Looking at the Big IT Picture: Context Counts

Transcription

1 IBM Software Group Looking at the Big IT Picture: Context Counts Scott W. Ambler Chief Methodologist for Agile and Lean, IBM Rational 2 Agenda Setting the stage 2 Lessons from the EUP 3 Some industry data 4 Some strategies 5 Parting thoughts 2

2 3 Agenda Setting the stage 2 Lessons from the EUP 3 Some industry data 4 Some strategies 5 Parting thoughts CIO Priorities* continue to reflect hard choices. Business productivity and cost reduction. 2. IT and business alignment. 3. Business agility and speed to market. 4. Business process reengineering 5. IT cost reduction. 6. IT reliability and efficiency 7. IT strategic planning 8. Revenue-generating IT innovations 9. Security and privacy concerns 0.CIO leadership role We need to balance future innovation with current impact and drive the conversation around ROI *Source: The Society for Information Management (SIM) 4 2

3 We need to innovate with less Enable Innovation & Change Average Lifetime of S&P Top Companies Increased competitive & economic pressures to deliver differentiation and move quickly Rising Cost of Operations Inability to Innovate 928'38 '48 '58 68 '78 '88 '98 '08 '8 What the business wants to do! Lower Cost & Risk Globalization and regulatory oversight driving improved efficiencies, security & compliance management What the business must do! Operational & maintenance costs continue to grow The cost of failed projects & rework compounds the problem Budgets are shrinking at a time when investment is needed in strategic business assets 5 Challenges with software engineering (from semat.org) Software engineering is gravely hampered today by immature practices. Specific problems include: The prevalence of fads more typical of fashion industry than of an engineering discipline. The lack of a sound, widely accepted theoretical basis. The huge number of methods and method variants, with differences little understood and artificially magnified. The lack of credible experimental evaluation and validation. The split between industry practice and academic research. 6 3

4 IT A tale of two Departments Typical IT Life Cycle Conflicting Incentives Speed of Delivery Stability Unstructured Communication Ineffective Coordination Insufficient Collaboration 7 IT A tale of two Departments Separate Process Control Frameworks Software Development CMMi SEI SDLC Agile Agile Alliance Functional ISO 9000 CobiT Operations ITIL OGC, UK MOF Microsoft ISO Six Sigma Operational accentuate Enterprise IT Integration Challenges 8 4

5 IT Process Context Framework Lifecycle Scope Paradigm Discipline Partial IT Ad-hoc Lean Under 0 developers Team size 000 s of developers Geographical distribution Co-located Global Organization distribution (outsourcing, partnerships) Collaborative Technical complexity Homogenous Contractual Heterogeneous, legacy Organizational complexity Compliance requirement Low risk Domain Complexity Straight -forward Critical, audited Intricate, emerging Enterprise discipline Flexible Rigid Project focus Enterprise focus 9 0 Agenda Setting the stage 2 Lessons from the EUP 3 Some industry data 4 Some strategies 5 Parting thoughts 0 5

6 Lifecycle Scope Lean advises you to optimize the whole, but how do you define whole? Identification Inception Construction Transition Production Retirement Enterprise Disciplines: Portfolio Mgmt, Reuse, Enterprise Architecture Business Lifecycle Industry Lifecycle The norm in this industry is to sub-optimize around process silos. Building the Enterprise Unified Process (EUP) Lifecycle 2 6

7 The EUP Lifecycle: Final 3 4 Agenda Setting the stage 2 Lessons from the EUP 3 Some industry data 4 Some strategies 5 Parting thoughts 4 7

8 The Surveys All survey data, original questions, and summary slide decks can be downloaded from If you can t look at the original questions and analyze the data yourself, how can you trust the survey results? Some surveys were done via Dr. Dobb s Journal (DDJ), a community with a wide range of readers, not just Agilists Some surveys, the Ambysoft ones, focused on just the agile community The source survey(s) are indicated on each slide 5 What best describes the current state of your EA program? 34% 30% No, but we re thinking about starting an EA program No, but I've experienced EA in other organizations No EA Program 0% 9% 7% Yes, an EA program is in place Yes, we're expanding it Enterprise architecture isn t as widespread as we would hope. What are YOU going to do about that? Source: Dr Dobb s January 200 State of the IT Union Survey 6 8

9 For existing Enterprise Architecture (EA) programs, what were the importance of success factors/strategies? (Rating between -0 and +0). Active involvement of business leaders (5.8) 2. Active involvement of IT leaders (5.7) 3. Enterprise architects are active participants on project teams (5.5) 4. Enterprise architects are trusted advisors of the business (5.5) 5. Flexible enterprise architects (5.) 6. Having a business case for EA efforts (4.5) 7. Continuous improvement/evolution of EA artifacts (4.5) 8. Architecture reviews (4.) 9. Appropriate governance (4.) 0. Cost reduction (3.5). Master data management (MDM) (2.8) People issues appear to be the primary drivers of success Source: Dr Dobb s January 200 State of the IT Union Survey 7 For cancelled Enterprise Architecture (EA) programs, why was it ended? (Rating between -0 and +0). Insufficient time provided (3.3) 2. Project teams didn't take advantage of the EA (3.2) 3. Too difficult to measure benefits (2.5) 4. Enterprise architects perceived as "ivory tower" (2.5) 5. Development teams couldn't wait for enterprise architects (2.5) 6. No perceived benefit of EA program (2.0) 7. No executive endorsement (.7) 8. Enterprise architects weren't sufficiently flexible (.5) 9. Enterprise architects perceived as impediment to success (.5) 0. Insufficient funding (.5). EA perceived as not viable (0.0) 2. Cancelled due to political issues (-0.6) 3. EA program successful but terminated (-.9) EA failure is often due to overpromising and under-delivering or to people issues Source: Dr Dobb s January 200 State of the IT Union Survey 8 9

10 Defining Project Success Time/Schedule 54% prefer to deliver on time according to the schedule 44% prefer to deliver when the system is ready to be shipped Cost 35% prefer to deliver within budget 60% prefer to provide good return on investment (ROI) Functionality The definition of success 4% prefer to build the system to specification is often different than 85% prefer to meet the actual needs of stakeholders what we ve been led to Quality believe 40% prefer to deliver on time and on budget 57% prefer to deliver high-quality, easy-to-maintain systems Only 0% of respondents indicated that their definition of success on their most recent project included all three of delivering according to schedule, within budget, and to the specification. None of the business stakeholders who responded to the survey defined success in this way. Source: Dr Dobb s 200 Project Success Survey 9 Project Success Rates Iterative Agile Ad-Hoc Traditional 0% 20% 40% 60% 80% 00% Successful Challenged Failed Note: Accurate to within +/-7% Source: DDJ 200 Project Success Survey 20 0

11 2 Agenda Setting the stage 2 Lessons from the EUP 3 Some industry data 4 Some strategies 5 Parting thoughts 2 Manage IT like a Business Increased Visibility Four steps to success Build a holistic view Balance current needs and long-term demand Understand the business risk of change Execute and govern your portfolio IT Planning and Transformation Analysis and Optimization Business and IT Alignment Significant efficiency gains through visibility in decision making Savings in the investment budget through better management of transformational projects Improvement in the operations budget by better aligning applications with business demand Enterprise Decision Support Business Driven Innovation 22

12 IT Strategy Must Reflect Your Corporate Strategy 23 Invest across the spectrum of improvement to manage risks and optimize business outcomes Business Value Efficiency ECONOMIC IMPACTS Improve Automation Cost to Implement: <5% Very predictable Productivity: 5-25% Timeframe = Days Improve Collaboration Cost to Implement: 5%-0% Predictable Productivity: 5-35% Timeframe = Weeks Improve Process Cost to Implement: 0%-35% Some culture change Productivity: 25-00% Timeframe = Months Increase Flexibility & Investment Value Cost to Implement: 25%-50% Much culture change Productivity: % Timeframe = Years Control Implementation costs are per person per year Individual Team Organization Business Focusing on business outcomes offers the greatest return on investment Source: IBM Rational 24 2

13 Manage Your Complete Portfolio Project Portfolios are the proposed, and in-flight capabilities that will drive new business value Service portfolios are a consolidated view of the functional and shared business capabilities that the organization uses to operate Application Portfolios captures and organizes information about the application portfolio so that business and IT executives can make prudent decisions around investing/replacing/retiring applications Enterprise portfolios encompass applications, services & projects, and bring organizational, market & product decisions into focus for strategic alignment Enterprise architecture is a dynamic map of the organization Connecting business and IT in one view Project Portfolio Service Portfolio Application Portfolio Enterprise Portfolio Enterprise Architecture 25 Understand your critical applications How do your key applications create business value? Do your applications support your operational processes? What applications are overconsuming scarce resources and investment capital? Where are you over-investing in outdated or aging applications that need to be modernized, replaced or retired? Are your overall applications costs increasing, decreasing or stabilizing? Which critical applications are currently at risk? for every $ of discretionary spending (i.e., new projects and major enhancements), up to $5 is spent on support, maintenance and infrastructure during the life of an application Gartner Group

14 Modernize Existing Solutions Clients have significant investments in legacy applications These application run the business, took years to develop, and are stuck in their current environment Language vendors (such as Software AG) are significantly increasing maintenance fees Enterprises need to: Reduce software licensing and runtime costs Increase platform deployment flexibility Modernize their user interfaces Leverage existing business developers Eliminate unsupported development tools and skill silos Consolidate development tools/processes Increase responsiveness and time to market.. IT investments made 0 to 20 years ago are constraining the speed with which these businesses can change and respond to industry threats. Modernization is the # concern because companies are spending 78% of their IT budgets on maintenance of existing infrastructure. They MUST modernize so they can free up a larger % of their IT budgets to manage change Integrate Disparate Lifecycles Enterprise Architecture TOGAF Architecture Development Cycle Requirements Engineering Waterfall Development Teams Agile Development Teams ITIL Service Lifecycle 28 4

15 Adopt a Robust IT Service Management (ITSM) Strategy Phase Phase 2 Phase 3 Phase 4 Phase 5 ITSM Phase 5 ITSM Stabilization Stabilization Initiatives Phase Phase 2 Phase 3 Phase 4 Initiatives Governance & Ownership Governance & Ownership Establish Governance Model Governance Model in use for Governance Model in use for Governance Model in use for Governance Model in use for Establishment of ITSM Governance Model and Establish Governance Model Governance Model in use for Governance Model in use for Governance Model in use for Governance Model in use for Establishment of ITSM Governance Model and & Process Ownership Phase 2 Phase 3 Phase 4 Phase 5 process ownership. & Process Ownership Phase 2 Phase 3 Phase 4 Phase 5 process ownership. Services Strategy Services Strategy Services Strategy Implement Initial IT Services Implement Next Phase of Implement Next Phase of Implement Next Phase of The strategy should drive all other ITSM process Services Strategy Implement Initial IT Services Implement Next Phase of Implement Next Phase of Implement Next Phase of The strategy should drive all other ITSM process Development & Planning Strategy Services Strategy Services Strategy Services Strategy improvement efforts. Development & Planning Strategy Services Strategy Services Strategy Services Strategy improvement efforts. Process Alignment* Process Alignment* HD for Process, HD for Process, DD for Process, Establish ITIL V3 aligned IT Service Management DD for 4 Processes, DD for Process, SB for Process, Establish ITIL V3 aligned IT Service Management HD for 4 Processes, DD for 4 Processes, SB for Process, SB for Process, operational processes (5). Consider using IBM Process HD for 4 Processes, SB for 3 Processes, SB for Process, Pilot for Process Deploy Process operational processes (5). Consider using IBM Process DD for 3 Processes SB for 3 Processes, Pilot for 2 Processes Pilot for Process Deploy Process Reference Model for IT (PRM-IT) with ITUP Composer, DD for 3 Processes Pilot for 3 Processes Pilot for 2 Processes Deploy for Process Reference Model for IT (PRM-IT) with ITUP Composer, Pilot for 3 Processes Deploy 3 Processes Deploy for Process ITSM measurements and reporting. Deploy Process Deploy 3 Processes ITSM measurements and reporting. Deploy Process Architecture and Tools* Architecture and Tools* Use Model and Architecture Use Model and Architecture Use Model and Architecture Use Model and Architecture Adoption of a Service Management Model and Adopt Architecture, Model, Use Model and Architecture Use Model and Architecture Use Model and Architecture Use Model and Architecture Adoption of a Service Management Model and Adopt Architecture, Model, to design and deploy tools to optimize tools and to optimize tools and to optimize tools and Reference Architecture, and selection and deployment and Select Tools to design and deploy tools to optimize tools and to optimize tools and to optimize tools and Reference Architecture, and selection and deployment and Select Tools and processes processes processes processes of ITSM Tools. and processes processes processes processes of ITSM Tools. Organizational Transformation Organizational Organizational Organizational Organizational Organizational Transformation Organizational Organizational Organizational Organizational Organizational Org., Communications & Education Program to drive Organizational Transformation Transformation Transformation Transformation Org., Communications & Education Program to drive Transformation Development Transformation Transformation Transformation Transformation Trinity Health ITSM Improvements Transformation. Transformation Development Implementation Implementation Implementation Implementation Trinity Health ITSM Improvements Transformation. Implementation Implementation Implementation Implementation Legend: HD High-level Design DD Detail Design SB Solution Build *IBM has a robust IT service management model, Reference Architecture, and Process Guides to facilitate with rapid design and deployment of IT service management initiatives. 29 Integrate Your Management Processes Portfolio Management Product Management Project Management Performance Management Making the Right Investments Right Market, Right Time, Right Scope Doing Things Right Measure Performance Against Business Objectives Align portfolio investments with business priorities Improve predictability of product success Manage and optimize project execution Measure team performance and project results Best Practice Processes and Guidance Rational Software and Systems Delivery Platform

16 3 Adopt a Robust IT Intelligence Strategy Stochastic Optimization Optimization How can we achieve the best outcome including the effects of variability? How can we achieve the best outcome? Prescriptive Competitive Advantage Predictive modeling Forecasting Simulation Alerts Query/drill down What will happen next if? What if these trends continue? What could happen.? What actions are needed? What exactly is the problem? Predictive Ad hoc reporting How many, how often, where? Descriptive Standard Reporting What happened? Degree of Complexity Based on: Competing on Analytics, Davenport and Harris, Govern From Facts, Not Fiction Use visualizations to communicate clearly around the business issues 32 6

17 Quantify and Reduce Risk to Drive Out Uncertainty Quantified Risk Assessment RTC 2.0 Risk Management RPC.0 33 Have A To Be Vision and Work Towards It Enterprise Strategy Business Systems Infrastructure 34 7

18 35 Enterprise Model Driven Development (Advanced) Model Driven Development Business Drivers IBM Industry Models Business Analyst Define Project Scope Service/Data Analyst Service/Data Designer Integration/Data Developer Analyze Processes Analyze Services Design Services Design Processes Analyze Data Define Logical Data Model Define Physical Data Models Define Datastores Model Manager Propagate Enterprise Models (Re-) Use & Develop Models Govern & Manage Enterprise Model Driven Development Harvest Project Models Identify and Validate Changes Version Enterprise Models Asset Manager Govern & Manage Model Development Govern & Manage Enterprise Model Assets Promote Enterprise Model Publish Model Assets Publish Derivative Assets 35 Adopt Consistent, Cross-Platform Tools Upgrade to modern Eclipse-based tools to develop and maintain enterprise applications spanning multiple platforms and languages Rational Developer for System z 50%-80%¹ reduction in host CPU usage with workstation syntax checking 5% or more improvement in developer productivity¹ Tools with which to attract new talent ¹ Aggregation of results from a productivity study conducted by IBM

19 Automate your document creation process Create documents from data across a wide range of distributed and diverse data sources Rational Publishing Engine accesses data from a wide range of Rational tools, including: Asset Manager, DOORS, ClearCase/ClearQuest, Focal Point, Quality Manager, RequisitePro, Rhapsody, Requirements Composer, System Architect, Tau Access data from third party tools via XML and REST interfaces Source 2 Source 3 Source Source n 37 Integrate Tool Platforms to Unify Development and Operations Development Operations Software Architect Use real production topologies to plan deployments Generate deployment workflows for both development & production Rational Software Architect Rational Automation Framework for WebSphere Authorized production topology server server Server Server Server Server server server Invoke deployment automation Tivoli Application Discovery Tivoli Service Request Manager Tivoli Provisioning Manager Production Deployer Make service requests for production rollout that leverage application deployment workflows from development Proactive Risk Mitigation Rational Risk Assessment AppScan Policy Definition Vulnerability Assessment Final Security Audit Unified view of security issues Internet Security Systems Operational Risk Management Production Site Monitoring Secure Web Services Identity and Access Web Application Protection 38 9

20 Integrate Tool Platforms to Unify Development and Operations Development Operations Test Engineer Request new configuration Provision test environment Execute tests Developer Access to logged defect Utilize integrated & readily available performance data Perform problem identification and analysis Rational Quality Manager Rational ClearQuest Rational Performance Tester server Authorized production topology Server Server server server Server Server server Launch-in-Context Production App Data Tivoli Monitoring Tivoli Application Discovery Tivoli Provisioning Manager Tivoli Service Request Manager Tivoli Composite Application Manager Support Detect a production problem Log defect directly with development Track status and progress to completion 39 Consolidate and Reuse IT Assets Planning System Architect SA Model/Report CALM (RRC/RTC/RQM) report Team Deployment Development Enterprise Architecture Application Component Implementation Definitive Library RAM Server Release v.5 Approved Build Business Case / Service Service Spec Search, Publish & Consume Collaborate, Govern, Report Line of Business PowerPoint, Visio, Word Business Case Operations Mgmt CCMDB Configuration Item 40 20

21 4 Agenda Setting the stage 2 Lessons from the EUP 3 Some industry data 4 Some strategies 5 Parting thoughts 4 Address the 5Ps of IT. People 2. Principles/Philosophies 3. Practices/Patterns 4. Principles 5. Products 42 2

22 Executive leadership must collaboratively define the vision with all stakeholders Vision content includes: Mission statement Reference to business objectives Critical success factors Risk and challenges Strategic goals Tactical goals Operational goals Cultural targets and measurements 43 Copyright IBM Corporation 200. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, the on-demand business logo, Rational, the Rational logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others