Packed with real-world examples, case studies, and practical tools applied to complex domains, The Flywheel Effect is required reading to plot your future and the business you want to be. This is simply a math problem — more demand and more supply make the economical traveling-salesman type problem easier to solve. But ultimately, a team that wants to move fast has little time to stop or pencil in a two-week architectural review. We’ll describe what that is, but first to illustrate it, if you think of computers and companies… In the 1950s, having a computer was novel, and that was stage one genesis. It exists outside of the company strategy and often acts as the engine that drives transformation and success.

12 Key Tenets of the Value Flywheel Effect - IT Revolution

First, your organization needs to have a clear business goal and single-threaded leadership committed to delivering (the first phase of the Value Flywheel). Here is a quick description and cover image of book The Value Flywheel Effect: Power the Future and Accelerate Your Organization to the Modern Cloud written by David Anderson which was published in November 8, 2022. Mark and I have seen this in a whole bunch of companies we’ve been speaking to and working with over the years. The momentum of the thing kicks in your favor, hurling the flywheel forward, turn after turn … whoosh! This toolkit has worksheets that will help you to identify your strengths and weaknesses and hopefully identify what needs to be done to get the Flywheel turning.Some pushes may have been bigger than others, but any single heave—no matter how large—reflects a small fraction of the entire cumulative effect upon the flywheel.

The Value Flywheel Effect: Power the Future and Accelerate The Value Flywheel Effect: Power the Future and Accelerate

Find ways to eliminate work that doesn’t push on those core pieces (like Atlassian), or fold them into current efforts.Network effects almost always lead to or create a Flywheel Effect, but the Flywheel Effect can occur where network effects do not, as we’ve seen in the previous examples. Ways to increase visible consumption (like a stamp on a coffee cup) create a small viral advertisement, or creating a beautiful Instagram-worthy drink. Again, that’s good that we can look at that from a platform perspective and have real requirements, not just kind of wishlist requirements.

The Value Flywheel Effect - Google Books

We learned that under the right conditions, the problems of commitment, alignment, motivation, and change just melt away. Performing a Wardley Map on your value chain will help distinguish your differentiators and your enablers.This is a game of long-term compounding where every contribution to the momentum makes the next step easier, and effort pays off for years afterward. Engineering excellence, enabling constraints, and engineering performance, in general, are thought about by companies.

THE VALUE FLYWHEEL EFFECT - IT Revolution PRAISE FOR THE VALUE FLYWHEEL EFFECT - IT Revolution

Embracing engineering excellence… Take pride in your engineer, and build things when you have to and don’t when you don’t. I admit, I was not completely sure what I was talking about when I chose “Flywheel Effects” as a topic. Tesla also recognized that three underlying components would need to evolve to deliver on their idea: the battery, the car software, and the motor. Every time they have a player drafted or win a championship, it becomes a more desirable school for the next round of players, and on it goes.

Do companies understand that they need a problem-prevention culture in their engineering and product areas?