IBM Software Group

®

Systems and Software TrendsCritical Success Factors in Process

Walker RoyceIBM Software Group

IBM Software Group | Rational software

Geographic distribution of business - The new norm Work aligned to markets and customers

Evolution of right-sourcing

Leveraging distributed development

Open architecture

Open standards

Opensource

Open computing

Open architecture

Open standards

Opensource

Open computing

Modular systems - Greater flexibility Maximize investments: Reuse components Increase flexibility: Interoperable systems Accelerate initiatives: Scalable and agile

Accommodating compliance - The new necessity Management reporting, audit support

• Sarbanes Oxley, HIPAA, 21CFR11, Basel II, EASHW

IT, systems, project and product level accountability• ITIL, COBIT, COSO, ISO 900x, Six Sigma

Development compliance level• Change management of assets, traceability

• CMM/CMMII, RUP, DODAF

Open computing - A new route to collaboration and innovation

What we see …

IBM Software Group | Rational software

PROJECT DRIVEN BUSINESS DRIVENTRADITIONAL CURRENT REALITY

Co-located teams

Technology led

Vendor lock-in

Application silos

Geographically distributed

Compliance

Open computing

Modular systems (SOA)

Right-sourcing

Standards

BUSINESS TRENDS

Business Driven Development

Enabling organizations to govern the business process of software and systems development

Evolving software and systems delivery

IBM Software Group | Rational software

System Cost/Time Estimation

IBM Software Group | Rational software

Business Driven Development

Increased revenues Better quality Differentiated products, systems

or services Earlier time to market

BetterBusiness

=Revenue

CostGrowth*

Reduced costs through SOA, GDD, Automation Better software economics Smaller development teams Faster development cycles Rightsized processes and skills Effective architectures and reuse

Improved Reputation Better Governance Attractiveness to customers

UL stamp Attractiveness to workforce

“Best company award”

SOx, CMMI, ISO 9000, HIPPA, CFR11

Openness, Standards Track record of performance

IBM Software Group | Rational software

Software Governance

ProprietaryNot Integrated

100% Custom

Ad-hoc

Mix of Proprietaryand CommercialNot Integrated

30% Reused Assets70% Custom

Repeatable

CommercialIntegrated

Processes-Tools

Managed andMeasured

Tools

Complexity

Process

1960s-1980s 1990s-2000s 2005+

Project Performance

Predictable Unpredictable Predictable

70% Reused Assets30% Custom

over budget,over schedule

Infrequentlyon budget,

on schedule

Frequently on budget,

on schedule

CollocatedOJT

CollocatedSoftware Skills

DistributedSystems/Software

ProfessionalsTeam

10% 25%-33% 50% +Success Rate

IBM Software Group | Rational software

Development Governance

Definition Application of governance to

Development organization

Development programs Context

May be part of IT Governance

May be part or whole of product development

May be service

Governed Processes Program

High Variance

• Analysis• Design• Development planning

Medium Variance

• Implementation• Iteration planning• Version control• Build/Integration/test

Low Variance

• Maintenance/Test• UCM• Product Data Management

Organization Portfolio Management

• Qualitative Estimation

Service delivery

Asset management

IBM Software Group | Rational software

Four Patterns of Success Scope management Asset based development

Solutions need to evolve from user specifications AND user specifications need to evolve from candidate solutions.

• As opposed to getting all the requirements right up front. Process management Rightsize the process

Process and instrumentation rigor evolves from light to heavy.

• As opposed to the entire project’s lifecycle process should be light or heavy depending on the character of the project.

Progress management Honest assessmentsHealthy projects display a sequence of progressions and digressions.

• As opposed to healthy projects progress to 100% earned value with a monotonically increasing and predictable plan.

Quality management Incremental demonstrable resultsTesting needs to be a 1st class, full lifecycle activity.

• As opposed to a subordinate, later lifecycle activity.