Transforming Business Needs into Business Value. Path to Agility May 2013

Transcription

1 Transforming Business Needs into Business Value Path to Agility May 2013

2 Agile Transformation Professional services career Large scale projects Application development & Integration Project management Business leadership

3 Today s Challenge Continuously improve the efficiency of development process Moving beyond how to why agile Turning business imperatives leading to business outcomes Increase the effectiveness of the organization Enable effective business strategies Measure performance against organizational goals

4 Why Agile? On average, 35% of requirements change throughout the software lifecycle 45% of delivered features are never used 82% of projects cited incomplete and unstable requirements as the number one reason for failure Software quality errors cost U.S. businesses over $59 billion annually On average, projects overrun by 56% on cost and 84% on time Sources: Standish Group, NIST, Forrester, Gartner, British Computer Society

5 The Agile Manifesto February 11, 2001 Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan Inspection Transparency Adaptation

6 Understanding Business Drivers Growth is top priority but must maintain costs Defining competitive advantage (increase market & wallet share) Must understand and manage innovation initiatives Driving need for information (IT)

7 2013 Key Challenges for the CEO Stakeholder overload Board engagement Who is controlling your brand? Where will growth come from? Real succession planning Disruptive technology Global talent development Talent (im)mobility The Miles Group, LLC

8 IT Drivers Must meet organizational information needs Implementation of competitive advantage initiatives Manage governance, risk and compliance (GRC) Must maintain operating margins System and security risks CEOs regard CIOs as a transient specialists

9 How does CEO measure IT Organization? Are you adding value, or keeping the lights on? What percentage of your budget is spent on running the business vs. changing the business? How much of your budget is allocated to each business segments you support? Does that match the value of those segments to the business? How does what we are doing align to our business strategy?

10

11 Evolving Challenges

12 Technology Provider Imperatives Mobile in the Enterprise Reinvent Your Business Design Processes Provide Adaptive, Flexible and Secure Integration Leverage Data to Drive Insight

13 Mobile in the Enterprise 87% American adults who own a cell phone 84% Cell phone owners who could not go a single day without their device 81% Growth of smartphone usage in % Growth of global mobile data traffic in % Traffic on mobile devices from video in % American adults who own a smartphone 44% Cell phone owners who sleep with their phone nearby 31% American adults who own a tablet computer 24% Cell phone owners who say the worst thing about device is that it is always connected

14 Upgrade Your Business Design Processes Engage Business Users in every step of the process Accelerate Time to Value Discover, document and optimize business processes Provide a consistent and ENGAGING experience

15 Adaptive, Flexible & Secure Integration Unlock and expose back office capabilities and information Seamless cross channel interactions Simplify development to support growing types and locations of applications

16 Leverage Data to Drive Insight 1 in 3 business leaders don t trust the information they use to make decisions Enterprises are awash with ever-growing data of all types Gain insights from emerging data and content For time-sensitive processes such as catching fraud, big data must be used as it streams into your enterprise in order to maximize its value

17 Desired Outcomes Focus IT as a Driver of Business Value, not just another cost center Clearly provide increased strategic value through IT services Service delivery through a highly engaged, agile and innovative organization

18 Are you Delivering Business Value? Analysis of PMO Executive Council project database reveals a disturbing reality: even among those projects that are delivered at least 90% on time and on budget, the majority fail to deliver business outcomes. The top-performing projects in terms of budget and schedule compliance attain on average only 53% of their business outcome expectations. Source: Project Managing to Business Outcomes - Targeting Critical Project Management Activities That Drive Business Impact Corporate Executive Board PMO Executive Council

19 Managing to Business Value 1. On-time and on-budget project performance is necessary but not sufficient for attaining business outcomes 2. Only a select number of project management activities drive business outcome attainment 3. Project Manager effectiveness is the number one driver of business outcome attainment 4. Organizations need to re-center project planning around business outcomes to estimate and track benefits 5. Over manage stakeholder involvement at Concept Definition Source: Project Managing to Business Outcomes - Targeting Critical Project Management Activities That Drive Business Impact Corporate Executive Board PMO Executive Council

20 How do you transform your organization?

21 Balanced Approach

22 Focus and Determination

23 Determine your Agile Attitude Embrace change Seeks collaboration Continuous feedback & learning Focuses on customer satisfaction Promotes effective decision making

24 Establish your Framework Define your SDLC Adopt Best Practices Measure Results End-to-end Traceability Development Tool Integration Real Time Collaboration Continuous Integration

25 Operational Model BUSINESS & TECHNOLOGY DRIVERS BUSINESS STRATEGY PROJECT PORTFOLIO BUSINESS REQUIREMENTS EFFICIENCY RELEASE DOING 1 THINGS 2 RIGHT N RELEASE RELEASE BUSINESS SOLUTIONS

26 Efficiency Gains Improve and Measure BUSINESS REQUIREMENTS EFFICIENCY RELEASE DOING 1 THINGS 2 RIGHT N RELEASE RELEASE BUSINESS SOLUTIONS Applied Lessons Learned

27 Not there yet, keep going

28 What is your Business Value Maturity? LEVELS OF MATURITY Initial Managed Predictable Optimized Organization often produce products and services that work Requirements are managed and processes are planned, performed, measured and controlled Performance measures are used to support fact-based decision making Objectives continually revised to reflect business objectives for process improvement

29 Business value Maturity Model Leading Enhance Business Strategy Optimized Predictable Establish Business Impact Metrics Realize Business Results Managing Managed Evaluate Organizational Efficiency Measure Business Impact Enhance SDLC and Governance Initial Create SDLC and Governance Implement SDLC and Governance

30 Improved Business Value BUSINESS & TECHNOLOGY DRIVERS BUSINESS STRATEGY PROJECT PORTFOLIO BUSINESS REQUIREMENTS EFFICIENCY RELEASE DOING 1 THINGS 2 RIGHT N RELEASE RELEASE BUSINESS SOLUTIONS Reevaluate the value and benefits after every release Doing the right things

31 Business Results Business Solution Immediate Value Ultimate Value New internet site Unique site visits Improved Sales Mobile Application Application downloads Improved Customer Experience Digital sales aids Real time sales material Revenue Increase Self-serve account management Decreased help desk calls Cost Reduction Online quoting system Increased time on site Revenue Retention

32 Business Planning BUSINESS STRATEGY BUSINESS CASE BUSINESS CASE BUSINESS CASE Business Objectives, Drivers & Expectations Business Features (Streams) and Benefits with measureable value Key Stakeholders & Stakeholder Needs Initial User Experience Research & Concepts High Level Architecture

33 Define Benefit and Cost BUSINESS FEATURE (STREAM) Feature 1 Feature 2 Feature n Benefit ($) / Expense ($) Benefit ($) / Expense ($) Benefit ($) / Expense ($) Epic Epic Epic Epic Story 1 Story 2 Story 3. Story n Story 1 Story 2 Story 3. Story n Story 1 Story 2 Story 3. Story n Story 1 Story 2 Story 3. Story n Benefit and cost can be attributed to every Epic and Story Decomposition of features into granular elements for development

34 Kano Approach for Prioritization Help business understand what needs to be delivered in a good product Illustration of features vs satisfaction (Wikipedia) Classify features into three categories of customer satisfaction: Must Have/Basic Performance Needs/Linear Exciter AND what could be added to create a great product

35 Kano Approach for Prioritization Must Have Not always expressed but are obvious to the customer and must be met. Are not a source of satisfaction but can cause major disappointment. Must be there at product launch. Performance needs Is expressed and customer satisfaction is proportional to the level of performance implemented. It is a strong source of customer satisfaction. Must be shown as soon as possible to the Customers. Delighters These requirements are not necessarily expressed. Sometimes they re unconscious. The happy surprise that can make a difference, and an important source of satisfaction.

36 Manufacturing Example Immediate Value We went from 10% to 90% efficient in gathering business requirements for our initiatives. Development Manager Sales and Service Productivity Suite Ultimate Value Our business units are not used to seeing results in three months. IT is no longer a black box. We could not do that without this type of development approach. 5 Year Goals: 50% Revenue Growth 20% Decrease Service Cost VP Business Unit

37 Banking Example Immediate Value Analysts gained an understanding of our complex business requirements and transformed them to technical solutions faster than our own teams. VP, IT Corporate Compliance We are able to consistently meet aggressive schedules and evolving requirements with quality solutions. VP, Business Unit Ultimate Value Decreased risk by 30% Increased Reporting effectiveness by 24%

38 Organizational Results

39 Focused IT Goals Business enablement Integrated organization Shared mission Enhance ability to increase market share

40 40

41 Thank you. Scot Burdette VP, National Practices ICC

42 REPEATABLE DELIVERY PROCESS Agile Delivery Process tailored to meet the client needs Feature Prototyping to create early Requirements Alignment Continuous Integration 3 Amigos Testing Test Driven Development (TDD) for Integration projects Behavior Driven Development (BDD) for web development projects Selective Pair Programming to get the most value while minimizing risk and ensuring quality Guidelines and Standards for project execution

43 Agile Team Roles Product Owner Business Analyst Scrum Team Scrum Master Tech Lead QA Analyst Product Owner represents the stakeholders and is the voice of the customer and is responsible for the features of the product to be worked on, as well as the release date. They are responsible for prioritizing the product backlog. Scrum Master acts as the project manager, and is responsible for removing impediments to the ability of the team to deliver the sprint goal/deliverables and also shielding the team from outside interferences. They also lead task assignment and daily stand up meetings with the team. Developers Scrum Team consistent group of cross functional people with varying degrees of experience. The team is self organizing and tasks are assigned based on availability and capability.

44 DEEPER DIVE INTO Application Lifecycle Management

45 Quality Assurance Application Lifecycle Management Vendors Gartner's Magic Quadrant for ALM

46 Microsoft Team Foundation Server

47 IBM Rational Team Concert

48 WHY DO WE NEED ALM? Key Decision Factors Avoid integration and setup of multiple tools for SDLC Focus on project functionality vs. tool setup and infrastructure Technical support from Microsoft and IBM Value for investment KEY BENEFITS Continuous Visibility Traceability IDE Integration Task Management Real Time Collaboration Source Control & CI

49 CONTINUOUS VISIBILITY Real Time Facts Project Burndown Sprint Burndown

50 CONTINUOUS VISIBILITY Real Time Facts Test Case Execution Report Defect Tracking Report Zero Defects

51 TASK MANAGEMENT & COLLABORATION Support for Tasks for all Team Members

52 IDE INTEGRATION & TRACEABILITY Product Backlog User Stories Traceable Verifiable Auditable

53 SOURCE CONTROL & CONTINUOUS INTEGRATION Traceable Verifiable Auditable

54 CODE BRANCHING

55 Static Code Analysis SONAR CONTINUOUS VISIBILITY Code Quality Analysis - SONAR Test Coverage Code complexity analysis Code duplication analysis Adherence to standards

56 DEEPER DIVE INTO ICC s Delivery Approach

57 ICC Delivery Approach REPEATABLE DELIVERY PROCESS Process TOP MANAGEMENT & TECHNOLOGY TALENT People WELL OILED MACHINE Technology SCALABLE TEAMS NATURAL EXTENTION FOR CUSTOMERS CONTINUOUS COLLABORATION WITH THE CUSTOMER

58 Top Talent Cross Functional Teams of true Consultants Industry recognized technical leaders and management professionals Delivery Focused Agile Coaches, Iteration Managers, Architects, Software Engineers and Business Analysts ICC experts are regular speakers in Agile and Technical conferences and events Company focus on professional development, certifications and domain expertise

59 Scalable Teams Practice of 100+ consultants each in.net, Enterprise Java and related specialties. Leadership Development Academy to hire and develop fresh talent Continuous Training for existing Consultants Best in the Business Recruiting professionals with a strong network and a global reach

60 Natural Extension B2B connectivity between ICC and customer s development and testing environments Flexible development approach with the ability to use customer s source control & other infrastructure Effective use of Application Lifecycle Management (ALM) tools to provide Real time Reporting and Continuous Visibility to our customers Flexible Processes to incorporate customer s best practices, standards and tools Use of the latest technology to ensure real time collaboration between distributed teams