tsia services engineering community january 28, 2010 agenda introduction & welcome (shawn...
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TSIA Services Engineering CommunityJanuary 28, 2010
AGENDA • Introduction & Welcome (Shawn Santos)
• 2010: Kickoff – Drive the Decade (Rich Hogan)
• A Services Engineering Journey: ILOG (Jean Pommier)
• Upcoming Events•TSW 2010 Silicon Valley
• Wrap Up
© 2010, TSIA Services Engineering Community
TSIA Services Engineering CommunityIntroduction (Shawn Santos)
WELCOME!
• Shawn Santos is our new TPSA Community facilitator
• Community open to broader audience
• Tech Services Forum & Document Management
© 2010, TSIA Services Engineering Community
Mission: 2010 & BeyondMission & Purpose of PS in a Product Organization
• PS accelerates and deepens adoption of new company products into target industries
• PS enables customer referencability
• PS owns the development of service methodologies for product deployment
• PS owns the enablement of partners to deliver these service methodologies
CHALLENGE: What are the metrics? How are they generated?Is there confidence in their integrity? How are they used by the
business? © 2010, TSIA Services Engineering Community
Mission: 2010 & BeyondIndustry Standard Metrics: Key Performance Indicators
Financial Metrics
Source : Rich HoganGeneric for discussion and reference purposes only
© 2010, TSIA Services Engineering Community
Where we left off in 2009…Two Types of Professional Services
• Defined ServicesTypically have a SKU or Standard SOW language, may be sold from a pricelist through a channel of
distributors and re-sellers
• Rate Card TimeServices are sold on an ad-hoc time and materials basis with no respect to market value of the delivery output
© 2010, TSIA Services Engineering Community
Assertion
There are only two types of services from a business and financial perspective for most TPSO’s:
Services Engineering @ ILOG
A positive experience, and a long journey…
January 28, 2010Jean Pommier
Program Director, Service EngineeringIBM, SWG, [email protected]
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Service Engineering @ ILOG
A positive experience, and a long journey…
January 28, 2010
Jean Pommier
Program Director, Service Engineering
IBM, SWG, WebSphere
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Disclaimers
The statements made in this presentation reflect the personal opinions of the author. They are not made in any official capacity, and do not represent the opinions of the author's employer.
Most of the experience predates the ILOG acquisition by IBM
Engineering means different things to different people. Service and services mean different things to different people. Therefore Service Engineering means very different things to different people…
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Background & business drivers
From software components to enterprise software (business rules, mathematical optimization, supply chain management, visualization)
From proprietary programming language (Le-Lisp) to open platforms
From ISVs to end-users
From product extender to (point) solution provider
From IT to IT & LOB
From developers to business users
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Service Engineering: Pushing the Envelope
ENGAGEMENTSIZE
BUSINESSFIT 100%
ProfessionalServices
(e.g. ISSx)
SystemIntegrators
(e.g. GBS, Wipro)
$50-100K $600-800K
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Strategy: learning to be a mini-SI
Create a portal gathering Best practices (MS Office docs)
Implementation process (ILOG Solution Implementation Standard)
Service offering
Identify roles and enable/mentor staff
Derive a marketing offering and enable the sellers
Set-up a collaborative platform (software engineering and development, documentation and knowledge asset management)
Apply the process diligently
IBM Software Group
IBM Confidential
© IBM, 1987-2010
InnovationRepeatability, Maturity
Managing Intellectual Assets
July 05, 2006 12ILOG, internal usage
Tacit Information
ExplicitAsset
CertifiedAsset
CompanyBest
Practice•Blogs•Emails•Coffee breaks•Chat Rooms•News Groups •Wikis
•Project documents
HORUS ISIS
From: TPSA Intellectual Asset Management taskforce
SharePointFile systems
IBM Software Group
IBM Confidential
© IBM, 1987-2010
DeliverySales & Marketing
Process
(Method)
Focused
Practices
Best
Practices
Service
Offerings
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Platform
Eclipse option (free!) OpenUP (Open Unified Process)
EPFC (Eclipse Process Framework Composer)
Rational option RUP (Rational Unified Process)
RMC (Rational Method Composer)
IBM Software Group
IBM Confidential
© IBM, 1987-2010
End-to-end implementation offering
ApplicationAssessment
Iteration One
Health CheckProgram
ApplicationMaintenance
UpgradeAssessment
Center of ExcellenceBoot Camp
GovernanceWorkshop
ArchitectureWorkshop
ModelingWorkshop
Iterations
Extensions
Right start
Implementation servicesMentorin
g
Oversight
Follow-up
ImpactAssessment
DiscoveryWorkshop
Quick WinPilot
IBM Software Group
IBM Confidential
© IBM, 1987-2010
4 use cases
1. Role-based navigation
2. Looking for a particular artifact
3. Offering-oriented navigation
4. Executing an implementation discipline
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Benefits: real but hard to track/measure
Industry leadership (analysts, prospects, candidates)
Smooth and fast integration
Business improvement through service engineering More selling to LOBs
Larger engagements (more reference ability, more revenue, higher utilization)
More client success
Streamlined service sales
More accounts buying our services, higher clothing rate (% new accounts, % license revenue)
More reusable and reused Intellectual Capital
Broader use of ISIS
Smoother delivery, fewer escalations/critsits
Higher or predictable Gross Profit (engagement, IMT, practice, product)
IBM Software Group
IBM Confidential
© IBM, 1987-2010
The Complete TPS Value Network
04/20/23 © ILOG, All rights reserved 22
CustomerPS
Product
Partner
EmployeesSupportServices
Service
Service Revenues
ProductMargin
CustomerLoyalty
Feature/ReleaseAdoption Rate
ReferenceRate
MaintenanceRenewal
Training Costs
ProductSales
SupportOffset
ProductDev.
Offset
ProductReqs
Sales
ProductSale
HitRatio
Marketing
CustomerReqsCustomer
Reqs
New ClientRatio
RenewalRate
PartnersCertified
Sales CostOffset
AccountExpans
EmployeesCertified
Time toProductivity
RetentionRate
Utilization
CorporateFinance
PSOperating
Profit
PSMargin
From Thomas Lah, TPSA
?
?
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Open questions…
How much do we share with partners?
How do we track artifact usage?
Solution & delivery software assets Life cycle?
Pricing?
Packaging?
Maintenance?
Migration into product?
“Engineered enough” trade-off
Engagement asset management policy
Metrics automation
How healthy is billability of SE staff? How much?
How are we doing (performance)? How mature are we?
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Thomas Lah’s views (2005)
In the future, profitable professional service firms must excel at two dimensions:1. The ability to articulate the business value of the service delivered.2. The ability to minimize the cost and risk of service delivery.[…]One metric that is conspicuously missing in Table 2 is billable utilization. Setting a utilization target for Services Engineering staff is usually a by product of having no other clear metrics to defend the value of the function. When all else fails, show management how much revenue you generated! If Services Engineering is given a billable utilization target, the function has a tendency to become a glorified global delivery organization. When this occurs, the leverage the function was designed to create never materializes. Solution knowledge becomes lost or poorly managed.
Services Engineering, part 2 of 2, QuickArrow white paper
IBM Software Group
IBM Confidential
© IBM, 1987-2010
And what about you?
Will you relate your experience in one of our upcoming CoI calls?
Will you share your best practices and open questions on the CoI Forum? http://techservicesforum.com/group/tp
sa_se
Will you join SRII’s Service Engineering SIG?
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Backup slides
IBM Software Group
IBM Confidential
© IBM, 1987-2010
Infrastructure needs
Software Engineering Source code control, continuous build
Account Management Project artifact repository (project management, IC harvesting, metrics)
Dashboard
Reference database Account x Project x Products x Features x Application Type x Engagement
Type x Status
IBM Software Group
IBM Confidential
© IBM, 1987-2010
KM Asset Development Life Cycle
IBM Software Group
IBM Confidential
© IBM, 1987-2010
ISIS
Access: private (ILOG consultants & contractors)Scope: private BRMS, Optimization, vertical and Project Management best practicesLocation: isis.ilog.com
ISIS, ABRD and PS Packages
ABRD_ILOG
Access: ILOG customer (free)Scope: ABRD extensions specific to ILOG BRMS platformsLocation: BRMS Resource Center
PS PackagesPS Packages
ABRD
Access: public domainScope: generic BRMS methodology and best practicesLocation: Eclipse website
IBM Software Group
IBM Confidential
© IBM, 1987-201004/20/23 © ILOG, All rights reserved 30
Monetizing Service Engineering (staff)
Hot
line
Trai
ning
Expe
rtise
Coac
hing
Asses
smen
t
Audit
ISC*
(*) Internal Steering Committee
Airbus
OSAP
ALS DaimlerChrysler
Allianz
Formalism,Governance
Operational value
isis-helpdesk
Custom.seminars
QA S
uppo
rt
DTC
Steeringcommittees
Certifi
cation
JRules
ISIS
Met
hodo
logy
Artifacts
A range of billable activities/services:
IBM Software Group
IBM Confidential
© IBM, 1987-2010
1-slide-fits-all Cheat sheet deck
Success story deck Blue washed ISIS
4-page data sheet
developerWorks
Upcoming Events / Housekeeping
© 2010, TSIA Services Engineering Community
INVITE YOUR INDUSTRY PEERS!
• TSW Silicon Valley 2010
• Scheduling Cadence for online meetings
• Tech Services Forum & Document Management
Wrap-Up
© 2010, TSIA Services Engineering Community
THANK [email protected]
[email protected]@us.ibm.com