2017/05/17: Trace3 Evolve Conference

by Gene Kim on

#trace3

2017/05/17: Trace3 Evolve Conference

Up: Trace3 VP Marketing: Todd Gallina

  • "elite engineering" "we serve technology leaders"

Up: Tyler Beecher, CEO, Trace3

  • 28% 2 year revenue growth
  • @Scott_Vartanian: On the stage @Trace3Evolve CEO Tyler Beecher. @trace3 https://t.co/qn7Bt1cr08
  • "grew every year; even in 2007-2008; thank you to our customer advisors"
  • Beecher: "Essentialism: making the decision that answers a thousand decisions for you"
  • Beecher: "what marks our engineers elite with the new and emerging technologies; can't solve business problems with old stuff"
  • Beecher: "Evolve: McKeown (Essentialism); Steve Wozniak
  • Beecher: "200 VC briefings; partner of the year awards; next gen services and security: 10% of biz, now doubled to 20% of revenue"
  • Beecher: "131 new team members; client advisory boards of CIOs; 20 in this room"
  • Beecher: "Outlier awards: bill schlough, john chambers
  • Beecher: "a CIO: I've been so focused on doing things right that new Chief Digital Marketing Officer took a bunch of my budget/staff. I'm now back office"
  • Beecher: "We not only need to rearchitect IT, but entire busines; digital transformation; growth and comfort cannot coexist
  • Beecher: "VC briefings; research; net-gen services (envisioning); table group; (learned helplessness, sunk cost bias, people, politics); POPin
  • Beecher: "None of us are smarter than all of us"
  • Ha! On power of ideas. Beecher: "You can count the # of seeds in an apple; you can't count # of apples in a seed"
  • Beecher: "How does my son become self-reliant, find his way in the world?"
  • Beecher: "Lesson: playbooks are powerful; developing a young boy to be successful
  • Beecher: "I learned to take on things I've never done before; Rommeti"
  • Beecher: "Build one for you, your team, your company;
  • Why do you exist?
  • How should you behave?
  • What should you do?
  • How will you succeed?
  • What one thing will you do as a result of this event?
  • What's possible with technology?

Up: Paul DePodesta: Chief Strategic Officer, Cleveland Browns (perennial last ranked team in NFL)

  • Moved from Oakland A's to Mets; was made man; I'm going to self-disrupt; found new challenge: went to NFL and started all over again; started at worst team in NFL, the Cleveland Browns; made trade to get starting quarterbacks
  • 11 picks in NFL draft, traditionally 7; next year, they have 12, 5 of which are first two rounds
  • Funny. Paul PoDesta: "So many people after seeing Moneyball said to me: gosh, you don't look anything like Jonah Hill"
  • PoDesta: "scouts: 5 tools: hit, power, run, ..."
  • PoDesta: "Moved from van driver to minute taker; describing batter's swing; traded him; become most prolific offensive second baseman"
  • PoDesta: "Call it Subjective 1.0, wrong operating system;
  • PoDesta: "Nice hit? What? Just because that call worked doesn't mean it was the right call!"
  • PoDesta: "Book: Winning Decisions: process vs. outcome: good/good: deserved success' good process/bad outcome: casino fluke: might question/indict process: bad process/good outcome: tend to repeat bad process until frustration kicks in; bad/bad: poetic justice
  • PoDesta: "Oakland A's called Billy Bean, I got promoted as assistant GM"
  • PoDesta: "Cleveland had winning seasons, one of the top player payrolls; Oakland A's was opposite: lowest payroll, horrible facilities
  • PoDesta: "Billy Bean: I will never use lack of payroll as an excuse for losing
  • PoDesta: "Peter Drucker'a powerful naive question: 'if we weren't already doing it this way, how would we start?'" (Power of status quo)
  • PoDesta: "i.e., processes are put in for a reason; circumstances often change, but the processes often remain frozen in time
  • PoDesta: "A long habit of not thinking something is wrong often leads us to the incorrect conclusion that it's actually right"
  • PoDesta: "1999: ESPN, Sports Radio; too much noise; (and now in 2017, that's laughable. So much noise, whatever your beliefs, you can find data to support it
  • PoDesta: "
  • @trace3: Putting together a star team is like putting together a gourmet meal ... even when you have to shop at 7-11:… https://t.co/TcnPY2mzph
  • PoDesta: "Putting together a star team is like cooking a gourmet meal. But at Oakland As in 1990s, the only place we could afford to shop was at 7-11"
  • PoDesta: "Like stock market on CNBC: why it go up/down by 20 pts? Who knows? But we all want a narrative
  • PoDesta: "Confirmation bias, affirmation bias; never more evident during spring training during cut meetings; those cut, we talk about what they can't do; those we choose, we talk only about what they can do, usually 1 attribute, spoken very differently
  • @trace3: Putting together a star team is like putting together a gourmet meal ... even when you have to shop at 7-11:… https://t.co/TcnPY2mzph
  • PoDesta: ("what? That's not pre-pitch movement? He's stirring it up before he let's them eat!")
  • @trace3: Putting together a star team is like putting together a gourmet meal ... even when you have to shop at 7-11:… https://t.co/TcnPY2mzph
  • PoDesta: "Tejada: we had 10 year data and track record, but we got focused on what he did for a six week period; like at roulette table: posts last 6 results: most useless data ever"
  • PoDesta: "Gladwell: 3% of US men are 6'2" or taller: 30% of Fortune 500 CEOs are 6'2" or taller"
  • PoDesta: "Our job is to make decision on data with uncertainty
  • PoDesta: "Bean: I was 1st round draft book; won World Series as a major league; I've seen it all angles, but can't go into high school and tell if someone is going to be a star; if I can't do it, you probably can't do it
  • PoDesta: "Data is a bright torch in a very dark cave"
  • PoDesta: "two key takeaways: altho these were greatest players in world, huge majority were fungible; you could replace with league minimum salary; key insight
  • PoDesta: "What do we want to measure, could be predictive of future performance: what do we measure?"
  • PoDesta: "1. We knew we had to have team of diverse skills, both on/off field; no [full stack] players: too expensive/rare; but lots with above avg
  • PoDesta: "2. We had wealth of expertise: coaches/players/etc: their expertise made it into our models/algorithms; needed to be open-minded
  • PoDesta: "Needed to leap-frog other baseball teams: looked to other industries; how do they deal with industry, human capital
  • RT @trace3: Traditional stats can be inaccurate & even misleading-True for the first 100 yrs of baseball data & true elsewhere… https://t.co/hvKFUq8ziV
  • PoDesta: "Bill Parcell: for weeks, this guy is my QB: then switched QB resulting in in win: press asked "why?" He said, "I changed my mind
  • PoDesta: "Bean: were we lucky or were we good? Is it repeatable?"
  • PoDesta: "Decision diary: we wrote all the circumstances when we made decisions: pros/cons, other options, confidence levels; 5yrs after decision, when uncertainty was removed, we were terrible at remembering the factors
  • PoDesta: "Barry Zito: 5 yrs later: won Sy Young award: we thought we picked a winner; diary said it was just the best we could get
  • PoDesta: "Over next 4 years, we won more games than anyone else in baseball; more importantly, we did it at 30% of cost of #2"
  • PoDesta: "Thomas Kuhn: expr of overwheliming discontent; willingness to try anything; recourse to philosophy; proliferation of differing articulation
  • PoDesta: "Oakland As had all 4; you probably do too
  • PoDesta: "Amateur baseball: 1 major league for every 40 in draft? We became obsessed with desire to stack the odds; what if we could get 2;
  • DePodesta: "There's a time when change makes everyone uncomfortable; those are important experiences/intuition; it's all about sequencing; when do we use data? Start with data
  • DePodesta: "Scouts would turn in 900 reports; 10 seconds to pick 1 of 900; separate into bucket: 40% are good; 10%; 5%; 1%; focus only on bucket A: 8 of 16 are big leaguers; who are they? Then use skills/experience
  • DePodesta: "We're trying to give scouts a wild advantage, fishing only in richest waters
  • DePodesta: "Major league vs. champion: 1st is physical ability; 2nd requires mental makeup, work ethic
  • DePodesta: "At Cleveland, no one had winning experience; made trades to bring winners in; made palpable difference; then brought in playoff experience, and totally blew up. Big lesson for me; too many type A's who expected to win at end of season

Up: Business Transformation Panel: Chad Cardenas, President of Trace3

  • @trace3: RT @Scott_Vartanian: Next session at @Trace3Evolve with Chad Cardenas and some @trace3 customers. https://t.co/uDkb0tnBO7
  • Karen: CIO: Kwidell, medical equipment based in San Diego, make diagnostic instruments that lab techs used to prevent infectious disease
  • Jack Young, Vanicula: Dessault is a 3D modeling company; design and discover new drugs and materials, like cars and airplanes
  • Paul: Division Boeing: 50 years: engineering; biggest Dessault user in the world; major engineering; space race, military, used to work for Mark Cuban, Virgin America
  • Q: how important is it for technology leaders, at your level, to understand intimately the business of your org
  • Paul: there was a day/time when IT was gatekeepers; biz didn't understand tech; bargaining back/forth; those days are gone; technologists must be business people; push/strive and get our biz people to be technologists, at all levels of our org
  • how the biz derives value; can only push tech when it's matched up to that
  • Jack: it defines relationship between IT &* biz; you can't see the goals thru the lens of IT: only cost reduction, and cost center, which is not where you want to be; our business driver is sales & R&D; you become enabling partner
  • if you understand the business, you get invited to solve strategic problems and you start working with the CEO
  • Karen: it's one of few functions that get full overview of the biz; look at core transactions, growth drivers, R&D/sales; how do we improve can drive our entire org forward
  • Jack: sales was fighting with marketing; sales blaming marketing for not having enough of a pipeline; marketing counters: "pipeline is fine; it's sales execution that's a problem"; CEO is fed up: "I need to know who to fire; can IT help?"
  • how much pipeline is needed to convert to achieve our target; when opportunities move, management has visibility to influence outcomes before the quarter ends, where can the CEO take action?
  • 3 years ago: that was the beginning of our transformation; "emphasis of how much value we have in our data"; the impact for sales was so direct that the CEO was so happy
  • Karen: 15 yrs ago, I took a role as first global CIO for biotech company; acquired lots of orgs, but never integrated; brought in consultant who was founder of Gartner; sat down with CEO and CIO (me): you have unfounded liability on balance sheet (all the underinvestments in systems: 11 different ERP systems; failed implementations of CRM systems)
  • I built a team, strategy/plan: "big 5: put in ERP, CRM, data warehouse, PLS and eCommerce, all at same time"; it wasn't IT project, it was biz transformation; we pushed process before tech; and above all, integration
  • common data model; customer meant same thing in CRM and ERP system; for 1st time in my career, we could start with blank sheet
  • sold company to competitor for $14 billion; biggest transformation; created global supply chain
  • Paul: got reputation as turnaround specialist: tech debt, outages that became normal; usually have to fire my predecessor; at Boeing, 3 yrs, smooth operation, got bored; Hired Business Managers, embed them in the business: business savvy, good project managers; highly respected people, they became key and fundamental for those orgs; suddenly IT was at the table; was part of strategy; translated business goals to IT goals.
  • read HBR article: "Why everyone hates IT": first time, we didn't get surprised, have stuff thrown at the wall

  • Karen, Jack, Paul

Up: VP Security: Tony Allzak?

Up: George Kurtz, Author of Best-Selling Security Book, Hacking Exposed - Whatever Business you think you're in, you're in the Security Business.

All Businesses are Digital Businesses and as a result Security is top of mind at the highest levels of all organizations. A Security stance is urgent but IT leaders are unclear about the real risks surrounding IOT, Machine Learning and The Cloud. George will reveal who is targeting you and why, what do they want and most importantly how to stop them.

  • @george_kurtz: "I lucked into infosec in 1993: was at PwC, was 5th infosec person there, wrote Hacking Exposed book from that exp
  • @george_kurtz: "Corporate boards: not a lot of IT experience: finance, sales, legal; they ask: are we secure, do we have a firewall
  • @george_kurtz: "Part of your job as tech leaders is to educate senior management, or unfortunately, board members, too
  • @george_kurtz: "Previously, it was nation state vs. nation state; in last 10 yrs, it's changed to state vs. corporation (China: F-22 vs. J-10: largest IP theft)
  • @george_kurtz: "Biotech example: 5yrs to create drug; caught someone trying to sell knock-off drug: 1 place in China to manufacture: we did the investigation; extensive intrusion, exfiltration:
  • @george_kurtz: "North Korea funding sig part of missile program thru cyber-crime;
  • @george_kurtz: "Tampering with democratic process: State actor using cyber against corp, but influencing elections; validated by 17 other intel agencies
  • @george_kurtz: "It was SunOS 4.1.3. You might as well just had out the root password; if that process controller turns on, the guy drowns, that was a disaster
  • @george_kurtz: "15 yo can get stuff on open black market, and have 50x more exploit power than they had 10 yrs ago"
  • @george_kurtz: "Ransomware victims don't know how to buy bitcoins; so criminals hv helpdesk/call center/videos to guide them thru payment
  • @george_kurtz: "government implants: digital bullets; why do we look at the bullet, instead of asking who is firing it at me, and why? If you ask that, Better answers for risk
  • @george_kurtz: "verizon: 51% of breaches use malware; 49% don't use malware, using social engineering, credential theft (someon logging into your Facebook account from Russia
  • @george_kurtz: "2 game changers; cloud and ai;
  • @george_kurtz: "Siebel founded in 1993; fastest growing company 1999; 45% market share; needed army of people to run; Salesforce: only 20% market share but has market cap is $64 billion
  • @george_kurtz: "It hygiene; ngav; visiblity; threat hunting; threat intelligence
  • Congrats on all your successes, @george_kurtz! Looking forward to catching up one of these days! It's been a decade since we last talked!

Up: Hayes Drumwright, Author, Co-Founder & CEO POPin - Critical Conversations for Business Success

  • Drumwright: "Truth vs comfort"
  • Drumwright: "how can we source actions from people closest to the work, esp when it might not be safe for them to express their concerns
  • Drumwright: "Avg time for orgs to complete an employee engagement surveys: 6.5 months" (!!)
  • Drumwright: "Isn't it odd that employee engagement survey results go to HR, instead of the department leader?" (Huh!)
  • Drumwright: "If kids never hear about their parents struggling, they may think theirs something wrong w/them when they struggle"
  • Drumwright: "Then I started to wonder, as leaders of teams, are we sharing enough of our own struggles? Will they hide their problems?"
  • Drumwright: "Leaders often isolate themselves, by keeping painful things quiet (eg layoffs): sharing probs lightens load: entitlement disappears
  • Drumwright: "The model where leaders stand on stages and dictates orders has been norm for a century; yet growth & comfort can't coexist

  • TODO:

  • add slide: "what is opposite of technical debt? Achieving all the goals, dreams and aspirations of the organization that helps us win in the market place."