Download - The Path to Business Agility
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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 • [email protected]
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
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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.
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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
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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.
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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
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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
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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
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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
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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
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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
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Enterprise Agile Delivery
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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
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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
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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
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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
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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
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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.
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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.
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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
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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.
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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
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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
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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
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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
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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.
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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.
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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
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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)
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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.
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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
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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.
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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
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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
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Customer Needs Valida+on
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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
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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
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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
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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”
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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
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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”
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• 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
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Process Owner
Release Manager
Technical SMEs
Quality Assurance
Business SMEs
Service Owner
Collaborative Business Architecture
Developer Business Analyst
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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
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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
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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
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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.
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The End