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High Maturity: The Corporate Perspective For Organization Wide Improvement -Koel Bhattacharya and Avinash Bharj (Capgemini Pvt. India Ltd.)presented at 1st International Colloquium on CMMI High Maturity Best Practices held on May 21, 2010, organized by QAITRANSCRIPT
Together. Free your energies
High Maturity: The Corporate Perspective
For Organization Wide Improvement
-Koel Bhattacharya
Avinash Bharj
(Capgemini Pvt. India Ltd.)
Together. Free your energies
2
High Maturity: The Corporate Perspective for
Organisation Wide Improvement
for 1st. International Colloquium on High Maturity Best Practices 2010
Koel BhattacharyaAvinash Bharj
Capgemini India Pvt. Ltd.
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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3Version 1.0 © 2010 Capgemini. All rights reserved.
Global IT Industry Outlook
Strong IT market recovery with growth projected at 8%
-10.6% -11.4%-8.9%
4.0%4.9%
8.1%
Forecasts for Global IT Purchases in 2009 and 2010
June 2009 Forecast September 2009 Forecast December 2009 Forecast
Source: September 29, 2009, “US And Global IT Market Outlook: Q3 2009” Forrester report and the June 29, 2009, “US And Global IT Market Outlook: Q2 2009” Forrester Report
2009 2010
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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Impact on Employment
Strong growth in employment with the economic revival
Emerging economies will account for large percentage of growth
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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Indian IT Industry Growth Rate
2
8
18
47
60
1998 2002 2005 2009 2010
Value in USD Billion
Revenue $60 Billion
Projected Growth Rate 15% -18%
Potential Workforce 2.3 million
Source: NASSCOM Resource Center & Economic Times
Positioning the Indian IT Sector
• High Outsourcing from North
American & European countries
• Rise in domestic demand for
e-governance initiatives
Opportunities for growth
Challenges
• Government policies
• Double-dip recession
• Competition
Pressure on billing rate
High marketing/R&D expense
• Exchange rate fluctuation
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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Securing a Place for the Organisation
Creating business models which cater to increased demands
• Transformation of business processes to
become more productive and competitive
• Industrialisation of operating models and use
of standardised rules, processes and tools
• Reducing layers of costs that do not bring
added value to the client
• Developing new ways of doing business
through innovation, domain expertise and
improvement initiatives
Innovative
Time
to
Market
Cost
Sensitive
Business
Model
Global
Collaboration
Talent
ManagementCompetitive
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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7Version 1.0 © 2010 Capgemini. All rights reserved.
CMMI Model - Casting a Process Framework
• Business objectives explicitly
linked with operational processes
• 22 core process areas categorised
into
•project management
•engineering
•support
•process management
• Defined goals & practices for each
process areas
•Generic Goals & Generic Practices
•Specific Goals & Specific Practices
• Building infrastructure for creating a
process framework
Using processes to deliver business outcomes
Projec
t
Man
agem
ent
Deliver
y
Exce
llenc
e
Con
tinuo
us
Impr
ovem
ent
Busin
ess
Benefit
Process Maturity
Projec
t
Man
agem
ent
Deliver
y
Exce
llenc
e
Con
tinuo
us
Impr
ovem
ent
Busin
ess
Benefit
Process Maturity
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
Together. Free your energies
8Version 1.0 © 2010 Capgemini. All rights reserved.
Process Industrialisation
Aligning the process framework with the company’s corporate governance structure &laying the foundation for organisation wide improvement
Control and Management Reporting
Corporate Governance
Result Orientation
Collaborative Steering Group
Integrated Processes
Process Infrastructure Design
Continual Improvement
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
Together. Free your energies
9Version 1.0 © 2010 Capgemini. All rights reserved.
Process Industrialization Framework
Pla
n
the
Pro
cess
Pro
vid
eR
eso
urces
&
Assig
n
Resp
on
sib
ilit
yGeneric Practices
Train
ing
Org
an
izati
on
al
Po
licy
Revie
w
Sta
tus w
ith
M
an
ag
em
en
t
Man
ag
e
Co
nfi
gu
rati
on
s
Co
llect
Im
pro
vem
en
t In
form
ati
on
Esta
blish
Q
uan
tita
tive
Ob
jecti
ves f
or
the P
ro
cess
Co
nti
nu
ou
s
Pro
cess
Im
pro
vem
en
t
Sta
keh
old
er
Id
en
tifi
cati
on
Sta
bilis
e
Su
b-P
ro
cess
Perfo
rm
an
ce
Co
rrect
ro
ot
cau
ses o
f p
ro
ble
ms
Mo
nit
or
&
Co
ntr
ol
Pro
cess
Evalu
ate
A
dh
eren
ce
Esta
blish
Defi
ned
P
ro
cess
Control and Mgmt Reporting
Corporate Governance
Result Orientation
Collaborative steering group
Integrated Processes
Process Infrastructure Design
Continual Improvement
Level 2
Level 3 Level 4 Level 5
Process Industrialization Framework
Pla
n
the
Pro
cess
Pro
vid
eR
eso
urces
&
Assig
n
Resp
on
sib
ilit
yGeneric Practices
Train
ing
Org
an
izati
on
al
Po
licy
Revie
w
Sta
tus w
ith
M
an
ag
em
en
t
Man
ag
e
Co
nfi
gu
rati
on
s
Co
llect
Im
pro
vem
en
t In
form
ati
on
Esta
blish
Q
uan
tita
tive
Ob
jecti
ves f
or
the P
ro
cess
Co
nti
nu
ou
s
Pro
cess
Im
pro
vem
en
t
Sta
keh
old
er
Id
en
tifi
cati
on
Sta
bilis
e
Su
b-P
ro
cess
Perfo
rm
an
ce
Co
rrect
ro
ot
cau
ses o
f p
ro
ble
ms
Mo
nit
or
&
Co
ntr
ol
Pro
cess
Evalu
ate
A
dh
eren
ce
Esta
blish
Defi
ned
P
ro
cess
Control and Mgmt Reporting
Corporate Governance
Result Orientation
Collaborative steering group
Integrated Processes
Process Infrastructure Design
Continual Improvement
Control and Mgmt Reporting Control and Mgmt Reporting
Corporate Governance Corporate Governance
Result Orientation Result Orientation
Collaborative steering group Collaborative steering group
Integrated Processes Integrated Processes
Process Infrastructure Design Process Infrastructure Design
Continual Improvement Continual Improvement
Level 2
Level 3 Level 4 Level 5
Process Industrialisation
Aligning the process framework with the company’s corporate governance structure &laying the foundation for organisation wide improvement
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
Together. Free your energies
10Version 1.0 © 2010 Capgemini. All rights reserved.
High Maturity Process Areas
• Organisational Process Performance – discusses the
need for establishing organisational performance
goals and usage of predictive models
• Quantitative Project Management – focuses on
managing projects quantitatively by measuring
actual performance against identified targets and
helps in planning for midcourse corrections
• Organisational Innovation and Deployment –
emphasizes the need for implementing
organisation wide improvement initiatives
• Causal Analysis and Resolution – helps in
identifying and addressing root causes of product
and process related defects and issues
The continuous representation
of the model has the high
maturity aspects as part of the
generic practices at level 4 & 5
which needs to be fulfilled for
achieving higher capability in a
process area.
In contrast the staged
representation includes the
high maturity practices as part
of the four process areas at
level 4 & 5.
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
Together. Free your energies
11Version 1.0 © 2010 Capgemini. All rights reserved.
The Premise of High Maturity
Creating synergy between Vision-BO-QPPO
Process Performance Models Process Performance Baselines
Market Leadership
Competitive Insight
Innovation
Customer Centric
Financial Performance
Capital Optimisation
Quality Focus
Business Objectives Quality & Process Performance Objectives
Vision
Busin
ess P
rocess I
mpro
vem
ent
Reduce E
nte
rpri
se C
ost
Impro
ve W
ork
forc
e E
ffectiveness
Att
ract
& R
eta
in c
usto
mers
Use o
f In
form
ation/A
naly
tics
Pre
dic
tive M
odelin
g
Custo
mer S
atis
factio
n
Incre
ase P
roductiv
ity
Resourc
e O
ptim
izatio
n
Impro
ve Q
uality
/Reduce R
ew
ork
Process Performance Models Process Performance Baselines
Market Leadership
Competitive Insight
Innovation
Customer Centric
Financial Performance
Capital Optimisation
Quality Focus
Business Objectives Quality & Process Performance Objectives
VisionVision
Busin
ess P
rocess I
mpro
vem
ent
Reduce E
nte
rpri
se C
ost
Impro
ve W
ork
forc
e E
ffectiveness
Att
ract
& R
eta
in c
usto
mers
Use o
f In
form
ation/A
naly
tics
Pre
dic
tive M
odelin
g
Custo
mer S
atis
factio
n
Incre
ase P
roductiv
ity
Resourc
e O
ptim
izatio
n
Impro
ve Q
uality
/Reduce R
ew
ork
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
Together. Free your energies
12Version 1.0 © 2010 Capgemini. All rights reserved.
High Maturity – Paradigm Shift
High maturity practices help to:
• Statistically define the organisation’s
performance (in terms of mean and
standard deviation)
• Predict the performance
of the organisational objectives
• Probe into reasons that lead to variation
• Plan for corrective or preventive
measures
Senior management
• view leading indicators which influence the performance
of the business objectives
• plan for organisation wide process improvements
Data Inputs
Historical & current operational
data or analytically derived
information
Recommended Actions
The optimal course to meet the
objectives
Achieving Results
Measure performance against objectives
Implementation
Execution of recommended
actions
High Maturity
Objectives
Description of goal
to be achieved
Decisions
Actions that can
realistically be
carried out in
pursuit of
objectives
Constraints
Requirements,
limitations,
rules constraining
decisions
Data Inputs
Historical & current operational
data or analytically derived
information
Recommended Actions
The optimal course to meet the
objectives
Achieving Results
Measure performance against objectives
Implementation
Execution of recommended
actions
High Maturity
Objectives
Description of goal
to be achieved
Decisions
Actions that can
realistically be
carried out in
pursuit of
objectives
Constraints
Requirements,
limitations,
rules constraining
decisions
High Maturity
Objectives
Description of goal
to be achieved
Decisions
Actions that can
realistically be
carried out in
pursuit of
objectives
Constraints
Requirements,
limitations,
rules constraining
decisions
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
Together. Free your energies
13Version 1.0 © 2010 Capgemini. All rights reserved.
Predictive Analytics for Monitoring QPPOs
Let us look at a simple example:
Consider a statistical model
• Y = F(x1,x2, x3….) where,
• Y = Productivity
• x(s) = Skill Index, Requirement Volatility,
Complexity of Work, Schedule Compression
Output
• Model suggests the prediction
interval for the QPPOs (Y value)
within which the estimated
productivity should range
• What-if analysis is based on past
performance data
• Recommends the need to take mid
course corrections
Improve Skill Index to Improve Productivity
Vision Revenue Growth
Business Objective Competitive Pricing
QPPO Improve Productivity
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
Together. Free your energies
14Version 1.0 © 2010 Capgemini. All rights reserved.
Innovation and Improvement
High maturity practices at CMMI Level 5 supports:
• Early detection of defects to reduce rework costs
• Innovative solutions to enhance operational effectiveness
• Accelerated Solutions Environment to resolve
complex business challenges
• Centers of excellence for domain specific
solutions
• High level inventory of anticipated
information technology developments
• Evaluation of the innovation’s potential to
impact future business drivers
• Develop capabilities to support clients' future
needs
Organisations are increasingly investing in innovations by setting up:
Innovation
Opportunity Assessment
Environment Scanning
Optimal Ideation
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
Together. Free your energies
15Version 1.0 © 2010 Capgemini. All rights reserved.
Performance results revealed by several organisations to SEI
Tangible Benefits to an Organisation
Schedule
Quality
50% reduction in release time due to -
61% improvement in productivity
48% improvement in quality due to reduction in defect injection
Cost33% decrease in the average cost of fixing defects due to early detection
and reduction in rework
RevenueEnhanced productivity and improved quality allows organisations to
price competitively, win more contracts and thereby increase top line
ROI1.7:1 to 27.7:1 improvement in ROI due to reduction in defects,
improved productivity and shorter cycle times
| The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
Together. Free your energies
16Version 1.0 © 2010 Capgemini. All rights reserved.
Summary: The Long Haul
Invest irrespective of the economic condition
Process, people and technology
Economy is not uni-directional but cyclical
Recession will follow boom and vice-versa
… To gain traction
Organisational processes help in controlling costs and showing
resilience
Performance culture aids in building a talented company
Viewing high maturity practices as strategic business collaborators
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The information contained in this presentation is proprietary. ©2010 Capgemini. All rights reserved
Thank YouContact us
Koel Bhattacharya +91 22 [email protected]
Avinash Bharj+91 22 [email protected]
www.capgemini.com
Together. Free your energies
The information contained in this presentation is proprietary. ©2010 Capgemini. All rights reserved
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