Webinar:  The Business Case for  Software Process Improvement December 2, 2009 11:00 am
Allen Bennett Process Improvement Consultant [email_address] Michael Milutis Director of Marketing Computer Aid, Inc. (CAI...
About Computer Aid, Inc. (CAI) <ul><li>CAI is a global IT outsourcing firm currently managing active engagements with over...
PDU Credits For This Webinar  <ul><li>The Project Management Institute’s ISSIG group has accredited this webinar with PDUs...
NOW AVAILABLE!  ONLINE WEBINAR RECORDINGS  ANYTIME ACCESS! WWW. ITMPI.ORG / LIBRARY
Agenda <ul><li>Improvement  Experiences </li></ul><ul><li>Building a business case </li></ul><ul><li>The industry data </l...
One Of Our Divisions <ul><li>Space Borne Payloads </li></ul><ul><li>Wireless Communications </li></ul><ul><li>Network Solu...
Why Improve? <ul><li>Corporate Challenges </li></ul><ul><li>Customer Demand </li></ul><ul><li>Competitive Pressures </li><...
8 Stages - John P. Kotter Leading Change <ul><li>1 Establishing a sense of urgency </li></ul><ul><li>2 Creating a guiding ...
Changes Implemented <ul><li>Documented standard processes </li></ul><ul><li>Integrated teams </li></ul><ul><li>Structured ...
Improvement Realized Software Productivity Software Quality Hardware Development Time to market
Building A Business Case  <ul><li>Define a tangible problem </li></ul><ul><li>Understand the investment </li></ul><ul><li>...
Speak The CFO’s Language  <ul><li>Return on investment ratio  </li></ul>or Return :: Cost of investment
How Much Will Improvement Cost? <ul><li>Organizations dedicate from 2 - 6% of the Engineering Staff to process improvement...
Business Case Results <ul><li>From 25 organizations using CMMI, reporting percentage over time </li></ul><ul><li>Source: S...
Too Much Overhead To Do CMMI? <ul><li>Lockheed Martin Integrated Systems and Solutions reported a 15% reduction in overhea...
Improved Schedule Performance <ul><li>50% reduction in release turnaround time (Boeing, Australia)1 </li></ul><ul><li>Incr...
Intangible Benefits Of Process Improvement <ul><li>At Ogden Air Logistics Center – Crosstalk, May 1999 </li></ul><ul><li>P...
DACS ROI Dashboard <ul><li>The ROI Dashboard© augments and updates the DACS Report  &quot;A Business Case for Software Pro...
Improving 1 Practice At A Time http://www. thedacs .com/databases/ roi /
DACS ROI Dashboard http://www. thedacs .com/databases/ roi /
Questions? Your PDU CODE: S010-ITMPI0xxxx
The IT CAI Sponsors  <ul><li>Metrics & Productivity Institute: </li></ul><ul><ul><ul><li>Clearinghouse repository of best ...
Software Best Practices Conferences Around The World  WWW.ITMPI.ORG  / EVENTS   Sep. 22 Chicago, IL Sep. 29 New York, NY O...
Michael Milutis Director of Marketing Computer Aid, Inc. (CAI) [email_address] Allen Bennett Process Improvement Consultan...
Upcoming SlideShare
Loading in …5
×

Business Case4 Process Improvement

322 views

Published on

This presentation provides an example and specific sources for data to demonstrate measureable iprovments in productivity, quality and customer satisfaction.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
322
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • The purpose of this webinar is to discuss issues that impact the effectiveness of IT organizations. Our discussion will be limited to IT Service Delivery (problem resolution, consultation requests, enhancements and projects). We will not be addressing Infrastructure or Operations Management issues.
  • If you are a software engineering manager the evidence is in. The question is not whether you should have a software process improvement program the question is why are you not implementing some of the industry best practices proven to reduce defects, reduce cost and improve delivered quality. These have been demonstrated to work for small and large firms, hardware developers or IT firms.
  • If you are a software engineering manager the evidence is in. The question is not whether you should have a software process improvement program the question is why are you not implementing some of the industry best practices proven to reduce defects, reduce cost and improve delivered quality. These have been demonstrated to work for small and large firms, hardware developers or IT firms.
  • If you are a software engineering manager the evidence is in. The question is not whether you should have a software process improvement program the question is why are you not implementing some of the industry best practices proven to reduce defects, reduce cost and improve delivered quality. These have been demonstrated to work for small and large firms, hardware developers or IT firms.
  • Business Case4 Process Improvement

    1. 1. Webinar: The Business Case for Software Process Improvement December 2, 2009 11:00 am
    2. 2. Allen Bennett Process Improvement Consultant [email_address] Michael Milutis Director of Marketing Computer Aid, Inc. (CAI) [email_address]
    3. 3. About Computer Aid, Inc. (CAI) <ul><li>CAI is a global IT outsourcing firm currently managing active engagements with over 100 Fortune 1,000 companies and government agencies around the world. </li></ul><ul><li>CAI is a leader in IT Best Practices for legacy support and new development application management. </li></ul><ul><li>CAI’s focus is directed toward practical implementations that track and measure the right activities in software activity management </li></ul><ul><li>CAI consistently promises and delivers double digit productivity in its outsourcing and consulting engagements. </li></ul><ul><li>CAI makes all of this possible through the use of: </li></ul><ul><ul><ul><li>Standard processes </li></ul></ul></ul><ul><ul><ul><li>Management by metrics </li></ul></ul></ul><ul><ul><ul><li>SLA compliance management </li></ul></ul></ul><ul><ul><ul><li>Detailed cost, resource, and time tracking </li></ul></ul></ul><ul><ul><ul><li>Capacity management </li></ul></ul></ul><ul><ul><ul><li>Standard estimation </li></ul></ul></ul><ul><ul><ul><li>A unique, metrics based methodology along with a proprietary, real time data repository and management system (TRACER®). </li></ul></ul></ul>
    4. 4. PDU Credits For This Webinar <ul><li>The Project Management Institute’s ISSIG group has accredited this webinar with PDUs </li></ul><ul><li>Stay tuned! Your PDU code will be displayed at the conclusion of this webinar. </li></ul>
    5. 5. NOW AVAILABLE! ONLINE WEBINAR RECORDINGS ANYTIME ACCESS! WWW. ITMPI.ORG / LIBRARY
    6. 6. Agenda <ul><li>Improvement Experiences </li></ul><ul><li>Building a business case </li></ul><ul><li>The industry data </li></ul>
    7. 7. One Of Our Divisions <ul><li>Space Borne Payloads </li></ul><ul><li>Wireless Communications </li></ul><ul><li>Network Solutions </li></ul><ul><li>Embedded Real Time Software </li></ul><ul><li>Approximately 170 Software Engineers in multiple locations </li></ul>
    8. 8. Why Improve? <ul><li>Corporate Challenges </li></ul><ul><li>Customer Demand </li></ul><ul><li>Competitive Pressures </li></ul><ul><li>Internal Pride </li></ul>
    9. 9. 8 Stages - John P. Kotter Leading Change <ul><li>1 Establishing a sense of urgency </li></ul><ul><li>2 Creating a guiding coalition </li></ul><ul><li>3 Developing a vision and strategy </li></ul><ul><li>4 Communicating the change vision </li></ul><ul><li>5 Empowering for broad based action </li></ul><ul><li>6 Generating short term wins </li></ul><ul><li>7 Consolidating gains and producing more change </li></ul><ul><li>8 Anchoring the new approaches in the culture </li></ul>
    10. 10. Changes Implemented <ul><li>Documented standard processes </li></ul><ul><li>Integrated teams </li></ul><ul><li>Structured peer reviews </li></ul><ul><li>Milestone gate reviews </li></ul><ul><li>Model based development practices </li></ul><ul><li>SW CMM Level 3 </li></ul>Systems and Software CMMI Level 3 recently added
    11. 11. Improvement Realized Software Productivity Software Quality Hardware Development Time to market
    12. 12. Building A Business Case <ul><li>Define a tangible problem </li></ul><ul><li>Understand the investment </li></ul><ul><li>Predict the returns </li></ul><ul><li>Prototype the solution </li></ul><ul><li>Deploy through out the organization </li></ul><ul><li>Measure the results </li></ul><ul><li>Repeat steps 1-6 on the next problem </li></ul>Use or disclosure of this information is subject to the restrictions on the Title Page of this document.
    13. 13. Speak The CFO’s Language <ul><li>Return on investment ratio </li></ul>or Return :: Cost of investment
    14. 14. How Much Will Improvement Cost? <ul><li>Organizations dedicate from 2 - 6% of the Engineering Staff to process improvement and deployment activities. </li></ul>
    15. 15. Business Case Results <ul><li>From 25 organizations using CMMI, reporting percentage over time </li></ul><ul><li>Source: SEI/CMU Results reported as of December 2005 </li></ul>Improvements High Point Median Point Low Point # data Points Cost 87% 20% 3% 21 Schedule 90% 37% 2% 19 Productivity 255% 62% 9% 17 Quality 132% 50% 7% 20 Customer Satisfaction 55% 14% -4% 6 ROI 27.7:1 4.7:1 2:1 16
    16. 16. Too Much Overhead To Do CMMI? <ul><li>Lockheed Martin Integrated Systems and Solutions reported a 15% reduction in overhead in moving from SW-CMM Level 3 to CMMI Level 5 from 1993 to 2003 at the same time demonstrating a 40% increase in productivity* </li></ul><ul><li>*SoftwareTech News March 2007 </li></ul>
    17. 17. Improved Schedule Performance <ul><li>50% reduction in release turnaround time (Boeing, Australia)1 </li></ul><ul><li>Increased the percentage of milestones met from 50% to Approx. 95% (General Motors) 2 </li></ul><ul><li>Decrease avg. number of days late from 50 to fewer than 10 (General Motors) 2 </li></ul><ul><li>Increased through-put resulting in more releases per year (JP Morgan) 1 </li></ul>1 Performance Results of CMMI Based Process Improvements, Gibson, Goldenson, and Kost, SEI Technical Report CMU/SEi-2006-TR-004 2 Camping on a Seesaw: GM’s IS&S Process Improvement Approach. Hoffman, Moore and Schatz SEPG 2003
    18. 18. Intangible Benefits Of Process Improvement <ul><li>At Ogden Air Logistics Center – Crosstalk, May 1999 </li></ul><ul><li>Positive influence on working environment </li></ul><ul><li>Beneficial structure provided to the development process </li></ul><ul><li>Fewer surprises and last-minute glitches </li></ul><ul><li>Better quality software; overtime and unhappy customers reduced </li></ul><ul><li>At Boeing Space Transportation Systems – IEEE Software, Oct 1999 </li></ul><ul><li>Employee Satisfaction up from 74% to 96% </li></ul><ul><li>Employees motivated to eliminate defects, improve quality </li></ul><ul><li>At SSC San Diego – Costs and Benefits of SPI, Karen D. Prenger </li></ul><ul><li>Better management control over project, team communication </li></ul><ul><li>Better overall performance of the software </li></ul><ul><li>Improved morale of team, less overtime, absenteeism </li></ul><ul><li>Increased competitive advantage and repeat business </li></ul><ul><li>At multiple sites – DACS: Business Case for SPI Revised </li></ul><ul><li>Improved customer satisfaction </li></ul><ul><li>Improved professional staff </li></ul>Source SEPG 2005: Special Intelligence from the Women in Black
    19. 19. DACS ROI Dashboard <ul><li>The ROI Dashboard© augments and updates the DACS Report &quot;A Business Case for Software Process Improvement&quot; with the latest published data on benefits. </li></ul>http://www. thedacs .com/databases/ roi /
    20. 20. Improving 1 Practice At A Time http://www. thedacs .com/databases/ roi /
    21. 21. DACS ROI Dashboard http://www. thedacs .com/databases/ roi /
    22. 22. Questions? Your PDU CODE: S010-ITMPI0xxxx
    23. 23. The IT CAI Sponsors <ul><li>Metrics & Productivity Institute: </li></ul><ul><ul><ul><li>Clearinghouse repository of best practices: WWW.ITMPI.ORG </li></ul></ul></ul><ul><ul><ul><li>Weekly educational newsletter: WWW.ITMPI.ORG / SUBSCRIBE </li></ul></ul></ul><ul><ul><ul><li>Weekly webinars hosted by industry leaders: WWW.ITMPI.ORG / WEBINARS </li></ul></ul></ul><ul><ul><ul><li>ACCESS WEBINAR RECORDINGS ANYTIME AT WWW.ITMPI.ORG / LIBRARY </li></ul></ul></ul><ul><ul><ul><li>Follow us on TWITTER at WWW.TWITTER.COM / ITMPI </li></ul></ul></ul>
    24. 24. Software Best Practices Conferences Around The World WWW.ITMPI.ORG / EVENTS Sep. 22 Chicago, IL Sep. 29 New York, NY Oct. 1 Toronto, ON Oct. 6 Baltimore, MD Oct. 20 Philadelphia, PA Oct. 27 Washington DC Oct. 29 San Antonio, TX Nov. 10 Princeton, NJ Nov. 17 Ft. Lauderdale, FL Dec. 10 Philadelphia, PA Fall 2009 Feb. 9 New Orleans, LA Feb. 23 Tampa, FL Mar. 11 Miami, FL Mar. 23 Philadelphia, PA Apr. 8 Orlando, FL Apr. 20 Detroit, MI May 4 Trenton, NJ Jun. 22 Olympia, WA Spring 2010
    25. 25. Michael Milutis Director of Marketing Computer Aid, Inc. (CAI) [email_address] Allen Bennett Process Improvement Consultant SEI Authorized Lead Appraiser [email_address] 260 249-7884

    ×