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Digital transformation,the open source wayUnite people, process, and architectureusing open source principles

Transformyour organizationBuild a better organizationwith open sourceChapter 01Understand the five elements of digital transformationChapter 02Adopt an open approachChapter 03Practice open transformationChapter 04Transform together02

Understand the five elementsof digital transformationPrevent common failures and produceorganizational benefitsDigital transformation is about creatingnew possibilities for your organizationthrough innovative products andservices, better ways of working,and nimble organization models.While organization leaders understandthat digital transformation is criticalto ongoing success, researchdemonstrates that only one in fivedecision makers surveyed rate theirtransformation strategies as effective.1Red Hat helps companies of alltypes with their digital transformationjourneys. Along the way, we’ve identifiedfive areas within an organization thatmust commit to change to affectlong-term success.Weakness in even one of these areascan reduce the value of transformation—or derail the effort entirely.When digital transformation fails,it is often because people andprocesses do not get the sameattention as technology.The five elements of digital transformation641. LeadershipEstablishes the tone.Decentralizes decision making.Creates a shared vision and strategy.Removes barriers to communication.Incorporates transformational goalsinto every employee role.of organization leadersadmit that their digitaltransformation efforts aread hoc and short-termwith disparate areasof innovation.22. Product managementTranslates the vision and strategy intoactionable tactics.Iterates to gather data that validatesmodels or provides lessons from failures.Devises hypotheses they can rapidlytest—versus creating requirements.² IDC InfoBrief, sponsored by RedHat and Intel “An Open Approach toDigital Transformation,” July 2020.¹ Harvard Business Review, sponsored by Red Hat, “Rethinking Digital Transformation:New Data Examines the Culture and Process Change Imperative in 2020,” 2020.03

3. DevelopmentRapidly implements product models using moderndevelopment tools and agile processes.Uses faster feedback cycles for validation oradditional learning.Focuses on delivering the best product capabilities.4. ArchitectureProvides a stable technical foundation suitable forboth short- and long-term objectives.Embraces open, interoperable technologies.Provides more flexible IT deployments.Balances the efficiency of standardization against theneed for customization.5. OperationsEstablishes a foundation of resilience from unreliablecomponents by adopting site reliability engineering(SRE) concepts.Seeks to eliminate toil through automation.Embraces action despite risks.Uses transparent metrics to measure results.When these elements areaddressed holistically:LeadershipCreates a safe environment where employees canexplore new ideas—and fail without retribution.Develops an organization that’s more adaptable,transparent, and collaborative.Product management and developmentWork together to establish a strategy of differentiation.Differentiate the organization's products and services.Architecture and operationsForm a strategy of efficiency.Ensure that resources are optimally used to minimizewaste and costs.04

If transformation is theprogressive accumulation ofhabits, simply understandingthe elements required for asuccessful digital transformationisn’t enough. You also need toadopt an open approach.Learn more about the five elements and how toposition your organization for success.Download the checklist05

Adoptan openapproachTransform your architecture,process, and cultureTransformation doesn’t begin and end with technology.While it’s a significant part of the journey, it’s not the onlyarea that needs attention.By taking an open approach to architecture, process, andculture, you are able to change more than your technology–you transform the way your entire organization operates.Open architecture:A catalyst for changeOpen source software starts with curiosity and the desireto solve a shared problem. Combining the ideas and skillsof a diverse talent pool, community-based, open sourceefforts result in quality solutions that evolve beyondsimple profit motives.Built on passion and shared ideas,open source software shifts thepower of technology from ITproviders to the people using it.06

Open process:Rethink how you workIn the open organization model, collaboration is key.Traditional development practices built on segmentedand monolithic team structures lack the agility requiredto achieve transformation. Modern, open practicesestablish common goals and empower teams tomove forward together.“Teaching an elephant to dance.”Learn how to transform your teams,processes, and applications.Download the executive summaryWith unified IT that’s focused on a singular purpose, yourinfrastructure, application development, and creativeteams can:Rapidly prototype with proven open source libraries.Develop passionate, productive employees.Use automation for continuous integration anddeployment.Open culture: Organizefor innovationOrganizational roles nolonger fit into easycategories such as techand nontech. Digitaldisruption impactseveryone, which meansthat all roles should beincluded in transformativeefforts. Responding totechnological changescan mean rethinkinghow you work.When organizationstake an open approachto culture, they canreact faster and moreeffectively to industrychanges—and encourageinnovation.Open organizations aremore transparent, inclusive,adaptive, collaborative,and community-focused—the same principlesthat power open sourcedevelopment communities.When you view digitaltransformation as acontinuous process—andemphasize the importanceof culture in parallel to,not at the expense of,technology and process—you’re positioning yourorganization for asuccessful transformation.07

Slovenská sporiteľňa, the largest retail bank inSlovakia, took a three-phase approach to opentransformation:³Open cultureThe bank established cross-functional agile teams that included analysts,business users, developers, and engineers.Open processThese teams worked together to optimize deployment processes andmove from quarterly to monthly releases.Open architectureThe bank focused on tools, including on-premise implementationof Red Hat OpenShift and Red Hat Ansible Automation Platform.During this phase, the bank worked with Red Hat Consulting to standardizeand automate application development and deployment processes andengaged with Red Hat Training to provide instruction on best practicesfor Red Hat OpenShift administration.Previously, communication between departmentswas poor. Now, our development and operationsteams work more closely together and focus onvaluable work. The capabilities that OpenShiftprovides in support of this new, more agileculture was a key reason for choosing it.Andrej SimkovicHead of Automation and Technology, Slovenská sporiteľňa³³ Red Hat case study, “Retail bank speeds delivery with Red Hat Ansible andOpenShift,” 2020.08

Practice opentransformationAdopt the right tools and resourcesOpen organizations cultivate peoplewho are innovative, agile, engaged, andaccountable—people prepared to helpyour organization adapt to future wavesof disruption.At Red Hat, we want to make sureyour people have the right tools andresources during transformation, so thatyour organization will benefit from theagility and security provided todayand tomorrow.Red Hat’s vision of openhybrid cloudToday’s technology is built on hybrid architectures, relyingon continuous delivery of microservices to keep up withrapidly shifting customer demands.In this fast-pacedenvironment, the abilityto align IT with businessstrategies requirestechnology solutionsthat can keep pace.Red Hat’s open hybrid cloud is an approach that enablesapplications and data to easily move across ITenvironments. Built on an open source foundation, openhybrid cloud supports:Portability and integration across heterogeneouscloud environments—private or public, physical,or virtual.Red Hat solutions help you bring IT and the organizationtogether with technology that connects teams throughautomation, hybrid cloud infrastructure, containers,application development tools, and more.With open technology, you can do more with the solutionsyou have, while transforming your organization to supportnew and innovative initiatives that can set it apart.Operational excellence through automation andmeasurement.The ability to build and manage a full IT stack thatworks on the infrastructure of your choice.09

Ignite transformation withRed Hat Open Innovation LabsRed Hat Open Innovation Labs is an immersive, residencystyle engagement where we help translate your ideas intoinnovation and transform your team into agile thinkers thatembrace continual change. Open Innovation Labs acceleratesthe delivery of innovative ideas and teaches customers howto build applications the Red Hat way. We do this by:Using community-powered innovation to deliver thelabs experience.Igniting transformational change with a portfolio ofofferings for everyone from individuals to enterpriseorganizations.Establishing a center for experiential learning.Developing open leadership and transformation at scale.Learn how to translate your ideas into innovationwith Red Hat Open Innovation Labs.Download the e-bookCustomer case studyTo improve collaboration and streamlineprocesses to help its technical teamsachieve innovative, valuable results,Meteorcomm engaged with Red HatOpen Innovation Labs.For agile to succeed, you must showpeople what they can do differently toachieve better results and give them theopportunity to practice. Open InnovationLabs encourages true agility. Red Hat’sfacilitators worked side-by-side with ourengineers daily over the course of severalmonths to show them how to be agile.Lance PittSenior Manager, Software Development, Meteorcomm4⁴ Red Hat case study, “Railway technology provider adopts agile workapproach with Red Hat Open Innovation Labs,” 2019.10

Deliver business value quickly with theOpen Practice LibraryAt Red Hat, we develop and reinforce organization agility withthe Open Practice Library. The Open Practice Library is acommunity-driven collection of processes, practices, andtools that help organizations build a culture that canincrease collaboration and accelerate change acrossthe organization, including:Event storming to align software with organization needs.Value slicing to rapidly prioritize work.Usability testing to gather real-world feedback.Retrospectives to reflect, inspect and adapt ways of working.The Open Practice Libraryis organized around the MobiusLoop, an iterative processmodel that generates acontinuous flow of innovation.DiscoveryDeliveryOptionsFoundationThe four parts of the loop are:Discovery, where teams gain an understanding ofproject needs, revisit lessons learned, and see thekey motivations behind what they are building.Delivery, where teams put ideas to the test withiterative processes designed to see which ideaswork and which do not, measure impact, and figureout what comes next.Options, where teams determine what is possible andwhat is needed to achieve desired outcomes.Foundation, where technical engineering practicesmeet collaborative activities to support your journeythrough the Mobius loop, and where Red Hat helpsturn open culture into real business results.11