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Lean IT Lean IT is the extension of lean manufacturing and lean services principles to the development and management of information technology (IT) products and services. Its central concern, applied in the context of IT, is the elim- ination of waste, where waste is work that adds no value to a product or service. [1] Although lean principles are generally well established and have broad applicability, their extension from manu- facturing to IT is only just emerging. [2] Indeed, Lean IT poses significant challenges for practitioners while raising the promise of no less significant benefits. And whereas Lean IT initiatives can be limited in scope and deliver re- sults quickly, implementing Lean IT is a continuing and long-term process that may take years before lean princi- ples become intrinsic to an organization’s culture. [3] 1 Extension of Lean to IT As lean manufacturing has become more widely imple- mented, the extension of lean principles is beginning to spread to IT (and other service industries). [4] Industry an- alysts have identified many similarities or analogues be- tween IT and manufacturing. [4][5] For example, whereas the manufacturing function manufactures goods of value to customers, the IT function “manufactures” business services of value to the parent organization and its cus- tomers. Similar to manufacturing, the development of business services entails resource management, demand management, quality control, security issues, and so on. [5] Moreover, the migration by businesses across virtually every industry sector towards greater use of online or e- business services suggests a likely intensified interest in Lean IT as the IT function becomes intrinsic to busi- nesses’ primary activities of delivering value to their cus- tomers. Already, even today, IT’s role in business is sub- stantial, often providing services that enable customers to discover, order, pay, and receive support. IT also pro- vides enhanced employee productivity through software and communications technologies and allows suppliers to collaborate, deliver, and receive payment. Consultants and evangelists for Lean IT identify an abun- dance of waste across the business service “produc- tion line”, including legacy infrastructure and fractured processes. [5] By reducing waste through application of lean Enterprise IT Management (EITM) strategies, CIOs and CTOs in companies such as Tesco, Fujitsu Services, and TransUnion are driving IT from the confines of a back-office support function to a central role in delivering customer value. [6] 2 Types of Waste in Lean IT Lean IT promises to identify and eradicate waste that oth- erwise contributes to poor customer service, lost busi- ness, higher than necessary business costs, and lost em- ployee productivity. To these ends, Lean IT targets eight elements within IT operations that add no value to the fin- ished product or service or to the parent organization (see Table 1). Whereas each element in the table can be a signifi- cant source of waste in itself, linkages between ele- ments sometimes create a cascade of waste (the so-called domino effect). For example, a faulty load balancer (waste element: Defects) that increases web server re- sponse time may cause a lengthy wait for users of a web application (waste element: Waiting), resulting in exces- sive demand on the customer support call center (waste element: Excess Motion) and, potentially, subsequent visits by account representatives to key customers’ sites to quell concerns about the service availability (waste el- ement: Transportation). In the meantime, the company’s most likely responses to this problem — for example, introducing additional server capacity and/or redundant load balancing software), and hiring extra customer sup- port agents — may contribute yet more waste elements (Overprovisioning and Excess Inventory). 3 Lean IT Principles 3.1 Value Streams In IT, value streams are the services provided by the IT function to the parent organization for use by cus- tomers, suppliers, employees, investors, regulators, the media, and any other stakeholders. These services may be further differentiated into: Business services (primary value streams) Examples: point-of-sale transaction processing, ecommerce, and supply chain optimization IT services (secondary value streams) 1

Lean IT

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Metodología basada en el pensamiento Lean Manufacturing, pero enfocada en el área de TI (Versión en Inglés).

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Lean IT

Lean IT is the extension of lean manufacturing and leanservices principles to the development and managementof information technology (IT) products and services. Itscentral concern, applied in the context of IT, is the elim-ination of waste, where waste is work that adds no valueto a product or service.[1]

Although lean principles are generally well establishedand have broad applicability, their extension from manu-facturing to IT is only just emerging.[2] Indeed, Lean ITposes significant challenges for practitioners while raisingthe promise of no less significant benefits. And whereasLean IT initiatives can be limited in scope and deliver re-sults quickly, implementing Lean IT is a continuing andlong-term process that may take years before lean princi-ples become intrinsic to an organization’s culture.[3]

1 Extension of Lean to IT

As lean manufacturing has become more widely imple-mented, the extension of lean principles is beginning tospread to IT (and other service industries).[4] Industry an-alysts have identified many similarities or analogues be-tween IT and manufacturing.[4][5] For example, whereasthe manufacturing function manufactures goods of valueto customers, the IT function “manufactures” businessservices of value to the parent organization and its cus-tomers. Similar to manufacturing, the development ofbusiness services entails resource management, demandmanagement, quality control, security issues, and so on.[5]

Moreover, the migration by businesses across virtuallyevery industry sector towards greater use of online or e-business services suggests a likely intensified interest inLean IT as the IT function becomes intrinsic to busi-nesses’ primary activities of delivering value to their cus-tomers. Already, even today, IT’s role in business is sub-stantial, often providing services that enable customersto discover, order, pay, and receive support. IT also pro-vides enhanced employee productivity through softwareand communications technologies and allows suppliers tocollaborate, deliver, and receive payment.Consultants and evangelists for Lean IT identify an abun-dance of waste across the business service “produc-tion line”, including legacy infrastructure and fracturedprocesses.[5] By reducing waste through application oflean Enterprise IT Management (EITM) strategies, CIOsand CTOs in companies such as Tesco, Fujitsu Services,and TransUnion are driving IT from the confines of a

back-office support function to a central role in deliveringcustomer value.[6]

2 Types of Waste in Lean IT

Lean IT promises to identify and eradicate waste that oth-erwise contributes to poor customer service, lost busi-ness, higher than necessary business costs, and lost em-ployee productivity. To these ends, Lean IT targets eightelements within IT operations that add no value to the fin-ished product or service or to the parent organization (seeTable 1).Whereas each element in the table can be a signifi-cant source of waste in itself, linkages between ele-ments sometimes create a cascade of waste (the so-calleddomino effect). For example, a faulty load balancer(waste element: Defects) that increases web server re-sponse time may cause a lengthy wait for users of a webapplication (waste element: Waiting), resulting in exces-sive demand on the customer support call center (wasteelement: Excess Motion) and, potentially, subsequentvisits by account representatives to key customers’ sitesto quell concerns about the service availability (waste el-ement: Transportation). In the meantime, the company’smost likely responses to this problem — for example,introducing additional server capacity and/or redundantload balancing software), and hiring extra customer sup-port agents — may contribute yet more waste elements(Overprovisioning and Excess Inventory).

3 Lean IT Principles

3.1 Value Streams

In IT, value streams are the services provided by theIT function to the parent organization for use by cus-tomers, suppliers, employees, investors, regulators, themedia, and any other stakeholders. These services maybe further differentiated into:

• Business services (primary value streams)

Examples: point-of-sale transaction processing,ecommerce, and supply chain optimization

• IT services (secondary value streams)

1

2 4 IMPLEMENTATION OF LEAN IT

Examples: application performance management, databackup, and service catalogThe distinction between primary and secondary valuestreams is meaningful. Given Lean IT’s objective of re-ducing waste, where waste is work that adds no value to aproduct or service, IT services are secondary (i.e. subor-dinate or supportive) to business services. In this way, ITservices are tributaries that feed and nourish the primarybusiness service value streams. If an IT service is notcontributing value to a business service, it is a source ofwaste. Such waste is typically exposed by value-streammapping.

3.2 Value-Stream Mapping

Lean IT, like its lean manufacturing counterpart, involvesa methodology of value-streammapping[7]—diagram-ming and analyzing services (value streams) into theircomponent process steps and eliminating any steps (oreven entire value streams) that don’t deliver value.

3.3 Flow

Flow relates to one of the fundamental concepts of Leanas formulated within the Toyota Production System —namely, mura. A Japanese word that translates as “un-evenness,” mura is eliminated through just-in-time sys-tems that are tightly integrated. For example, a serverprovisioning process may carry little or no inventory (awaste element in Table 1 above) with labor and materialsflowing smoothly into and through the value stream.A focus on mura reduction and flow may bring benefitsthat would be otherwise missed by focus on muda (theJapanese word for waste) alone. The former necessitatesa system-wide approach whereas the latter may producesuboptimal results and unintended consequences. For ex-ample, a software development team may produce codein a language familiar to its members andwhich is optimalfor the team (zero muda). But if that language lacks anAPI standard by which business partners may access thecode, a focus on mura will expose this otherwise hiddensource of waste.

3.4 Pull/Demand System

Pull (also known as demand) systems are themselvesclosely related to the aforementioned flow concept. Theycontrast with push or supply systems. In a pull system,a pull is a service request. The initial request is fromthe customer or consumer of the product or service. Forexample, a customer initiates an online purchase. Thatinitial request in turn triggers a subsequent request (forexample, a query to a database to confirm product avail-ability), which in turn triggers additional requests (inputof the customer’s credit card information, credit verifica-

tion, processing of the order by the accounts department,issuance of a shipping request, replenishment through thesupply-chain management system, and so on).Push systems differ markedly. Unlike the “bottom-up,” demand-driven, pull systems, they are “top-down,”supply-driven systems whereby the supplier plans or esti-mates demand. Push systems typically accumulate largeinventory stockpiles in anticipation of customer need. InIT, push systems often introduce waste through an over-abundance of “just-in-case” inventory, incorrect productor service configuration, version control problems, and in-cipient quality issues.[5]

4 Implementation of Lean IT

Implementation begins with identification and descriptionof one or more IT value streams.[8] For example, aided byuse of interviews and questionnaires, the value stream fora primary value stream such as a point-of-sale businessservice may be described as shown in Table 2.Table 2 suggests that the Executive Vice President (EVP)of Store Operations is ultimately responsible for thepoint-of-sale business service, and he/she assesses thevalue of this service using metrics such as CAPEX,OPEX, and check-out speed. The demand pulls or pur-poses for which the EVPmay seek these metrics might beto conduct a budget review or undertake a store redesign.Formal service-level agreements (SLAs) for provision ofthe business service may monitor transaction speed, ser-vice continuity, and implementation speed. The table fur-ther illustrates how other users of the point-of-sale ser-vice — notably, cashiers and shoppers — may be con-cerned with other valuemetrics, demand pulls, and SLAs.Having identified and described a value stream, imple-mentation usually proceeds with construction of a valuestream map — a pictorial representation of the flow ofinformation, beginning with an initial demand request orpull and progressing up the value stream. Although valuestreams are not as readily visualizable as their counter-parts in lean manufacturing, where the flow of materialsis more tangible, systems engineers and IT consultantsare practiced in the construction of schematics to rep-resent information flow through an IT service.[5] To thisend, theymay use productivity software such asMicrosoftVisio and computer-aided design (CAD) tools. How-ever, alternatives to these off-the-shelf applications maybe more efficient (and less wasteful) in the mapping pro-cess.One alternative is use of a configuration managementdatabase (CMDB),[12] which describes the authorizedconfiguration of the significant components of an IT en-vironment. Workload automation software, which helpsIT organizations optimize real-time performance of com-plex business workloads across diverse IT infrastructures,and other application dependency mapping tools can be

5.3 Green IT 3

an additional help in value stream mapping.[13]

After mapping one or more value streams, engineers andconsultants analyze the stream(s) for sources of waste.The analysis may adapt and apply traditional efficiencytechniques such as time-and-motion studies as well asmore recent lean techniques developed for the ToyotaProduction System and its derivatives. Among likely out-comes are methods such as process redesign, the estab-lishment of “load-balanced” workgroups (for example,cross-training of software developers to work on diverseprojects according to changing business needs), and thedevelopment of performance management “dashboards”to track project and business performance and highlighttrouble spots.[3]

5 Trends towards Lean IT

5.1 Recessionary Pressure to ReduceCosts

The onset of economic recession in December 2007[14]was marked by a decrease in individuals’ willingness topay for goods and services[15] — especially in face of un-certainty about their own economic futures. Meanwhile,tighter business and consumer credit,[16] a steep declinein the housing market,[17] higher taxes,[18] massive lay-offs,[19] and diminished returns in the money and bondmarkets[20] have further limited demand for goods andservices.When an economy is strong, most business leaders focuson revenue growth. During periods of weakness, whendemand for good and services is curbed, the focus shifts tocost-cutting.[6] In-keeping with this tendency, recessionsinitially provoke aggressive (and somes panic-ridden) ac-tions such as deep discounting, fire sales of excess inven-tory, wage freezes, short-time working, and abandonmentof former supplier relationships in favor of less costlysupplies. Although such actions may be necessary andprudent, their impact may be short-lived.[15] Lean IT canexpect to garner support during economic downturns asbusiness leaders seek initiatives that deliver more endur-ing value than is achievable through reactive and general-ized cost-cutting.[21]

5.2 Proliferation of Online Transactions

IT has traditionally been a mere support function of busi-ness, in common with other support functions such asshipping and accounting. More recently, however, com-panies have moved many mission-critical business func-tions to the Web.[22] This migration is likely to acceler-ate still further as companies seek to leverage investmentsin service-oriented architectures, decrease costs, improveefficiency, and increase access to customers, partners,and employees.[23]

The prevalence of web-based transactions is driving aconvergence of IT and business.[24] In other words, ITservices are increasingly central to the mission of provid-ing value to customers. Lean IT initiatives are accord-ingly becoming less of a peripheral interest and more ofan interest that is intrinsic to the core business.

5.3 Green IT

Though not born of the same motivations, Lean IT ini-tiatives are congruent with a broad movement towardsconservation and waste reduction, often characterized asgreen policies and practices. Green IT is one part of thisbroad movement.[25]

Waste reduction directly correlates with reduced energyconsumption and carbon generation. Indeed, IBM as-serts that IT and energy costs can account for up to 60%of an organization’s capital expenditures and 75% of op-erational expenditures.[26] In this way, identification andstreamlining of IT value streams supports the measure-ment and improvement of carbon footprints and othergreen metrics.[27] For instance, implementation of LeanIT initiatives is likely to save energy through adoptionof virtualization technology and data center consolida-tion.[28][29]

6 Challenges for Lean IT

6.1 Value-Stream Visualization

Unlike leanmanufacturing, fromwhich the principles andmethods of Lean IT derive, Lean IT depends upon valuestreams that are digital and intangible rather than physi-cal and tangible. This renders difficult the visualizationof IT value streams and hence the application of Lean IT.Whereas practitioners of lean manufacturing can applyvisual management systems such as the kanban cards usedin the Toyota Production System, practitioners of LeanIT must use Enterprise IT Management tools to help vi-sualize and analyze the more abstract context of IT valuestreams.[30]

6.2 Reference Implementations

As an emerging area in IT management (see Deploymentand Commercial Support), Lean IT has relatively few ref-erence implementations. Moreover, whereas much ofthe supporting theory and methodology is grounded inthe more established field of lean manufacturing, adap-tation of such theory and methodology to the digitalservice-oriented process of IT is likewise only just be-ginning. This lack makes implementation challenging, asevidenced by the problems experienced with the March2008 opening of London Heathrow Airport’s Terminal

4 7 DEPLOYMENT AND COMMERCIAL SUPPORT

5. Brtish airports authority BAA and airline British Air-ways (BA), which has exclusive use of the new termi-nal, used process methodologies adapted from the mo-tor industry to speed development and achieve cost sav-ings in developing and integrating systems at the newterminal.[31] However, the opening was marred by bag-gage handling backlogs, staff parking problems, and can-celled flights.[32]

6.3 Resistance to Change

The conclusions or recommendations of Lean IT initia-tives are likely to demand organizational, operational,and/or behavioral changes that may meet with resistancefrom workers, managers, and even senior executives.Whether driven by a fear of job losses, a belief that exist-ing work practices are superior, or some other concern,such changes may encounter resistance. For example,a Lean IT recommendation to introduce flexible staffingwhereby application development and maintenance man-agers share personnel is often met with resistance by in-dividual managers who may have relied on certain peoplefor many years. Also, existing incentives andmetrics maynot align with the proposed staff sharing.[3][33]

6.4 Fragmented IT Departments

Even though business services and the ensuing flow of in-formation may span multiple departments, IT organiza-tions are commonly structured in a series of operationalor technology-centric silos, each with its own manage-ment tools and methods to address perhaps just one par-ticular aspect of waste. Unfortunately, fragmented effortsat Lean IT contribute little benefit because they lack theintegration necessary to manage cumulative waste acrossthe value chain.[5]

6.5 Integration of Lean Production andLean Consumption

Related to the aforementioned issue of fragmented IT de-partments is the lack of integration across the entire sup-ply chain, including not only all business partners but alsoconsumers. To this end, Lean IT consultants have re-cently proposed so-called lean consumption of productsand services as a complement to lean production.[34] Inthis regard, the processes of provision and consumptionare tightly integrated and streamlined to minimize totalcost and waste and to create new sources of value.

7 Deployment and CommercialSupport

Deployment of Lean IT has been predominantly limitedto application development and maintenance (ADM).This focus reflects the cost of ADM.[5] Despite atrend towards increased ADM outsourcing to lower-wageeconomies,[35] the cost of developing and maintaining ap-plications can still consume more than half of the totalIT budget.[3] In this light, the potential of Lean IT to in-crease productivity by as much as 40% while improvingthe quality and speed of execution[3] makes ADM a pri-mary target (the “low-hanging fruit,” so to speak) withinthe IT department.Opportunity to apply Lean IT exists in multiple other ar-eas of IT besides ADM. For example, service catalogmanagement is a Lean IT approach to provisioning IT ser-vices. When, say, a new employee joins a company, theemployee’s manager can log into a web-based catalog andselect the services needed. This particular employee mayneed a CAD workstation as well as standard office pro-ductivity software and limited access to the company’sextranet. On submitting this request, provisioning of allhardware and software requirements would then be auto-matic through a lean value stream. In another example,a Lean IT approach to application performance monitor-ing would automatically detect performance issues at thecustomer experience level as well as triage, notify sup-port personnel, and collect data to assist in root-causeanalysis.[5] Research suggests that IT departments mayachieve sizable returns from investing in these and otherareas of the IT function.[36]

Among notable corporate examples of Lean IT adoptersis UK-based grocer Tesco,[37] which has entered intostrategic partnerships with many of its suppliers, includ-ing Procter & Gamble, Unilever, and Coca-Cola, even-tually succeeding in replacing weekly shipments withcontinuous deliveries throughout the day. By movingto eliminate stock from either the back of the store orin high-bay storage, Tesco has gotten markedly closerto a just-in-time pull system (see Pull/Demand Sys-tem).[6][38][39] Lean IT is also attracting public-sector in-terest, in-keeping with the waste-reduction aims of theLean Government movement. One example is the City ofCape Coral, Florida, where several departments have de-ployed Lean IT.[40] The city’s police records department,for instance, reviewed its processing of some 20,000traffic tickets written by police officers each year, halv-ing the time for an officer to write a ticket and saving $2million. Comparable benefits have been achieved in otherdepartments such as public works, finance, fire, and parksand recreation.[41][42]

8.2 Six Sigma 5

8 Complementary Methodologies

Although Lean IT typically entails particular principlesandmethods such as value streams and value-streammap-ping, Lean IT is, on a higher level, a philosophy ratherthan a prescribed metric or process methodology. In thisway, Lean IT is pragmatic and not agnostic. It seeks in-cremental waste reduction and value enhancement, but itdoes not require a grand overhaul of an existing process,and is complementary rather than alternative to othermethodologies. Typically a grand overhaul is not recom-mended because of the previously mentioned fragmenta-tion issues. Companies that choose to internally sourcetheir developers, re-assigning them to software supportfunctions can run into many waste causing scenarios. Forexample, this can lead to highly skilled employees effec-tively becoming customer support representatives. Theemployees previous salary requirements would still needto be met, potentially accumulating millions of dollars inwaste. A side effect may be overloading AD teams whoneed to handle the same amount of development work.Also, since these employees are not usually cross trainedwith business and/or other specialized IT areas there isa steep learning curve and adjustment period. This canbe a primary contributing factor to fragmentation. Thiscan lead to customer support issues actually taking longerto resolve and becoming less efficient, due to constantlysearching for or transferring issues to a support team’s“expert” in a particular field. Another downside is em-ployee resistance. For example, an employee trained inJava programming who is now supporting customer is-sues will likely start searching for another job in his/herfield. Especially if they are no longer being asked to usetheir perceived primary skill set.

8.1 Agile, Scrum andLean Software devel-opment

Main article: Lean software development

Agile Software Development is a set of software devel-opment methods that originated as a response for theindiscriminated use of CMMI, RUP and PMBOK cre-ating fat and slow software development processes thatnormally increased the lead time, the work in progressand value/non value added activities ratio on projects andincludes methods like XP, Scrum, FDD, AUP, DSDM,Crystal, and others.Scrum is one of the more well known agile methods forproject management, and has as one of its origins con-cepts from Lean Thinking. Scrum also organizes workin a cross-functional, multidisciplinary work cell. It usessome form of kanban system to visualize and limit workin progress, and follows the PDCA cycle, and continuousimprovements, that is the base of Lean.

8.2 Six Sigma

Whereas Lean IT focuses on customer satisfaction and re-ducing waste, Six Sigma focuses on removing the causesof defects (errors) and the variation (inconsistency)in manufacturing and business processes using qualitymanagement and, especially, statistical methods.[43] SixSigma also differs from Lean methods by introducing aspecial infrastructure of personnel (e.g. so-called “GreenBelts” and “ Black Belts”) in the organization. Six Sigmais more oriented around two particular methods (DMAICand DMADV), whereas Lean IT employs a portfolio oftools and methods. These differences notwithstanding,Lean IT may be readily combined with Six Sigma suchthat the latter brings statistical rigor to measurement ofthe former’s outcomes.[44]

8.3 Capability Maturity Model Integra-tion (CMMI)

The Capability Maturity Model Integration (CMMI)from the Software Engineering Institute of CarnegieMel-lon University (Pittsburgh, Pennsylvania) is a process im-provement approach applicable to a single project, a di-vision, or an entire organization. It helps integrate tradi-tionally separate organizational functions, set process im-provement goals and priorities, provide guidance for qual-ity processes, and provide a benchmark or point of refer-ence for assessing current processes.[45] However, unlikeLean IT, CMMI (and other process models) doesn’t di-rectly address sources of waste such as a lack of alignmentbetween business units and the IT function or unnecessaryarchitectural complexity within a software application.[3]

8.4 Information Technology Infrastruc-ture Library (ITIL)

The Information Technology Infrastructure Library(ITIL)— a series of books published by the United King-dom’s Office of Government Commerce— contains con-cepts, policies, and recommended practices on a broadrange of IT management topics. These are again entirelycompatible with the objectives and methods of Lean IT.Indeed, as another best-practice framework, ITIL may beconsidered alongside the CMMI for process improvementand COBIT for IT governance.

8.5 Universal Service Management Bodyof Knowledge (USMBOK)

The Universal Service Management Body of Knowl-edge (USMBOK) — is a single book published by Ser-vice Management 101 and endorsed by numerous pro-fessional trade associations as the definitive reference forservice management. The USMBOK contains a detailed

6 9 NOTES

specification of a service system and organization andleverages the rich history of service management as de-fined within product management and marketing profes-sions. The service organization specification describesseven key knowledge domains, equivalent to roles, andforty knowledge areas, representing areas of practice andskills. Amongst these, within the Service Value Man-agement knowledge domain, are a number of Lean rel-evant skills, including Lean Thinking and Value Map-ping. The USMBOK also provides detailed informationon how problem management and lean thinking are com-bined with outside-in (customer centric) thinking, in thedesign of a continuous improvement program.

8.6 COBIT

Control Objectives for Information and related Tech-nology — better known as COBIT — is a frameworkor set of best practices for IT management created bythe Information Systems Audit and Control Association(ISACA), and the IT Governance Institute (ITGI).[46] Itprovides managers, auditors, and IT users a set of metrics,processes, and best practices to assist in maximizing thebenefits derived through the use of IT, achieving compli-ance with regulations such as Sarbanes-Oxley, and align-ing IT investments with business objectives. COBIT alsoaims to unify global IT standards, including ITIL, CMMI,and ISO 17799.[47]

9 Notes[1] Ker, J. I., Wang, Y., Hajli, M. N., Song, J., & Ker, C. W.

(2014). Deploying lean in healthcare: Evaluating infor-mation technology effectiveness in US hospital pharma-cies. International Journal of Information Management,34(4), 556-560.

[2] See “Deployment and Commercial Support” below.

[3] Kindler, Nosh B; Krishnakanthan, Vasantha; Tinaikar,Ranjit. Applying Lean to Application Development. McK-insey Quarterly, May 2007

[4] Hanna, Julia. “Bringing ‘Lean’ Principles to Service In-dustries”. HBS Working Knowledge. October 22, 2007.(Summary article based on published research of Profes-sor David Upton of Harvard Business School and doctoralstudent Bradley Staats: Staats, Bradley R., and David M.Upton. “Lean Principles, Learning, and Software Produc-tion: Evidence from Indian Software Services.”. HarvardBusiness School Working Paper. No. 08-001. July 2007.(Revised July 2008, March 2009.)

[5] Waterhouse, Peter. “Improving IT Economics: ThinkingLean& rdquo;. CA White Paper. November 2008.

[6] Masters of Lean IT: How 3 Visionary IT Executives Max-imize Value and Minimize Waste. Interviews with JohnParkinson (Chief Technology Office, TransUnion), MikeYorwerth (Group Technology and Architecture Director,

Tesco), and Marc Silvester (Chief Technology Office, Fu-jitsu Services), published by CA, Inc (2009).

[7] The value-stream methodology originated at Toyota,where it is known asMaterial and Information Flow Map-ping. See Learning to See: Value-Stream Mapping to Cre-ate Value and Eliminate Muda by Mike Rother and JohnShook (Lean Enterprise Institute 1999, ISBN 0-9667843-0-8). The methodology has since been developed byJames Womack and Daniel Roos while researching theirseminal book The Machine that Changed the World (seeReferences below).

[8] Rother, Mike; Shook, John. Learning to See: Value-Stream Mapping to Create Value and Eliminate Muda.Lean Enterprise Institute 1999. ISBN 0-9667843-0-8

[9] Executive Vice President

[10] capital expenditures

[11] operating expenses

[12] Although repositories similar to CMDBs have been usedby IT departments for many years, the term CMDB stemsfrom ITIL (Information Technology Infrastructure Li-brary) — a series of books published by the United King-dom’s Office of Government Commerce containing con-cepts, policies, and recommended practices on a broadrange of IT management topics

[13] The Evolution of Job Scheduling: CA’s Approach to Work-load Automation. (IDC White Paper, November 2007)

[14] Isidore, Chris. “It’s official: Recession since Dec '07”.CNNmoney.com. December 1, 2008

[15] Jones, Daniel T. Lean Survival. Lean Enterprise AcademyLetter e-Letter. March 19, 2009.

[16] Rappaport, Liz; Ng, Serena. “New Fears as Credit Mar-kets Tighten Up.”. Wall Street Journal. March 9, 2009

[17] Grynbaum, Michael M. “Outlook Grows More Dire forHousing Market.”. New York Times. November 25, 2008

[18] Reynolds, Glenn. “Tax Day Becomes Protest Day.”. WallStreet Journal. April 15, 2009

[19] Hagenbaugh, Barbara; Krantz, Matt; Kirchhoff, Su.“Wave of layoffs in U.S., Europe show severity of the re-cession.”. USA Today. January 30, 2009

[20] Mamudi, Sam. “ Treasury Money-Market Funds Shut theDoor.”. MarketWatch: Wall Street Journal Digital Net-work. January 27, 2009

[21] “Technology and the Lean Enterprise” SAPWhite Paper,January 18, 2008

[22] These include internal business functions such as enter-prise resource planning and human resources manage-ment, business-to-business applications such as supply-chain management and hosted solutions, and customer-facing functions such as sales and customer service.

[23] “Customer Experience Manager: Real-Time Visibilityinto Web-Based Transactions for IT and Business Man-agers” CA Technology Brief. March 2009

7

[24] Merging Information Technology and Business, a com-mentary by SAP Chairman Henning Kagermann

[25] Verity, John W. “When Green Delivers Green”. SmartEnterprise Magazine. Volume 3. No. 1

[26] “Get Lean an Green in 2009.” IBM product page.

[27] Samson, Ted. “The Green IT Leaders of 2009” InfoworldApril 22, 2009.

[28] “Green IT: Corporate Strategies”. Business Week. Febru-ary 11, 2008

[29] Weston, Rusty. “Greening the Data Center” Smart Enter-prise Magazine. Volume 2. No. 1

[30] CA Enables Lean IT to Help Maximize Value and Mini-mize Cost. April 27, 2009.

[31] Chapman, Siobhan. Lean Methods Drive Heathrow Ter-minal 5 Development Computerworld UK. July 17, 2007

[32] Werdigier, Julia; Clark, Nicola. New Competition andCancellations at Heathrow Vex British Airways Interna-tional Herald Tribune. April 1, 2009

[33] More generally, challenges of this kind are the subject ofchange management.

[34] James Womack and Daniel Jones, leading consultants inthe field, emphasize that lean consumption isn’t about re-ducing the amount customers buy. Rather, it is about pro-viding the full value that customers desire from their goodsand services, with the greatest efficiency. See Womack,James P. and Jones, Daniel T. “Lean Consumption.” Har-vard Business Review. March 2005

[35] “ADMOutsourcing: Go/No Go?”— commentary on andexcerpts from Aberdeen Group report “Does OutsourcingApplication Development, Maintenance Pay Off?

[36] Perry, Randy; Grieser, Tim; Hatcher, Eric. “ImprovingIT Economics and Gaining Business Value with CA’s En-terprise IT Management Software: An ROI Study”. IDCpaper. November 2008. This paper reports that the great-est benefit from adopters of Lean IT is the subsequent in-crease in IT productivity, which accounted for approxi-mately 61% of the total benefit ($78,000 for every 100users).

[37] Tesco operates in the United States under the brand “Fresh& Easy’

[38] Griffith, Victoria. “Welcome to Tesco, Your ‘Glocal’ Su-perstore.” Strategy+Business. First Quarter 2002

[39] Kleiner, Art. “Leaning Toward Utopia: A Profile of DanJones and Jim Womack.” Strategy+Business. July 2005

[40] Lean Government in Cape Coral (Office City Web Site)

[41] Cape Coral Lean Government Update

[42] Gilbert, Maria. “The City of Cape Coral Enables LeanerGovernment with AMX and JD Edwards” Reuters. March6, 2009

[43] Antony, Jiju. “Pros and cons of Six Sigma: an academicperspective”. January 7, 2008

[44] Upton, Malcolm T.; Cox, Charles Lean Six Sigma: A Fu-sion of Pan-Pacific Process Improvement.

[45] Software Engineering Institute web site: “What isCMMI?” page

[46] ITGI is a U.S.–based research “think tank” on IT gover-nance. oriented predominantly towards enterprises. Seethe ITGI web site About ITGI for more.

[47] COBIT 4.1 brochure from the IT Governance Institute(ITGI)

10 References• Bell, Steve (2012), Run Grow Transform, Integrat-ing Business and Lean IT, Productivity Press, ISBN978-1-4665-0449-3.

• Bell, Steve and Orzen, Mike (2010) Lean IT,Enabling and Sustaining Your Lean Transforma-tion, Productivity Press, ISBN 978-1-4398-1757-5.Shingo Prize Research Award 2011

• Bell, Steve (2006) Lean Enterprise Systems, Using ITfor Continuous Improvement, John R. Wiley, ISBN978-0-471-67784-0.

• Yasuhiro Monden (1998), Toyota Production Sys-tem, An Integrated Approach to Just-In-Time, Thirdedition, Norcross, GA: Engineering &ManagementPress, ISBN 0-412-83930-X.

• Womack, James P., and Roos, Daniel T. (2007),The Machine That Changed the World, Free Press,ISBN 978-0-7432-9979-4.

• Womack, James P. and Jones, Daniel T. (2005)“Lean Consumption.” Harvard Business Review.

8 11 TEXT AND IMAGE SOURCES, CONTRIBUTORS, AND LICENSES

11 Text and image sources, contributors, and licenses

11.1 Text• Lean IT Source: https://en.wikipedia.org/wiki/Lean_IT?oldid=680399497 Contributors: Edward, AliveFreeHappy, YUL89YYZ,ZahrGnosis, Mandarax, Ketiltrout, Gaius Cornelius, Metebelis, UncleDouggie, CmdrObot, Nautix, Ash, Nik.martin, Robinson weij-man, Rip969, Ggpur, Alexbot, Addbot, SEI Publications, MrOllie, 5 albert square, Yobot, Jdmumper, AnomieBOT, Wikitawe, Blur-Tento, LilHelpa, Servicemanagement101, Erik9bot, FrescoBot, DrilBot, Benjoya, Per Ardua, Htssouza, Mgoode75, Dfev77, Ftom75,Jbernab~enwiki, 2aprilboy, Lean IT Coach, Urbancowboy1773, Sunfollowme and Anonymous: 22

11.2 Images

11.3 Content license• Creative Commons Attribution-Share Alike 3.0