CMMI for Services - Insights and Beyond

CMMI® for Services (SVC) Insights & Beyond HMBP Colloquium 21 May 2010 © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 1

Agenda Overview of the CMMI®-SVC Discussion of New PAs (Over CMMI®-DEV) Applicability © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 2

Typical Challenges in Service Industry Meeting SLAs & Continuous Process Improvement Delivering consistent service quality Managing service continuity Managing high rate of changes/ time to market Adequate understanding of Service components & role in delivery Remain Competitive and maintain low cost Increase Service Quality Attaining centralized Model across the Organization for all the services provided © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 3

What is CMMI-SVC An extension of the CMMI model CMMI®-SVC is a compendium of best practices which enables service focused organizations to effectively : Design the service Deploy and deliver the service Manage the service Has Synergies with other models like CMMI®-DEV, ITIL, ISO 20000, CobiT and ITSCM. © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 4

What is a Service as per CMMI®-SVC Services are useful intangible and non-storable results delivered through the operation of a service system. The process used in delivering the service typically has a immediate impact on the service Services are typically short cycle and repetitive in nature © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 5

Where does CMMI®-SVC apply KPO Health Care IT Infrastructure Telecom Management Hospitality Retail Training Logistics BPO Consulting Travel Government Services People Outsourcing Software (Part Lifecycle) Banking Utilities and more… Every service provider organization using the CMMI®-SVC model must have at a Every service provider organization using the CMMI®-SVC model must have at a minimum both people and process resources minimum both people and process resources © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 6

CMMI Constellations © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 7

CMMI-SVC Maturity Level Focus on process improvement Optimizing 5 Processes measured and controlled Quantitatively Managed 4 Processes characterized for organization and is often proactive Defined 3 Projects level foundation for an organization to become an effective service provider Managed 2 Processes unpredictable, poorly controlled and reactive 1 Initial © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 8

CMMI®-SVC Process Areas 5 Organizational Innovation & Deployment Causal Analysis & Resolution 5 4 Quantitative Project Management Organizational Process Performance 4 Incident Resolution and Prevention Capacity and Availability Management Organizational Training 3 Service System Development Service System Transition Integrated Project Management Organizational Process Definition Decision Analysis & Resolution 3 Risk Management Organizational Process Focus Strategic Service Management Service Continuity Project Monitoring and Control Configuration Management 2 Service Delivery Project Planning Requirements Management Process & Product QA 2 Measurement & Analysis Supplier Agreement Management Service Establishment Project Management Process Management Support & Delivery © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 9

Understanding Service Specific PAs Capacity & Incident Availability Resolution & Management Prevention 16 Core Process Areas Service & 1 Shared PA Delivery Service Continuity (SAM) PA Addition Service System Service Transition System Development Strategic Service Management Source: SEI © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 10

Strategic Service Management (STSM) Capacity & Incident Availabil Resoluti ity on & Manage Preventi ment on 16 Core Process Areas Service deciding what services you should &1 Delivery Service Shared Continui PA ty (SAM) PA Addition Service be providing, making them standard, and System Transiti Service on System Develop ment letting people know Strategi c Service Manage ment Source: SEI about them © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 11

Strategic Service Management (STSM) Capacity & Incident Availabil Resoluti ity on & Manage ment Preventi on deciding what services you should be providing, making them standard, and letting 16 Core people know about them Process Areas Service &1 Delivery Service Shared Continui PA ty (SAM) PA Addition Service What kind of taxi service? System Transiti Service on System •Pick up and drop? Or Time and distance hiring? Develop ment Strategi •Only within city limits? c Service Manage •Primarily for the airport? ment •Luxury / semi-luxury / economy? Source: SEI •Shared or single person hiring? •Radio call? Hail from the street? •Lots of luggage space? More leg room? © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 12

Service System Development (SSD) Capacity & Incident Availabil Resoluti ity on & Manage Preventi ment on 16 Core Process Areas making sure you have Service &1 Delivery Service Shared Continui PA ty (SAM) PA Addition everything you need to deliver the service, Service System Transiti Service on System Develop including people, ment Strategi c Service Manage ment Source: SEI processes, consumables, and equipment © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 13

Service System Development (SSD) Capacity & Incident Availabil Resoluti ity on & Manage Preventi ment on 16 Core making sure you have everything you Process Areas need to deliver the service, including &1 Service Delivery people, processes, consumables, and Service Continui Shared PA equipment ty (SAM) Design, Develop and Test the Service PA Addition Service System •Process and system Transiti Service on System Develop ment Strategi •Taxis c Service Manage •Meters ment Source: SEI •Drivers •Call numbers •Call centre •Service Centers •Waiting/ parking lots •Driver contracts •Pricing •Billing process •Fuel refill system © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 14

Service System Transition (SST) Capacity & Incident Availabil Resoluti ity on & Manage Preventi ment on 16 Core Process Areas Service &1 Delivery Service Shared getting new systems in Continui PA ty (SAM) PA Addition Service Service System Transiti place, changing existing systems, retiring obsolete on System Develop ment Strategi c systems, all while making Service Manage ment Source: SEI sure nothing goes terribly wrong with service © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 15

Service System Transition (SST) Capacity & Incident Availabil Resoluti ity on & Manage Preventi ment on getting new systems in 16 Core place, changing existing Process Areas Service systems, retiring obsolete Service &1 Shared Delivery systems, all while making Continui ty PA (SAM) sure nothing goes terribly wrong with service PA Addition Service System Transiti Service on System Develop ment Strategi c Service Install and implement the service Manage ment •Put the designed service in action Source: SEI •Carry out trials •Smooth out initial glitches •Make the service fully operational © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 16

Service Delivery (SD) Capacity & Incident Availabil Resoluti ity on & Manage Preventi ment on 16 Core Process Areas Service &1 Delivery Service Shared Continui PA ty (SAM) PA Addition Service Service System Transiti setting up agreements, taking care of service on System Develop ment Strategi c requests, and operating Service Manage ment Source: SEI the service system © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 17

Service Delivery (SD) Capacity & Incident Availabil Resoluti ity on & Manage Preventi ment on 16 Core Process setting up agreements, taking Areas &1 Service Delivery care of service requests, and Service Continui ty Shared PA (SAM) operating the service system PA Addition Service Set up agreements with airport, System Transiti Service on System traffic police, service centers, Develop ment Strategi consumer forums, website c Service Manage ment Set up mechanisms to communicate Source: SEI expected service level with users Take bookings, cancellations, changes, complaints, Track the service at detailed and macro level © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 18

Capability & Availability Management (CAM) Capacity & Incident Availabil Resoluti ity on & Manage Preventi ment on 16 Core Process Areas Service &1 Delivery Service Shared Continui PA ty (SAM) PA Addition Service System making sure you have the resources you need to deliver Transiti Service on System Develop ment Strategi c Service Manage services and that they are ment available when needed—at an appropriate cost Source: SEI © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 19

Capability & Availability Management (CAM) Capacity & Incident Availabil Resoluti ity on & Manage Preventi ment on making sure you have the 16 Core resources you need to Process Areas deliver services and that &1 Shared Service Delivery they are available when Service Continui ty PA (SAM) needed—at an appropriate cost PA Addition Service Do demand- supply management of drivers, taxis, System Transiti Service on System call center resources – at multiple planning Develop ment Strategi horizons: c Service Manage ment •Long term – six months/ one year Source: SEI •Medium term – month/ week •Short term – daily/ every hour © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 20

Incident Resolution & Prevention (IRP) Capacity & Availability Incident Manageme Resolution nt & Prevention 16 Core Process Service Areas Delivery & 1 Shared Service PA (SAM) Continuity PA Addition Service System handling what goes wrong— and preventing it from going Service Transition System Developme nt wrong in the first place if you Strategic Service Manageme nt Source: SEI can © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 21

Incident Resolution & Prevention (IRP) Capacity & Availability Incident Manageme Resolution nt & Prevention 16 Core Process handling what goes wrong—and Areas & 1 Shared Service Delivery preventing it from going wrong in the Service Continuity PA (SAM) first place if you can PA Addition Service System Service Transition System Developme nt Strategic Service Manageme nt Source: SEI Handle complaints from customers, drivers Handle incidents of accidents, breakdowns, fuel outage, driver illnesses, traffic violations, incidents at the airports, non-payments, theft, etc Do RCA and put preventive action in place © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 22

Service Continuity Management (SCON) Capacity & Incident Availabilit Resolutio y n& Managem Preventio ent n 16 Core Process Areas Service &1 Delivery Service Shared Continuity PA (SAM) being ready to recover from a PA Addition Service System disaster and get back to delivering Service System Developm ent Transition your service Strategic Service Managem ent Source: SEI © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 23

Service Continuity Management (SCON) Capacity & Availabilit Incident Resolutio being ready to recover from a y Managem n& Preventio disaster and get back to ent n delivering your service 16 Core Process Areas Service &1 Delivery Service Shared Continuity PA (SAM) PA Addition Service System Service Transition System Developm ent Strategic Service Managem ent This could be at multiple levels. Short-term, Source: SEI medium term and long term: Driver does not report, car failure, accident while transportation Riots, floods, strikes, fuel availability Govt. regulation change © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 24

Process Performance Models in SVC • Typically to support – CAM – Capability & Availability Management – SD – Service Delivery • CAM – Using forecasted demand, concepts of queuing, baseline performance of various sub-processes, identifying the capacity required, that will meet the demand and multiple goals of cycle times, pending queues, delayed requests, requests not serviced, quality, cost and idle time • SD – On arrival of a new demand, re-plan the allocation and sequencing of resources to be able optimally meet multiple goals of cycle times, pending queues, delayed requests, requests not serviced, quality, cost and idle time © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 25

Production Support Example-1 Analyze Fix Review Test …… Expert Expert Expert Expert Suzy Proficient Proficient Proficient Expert Rohit Novice Proficient Proficient Expert Rita Cant Do Novice Novice Proficient Ankit New ticket Queue Queue Queue Accept/ Queue Reject Analyze Fix Review Queue Queue Queue Close Monitor Delivery Regression Test Optimize: SLA Compliance, Bad Fixes, Idle, Cost, Pending Queues Input Data: Expected arrival rate, current sub-process performance baselines Models: Simulations, based on queuing theory What-if: We change the rules of task assignment? More tickets are expected? We get one more person in the team? Suzy takes leave for 2 weeks? © Rajesh Naik, We reduce avg. cycle-time of “regressions” sub-process by 10%? 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 26

Value of CMMI-SVC Rigorous yet flexible framework Improved SLA compliance & delivery efficiency Improved customer satisfaction Optimized capacity utilization Effective change management Roadmap to service maturity Gain a marketing/competitive edge © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 27

CMMI-SVC vs ISO 20000 vs V3 Note: PA’s marked as green may still require effort for “transition” to SVC Framework © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 28

CMMI®- SVC and SCAMPI-A • Separate appraisals for CMMI®- SVC – currently cannot be combined with DEV • LAs need SVC specific authorization • Scoping of the DEV appraisals may be impacted (after the arrival of SVC). Projects that may need to be “out of scope” of DEV in future could include: – Production support – Short cycle maintenance projects – Pure testing projects • (It was anyway difficult to demonstrate RD, PI and VAL in many such projects) © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 29

Opportunities for IT Companies 1. Use CMMI® - SVC for non-DEV parts of the software organization –Production support, maintenance, testing 2. Implement in other services – IT Infrastructure management, BPO/ KPO, internal services (training, facilities, etc.) 3. Provide process consulting for your IT customers in the services business (banking, insurance, finance, transport, logistics, retail, training, education, government, health care, hospitality, etc.) 4. For your customers, provide integrated IT-based solutions that are aligned with CMMI®-SVC © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 30

Service Process and Service Automation SERVICE DELIVERY AND MANAGEMENT PROCESS AUTOMATED SERVICE PROCESS © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 31

Opportunities for Process/ Quality Folks Most of your customers are services organizations -- Banking, Insurance, Finance, Travel, Hotels, Hospitals, Government Services, Utilities Most services are highly automated, by companies such as yours You (process group and IT delivery teams) can deliver CMMI-SVC compatible IT systems for your services industry clients © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 32

About this Presentation Author: Rajesh Naik Consulting Partner QAI India Limited rajesh.naik@qaiglobal.com naik.rajeshnaik@gmail.com +91 9845488767 More resources on the subject are available from the creator of this presentation at: http://www.rajeshnaik.com © Rajesh Naik, 2010 This work is released under a Creative Commons Attribution-NonCommercial- ShareAlike 3.0 Unported License license. This means you can use it for noncommercial purposes so long as you include the copyright line “© Rajesh Naik, 2010". If you create derivative works using this work, they should also be made available under a similar license. For further information go to http://creativecommons.org/licenses/by-nc-sa/3.0/ For uses outside the scope of the license, contact Rajesh Naik at naik.rajeshnaik@gmail.com © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 33

Thank You Rajesh Naik Consulting Partner QAI India Limited Email rajesh.naik@qaiglobal.com OR naik.rajeshnaik@gmail.com Mobile +91 9845488767 Website www.rajeshnaik.com Also, have a look at the latest “business novel”: Aligning Ferret: How an Organization Meets Extraordinary Challenges By Swapna Kishore & Rajesh Naik Website: http://www.postscript-impressions.com © Rajesh Naik, 2010 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 34

CMMI for Services - Insights and Beyond

by Rajesh Naik on Jul 04, 2010

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