Transcript
Page 1: Maximise Software Investment In Uncertain Times

®

IBM Software Group

© 2007 IBM Corporation

Managing Applications with Rational

Pat FlisherFSS Business Value LeadUKIIBM Rational

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IBM Software Group | Rational software

Enterprise Modernization 2

IT & Business Executive Pressures

Bottom line: IT flexibility enables business flexibility

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Notes accompany this presentation. Please select Notes Page view.These materials can be reproduced only with written approval from Gartner.Such approvals must be requested via e-mail: [email protected] is a registered trademark of Gartner, Inc. or its affiliates.

Developing an IT Strategy in Uncertain Times

Andy Kyte

Vice President & Research Fellow

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The Real IT Strategy Challenge

• To have a detailed understanding of exactly where you are

• And a current plan for the future life cycle management of every asset

• Based on the best available understanding of an optimum direction

• And a process in place to continuously review and optimize direction and plans

• To identify to business stakeholders the potential for current and future technology innovationsto deliver transformational value

• To provide business change sponsors with accurate cost/ risk/timescale estimates for IT-dependent business change initiatives

Return on AssetsReturn on Investment

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Balance Budget Planningand Strategic Planning

• 18-month horizon

• Objective —"have a budget"

• Project-focused

• Administrative overhead

• Once per year

• Horse-trading

• Asset half-life or seven-year horizon (whichever is longer)

• Objective — "maximize return on assets"

• Value-focused

• Core discipline of IT management

• Continuous

• Portfolio management

Budget Planning Strategic Planning

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Developing Persistent Commitment

Asset Persistence

5 Years 10 Years 15 Years 20 Years

En

ga

ge

me

nt

Low

High

Live

Business Engagement

IT Engagement

The beginningOf "legacy"

"They shoot horses, don't

they?"

N.B. "Engagement" with maximizing value delivery

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Enterprise Modernization 7

The world continues to get a whole lot smarter

INSTRUMENTED

We now have the ability

to measure, sense and see the exact condition

of everything.

� Today, there are 1 billion transistors for each person on the planet.

� By 2010, 30 billion RFID tags will be embedded into our world and across entire ecosystems.

INTERCONNECTED

People, systems and

objects can communicate and interact with each

other in entirely new ways.

� The internet of people is 1 billion strong. Almost one third of the world’s population will be on the web by 2011.

� There will be nearly 4 billion mobile phone subscribers worldwide by the end of 2008.

INTELLIGENT

We can respond to changes

quickly and accurately, and get better results by predicting and

optimizing for future events.

� Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries.

� An average company with 1,000 employees spends $5.3 million a year to find information stored on its servers.

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Enterprise Modernization 8

Fleet ManagementDaimler FleetBoard

What’s Smart?� Smart end-to-end system optimizing

vehicle usage and routing� Innovative technology for advanced

telematic solutions

Smarter Business Outcomes� 5-10% reduction in fuel consumption due

to optimized vehicle management� 10% reduction in telecommunications

costs due to increased automation

How Rational Software Enables Smarter Products� Improved collaboration in the product

portfolio planning process� Automated release planning balancing

cost, risk and reward

“Focal Point helps us discover the

optimal set of customer features

and balance those against the

needs of our business, allowing us

to deliver continual enhancements

to our telematic solution.”

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Enterprise Modernization 9

“We rely on Synergy and Change to

manage the complexity of the

software and to ensure that our

global development teams operate

as one, for the best result to our

customers. This software from IBM is

part of our livelihood; it's our DNA.”

Mobile Access to Medical Images Merge Healthcare

What’s Smart?� Provides medical professionals access to

complex medical images on mobile devices� Helps ensure prompt emergency diagnosis

– anytime or anywhere

Smarter Business Outcomes� Reduced hospital operations costs� Reliable, secure, scalable delivery of

medical images and reports

How Rational Software Enables Smarter Products� Collaboration across globally distributed

development teams� Change management across the end-

to-end software lifecycle

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Enterprise Modernization 10

Challenges to the effective delivery of softwareA history of cost overruns, schedule slips and quality issues

“Only 34% of software projects are deemed successful

costing over $300B annually”

“Only 42% of users are satisfied with project quality”

“Only 37% are satisfied with the speed of software development”

“62% of projects failed to meet their schedules ”

“50% of outsourced projects are expected to under perform”

“49% of projects suffered budget overruns”

“41% of projects failto deliver the expected

business value and ROI”

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Enterprise Modernization 11

$1B prototype rocket self-destructed just

40 seconds after takeoff due to a software bug

in the on-board guidance system

1 million owners of the 30-gigabyte device woke up one morning to find

their devices inoperable due to poor leap year

handling

The software challenge in systems is even greater Software failures can be dramatic for complex systems

AerospaceAgency

MicrosoftZune

Ford Super Duty Pickup

Sales interrupted until engine control software

could be updated to recognize improper levels of heat in the

exhaust system

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Enterprise Modernization 12

Old methods of measuring software engineering are inadequate and incomplete considering today’s complexity and scale

RepeatableAd-hocProcess

CollocatedSoftware skills

CollocatedOn the job training

Teams

1960s-1970s 1980s-1990s

Complexity 100% Custom 30% Reused Assets70% Custom

Tools ProprietaryNot integrated

Mix of Proprietary & CommercialNot integrated

Project Performance

PredictableOver budget, over schedule

UnpredictableInfrequently on budget, on schedule

Success Rate 10% 25%-33%

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Enterprise Modernization 13

Challenges to effective software delivery today

Complexity Challenges Team Challenges

How do I control this new world to gain advantage?

� More granular service functionality in composite business applications

� Large number of projects and assets including custom, outsourced and packaged

� Geographically dispersed teams that often include business partners

� Effective cross-organizational visibility and synchronization, sharing becomes an imperative

Process Challenges Tools Challenges

� Need for market experimentation

� Blind adherence to process insensitive to potential business trade-offs

� Need for agility at scale

� Lack of standards impacts ability to collaborate, automate and report across teams and assumptions

� Frequent asset updates and changing interdependencies

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Enterprise Modernization 14

Software engineering metrics that measure absolutes can provide the wrong incentives to your team

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IBM Software Group | Rational software

Enterprise Modernization 15

Software engineering metrics must align with desired business outcomes

� Address development as a value creation center

� Foster innovation and reuse across organizational and geographical boundaries

� Enterprise application modernization

� Speed merger and acquisition absorption

� Reduce traditional development in favor of smart package software integration and SOA

� Address the risks of development

� Perceived quality

� Scope uncertainty

� Security failure

� Failing an audit

� Address development as a cost center

� Productivity

� Software engineering base quality

� Process agility

� Global collaboration platform

Efficiency

Control

Value

11

22

33

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Enterprise Modernization 16

Control

Value

Efficiency

Bre

ad

th o

f I

mp

ac

t

Effective software delivery enabled by measurement

TEAMINDIVIDUAL BUSINESSORGANIZATION

Measures ofincreasing

value

Global teameffectiveness and

collaboration

Project/ProgramGovernance

Softwareinvestment

managementaligned with

business priorities

Value

� Reduction in scrap/rework and associated labor costs

� Improvement in release quality

� Reduction in development labor cost worldwide

� Reduction in custom assets, training, tooling and process variants

� Increase in project predictability

� Increase in quality

� Improved market reputation

� Increase in architectural reuse and earlier time to value

� Increase in organizational productivity, profitability and market reputation

Individual quality and efficiency improvements

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Enterprise Modernization 17

How can I get to more effective software delivery from where I am today?

“How do I further automate software delivery within my organization?”

“How can I unobtrusively gather measurements to ensure progress towards desired business outcomes?”

“How can I enable collaboration throughout the software delivery process?”

“How do I make incremental, iterative progress towards more effective software delivery?”

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Enterprise Modernization 18

Software delivery is a business process that must be continuously improved

Requirements

Design

Implementation/Assembly

Verification

Deployment

CIO’s top priority on behalf of the CEOover last three years:

“Improving Business Processes”Source: Gartner, “Making the Difference: The 2008 CIO Agenda,” Jan. 2008

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Enterprise Modernization 19

To improve coordination and visibility, look for ways to collaborate across the software delivery process

� Leverage social networking capabilities to enable broader and richer participation in software projects

� Virtualize "team memory" to overcome geographic and temporal gaps in the software lifecycle

� Enable flexible, global resourcing and energy-saving workplace models

Drive organizational consensus on priorities and improve workforce

productivity

Collaborate

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IBM Software Group | Rational software

Enterprise Modernization 20

In Context collaboration

Project Manager

Developer / Build Engineer

Tester

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IBM Software Group | Rational software

Enterprise Modernization 21

To increase efficiency, look for ways to automatethe business process of software delivery

� Improve productivity and reduce headcount

� Standardize processes and automate repetitive tasks to improve team efficiency while reducing time to value

� Enhance regulatory compliance through self documenting data and workflows

Lower costs and improve quality by automating

workflow based on real-time information

Automate

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IBM Software Group | Rational software

Enterprise Modernization 22

Process Awareness

Project Manager

Developer / Build Engineer

Tester

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Enterprise Modernization 23

To ensure progress towards business outcomes, look at how to report on the software delivery process

� Make better informed decisions by leveraging the real-time instrumentation of the software delivery process

� Leverage metrics for continuous individual and team capability improvement

� Gain insight into a projects which span organizational and geographic boundaries with minimal disruption

Continuously improve by measuring progress

against desired business outcomes

Report

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Application Management and Modernisation Solutions

� Aimed at Customers with:

� Escalating or Permanently High Costs – Most spend too much time and resource on maintaining old applications (up to 80% of IT budget is maintenance)

� Desire to Innovate and Gain a Competitive Edge –In the current economic conditions IT needs to enable the business to differentiate and react speedily as those conditions change – yet resource available to do so is tied up in the existing applications.

� Proven, Available Solutions - whichever direction the process takes you, secure risk free and productive support solutions are essential.

� Real Solutions:

� Organisations can do two things outside the scope of this discussion - nothing (and pay for ever increasing costs) and replace everything by buying packages or outsourcing totally

� Once the applications are there are four other options which can to be discussed in detail –each will bring its own set of returns :

• “Update” – Increase the support of the business and the business throughput by improving the user experience (both look and feel and navigation)

• “Optimise” – Make it easier (and cheaper) to maintain the back-end applications. This can also support Application or Package retirement in a managed way (eg full impact known and understood with a mediation process in place for ensuring continuity of service [and services])

• “Convert” – Move the existing applications ‘as is’ to a new platform using automated tooling. Often

• ..and “Re-write” – Start again but making use of the existing assets and extracted designs. Move to a ‘write once, use many times’ environment, increaing quality and lowering costs

� …but first there needs to be a management framework in place.

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Older, Expensive

to Maintain & Inflexible

(legacy) Applications

Update “look & feel”

ModernScreens

Portal

The Four Options…

ExtractDesign

Re-Build orNew

Application

RAD or RBD

Refactoring“Rationalised”

EfficientVersion

of theApplication

ReusableComponents

or Services

SOA

RBDorRAD

UpdatedApplication

(Java)

UpdatedApplication(COBOL)

Transformation/Conversion

UpdatedApplication(Java EJB)

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IBM Software Group | Rational Software

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Enterprise Modernisation in a Managed Framework

Application ModernisationPropositions

-Update-Optimise-Rewrite-Convert

Where are we starting from? Do we have a picture of the current Architecture?All the portfolio? Do we know which Business processes are involved?

How do we decide where we should start? Which first steps will be low risk and high return?

Have we got a suitable Management Process for the Projects in place? Will we have visibility of progress (whoever is doing the work)?

Now we know what we are going to do first and why, which tools are we going to use? What services do we need?

How are we going to document the requirements? ..through to – How are we going to re-test everything?

Next Project

LoopBack

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IBM Software Group | Rational Software

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Enterprise Modernisation – via Systems Architect, Focal Point and Rational Team Concert

Application ModernisationPropositions

-Update-Optimise-Rewrite-Convert

Systems Architect

Focal Point

Rational Team Concert

HATS, RAA, RAM, RAD, RBD, RDi, RDz, Conversion Tools, …..

ReqPro, Doors, RRC, CC, CQ, Synergy, RQM, QM portfolio, …..

Next Project

LoopBack

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Process Improvement

Rational Portfolio in Modernisation Projects

Manage

Test

Requirements

Legacy

UpdateScreens

Re-WriteOptimise

Convert

Assets

RAM

RPT For Portal

SOADesignAnalyse

Architect

Build

Watchfire

RMC

Enterprise Architecture-(Systems Architect)- “As Is” and “To Be”

Rational Transformation

Workbench

Automated Conversion Tools

HATS

RTC

RQM

RRC

Decisions?Focal Point

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Returns….

� Return on Investment or Return on Assets?� Link to Gartner slides (Delivered at the Rational Executive Forum in April 09)

� Implementing and using a product like Systems Architect will produce a Return on Investment in the short term of 20 -30%; Managing your Application Portfolio actively and effectively over a longer period of time will give the business a much larger Return on their Assets – over the lifetimes of the assets

� Returns can be calculated for each product deployed and for supporting a customer’s overall investment but the returns are very much customer specific – we need to know the “As Is” and the “To Be” to calculate the returns, whichever view is to be taken.

� Returns are calculated by a combination of working with the customer, Proofs of Technology and Concept and by comparing with experiences of similar customers.

� The Measured Capability Improvement Framework� MCIF provides a structured approach to helping organisations identify improvement in the

core development practices that most impact business outcomes.

� It is a services engagement involving key customer personnel that looks at the current capabilities, what can be improved, how – and the returns to be expected

� Jazz products.� A new set of benefits are developing for the Jazz products shown below which can be

summed up as “Return on your People as the most important Asset”

� They start with the concept of Collaborate, Automate and Measure

� We expect to measure all activities going forward to see the Returns as the develop using Rational Insight

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