Transforming Business Needs into Business Value

Path to Agility

May 2013

Professional services career

Large scale projects

Application development & Integration

Project management

Business leadership

Agile Transformation

Continuously improve the efficiency of development process

Moving beyond “how” to “why” agile

Turning business imperatives leading to business outcomes

Increase the effectiveness of the organization

Enable effective business strategies

Measure performance against organizational goals

Today’s Challenge

On average, 35% of requirements change throughout the software lifecycle

45% of delivered features are never used

82% of projects cited incomplete and unstable requirements as the number one reason for failure

Software quality errors cost U.S. businesses over $59 billion annually

On average, projects overrun by 56% on cost and 84% on time

Sources: Standish Group, NIST, Forrester, Gartner, British Computer Society

Why Agile?

Individuals and interactions over processes and tools

Working software over comprehensive documentation

Customer collaboration over contract negotiation

Responding to change over following a plan

The Agile Manifesto

Transparency

Inspection

Adaptation

February 11 , 2001

Understanding Business Drivers

Growth is top priority but must maintain costs

Defining competitive advantage (increase market & wallet share)

Must understand and manage innovation initiatives

Driving need for information (IT)

Stakeholder overload

Board engagement

Who is controlling your brand?

Where will growth come from?

Real succession planning

Disruptive technology

Global talent development

Talent (im)mobility The Miles Group, LLC

2013 Key Challenges for the CEO

IT Drivers

Must meet organizational information needs

Implementation of competitive advantage initiatives

Manage governance, risk and compliance (GRC)

Must maintain operating margins

System and security risks

CEOs regard CIOs as a transient specialists

• Are you adding value, or keeping the lights on?

• What percentage of your budget is spent on running the business vs. changing the business?

• How much of your budget is allocated to each business segments you support? Does that match the value of those segments to the business?

• How does what we are doing align to our business strategy?

How does CEO measure IT Organization?

Evolving Challenges

Mobile in the Enterprise

Reinvent Your Business Design Processes

Provide Adaptive, Flexible and Secure Integration

Leverage Data to Drive Insight

Technology Provider Imperatives

Mobile in the Enterprise 87% American adults who own a cell phone

84% Cell phone owners who could not go a single day without their device

81% Growth of smartphone usage in 2012

70% Growth of global mobile data traffic in 2012

51% Traffic on mobile devices from video in 2012

45% American adults who own a smartphone

44% Cell phone owners who sleep with their phone nearby

31% American adults who own a tablet computer

24% Cell phone owners who say the worst thing about device is that it is always connected

Engage Business Users in every step of the process

Accelerate Time to Value

Discover, document and optimize business processes

Provide a consistent and ENGAGING experience

Upgrade Your Business Design Processes

Unlock and expose back office capabilities and information

Seamless cross channel interactions

Simplify development to support growing types and locations of applications

Adaptive, Flexible & Secure Integration

1 in 3 business leaders don’t trust the information they use to make decisions

Enterprises are awash with ever-growing data of all types

Gain insights from emerging data and content

For time-sensitive processes such as catching fraud, big data must be used as it streams into your enterprise in order to maximize its value

Leverage Data to Drive Insight

Focus IT as a Driver of Business Value, not just another cost center

Clearly provide increased strategic value through IT services

Service delivery through a highly engaged, agile and innovative organization

Desired Outcomes

Are you Delivering Business Value?

“Analysis of PMO Executive Council project database reveals a

disturbing reality: even among those projects that are

delivered at least 90% on time and on budget, the majority

fail to deliver business outcomes.“

“The top-performing projects in terms of budget and schedule

compliance attain on average only 53% of their business

outcome expectations.”

Source: Project Managing to Business Outcomes - Targeting Critical Project Management Activities That Drive Business Impact

Corporate Executive Board – PMO Executive Council

Managing to Business Value

1. On-time and on-budget project performance is necessary but not

sufficient for attaining business outcomes

2. Only a select number of project management activities drive

business outcome attainment

3. Project Manager effectiveness is the number one driver of business

outcome attainment

4. Organizations need to re-center project planning around business

outcomes to estimate and track benefits

5. Over manage stakeholder involvement at Concept Definition

Source: Project Managing to Business Outcomes - Targeting Critical Project Management Activities That Drive Business Impact

Corporate Executive Board – PMO Executive Council

How do you transform your organization?

Balanced Approach

Focus and Determination

Determine your Agile Attitude

Embrace change

Seeks collaboration

Continuous feedback & learning

Focuses on customer satisfaction

Promotes effective decision making

Define “your” SDLC

Adopt Best Practices

Measure Results

End-to-end Traceability

Development Tool Integration

Real Time Collaboration

Continuous Integration

Establish your Framework

Operational Model

BUSINESS STRATEGY

PROJECT PORTFOLIO

BUSINESS REQUIREMENTS

RELEASE 1

BUSINESS SOLUTIONS

RELEASE 2

RELEASE N

EFFICIENCY

“DOING THINGS RIGHT”

BUSINESS & TECHNOLOGY DRIVERS

Efficiency Gains

Improve and Measure

Applied Lessons Learned

BUSINESS REQUIREMENTS

RELEASE 1

BUSINESS SOLUTIONS

RELEASE 2

RELEASE N

EFFICIENCY

“DOING THINGS RIGHT”

Not there yet, keep going

What is your Business Value Maturity?

LEVELS OF MATURITY

Initial Organization often produce products and services that work

Managed Requirements are managed and processes are planned, performed, measured and controlled

Predictable Performance measures are used to support fact-based decision making

Optimized Objectives continually revised to reflect business objectives for process improvement

Business value Maturity Model

Create SDLC and Governance

Realize Business Results

Enhance Business Strategy

Measure Business Impact

Establish Business Impact Metrics

Enhance SDLC and Governance

Evaluate Organizational Efficiency

Implement SDLC and Governance

Initial

Managed

Predictable

Optimized

Managing

Leading

Reevaluate the value and benefits after every release

Improved Business Value

BUSINESS STRATEGY

PROJECT PORTFOLIO

BUSINESS REQUIREMENTS

RELEASE 1

BUSINESS

SOLUTIONS

RELEASE 2

RELEASE N

EFFICIENCY

“DOING THINGS RIGHT”

BUSINESS & TECHNOLOGY DRIVERS

“Doing the right things”

Business Results

Business Solution Immediate Value Ultimate Value

New internet site Unique site visits Improved Sales

Mobile Application Application downloads Improved Customer Experience

Digital sales aids Real time sales material Revenue Increase

Self-serve account management Decreased help desk calls Cost Reduction

Online quoting system Increased time on site Revenue Retention

Business Planning BUSINESS STRATEGY

BUSINESS CASE

Business Features (Streams) and Benefits with measureable value

Business Objectives, Drivers & Expectations

Key Stakeholders & Stakeholder Needs

Initial User Experience Research & Concepts

High Level Architecture

BUSINESS CASE BUSINESS CASE

Define Benefit and Cost

BUSINESS FEATURE (STREAM)

Feature 1 Feature 2 Feature n

Epic Epic Epic Epic

Story 1

Story 2

Story 3

.

Story n

Story 1

Story 2

Story 3

.

Story n

Story 1

Story 2

Story 3

.

Story n

Story 1

Story 2

Story 3

.

Story n

Benefit ($) / Expense ($)

Benefit and cost can be attributed to every Epic and Story

Decomposition of features into granular elements for development

Benefit ($) / Expense ($) Benefit ($) / Expense ($)

Illustration of features vs satisfaction (Wikipedia)

Classify features into three categories of customer satisfaction:

• Must Have/Basic

• Performance Needs/Linear

• Exciter

Kano Approach for Prioritization

Help business

understand what

needs to be

delivered in a good

product

AND

what could be

added to create a

great product

Kano Approach for Prioritization Must Have

Not always expressed but are obvious to the customer and must be met.

Are not a source of satisfaction but can cause major disappointment. Must be

there at product launch.

Performance needs

Is expressed and customer satisfaction is proportional to the level of performance

implemented. It is a strong source of customer satisfaction. Must be shown as

soon as possible to the Customers.

Delighters

These requirements are not necessarily expressed. Sometimes they’re unconscious.

The happy surprise that can make a difference, and an important source of

satisfaction.

Immediate Value

“We went from 10% to 90% efficient in gathering business requirements for our initiatives.”

Development Manager

“Our business units are not used to seeing results in three months. IT is no longer a black box.

We could not do that without this type of development approach.”

VP Business Unit

Ultimate Value

5 Year Goals: 50% Revenue Growth 20% Decrease Service Cost

Manufacturing Example

Sales and Service Productivity Suite

Immediate Value

“Analysts gained an understanding of our complex business requirements and transformed them to technical solutions faster

than our own teams.”

VP, IT

“We are able to consistently meet aggressive schedules and evolving requirements with quality solutions.”

VP, Business Unit

Ultimate Value

Decreased risk by 30% Increased Reporting effectiveness by 24%

Banking Example

Corporate Compliance

Organizational Results

Focused IT Goals

Business enablement

Integrated organization

Shared mission

Enhance ability to increase market share

40

Thank you.

Scot Burdette

VP, National Practices

ICC

www.iccohio.com

sburdette@iccohio.com

@scotburdette

www.iccohio.com

Agile Delivery Process tailored to meet the client needs

Feature Prototyping to create early Requirements Alignment

Continuous Integration

3 Amigos Testing

Test Driven Development (TDD) for Integration projects

Behavior Driven Development (BDD) for web development projects

Selective Pair Programming to get the most value while minimizing risk and ensuring quality

Guidelines and Standards for project execution

REPEATABLE DELIVERY PROCESS

Agile Team Roles

Product Owner represents the stakeholders and is the voice of the customer and is responsible for the features of the product to be worked on, as well as the release date. They are responsible for prioritizing the product backlog.

Scrum Master acts as the project manager, and is responsible for removing impediments to the ability of the team to deliver the sprint goal/deliverables and also shielding the team from outside interferences. They also lead task assignment and daily stand up meetings with the team.

Scrum Team consistent group of cross functional people with varying degrees of experience. The team is self organizing and tasks are assigned based on availability and capability.

Product Owner Scrum Master

Developers

QA Analyst Tech Lead

Scrum Team

Business Analyst

Application Lifecycle Management

DEEPER DIVE INTO

Quality Assurance

Application Lifecycle Management Vendors Gartner's Magic Quadrant for ALM

www.iccohio.com

Microsoft Team Foundation Server

www.iccohio.com

IBM Rational Team Concert

www.iccohio.com

KEY BENEFITS

Key Decision Factors

Avoid integration and setup of multiple tools for SDLC

Focus on project functionality vs. tool setup and infrastructure

Technical support from Microsoft and IBM

Value for investment

WHY DO WE NEED ALM?

Continuous Visibility

Traceability IDE Integration

Task Management

Real Time Collaboration

Source Control & CI

www.iccohio.com

Real Time Facts CONTINUOUS VISIBILITY

Project Burndown

Sprint Burndown

www.iccohio.com

Real Time Facts CONTINUOUS VISIBILITY

Test Case Execution Report

Defect Tracking Report

Zero Defects

www.iccohio.com

Support for Tasks for all Team Members

TASK MANAGEMENT & COLLABORATION

www.iccohio.com

IDE INTEGRATION & TRACEABILITY

Traceable Verifiable Auditable

User Stories Product Backlog

www.iccohio.com

SOURCE CONTROL & CONTINUOUS INTEGRATION

Traceable Verifiable Auditable

www.iccohio.com

CODE BRANCHING

Static Code Analysis – SONAR

CONTINUOUS VISIBILITY Code Quality Analysis - SONAR

• Test Coverage

• Code complexity analysis

• Code duplication analysis

• Adherence to standards

ICC’s Delivery Approach

DEEPER DIVE INTO

ICC Delivery Approach

Technology

People

Process

“WELL OILED MACHINE”

REPEATABLE DELIVERY PROCESS

TOP MANAGEMENT &

TECHNOLOGY TALENT

SCALABLE TEAMS

NATURAL EXTENTION FOR

CUSTOMERS

CONTINUOUS COLLABORATION

WITH THE CUSTOMER

Top Talent

Cross Functional Teams of true Consultants

Industry recognized technical leaders and management professionals

Delivery Focused Agile Coaches, Iteration Managers, Architects, Software Engineers and Business Analysts

ICC experts are regular speakers in Agile and Technical conferences and events

Company focus on professional development, certifications and domain expertise

Scalable Teams

Practice of 100+ consultants each in .Net, Enterprise Java and related specialties.

Leadership Development Academy to hire and develop fresh talent

Continuous Training for existing Consultants

Best in the Business Recruiting professionals with a strong network and a global reach

Natural Extension

B2B connectivity between ICC and customer’s development and testing environments

Flexible development approach with the ability to use customer’s source control & other infrastructure

Effective use of Application Lifecycle Management (ALM) tools to provide Real time Reporting and Continuous Visibility to our customers

Flexible Processes to incorporate customer’s best practices, standards and tools

Use of the latest technology to ensure real time collaboration between distributed teams