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After watching this video, you will be able
to:

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Describe how disruption facing companies today
amplifies the need for DevOps.

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Since the year 2000, fifty-two percent of
the Fortune 500 companies are gone.

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Fifty-two percent!

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That is almost half of the Fortune 500
companies that existed in the year 2000,

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are now gone!

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What were they up against?

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In a word, disruption.

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It is not if you get disrupted, it is when
you get disrupted.

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Established institutions like banks might
think, “Who is going to disrupt me?”

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You can talk to banks about the need to deploy
fast and use continuous delivery, but they

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are not always responsive.

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Then the bank down the street comes out with
an app that can take a picture of a check

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and deposit it.

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Meanwhile, if it takes your bank six months
to get your app updated to take a picture

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of a check and deposit it, your bank is going
to lose a lot of customers in those six months.

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It is not a matter of if you get disrupted.

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It is a matter of when.

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If you talk to the customers about being disrupted,
a lot of them will say, “Oh, the technology

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disrupted me.

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I have been disrupted by technology.”

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But if you think about it...

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The technology that was available to the disruptors
is the same technology that is available to

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the incumbents because most of it is open
source.

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The disruptors just had a different business
model.

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The example lots of people like to give is
Uber.

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Uber is the big disrupter.

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So, let's think about what was the amazing technology
that allowed Uber to disrupt the taxi industry?

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Well, they had GPS, but GPS has been around
for a while.

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We’ve had Garmins and TomToms on our dashboards
for years, so that's nothing new.

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That is fairly old technology.

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Then there are electronic payments.

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Electronic payments are older than GPS—they
have been around for decades.

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Then there is "a smartphone in every pocket".

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This is pretty commonplace as well.

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But Uber put the three of those things together
with a new business model.

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Instead of waiting for a taxi to drive by
or hailing a cab, or making a phone call to

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a dispatcher, "what if we allowed people
to summon a driver from their smartphone?

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Let the driver know where they are, and then the
nearest driver comes and gets them, and they

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can track where they are when they will be picked up."

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Uber had a different business model and people
loved it.

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It wasn't so much the technology.

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It was the new business model that allowed
them to disrupt.

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In fact, here in New York State where I live,
the taxi industry is lobbying Albany, the

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state capitol, for legislation to limit Uber.

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The taxi industry does not need government
legislation.

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They need to hire some programmers and get
an app!

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The genie is out of the bottle.

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This is the way people want to do ride-sharing.

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You either adapt or you go extinct!

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Disruption is everywhere in every industry.

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When was the last time you used a travel agent?

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You do that on the web now.

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What about those little point-and-shoot cameras?

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That was a major industry, and everyone was
buying them.

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Now, not so much... because everyone has a
pretty good camera in their pocket on their

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smartphone.

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People used to say to me, “What's the best
camera to use for candid shots?

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And I would say, “The camera that you have
with you, the one in your pocket.”

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That’s the best camera to use.

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So, people don't generally need to have these
point-and-shoot cameras anymore.

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They got disrupted by the smartphone.

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Think about Blockbuster Video.

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Back in the 80s, we would rent videotapes,
VCRs were a big thing.

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And would physically go to the Blockbuster
store,

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and if we brought the tape back late, they would
penalize us.

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It was like checking in a library book late,

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and we accepted it!

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Then Netflix came around and Netflix realized
DVDs had just come out and that DVDs

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were a lot smaller than these big bulky tapes.

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They could mail them out so the first business
model for Netflix was that they would mail

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you a DVD and then you would have a list of
DVDs that you wanted.

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You wouldn't get the next DVD until you mailed
the one you had back.

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If you kept it for six months, that didn’t
change, they didn't give you a late fee.

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They didn't care if you kept it for six months.

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You just didn't get another one for six months.

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You had to send one back before you could
get another one.

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Then after a while, Netflix realized they
didn't need the DVDs.

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Everyone has broadband internet to their homes.

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So, Netflix began streaming movies into
the customers' homes.

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See the problem for Blockbuster was that they
thought they were in the video rental business.

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But Netflix understood they were in the entertainment
business.

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They were in a totally different business.

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They were entertaining people now, and now
they have their own shows on Netflix, produced

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shows by Netflix, and Blockbuster went
out of business.

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If you look at Garmin, they didn't do so
badly.

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Garmin was able to pivot.

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When everybody had a GPS on their phone, they
didn't need a Garmin on their dashboard anymore.

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But Garmin understood that they were not in the
mapping business.

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They realized they were in the tracking business.

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They started making little wrist trackers.

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Garmin made these trackers you use to exercise
and stuff.

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They pivoted and they are still around.

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Some businesses survive and some businesses
do not, but the message here is that technology

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is the enabler of innovation.

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It is not the driver of innovation.

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You must have a great business model idea
and a great model and then leverage that technology.

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Technology alone is not going to drive innovation.

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It just enables it.

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In this video you learned:
That technology is the enabler of innovation

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and the importance of having an innovative
business model.