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Making the Business a First-Class Citizen During the Application Modernization Journey

VMware Tanzu
VMware Tanzu
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SpringOne 2020 Making the Business a First-Class Citizen During the Application Modernization Journey Ryan Johnson, Associate Director at Accenture

Making the Business a First-Class Citizen During the Application Modernization Journey

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Copyright © 2020 Accenture. All rights reserved.
A FIRST CLASS
BUSINESS
CITIZEN
2
Products Disposition Target State Priority Value Case
TIME
Originate Accounts and Services (3.0) Decision Products (3.3) App 1 10,000$ 600,000$ Tolerate High $....
Originate Accounts and Services (3.0) Decision Products (3.3) App 2 3,000,000$ 1,200,000$ Tolerate Replace Low $....
Originate Accounts and Services (3.0) Decision Products (3.3) App 3 400,000$ 200,000$ Tolerate Replace High $....
6 R'sL0 Q1 2020Name
Commercial Loans
Technology Components
TCO% by Component (2017) TCO% by Component
Capabilities
L1
APP MODERNIZATION PRODUCT TAXONOMY
By making the nomenclature around products, capabilities, and apps more pervasive, we can get into a
mental model to facilitate intelligent decision-making…
1. For a Given
Product
2. We Need the
Capability to…
3. We Enable this
capability with these
Technology Components
[e.g. Applications]
4. If we [Disposition] & Get
to Target State
5. Priority
For Commercial
Loans
We need the
capability to
Decision Products
We currently use multiple
applications (e.g. our
Mainframe Customer Data,
Moody’s Analyst) to Decision
Products
If we Replace Our Mainframe with
nCino and supporting
enhancements and Replace
Moody’s Analyst with their latest
product Moody’s Credit Lens
High, Med, Low
We can target an OpEx reduction of $XXX while offering top line growth, a higher quality experience and
more resiliency
1 2 3 4
5
Model
Flow
Example
Use Case
Example
Business
Case
Classification: Internal Use
FROM INSIGHTS TO ACTIONS
considering multiple influences
Priority
Value
Disposition
Disposition: Applications are
dispositioned at each level of
assessment into one of the 7 R’s
iteratively ensuring minimal investment
in analysis
Priority: Applications are prioritized
based on several key factors including
business goals, technology goals, and
regulatory/compliance needs
Value/Cost: Technology spend is
compared internally and against external
bench marks to understand target cost.
Additionally, value through growth is
estimated
Classification: Internal Use
EACH 6R TREATMENT ADDRESSES
different elements of the client’s requirements
Lower degree of
achievement
Higher degree of
achievement
* Dependent on level of re-factoring
* *
BUSINESS
AGILITY
NEW IT
SKILLS
ALIGN TO
TARGET ARCH.
REDUCE
TCO
LEVERAGE CLOUD
CAPABILITIES
COST / TIME TO
ACHIEVE
RETAIN
REPLACE
RE-HOST
RE-PLATFORM
RE-FACTOR
RE-IMAGINE
Lower Cost Higher Cost
Copyright © 2020 Accenture. All rights reserved.
MODERNIZATION
EXECUTING THE
Copyright © 2020 Accenture. All rights reserved. 6
THE SEVEN R’S
Definebusinessandtechnicalprioritiesforall
applications.Leveragetheseprioritiestodefinea funnel
toprioritizeapplications.
RETAIN
RE-HOST
REPLACE
(With Package)
RE-IMAGINE
RE-FACTOR
RE-PLATFORM
(Extend Life)Leveraging a rapid assessment methodology, you
can define “Just InTime” application disposition to
ensure the modernization journey continues to be
aligned with your business and technology goals.
(End Life)
RETIRE
1 Product Manager
1-2 Software Architects
1 Business SME
1-2Technology SMEs

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Making the Business a First-Class Citizen During the Application Modernization Journey

  • 1. Copyright © 2020 Accenture. All rights reserved. A FIRST CLASS BUSINESS CITIZEN
  • 2. 2 Products Disposition Target State Priority Value Case TIME Originate Accounts and Services (3.0) Decision Products (3.3) App 1 10,000$ 600,000$ Tolerate High $.... Originate Accounts and Services (3.0) Decision Products (3.3) App 2 3,000,000$ 1,200,000$ Tolerate Replace Low $.... Originate Accounts and Services (3.0) Decision Products (3.3) App 3 400,000$ 200,000$ Tolerate Replace High $.... 6 R'sL0 Q1 2020Name Commercial Loans Technology Components TCO% by Component (2017) TCO% by Component Capabilities L1 APP MODERNIZATION PRODUCT TAXONOMY By making the nomenclature around products, capabilities, and apps more pervasive, we can get into a mental model to facilitate intelligent decision-making… 1. For a Given Product 2. We Need the Capability to… 3. We Enable this capability with these Technology Components [e.g. Applications] 4. If we [Disposition] & Get to Target State 5. Priority For Commercial Loans We need the capability to Decision Products We currently use multiple applications (e.g. our Mainframe Customer Data, Moody’s Analyst) to Decision Products If we Replace Our Mainframe with nCino and supporting enhancements and Replace Moody’s Analyst with their latest product Moody’s Credit Lens High, Med, Low We can target an OpEx reduction of $XXX while offering top line growth, a higher quality experience and more resiliency 1 2 3 4 5 Model Flow Example Use Case Example Business Case
  • 3. Classification: Internal Use FROM INSIGHTS TO ACTIONS considering multiple influences Priority Value Disposition Disposition: Applications are dispositioned at each level of assessment into one of the 7 R’s iteratively ensuring minimal investment in analysis Priority: Applications are prioritized based on several key factors including business goals, technology goals, and regulatory/compliance needs Value/Cost: Technology spend is compared internally and against external bench marks to understand target cost. Additionally, value through growth is estimated
  • 4. Classification: Internal Use EACH 6R TREATMENT ADDRESSES different elements of the client’s requirements Lower degree of achievement Higher degree of achievement * Dependent on level of re-factoring * * BUSINESS AGILITY NEW IT SKILLS ALIGN TO TARGET ARCH. REDUCE TCO LEVERAGE CLOUD CAPABILITIES COST / TIME TO ACHIEVE RETAIN REPLACE RE-HOST RE-PLATFORM RE-FACTOR RE-IMAGINE Lower Cost Higher Cost
  • 5. Copyright © 2020 Accenture. All rights reserved. MODERNIZATION EXECUTING THE
  • 6. Copyright © 2020 Accenture. All rights reserved. 6 THE SEVEN R’S Definebusinessandtechnicalprioritiesforall applications.Leveragetheseprioritiestodefinea funnel toprioritizeapplications. RETAIN RE-HOST REPLACE (With Package) RE-IMAGINE RE-FACTOR RE-PLATFORM (Extend Life)Leveraging a rapid assessment methodology, you can define “Just InTime” application disposition to ensure the modernization journey continues to be aligned with your business and technology goals. (End Life) RETIRE 1 Product Manager 1-2 Software Architects 1 Business SME 1-2Technology SMEs
  • 7. Copyright © 2020 Accenture. All rights reserved. 7 APP ROADMAP Create a strategy to incrementally decompose a monolith using proven patterns and tools. Define candidate microservices using processes such as Event Storming and domain decomposition 6 - 8 WEEKS 1 Product Manager 1-2 Software Architects 1 Business SME 1-2 Technology SMEs HOW WE ENGAGE APPLICATION PLANNING RE-IMAGINE RE-FACTOR
  • 8. Copyright © 2020 Accenture. All rights reserved. 8 SCALING ENABLEMENT SCALED APP DELIVERYAPP TRANSFORMATION PLATFORM SERVICES Team kick off to experiment art of the possible. Understanding the current processes that drives software development and deployments. Eliminate bottlenecks, reduce lead time and streamline processes to enable AppTx programs. Define “path to prod” and use First Acescent to validate assumptions and identifybottlenecks. 6-8 weeks 1 Product Manager 2-4 Software Engineers 1 Client Product Manager 2-4 Client Software Engineers 1-2 Software Architects Tanzu Platform is in place and ready to go, configured, and fully CI/CD enabled. 4-X weeks Cloud Operators Client Cloud Operators Using modern engineering techniques and XP, migration complex applications to the cloud. As applications are migrated, identify patterns and document technical solutions. 10-16 weeks 1 Product Manager 1-2 Software Engineers 1-2 Software Architects 1 Client Product Manager 2-4 Client Software Engineers Define support of scaled application transformation teams. 2-4 weeks 1 Product Manager 1 Client Product Manager Leverage existing patterns to rapidly modernize application. 10-16 weeks 1 Product Manager 4-8 Software Engineers PLATFORM SERVICES PATHFINDER HOW WE ENGAGE EXECUTION RE-IMAGINE RE-FACTOR
  • 9. Combining our Accelerated Delivery, AppTx, and Cloud Migration Factory, we were able to deliver business features, create an application transformation roadmap and create a data center migration plan in 8 weeks. Worldwide Financial Service Company Highlights • Working Software • Completed the product feature in 6 weeks that the client team had estimated at 16 weeks • AppTx Roadmap • Created a funnel that focused on delivering business value and reducing technical debt by defining the roadmap into Cloud Friendly, Cloud Ready, and Cloud Native with a focused 16 week plan • Data Center Migration Plan • Developed a plan to migrate the most complex application in an agreed SLA • Described how to effectively move 200+ applications in less than 7 months Copyright © 2020 Accenture. All rights reserved.
  • 10. …AND THEN COVID-19 HAPPENED SO WE DID WHAT WE DO BEST, ADAPT Copyright © 2020 Accenture. All rights reserved.
  • 11. 11 WE CHANGED FROM A… Modernized work force a focus on employee health and well-being high quality & sustainable productivity. with that resulted in Copyright © 2020 Accenture. All rights reserved.
  • 12. 12 Modernized work force a focus on employee health and well-being high quality & sustainable productivity. with that resulted in > INTO A… Copyright © 2020 Accenture. All rights reserved.
  • 13. 13 WE STILL PAIR ON EVERYTHING Co-location was our thing, but by sheer accident, we discovered pairing is perfect when remote. Pairing provides accountability and teamwork, while countering the feeling of isolation. Communicative, balanced teams help ease workload and provide a common support structure. Ultimately, our tools may have changed, but our methodology remained and was reinforced. Copyright © 2020 Accenture. All rights reserved.
  • 14. 14 WHAT DID CHANGE? Our changes came in the tactics and tools not in our strategy or values. Stand-Down The biggest addition was a new end-of-day meeting that replicates the pace of the daily stand-ups. This gives the team a chance to reconnect, assess task problems, and most importantly: give each other the grace to end the day together. No late nights means no burnout. Personal Structure While we always hoped our team members took the appropriate amount of self-care when in the office — it’s even more important when remote. We encourage repeated breaks and that employees practice typical dress and hygiene habits to help improve their mood and ability to work. Remote Software Our modern workforce was already outfitted with laptops as their primary machines, but we implemented a few tools to a higher degree, such as Microsoft Teams, JIRA, and Miro to help virtualize certain tasks such as meetings, project tracking, and whiteboarding. Copyright © 2020 Accenture. All rights reserved.

Editor's Notes

  1. For far too long we have had IT and “THE BUSINESS” We need to shift our focus away from our business partners focused on new features and truly make them product owners This includes helping them understand what it takes to run a system every day By shifting the focus of both the business and IT to focus on how do I deliver capabilities, you are able to build simple business cases for application modernize What we have done at Accenture is steal from the Agile concept of As A, I want, so that to create a way for both business partners and IT engineers to simply understand and building a common language around application modernization In this example, you can see how we create a simple story line that allows both groups a seat at the table.. While this framework only shows an L0 and L1, you can continue to allow for fine gained L2 and below to support your organizations view of products/capabilities.
  2. At Accenture we see the disposition, priority, and value/cost drives all interacting and informing each other. Often depending on your place in an organization, you may be concerned with one or two of these items for a single application, but rarely do we find a team that is thinking holistically about applications. If you want to increase top line growth you might elect do go with a more aggressive disposition of re-image or re-arch, but that takes longer and cost more. If you want to do a data center exit, that might push you towards re-host/re-platform with a high priority…. Net Net, you can not decide on a single piece of this pie in a bubble. You will need to look across all three areas.
  3. In the past we have looked at the disposition as a function of technical goals: Align to tech arch, reduce TCO, or leverage Cloud capabilities. But we need to expand our thinking to include two key goals. First, business agility. This allows us to make commitments to our business partners and work at the speed of our business. Second, is what Accenture calls New IT skills. We believe that 70% of training/learning is on the job learning. The best way to transform your workforce is to have people do Cloud work. Aligning your organizational goals with the cost/time that your organization is willing to invest makes all parts of the organization acknowledge the goals and objectives of any migration/modernization
  4. Another key area we see our clients fail at completing application modernization, is ANALYSIS PARALYSIS. Again leveraging Agile, we created a process that allows us to disposition applications, just in time. Ensure that as we begin to migrate application we are always learning and creating feedback loops that allow us to get better every day