ALM Market Trends. Toby Marsden. 26 th May 2016

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1 ALM Market Trends Toby Marsden 26 th May 2016

2 How will the future be Sometimes what we imagine as future is quite different from the reality. 2

3 Disruptive Change: External Drivers The Idea Economy Turning ideas into new products or services has never been easier 3

4 Disruptive Change: External Drivers The Idea Economy Turning ideas into new products or services has never been easier New, Disruptive Business Models No business, industry or government is safe New competitors I was at a dinner the other night, and there were half a dozen or so large banks there. They were all saying, to my surprise, that they didn t feel like they were competing with one another, but that they felt like they were competing with companies like Apple, Google, PayPal, and increasingly startup companies. Kurt Bittner- Principal Analyst at Forrester Research 4

5 ADIDAS GROUP ACQUIRES RUNTASTIC Adidas Group CEO Herbert Hainer said the acquisition is about bagging 70 million customers to cross-sell its other fitness products. 5

6 Disruptive Change: External Drivers The Idea Economy Turning ideas into new products or services has never been easier New, Disruptive Business Models No business, industry or government is safe Internet of Things, Explosion of Devices Cloud is redefining how applications and devices are written and delivered 6

7 The Digital Disruption has already happened TAXI MEDALLION PRICES HAVE FALLEN 40 PERCENT UBER DOESN T OWN TAXI 7

8 Inside forces are pushing IT to accelerate Application Delivery Technology is business strategy Developers are the new Kingmakers DevOps driving culture shifts Shadow IT is everywhere 8

9 Users behavior is changing Our busiest branch in 2014 was the 7:01 from Reading to Paddington over 167,000 of our customers use our Mobile Banking app between 7am and 8am on their commute to work every day. Ross McEwan CEO Royal Bank of Scotland 9

10 How important is it for you to own the following? Millennials COMING OF AGE One of the largest generations in history is about to move into its prime spending years. Millennials are poised to reshape the economy; their unique experiences will change the ways we buy and sell, forcing companies to examine how they do business for decades to come. Source: Goldman Sachs Fortnightly Thoughts intern survey,

11

12 It s evolution, not revolution We call this multi-modal ALM for core Proven Scalable Workflow driven ALM for Fluid Agile, Continuous Delivery/ Quality Core IT Your business backbone Reliable, compliant, secure Plan, governed and approvals driven Built to last Waterfall and Hybrid delivery Fluid IT Agile and fluid Innovation, brand, profit measures Think continuous, days, weeks Built to change + Agile, Continuous delivery Emerging Mode 2 Practices in Bimodal Governance. Gartner, Jan 2016.

13 And in reality, applications cross a spectrum of IT Modes Spectrum of IT Modes Core mission critical Highly regulated Business critical/ some regulation Operations support, costly to change Operations support, but more nimble Customer/ employee engagement, innovation Customer engagement, business cycles Fluid Real-time responsive - Int l Funds transfer - Global entry/ passport control - Bank account transactions - Medical records management - Pharmaceutical manufacturing - Quarterly financial reporting - Automotive manufacturing - Product distribution - Payroll - Cost accounting - Open enrollment - Human resource management - Inventory management - Supply chain management - IT service management - Customer call center - Distribution and logistics - On-line Catalog - Pricing and shopping cart - Reservation systems - ecommerce promotions - On-line services - Mobile application downloads - Streaming media - On-line gaming - Time sensitive promotions - Betting - Social media Regulated, waterfall, compliance requirement, iterative, planned/costly, backlog, flexible, customer insight driven, time driven, real-time event driven, continuous

14 Source WQR 2015

15 Continuous Testing Unit Tests only test a developer s perspective of the solution to a problem. They have only a limited ability to prove that the application does what it is supposed to from a users perspective. Jez Humble, David Farley Source WQR

16 Testing Obstacles To Faster Releases Total (n=112) Ineffective automated regression testing 62% corporate.ford.com Ineffective integration testing Manual testing was too slow Testing resources were not available when needed Ineffective load testing and performance validations Ineffective automated unit testing Lack of skills None of the above 1% Base: 112 North American and European IT decision makers involved in application development and delivery 16% Source: A commissioned study conducted by Forrester Consulting on behalf of HP 46% 46% 51% 61% 61% 2013 Forrester Research, Inc. Reproduction Prohibited 16

17 Agile Testing: Predictive Analytics Build success Anticipate defects Optimize testing Focus on most risky code changes Prevent performance surprises Higher quality, faster delivery, less rework Historical Data Predicting Prioritize testing using predictive analytics and continuous feedback during the SDLC is the next frontier that many companies are considering today. 17

18 Agile Testing: Predictive Analytics Big Data Analytics will transform Application Delivery Understand Release and Feature Quality through Dev, Test and Ops Data Make decisions based on project deadlines and highest ROI improvement areas See suggested improvements on how to improve quality and user experience Add suggested improvements to Dev and Test team task list 18

19 It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change. Darwin is often quoted and often misquoted. Here are some sayings regularly attributed to Darwin that never flowed from his pen. 19

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