After watching this video, you will be able
to: Describe how disruption facing companies today
amplifies the need for DevOps. Since the year 2000, fifty-two percent of
the Fortune 500 companies are gone. Fifty-two percent! That is almost half of the Fortune 500
companies that existed in the year 2000, are now gone! What were they up against? In a word, disruption. It is not if you get disrupted, it is when
you get disrupted. Established institutions like banks might
think, “Who is going to disrupt me?” You can talk to banks about the need to deploy
fast and use continuous delivery, but they are not always responsive. Then the bank down the street comes out with
an app that can take a picture of a check and deposit it. Meanwhile, if it takes your bank six months
to get your app updated to take a picture of a check and deposit it, your bank is going
to lose a lot of customers in those six months. It is not a matter of if you get disrupted. It is a matter of when. If you talk to the customers about being disrupted,
a lot of them will say, “Oh, the technology disrupted me. I have been disrupted by technology.” But if you think about it... The technology that was available to the disruptors
is the same technology that is available to the incumbents because most of it is open
source. The disruptors just had a different business
model. The example lots of people like to give is
Uber. Uber is the big disrupter. So, let's think about what was the amazing technology
that allowed Uber to disrupt the taxi industry? Well, they had GPS, but GPS has been around
for a while. We’ve had Garmins and TomToms on our dashboards
for years, so that's nothing new. That is fairly old technology. Then there are electronic payments. Electronic payments are older than GPS—they
have been around for decades. Then there is "a smartphone in every pocket". This is pretty commonplace as well. But Uber put the three of those things together
with a new business model. Instead of waiting for a taxi to drive by
or hailing a cab, or making a phone call to a dispatcher, "what if we allowed people
to summon a driver from their smartphone? Let the driver know where they are, and then the
nearest driver comes and gets them, and they can track where they are when they will be picked up." Uber had a different business model and people
loved it. It wasn't so much the technology. It was the new business model that allowed
them to disrupt. In fact, here in New York State where I live,
the taxi industry is lobbying Albany, the state capitol, for legislation to limit Uber. The taxi industry does not need government
legislation. They need to hire some programmers and get
an app! The genie is out of the bottle. This is the way people want to do ride-sharing. You either adapt or you go extinct! Disruption is everywhere in every industry. When was the last time you used a travel agent? You do that on the web now. What about those little point-and-shoot cameras? That was a major industry, and everyone was
buying them. Now, not so much... because everyone has a
pretty good camera in their pocket on their smartphone. People used to say to me, “What's the best
camera to use for candid shots? And I would say, “The camera that you have
with you, the one in your pocket.” That’s the best camera to use. So, people don't generally need to have these
point-and-shoot cameras anymore. They got disrupted by the smartphone. Think about Blockbuster Video. Back in the 80s, we would rent videotapes,
VCRs were a big thing. And would physically go to the Blockbuster
store, and if we brought the tape back late, they would
penalize us. It was like checking in a library book late, and we accepted it! Then Netflix came around and Netflix realized
DVDs had just come out and that DVDs were a lot smaller than these big bulky tapes. They could mail them out so the first business
model for Netflix was that they would mail you a DVD and then you would have a list of
DVDs that you wanted. You wouldn't get the next DVD until you mailed
the one you had back. If you kept it for six months, that didn’t
change, they didn't give you a late fee. They didn't care if you kept it for six months. You just didn't get another one for six months. You had to send one back before you could
get another one. Then after a while, Netflix realized they
didn't need the DVDs. Everyone has broadband internet to their homes. So, Netflix began streaming movies into
the customers' homes. See the problem for Blockbuster was that they
thought they were in the video rental business. But Netflix understood they were in the entertainment
business. They were in a totally different business. They were entertaining people now, and now
they have their own shows on Netflix, produced shows by Netflix, and Blockbuster went
out of business. If you look at Garmin, they didn't do so
badly. Garmin was able to pivot. When everybody had a GPS on their phone, they
didn't need a Garmin on their dashboard anymore. But Garmin understood that they were not in the
mapping business. They realized they were in the tracking business. They started making little wrist trackers. Garmin made these trackers you use to exercise
and stuff. They pivoted and they are still around. Some businesses survive and some businesses
do not, but the message here is that technology is the enabler of innovation. It is not the driver of innovation. You must have a great business model idea
and a great model and then leverage that technology. Technology alone is not going to drive innovation. It just enables it. In this video you learned:
That technology is the enabler of innovation and the importance of having an innovative
business model.