important customers? 
  • For whom are we creating value? 
  • Is our customer base a Mass Market, Niche Market, Segmented, Diversified, Multi-sided Platform etc.

4.     Early Adopters: List the sub segment of customers that will be early adopters of the solutions and services.

5.     Unique Value Proposition: This is one of the important segments where we clarify the value proposition(s) of the business.

a.    What problems are we helping to solve? 

b.    What unique value do we deliver to our customer segments? 

c.     Which customer needs are we satisfying?

6.     High-Level Concept: List the high-level concept of your unique value proposition. 

7.     Solution: Outline the solution and service for each problem. Also check that the solution matches the unique proposition and high-level concept elements.

8.     Key Metrics: In this section specify your top 3 to 5 Key Performance Indicators which will help you measure your business and its success. Use SMART method to defined clear, concise and measurable metrics.

9.     Unfair Advantage: In this segment specify your unfair advantage. It is something that cannot be easily copied. E.g. your years of experience of specific industry.

10. Channels: In channels we specify the business channels we use for business. Questions to ask are,

  • Which Channels do we use to reach our Customer Segments? 
  • How are our Channels integrated? 
  • Which ones work best (profitable & cost-efficient)? 

11. Costs Structure: This is an important to highlight all our business costs and including our liabilities.

  • What are the costs for our business?

12. Revenues Streams: In this section we note our revenue streams and how we generate revenue including our assets.

  • What are our revenue streams?
  • How we do generate the revenue?

Once you noted all the information, you can easily transfer it to the one slide overview.

Now go ahead and give it a try. You can also use this for clearing your understanding on any ideas, start-ups and ventures. This simple overview can help you understand and explain your start-up or venture clearly to others. It will also help you sharpen your business and make a call whether its worth trying as well as identify gaps that you will need to fill.

After you have understood the Lean Canvas model, you can easily understand what are the key areas and where are the potential gaps are for the business.

In my next article I will share an overview of value proposition model that can be used for any new business ideas with in existing business.

Know everything about the business with in an hour

We all need to know our businesses and stakeholders well. In this brief article, I would like to share an important and east tool that I have used significantly and it works very well.

The best and the easiest way to understand the complete overview of any business as well as our key stakeholders is to create a business model canvas for them.

The process is relatively straight forward. All we need to do is to setup 30 minutes call with respective business owner and/or stakeholder and run through the series of questions which they can easily answer.

Important is to ensure you note or record answers to all questions meticulously. Also pay attention to listening and body language as your stakeholders speak. This will help you engage and understand the real issues and which areas are well defined versus areas requiring attention.

The Business model canvas is 8 segments consisting of 3 to 5 questions for each segment. Ideally it is best to fill it up in the below order.

1. Customer Segments: Focuses on knowing all the involved key customer segments of the business. Questions to ask are,

  • Who are our most important customers? 
  • For whom are we creating value? 
  • Is our customer base a Mass Market, Niche Market, Segmented, Diversified, Multi-sided Platform etc.

2. Channels: In channels we specify the business channels we use for business. Questions to ask are,

  • Which Channels do we use to reach our Customer Segments? 
  • How are our Channels integrated? 
  • Which ones work best (profitable & cost-efficient)? 

3. Customer Relationships: In the section we discuss and document about how we manage customer relationships.

  • How do we manage customer relationships with our customer segments? 
  • How are they integrated with the rest of our business model?

4. Value Propositions: This is one of the important segments where we clarify the value proposition(s) of the business.

  • What problems are we helping to solve? 
  • What unique value do we deliver to our customer segments? 
  • Which customer needs are we satisfying?

5. Key Activities: Key activities are key activities we do to meet our core business needs and deliver the unique value propositions

  • What Key Activities do our Value Propositions require?
  • Which Key Activities do partners perform?

6. Key Resources: In this segment fill up the list of key resources we need to run the business.

  • What Key Resources do our Value Propositions require?
  • Which Key Resources are we acquiring from partners? 

7. Key Partners: Here we define and list down our key partners for the business.

  • Who are our Key Partners? 
  • Who are our key suppliers? 

8. Costs Structure: This is an important to highlight all our business costs and including our liabilities.

  • What are the costs for our business?

9. Revenues Streams: In this section we note our revenue streams and how we generate revenue including our assets.

  • What are our revenue streams?
  • How we do generate the revenue?

Once we collected all the answers, we can document them on one slide for easy overview. 

You can also use this for knowing about any businesses of your choice. This simple overview can help you understand the business clearly within an hour.

Once you have understood and documented the business model, you can easily understand what are the key areas and where are the potential pain points of the business.

In my next article I will share an alternative version of business model canvas that can be used for any new business startups.

Learn and Grow – The 21 Good Management Lessons

Here are the 21 good management lessons from 2021. Please take it to learn, share and relate to your own experiences.

  1. Always be your honest and absolute very best in everything you do. 
  2. Make suer you have solid values and clear conscience to lead, coach and genuinely help people grow.
  3. Only do things that will help the team and business grow in legit ways as per organization’s core values, purpose and vision.
  4. Dare to challenge the status quo and bring the change that others are overlooking or afraid to do.
  5. Use your connections and build your network of team members who can team up to make the difference.
  6. Manage and support your boss as well as management team in achieving the overall organization goals.
  7. Build Trust and Empower your team members. Trust and support team members and the team will reciprocate by delivering a much greater value in return.
  8. Ensure that the team players and their workloads are closely monitored to balance it in such a way that everyone has at least 10% to 15% time per week to balance their work, learn, share and grow themselves.
  9. Team building in smaller teams focused on specific programs or goals is essential. Team building must happen at work as part of the work. The real team building doesn’t need special high spending (costly) events as team members stick together and find time to bond and enjoy together as a team on their own.
  10. Recognition awards and some time off for members that have over worked for delivering results is a much better way of rewarding and creating work life balance.
  11. Refrain from calling team members after office hours, on public holidays and over weekends as that is not very professional unless that is required for specific preplanned events or activities.
  12. Appraisal is the time that should be seen in a positive way to give and receive feedbacks as well as to ensure every 2-3 years based on performance people are promoted and well paid for their efforts year on year. 
  13. Let the team participate in suitable internal and external competitions to shows the best of the best solutions. Support the team by allowing them time to prepare and do the needful on their own but with your and other guidance where required.
  14. Ensure individual team members are well recognised for their work and role model behaviours. Make sure right team members get the needful credit for the work done.
  15. If the team has done a great job in delivering value then ensure each of them get their shining moment in the organization as well as encouraged to continue their journey of delivering more greater value.
  16. Teaming up is much less about dividing & conquering and much more about taking joint ownership to deliver on commitment.
  17. Take teams credit to get the award from top management & in return give the actual team players close to nothing but more complex assignments.
  18. Hiring interns and contract staff to bring new generation & different nationalities on the team is a great step forward but ensure that they have a good career prospect for long term. Groom them well to identify talents and hire them for long term success.
  19. Keep a transparent environment and let team members have skip level meetings or lunch sessions with top management to share their views and ideas.
  20. Be as transparent as possible and be open with team members, never lie to them about organization changes as they will eventually know if you lie. Being transparent will ensure team members are fully aware and well prepared to move forward as a team.
  21. Always remember that as a leader or even a manager you have careers of your team members in your hands. Be the honest leader your team wants you to be.

There are many Good management lessons for sharing. The above list is just my observations from year 2021. I hope you will be able to relate to it and use it for the betterment of everyone in the team.

Learn to Unlearn – The 21 Bad Management Lessons

Learn the 21 bad management lessons to unlearn. Take it in a fun way to learn and relate to your own experiences and share your own views and lessons.

  1. Always be on your boss’s favourite list. Being the top favourite will ensure fully secured career and growth path. Just do whatever your boss says doesn’t matter if that’s a wrong thing to do. Because the Boss is always right.
  2. Use connections to get ahead as it doesn’t matter if you really know the job you are hired for. You get new positions purely based on your connections.
  3. Just manage upward (your boss and your bosses boss) as they are most important for your growth and not your team. Use your team to secure your own growth.
  4. Track your team members. Hire & put few people in team, responsible of tracking others.
  5. Load team players with so much work that they will have no time & life left outside work.
  6. Once every quarter choose 2-3 people that worked 60/70 hours per week and give them $100 vouchers for their 100 hours of extra work.
  7. Call up team players after work hours and over weekends to give them additional work as urgent top priority. This will ensure you can relax while you take every hour of your team players family life.
  8. When it’s appraisal time, talk about demotions coming, budget cuts for all to scare everyone. This will ensure no one ever asks for promotion & salary increases.
  9. Buy awards for systems that are not even in use and showcase as the best award ever to improve your own image & credibility with top management.
  10. Take teams credit to get the award from top management & in return give the actual team players close to nothing but more complex assignments.
  11. If a team player is doing a great job on a complex program/project then remove them after the program has crossed most complex milestones and put your own favourites. This will ensure favourites shine and get great image.
  12. Snatch team players’ work (Divide & Conquer) and pass it to your favourites. This will ensure team players fall flat & loose all the remaining motivation and your favourites grow.
  13. Hire lots of interns and contract staff even if you don’t really need them. This will create great image with top management that you are employing and creating value.
  14. When you are asked to reduce headcount, you just need to remove all the hired interns and contract staff that you hired earlier and meet your reduction target.
  15. For growing the team size, just remove the most hardworking players and then hire 6-10 new people to fulfil the same needs. This will automatically increase team size and budget.
  16. For the skip level meetings with your bosses boss, train the team with who can ask what questions, which questions are allowed, who is allowed to talk, what to say and what to hide. In addition join the meeting even after being asked not to join. This will ensure the team will only speak what’s discussed and not ask any meaningful questions.
  17. To ensure you are able to track who has submitted the employee engagement survey when and whether or not all have participated; make it mandatory to share screen print of when you submitted the survey. This will ensure full participation in the survey.
  18. To ensure only your favourites win the lucky draw at team events, ensure only their names are announced doesn’t matter who’s name really comes out from the draw chit.
  19. Ensure only your favorite and friends company receives contracts so that you can benefit and get your % cut. It doesn’t matter if their prices are high till the time you are benefiting. Create multi (3) years blanket POs which will make you gain even more.
  20. To meet your value creation KPIs, simply count in previous year value in this year. No one will know and no one will ask as everyone likes bigger numbers. Even if people get to know, so what, you are the Boss.
  21. To scare team members remove the hardest working, honest and experienced team players and block them from getting a new job. This will ensure no team member dares to speak about wrong things and no one will dare to leave either.

I hope you enjoyed reading these lessons and some of you smiled as well. Please unlearn these 21 bad management lessons, if you are doing any of these. Please help others incase you see anyone still doing any of these.

Look forward to my next article of 21 Good Management Lessons. Catch up with you all soon.

Cloud Computing – SaaS Solutions by SAP ERP

SAP ERP Cloud Computing – SaaS Solutions

SAP is the world’s largest used enterprise resource planning solution that provides solutions for business process automation based on industry best practice standards. Given the IT service industry shift from Shared Services to Utility based ICT services, SAP has come up with two suite of SaaS solutions.

SAP Business By Design

SAP Business by design is focused on providing large organization’s subsidiaries and small & medium enterprises a full application suite that can help automate their idea to market, market to order and order to cash business processes while still paying based on usage instead of huge deployment costs. It gives them flexibility to configure functionality they need including Analytics and reporting that complete the full suite.

SAP Business One Cloud

SAP Business One Cloud is focused on providing small organization’s an application suite that can help automate their marketing, sales, delivery and service processes while still paying a low fees based on usage instead of huge ICT costs. The suite is preconfigured and ready to use for small size organisations. Being a cloud based solution it allows small businesses to become flexible and IT ready while giving them scalability to ramp up usage based on need.

CONCLUSION

Cloud Computing has started in past decade as a natural transition from ICT Shared Services to ICT Utility based services. The use, need and availability of Internet has made ICT traditional services transition to Cloud Computing service even more faster.

Cloud Computing Service benefits are now out weighing the issues faced and most the issues faced are by and large overcome by service providers. Cloud computing services are being adopted by most organisations and the adoption continues to increase every year.

Its clear that cloud computing services and specially SaaS solutions would continue to grow as this allows the organisations to become agile in adopting new solutions while reducing ICT investments and paying for use only.

The existing SAP ERP SaaS solutions are targeting and meant for use by SMEs and Smaller organisations.  SAP has to look into how it can create an offering for even the large size organisations traditional SAP ERP solution to SaaS SAP ERP solution. Delay in doing so could result in lost opportunity e.g. in saleforce.com is a fast growing SaaS offering for CRM solutions and many organisations are adopting it.

Lastly Cloud Computing Services open a vast opportunity for service providers to build and offer new internet based services and solutions that can help organisations achieve their goals.

Software as a Service (SaaS) Service Model – Benefits and Issues

Benefits of SaaS Service Model

Cloud Computing SaaS Model offers the full stack of ICT service and full stack means it delivers an IT Solution for the organisation. The key benefits of SaaS service model can be listed as follows,

  1. One Standard Solution: SaaS solutions are made using industry standard best practice business processes for making them adaptable and fit for entire industry. The SaaS solution offering is standard and available across the whole organisation for use based on needs. This gives the organisation real time usage across the world and more importantly saving ICT costs of duplicate or different solution at different locations.
  2. Self Service Model: SaaS solution offering works on self-service model where by the business users can choose and pick the services options they need. The solution support issues are also self-service based making the business users to check and receive support from one central support.
  3. Pay for Use: SaaS solution offering allows organisations to pay for use, it means organisation do not incur or worry about ICT additional costs as they pay only for number of users using the specific service(s).
  4. Reduced Costs: SaaS solution offering allows organisations to reduce their ICT capital expenditure costs as the solution is ready to use and minimal to no upfront investment required to start using the SaaS solution. On the other hand as there is no ICT Infrastructure and other components ownership, the organisation only incurs the usage costs and has ease of ramp up and ramp down usage, thus allowing higher flexibility.
  5. Faster Time to Market: SaaS solution offering reduces the time for preparation and deployment to the lowest possible as the solution is available for use and requires minimum configuration, setup and user training time to start using the solution. As the whole organisation uses only one solution any changes or new functionality can be also introduced in one go to the whole organisation.
  6. Standard Interfacing: SaaS solution offerings are used by multiple organisations so these are made using industry standard best practices processes and ICT standard for cross system communications and message exchanges. This makes organisations to connect with their customers and consumers in a standard and easy to use way.

Issues of SaaS Service Model

Cloud computing and SaaS service offering by service providers is still evolving. The key issues of SaaS service model can be listed as follows,

  1. Security: Security is the key concern for all organisations that think of SaaS Service adoption. This emerges from the fact that everyday unsecured internet sites and at times even the highly secured internet sites are hacked and data is stolen. SaaS service offerings are internet based and concerns organisations have is about securing their identity and organisation data.
  2. Standards: Cloud computing and SaaS offerings are still evolving and along with them the standards for such services are also still evolving. Type of clouds and mashing of multiple providers e.g. SalesForce.com offering Saas Channel CRM solution while using Amazon IaaS / PaaS service to host it.
  3. Big Data: Data Management is a growing concern for all organisations and its specially an issue for SaaS service solution as the organisation does not own any solution component and pays only of usage of the services. The concern is how the data captured can be stored in organisations data warehouse with ensuring that the data is encrypted while exchange and securely stored as well as usable for generate reports and insights required for decision making.
  4. Change: While adoption of SaaS service is fairly simple, the concern and issue is of switching from one SaaS solution to other and how the transition as well as underlying information exchange from one vendor to another vendor to be handled.
  5. Strategy and Governance: For Cloud Computing Service adoption organisations must have a clear strategy and governance structure and processes. Strategy will help identify in what areas what types of cloud services can be adopted while governance will help ensure clear understanding of roles and responsibilities, compliance and risks.