|By Skytap Blog||
|January 9, 2014 03:04 PM EST||
Madrona Venture Group's Matt McIlwain discusses what the enterprise 2.0 means, and what brought us to this point in software development. Learn how BYOD policies, empowerment, and other innovative strategies all contribute to the apps we can't live without.
Noel: Hello, this is Noel Wurst with Skytap and I am speaking Matt McIlwain who is the managing director at Madrona Venture Group. I was really interested in
speaking with Matt based off an article that I read that he recently wrote titled, “ In the Empowered Enterprise 2.0, Startups Have the Inside Track to Success.” How are
you today, Matt?
Matt: I’m doing fine, Noel.
Noel: Great. Thanks for sitting down with me today. As an English major, I first wanted to ask you what your definition was for the Enterprise 2.0, and may be
how that differs from what it used to be, from the Enterprise 1.0.
Matt: Yeah, the way I think about it, is that Enterprise 1.0 was more of a top-down driven style of organization where not only parameters but decisions were
made and controls were set and new types of products were identified and developed in a top-down way. In contrast, Enterprise 2.0 is an era where the
bottoms-up motion of new applications and solutions being discovered is combined with the top -own motion, and they kind of coexist with an increasing
amount of influence from the bottoms up.
Noel: Okay. With that bottoms-up process, I know that comes a lot with collaboration, and it’s really interesting when I was researching the evolution of this
definition, I read where Andrew McAfee, who is credited with coining the phrase “Enterprise 2.0,” I read where he had to revive or he
chose to revised his definition completely only 7 days after he published it because of the input he received on just other people thought the definition
should mean. It’s kind of like you had collaboration from the very start, just with the coining of this phrase and it’s just grown and grown in the
developing of these applications.
Matt: I actually think that collaboration is very important and I think it’s one of three core areas around Enterprise 2.0, the other two being
elasticity and insight. Elasticity, meaning everything that we can now buy on-demand and buy by small increments. Obviously infrastructure as a service
would be one of the examples of that but almost anything which you can buy on a kind of low-end entry subscription basis, or have a free trial and go from
a premium model into something that you can buy a limited amount of is the elasticity notion.
Collaboration to me is more the overarching word that encapsulates the cloud-first designs, the mobility access capabilities that we have, and there is
this notion which I think is to your point, of some of the social dimensions that things are iterative, that I put something out there and I get feedback
around it or I put something out there and others improve it. That’s one of the three elements of the collaboration piece, which sits in this broader, I
like to use the ICE metaphor. Insight, Collaboration, and Elasticity: the 3 key building blocks of Enterprise 2.0.
Noel: What kinds of, I guess as far as how these enterprise applications are developed to make them qualified to be considered an “Enterprise 2.0” application.
What kinds of differences are you seeing in the way that these apps are actually built and the way that they’re actually developed versus the way that they
were developed in the past? Is that creating any kind of difficulty for some organizations?
Matt: I think that the key insight there is that a lot of things are starting more at the edge of the enterprise. In fact it is bottoms-up idea. And people are
trying to solve their problems at the edge of the enterprise. One way to think about it is that there are really three types of IT within an enterprise
now. There’s corporate IT, there’s business unit IT, and there’s shadow IT. And at some level, there have always been those, but shadow IT, because they
can go out and find and download, or use if it’s a cloud, back to that cloud part of collaboration, a solution—they can adopt it, they can work with it,
and they can deliver solutions that solve their localized problems. That’s a motion that didn’t work the same way ten to fifteen years ago and so what
you're seeing is teams of the shadow IT level that are going out and solving your problem.
Sometimes solving your problems means they have to develop an application, and they can do that with this very elastic infrastructure, or these simple to
try and then adopt software-as-a-service kinds of solutions to solve your problem—and that’s what’s very different now. Now, the other side of the coin is
that within an enterprise, you can’t allow that to happen sort of willy-nilly and without any kind of governance, and policy management, and control—and
that’s why that Enterprise 2.0 definition has to have both top-down and bottoms-up and how they meet together to create something that was workable from an
Noel: Do you think that agility and agile development has played some sort of role in that? With everything trying to be done faster and at a higher quality?
If teams are seeing the ability to implement things like this on their own, without this approval they used to have to get in the past. Do you think that
agility is helping teams deliver faster and at a higher quality, but is there still some risk involved when teams are making those decisions for
Matt: I think that it definitely helps from an agility perspective. What I would note is that one of the biggest challenges within the enterprises, is they
don’t have particularly agile infrastructure. So, you're seeing a lot of big corporations try to create more agile software development teams but their
internal procedures around procuring and configuring that infrastructure are not agile. So, I think as a result back to this bottoms-up, you're seeing
teams say, “Hey I’m just going to go find some elastic, agile infrastructure and an elastic agile process and I’m going to go solve my problem that way.”
What happens though, is a lot of those types of solutions are one-offs, and once they get developed and somebody throws them essentially over the wall into
some kind of a production environment—what’s going to happen then? I think that’s why you're seeing the emergence of a new type of system that is an agile
systematic approach that has a notion of continuous integration involved in it that is helping bridge this gap between these bottoms-up one-offs and the
more systematic needs of enterprise organization. Because once that first solution is built, you need to continually improve it, back to the point of our
collaboration, and you're going to get feedback on what needs to be continually improved.
Noel: Absolutely. To go back to your article where you mentioned that the relationship between bring your own device policies, distributed responsibility, and
enterprise 2.0, but you also brought up one other thing that I thought was really great. It was that, when employees become empowered in their personal
lives through their devices that they use on their own time. Whether it’s a smart phone, or a tablet, wearables, or anything else that’s coming out these
days— that expectation of that empowerment moves into the workplace as well.
They’re expecting that empowerment, I think you used the phrase “out of every piece of technology they touch”—they’re expecting it work as well. That’s a
connection that hadn’t really been made before I don’t think. In the past, you expected to get the same out of your devices at work than you did at home.
Matt: Look, I’m a big believer that human beings like the feeling of freedom and empowerment. That smart connected device that they use in their personal lives
is in a sense sort of a personal remote control that connects their physical world with their digital world. It allows them to have access not just to the
device but all the applications and solutions that are often digital first but increasingly interacting with the physical world. Take Uber for an example
and so with that the expectations that brings, they simply go, “why can’t I have that in my work context?”
Whether I’m a consumer or services in the work context, the knowledge worker, the business workers that are within the business units wanting to consume
services in a more agile way. Having that same kind of personal smart phone remote control experience in the office with apps like Concur, which is a SaaS
kind of app, or SalesForce, and so and so forth, or they’re the teams that are developing the next generation of solutions within the enterprise. And
because those expectations have been raised so much, the enterprises are now following rather than leading. Fifteen to twenty years ago,
really the enterprises had the resources to go buy the big iron compute technology of the day, and systematic approaches of the day and develop solutions
in that. That’s no longer the case.
Noel: In another article that I read on the same topic, the author mentioned that the startups that are producing really innovative enterprise software are
receiving a lion’s share of venture capital because the software is “usable.” While I really like that that’s that’s a goal they have to create something
“usable,” it almost seemed like it came up a little bit short. In your story, you're explaining how these enterprise applications aren’t just
usable—they're really enjoyable. They’re fast, they accept and welcome feedback, they benefit the employees and the businesses, and I feel like it
goes beyond the definition that we once had of just what “usability” was.
Matt: I’ll come back in a second to the usability point. I think that the link there is actually that when people have empowerment, they have freedom, and
they’re also often willing to have accountability and say, “Hey, okay I got the freedom. I got to go do the things I wanted to do, but what did I
deliver as a result?” Whether I’m a team, part of a team that’s going to deliver a next generation product or I’m part of a business team that because I
got to pick my apps, I was expected to deliver a better marketing solution, or a better sales solution or whatever it might be within my organization.
I think that that’s a key piece, and it does start at some level with usability. Let me give you a very “non-enterprisey” example. In the last month, this
organization, Code.org, put out this idea of an idea of “an hour of code” and invited anybody, mostly kids, to develop their first software program. 20
million people, mostly kids, did this in the last month and I know, I’ve got a 10-year-old son. He feels so empowered now about, “Hey I can develop
software. I did it on this particular service that was online. I want to learn more about this. I want to build a mobile app now.” And so, you kind of lean
in with that freedom and that experience, and it starts with usability.
Code.org at its surface was very simple and easy in how you learn to do basic building block kind of software development, but now you want more. A lot of
times, good usability is actually abstracting away and masking the complexity that’s underlying it. Somebody has to be able to build the stuff that’s
complex, and extract a way up into the level of usability and that’s where you need systematic approaches.
That’s why the bottoms-up piece will have its limits, because you need systematic approaches. Whether it’s how you manage all this new bottoms-up
empowerment, or how you create a level of accountability and control for, “what are we going to do in the future once these things are becoming
standardized within our organization.” I think usability is a wedge into getting adoption of innovation.
Noel: That is very interesting. I hadn’t thought of that. It is almost like usability is, kind of like the enterprise used to exist in this 1.0 fashion, is now
at 2.0. I wonder if, one day, usability is going to carry an entirely new meaning. Not just being enjoyable, but delivering those results as well. Even if
it’s usable, there’s still a business goal there to deliver value to the customers that this app is essentially serving.
Matt: I’ll give you one example from one of our portfolio companies. Lots of people use these top-down things like SharePoint, and Project, to manage work. But
if they’re hard to use, and they're kind of kludgy because you’ve got to integrate different pieces together—you might go looking for something else. We’ve
got a company called SmartSheet that has tens of thousands of paying customers. It’s a very simple, bottoms-up, project management, “get stuff done”
application. It’s cloud first, it’s mobile first, it’s very broad-based in its capabilities and it’s basically replacing emails, spreadsheets, and
SharePoint in big companies. Big companies like, well, someone I shouldn’t say, but shockingly big companies in the tech world.
Noel: That is very cool. Thank you so much for sitting down with me today.
Matt: Well, my pleasure, Noel. I enjoyed having the conversation.
Noel: Definitely. Everyone, this again is Matt McIlwain who is the managing director at Madrona Venture Group and again,
that article that Matt recently wrote is titled, “In the Empowered Enterprise 2.0: Startups Have the Inside Track to Success”. Thanks
so much, again.
Matt: Thank you.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Nov. 28, 2015 08:00 PM EST Reads: 421
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Nov. 28, 2015 01:00 PM EST Reads: 476
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 28, 2015 12:00 PM EST Reads: 335
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Nov. 28, 2015 12:00 PM EST Reads: 550
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company Logz.io. In the past, he was co-founder of social-trading platform Currensee, which...
Nov. 28, 2015 12:00 PM EST Reads: 231
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
Nov. 28, 2015 11:45 AM EST Reads: 405
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Nov. 28, 2015 11:15 AM EST Reads: 414
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 28, 2015 11:00 AM EST Reads: 514
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 28, 2015 10:30 AM EST Reads: 313
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Nov. 28, 2015 10:15 AM EST Reads: 253
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Nov. 28, 2015 10:00 AM EST Reads: 399
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 28, 2015 10:00 AM EST Reads: 196
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Nov. 28, 2015 09:00 AM EST Reads: 182
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Nov. 28, 2015 08:45 AM EST Reads: 437
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Nov. 28, 2015 07:45 AM EST Reads: 209
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Nov. 28, 2015 06:00 AM EST Reads: 248
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 28, 2015 05:00 AM EST Reads: 363
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Nov. 28, 2015 04:00 AM EST Reads: 542
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Nov. 28, 2015 03:30 AM EST Reads: 475
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Nov. 28, 2015 03:00 AM EST Reads: 452