Systems and Software Trends Critical Success Factors in Process Walker Royce IBM Software Group

1. Systems and Software TrendsCritical Success Factors in ProcessWalker RoyceIBM Software Group

2. What we see … Geographic distribution of business - The new norm • Work aligned to markets and customers • Evolution of right-sourcing • Leveraging distributed development 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 Modular systems - Greater flexibility • Maximize investments: Reuse components • Increase flexibility: Interoperable systems • Accelerate initiatives: Scalable and agile

3. PROJECTDRIVEN TRADITIONAL CURRENT REALITY BUSINESS DRIVEN Business Driven DevelopmentEnabling organizations to govern the business process of software and systems development Evolving software and systems delivery BUSINESS TRENDS Co-located teams Technology led Vendor lock-in Application silos Geographically distributed Compliance Open computing Modular systems (SOA) Right-sourcing Standards

4. System Cost/Time Estimation

5. Increased revenues • Better quality • Differentiated products, systemsor services • Earlier time to market Reduced costs through SOA, GDD, Automation • Better software economics • Smaller development teams • Faster development cycles • Rightsized processes and skills • Effective architectures and reuse Revenue Cost Better Business Growth = * 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 Business Driven Development

6. Software Governance 1960s-1980s 1990s-2000s 2005+ 70% Reused Assets 30% Custom 30% Reused Assets 70% Custom Complexity 100% Custom Managed and Measured Process Ad-hoc Repeatable Distributed Systems/Software Professionals Collocated OJT Collocated Software Skills Team Mix of Proprietary and Commercial Not Integrated Commercial Integrated Processes-Tools Proprietary Not Integrated Tools Predictable Unpredictable Predictable Project Performance Frequently on budget, on schedule Infrequently on budget, on schedule over budget, over schedule Success Rate 10% 25%-33% 50% +

7. 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 Development Governance

8. 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 assessments • Healthy 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 results • Testing needs to be a 1st class, full lifecycle activity. • As opposed to a subordinate, later lifecycle activity.