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©	Tasktop	2017 @mik_kersten			@carmendeardo© Tasktop 2016
Value	Stream	Architecture
Dr.	Mik	Kersten	(Tasktop	CEO)	&	Carmen...
©	Tasktop	2017 @mik_kersten			@carmendeardo
We are a strong mutual
company built to serve
our members.#68 ON THE
FORTUNE
5...
©	Tasktop	2017 @mik_kersten			@carmendeardo
of	the	
Fortune	
10043
of	the	top	25	
world	banks11
of	the	top	10	
US	insurers...
©	Tasktop	2017 @mik_kersten			@carmendeardo
©	Tasktop	2017 @mik_kersten			@carmendeardo
Application Security
Monitoring & Mgmt
Process.st
Development
Test
API
Deploym...
©	Tasktop	2017 @mik_kersten			@carmendeardo
Fragmented	Value	StreamsBusiness	Value
Best-of-breed	tool	chain
Revenue	Result...
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
Our AGILE Journey Began in 2006
7
AGILE
The starting point wa...
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
AGILE and LEAN provided Productivity and Quality
Improvements...
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
Results
PRODUCTIVITY
PREDICTABILITY
QUALITY
$25M+
Economic va...
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
SPEED
TIME
High Acceleration
during Design,
Develop and
Accep...
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
True North:
Reduced lead time for changes
Business enabling r...
©	Tasktop	2017 @mik_kersten			@carmendeardo
BMW	Leipzig	Plant	Architecture	
Image	Source:	BMW	Group
©	Tasktop	2017 @mik_kersten			@carmendeardo
Business	value	flow	at	BMW
Quality	cars	that	deliver	“sheer	driving	pleasure”
...
©	Tasktop	2017 @mik_kersten			@carmendeardo
What	if	we	could	take	an	fMRI	of	the	
organization?
©	Tasktop	2017 @mik_kersten			@carmendeardo
Product UX	/	UI
Security
Ops
Cross-functional	Feature	Team
Development
©	Tasktop	2017 @mik_kersten			@carmendeardo
Feature	Teams
Product UX	/	UI
Security
Ops
Development
Feature	Team	1 Feature	...
©	Tasktop	2017 @mik_kersten			@carmendeardo
New	York
Vancouver
Greenland
Paris
Moscow
Beijing
Sydney
Cairo
Rio
©	Tasktop	2017 @mik_kersten			@carmendeardo
New	York
Vancouver
Greenland
Paris
Moscow
Beijing
Sydney
Cairo
Rio
©	Tasktop	2017 @mik_kersten			@carmendeardo
Optimizing	for	linear	flow
Design	for	repeatability,	minimize	creative	work
Th...
©	Tasktop	2017 @mik_kersten			@carmendeardo
Value	Stream	Network
©	Tasktop	2017 @mik_kersten			@carmendeardo
70%	integrate	3+	endpoints
40%	connect	4	or	more	tools	
66%	use	4-8	integratio...
©	Tasktop	2017 @mik_kersten			@carmendeardo
Software	architecture	follows	
value	stream,	not	vice	versa
APIs	to	minimize	a...
©	Tasktop	2017 @mik_kersten			@carmendeardo
Value	Stream	Integration
Every	best-of-breed	tool	is	connected	for	end-to-end	...
©	Tasktop	2017 @mik_kersten			@carmendeardo
Flow	Units
Unit Aka Pulled by Description
Feature Story Requirements,
User Sto...
©	Tasktop	2017 @mik_kersten			@carmendeardo
Flow	Measures
Flow Measures Description Example
Lead Time Time from request to...
©	Tasktop	2017 @mik_kersten			@carmendeardo
Example	Flow	Metrics
Flow Metrics Type Description
End-to-end Lead
Time
Veloci...
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
27
STORY
BUSINESS
BUSINESS
INITIATIVE A
SYSTEM RELEASE
AC AC
...
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
28
STORY
BUSINESS
BUSINESS
INITIATIVE A
SYSTEM RELEASE
AC AC
...
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
29
Brad you
broke the Build
again!
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
30
DevOps
makes our
lead time small
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
31
https://itrevolution.com/book/thinking-environments/
Horiz...
©	Tasktop	2017 @mik_kersten			@carmendeardo
©	Tasktop	2017 @mik_kersten			@carmendeardo
Value	Stream	Visibility
©	Tasktop	2017 @mik_kersten			@carmendeardo
No	DevOps	transformation	can	
succeed	at	scale	without	a	
connected	value	stre...
©	Tasktop	2017 @mik_kersten			@carmendeardo© Tasktop 2016
@mik_kersten
@carmendeardo
http://tasktop.com http://nationwide....
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The Case for Value Stream Architecture (Mik Kersten, Carmen DeArdo)

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The Case for Value Stream Architecture - DevOps Entrprise Summit 2017

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The Case for Value Stream Architecture (Mik Kersten, Carmen DeArdo)

  1. 1. © Tasktop 2017 @mik_kersten @carmendeardo© Tasktop 2016 Value Stream Architecture Dr. Mik Kersten (Tasktop CEO) & Carmen DeArdo (Nationwide Technology Director) Image Source: BMW Group
  2. 2. © Tasktop 2017 @mik_kersten @carmendeardo We are a strong mutual company built to serve our members.#68 ON THE FORTUNE 500 LIST
  3. 3. © Tasktop 2017 @mik_kersten @carmendeardo of the Fortune 10043 of the top 25 world banks11 of the top 10 US insurers4 of the top 6 health plans6
  4. 4. © Tasktop 2017 @mik_kersten @carmendeardo
  5. 5. © Tasktop 2017 @mik_kersten @carmendeardo Application Security Monitoring & Mgmt Process.st Development Test API Deployment Run Monitoring Low Code/Rapid/Mobile Dev Security Codebox IDEsReq Management Agile Management App Automation Container Security DevSecOps Low Code / RAD / Mobile App Dev CI/CD Dev Analytics Perf / Load / Stress Functional / Automation API Management API Dev Services API Integration API Directories VINDOC GrowthPoint Technology Partners DevOps Startup Landscape Map Cloud / Container Orchestration / Management Repositories / Dev Communities / Integration Layers Service Virt © Copyright GrowthPoint Technology Partners 2017 For general information purposes only. This is not an analysis nor a recommendation of any company and is not an offer or solicitation to buy or sell securities in any company.
  6. 6. © Tasktop 2017 @mik_kersten @carmendeardo Fragmented Value StreamsBusiness Value Best-of-breed tool chain Revenue Results We need a more disciplined and structured way of thinking about software value streams
  7. 7. © Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017 Our AGILE Journey Began in 2006 7 AGILE The starting point was a Project Centric mindset with high start-up costs and inconsistent delivery We did not see the productivity and quality gains we desired, so we increased our focus on Agile practice maturity To reduce start-up costs and improve consistency, we established 20 agile “standing lines”2006 2012 CMMI Scaled up to 50 Agile Lines across 14 technology domains First Tasktop Integration: QA and Agile Lines (defects)
  8. 8. © Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017 AGILE and LEAN provided Productivity and Quality Improvements, DevOps needed to drive Speed 8 AGILE Introduced LEAN for application maintenance productivity and quality 2014 2017 LEAN Redesigned our Software Development model and adopt Agile across all application areas Use Tasktop Hub to provide visibility across delivery value stream2016 Roll out DevOps practices to improve lead time and deployment frequency DEVOPS
  9. 9. © Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017 Results PRODUCTIVITY PREDICTABILITY QUALITY $25M+ Economic value annually 88% releases went into production with ZERO defects 55% Top Quartile compared to industry On-time delivery over 90% 9
  10. 10. © Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017 SPEED TIME High Acceleration during Design, Develop and Acceptance Testing 0 Teams waiting for work due to “discrete” planning processes Deployment slowed by manual and high ceremony processes 10 Need to Increase Speed Across the Value Stream
  11. 11. © Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017 True North: Reduced lead time for changes Business enabling responsiveness 11 Ø Change our goals from cost and support efficiency to optimizing the developer experience Ø Architect for results like lead time and deployment frequency Ø Organize to support horizontal systems thinking across the value stream DevOps Compass Points to Business Success
  12. 12. © Tasktop 2017 @mik_kersten @carmendeardo BMW Leipzig Plant Architecture Image Source: BMW Group
  13. 13. © Tasktop 2017 @mik_kersten @carmendeardo Business value flow at BMW Quality cars that deliver “sheer driving pleasure” Designed in yearly cycles, delivered every 70s Creative and manufacturing process are decoupled Business value flow in IT New features that deliver success and delight Designed and delivered every 2-week sprint Creative and manufacturing process are coupled Image Source: BMW Group
  14. 14. © Tasktop 2017 @mik_kersten @carmendeardo What if we could take an fMRI of the organization?
  15. 15. © Tasktop 2017 @mik_kersten @carmendeardo Product UX / UI Security Ops Cross-functional Feature Team Development
  16. 16. © Tasktop 2017 @mik_kersten @carmendeardo Feature Teams Product UX / UI Security Ops Development Feature Team 1 Feature Team 2 Feature Team 3
  17. 17. © Tasktop 2017 @mik_kersten @carmendeardo New York Vancouver Greenland Paris Moscow Beijing Sydney Cairo Rio
  18. 18. © Tasktop 2017 @mik_kersten @carmendeardo New York Vancouver Greenland Paris Moscow Beijing Sydney Cairo Rio
  19. 19. © Tasktop 2017 @mik_kersten @carmendeardo Optimizing for linear flow Design for repeatability, minimize creative work This doesn’t work for software Waterfall and RUP are tried to make things linear Overly narrow DevOps are doing the same End-to-end software is not a linear manufacturing process, it’s a Value Stream Network
  20. 20. © Tasktop 2017 @mik_kersten @carmendeardo Value Stream Network
  21. 21. © Tasktop 2017 @mik_kersten @carmendeardo 70% integrate 3+ endpoints 40% connect 4 or more tools 66% use 4-8 integration patterns 300 value streams analyzed Your value streams are networks But most have an ad-hoc architecture
  22. 22. © Tasktop 2017 @mik_kersten @carmendeardo Software architecture follows value stream, not vice versa APIs to minimize a team’s wait times Or structure follows value stream Reverse Conway’s law, Feature teams Value Stream Architect Defines integration and visibility strategy Designs end-to-end flow and feedback loops Core to your transformation Value Stream Architecture https://itrevolution.com/devops-books/
  23. 23. © Tasktop 2017 @mik_kersten @carmendeardo Value Stream Integration Every best-of-breed tool is connected for end-to-end flow Single standard tool chain, can be specialized for countries, LOBs, investment horizons The tool chain becomes modular, supports change and specialization Value Stream Visibility Real-time view of all business value flows and bottlenecks Metrics are connected to business results Risk and compliance certification is built into the framework Framework
  24. 24. © Tasktop 2017 @mik_kersten @carmendeardo Flow Units Unit Aka Pulled by Description Feature Story Requirements, User Stories User/Customers New business value added to the application, visible to the customer Defect Story Incident, bug User/Customers Fixes for quality problems that affect customer experience Security Story Vulnerability Security Officers, Auditors Fixes for weaknesses, flaws and vectors for exploits Tech Debt Story Architecture story Software Architects, Teams Improvement to the software architecture, invisible to the customer Value Stream Story IT for IT backlog Value Stream Architects Improvement to the value stream architecture, invisible to the customer
  25. 25. © Tasktop 2017 @mik_kersten @carmendeardo Flow Measures Flow Measures Description Example Lead Time Time from request to delivered artifact running in production Days from customer requesting a feature to using the requested feature. Cycle Time Time from work start to completion Hours from developer accepting a Feature Story to merging the finished implementation to master. Process time Time an artifact is actively worked on Cumulative days a Feature Story is actively worked on. Wait time Time from work request to work start Time zone delay in hours for an offshore team to start work on a Feature Story. Utilization Sum of process times of lead time (%) Low utilization for a Dev team with an external dependency Backlog Size Number of artifacts in the queue at a particular stage of the value stream The number of Security Stories on an Agile team’s backlog.
  26. 26. © Tasktop 2017 @mik_kersten @carmendeardo Example Flow Metrics Flow Metrics Type Description End-to-end Lead Time Velocity Time from customer request to improvement running in production Mean Time To Repair (MTTR) Responsiveness Round-trip time from support ticket, through Defect Story creation, diagnosis, fix through to delivery. Deployment frequency Repeatability Number of deploy per day/week Flow unit cost Cost Cost per flow unit per team Productivity Throughput Number of flow units delivered per team per release. New Business Value Ratio Value Proportion of Artifacts of type Feature Story delivered per release.
  27. 27. © Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017 27 STORY BUSINESS BUSINESS INITIATIVE A SYSTEM RELEASE AC AC SCM CI IT / ST / PT / UAT CODE STATION TEST RESULTS / PT / SECURITY READY FOR PRODUCTION WORK INTAKE RELEASE PLANNING DESIGN / DEVELOP QUALITY CERTIFIED DEPLOY INITIATIVE BUILDS This image cannot currently be displayed. FEEDBACK BUSINESS VALUE DEPLOY FEEDBACK BUSINESS VALUE BUSINESS TASKTOP INITIATIVE BACKLOG WIP DONE MULTIPLE DEPLOYS QUALITY CERTIFIED READY FOR PRODUCTION LEAD TIME PPM RTC URBANCODE RELEASE URBANCODE DEPLOY VALUE STREAM PROCESS STREAM TOOL STREAM DEPLOY Measuring Lead Time
  28. 28. © Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017 28 STORY BUSINESS BUSINESS INITIATIVE A SYSTEM RELEASE AC AC SCM CI IT / ST / PT / UAT CODE STATION TEST RESULTS / PT / SECURITY READY FOR PRODUCTION WORK INTAKE RELEASE PLANNING DESIGN / DEVELOP QUALITY CERTIFIED DEPLOY INITIATIVE BUILDS FEEDBACK BUSINESS VALUE DEPLOY FEEDBACK BUSINESS VALUE BUSINESS TASKTOP INITIATIVE BACKLOG WIP DONE MULTIPLE DEPLOYS QUALITY CERTIFIED READY FOR PRODUCTION CLARITY RTC URBANCODE RELEASE URBANCODE DEPLOY VALUE STREAM PROCESS STREAM TOOL STREAM DEPLOY 6/1 6/10 6/24 6/26 6/24-6/26 6/30 7/5 7/15 LEAD TIME (45 DAYS) Measuring Lead Time
  29. 29. © Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017 29 Brad you broke the Build again!
  30. 30. © Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017 30 DevOps makes our lead time small
  31. 31. © Tasktop 2017 @mik_kersten @carmendeardo© Nationwide 2017 31 https://itrevolution.com/book/thinking-environments/ Horizontal planks must be built and supported: • Architecture • Product Ownership • Funding • Prioritization • Continuous Improvement Delivery Value Stream Organization Models
  32. 32. © Tasktop 2017 @mik_kersten @carmendeardo
  33. 33. © Tasktop 2017 @mik_kersten @carmendeardo Value Stream Visibility
  34. 34. © Tasktop 2017 @mik_kersten @carmendeardo No DevOps transformation can succeed at scale without a connected value stream network No IT organization can adapt without accurate value stream visibility Value Stream Architect is key to your success IT cannot thrive without a connected value stream
  35. 35. © Tasktop 2017 @mik_kersten @carmendeardo© Tasktop 2016 @mik_kersten @carmendeardo http://tasktop.com http://nationwide.com Image Source: BMW Group

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