the path to business agility

Post on 19-May-2015

606 Views

Category:

Business

1 Downloads

Preview:

Click to see full reader

DESCRIPTION

Seventy percent of the companies on the Fortune 1000 list ten years ago have vanished—many because they were unable to adapt to change. Companies face constant change and threats triggered by market and technology shifts. In the complex business world that we operate in today, companies must be able to adapt rapidly to the constant changes in the environment and customer behavior. Implementing agile software development practices is not enough to enable business agility. Business agility also requires the ability to rapidly change business processes, organization, skills, rules, data, and technology. Download the recording here: http://bit.ly/1naPCNT

TRANSCRIPT

0 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Title Here

The Path to Business Agility

John  E  Parker,  CEO  Enfocus  Solu5ons,  Inc.    

Enfocus  Solu+ons,  Inc  So8ware  and  Service  for  Business  Agility  

1 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

John E. Parker •  Chief Executive Officer of Enfocus Solutions Inc. •  Previous Positions

o  EVP and CTO, MAXIMUS Inc. o  Outsourced CIO, Enterprise Strategy Consultant o  EVP and Cofounder, Spectrum Consulting Group o  BAI Instructor of Finance and Banking o  KPMG Partner

•  Expertise o  Agile Development using Scrum and Kanban o  Agile Portfolio and Program Management o  Business Intelligence and Analytics o  IS Service Strategy and Design o  Enterprise Business Analysis o  Collaborative Business Architecture o  Business Process Improvement, Reengineering, and

Management

Contact: •  http://enfocussolutions.com •  info@enfocussolutions.com

2 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Compe++ve  Pressure  

Disrup+ve  Technologies  

Regulatory  Change  

Customer  Demands  &  Expecta+ons  

Economic  Instability  

Security  Threats  

Today’s Challenging Business Environment

Nega+ve  Social  Media  Impacts  

3 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

The Problem

•  Seventy percent of the companies on the Fortune 1000 list ten years ago have vanished—many because they were unable to adapt to change. Companies face constant change and threats triggered by market and technology shifts.

•  In the complex business world that we operate in today, companies must be able to adapt rapidly to the constant changes in the environment and customer behavior.

•  Implementing agile software development practices is not enough to enable business agility. Business agility also requires the ability to rapidly change business processes, organization, skills, rules, data, and technology.

4 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Why  Customer  Experience?  •  Commodi5za5on  has  stripped  away  exis5ng  sources  of  differen5a5on.    •  Tradi5onal  industry  boundaries  have  dissolved.    •  Customers  have  more  power  than  ever.    

Business  Impact  of  CX  CX  leaders  had  a  cumula5ve  43%  gain  in  performance  over  a  six-­‐year  period  (2007  to  2012),  compared  with  a  14.5%  increase  for  the  S&P  500  Index  and  a  33.9%  decrease    for  CX  laggards    

The Age of the Customer

Source:  FORRESTER  PERSPECTIVE:  The  Business  Impact  Of  Customer  Experience  

5 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

What is Business Agility?

Agility is the ability of a business to react quickly to change by: •  Quickly sensing threats, problems

and opportunities and

•  Rapidly responding with solutions that address business and customer needs

•  By efficiently changing processes, responsibilities, rules, data, and technology

•  To Realize expected business and customer outcomes.

6 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

PortfolioService Strategy

Business C

hangeProgram

BusinessService

TechnicalService

Service DesignService PortfolioManagement

Customer Development

LaunchImproveRetire

BusinessFeature

ArchitectureFeature

BusinessEpic

ArchitectureEpic

EpicBacklog

PDIA - Plan-Do-Inspect-Adapt

Innovation Management Impacts, Gaps, and Risks Value Flow Management

FeatureBacklog

Collaborative Business Architecture

Product Discovery

People Process

Data RulesTechnology

People Process

Data RulesTechnology

Release Planning and Management

CheckPerformanceLearn

Conduct Experiments

Bundle Bundle Bundle

DevOps UX Devops RTEShared

ProductManagement

Developers & Testers

ScrumMaster

ProductOwner

PortfolioManagement

ProductBacklog

Negotiated Changes

Sprint 1 Sprint 2 Sprint 3 Sprint 4 HIP Sprint

ProductBacklog

Sprint 1 Sprint 2 Sprint 3 Sprint 4 HIP Sprint

ProductBacklog

Sprint 1 Sprint 2 Sprint 3 Sprint 4 HIP Sprint

Bundle

Bundle

Bundle

Bundle

Bundle

System Team

Validate Before Building

Continuous Verification Develop on Cadence

Deliver on Demand

Outcome Based Services

ChangeExperiment

Change Experiments Validated Learning

Dev Team

Dev Team

OutsourcedTeam

ProductBacklog

ProductBacklog

Reusable Knowledge

MeasurePerformance

Reduce Waste

Hypothesis & Assumptions

Bundle Bundle Bundle

Agile Release Train

Agile Product Development

SDP SDP

Managing Flow of Value and Realization of Benefits

ServiceManagement

AgileDevelopment

Team

Kanban Management Validated Learning

Lean Value Streams

Lean Business Agility Framework

Continuous Customer Engagement

MVPs/ExperimentsCustomer & Need

Pivots

Heuristics

EpicOwner

FeatureOwner

BusinessSponsor

EnterpriseArchitect

ServiceOwner

ProcessOwner

Change Team

Understand Impacts. Gaps & Risks

Eliminate Waste

Hypothesis and Assumptions

Address Real Problem or Need

© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

TransformationEpic

UtilityWarranty

Customer Experience

Transparency

Limit WIPVisualize Workflow

Manage Flow

Value StreamMapping

Participatory DesignCurrent StateFuture State

Transformation PlanService Delivery Model

Learning

People Process

Data RulesTechnology

Team

Value StreamOwner

ReleaseManagement

Lean Budgeting and Accounting

Value StreamAccounting

Lean-AgileBudgeting

Innovation Accounting

Business and Customer Outcomes

Lean Change Canvas

Hypothesis and Assumptions

ManageFlow

Plan-Do-Inspect-Adapt

7 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Services  

Epics  

Features  

Stories  

Nego5ated  Changes  

Impacts  

Service  Design  

PorHolio  

Program  

Team  

Business  Change  

Gain  an  understanding  of  customers  and  their  problems,  and  design  services  to  address  the  problems.  Monitor  services  and  related  components  to  ensure  they  are  cost  effec5ve  and  deliver  value  to  the  customer.  Ac5ve,  planned,  and  re5red  services  are  maintained  in  the  Service  PorHolio.  

Driven  by  business  opportuni5es,  mergers  and  acquisi5ons,  technological  change  and    market  threats,  por]olio  management  evaluates  and  priori5zes  Epics  represen5ng  approved  ini5a5ves  that  drive  business  value.  Each  Epic  is  analyzed  for  impacts,  gaps,  and  risks.  Epics  are  maintained  in  the  Enterprise  Epic  Backlog.  

Roadmaps  

Releases  

Sprints  

Tasks  

Self-­‐organizing  teams  are  empowered  to  design,  build,  and  test  their  feature  or  components.    Their  work  is  maintained  in  a  local  Product  Backlog  that  is  under  the  purview  of  the  team’s  product  owners.      

Product  Management  decompose  Epics  into  Features.  Each  Feature  is  validated  to  ensure  it  solves  the  customers’  problem  and  delivers  value  to  the  business.  Features  are  road  mapped  and  allocated  to  releases.  Release  Management  work  closely  with  teams  to  plan  and  deliver  releases.  Features  are  maintained  in  a  Feature  Backlog  and  managed  using  Kanban.  

Change  champions  use  Lean  Change  Methods  to  nego5ate  needed  changes  to  business  processes,  technology,  data  and  business  rules.  Closely  working  with  stakeholders,  change  experiments  are  defined  and  executed  in  the  form  of  MVCs.  Learning  is  validated  and  adjustments  are  made  before  full  enterprise  deployment.  Work  is  managed  using  Kanban  and  coordinated  in  Release  cycles.    

Validated  Learning  

Managing Business Agility – The Big Picture

8 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Business Agility: New Roles for BAs and PMs

Business  Analyst  

Requirements  are  now  defined  as  stories  and  elaborated  through  conversa5ons  with  stakeholders.  The  tradi5onal  requirements  development  and  management  role  changes  significantly  in  Agile.    New  Roles  for  Business  Analyst  are:  •  Service  Design  •  Product  Management  •  Business  Change  Management  •  Product  Owner  

Project  Managers  

Project  management  is  very  different  in  an  Agile  environment.    Self-­‐organizing  teams  now  define  and  manage  their  own  tasks.    New  roles  for  Project  Managers  are:  •  Release  Train  Engineers  •  Por]olio  Management  •  Business  Change  Management  

9 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Customers   Services   Business  

Development  And  Test  

Opera+ons  &  Support  

Reduce  5me  to  obtain  and  respond  to  

customer  feedback  and    design  needed  

service  enhancements  

Reduce  5me  to  enable  business  changes  to  support  service  enhancements  

Balance  speed,  cost,  quality,  and  risk  through  con5nuous  

delivery  

Accelerate  so8ware  delivery  

to  support  service  changes  

Sa5sfy  customers  through  opera5onal  

excellence  

Business Agility

Con+nuous  Service  Improvement  

Enterprise  Agile  Delivery  

Customer  Needs  Valida8on   Service  Strategy  &  Design   Business  Change  Management  

DevOps   Agile  Development  

Impacts,  Gaps,  and  Risk  Customer  &  Market  Needs   Service  Design  Thinking  

10 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Service  Strategy  &  Design  

Customer  Needs  

Valida+on  

Business  Change  

Management  

Achieving Business Agility

1.  Enterprise  Agile  Delivery  •  Agile  Delivery  Teams  (Scrum  or  Kanban)  •  Agile  Por]olio  and  Program  Management  •  DevOps  

2.  Service  Strategy  and  Design  •  Service  Por]olio  Management  •  Service  Delivery  Model  •  Service  Design  

3.  Customer  Needs  Valida+on  •  Customer  Discovery  •  Customer  Valida5on  •  Customer  Experience  

4.  Business  Change  Management  •  Collabora5ve  Business  Architecture  •  Impact  Analysis  •  Lean  Change  Management  

Enterprise  Agile  

Delivery  

11 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Enterprise  Agile  Delivery  

12 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Why Agile?

•  The agile process is the universal remedy for software development project failure. •  The secret is the trial and error and delivery of the iterative process. •  Software should be built in small, iterative steps with small, focused teams. •  The project team delivers functionality in small bites or steppingstones.

So8ware  applica5ons  developed  through  the  agile  process  have  three  +mes  the  success  rate  of  the  tradi5onal  waterfall  method  and  a  much  lower  percentage  of  +me  and  cost  overruns.  

Source:  Standish  Chaos  Report  2011  

13 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Enterprise Agile Delivery

Enterprise  Agile  

Delivery  

Agile  Teams  (Scrum  or  Kanban)  

Agile  Por]olio  and  Program  

Management  

DevOps  

•  Self  organizing  teams  manage  day-­‐to-­‐day  work  using  either  Scrum  or  Kanban.  

•  DevOps    promotes  communica5on,  collabora5on  and  integra5on  between  so8ware  developers  and  IT  opera5ons  and  support  teams.  

•  The  goal  is  to  support  rapid  or  con5nuous  deployment  of  releases  by  maximizing  predictability,  efficiency,  security  and  maintainability  of  opera5onal  processes.    

 

•  Defines  and  priori5zes  epics  which  are  priori5zed  based  on  funding  

•  Decompose  Epics  into  Features  •  Allocate  Features  to  Releases  •  Releases  are  built  by  a  group  of  agile  teams  called  an  Agile  Release  Train  

14 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Enterprise Agile Delivery Agile Teams (Scrum or Kanban)

Strategies   Outcomes  1.  Determine  ini5al  areas  to  apply  agile  2.  Determine  agile  methods  to  use  (e.g.  Scrum,  

Kanban)  3.  Organize  and  collocate  ini5al  set  of  agile  

teams    4.  Establish  ini5al  product  backlogs  5.  Define  methods  for  es5ma5ng  (story  points  

or  ideal  hours)  6.  Provide  training  and  support  to  agile  teams  

across  first  few  sprints  un5l  team  veloci5es  are  known  and  established    

7.  Develop  inspect  and  adapt  processes  using  retrospec5ves  

8.  Define  agile  ceremonies  

1.  Shorter  cycle  5mes  for  development  of  so8ware  

2.  Higher  quality  and  lower  defect  density  3.  More  transparency  and  beker  visibility  for  

agile  teams  and  the  business  4.  Higher  customer  sa5sfac5on  

15 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Enterprise Agile Delivery Agile Portfolio and Program Management

Strategies   Outcomes  1.  Chose  framework  for  scaling  agile  2.  Define  value  streams  and  align  teams  to  

value  streams  3.  Design  release  planning  process  4.  Standardized  methods  for  defining  and  

priori5zing  Epics  5.  Develop  process  to  prepare  roadmaps  6.  Enable  visualiza5on  of  work  at  the  por]olio  

and  program  level  7.  Modify  budget  and  accoun5ng  processes  to  

support  agile  8.  Modify  stakeholder  review  and  approval  

processes  9.  Define  new  roles  and  responsibili5es  for  

agile  por]olio  and  program  management  •  Release  Train  Engineer  •  Product  Management  •  Por]olio  Manager  

1.  Shorter  cycle  5mes  for  development  of  ideas  to  delivery  to  the  business  

2.  Delivery  of  more  business  value  achieving  beker  business  outcomes  

3.  Coordinated  release  management  across  mul5ple  teams  in  the  value  stream  

4.  More  transparency  and  beker  visibility  for  agile  teams  and  the  business  

5.  Quicker  and  higher  ROI  

16 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Enterprise Agile Delivery DevOps

Strategies   Outcomes  1.  Conduct  planning  mee5ngs  to  define  the  culture  

and  capabili+es  to  support  DevOps.  •  Real  5me  change  control  •  User  access  control  •  Automa5on  •  Visibility  and  control  •  Configura5on  management  

2.  Iden5fy  quick  wins  to  enhance  communica5ons  and  coordina5on  between  the  two  groups  

3.  Discuss  types  of  releases,  dura5on  of  releases,  and  changes  that  need  to  be  made  to  the  current  release  management  process  

4.  Evaluate  how  process  is  currently  automated  and  explore  opportuni5es  for  addi5onal  automa+on  

5.  Explore  opportuni5es  for  using  cloud  technologies  to  quickly  provision  new  environments  

6.  Ini5ally  implement  procedures  to  support  con+nuous  integra+on  

7.  Later,  implement  procedures  or  prac5ces  to  support  con+nuous  deployment  

8.  Assess  risks  and  find  ways  to  manage  and  control  risks  

1.  Shorter  cycle  5mes  for  development  of  so8ware  2.  Higher  quality  and  lower  defect  density  3.  Coordinated  release  management  across  mul5ple  

teams  in  the  value  stream  4.  More  transparency  and  beker  visibility  for  agile  

teams  and  the  business  

17 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Challenges Scaling Agile •  Overcoming cultural problems •  Achieving transparency and visibility into what is

happening in the business and across multiple teams.

•  Realigning roles and responsibilities o  Transforming PMs and BAs to new roles o  Transitioning QA and testing to teams

•  Applying agile to other IT areas that are not software development: ERP, Infrastructure, etc.

•  Overcoming process inconsistencies that have evolved among various Agile teams

•  Extending agile to business change activities •  Overcoming issues relating to long review/

approval cycles.

•  Overcoming the potential conflicting goals between operations and development.

18 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Agile Scaling Frameworks

•  Scaled Agile Framework (SAFe) was developed by Dean Leffingwell as an Agile framework that provides an Agile approach based on team, program, and portfolio levels.

•  Disciplined Agile Delivery Framework (DAD) was developed by Scott Ambler and is more of a lightweight, hybrid project-level framework.

•  Managed Agile Development Framework – The Managed Agile Development Framework, developed by Charles Cobb, is a hybrid project-level framework that was originally designed to apply an Agile development process to a large and complex, fixed-price government contract. It is somewhat “heavier weight” than both the SAFe and DAD frameworks, but it can be scaled down easily if necessary.

19 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

The Dilemma Between Development and Operations

Development  Wants    Rapid  Change  

Measured  by  amount  of  valuable  soKware  delivered  

Opera+ons  Wants    Stability  

Over  80%  of  outages  are  caused  when  making  changes.  

The  Business  Wants  Both  Features  are  needed  for  increased  

revenues  and  growth.  Outages  cost  the  business  significant  dollars  

Is  DevOps  the  Answer?  DEVOPS  DevOps  is  a  culture  that  emphasizes  collabora5on  and  integra5on  between  so8ware  developers,  testers  and  IT  opera5ons  staff  to  improve  reliability  and  security  and  achieve  faster  development  and  deployment  of  so8ware.  

20 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Service  Strategy  and  Design  

21 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Service Strategy and Design

Service  Strategy    and  Design  

Service  Por]olio  Management  

Service  Delivery  Model  

Service    Design  

•  Defines  what  services  are  offered    •  Iden5fies  service  enhancements  (epics)  needed  to  sa5sfy  customer  needs.  

•  Determines  which  services  need  to  be  re5red  or  replaced  to  reduce  cost,  meet  customer  demand,  and  gain  a  compe55ve  advantage.  

•  Defines  how  demand  and  supply  for  a  group  of  services  is  managed?  

•  Services  are  op5mized  for  opera5onal  efficiency  and  to  meet  customer  needs.  

22 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Service Strategy and Design Service Portfolio Management

Strategies   Outcomes  1.  Define  business  services  to  support  strategic  

capabili5es  2.  Define  technical  services  needed  to  support  

business  services  3.  Ra5onalize  the  applica5on  por]olio  to  

reduce  costs,  improve  agility,  and  free  up  funds  to  support  transforma5on.  

4.  Iden5fy  opportuni5es  for  further  savings  by  ra5onalizing  the  service  por]olio  

5.  Implement  lean  budge5ng  and  accoun5ng  prac5ces  

6.  Implement  service  por]olio  management  prac5ces  for  

•  Launching  new  services  •  Re5ring  services  •  Enhancing  services  

7.  Design  and  implement  Con5nual  Service  Improvement  process  to  constant  improve  services  and  service  delivery  

1.  Beker  alignment  between  IT  and  the  Business  through  providing  services  needed  to  supports  strategic  capabili5es  

2.  Significant  cost  reduc5ons  in  terms  of  consolida5ng  service  offerings  and  related  applica5ons  

3.  Beker  business  outcomes  by  focusing  on  services  needed  to  support  business  strategy  

23 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Service Strategy and Design Service Delivery Model

Strategies   Outcomes  1.  Design  efficient  service  delivery  model  using  

lean  value  streams  focusing  on  delivering  a  superior  customer  experience    

2.  Achieve  opera5onal  excellence  through  elimina+on  of  non-­‐value  ac+vi+es  

3.  Build  effec5ve  supplier  management  processes  

4.  Transform  IT  to  become  a  service  broker  

1.  Significantly  shorter  request  to  delivery  cycle  5me.  

2.  Significant  cost  reduc5on  through  lean  service  delivery  model  

3.  More  efficient  sourcing  and  supply  chain  through  enhanced  supplier  management  process  

4.  Greater  customer  sa5sfac5on  and  loyalty  resul5ng  in  higher  renewal  rate  and  more  referrals  

24 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Service Strategy and Design Service Design

Strategies   Outcomes  1.  Document  warranty  for  each  service  using  

service  level  requirements  •  Availability  •  Capacity  •  Security  •  Con5nuity  

2.  Use  Features  to  document  service  u+lity  3.  Iden5fy  and  document  customer  

touchpoints  to  achieve  consistent  customer  experience  

4.  Simplify  services  through  removing  non-­‐value  added  func5onality,  removing  complexity,  and  replacing  costly  components    

5.  Build  flexible  service  components  suppor5ng  analy5cs,  cloud,  and  mobile  technologies  

6.  Use  Enfocus  Solu5ons  so8ware  to  support  Service  Design  ac5vi5es  and  maintain  SDPs.  

1.  Beker  alignment  between  IT  and  the  Business  

2.  Enhanced  infrastructure  elas5city  through  integra5on  of  cloud  and  managed  services  

3.  Beker  customer  experience  though  consistent  management  of  customer  touchpoints  

4.  Greater  customer  loyalty  resul5ng  in  higher  renewal  rate  and  more  referrals  

5.  Provide  features  that  customers  want  6.  Achieve  higher  renewal  and  referral  rates  

25 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

2001   2006   2011   2016  

Infrastructure  Only  

Infrastructure  &  Applica5ons  

Business  Shared    Services  

IT  Process  Op+miza+on  (ITIL)  Standard  opera5onal  processes  (e.g.,  problem  or  incident  management)  to  

ensure  predictable  delivery  

Infrastructure  Services  Hos5ng,  network,  and  storage  become  orderable  services  in  a  service  catalog  

End-­‐to-­‐End  IT  Services  Packages  all  the  technologies,  processes,  and  resources  across  IT  needed  to  deliver  a  specific  business  outcome  while  hiding  technical  complexity  

Business  Shared  Services  Combines  IT  and  non-­‐IT  resources  

required  to  deliver  a  specific  business  outcome  

Evolution of Service Management

Limita+on:    Needs  Strong  CEO  Support  

Limita+on:  Infrastructure  alone  is  unable  to  drive  business  outcomes  or  solve  business  needs  

Limita+on:  Business  does  not  directly  see  the  benefits  

Infrastructure  services  and  end-­‐to-­‐end  IT  services  can  coexist.      

The  move  to  deliver  IT  within  business  services  has  different  origins  and  usually  emerge  outside  IT.      

Source:  CEB  CIO  Execu5ve  Board  

26 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

What is Service Portfolio Management?

•  The main goal of service portfolio management is to manage the right mix of services to:

o  Maximize the realization of value to the business

o  While balancing risks with the costs.

•  Aligns IT to the business through defining the portfolio of services that IT offers and gaining an understanding of how they provide value to the business.

•  Provides a better understanding of customer requirements and delivery costs to continually find ways to reduce delivery costs while improving business outcomes.

27 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Service Portfolio vs. Service Catalog

•  An IT Service Portfolio describes services in terms of business value, specifying what the services are, how they're bundled or packaged and what business benefits they provide. It’s articulated from the customer's perspective and answers the questions: o  "Why should I buy this service?" o  "How much do I need to budget for IT services?" and o  "Why should I buy it from my internal provider rather than

an external service provider (ESP)?”

•  An IT Service Catalog is a service order and demand-channeling mechanism. It takes services that are defined in the service portfolio and describes them as offerings that a customer can buy through an online service catalog.

28 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Start with Service Portfolio Not the Service Catalog

•  According to Gartner, many IT departments developed an IT service catalog composed of technical services such as applications, platforms or servers that are simply a reflection of functional silos within IT and not aligned with business need or outcomes

•  As a result, these IT organizations have continued to be self-focused at the expense of delivering business value.

•  Gartner predicts that IT organizations that developed their IT service catalogs prior to their IT service portfolios will suffer additional costs of overhauling the service catalog once the portfolio is defined.

Source:  Document  the  IT  Service  Por]olio  Before  Crea5ng  the  IT  Service  Catalog,  Gartner,  January,  2009    

29 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Procure  to  Pay  Service  

Order  to  Cash  Service  

Hire  to  Re5re  Service  

Service  PorHolio  Services  Suppor+ng  Business  Capabili+es    

Product  PorHolio  

Accounts  Payable   Purchasing  

Mobile  Purchase  Order  App  

Purchasing  Analy5cs  

Accounts  Receivable  

Customer  Rela5onship  Management  

Order  Management  

Sales  Analy5cs  

Payroll  Human  Capital  

Management  

Learning    Management  

Employee  Web  Portal  

Storage   Servers   Network   Database  Management   Security  

Agile Service Portfolio

Applica+on  So^ware  Services  (Teams)  

Infrastructure    Services  (Teams)    

30 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

What is a Service Delivery Model?

•  A Service Delivery Model defines how Demand and Supply are managed for a group of services.

•  The Service Delivery Model addresses the following Demand functions o  How are services ordered o  How are customer relationships managed o  How are customer needs and expected outcomes identified o  How are service enhanced and new innovations introduced

•  The Service Delivery Model addresses the following Supply functions o  How is the service delivered o  How suppliers are managed o  How service problems and incidents are managed o  How is service performance measured o  How are service enhancements developed and delivered

An  efficient  Service  Delivery  Model  is  key  for  an  agile  enterprise.  

31 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

It  takes  more  than  just  implemen5ng  agile  development  prac5ces  to  make  an  agile  enterprise.  

Service Delivery Model

Business  

Development  Infrastructure  &  Opera+ons  

Customers   Users  

Product  Managers  

Business  Leaders  

Finance  Compliance  

HR  

Team  Team  

Team  

Team  

External    Customers  

Internal    Customers  

Service  Desk  

Security   Opera5ons  

Infrastructure  

DBA  

Releases  

Needs  

Marke5ng  

So8ware  Requests  

Support  

Services  

Support  

32 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

How Waste and Blockages Occurs

Business  

Development  Infrastructure  &  Opera+ons  

Customers   Users  

Product  Managers  

Business  Leaders  

Finance  Compliance  

HR  

Team  Team  

Team  

Team  

External    Customers  

Internal    Customers  

Service  Desk  

Security   Opera5ons  

Infrastructure  

DBA  

Releases  

Needs  

Marke5ng  

So8ware  Requests  

Support  

Services  

Support  

Not  Using  MMFs  

Not  Involved  

Not  Priori5zing  Features  

Not  Doing  Incremental  Development  

Tes5ng  Involved  a8er  Development  

Not  Involved  Upfront  

Rigid  Release  &  Deployment  

Don’t  Understand  Big  Picture  

Needs  Not  Validated  

Slow  Adop5on  

Slow  Approvals  

33 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Corporate IT as Service Broker

•  For many organizations, IT is evolving from developing custom applications to being a broker of third-party applications and technologies provided through the cloud.

•  Enterprises are transitioning from operating their own infrastructure and applications to a mix of cloud services and on-premise applications.

•  The Cloud is helping IT organizations transform from being a bottleneck to facilitating corporate agility.

•  A well designed service delivery model helps facilitate this transformation in IT.

34 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Stakeholder  Maps   Service  Safaris  

Shadowing   Personas  

Story  Telling  

Service  Blueprints  

Drama  Coaching  

Customer    Lifecycle  Maps  

Business  Model  Canvas  

Idea  Genera5on   What  If…   Design  Scenarios  

Storyboards  

Customer  Journey  Maps  

Contextual  Interviews  

The  Five  Whys  

Cultural  Probes  

Mobile  Ethnography  

Day  in  The  Life  

Expecta5on  Maps  

Desktop  Walkthroughs  

Service  Prototypes  

Service  Staging  

Agile  Development  

Co-­‐Crea5on  

Service Design Thinking Techniques

35 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Touchpoints  Encounters  where  the  organiza5on  and  its  customers  engage  to  exchange  informa5on,  provide  services,  or  process  transac5ons.  

Digital  Touchpoints  Touchpoints  where  the  encounter  occurs  

through  means  of  electronic  devices,  media  or  content,  such  as  a  mobile  phones,  web  

sites  or  social  media.  

Touchpoints

36 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Customer  Needs  Valida+on  

37 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Customer Needs Validation

Customer  Needs  

Valida5on  

Customer  Discovery  

Customer  Valida5on  

•  Define  Minimum  Viable  Products  (MVP)  to  test  assump5ons  

•  Validate  learning  through  conduc5ng  various  experiments?  

•  Start  with  hypothesis  and  assump5ons  •  Document  who  the  customers  and  users  are  using  personas  

•  Document  user  ac5vi5es  using  scenarios  

Customer  Experience  

•  Understand  customer  experience  by  defining  touchpoints  and  customer  journeys  

•  Op5mize  overall  customer  experience  across  func5onal  delivery  teams  

38 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Customer Needs Validation Customer Discovery

Strategies   Outcomes  1.  Ensure  you  are  building  something  the  

customer  wants  using  Lean  Startup  concepts  a.  State  hypothesis  b.  Test  problem  hypothesis  c.  Test  product  concept  d.  Inspect  and  Adapt  

2.  Define  Epics  and  Features  star5ng  with  hypothesis  and  assump5ons.  

•  Customer  –  Who  is  using  the  product  •  Problem  –  What  problem  do  they  have  •  Solu+on  –  How  will  you  solve  the  problem  

3.  Develop  techniques  for  customer  discovery  interviews  

4.  Gain  beker  understanding  of  customer  problems  through  using  personas,  scenarios,  needs,  and  use  cases.  

5.  Iden5fy  and  evaluate  poten5al  solu5on  op5ons  using  MVPs  

6.  Ensure  problem/solu+on  fit  

1.  Save  Time  and  Money  by  discovering  early  on  if  something  won’t  work.    

2.  Make  course  adjustments  before  you  build  a  large  product  

3.  Reduce  development  costs  (Every  hour  spent  on  customer  development  saves  5  hours  or  more  of  code  and  test.)      

4.  Lower  development  and  opera5onal  cost  by  not  building  features  that  will  not  be  used.  

5.  Avoid  costly  mistakes  by  not  building  products  customers  do  not  want  

6.  Increased  transparency  and  visibility  into  customers  and  their  needs  

7.  Increase  innova5on  through  experimenta5on  

8.  Gain  a  compe55ve  advantage  through  developing  products  customers  want  

39 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Customer Needs Validation Customer Validation

Strategies   Outcomes  1.  Validate  hypothesis  and  assump+ons  

using  MVPs  with  itera5ve  cycle.    •  Get  Ready  to  Sell  (Implement)  •  Sell  to  visionary  customers  •  Develop  posi5oning  •  Inspect  and  Adapt  

2.  Build  effec5ve  procedures  for  Inspect  and  Adapt.  

3.  Ensure  product/market  fit  before  building  the  product  

4.  Involve  Customers  in  valida+on  process  using  Lean  Startup  techniques  

5.  Pivot  when  hypothesis  or  assump5ons  are  proved  wrong  

1.  Lower  development  and  opera5onal  cost  by  not  building  features  that  will  not  be  used.  

2.  Reduce  developer  frustra5on  and  costs  by  valida5ng  need  before  building  solu5on  

3.  Gain  a  compe55ve  advantage  by  being  able  to  deliver  products  that  customers  want.  

40 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Customer Needs Validation Customer Experience

Strategies   Outcomes  1.  Provide  product  management  teams  

training  on  customer  experience  2.  Document  touchpoints  and  create  

customer  journey  maps  3.  Create  low  fidelity  prototypes  where  

needed  4.  Incorporate  service  design  thinking  

techniques  in  design  of  services  and  products  

1.  Lower  development  and  opera5onal  cost  by  not  building  features  that  will  not  be  used.  

2.  Achieve  business  value  more  rapidly  though  faster  and  wider  user  adop5on  

3.  Reduce  developer  costs  and  frustra5on  through  beker  understanding  of  need  

4.  Significantly  improve  customer  loyalty  through  enhanced  customer  experience  

5.  Gain  a  compe55ve  advantage  by  being  able  to  deliver  products  that  customers  want.  

41 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Source: Jim Johnson, Chairman of Standish Group, quoted in 2006 in: http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS

The  Problem:    64%  of  Func+onality  is  Rarely  or  Never  Used  

The  Cause:    Poor  Discovery  and  Valida+on  The  Result:    Higher  Costs,  Lower  Value,  Longer  Cycle  Times  

42 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

What is Customer Development?

Customer  Development  is  a  four-­‐step  framework  developed  by  Steve  Blank  to  discover  and  validate  that  you  have  iden5fied  the  market  for  your  product,  built  the  right  product  features  that  solve  customers’  needs,  tested  the  correct  methods  for  acquiring  and  conver5ng  customers,  and  deployed  the  right  resources  to  scale  the  business.    

43 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Business  Change  Management  

44 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Business Change Management

Business  Change  

Management  

Collabora5ve  Business  

Architecture  

Impact  Analysis  

•  Assess  impacts,  gaps,  and  risk  for  every  Epic  

•  Manage  necessary  business  changes  for  every  Feature  

•  Document  what  is  required  to  run  the  business  including  capabili5es,  processes,  people,  services,  data,  and  rules  

•  Use  knowledge  management  prac5ces  to  manage  architecture  

Lean  Change  Management  

•  Use  Change  Canvas  to  document  hypothesis  and  assump5ons  

•  Approach  change  in  small  steps  by  defining  MVCs  

•  Validate  learning  using    validated  change  cycle  

•  Transparency  and  visibility  are  essen5al  

45 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Business Change Management Collaborative Business Architecture

Strategies   Outcomes  1.  Develop  and  implement  Collabora+ve  

Business  Architecture  for:  •  Business  Processes  •  Enterprise  Data  •  Stakeholders  •  Business  Rules  •  Services  

2.  Maintain  catalog  of    customer  and  user  personas  to  use  in  Service  Design  and  development  of  user  stories  

3.  Determine  accountability  for  maintaining  and  suppor5ng  knowledge  

4.  Define  governance  structure  to  maintain  architecture  

5.  Increase  transparency  and  visibility  6.  Incorporate  maintenance  and  use  of  

the  CBA  into  the  flow  of  work  

1.  Enable  business  changes  more  rapidly  by  having  the  informa5on  available  to  make  decisions  and  understand  how  things  work  

2.  Delivers  transparency  and  clarity  to  enable  stakeholder  collabora5on,  issue  analysis,  and  problem  resolu5on  

3.  Establish  a  common  vocabulary  across  teams  by  providing  knowledge  of  how  the  business  operates  

4.  Provides  mechanism  to  align  so8ware  changes  with  business  process  changes  

5.  Helps  ensure  so8ware  supports  op5mized  lean  business  processes  instead  of  “just  repaving  the  cow  path”  

46 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Business Change Management Impact Analysis

Strategies   Outcomes  Epics  1.  Assess  gaps,  risks,  and  impacts  for  

architecture  and  business  epics  2.  Visualize  impacts  at  por]olio  and  program  

level  3.  Implement  agile  methods  to  manage  

impacts  and  risks  4.  Create  Epics  for  organiza5onal  change  or  

transforma5on  ini5a5ves  

Features  1.  Nego5ate  changes  to  resolve  gaps  and  risks  2.  Develop  effec5ve  methods  to  improve  

transparency  and  increase  stakeholder  engagement  

3.  Create  features  to  document  hypotheses  and  assump5ons  for  change  experiments  

1.  Addresses  complex  regulatory  and  compliance  issues  in  agile  environment  

2.  Avoid  surprises  and  reduce  risk  3.  Respond  to  threats  and  opportuni5es  more  

quickly  and  effec5vely  

47 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Business Change Management Lean Change Management

Strategies   Outcomes  1.  Transi5on  from  tradi5onal  

organiza5onal  change  methods  to  Lean  Change  Management  Methods  using  •  Change  Canvas  •  Change  Experiments  •  Agile  methods  (Kanban)  •  Validated  Learning  

2.  Develop  effec5ve  methods  to  nego5ate  Changes  with  stakeholders  and  improve  stakeholder  engagement  

3.  Increase  transparency  and  visibility  

1.  Align  so8ware  changes  with  needed  business  changes  

2.  Achieve  faster  and  wider  user  adop5on  3.  Enable  business  changes  more  rapidly  4.  Helps  ensure  so8ware  supports  

op5mized  lean  business  processes  instead  of  “just  repaving  the  cow  path”  

48 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

•  Gain  insight  into  Impacts,  Gaps,  and  Risks    

•  Visualize  work  at  the  Por]olio,  Program  and  Team  Level  

•  Make  everything  visible  between  team  and  among  teams  

•  Enables  Coordina+on  of    agile  business  ac5vi5es  with  development  team  ac5vi5es  

•  Maintain  collabora+ve  business  architecture  so  that  agile  teams  understand  and  support  the  big  picture  

•  Understand  business  outcomes  for  every  Epic,  Feature,  and  Story  

Transparency and Visibility

49 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Process  Owner  

Release  Manager  

Technical  SMEs  

Quality  Assurance  

Business  SMEs  

Service    Owner  

Collaborative Business Architecture

Developer   Business    Analyst  

50 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Risk Management The Issue For most organizations, there tends to be a poor understanding of the risk that IT has on the business.

•  Business leaders fail to realize the significant business impact IT risks can have because they do not understand the technology.

•  IT may not have a full understanding of how the business relies on the technology.

•  Failing to address this gap places an organization in jeopardy. •  The speed of agile only exacerbates this situation.

The Answer IT must partner with the business to ensure mutual understanding of the business impact of IT risks. When this occurs, technology risks can be addressed and managed in conjunction with business change. This can be achieved through:

•  Developing a Collaborative Business Architecture to provide visibility of the relationships between IT services and the business.

•  Identifying Impacts where IT and the business can collaborate to identify risks minimizing the effect on cycle time.

•  Assigning accountability to IT or business staff to monitor and mitigate each identified risk?

•  Providing visibility of the impacts and associated risk to agile IT and business teams

51 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

So8ware  

Por]olio  

Program  

Team

 

Epics  

Epics  

Feature  

Feature  

Feature  

Story  

Story  

Story  

Story  

Story  

So^ware  Delivery  

Value  Discovery  

Investment  Funding  

e  

People   Process   Technology   Data   Rules  

Impact  

Business  Change  

Impact  

Impact  Impact  Impact  

Impact  

Impact  

Impact  

Impact   Impact  

Impact  

Change  

Change  

Change  

Change  

Change  Change  

Change  

Change   Change  

Change  Change  

Nego+ated  Changes  

Impacts,  Gaps,    and  Risks  

Task  

Task  

Task  

Task  

Task  

Task  

Task  

Understand Impacts of Change

52 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

The Lean Change Method

Core Concepts •  Co- Creation and Collaboration •  Negotiated Change •  Validated Learning •  Use Kanban to Manage Changes •  Change Canvas •  Minimum Viable Changes (MVC) •  Validated Change Cycle •  Change Pivots •  Capability and Performance Metrics •  Cadence •  Modular Components usable in isolation

53 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

Enfocus Solutions Software and Services for Business Agility

•  We provide services and software to help companies achieve Business Agility. •  Strategy Services - We can help you define a comprehensive strategy and approach

for business agility that will work for your organization. •  Implementation Services - In addition, we can help you with many of the

implementation tasks along the way such as: o  Rationalizing your Application Portfolio o  Defining your Service Portfolio o  Implementing Service Design Processes o  Implementing Customer Development Practices o  Scaling Agile to the Enterprise o  Addressing complex risks and compliance issues o  Designing and testing lean business change management experiments o  Developing and implementing a Collaborative Business Architecture o  Retooling your business analysts, and project and program managers to transition to agile

•  Software – designed to fully support enterprise business agility. Component of implementation services offering to accelerate delivery of desired business outcomes.

54 © Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.

The  End  

top related