Transforming Business
Needs into Business Value
Path to Agility
May 2013
Agile Transformation
Professional services career
Large scale projects
Application development & Integration
Project management
Business leadership
Today’s Challenge
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
Why Agile?
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
The Agile Manifesto
February 11 , 2001
Individuals and interactions over processes
and tools
Working software over comprehensive
documentation
Customer collaboration over contract
negotiation
Responding to change over following a plan
Transparency
Inspection
Adaptation
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)
2013 Key Challenges for the CEO
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
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
How does CEO measure IT Organization?
• 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?
Evolving Challenges
Technology Provider Imperatives
Mobile in the Enterprise
Reinvent Your Business Design Processes
Provide Adaptive, Flexible and Secure Integration
Leverage Data to Drive Insight
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
Upgrade Your Business Design Processes
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
Adaptive, Flexible & Secure Integration
Unlock and expose back office capabilities and information
Seamless cross channel interactions
Simplify development to support growing types and locations of
applications
Leverage Data to Drive Insight
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
Desired Outcomes
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
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
Establish your Framework
Define “your” SDLC
Adopt Best Practices
Measure Results
End-to-end Traceability
Development Tool Integration
Real Time Collaboration
Continuous Integration
Operational Model
BUSINESS & TECHNOLOGY DRIVERS
BUSINESS STRATEGY
PROJECT PORTFOLIO
BUSINESS
REQUIREMENTS
FFICIENCY
RELEASE ER
ELEASE
RELEASE
“D
RIGHT
1 OING THINGS
2
N”
BUSINESS
SOLUTIONS
Efficiency Gains
Improve and Measure
BUSINESS
REQUIREMENTS
FFICIENCY
RELEASE ER
ELEASE
RELEASE
“D
RIGHT
1 OING THINGS
2
N”
Applied Lessons Learned
BUSINESS
SOLUTIONS
Not there yet, keep going
What is your Business Value Maturity?
LEVELS OF MATURITY
Initial
Managed
Organization often produce products and services that work
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
Optimized
Leading
Enhance Business Strategy
Realize Business Results
Predictable
Establish Business Impact Metrics
Managing
Measure Business Impact
Managed
Evaluate Organizational Efficiency
Enhance SDLC and Governance
Initial
Create SDLC and Governance
Implement SDLC and Governance
Improved Business Value
BUSINESS & TECHNOLOGY DRIVERS
BUSINESS STRATEGY
PROJECT PORTFOLIO
BUSINESS
REQUIREMENTS
RELEASE ER
ELEASE
RELEASE
FFICIENCY
1 OING THINGS
2
N”
“D
RIGHT
BUSINESS
SOLUTIONS
Reevaluate the value and benefits after every release
“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 CASE
BUSINESS CASE
Business Objectives, Drivers & Expectations
Business Features (Streams) and Benefits with measureable value
Key Stakeholders & Stakeholder Needs
Initial User Experience Research & Concepts
High Level Architecture
Define Benefit and Cost
BUSINESS FEATURE (STREAM)
Feature 1
Feature 2
Feature n
Benefit ($) / Expense ($)
Benefit ($) / Expense ($)
Benefit ($) / Expense ($)
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 and cost can be attributed to every Epic and Story
Decomposition of features into granular elements for development
Kano Approach for Prioritization
Help business
understand what
needs to be
delivered in a good
product
AND
Illustration of features vs satisfaction (Wikipedia)
Classify features into three categories of customer satisfaction:
• Must Have/Basic
• Performance Needs/Linear
• Exciter
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.
Manufacturing Example
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
Sales and Service
Productivity Suite
Ultimate Value
5 Year Goals:
50% Revenue Growth
20% Decrease Service Cost
Banking Example
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
Corporate Compliance
Ultimate Value
Decreased risk by 30%
Increased Reporting effectiveness by 24%
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
REPEATABLE DELIVERY PROCESS
 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
www.iccohio.com
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.
Product Owner
Scrum Master
Scrum Team
Business Analyst
Tech Lead
Developers
QA Analyst
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.
DEEPER DIVE INTO
Application Lifecycle Management
Quality Assurance
Application Lifecycle Management Vendors
Gartner's Magic Quadrant for ALM
Microsoft Team Foundation Server
www.iccohio.com
IBM Rational Team Concert
www.iccohio.com
WHY DO WE NEED ALM?
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
KEY BENEFITS
Continuous
Visibility
www.iccohio.com
Traceability
IDE
Integration
Task
Management
Real Time
Collaboration
Source
Control & CI
CONTINUOUS VISIBILITY
Real Time Facts
Project Burndown
Sprint Burndown
www.iccohio.com
CONTINUOUS VISIBILITY
Real Time Facts
Test Case Execution Report
Defect Tracking Report
Zero Defects
www.iccohio.com
TASK MANAGEMENT & COLLABORATION
Support for Tasks for all Team Members
www.iccohio.com
IDE INTEGRATION & TRACEABILITY
Product Backlog
User Stories
Traceable
www.iccohio.com
Verifiable
Auditable
SOURCE CONTROL & CONTINUOUS INTEGRATION
www.iccohio.com
Traceable
Verifiable
Auditable
CODE BRANCHING
www.iccohio.com
Static Code Analysis – SONAR
CONTINUOUS VISIBILITY
Code Quality Analysis - SONAR
•
•
•
•
Test Coverage
Code complexity analysis
Code duplication analysis
Adherence to standards
DEEPER DIVE INTO
ICC’s Delivery Approach
ICC Delivery Approach
 REPEATABLE DELIVERY PROCESS
 TOP MANAGEMENT &
TECHNOLOGY TALENT
Process
 SCALABLE TEAMS
People
Technology
“WELL OILED MACHINE”
 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