the path to delivery excellence prioritize improvements based on business value 2011 1

The Path to Delivery ExcellencePrioritize improvements based on business value

2011

1

A systematic iterative approach (supported by tools and services) for measurably improve delivery efficiency aligned with business goals and objectives

2

What Is MCIF?

Understand through Improved Diagnostics.

Identify goals and objectives. Prioritize improvements to maximize return and business alignment.

Produces

Roadmap defining how and when to make what improvements

Steer through Measured Results

Monitor deployment, take corrective actions, and measure business

results

Act through Accelerated Deployments

Deploy new technologies and solutions rapidly and predictably.

Defines order of Refines

MCIF is not a one-size-fits-all recipe (must be adjusted to client context)

5 Dimensions of Delivery Efficiency

0

2

4

6

Time-to-Value

Business Value

CostQuality

Predictability

Today

3-year goal

3

5 Dimensions of Delivery Efficiency

4

Dimensions Today 3-year goal

Time-to-ValueFix pack is released every 2 month

Increase the frequency of fix pack releases to every month

Business ValueOnly 20% of banking transactions are online

Increase number of online banking transaction to 80%

CostMaintenance cost is 75% of our IT costs

Reduce maintenance cost to 65%

Quality20% defects remaining at ship date

Reduce remaining defects at ship to 10%

Predictability70% of projects are under estimated by +10%

Reduce number of under estimated project to 30%

From In Process (Team) to Business Value (Executive)

5

Metrics Category Team(In Process)

Project Manager(Project Health)

Management(Product Owner)

Executive(Business Value)

Time-to-Value / Schedule User Story Points / Use Case Points

Iteration Burndown, Blocking Work Item

Release Burndown

Cycle Time / Time to ROI

Business Value (External):Satisfaction

Product Backlog, Stakeholder Mapping

Stakeholder Feedback, # of Change Request

Tested and Delivered Requirements

Client Sat, Benefit Realization

Business Value (Internal): Revenue

Iteration Velocity

Release Velocity

Business Value VelocityRevenue, ROI, Renewal rate

Cost / Expense Effort (Man-hours)

Cost / Unit of work

Cost by Revenue, Development cost

Quality (In-process)

Technical Debt

Test Status, Test Coverage of Requirement

Quality at ShipQuality (post-ship)

Enhancement Req., Customer Defects

Age of Enhancement Request, Defect repair latency

Customer QualityPredictability User Story Points / Use Case Points

Planned/Actual Cost (CPI) and Velocity (SPI)

Cost and Schedule variance

Use Symptoms to Determine Dimension to Focus On

6

Trace Symptoms to Dimension

TTV

Bus. Value

Co

st

Quality

Pre

dicta

bility

High development cost X X

Cost overrun X X

High market pressure (high number of competitor, need to differentiate their product)

X X

Customer see little to no value in product X X

Taking long time to change the idea to product X X

Short product lifetime X X

ETC…

Deep Dive on Symptoms for Cost

• We spend <60%, 70%, 80%, ..> of budget on maintenance, and it is increasing. How can I get more money for driving innovative projects?

• I have to cut 10%, but where should I cut?

• Cost of host usage is increasing every year. How can I reduce the cost?

• We are spending at least $200K no matter how small the project. How can I reduce my overhead?

• We have a heavy waterfall process, how can we move to more streamlined approaches to development?

COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS

Reduce Application Maintenance Costs: Value Traceability Tree

7

CEO Business Objective/Value: Increase Shareholder Value/Curb Spending

CIOOperational Objective: Reduce Application Maintenance Costs

Annotate symptoms by

strategy.

VP Development

Tactic: Improve Lifecycle Collaboration with C/ALM

Strategy: Improve Team Collaboration

Tactic: Reduce infrastructure costs

Strategy: Reduce Software Delivery Costs

Tactic: Improve Developer Productivity

Tactic: Determine Application

Modernization Strategy

Strategy: Modernize Applications

Tactic: Application Transformation

Tactic: Application UI modernization

Tactic: Application Re-Platforming

Tactic: Effectively Monitor Scope

Tactic: Communicate Solution Architecture

Tactic: Increase Build & Test Automation

Tactic: Re-Architect for Reuse



8

We frequently experience scope creep (3)

Architectures are poorly understood and communicated (2)

Developers lack environments supporting local compiles and frequent builds (4)

High rework cost (4)

Average 3.25

-------------------------------------------

[Strategy: Reduce Software Delivery Cost]

Too much of budget is spent on maintenance (5)

We do not dare to touch some critical application (3)

System is overly complex (4)

We are afraid of loosing critical resources to keep some systems alive (4)

We lack a strategy for what applications are in need of what type of overhaul (5)

Low customer satisfaction (4)

High efforts to make changes the existing systemon when there is an enhancement (5)

Average 4.20

-----------------------------------------

[Strategy: Modernize Applications]

1) Present list of potential symptoms and answer score 1 to 5: 1 is not relevant to me 3 means 50% relevant to me 5 means definitely impacts my development effectiveness

Note: may consider symptoms relationship to strategy weighted.

2) Recommend the strategies where the average is higher than 3.

Recommended

Recommended

COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS 9


Tactic: Increase build & test automationDescription: Increase Build and Test automation tactic focuses on reducing manual and insufficient build and test procedure. Products: RQM, RFT, RPT, RTLM, AppScan, WF, BF

Tactic: Reduce Infrastructure CostDescription: Maximize value from host and distributed server resources when developing and deploying enterprise applications, through among others local compile. Products: RDz, RAA, RTCz, BF

Tactic: Determine application modernization strategyDescription: Consists of broad analysis and specific modernization or application transformation strategies. Supported by the “Application Health Assessment” Service Offering. Products: RAA, WSAA, RSAR, SA

Tactic: Application TransformationDescription: Re-implement business critical applications with modern architectures and tooling.Products: RME, RBD

Tactic: Effectively monitor scopeDescription: When there are functionalities removed from the agreed-upon scope, focusing on management practices to help manage stakeholder's expectation and communicate the value of the selected scope to get stakeholder agreements on the choices.Products: RTC, ReqPro, Doors

3) Tactics are proposed based on selected strategies. Tactics are ranked based on symptoms score as tactics are also directly related to symptoms.

SelectSelect

Operational Objective: Reduce Application Maintenance Costs

CIO

VP Development

Strategy: Reduce Software delivery Costs Strategy: Modernize Applications

Tactic: Re-Architect for ReuseDescription: Re-architect main applications with modern architectures to consider future reuseProducts: RSA, RAM, System Architect

Select

Select


Impact and Timing of Cost Savings Programs

Timing of Benefits Realization

Lo

ng

-te

rm I

mp

ac

t(S

avi

ng

s a

s %

of

spe

nd

)

Low (5-10%)

Long(> 12 mos.)

Short(3-6 mos.)

Medium (10-25%)

High (>25%)

Medium(6-12 mos.)

Consider Improvement Potential & Time HorizonSample Data for Large Organization Over 3 Years

Tactic: Improve test effectiveness

RQM, RFT, RPT, RTLM, AppScan, WF, BF

Tactic: Increase code testability and maintainability

RSA, RAD, Rhapsody, AppScan

Tactic: Increase stakeholder involvement

1) RRC, RTC, 2) ReqPro, Doors

Tactic: Effectively monitor scope

ReqPro, Doors, RTC

Tactic: improve project portfolioTara, FP

Tactic: Focus on (F)URPSDoors, ReqPro, ..

Tactic: Improve lifecycle collaboration through C/ALM1) RRC, RTC, RQM, 2) Tara,

BF, Insight

Tactic: Increase build & test automation

RQM, RFT, RPT, RTLM, AppScan, WF, BF

Tactic: Increase SCM automation

CC, CQ, BF, RTC

Tactic: Increase design & construction automation

RSA, RAD, Rhapsody, …

Tactic: Communicate SolutionRRC, RSA, RSM,

Rhapsody, ..

Tactic: Re-architect for Reuse

RSA, RAM, …

Tactic: Reduce Infrastructure Cost

RDz, RAA, RTCz, BF

Tactic: Determine application modernization

strategyRAA, WSAA, RSAR, SA

Tactic: Application Transformation

RME, RBD


Potential Roadmap

11

Priority Phase 1 Phase 2 Phase 3

When customer consider long-term high value over time of benefit realization

Re-architect for reuse

Product:

System Architect, RSA

Determine application modernization strategy

Product:

RAA, WSAA, RSAR, SA

Increase build & test automation

Product:

RQM, RFT, BF

When customer consider short time of benefit realization over long-term high value

Determine application modernization strategy

Product:

RAA, WSAA, RSAR, SA

Increase build & test automation

Product:

RQM, RFT, BF

Reduce Infrastructure Cost

Product:

RDz, RTCz,


Metrics – Practices Mapping

12

Dimensions Metrics

Iterative Development

Test

Driven

Development

Release Planning

Co

ntinuous

Integration

Concurrent

Testin

g

Test Management

Team

Change ma

nageme

nt

Requirement

Management

Time-to-Value / Schedule

Release Burndown X

Iteration Burndown X

Business Value

Iteration Velocity X X

Product Backlog X X X

Cost Effort (Ideal day) X

Quality Test case execution status X X X

Test coverage of requirement X

Defect trend / defect density X X X X X

Build Health / Build Status X

Enhancement Request Trend X X X

Predictability Planned cost / actual costX


BACKUP


Definitions / Examples

14

Metrics Category Term Definition / Example

Time-to-Value / Schedule

User Story/UC Points. FP Measure of MagnitudeIteration Burndown Implementation Progress During an IterationBlocking Work Item Identify the road blocks and focus on removing them Release Burndown Implementation Progress During a ReleaseCycle Time User Story Points Delivered Per Release (Normalized)

Time to Market; Time to Client ValueValue (External):Satisfaction

Product backlog Requirements that have not yet implementedStakeholder Feedback Frequency / Use of Stakeholder Feedback e.g. # of people

attend the assess iteration results meetingChange Request Trend Number of change that users request during the development

lifecycle and number of change request approved.

Customer Satisfaction Consumability Survey; Client Quality Survey; ValueBenefit Realization Based on the benefit identify in the shared vision calculate the

business value. E.g. Insurance company monitors number of process claimed volume

Value (Internal): Revenue

Iteration Velocity Completed User Story Points in an IterationRelease Velocity Completed User Story Points in a ReleaseBusiness Value Velocity Completed Value Points in a Release (Marketing)# of Renewal Licenses # of customers renew their contactRevenue Revenue; Return on Investment

Cost / Expense Effort # of Man-hoursCost / Unit of work Cost ($$ or effort) per unit of work (UC points FP, etc..)E/R or DE Expense to Revenue; Development Expense; Capacity


Definitions / Examples

15

Metrics Category

Term Definition / Example

Quality (In-Process)

Technical Debt Number of defect, Number of defects per a unit of workTest status Number of test by status (test planed, test implemented, test

attempted, blocked testes, pass tests, failed tests)Test coverage of requirements Percent of requirement with no associated test case. Number

of test cases per UC / requirementsDefect Falling Verification # of defects that fail the verification and have to re-work

Quality at Ship % of remaining defects at ship date, Defect at customer ship

Quality (After-Ship)

Enhancement request trend # of enhancement request by status over time (opened, approved, closed)

# of defects report by customer # of defects report by customer after 1 / 3 / 6 months

Age of enhancement request Average enhancement request age (may be belong to TTV)

Defect repair latency Average # of day taking to repair a critical defects

Customer Quality # of support call per month

Number of defect, defect density at after product been shipped or delivered

Predictability Estimation point Estimated effort for a work unit (user story, use case, function)

Earned Value Standard CPI or Planned / Actual Cost

Standard SPI or Planned / Actual schedule

Cost, Schedule variance % of estimation error (over or under estimate)

% of project on-budget / on-schedule

% number of project that on-budget or Total number of project that on-schedule

the path to delivery excellence prioritize improvements based on business value 2011 1

Documents

business goals

roibusiness value external

business value2011

business alignment

measure business resultsact

costmaintenance cost

on6trace symptoms

costsreduce maintenance