How to Lower Project Management Cost with Rational : Managing Software Investment Martin Lee IBM Rational Technical Consultant [email protected] Agenda • IT Organizations Landscape • Our Proposition : Software Investment Management • Solution Benefits • Summary 2 What are the top priorities of CxO … Aligning business strategy with tactics Driving greater business agility Controlling costs, fast ROI And the current economy is not making it any easier! Evaluating ideas for business innovation through technology Managing risk and ensuring regulatory compliance And more…. 3 42% of CIOs doubt their vision will be achieved Failed Execution Lack of Planning -- CIO Connect survey July 2008 One of the most frequent reasons for product failure is due to changing priorities “Effective measurement identifies all facets for success” No Measurement for Improvement -- The Product Portfolio Management Benchmark Report, Aberdeen Group -- Project Measurement By Steve Neuendorf 4 Today's Organizations have SMART Strategists Operational Objectives Customer Business Challenges Transformation Initiatives • Create financial products more quickly • Reduce time-to-market • Functionality of web app lacking • Improve productivity Application lifecycle Management • Inconsistencies with financial reporting • Increase innovation SOA Governance • Recent SOX audit failure • Improve predictability • Improve oversight • Enable flexible resourcing Business Metrics Ongoing Program Assessment CRM System implementation Business process optimization Business Analytics Project and Portfolio Management Program Management Enterprise SOA SOA governance Quality Time to (Defect Project Market (M) Density) A 22 2.3 Innovation (Cust. Sat. ) 7 Architecture modeling Security testing Functional testing B 14 1.4 4 C 18 1.6 6 Test management D 9 0.3 10 E 6 0.4 8 Structured testing … 5 Current scenario in IT Organizations 6 Challenges due to Disparate Tools from Multiple Vendors – Organizations who, despite owning and using numerous tools (IBM, 3rd party, homegrown) to help manage software and systems delivery, are still not able to effectively and predictably execute on projects and programs due to an inadequate, manual and error-prone project and program management environment typically involving MS Excel, homegrown tools and / or MS Project – none of which are optimized for software and systems delivery. – Status updates rely only on time-consuming, error-prone human polling and data entry based on a traditional WBS approach that is particularly inefficient and inaccurate in software and systems projects, not to mention intrusive and distracting for practitioners. 7 Agenda • IT Organizations Landscape • Our Proposition : Software Investment Management • Solution Benefits • Summary 8 Software Investment Management Enterprise Architecture Portfolio and Program Management Performance Management 9 EA as the “planning” function between strategy formulation and delivery… Strategy Enterprise Strategy Business Opportunity Bus Strategy IT Strategy Technology Availability = “the city’s purpose & goals” Enterprise wide focus Strategy Enterprise Architecture Transition Planning O u ts o u r c i n g I n i t i a ti v e s NE T W O R K I nt e r- c o m p a n y W A N ( im p l e . ) .U B B Co mp on ent Sc hed ulin g Ship pin g Yarn Buyi ng I nven to ry As sortment Plan nin g AEI Co rporate Yankee G roup Tag gin g & Pa ckin g Saturn Grou p Kn its Division Acco un tin g ta re o D h o u e s cu C yst m e tn u s to m M a a n e D ata W are ho u se re S m e g e irv e c w e l ra e n tra n e t/M la i n fri ta s ru c W N A n fi ra s tru tu c re m e sM a g a n m e n e t M i d S E le ctro n ic S erv ic e Del i ve ry O u t s o u rc e ne tw or k IS l I . .U a c i tn tu r e G r ou p I T A rc h i t e c t u r e D e f i n it i o n I n f ra s t ru c t u re D esig n & P l a n n in g E nd U s e r In f r a s t r u c t u r e U p gr a d e O u ts o ur c e N e w C or e s y s te m s Cu sto m e r S er vi ce C en tre O u ts o ur c e H e l pd e s k a n d D e s k top P la nn in g/ D e s ig n In fr as tr uc tu re O u ts ou r c in g I n iti ati ve s foc us ed on i m p l em e nti n g th e vi si o n P la nn in g/ de s ign IT C om p e te nc y c e nt re K e y G ro u p D e c i s io n P o in t s E s ta bl i s h I T C o m p e te nc y C e ntr e Enterprise Architecture O the r B u si ne s s U n i t S y s te m s K io s ks T el em et r y sy s te m s e tc = “the city plan” IT Architecture Fire and hope! Compo ne nt Kn itt ing Ord er En try Cas h Man age me nt D a a W a p h I n iti ati ve s foc us ed on m ig ra tin g to the ne w d el i ver y en vi ro nm en t Bus Arch’ture Planning C o m p e t e n c y C e n tr e I n i ti a t i v e s I n f r a s tr u c tu r e I n i ti a t i v e s P l a n n i n g / D e s i g n I n i ti a ti v e s rG Yarn Division Co mp one nt Desig n Yarn Dyein g Raleigh Plant Sen eca Plant Business Locations Business Structure Program execution Architecture Governance Design and Delivery Business Operating Environment and IT Infrastructure I nf r as t r u ct u r e System Design = “the buildings” C o m p e t en c y C e n t r e I n i t i at i v es I ni t i a t v i e s O u t s o ur c i n g I n i t i at i v es NE T W OR K In t e r - c o m p a n y W A N ( i m pl e . ) P a l n n n i g / D e si g n I n i t i at i v es a rp G D o c a D t .U B B .U W a e r h o u e s S e n tu m E e l ct r on c i S er vi ce D el i ve ry Programme Architecture O u t s ou r c e n e t w o rk D at a W ar e ho us e h a iS cIl a n g M e n tm n I iru M d a C o n tse / la w S e m rin f e icvu rts e m ts y W A a n M s iN rf e n g m u rtcs te e r G r o u p IT Ar c h i t e c t u r e D e f in i it o n In f r a s t r u c t u r e En d U s e r D e s i gn & Pl a n n i n g In f ra s t r u c t u r e Up g r a d e O u s t ou r c e H e l p de s k a n d P l a n n in g /D e s ig n I n fr a s tr u c t u re O u ts o u r c in g I ni t i at v i es f oc us ed o n i m pl e m en ti n g th e vi si o n P l a n n in g /d e s i g n I T C o m p e t e n c y c e n tr e O u s t ou r c e N e w C o re sys e t m s Cu st o m er Se r vi ce C en tr e I ni t i at v i es f oc us ed o n m i gr a t n i g t o t he n ew d el v i er y en vi r on m en t D e s k t op K e y G r ou p D e c i s o i n P o i nt s Es a t bl i s h I T Co m p e t e n c y Ce n t r e O th er B us i ne s s S y s te ms K io s k s T e le m e t ry Un i t s y s t e m s e t c Soln Outline I nf r as t r u ct u r e B .U W a e r h o u e s S e n tu m C o m p e t en c y C e n t r e I n i t i at i v es O u t s o ur c i n g I n i t i at i v es NE T W OR K E e l ct r on c i S er vi ce D el i ve ry O u t sou r ce n et w o rk D at a W ar e ho us e h a iS cIl a n g M Macro Design Micro Design Devt, etc. Programme Architecture I ni t i a t v i e s n I t er - co m pa ny W A N ( i m pl e. ) P a l n n n i g / D e si g n I n i t i at i v es a rp G D o c a D t .U B e n tm n I iru M d a C o n tse / la w S e m rin f e icvu rts e m ts y W A a n M s iN rf e n g m u rtcs te e r G r ou p T I Ar c hi t ect u r e D ef n i i ti o n n I f r ast r u ct ur e D esi gn & Pl an ni n g En d U ser n I f ra st r uc t ur e Up gr a de Cu st o m er Se r vi ce C en tr e I ni t i at v i es f oc us ed o n m i gr a t n i g t o t he n ew d el v i er y en vi r on m en t O u ts ou r ce H el p des k an d D es kt op P l a n n in g /D e s ig n I n fr a s tr u c t u re O u ts o u r c in g I ni t i at v i es f oc us ed o n i m pl e m en ti n g th e vi si o n P l a n n in g /d e s i g n I T C o m p e t e n c y c e n tr e O u ts ou r ce N ew C o re sys te m s K e y G r ou p D e c i s o i n P o i nt s Es ta bl i sh I T Co m p et en cy Ce nt r e O th er B us i ne s s S y s te ms K io s k s T e le m e t ry Un i t s y s t e m s e t c Soln Outline Macro Design Micro Design Devt, etc. Change Programs 10 • Tool suite for the development of enterprise architecture and models Behavior (UML Support) Network Topologies Organisational Charts Data Models Matrix Views Application Models Process Models Goals Objectives Class Diagrams 11 Software Investment Management Enterprise Architecture Portfolio and Program Management Performance Management 12 Project and Portfolio Management – Align Priorities, Projects, and People Executive Leadership Project & Program Managers Balance portfolios, prioritize investments Align resources with strategic enterprise objectives Make timely, informed decisions based on accurate project data Ensure best practices are repeated for all management processes. Input and track time and expense Practitioners Development Environment Leverage reusable process templates for collaboration and communication Generate accurate, objective status data 13 14 Project Execution 15 Software Investment Management Enterprise Architecture Portfolio and Program Management Performance Management 16 Automated project and process measurement can significantly improve team productively! Monitor and analyze project and process performance Collaborate across disparate development artifacts and in the context of operational and business objectives Real-time information in a single view across projects, products and geographies Automate measurement leveraging an open RESTful and Jazz compliant data integration architecture Report on relevant data with a built-in library of industry best practice metrics and dashboards Drive business innovation and reduce costs through measures and continuous process improvement Built on business intelligence platform “Until now we were gathering metrics by manual methods. Rational Insight simplifies the presentation... Overall great tool to have for optimizing project efforts and giving management a birds eye view of the project performance at all stages.” “Through the automation and dashboard capabilities in Insight, our team is saving over 40 hours a month on our reporting activities. We also can offer new capabilities such as “ondemand” dashboards which would have been very labor intensive to do without Insight” 17 Portfolio Management Program Management Co existence with the existing Solutions Protecting the current investment CxOs Financial Management Application Management Change Management Process Owners Configuration Management Build Management Quality Management Project Managers 18 Smart Measurement (Simple, Measurable, Actionable, Realistic, Timely) 19 Agenda • IT Organizations Landscape • Our Proposition : Software Investment Management • Solution Benefits • Summary 20 Align investments with business objectives Increase investment value by avoiding offstrategy projects that waste of IT budgets • Measure, analyze and objectively evaluate investment scenarios – Focus on business direction and strategy, rather than resource utilization Ensure strategic alignment of planned investments to business priorities – Pre-configured product portfolio workspace, backed by best practices provides day-1 productivity • Central oversight of budget, risks, demands and investment management – Information captured at all levels of the organization (in one solution) for consistent decision making – Analyze and prioritize enterprise architecture work identified by Rational System Architect “Management now has much better project status information to support crucial portfolio decisions.” -- Henrik Jeberg, CIO, Okonomistyrelsen, The Danish Agency for Governmental Management 21 Improve predictability of success Improve investment strategy to drive higher margin in the market • Organize work around value; identify and sequence activities and deliverables – Perform cost/benefit and trade-off analysis to make informed investment decisions – Quickly align and adjust roadmaps to changing market needs and business value – Decision-making based on objective information for strategic and agile roadmaps • Analyze stakeholder needs to drive scope and objectives – Understand the market needs that will return value to the business – Information captured at all levels of the organization via a collaborative web environment COST / BENEFIT Focus on customer value to drive success and product profitability “By enhancing our decision making, [IBM Rational] has helped us choose the products and features that deliver the greatest customer and business value. This has improved our productivity and reduced costs because we are developing the right products for our markets.” Tobias Chyssler, Product Management ABB Process Automation 22 Manage and optimize project execution Enable collaborative and process-driven execution to overcome the issues that cause projects to fail Scope, Tasks and Time Financials • Reduce delays and mistakes with real-time, “in-context” collaboration – Built on the open Jazz architecture integrating the entire application lifecycle for transparent and seamless status across the disciplines Integrated project management Resources – Software as a Service (SaaS) for lower cost of ownership, ease of deployment and faster time to market Skills • Validate investments continually – Analyze and estimate costs, benefits and risks; redeploy resources with changing priorities • Guide teams on best practice processes for increased consistency and predictability – Supports traditional, agile and hybrid methodologies “Today we have higher quality in our projects. There is no doubt that the control of the projects has been improved – it has saved us time and a lot of resources” -- Kasper Schmidt, Manager City of Copenhagen – Leverages best practices and the IBM integrated Software & Product Lifecycle Management Platform 23 Continuous Measurement of team performance Automate project and process measurement to improve team productivity • Measure, monitor, analyze and trend project and process performance – Access data across the entire application lifecycle through the open Jazz architecture Real-time information in a single view across projects, products and geographies – Automatic collection of data using built-in collectors – Built-in library of industry best practice metrics and dashboards • Continual process improvement to improve organizational outcomes – Process improvement and best practice guidance through the Measured Capability Improvement Framework (MCIF) – Built on best-in-class business intelligence platform from IBM Cognos Control Settings Better Results “Organizations exercising world-class performance management practices enjoy a 2.4 times market returns of typical companies” BusinessWeek Study: The Payoff of Pervasive Performance Management 24 Agenda • IT Organizations Landscape • Our Proposition : Software Investment Management • Solution Benefits • Summary 25 42% of CIOs doubt their vision will be achieved -- CIO Connect survey July 2008 IT Planning Aligning to Execution Business Excellence Priority One of the most frequent reasons for product failure is due to changing priorities “Effective measurement identifies all facets for success” Continuous Measurement for Improvement -- The Product Portfolio Management Benchmark Report, Aberdeen Group -- Project Measurement By Steve Neuendorf 26 W5: Rational W7: RA+ SWG Software Investment Management Test Drive (3 days) Collab. Application Lifecycle Management ( 2 days) TOGAF and System Architect (1 day) Software Quality Management ( 2 days) 27 How to Lower Project Management Cost with Rational : Managing Software Investment Thank You Martin Lee IBM Rational Technical Consultant [email protected] 28