The Doppler Quarterly Spring 2018 | Page 88

Success Measurement #2 — Time to Innovation To speak of cloud is to speak of innovation, which is why every Cloud Leader thinks about innovation. With the cloud, innovators escape the hardships of legacy thinking and become the tip of the disruption spear. They are set free to create. There is one problem — how does the Cloud Leader measure innovation? For those who live in the real world of business, we must talk about return on investment (ROI) and provide tangible evidence that innovation leads to cash. We must connect the dots of creativity with the reality of revenue and operating profit, for without optics on this key result, our fancy words and dream-stage realities will be sent to the IT scrapheap. KPIs for Speed to Innovation • T  he number of code releases your team produces per time period • T  he amount of rapid A/B test- ing per time period • S  hare of voice in marketplace related to new product releases and updates 86 | THE DOPPLER | SPRING 2018 At the heart of innovation is your client, either your target buyer or internal business unit. Understanding the client’s preferences enables you, through rapid innovation, to offer more options tailored to their needs. Best practices suggest that high frequency code releases facilitate A/B testing to determine cli- ent behaviors. Rapid A/B testing, through a strong CI/CD process, leads to code changes that drive rev- enue and improve operational profit. Therefore, a leading indicator of cloud program success should be number of software code releases per time period. Waterfall release cycles on legacy platforms are diffi- cult to manage and lack the framework for A/B test- ing. Your born-in-the-cloud competitors are free of legacy platforms and processes. They build tool chains that enable one-click code deployment, and release hundreds of software changes in the time it takes to roll out the next version of a legacy platform. Measure your code releases. It is key to innovation, and critical to revenue and profit.