Maximise Software Investment In Uncertain Times

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  • 1. IBM Software Group Managing Applications with RationalPat Flisher FSS Business Value Lead UKI IBM Rational 2007 IBM Corporation

2. IBM Software Group | Rational software IT & Business Executive PressuresBottom line: IT flexibility enables business flexibility Enterprise Modernization2 3. Developing an IT Strategy in Uncertain TimesAndy KyteVice President & Research FellowNotes 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: vendor.relations@gartner.com. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 4. The Real IT Strategy ChallengeReturn on InvestmentReturn on Assets To identify to business To have a detailed stakeholders the potentialunderstanding of exactly for current and futurewhere you are technology innovations to deliver transformational And a current plan for the value future life cycle management To provide business of every asset change sponsors with Based on the best available accurate cost/understanding of an optimum risk/timescale estimatesdirection for IT-dependent business change initiatives And a process in place to continuously review and optimize direction and plans 5. Balance Budget Planning and Strategic Planning Budget PlanningStrategic Planning 18-month horizon Asset half-life or seven-year horizon (whichever is longer) Objective Objective quot;maximize quot;have a budgetquot; return on assetsquot; Project-focused Value-focused Administrative overhead Core discipline of IT management Once per year Continuous Horse-trading Portfolio management 6. Developing Persistent CommitmentN.B. quot;Engagementquot; with maximizing value delivery HighBusiness Engagement IT Engagement Engagementquot;They shootThe beginning horses, don't Of quot;legacyquot; they?quot;Low Live 5 Years 10 Years 15 Years 20 YearsAsset Persistence 7. IBM Software Group | Rational softwareThe world continues to get a whole lot smarterINSTRUMENTED INTERCONNECTED INTELLIGENT We now have the abilityPeople, systems andWe can respond to changes to measure, sense and objects can communicatequickly and accurately, and get see the exact condition and interact with each better results by predicting andof everything. other in entirely new ways. optimizing for future events.Today, there are 1 billion The internet of people is 1Every day, 15 petabytes of new transistors for each personbillion strong. Almost one third information are being generated. on the planet. of the worlds population will beThis is 8x more than the information By 2010, 30 billion RFID tagson the web by 2011.in all U.S. libraries. will be embedded into ourThere will be nearly 4 billion An average company with 1,000 world and across entiremobile phone subscribers employees spends $5.3 million a ecosystems.worldwide by the end of 2008.year to find information stored on its servers.Enterprise Modernization 7 8. IBM Software Group | Rational software Fleet Management Daimler FleetBoardWhats Smart?Smart end-to-end system optimizingvehicle usage and routingInnovative technology for advancedtelematic solutions Smarter Business Outcomes5-10% reduction in fuel consumption dueto optimized vehicle management10% reduction in telecommunicationscosts due to increased automationFocal Point helps us discover the optimal set of customer features How Rational Software Enablesand balance those against the Smarter Productsneeds of our business, allowing usImproved collaboration in the productto deliver continual enhancements portfolio planning process to our telematic solution.Automated release planning balancingcost, risk and reward Enterprise Modernization 8 9. IBM Software Group | Rational softwareMobile Access to Medical Images Merge Healthcare Whats Smart? Provides medical professionals access to complex medical images on mobile devices Helps ensure prompt emergency diagnosis anytime or anywhereSmarter Business Outcomes Reduced hospital operations costs Reliable, secure, scalable delivery of medical images and reports We rely on Synergy and Change to How Rational Software Enables manage the complexity of the Smarter Productssoftware and to ensure that ourglobal development teams operate Collaboration across globally distributed as one, for the best result to ourdevelopment teams customers. This software from IBM isChange management across the end-part of our livelihood; it's our DNA. to-end software lifecycleEnterprise Modernization 9 10. IBM Software Group | Rational software Challenges to the effective delivery of software A history of cost overruns, schedule slips and quality issues 62% of projects failed50% of outsourced projects to meet their schedules are expected to under perform 49% of projects sufferedOnly 42% of users arebudget overrunssatisfied with project quality Only 37% are satisfied with the41% of projects failspeed of software developmentto deliver the expected business value and ROI Only 34% of software projectsare deemed successfulcosting over $300B annually Enterprise Modernization 10 11. IBM Software Group | Rational software The software challenge in systems is even greater Software failures can be dramatic for complex systemsAerospaceMicrosoft Ford SuperAgencyZuneDuty Pickup $1B prototype rocket 1 million owners of theSales interrupted untilself-destructed just 30-gigabyte device wokeengine control software40 seconds after takeoffup one morning to findcould be updated to due to a software bug their devices inoperable recognize improperin the on-board due to poor leap year levels of heat in the guidance systemhandlingexhaust system Enterprise Modernization11 12. IBM Software Group | Rational software Old methods of measuring software engineering are inadequate and incomplete considering todays complexity and scale1960s-1970s 1980s-1990sComplexity100% Custom30% Reused Assets 70% Custom ProcessAd-hoc RepeatableTeamsCollocated Collocated On the job trainingSoftware skills Tools Proprietary Mix of Proprietary & Commercial Not integrated Not integratedProject PredictableUnpredictablePerformance Over budget, over schedule Infrequently on budget, on scheduleSuccess Rate10% 25%-33%Enterprise Modernization12 13. IBM Software Group | Rational softwareChallenges to effective software delivery todayComplexity Challenges Team ChallengesMore granular service functionality Geographically dispersed teamsin composite business applicationsthat often include business partnersLarge number of projects andEffective cross-organizationalassets including custom, outsourced visibility and synchronization,and packagedsharing becomes an imperative Process Challenges Tools ChallengesNeed for market experimentation Lack of standards impacts abilityto collaborate, automate and reportBlind adherence to process insensitiveacross teams and assumptionsto potential business trade-offsFrequent asset updates andNeed for agility at scale changing interdependenciesHow do I control this new world to gain advantage?Enterprise Modernization13 14. IBM Software Group | Rational software Software engineering metrics that measure absolutes can provide the wrong incentives to your team Enterprise Modernization 14 15. IBM Software Group | Rational softwareSoftware engineering metrics must align with desired business outcomes 3 Value2 Address development as a value creation center1 EfficiencyFoster innovationand reuse acrossorganizational andgeographical boundariesAddress development Controlas a cost centerEnterprise applicationmodernization Address the risksProductivitySpeed merger and of development Software engineeringacquisition absorptionPerceived quality base qualityReduce traditionalScope uncertainty Process agility development in favor ofsmart package softwareSecurity failureGlobal collaborationintegration and SOAplatformFailing an auditEnterprise Modernization15 16. IBM Software Group | Rational software Effective software delivery enabled by measurement Software Value investmentmanagementProject/Programaligned withGovernancebusiness priorities Global team Efficiency effectiveness and Individual quality collaboration and efficiency improvementsBreadth of Impact ControlValue INDIVIDUAL TEAM ORGANIZATION BUSINESS Measures of Reduction in Reduction inIncrease in project Increase in architecturalincreasing scrap/rework and development labor predictabilityreuse and earlier time to associated labor cost worldwideIncrease in quality value value costsReduction inImproved market Increase in organizational Improvement in custom assets,reputationproductivity, profitability release qualitytraining, tooling and and market reputationprocess variants Enterprise Modernization16 17. IBM Software Group | Rational software 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 enable collaborationthroughout the softwaredelivery process? How can I unobtrusively gathermeasurements to ensure progresstowards desired business outcomes?How do I make incremental, iterative progress towards more effective software delivery?Enterprise Modernization 17 18. IBM Software Group | Rational software Software delivery is a business process that must be continuously improved ImplementationRequirements Deployment /AssemblyDesign VerificationCIOs top priority on behalf of the CEO over last three years:Improving Business ProcessesSource: Gartner, Making the Difference: The 2008 CIO Agenda, Jan. 2008 Enterprise Modernization18 19. IBM Software Group | Rational software To improve coordination and visibility, look for ways to collaborate across the software delivery process Leverage social networkingcapabilities to enable broader andricher participation in softwareprojects CollaborateVirtualize quot;team memoryquot; to Drive organizational overcome geographic and tem