Benefits of CMMI and ITMark implementation programs

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1 Benefits of CMMI and ITMark s I1 George Sharkov Ivaylo Gueorguiev European Software Institute - Center Bulgaria Skopje, Macedonia, May 2007 For internal educational use only! All data copyrighted by ESI, SEI, ESI Center BG, or respective sources as indicated European Software Institute Bilbao, Spain Created in 1993 Supported by the European Commission, the Basque Government and through company membership Established in Zamudio, Bilbao, Spain International team ESI s mission is to contribute to the development of the European industry s through promotion, continuous improvement and knowledge in Information and Communication Technologies ESI Centers Alliance ESI Bilbao, Spain ESI Center Sofia, Bulgaria ESI Center Tec de Monterrey Guadalajara, Mexico ESI Center SSEAC Shanghai, China ESI Center UNISINOS Rio Grande do Sul, Brasil ESI Center Victoria, Australia 1

2 Slide 1 I1 Waiting for FIlip Stojanovich final information Ivan, 5/9/2007

3 ESI Center Bulgaria - successful PPP ESI Center Bulgaria (established 2003) Recognition for regional capability and Solution for industry maturity and in Eastern Europe Founders Partners Ministry of Transport United Nations and Communications Development Program How do the Global companies measure Regional IT? we saw double-digit growth in university enrollment in countries like China, Brazil and Egypt, and the number of firms with quality endorsements like Carnegie Mellon's CMMI certification and the ISO data-security certification almost doubled in several emerging markets. Source: AT Keaney, WASHINGTON (15 March 2007), Regional Competitiveness Initiative Mission and Goals The mission of the program is to increase regional through training and dissemination of knowledge on CMMI Goal 2 INCREASED REGIONAL COMPETITIVENESS Building awareness and initial training on CMMI leadership and decision-makers commitment Goal 1 Development of the base for ICT cooperation through quality project infrastructure initial analysis leadership and decision-makers commitment Goal 4 CMMI implementation Goal 3 Creation of CMMI implementation capacity in the region implementation capacity 2

4 PRO CESS I MPR OVEM ENT C APAC ITY I N PLACE Achievements: Quantitative results IMPROVED REGIONAL CAPACITY AND BRAND ICT LEADERSHIP Achievements*: achieved CMMI ML 2 certification 6 companies from Armenia, Bulgaria, Macedonia and Romania approached official CMMI certification INCREASED COMPETITIVENESS ESTBLISHED READINESS FOR REGIONAL COOPETITION Achievements*: 166 participants from 2 took part in practical SPI workshops 2 from Armenia, Bulgaria, Macedonia and Romania launched official SPI programs Participating companies reported increased PROCESS IMPROVEMENT CAPACITY IN PLACE CREATED NATIONAL CAPACITY & AWARENESS Achievements*: 173 experts from 12 trained in different courses and seminars ( Intro to CMMI, CMMI overview, SPI roadmap to maturity, etc.) Courses were attended by people from Armenia, Bulgaria, Macedonia, Moldova, Montenegro, Romania and Serbia More than 95% of the people trained declared that they will use the knowledge gained in their work More than 97% of the participants had positive appreciation of the trainings * - preliminary data ORGANIZ AT IONAL INF RAST RU- CTURE IN PL ACE Results oriented towards building of regional Results oriented towards increased of the ICT sector 51 to 75, Qualitative results Sample set of observed companies Organization size 25 or fewer, Questionnaires sent to 1, 1 refused to participate, 3 have not answered yet Total number of employees in 9 companies, which provided data: 387 employees Average number of employees per company: 36 employees/company 26 to 50, Structure of the survey BUSINESS VALUE SPI VALUE PROGRAM ORGANIZATION have less than 16 employees The companies are from Armenia, Bulgaria, Macedonia, Romania Observed companies include CMMI and ITMark certified companies, companies in process of CMMI and ITMark certification and some who didn t manage to fulfill all the requirements for ITMark certification Increased companies How much your company s increased due to CMMI/ITMark? 4 of 9 companies reported increase of 20%- 50% reported increase of 50%- 80% Neither company reported increase lower than 20% or higher than 80% 3

5 How much CMMI/ITMark influenced company s business process improvement? Improved Business Management Processes 1 of 9 companies reported business management processes improvement of 0%- 20% reported business management processes improvement of 20%-50% reported business management processes improvement of 50%-80% Neither company reported business management processes improvement of more than 80% Business functions that gained real benefit from SPI programs Organizational Marketing and sales Services management Resources management Project management Release management Quality assurance Based on companies additional comments New potential clients met due to CMMI/ITMark s After the beginning of SPI program (through CMMI/ IT Mark) have companies met new potential clients, customers or partners who were asking about Quality Initiatives in your company, emphasizing CMMI and/or IT Mark? Yes, 3-10, 2 company Yes, >10, Yes, 1-3, 8 of 9 companies met potential clients who were asking about quality initiatives, emphasizing CMMI and/or ITMark met 1 to 3 potential clients met 3 to 10 potential clients met more than 10 potential clients Only one company reported that they hadn t met potential clients asking about CMMI/IT Mark 4

6 New clients acquired due to CMMI/ITMark s Did companies acquire new clients/partners due to the CMMI/IT Mark? Not sure, 1-3, Yes, 1-3, 3 of 9 companies confirmed that they have acquired 1-3 new clients/partners due to CMMI/ITMark wasn t sure didn t report new clients acquired due to CMMI/ITMark Some companies pointed out that the reported period was too short to provide appropriate feed-back Retained customers due to CMMI/ITMark s Did companies retain clients/partners due to the CMMI/IT Mark? Yes, 1-3, Yes, 3-10, Not sure, >10, 3 of 9 companies retained some of their customers due to CMMI/ITMark retained 1 to 3 customers retained 3 to 10 customers are not sure didn t report retaining clients due to SPI initiative Met, acquired and retained clients, Cases - I CMMI program helps to penetrate foreign markets CMMI implementation experience used to provide consultancy services to their clients related to software processes optimization Important customer retained due to CMMI CMMI helped to win a project financed by a big financial institution Based on companies additional comments 5

7 Met, acquired and retained clients, Cases - II CMMI and IT Mark considered as an advantage in tenders for big international companies/organizations Customers listed as retained, acquired include companies/organizations: such as IBM, World Bank, a Ministry of Public Finance, Siemens, UN organizations and important U.S. clients Based on companies additional comments How much CMMI/IT Mark influenced clients satisfaction? How much CMMI/IT Mark influenced time to market reduction? 6 companies Business indicators improved: clients satisfaction and time to market 3 of 9 companies reported clients satisfaction increase of 50-80% reported clients satisfaction increase of 20-50% 6 companies reported time to market reduction of 20-50% Some companies pointed out that the reported period was too short to provide appropriate feedback Retained and employed human resources How much CMMI/IT Mark influenced employees motivation increase? Since CMMI/ITMark s were launched there s been an 11% increase in the overall number of employees - a total of 37 people were employed 3 of 9 companies reported that employees motivation increased by 50-80% due to CMMI/ITMark reported that employees motivation increased by 20-50% reported that employees motivation increased by 0-20% No companies reported increase of employees motivation by more than 80% 6

8 Creation of Community of Practice Have companies gained additional benefits from the SPI Program? Yes, others, Yes, we have strengthen our links with other IT SMEs, Yes, we have improved our links with business associations, 4 of 9 companies improved their links with business associations strengthened their links with other IT SMEs mentioned other benefits One company mentioned that CMMI/ITMark implementation program improved cooperation among regional IT associations One company proposed to further develop cooperation between SMEs by organizing regional meetings and creating of web-based forum for ITMark implementation Only one company didn t mention additional benefits gained from the SPI program Improved Software Processes 10 How much CMMI assessment and its findings influenced the improvement of company s processes? MA PPQA CM 4 of 9 companies reported Measurement and Analysis processes improvement of more than 80%, 3 companies of 50-80% and of 20-50% 4 of 9 companies reported Process and Product Quality Assurance improvement of more than 80%, of 50-80% and of 20-50% 4 of 9 companies reported Configuration Management improvement of more than 80%, 2 companies of 50-80%, 2 companies of 20-50% and one company of 0-20% Increased sales How CMMI/IT Mark influenced the sales increase? 5 of 9 companies reported sales increase of 20%-50% due to CMMI/ITMark reported sales increase of 0%- 20% No companies reported sales increase of more than 50% Some companies pointed out that the reported period was too short to provide appropriate feed-back 7

9 RCI s importance for the SMEs Would the companies have initiated the SPI program without support from RCI? Yes, but on a limited scale, 7 companies Yes, Yes, but at least one year later, 7 of 9 companies would have initiated the SPI program on a limited scale without support from donor programs would have initiated the SPI program, but at least one year later Neither company would have initiated the SPI program in the reported timeframe without donor programs support Neither company reported that they wouldn t have initiated the SPI program at all Some companies outlined in their comments the high importance of donor programs for them One company answered that they probably wouldn t have gone for official certification without donor support Q&A Thank you 8

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