# Brownfield factories keep the promises you already made

Source: https://www.youtube.com/watch?v=y9JtCCZP2MQ

Machine-generated transcript; recognition errors remain. Source-recording timestamps. Boundary-crossing subtitle ends are clipped to this session.

[06:34:30](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23670s) All right, my name is Justin McCarthy.

[06:34:33](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23673s) I'm the founder and CEO at Diffusion,

[06:34:36](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23676s) and we are diffusing the capabilities of the model into the global economy.

[06:34:41](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23681s) It's a big place out there.

[06:34:43](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23683s) There's $100 trillion of it.

[06:34:44](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23684s) There's 8 billion of us, so there's a lot to do.

[06:34:47](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23687s) And that's what we're doing.

[06:34:48](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23688s) And one way we're doing it is by building software factories.

[06:34:52](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23692s) This talk actually, you know, I guess it's got the factory thing in the name.

[06:34:57](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23697s) It's not going to be super technical.

[06:34:58](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23698s) There's a QR code at the end that is going to have some technical stuff for you.

[06:35:02](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23702s) So I would encourage you to pick up or have your agents pick things up.

[06:35:06](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23706s) I'm sending a lot of dual channel messages these days where I say the human stuff up here

[06:35:10](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23710s) and then I attach something for the agent down there.

[06:35:12](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23712s) So that's kind of this presentation.

[06:35:14](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23714s) I'm going to say human things to you and then your agents are going to pick up the agent channel stuff at the end.

[06:35:19](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23719s) okay so so this started for me in July of last year we were on the Claude four series of models

[06:35:27](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23727s) and you know I had the privilege of being able to dive very very deep and really ask what happens

[06:35:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23734s) when you begin looping these things so that was the story of the beginning of the software factory

[06:35:41](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23741s) that I built together with the team and I'll say that you know even on the four series of models

[06:35:46](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23746s) even as we were awaiting GPT-5 and the initial codex harness,

[06:35:51](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23751s) even then we could see glimmers that this thing was going to work,

[06:35:55](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23755s) but at tremendous token expense

[06:35:57](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23757s) and only in the presence of a real Rube Goldberg contraption.

[06:36:01](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23761s) So only when the loops were very duct taped together

[06:36:05](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23765s) and very sort of handcrafted

[06:36:08](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23768s) would you be able to see these glimmers of some kind of an output

[06:36:12](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23772s) that would stabilize the input,

[06:36:14](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23774s) that would lead to the kinds of reliability that we would ultimately want.

[06:36:19](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23779s) So I'll just say that feeling, if you judge from the number of software factory talks

[06:36:24](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23784s) that have been present here at the conference,

[06:36:26](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23786s) that feeling I think is what we know now as software factories,

[06:36:29](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23789s) and it's sort of accepted in the zeitgeist that at least some part of this

[06:36:33](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23793s) just kind of happens now,

[06:36:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23794s) and it requires substantially less of our creativity and input to achieve.

[06:36:40](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23800s) So that's, of course, the time for me to say,

[06:36:42](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23802s) please stop building software factories.

[06:36:44](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23804s) Right. So so I and I'm, you know, obviously, you know, a little bit tongue in cheek here, but but also serious.

[06:36:53](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23813s) I think you really should stop subjecting your ideas and your ambitions and your goals to a factory process, you know, because most of the time we don't know what we want, or at least a lot of the time we're creating something new.

[06:37:09](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23829s) we don't yet know what we want. And if we're trying to industrialize something where we don't

[06:37:14](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23834s) know what we want, we're certainly, we're not going to get the right thing or we're going to

[06:37:18](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23838s) take too long or we're going to spend too much. We're going to have all, it's going to be sad in

[06:37:22](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23842s) multiple ways. Okay. So what I would say is let's begin to use some discernment about whether we're

[06:37:29](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23849s) discovering product market fit, we're breaking new ground, we're conquering new territory,

[06:37:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23854s) or whether we are doing something that, you know, already has a precedent and is already working, okay?

[06:37:40](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23860s) And that discernment about sort of what way, what mode we're working in, you know, I find it really helpful

[06:37:48](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23868s) because the great thing about a brownfield factory is it's something that we're already being paid for.

[06:37:54](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23874s) It's something where customers are saying with their dollars and their utilization, like, yeah, this works for me.

[06:38:00](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23880s) I like it. I want more of this, okay?

[06:38:01](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23881s) It's the existing things that keeping lights on, paying the bills, keeping customers happy.

[06:38:07](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23887s) And you don't need to discover anything about it because everything you need to know to loop the stability of that system is just built into the runtime.

[06:38:16](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23896s) So everything that's happening, all the ways your customers are using it, everything they're saying about it, maybe even the support tickets,

[06:38:22](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23902s) those are reinforcing the integrity and the vitality and the utility of whatever you've got in that brownfield.

[06:38:29](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23909s) Okay, and then of course we're gonna talk about this but

[06:38:33](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23913s) Another exciting thing as we heard from many of our other speakers

[06:38:37](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23917s) You know Jared just talked all about rewriting bun and cloud code

[06:38:43](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23923s) You can rewrite a lot of that brownfield of course

[06:38:45](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23925s) Okay, so this becomes all of that technical debt all those sort of boat anchors that are slowing us down historically

[06:38:52](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23932s) All that, you know impossibly long backlog

[06:38:55](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23935s) We can see those drying up now

[06:38:56](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23936s) and we don't have to spend much energy asking what the customer wants because

[06:39:01](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23941s) the customer is arriving every day and they're saying what I'm using is what I

[06:39:05](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23945s) want.

[06:39:12](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23952s) Okay so we know what to build, we build the existing thing and a couple

[06:39:21](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23961s) of notes about just ways of thinking about working with your brownfield and

[06:39:26](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23966s) cleaning it up and making it self-sustaining. At Diffusion, we use the word promise to represent

[06:39:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23974s) some guarantee, some aspect, some priority, and some dimension within the product that we value.

[06:39:41](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23981s) Feature is a promise. The cost and price of a thing is a promise. The security of a thing is

[06:39:48](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23988s) promise and it's rare that you want to revert and regress on your promises.

[06:39:53](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23993s) Okay so if you can start talking about the ways that we have expectations that

[06:39:59](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=23999s) are

[06:40:00](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24000s) against an existing product, you can begin to encode those in loops.

[06:40:05](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24005s) And a loop, just like any of the factory schemes we've been discussing, whether represented in a YAML file or some Python or graph, a loop has the characteristic of somehow taking an input and an output and then somehow feeding it back.

[06:40:21](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24021s) Okay, as many of you know, this is the sort of idealized block diagram of an amplifier.

[06:40:26](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24026s) And if you cut that feedback leg, you're just going to amplify noise. Okay, and I think we all have this feeling now that we've been working with software factories and working with loops.

[06:40:36](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24036s) There has to be some way of feeding back that fidelity into the input of the system. But if you do it and you tune it right,

[06:40:45](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24045s) it can work, right? So this is what we should strive for, especially in a brownfield. We're

[06:40:51](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24051s) getting all the signal we need to cure, stabilize, and improve those loops.

[06:40:58](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24058s) The next attribute of a brownfield factory is, you know, it really should be continuous.

[06:41:05](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24065s) If you look at the history and the before times of when commits would arrive,

[06:41:10](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24070s) there's some seasonality to those commits. There would be a daily and hourly seasonality,

[06:41:14](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24074s) there'd be a weekly cycle, and you would see those commits come in at intervals.

[06:41:20](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24080s) It can happen continuously now. When your loops are being maintained by your agents in a factory,

[06:41:26](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24086s) I don't know, like it might look like a straight line. Just a solid list of activity that's

[06:41:32](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24092s) happening 24-7 because there's always something to worry about. Is it a little bit slow? Is a

[06:41:38](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24098s) a little bit, whatever, all those worries apply around the clock.

[06:41:42](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24102s) And if you're building your brownfield factory the right way,

[06:41:45](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24105s) it should be compatible with continuous intelligence,

[06:41:49](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24109s) continuous application of this question, and it should just run.

[06:41:54](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24114s) So you've got an existing code estate, you've got an existing set of promises,

[06:41:59](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24119s) just make it continuous, make it loop, and make it keep those promises.

[06:42:03](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24123s) So another way to summarize that is, my brownfield factory

[06:42:07](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24127s) on an existing set of promises.

[06:42:09](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24129s) It should just be continuous.

[06:42:11](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24131s) It should be background

[06:42:12](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24132s) and should be keeping those promises for me.

[06:42:15](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24135s) Okay?

[06:42:16](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24136s) So I'm a strong advocate

[06:42:18](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24138s) of building a system like this.

[06:42:21](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24141s) And it's going to give you

[06:42:23](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24143s) the freedom and the creativity

[06:42:25](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24145s) to begin asking

[06:42:26](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24146s) what you should be doing in the green field.

[06:42:28](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24148s) You know, probably not with the same level

[06:42:30](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24150s) of looping rigor,

[06:42:31](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24151s) probably with more true product market fit

[06:42:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24154s) and discovery sort of energy.

[06:42:35](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24155s) Okay?

[06:42:36](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24156s) All right.

[06:42:37](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24157s) One other really fascinating property, this is certainly something that I've experienced over the last year.

[06:42:43](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24163s) I mentioned earlier, you know, a year ago it would work, but there was a lot of componentry.

[06:42:49](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24169s) Getting it to work was still very much engineering.

[06:42:52](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24172s) As we heard from some others, from Zach and from Potato, these systems are getting a little bit easier,

[06:42:58](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24178s) and a lot of credit goes to the model itself, as well as the harnesses.

[06:43:02](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24182s) But one thing you can expect from your factory is that it is going to simplify over time.

[06:43:11](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24191s) Okay?

[06:43:11](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24191s) This is something that we've seen in our skills.

[06:43:14](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24194s) The skills are getting shorter, of course.

[06:43:15](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24195s) The harnesses are getting more general, of course.

[06:43:18](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24198s) And a lot of this, again, is credit to the models themselves.

[06:43:22](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24202s) I'll note that there's a famous AI company that also makes these widgets.

[06:43:28](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24208s) And this is kind of a famous progression.

[06:43:31](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24211s) So the Raptor 1 engine from that AI company was really fiddly, but it worked.

[06:43:36](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24216s) Okay, it looked like this. There were a lot of tubes, but it definitely propelled

[06:43:42](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24222s) the rocket. Okay, in that same package, right, that same approximate external

[06:43:47](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24227s) dimension, the second version had higher performance and fewer moving parts. Okay,

[06:43:52](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24232s) the Delta between this one and this one was a tremendous application of

[06:43:57](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24237s) intelligence, okay, like literal rocket scientists and engineers, focusing on how can we make this

[06:44:02](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24242s) thing simpler, okay. You know, that's hard. It's hard to get those people, and it's hard to

[06:44:07](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24247s) concentrate them on a difficult problem. We have tremendous allies in this simplification,

[06:44:12](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24252s) of course, because we have Astra and Fable and Carbon, right, and so they are trying to take our

[06:44:18](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24258s) factory from version one to two to three, so that by the time, you know, we come back, we come back

[06:44:24](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24264s) and start our jobs on Monday or whatever,

[06:44:26](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24266s) maybe we have a much simpler factory

[06:44:29](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24269s) than when we started, right?

[06:44:30](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24270s) Or we wait one more model version

[06:44:32](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24272s) and our factory has fewer moving parts

[06:44:35](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24275s) yet twice the performance, okay?

[06:44:38](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24278s) So this is a really interesting feature of this moment

[06:44:40](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24280s) that hasn't existed before.

[06:44:41](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24281s) So if you can just barely get the thing to work,

[06:44:45](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24285s) you can expect a smoother, laminar flow,

[06:44:50](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24290s) higher performance soon, okay?

[06:44:52](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24292s) without much of your creative contribution in between.

[06:44:58](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24298s) Okay, so let's make a brownfield factory.

[06:45:02](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24302s) A great instruction to give that factory

[06:45:05](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24305s) is the same but faster.

[06:45:09](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24309s) I've been in very few meetings

[06:45:10](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24310s) where someone debated, you know,

[06:45:13](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24313s) increasing the performance of a system, right?

[06:45:15](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24315s) As long as you are at some sort of a Pareto equilibrium

[06:45:20](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24320s) where you're not trading faster for cheaper or trading safer for faster, okay, then this is just good, okay?

[06:45:28](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24328s) So it should be faster, it should be cheaper, it should be safer.

[06:45:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24334s) Note that sometimes we include better in this mix, and better may be difficult to achieve in a brownfield factory.

[06:45:40](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24340s) Better may involve more of your intent, better may involve more of your judgment and taste.

[06:45:45](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24345s) So maybe that's where you go into discovery and use different techniques.

[06:45:48](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24348s) but gosh, faster, cheaper, safer,

[06:45:50](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24350s) especially on the other side of the vulnpocalypse.

[06:45:52](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24352s) Sorry, other side, still at the beginning

[06:45:53](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24353s) of the vulnpocalypse.

[06:45:54](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24354s) Like we definitely need these things

[06:45:56](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24356s) to just autonomously get safer, right?

[06:45:58](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24358s) Okay, so you should have that.

[06:46:01](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24361s) Okay, so I think everyone should have

[06:46:04](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24364s) the brownfield factory.

[06:46:05](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24365s) You should have it for your existing commitments.

[06:46:07](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24367s) You should have it.

[06:46:07](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24367s) It should become better, faster, and cheaper over time.

[06:46:10](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24370s) I find that this takes like a week.

[06:46:12](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24372s) So if you haven't spent that week yet, just do it.

[06:46:15](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24375s) Just like whenever you get home,

[06:46:16](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24376s) like go, go, spend a week.

[06:46:18](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24378s) say you're on vacation next week and just stand up your brownfield factory on all your existing

[06:46:23](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24383s) commitments. If you don't have a way to do that or you feel like you need help, you can always

[06:46:27](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24387s) reach out to me and we're standing by to help. So brownfield factories, you should do them, but also

[06:46:33](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24393s) too easy. Okay. Like, come on, too easy. Okay. You need to elevate your ambition as well. Okay.

[06:46:42](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24402s) So in my remaining couple minutes here, we're going to talk about how to elevate our ambition.

[06:46:48](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24408s) Okay, so one of the things that I think we are all struggling with at this moment is, gosh, there's a lot of code coming out.

[06:46:55](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24415s) Even worse, it's working.

[06:46:57](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24417s) That's a lot of stuff.

[06:47:00](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24420s) It's maybe too much stuff.

[06:47:02](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24422s) We maybe have a glut of stuff.

[06:47:05](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24425s) And it could be the case that our customers didn't want all this software.

[06:47:09](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24429s) They actually weren't asking for software.

[06:47:12](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24432s) They were asking for more gross margin.

[06:47:13](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24433s) They were asking for more customers.

[06:47:15](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24435s) They were asking for more brand differentiation.

[06:47:17](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24437s) Okay?

[06:47:18](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24438s) And just shipping them more windows to click on and buttons to click on, that's not doing it for them anymore.

[06:47:25](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24445s) Okay?

[06:47:26](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24446s) And this is where all of us are beginning to see the emergence of our new job.

[06:47:33](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24453s) Okay?

[06:47:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24454s) We can communicate with the models quite well.

[06:47:36](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24456s) That's why you're here.

[06:47:37](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24457s) Right?

[06:47:38](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24458s) There are other people in your firms who are not as fluent in communicating with these things.

[06:47:43](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24463s) Okay?

[06:47:44](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24464s) So that means, like, we have a new job now.

[06:47:48](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24468s) we have to figure out how to build a demand factory because our brownfield factory can't

[06:47:55](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24475s) build the moat, right? All it can do is keep our existing promises running well. That's great

[06:48:00](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24480s) because it allows us to focus on sort of outside the building and look toward the market and look

[06:48:04](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24484s) toward the future. But gosh, we need to start working on the demand factory, okay? I don't

[06:48:11](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24491s) know what a demand factory is, but it probably looks something like this. It probably looks like

[06:48:18](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24498s) the thing that we need so that when we boost performance in the back end here in the software

[06:48:22](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24502s) factory, we don't end up spilling software all over the floor. And we rate match the demand

[06:48:27](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24507s) systems to our production systems, okay? But there's a lot of discovery that needs to go into

[06:48:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24514s) the demand factory. This is a new idea, okay? But I think you are absolutely the ones who can begin

[06:48:40](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24520s) pushing your organizations to ask these questions.

[06:48:43](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24523s) Don't wait for sales and marketing to come to you on this question.

[06:48:47](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24527s) You can see that within the envelope of your brand,

[06:48:52](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24532s) there's something more you can ship,

[06:48:54](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24534s) but you're going to need to explain that to the world,

[06:48:56](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24536s) and you're going to need to explain it using new words and new inventory

[06:48:58](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24538s) and new product lines and so forth.

[06:49:01](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24541s) I think your demand factory helps you ask better questions of your market

[06:49:06](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24546s) because the agents can help prioritize what to ask next.

[06:49:10](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24550s) I think it can help with better listening

[06:49:11](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24551s) because the agents can synthesize the answers

[06:49:14](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24554s) you get back from those questions

[06:49:15](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24555s) and can help you re-rank,

[06:49:17](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24557s) and they can help you re-rank overnight,

[06:49:18](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24558s) and they can compare it to everything else you've heard.

[06:49:21](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24561s) And therefore, I think they can schedule better experiments.

[06:49:23](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24563s) How do we get the price elasticity of demand

[06:49:25](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24565s) on this particular offering?

[06:49:26](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24566s) You have a finite amount of experimental bandwidth.

[06:49:29](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24569s) How do you allocate it?

[06:49:30](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24570s) The models are going to help you with that.

[06:49:31](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24571s) I think this could lead to lower latency responses

[06:49:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24574s) where we are saying yes, faster,

[06:49:36](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24576s) okay and customers begin uncensoring themselves and they start asking for

[06:49:40](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24580s) more that would be great I think like weirdly you know even though our

[06:49:45](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24585s) competitors have the same models there's some version of some new equilibrium

[06:49:49](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24589s) where we're all doing game theory optimal competition and yet still if we

[06:49:53](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24593s) start first there'll be some edge okay so get started now and then figure out

[06:49:59](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24599s) what is the maximum

[06:50:00](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24600s) extent of what I can possibly promise to the market. And that's my brand envelope. And let's fill it up. And just quick digression on brand envelope. Let's say we're Spindrift. We're selling some awesome sparkling water with a little fruit juice. I propose, hey, you know what, let's throw some caffeine in there. Like, maybe that gets by the committee. Like, maybe we ship that. And then the next week I come in and I say, like, and motor oil. Okay?

[06:50:24](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24624s) You know, that's going to get shut down.

[06:50:26](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24626s) But energy drink, that's a good expansion of our brand envelope.

[06:50:29](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24629s) For every one of your companies, you have the same thing.

[06:50:31](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24631s) Maybe you can't sell motor oil, but maybe you can sell an energy drink.

[06:50:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24634s) So figure out what your energy drink is and start selling it now.

[06:50:38](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24638s) Okay?

[06:50:39](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24639s) So let's build your demand factory.

[06:50:42](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24642s) It's going to have a high volume of high-quality signal coming in from customers,

[06:50:46](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24646s) coming in from the market, coming in from any place where you can measure demand.

[06:50:50](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24650s) Okay?

[06:50:51](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24651s) And it's going to have a high volume of flow.

[06:50:55](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24655s) But in order for that flow to not overwhelm change management, desire, it can't blow out the needs of your customer.

[06:51:03](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24663s) So therefore, you need to have more customers.

[06:51:06](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24666s) You in fact need to have more of everything, but you need to have more wallet within those customers.

[06:51:11](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24671s) To get more share of wallet within those customers, you're going to have to sell more SKUs.

[06:51:16](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24676s) In addition to more SKUs, you're going to have to organize them into coherent product lines.

[06:51:19](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24679s) You're going to have more product lines.

[06:51:21](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24681s) Okay.

[06:51:22](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24682s) And once you've maxed out all of that, you're going to need to just acquire your competitor.

[06:51:26](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24686s) Okay.

[06:51:27](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24687s) And if you get started now, you're going to be the one doing the acquiring.

[06:51:34](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24694s) Okay.

[06:51:35](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24695s) So, uh, so this is it.

[06:51:37](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24697s) This is Brownfield factories.

[06:51:38](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24698s) I think you can build your Brownfield factory.

[06:51:41](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24701s) I think you can absolutely build your demand factory beginning now.

[06:51:44](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24704s) Uh, I also obviously think you can reboot your product management and reboot, and you

[06:51:48](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24708s) you could wake up your executive team.

[06:51:50](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24710s) And we are standing by at Diffusion,

[06:51:52](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24712s) so we do have some technical resources attached there

[06:51:55](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24715s) on some brownfield techniques that I really like.

[06:51:58](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24718s) And yeah, I look forward to connecting with many of you.

[06:52:01](https://www.youtube.com/watch?v=y9JtCCZP2MQ&t=24721s) Okay, take care, thanks.