Becoming Agile: Transforming with Collaborative Lifecycle Management11:20 a.m. -12:00 p.m.

Speakers include: • Michael O’Rourke, Vice President, Rational Strategy & Software Delivery, IBM

An IBM TransformationBecoming Agile, Avoiding Fragile

Mike O’RourkeVice President

Rational Offering Strategy and DeliveryFeb 2013

Agenda

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The IBM Institute of Business Value Study (IBV)A Shared Business Problem

The Need for Speed:Accelerated Product and Service Delivery

Agility at Scale

Measuring Agile – Two Winds Blowing

Source:IBV Study 2012

“The software edge: How effective software development can drive competitive advantage ” A Market Study by the IBM Institute for Business Value

This study examined the correlation between software delivery competency and industry competitive advantage

Insights from 435 executives in 58 countries, spanning 18 industries

Roles included executives at director level and above in IT and other software organizations

Software delivery refers to all areas of development, operations, and support within IT and other development / engineering organizations

“Advanced Software Organizations” - a class of “mature” clients differentiated from their peers through

their effectiveness in driving results and outcomes through software delivery.

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Financial Services

Retail

Telecommunications

Travel & Transportation

Government

Pharmaceutical/L.S.

Automotive

Industry Average

Professional Services

Consumer Products

Industrial Products

Energy & Utilities

Level of

Soft

ware

In

ten

sity

More software intensive

Less software intensive

62%

62% of government clients identified software as “crucial”

to exceptional performance

Source:IBV Study 2012 69% of the organizations that are considered

outperformers are able to effectively leverage their software delivery

capabilities.

The IBV study found that software delivery is critical to achieving maximum performance

High-level key findings:

Important technology trends are impacting how organizations compete, for which most are underprepared

Software has become crucial in determining the competitiveness of organizations, yet few can leverage it for advantage

Fundamental differences exist between what lines of business expect, and what the IT/software organization can deliver

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Source:IBV Study 2012

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From delivering government services to protection and public safety Software innovation helps improve the quality of life for citizens

54% of executives recognize that software delivery is crucial to achieving competitive advantage, but only

25% of software delivery organizations state they can take advantage of it.

Software-driven government

Growing demand for digital government services. By 2013, more Americans will access the internet via mobile devices

than desktop PC’s

234 million people in the U.S. over age 13 use a mobile device, and 65 million own a

smart phone

Complex and instrumented world

F-35 is powered by 5.7 million lines of code (v. 1.7 in the F-22)

21 million smart meters are deployed in the U.S.

Surgical robotic systems are powered by 1.4 million lines of codeSources: whitehouse.gov digital government mandate; http://www.whitehouse.gov/sites/default/files/omb/egov/digital-government/digital-government.html

The Australian Software Acquisition Management Course, Defense Systems Management College, 3/2000; http://analysis.smartgridupdate.com/industry-insight/could-us-have-universal-smart-grid; http://surgrob.blogspot.com/2009/02/da-vinci-s-robot-2.html;

http://en.wikipedia.org/wiki/Enterprise_mobility_management

Created by David Puzas, WW Marketing Executive for IBM Enterprise Services, 2007.

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Bottom Line: Insufficient spend on strategic projects

Source:IBV Study 2012

29% have insufficient budget to invest in additional software capabilities

Quality

Cost

Time-to-Market

Three Major Areas of Improvement Required

Organize differently

Develop differently

Deliver differently

Measure differently

We Needed to Do Things Differently ------- FAST!

Agenda

10

The IBM Institute of Business Value Study (IBV)A Shared Business Problem

The Need for Speed:Accelerated Product and Service Delivery

Agility at Scale

Measuring Agile – Two Winds Blowing

In Production

Cre

ative

Be

ha

vior

Pro

ced

ura

l Rig

or

Requirements

Design

Coding

Release

Change Manage

Build & IntegrateChange m

anage

Test

Unit test

Development

AnalysisDesign

Automation

Code/test Automation

Platform

Production Automation

Platform

ConsumersUsers

In Production

Cre

ative

Be

ha

vior

Pro

ced

ura

l Rig

or

DevelopmentCommon

Software Delivery Automation

AnalysisDesignCode

Automation

SoftwareDelivery

Automation

Maintain

Improving Time to Market Isn’t Just Doing Things Faster

Stove-pipedTools

Collaborative Lifecycle Platform

Where You Are

Where You Want To Be

Implications

• Automation Across the Lifecycle

• Constant Planning • Agile Testing• Continuous Delivery

• Agile Stakeholder Interaction

• Methodologies for Scope Management

Key challenges to accelerating software delivery

• 31% lack of employee skills with new software technologies

• 31% lack of certainty about ROI

• 29% have insufficient budget to invest in additional software capabilities

• 27% believe it is too much effort to maintain current applications leaving little for strategic projects

• 22% have insufficient processes for defining strategic business capabilities and the needed software capabilities

• 22% of software delivery programs are not aligned with business priorities

• Lack of effective communication and linkage across stakeholders/citizens, LOB/agency, development teams, and operations

Skills

Investments

Alignment

Collaboration

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Source: IBV Study 2012

Key Thoughts? Can you Become Agile?

Source: Q4 2010 Global Release Management Online survey

TTD: Time To Development

TTP: Time To Production

How long to change a single line of code and push to

production?

44% find that very simple deployments take 1+ week

How long from a change request

to start development?

57% take longer than a month for development to begin

For Many, the Benefits of Agile Aren’t Fully Realized

Water Scrum Fall

Continuous PlanningContinuous Development

Continuous IntegrationContinuous Feedback

Continuous TestingContinuous Delivery

Continuous BuildGroomed Backlog

We believe over 90% of all companies claiming to have adopted agile methodologies, have only transformed their development teams, minimizing their overall return…thus, our term “Water-

Scrum-Fall”. Dave West, Forrester Research 2011

For Many, the Benefits of Agile Aren’t Fully Realized

An iterative set of quality checks and verifications that each piece of application code must pass during lifecycle phases before being released to production.

Development Testing Staging Production

Business Owners

Customers

Continuous Delivery

Development, Testing and Staging Cloud

Continuous Delivery Required for Agile Backend

Average Lead Time

Bugs Introduced

To get a new application environment up and running

By inconsistent configurations that are difficult to detect and emerge when moving between development, QA/Test and Production

2-4months

30%

50% of applications put into production are later rolled back (Gartner)

60% - 80% of an average company’s IT budget is spent on maintaining existing applications (Intelligent Enterprise.com)

Need for Speed - Avoiding Fr-Agile Potholes

Faster Iterations in Development with Faster Product Management and Testing / Deployment will Yield Little Increased Speed

Anything Manual is a Potential Bottleneck

Some Products are not Suitable for Speed Architecturally

Stakeholder Interaction Become Exponentially More Difficult in a Software Supply Chain

An Example from Within Rational – CLM (RQM, RTC and RRC)

Lifecycle Measurements

2008 2010 2012 – 2013

Total Improvement

Project Initiation 30 days 10 days 2 days 28 days

Groomed Backlog 90 days 45 days 1 day 89 days

Overall TTD 120 days 55 days 3 days 117 days

Iteration Length 6 weeks 4 weeks 4 weeks 4 weeks

Number of Iterations 6 8 3 N / A

Composite Build Time 36 hours 12 hours 8 hours 400 %

BVT Availability N / A 18 hours < 1hour 17 hours

Iteration Test Time 5 days 2 days 4 hours 4 days

Total Deployment Time 2 days 8 hours 2 hours 2 days

Overall TTP 9 days 3 days 15 hours 8 days

Time Between Releases 12 Months 12 Months 3 Months 9 Months

Agenda

19

The IBM Institute of Business Value Study (IBV)A Shared Business Problem

The Need for Speed:Accelerated Product and Service Delivery

Agility at Scale

Measuring Agile – Two Winds Blowing

Domain Complexity

Straight-forward

Intricate,emerging

Compliance requirement

Low risk Critical,audited

Team size

Under 10developers

1000’s ofdevelopers

Co-located

Geographical distribution

Global

Enterprise discipline

Projectfocus

Enterprisefocus

Technical complexity

HomogenousHeterogeneous,

legacy

Organization distribution(outsourcing, partnerships)

Collaborative Contractual

Disciplined Agile

Delivery

Flexible Rigid

Organizational complexity

Issues With Agility@Scale

toolsIncreasing control

by integrating workflows and “forcing”

new habits

Continuously improvethrough real-time

transparency and constant steering

OptimizationIntegrationOptimizing how

people work while minimizing face-to-face interactions

Collaboration

Three Fundamental Changes Were Needed

• Integration is required for automation, especially across disciplines and repositories.

• Both teams and management must understand progress (or lack thereof).

• When speed is important, tools must assist in collaboration. Scrum of scrums will not suffice.

Productivity Reigns Supreme – Put people in right places

On-Site / Agency HQ

(Washington DC)

Partner Site(McLean, VA)

Agency Satellite

(Kansas City)

Analysis Design Construction

Function & Performance

TestComponent

TestDeployment Project

Management

100%

40%

60%

70%

30%

60%

40% 20% 20%

20%

60%100% 80%

Drive innovation in government through the delivery of higher quality products and servicesIT and mission alignment are critical to accelerated delivery

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GovernanceStakeholders

• Achieve predictable outcomes

• Manage risk

• Ensure compliance

• Improve software economics

• Provide visibility

• Design, create, test

• Reuse knowledge, best practices

• Address uncertain things first

• Be adaptive to change

EngineeringPractitioners

Embrace Measurement

Enable Agility

The Speed Of Trust

Source:IBV Study 2012 41% of IT executives believe they deliver projects with

high value and ROI, while only 9% of line of business executives

agree.

Agile Governance = Removing the Illusion of Control Ten Lessons We Had to Teach Our Executives

1. Our ideas of how to improve, while interesting, don’t matter. Look outside.2. Functional organizations aren’t functional in agile. 3. A completion date is not a point in time, it is a probability distribution.4. “That’s the Way we’ve Always Done Business” – Probably Makes it Wrong.5. It’s Not Just About Developers. Truly the smallest problem.6. Scope is not a requirements document, it is a continuous negotiation.7. Fostering Local Optimization Leads to Global Failure.8. Evaluating and Rewarding Individual Behavior Creates Individual Thinking.9. Silver Bullet Thinking - Equating Productivity and Agile – Bad.10. A plan is not a prescription, it is an evolving, moving target.

Strategy

Portfolio

Product

Project

Iteration

Daily

Agile Teams Plan at Innermost Level

“Required” at all levels

Must have ability to “view / plan” across an entire project / product

The Planning Onion – Critical for Continued Management Support

Agility@Scale - Avoiding Fr-Agile Potholes

Transparency is the key to maintaining successful team concepts at scale

Automation and meaningful Integrations help manage project / products rather than features / components

Tools must carry additional burdens in this new “ways of working”

Collaboration Real-time feedback Built in measurements Process for lightweight – heavyweight enforcement

Agenda

27

The IBM Institute of Business Value Study (IBV)Our Shared Business Problem

The Need for Speed:Accelerated Product and Service Delivery

Agility at Scale

Measuring Agile – Two Winds Blowing

Measuring Agile Activities, Not Business Outcomes

A Structured Approach to Adopting Agile Practices: The Agile Adoption Framework – Ahmed Sidky

Metrics and Techniques to Guide Software Development – Subhajit Datta Agility Index Measurement – David Bock The Agile Manifesto – M. Fowler, J. Highsmith Agile Software Development Joins the “Would-Be” Crowd, A. Cockburn Assessing Agility – Dr. Peter Lappo, Henry C.T. Andrew Towards a Conceptual Framework of Agile Methods: A Study of Agile oin

Different Disciplines - Kieran Conboy, Brian Fitzgerald

CMMI Level 5 Third Parties Delivering Poor Products

Surgeon Following Textbook, But the Patient Dies

Similar Concepts

1.Transparency Across the Development Lifecycle

2.“Force” Best Practices for Methodologies

3.Assist in Silos Becoming Teams

4.Information When Needed

Help Teams Do the Right Thing

Help Teams Do the Right Thing

Two Kinds of “Good Metrics”

1. Portfolio: Projects and Programs

2. Informational Measurements

3. Trends and Checkpoints

4. Distributed Team Performance

Help Management Run the Business

Help Management Run the Business

Key Measurements for Helping Teams Do the Right Things

What is Done (Before Code is Written)

Team Velocity (Story / Function Points Delivered)

Running and Tested Features

Project Burndown Chart

Team Member Loading

Unit Tests per User Story

Successful Builds per Iteration

Defects Carried Over to Next Iteration

Most Team Measurements are Good for Teams on Projects to Measure Progress, but should NOT be Imposed or Measured Cross-Team

In Planning

With TechnicalProgress

Forcing Modularity

UnderstandingMaturity

ControllingCosts

Best Practices for Helping Management Run the Business

ArchitectedFor Change

• Reqts Test cases• Running and tested features • Risk Tracking vs Plan Items• Project progress reports

• Variance in completion date• Release - release accuracy• Stakeholder confidence• Project’s business value

• Pairwise story prioritization• Groomed backlog• Builds per iteration• Demonstrable capabilities

• Scope creep• Average cost of change• Refactoring efforts• Design changes

• Change volume• Scope volatility• Locality of changes• Unit tests per user story

• Cost of poor quality• Defect escapes & classes• Defect causes and ages• Regression test efficiency

Note: Goals are either internal IBM statistics or industry benchmarks.

Metric Goal2006

Measurement2011

Measurement

Maintenance / Innovation 50/50 42% / 58% 31% / 69%

Customer Touches / Product 100 ~10 ~ 400

Customer Calls -5% YoY ~ 135,000 ~86,000(-14% since 2010)

Customer Defect Arrivals -15% YoY ~ 6,900 ~2200

On Time Delivery 65% 47% 94%

Defect Backlog 3 Months 9+ Months 3 months

Enhancements Triaged 85% 3% 100%

Enhancements into Release 15% 1% 21%

Customer Sat Index 88% 83% 88%

Beta Defects Fixed Before GA 50% 3% 85%

Cost of Poor Quality ~ $10,000,000 ~ $5,600,000(-13% since 2010)

Rational’s Rewards

We would like to see more of you! Come visit us and learn more about our solutions in the

exhibit hall at Pedestal 9 Rational Collaborative Lifecycle Management Quality Management Dev Test for System z Learn more about the Results of the IBV Study

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For a follow up discussion, complete the IBM Response Card on the table in front of you.

Join the Webcast on February 19 at 2 PM ET Realizing agility with discipline: Addressing the needs of agile

adoption in a government environment http://ibm.co/agilegovwebcast

Join the Agile Community and learn about the upcoming Agile Government Virtual Roundtable http://ibm.co/beagile

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Mike O’RourkeIBM Vice President,

Rational Offering Strategy and Delivery

Thank You !