APPS Building a Performance COE 4AA1 7175ENW

8/6/2019 APPS Building a Performance COE 4AA1 7175ENW

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Building and managing a Performance Center of ExcellenceWhite paper



Table of Contents Abstract

What is a Performance CoE?

How a Performance CoE works: Four simple examples

Performance CoE maturity model: Start small and grow organically

Performance CoE resources and services

Common Performance CoE key performance indicators (KPIs)

Why adopt the Performance CoE model?

Problems with traditional performance optimization practices

The business value of the Performance CoE model

How to build a Performance CoE

Assess

Scope

Design

Implement

Validate

Expand and Extend

HP Performance Center: An integrated solution

Top CIO questions about the Performance CoE model

Summary: 10 tips for building and managing a Performance CoE



AbstractThe increasing focus on application performance isrooted in a key fact: No matter how well applicationsare designed, no matter how well they meet businessrequirements, they are virtually useless to end-users ifperformance is sluggish or unreliable

Enhancing the speed and availability of applicationscan be complex, and often requires expertise thattakes time to develop At the same time, every phase

of application performance optimization has becomespecialized due to greater complexity of platformslike SOA, virtualization, Web 20 and other IT trends,which come with their own specific skill sets, tools,formats, protocols, and processes Load testing,code optimization, usage analysis, tuning, capacityplanning—the problem is that very often, the skillsdeveloped and processes created by individualproject teams are not shared within the IT departmentor across lines of business This results in each teamstarting from scratch with each new performanceoptimization project—wasting time, money, and talent

One leading solution that has been embraced bykey customers and analysts alike is the PerformanceCenter of Excellence (CoE) model—essentially alogical or physical entity that drives standardizationand processes across an organization, to improvequality, consistency, effectiveness, and efficiency

A Performance CoE does away with disparate toolusage, inefficient performance testing, and inaccurateanalysis A Performance CoE can also providethe entire organization with a central platform forperformance management that will create visibilityinto critical performance parameters of the delivered

application, keeping everyone informed and keepingapplications aligned with business objectives

Following are the advantages of this model:

•Centralized infrastructure and expertise: Test labs,tools, staff, and best practices are integrated andconveniently accessible to all project teams throughone source, cutting the need to replicate expensiveresources (in fact, total headcount and systemlicenses could be reduced)

•Faster, better processes: Standardizing toolsets andprocesses enable consistent, cost-effective, and rapid

implementation of enhanced processes•Business focus: The Performance CoE model

measures performance from the perspective ofbusiness and end-user results, not just systems orcomponents

•Practical and achievable goal: Building aPerformance CoE is an achievable goal You castart small, leveraging existing resources, andexpand as the value is proven

In general, the Performance CoE can improveperformance and availability while cutting totalcost of ownership (TCO), and can make sure thatyour best people contribute to the organizationHP is uniquely positioned to help your companytransition to the Performance CoE model This pap

summarizes the business value of the CoE model aoutlines the process for building and managing aPerformance CoE using HP Performance Center Itprovides real-world examples of companies that hexperienced the benefits of the CoE model

What is a Performance CoE? A Performance CoE is an internal competency cenfocused on enhancing and validating the performaof applications to meet business requirements Itprovides a management and automation platformfor performance optimization processes, as well a

consulting services, support services, and leadershand advocacy to help the organization understanthe importance of performance validation andoptimization of the CoE model

Through the Performance CoE, project teams areable to take advantage of all the expertise, toolsetand best practices the CoE has developed Thissection provides an overview of the function of thePerformance CoE and examples of the services it cprovide The next section takes a closer look at thebusiness value of implementing a Performance Co

CoEs can help:

•Increase performance quality by:

−Having a highly skilled, central performancetesting team

− Implementing standardized testing practices

•Reduce the total cost of performance testing bymore efficiently using the testing infrastructure, th

−Reducing the number of performance testinglicenses

−Reducing the total headcount needed



How a Performance CoE works:Four simple examplesThe following examples contrast how an IT

organization might respond to real-world situationsboth with and without a Performance CoE

Example 1The CIO notifies IT management that employees havebeen complaining about the performance of a recentlydeployed HR application

• With a Performance CoE: IT management contactsthe Performance CoE practices manager andrequests immediate resolution of the problem Themanager then provides a performance test specialist,a performance tuning specialist, and a workload

analyst to find and fix the root problem Theirexpertise, standardized tools, and best practiceshelp expedite the diagnosis and the problem isquickly solved

• Without a Performance CoE: An operations team,consisting of various experts focusing on specificsilos and using disparate tools, starts to assess theproblem The problem passes on from specialist tospecialist, and all analysis happens retroactively onthe live system, which means a lot of assumptionsare involved The net result is that addressing theperformance issue takes longer than expected, while

other critical projects are delayed and languishingend-users still suffer

Example 2 A marketing team is launching a new campaign thatwill result in additional load on the Website, and ITwants to know if the site can handle the overload

• With a Performance CoE: The performance groucan prepare for the campaign by validating theavailable capacity of the system and then buildian efficient capacity management plan

• Without a Performance CoE: The campaign maylaunched despite inadequate system planning apreparation, resulting in wasted marketing spendmissed sales opportunities, and disgruntledcustomers

Example 3 A project team has developed an application usinthe latest Web technologies The team wants to msure that the application will perform properly befits release

• With a Performance CoE: The CoE has testing

engineers, who are up to date on the latesttechnologies, and have the best practices to testproduct properly before giving it the green light

• Without a Performance CoE: The project team’squality assurance (QA) staff members are notfamiliar with the new technology and spend a gdeal of time trying to learn it But they do not hatime to fully grasp it so the application does not tested properly Now the application is at risk wit gets released

Example 4

An employee with a stellar reputation as aperformance-tuning wizard leaves the companyunexpectedly, taking his process expertise andintellectual capital with him

• With a Performance CoE: The company’s bestpractices for testing and tuning are standardizedshared, and rigorously documented, so thedeparture of a key individual is not a major setbto current projects or project teams

• Low Expertise

Application AAA

• Ad-hoc approach• Tests conducted by Dev

Application CCC

• High expertiselevel

• Well definedmethodology



Application DDD

Application AAA

Center of Excellence

Application CCC

Application BBB

Application DDD

• No PerformanceTesting

Application BBB







gure 1: The CoE model the traditional model, every project team is an island, with its own staff, tools, and practices The CoE model centralizes the expertise, processes, and sharable assets



Level 0

Level 1Level 2

Level 3

Level 4

Center of Excellence

Ad-Hoc/ManualProject Based

Product Utility

Service Utility

Performance Authority

Increasing Maturity

gure 2: The CoE Maturity Modelhe CoE Maturity model features an organic evolution from issue to enterprise

• Without a Performance CoE: IT management mustscramble to find another individual within or outsidethe company with similar expertise

Performance CoE maturity model:Start small and grow organicallyThe Performance CoE model is easily achievableand practical It can initially start small, with minimalincremental capital expenditure Then over time itcan scale up its resources, services, and capabilitiesiteratively as its value is proven to management andthe IT staff As long as it is implemented correctly, itwill prove its value

Typically, the compelling events that cause a companyto inquire about a Performance CoE are critical

performance issues, projects in distress, or cost-cuttingneeds, often at a departmental level For example,the Performance CoE can initially serve as a catalystfor consolidating the software and hardware used forperformance testing, resulting in cost savings throughbetter asset utilization and lower administration/maintenance costs As project teams and managementbegin to recognize the advantages of the PerformanceCoE model, the CoE can gradually expand its servicesto broader performance issues

Next, the Performance CoE can grow from adepartmentally focused service organization to across-line-of-business resource that essentially managesthe infrastructure and supports the users

The next step in the evolution is called the “ServiceUtility” model, in which the Performance CoE teambegins to provide actual performance testing servicesincluding planning, scripting, and execution of tests

Usually, lines of business are limited in theirperformance testing knowledge and use of industrbest practices and processes, but with the CoEmodel they have access to the experience and

recommendations of performance experts

The last step is the transformation of the CoE to a“Performance Authority,” in which the PerformanceCoE becomes a routine part of applicationdevelopment, deployment, and operation, contributo an organizational culture focused on performanand cost efficiency Under the Performance Authomodel, no application makes it out to productionwithout going through all-encompassing, consistenprocesses focused on enhancing performance

Performance CoE resources andservicesSpecific support services provided by a PerformanCoE include:

•Performance testing

•Performance benchmarking

•Performance modeling

• Wide area network (WAN) emulation

•Infrastructure optimization

•Problem diagnostics

To provide these services, the Performance CoEmaintains a staff; toolsets and templates; anddocumentation of best practices, procedures, andtechniques Staffing levels depend upon the scopeand projected growth rate of the Performance CoEand they can range from a manager and domainexpert in the beginning to a dedicated practicesmanager, CoE manager, and operations managealong with solution architects, project managers, adomain experts



Common Performance CoE keyperformance indicators (KPIs)In addition to providing consistent processes, industry

best practices, and toolsets for higher performance,the CoE model also provides a dashboard ofkey performance indicators (KPIs), which aremeasurements of specific performance-relatedcriteria By maintaining and regularly monitoring KPIs,organizations can help keep everyone informed andkeep IT and business goals aligned

Examples of typical KPIs include:

•CoE management level:

−Number of customers

−Number of requests for service

−Total number of projects

−Number of references

−Revenues

−Gross margins

•Project management level:

−Effort variance

−Schedule variance

−Customer satisfaction rating

•Performance project level:

−Transaction response time versus service levelagreement (SLA)

−Transactions per second versus SLA

−Transaction error rate versus SLA

−System utilization versus goals

−Business requirements coverage

−High severity defects

•Productivity:

−Test scripts per person per day

− Validation and optimization runs per person p

day −End-to-end performance validation/optimizatioprojects per person per month

Why adopt the Performance CoEmodel?The Centers of Excellence trend has gainedtraction recently within the IT departments of largeorganizations because of all of its benefits

This section summarizes the costs, risks, and variolimitations of traditional performance optimization

practices and contrasts them with the PerformanceCoE model

Problems with traditional performaoptimization practices•Piecemeal practices and toolsets: In many cases

each project team develops its own performanceoptimization processes, using whatever tools hapto be favored by individual team members Theresult is a hodgepodge of workflows, practices,tools, and techniques that are neither well

documented nor well integrated, nor transferablother groups The issue is more than inefficiencyThe piecemeal approach significantly increasesthe cost and complexity of practices and has thepotential to diminish morale and limit the skilldevelopment of IT staff

“The greatest advantage of a Performance CoE is theelimination of performance defects prior to production,enabling the delivery of competitive advantage to thebusiness, even as it experiences the organizational

challenges wrought by today’s economy”Market Snapshot™ Report: Performance Center ofExcellence, voke, inc., 2009



Assess Scope Design Implement ValidateExpand and

Extend

gure 3: Building a CoEhown are the key steps in building a Performance CoE

•Disconnected processes: Different silos of thedevelopment and delivery process use their ownapproach to performance optimization, resulting inmiscommunication, misalignment, and ultimately

sub-optimal performance•Lack of alignment between practices and business

goals: With the piecemeal approach to performanceoptimization, individual project teams are oftenseveral layers removed from IT or executivemanagement and can find it difficult to focus on theoverarching business objectives of their projects

•Limited scope of performance optimization: Manycompanies benchmark their systems late in thedevelopment process if at all As a result, systemsare deployed in sub-optimal configurations that stillcontain undiscovered performance and availabilityissues—and the disparate toolsets used to enhanceperformance do not work together

The business value of thePerformance CoE model•Lower costs, higher revenues: The efficiency of the

Performance CoE model helps cut the cost of testlab infrastructure and operations while improvingapplication performance, resulting in more satisfiedend-users and competitive advantages that driverevenue

•Higher profits: The Performance CoE modeldelivers better application software, more satisfiedend-users, faster deployment of high-performancesoftware-driven services, and, ultimately, increasedcompetitiveness and profitability

•Improved business productivity: Higher applicatperformance typically yields higher end-userproductivity For example, the productivity of a centering orders into an SAP system depends on

response efficiency of the system•Decreased time to market: The rapid response

capability of the Performance CoE helps reduce project time, resulting in faster time-to-market of performance applications and on-time response business needs—all at a lower total cost

•Greater flexibility: Organizations can implemena Performance CoE on a small scale, leveragingexisting resources, and expand its capabilities avalue is proven

•Tighter alignment: By defining and measuring K

the Performance CoE helps keep the applicationperformance aligned tightly with business needs

•Career advancement: The Performance CoE modcreates a compelling new career opportunity forprofessionals, leading to better HR, and helpingorganization recruit and retain top talent

How to build a Performance CoEThe flexibility of the Performance CoE model enabcompanies to start small, use existing resources,and achieve tangible benefits almost immediatelyThis section outlines the typical process for buildin

a Performance CoE step by step A detaileddiscussion of each step and specific best practicerecommendations are available through HP ServicHP Services provides assistance in architecture,planning and implementation, and even operationorganizational, process, and technology aspects othe Performance CoE



AssessThe first step in building a Performance CoE isidentifying the business goal This is accomplished byhonestly answering two questions: What is the biggest

pain point right now in addressing performanceissues? And what issues really need to be addressedimmediately? The answers will help you determinewhat the focus and scope will be, and how successwill be measured

Once the business goals have been identified,an assessment phase evaluates the organization’sreadiness to build a Performance CoE and accomplishthe business goals identified in the previous stepIt also provides an objective rating of the value ofthe Performance CoE to the organization in terms ofexpected ROI

A critical step that occurs in the assessment phase isthe alignment of the company’s business goals withthe specific application performance goals of the ITorganization With an understanding of how thesegoals impact each other, IT management can beginto identify a set of quantifiable metrics—or KPIs—thatmeasure the accomplishment of the business goalsThese metrics not only define measurable PerformanceCoE success criteria, they also form the basis fordetermining the economic value of the PerformanceCoE For example, they can show how an increase in

application performance directly decreases customerservice costs

The assessment stage also provides the tools formodeling the resources—hardware, software, andpeople—required to support the Performance CoEIn this phase, the organization creates a strategy fororganizational change and builds a roadmap forachieving that change It also selects the services itrequires to help institutionalize change

In addition, the assessment consolidates the proces

•Designing the organizational structure of thePerformance CoE

•

Outlining the organizational impacts of buildingPerformance CoE

•Specifying the required hardware, software, andhuman resources needed

•Determining the high-level milestones and timelin

•Calculating the expected value from the PerformCoE in terms of cost savings and processimprovements

ScopeIn this phase, the organization determines the focuof the Performance CoE and defines the exact con

of specific implementation iteration For example, could choose to focus the Performance CoE on onparticular stage of the application lifecycle, suchas application development—and implement thetechnology and resources needed to support thatstage Or it could focus on a particular activity, suas capacity planning Or it could choose to focus the needs of a particular business unit and prototythe Performance CoE for that unit as a pilot that calater be rolled out to other areas of the company

DesignThe design step focuses on the detailed planning t

meet the scope as defined in the previous stage Athis stage, the outlines of the roadmap prepared inassessment phase are created through a detailed synchronizing the activities of all players

The first step is to assemble a cross-functionalteam chartered with identifying the process andorganizational impacts of the Performance CoE,defining roles, and detailing available resources



Once an initial implementation roadmap hasbeen developed, the team builds a detailed plansynchronizing the activities of all players involved

All of the organizational and process changesare detailed and planned Change managementspecialists may be called on to play a role inspecifying how to plan and implement theprocess changes

The design plan, detailing the CoE architecture andthe implementation plan, is constructed across:

•Integration: How the CoE interfaces with projects,management, service providers, and otherperformance-related and/or quality initiatives

•Staff: Hiring and internal reassignment

•Training: On HP products, third-party software, andpolicies and procedures

•Infrastructure implementation: Installation ofhardware and software, service provisioning

•Communications: Internal communications explainingand promoting the CoE

•

Methodology development: Policies, procedures,processes, and best practices for implementingbusiness technology optimization

•Time and cost estimates

ImplementImplementation deals with the setup of specificPerformance CoE services An organization may havethe resources in place to address implementationissues, or it may prefer to enlist the assistance of HPServices, which has helped thousands of companieswith this stage over the years

During the actual implementation stage, resourcesare assigned; the tools and environment are setup; the team receives the required training; processand organizational changes are applied; and thePerformance CoE services are marketed withinthe company

As the Performance CoE actually begins itsoperations, performance-related projects are identifiedand Performance CoE resources and services aredelivered according to the defined methodologyand processes

As part of this stage, the Performance CoE:•Monitors and reports the value created by

Performance CoE services and measures thesuccess of the Performance CoE against the metricsestablished during the planning phase (as statedearlier, these reports go up to senior managementand down/across to project teams)

•Provides user support, communicates with andeducates end-users about the services offered,processes and procedures to be followed, and hto measure the value created

•Maintains and enhances the hardware, softwareand services infrastructure as required

Validate As the results of ongoing management accrue andvalidate the successes or required improvements, tPerformance CoE uses the information as the basiongoing iterations

Validation is an essential step in managing thePerformance CoE implementation and growth bason the value-driven goals In the validation stage, measurable objectives set forth during the assessmphase are compared against actual achievementsIn this stage, the implementation experience issummarized to allow it to be preserved withinformation on best practices and methodology

Expand and ExtendOnce an organization experiences the value of thPerformance CoE model through one iteration, it cproceed to the next one—either expanding a servthat already exists, implementing another type ofcapability, or extending service coverage to new of the organization

In many cases, there are some centralized activitievarious areas of the company already—for exampPerformance CoE focused on performance validator defect management If this is the case, it is advito formalize the activities and processes between individual centers as their capabilities grow

Another approach is to start by using the PerformaCoE model to resolve one specific critical issue(for example, sub-optimal J2EE applicationperformance), then:

•Gradually build up the resources and capabilitiethe Performance CoE to performance optimizatioprocesses and techniques on a project basis(pre-empt performance issues through processconsistency)

•Extend the Performance CoE model to other aresuch as capacity planning, code optimization,

and so on•Ramp up to standardized processes and solution

throughout the enterprise



HP Performance Center: An integrated solutionHP Performance Center offers the first lifecycle

approach to optimizing application performance Itincludes an integrated set of applications designedto automate key performance optimization processes,such as testing and tuning, bottleneck identification,capacity planning, and diagnostics It includes:

•HP Performance Center software:

−Generates consistent, measurable, and repeatableload tests from a single point of control

− Allows you to replace real users with thousandsof virtual users, and it isolates performancebottlenecks across all tiers and layers

−Manages all of your performance testing assetsand schedules your tests, all through a single

Web interface

•HP Diagnostics software:

−Provides technology-specific products that dive allthe way down to the code level to resolve issuesin J2EE, NET, Oracle, PeopleSoft, SAP, Siebel,and so on

•HP Center Management for Performance Centersoftware:

−Provides the ability to manage projects from

conception to completion−Enables scheduling of the projects and the

employee assets to the projects

−Has a high-level dashboard that managersand executives can use to follow the status ofthe projects

Top CIO questions about thePerformance CoE modelQ: How do I facilitate quick results?

A: Focus on the services that will resolve recurringissues, such as performance benchmarking anbottleneck identification by using the iterativeapproach (2-3 months per iteration)

Q: What level of investment will be required? A: Organizations can often use existing technolog

and people and augment them to function withPerformance CoE

Q: How do I facilitate adoption of the PerformancCoE concept?

A: Find a project team that is open to the idea, fin

success stories that address a need of this projand use your own success story to market the von completion of the project

Q: How do I prevent disruptions to the organizatiodaily operation?

A: The initial focus on critical issues will alignPerformance CoE services with daily operationeasily At the same time, the Performance CoEshould be flexible enough to support specificproject requirements and culture before it is useas the foundation for standardizing enterpriseprocesses

Q: How do I use the Performance CoE model tocompete with the alternative service providers?

A: Make certain that your processes are better anmeasure them with KPIs that impact your busin



Q: How do I demonstrate value of the PerformanceCoE?

A: It is essential to measure Performance CoE impacton the projects and Performance CoE effectivenessSome KPIs can include project improvement—response time improvement, reliabilityimprovement, infrastructure reduction—as well asCoE efficiency—projects per person, project time,cost of project, and so on

Summary: 10 tips for building andmanaging a Performance CoE1 The earlier you plug into development and delivery

processes the easier it is to deliver value to yourinternal customers

2 The fastest path to success is to begin withperformance testing and bottleneck managementIt is very easy to show value practically from thefirst projects

3 Internal selling is essential It is not enough to bethe best technical team You need to communicate

and prove your value to your organization4 You need to define your value proposition to

compete for the projects where alternativeproviders may be under consideration Theemphasis in early projects will be the cost andspeed of your services

5 It is essential to leverage existing investmentsin technology, processes, and people whenbuilding a Performance CoE Consolidating thebest resources and making it work for the entirorganization will be much more efficient andvaluable than “from scratch” implementation amassive organizational change

6 Robust infrastructure and automation platformsessential to the success of the Performance CoESimply having good processes will not prove t

you do the job better than any other internal aexternal competitor

7 Knowledge accumulation is critical for servicessuch as bottleneck identification and performatuning You will need to ensure that every memof the CoE reports all the findings in these area

8 Measurements collection and visualizationshould be automated to be truly efficient and toprovide the required visibility This is importantcontrolling the value of the Performance CoE aalso proving the value to the outside world

9 You need to provide your customers with highvisibility into your progress, status, and findingLack of information drives customer dissatisfact

10 The goal is to standardize processes and practo enable the lowest cost and the highest efficieso you are “easy to do business with” This mehaving flexibility to adapt your approach and capabilities to the customer’s project frameworand culture



Technology for better business outcomes

o learn more, visit http://wwwhpcom/go/performancevalidation© Copyright 2007, 2009 Hewle tt-Packard Development Company, LP The information contained herein

subject to change without notice The only warranties for HP products and services are set forth in thexpress warranty statements accompanying such products and services Nothing herein should be construeds constituting an additional warranty HP shall not be liable for technical or editorial errors or omissionsontained herein

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APPS Building a Performance COE 4AA1 7175ENW