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DevOps and the Case for ROI to Executives

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DevOps and the Case for ROI to Executives

  1. 1. © IBM Corporation DevOps: Transforming software delivery for enterprise innovation and real business outcomes DevOps and the Case for ROI to Executives Peter Spung Integration Executive, DevOps Deploy and UrbanCode, IBM Cloud Valerie Scott Manager of the Shared Services Division at HM Health Solutions April 23, 2015
  2. 2. © IBM Corporation DevOps: Transforming software delivery for enterprise innovation and real business outcomes Agenda  Introductions  Motivation: – Delivering software is hard, downtime is costly. DevOps is hot, is a way forward, is real, and delivers real business outcomes  Some investment required! – DevOps key technical practices, and org change leadership.  A case study and dialog with Val, a change agent who has embraced DevOps – Key practices adopted in her org’s DevOps journey at HM Health Solutions – Leaders’ role in selling the stakeholders on ROI, embracing the practices, and leading org change  Q&A 2 Joe Wochna Valerie Scott Peter Spung
  3. 3. © IBM Corporation DevOps: Transforming software delivery for enterprise innovation and real business outcomes Delivering software is hard, required, and the execution gap is large 3 Closer look at the Outperformers… • 63% of them use collaboration between Dev and Ops to more effectively deliver software and improve outcomes • 10 times (yes, 10x, an order of magnitude) more likely to apply Agile and DevOps Continuous Delivery than Average performers or Underperformers We’ve all faced similar problems. However, software delivery doesn’t have to be like this… even higher in Financial Services (76%), Retail (65%), Telecom (64%), Travel & Transport (64%)
  4. 4. © IBM Corporation DevOps: Transforming software delivery for enterprise innovation and real business outcomes Google Trends 4
  5. 5. © IBM Corporation DevOps: Transforming software delivery for enterprise innovation and real business outcomes Google Trends: Agile Development and DevOps 5
  6. 6. 6 December, 2014
  7. 7. 7 December, 2014 Download your copy here: https://ibm.biz/costofdowntime
  8. 8. © IBM Corporation DevOps: Transforming software delivery for enterprise innovation and real business outcomes The Returns are real. And Investment required in Key Practices! Key DevOps Technical Practices – Continuous Integration, ala Duvall et al – Continuous Delivery, ala Humble et al – Shift Left Testing, Test Automation and Test Driven Development – Automated Environment Provisioning …and a growing list of best practices… …that are assessed to fit critical pain points in your software and enterprise IT org… Org Leadership Practices  (establish the DevOps Technical Practices and skills) – The Three Ways and The Phoenix Project DevOps approach, ala Gene Kim et al – Establish an actionable governance feedback loop on:  Technical Practice proficiency, and growing org adoption • Org exec sponsorship, org change leadership, and DevOps adoption among app teams. • Quick Win Pilot projects to prove out:  Key DevOps Technical Practices – ROI and value to managers and executives • Due to success , manage a growing backlog of demand 8 Real Returns for Real Clients, a few examples among many: – Fidelity Worldwide Investments reduced deployment times from 3 days to 2 hours, achieved an approved compliance and audit posture, and saved $2 million in the first year alone over manual deployments – Amica Insurance reduced non-code related build failures from 20% to less than 1%, reduced web service deployment from several days to 2 hours, and reduced dev setup wait time from 1.5 days to 25 minutes – Silverpop, a SaaS digital marketing firm, reduced deployment from 12-18 people for 8 hours executing 400 manual steps to 5 minute automated deploys with 0 down time, saving over $1 million per year – Nationwide Insurance implemented a DevOps approach and improved quality 50%, reduced downtime 70%, improved teams’ productivity into the top quartile, and achieved a CMMI Level 3 rating …including those returns realized, and practices adopted, by Val and HM Health Solutions, as she’ll describe…
  9. 9. Case study and Q&A with a change agent and DevOps org leader: Val Scott 9 Please note: This portion of the video/audio file and the contents herein are owned by HM Health Solution Inc. or its affiliates (HMHS). This presentation was developed by HMHS for the private use of persons who are authorized to view its contents. Any copying or distribution of these materials is prohibited without HMHS’s express written consent. HMHS is providing this video/audio presentation as an informational service only. This presentation is provided in an “as is” format without warranties of any kind, expressed or implied, including but not limited to warranties of title, non-infringement or implied warranties of merchantability or fitness for a particular purpose. HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved.
  10. 10. 10 HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved. Case Study: HM Health Solutions Approach to Enterprise DevOps ROI Shifting left in application development offers a faster return on investment by allowing developers to catch errors earlier in the software development lifecycle. •Benefits:  Improves Software Quality  Cuts Time Between Releases • Industry statistics have suggested that: 58% of defects originated in earlier lifecycle activities. 70% of all IT projects are not successful. 30-40% of all IT work is re-work. Shift Left Approach provides Quality Improvements and Lower Development Costs: • Reviews and checks take place as early as possible in the project delivery. • This ensures the trapping of defects on the left hand side of a typical project lifecycle. Shift Left philosophy is defect prevention rather than defect detection in the delivery lifecycle of a project or program of work and contributes to lower costs of software delivery. Strategy of Shift Left
  11. 11. 11 HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved. Case Study: HM Health Solutions Approach to Enterprise DevOps ROI Test-driven developmen t ▪ IBM UrbanCode Ubuild and UDeploy – Automated Unit and Integration Testing is performed with immediate feedback on failure Show failed tests Specify required improvements in code ▪ Test cases developed along requirements ▪ Unit/module testing concurrent with desktop development ▪ Teams review code to ensure integrity ▪ IBM UrbanCode UBuild code is integrated into main version continuously, with build automation processes in place ▪ Automated regression tests in pre- production, along with final QA/UAT ▪ IBM UrbanCode UDeploy allows for Push-button ability to deploy into production Show code conflicts Show build errors Automated Build and Test Activities and Quality Standard Checks Put code in review queue Automated Build with Code Commit and Dependency management Show errors from pre-production Automated Deploy Packages to pre-production 1 Automated testing 2 Streamlined code review 3 Automated deployment 5 Continuous integration 4 Leveraging DevOps and IBM UrbanCode Suite of Tools
  12. 12. 12 HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved. Case Study: HM Health Solutions Approach to Enterprise DevOps ROI 26% 47% Defect Count Withdrawn Testing Production 27% 100% 2014 YTD Defect % Calculating the Average Hours to Repair Defects in Test and Production Baseline number of hours to repair defect: • On average it takes ~ 30 hours to resolve a single test defect • On average it takes ~ 120 hours to resolve a single production defect Establish a baseline for measurement: 1. Determine how to measure the current environment and defect costs. 2. Understand contributing costs to the amount of time spent in repairing defects. 3. Establish the average hour spent in repairing defects in the environments. Your mileage may vary !
  13. 13. 13 HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved. Case Study: HM Health Solutions Approach to Enterprise DevOps ROI HM Health Solutions Relative Savings and Efficiency Gains 30 120 -75% Relative Hours to Repair Programmer Defects Per Environment Production Test 55 10 -82% Automation Efficiency Gains in Minutes New Process Old Process 3 1 -67% Release Process Resource Demands Old Process New Process Your mileage may vary !
  14. 14. 14 HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved. Case Study: HM Health Solutions Approach to Enterprise DevOps ROI 2014 2015 Q3 Q4 Q1 Q2 Q3 Q4Activity 1/13/2015 Wave 5: Workflow Vendor Wave 4: Message Broker Wave 3: Mainframe Wave 2: Mainframe Proof of Concept Wave 1: WebSphere DevOps Pilots Wave 6: Client Desktop 6 Java Apps 238 WebSphere Apps 107 Mainframe Apps 43 Message Broker Apps 26 Workflow Vendor 26 Client Desktop Mainframe POC & Pilots HM Health Solutions Roadmap 2014-2015
  15. 15. 15 HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved. Case Study: HM Health Solutions Approach to Enterprise DevOps ROI • Assess your current environment to find the largest constraint • Determine the scope of your maturity level goal • Develop Business Case and seek management approval • Proof of Concepts • Identify savings opportunities and determine measurement • Prioritize the target environment • Pilots • Roadmap • Onboard, track, and compare before and after picture • Defect and Testing practices • Development and Release process • Resource allocations • Ring fence • Track savings and real efficiency gains during rollout • Track ROI on monthly basis Tips on Getting Started with Enterprise DevOps and Rollout
  16. 16. 16 HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved. Case Study: HM Health Solutions Approach to Enterprise DevOps ROI • Develop Business Case and seek management approval • Proof of Concepts • Lessons Learned: • Test cases should include reports on metrics • Inventory and prioritize the target environment • Roadmap • Lessons Learned: • Develop a structured process for tracking and measuring, along with a glossary of automation terms. • Onboard, track and compare before and after picture • Defect and Testing Practices • Lessons Learned: • Use the Pareto principle (80-20) for the baseline defect measurement. (What is a programmer error?) • Ring fence • Track savings and efficiency gains during rollout • Lessons Learned: • Methodically step through the savings with the onboarding team on efficiency gains. Quickly report the gains when found. • Track ROI on monthly basis • Lessons Learned: • Don’t be afraid to roll up your sleeves and dig into the data. There is a gold mine out there. Lessons Learned In Calculating and Managing the DevOps ROI
  17. 17. 17 HM Health Solutions Inc. Proprietary and Confidential Information. All Rights Reserved. Case Study: HM Health Solutions Approach to Enterprise DevOps ROI Leveraging (3) Key Industry Components for Enterprise DevOps ROI • DevOps  Continuous feedback integration and delivery.  Quality software development practices that manages the software packages during the development process.  Increases our ability to shorten our delivery times. • Shift Left Approach  Shifting software testing sooner in the software delivery lifecycle, allowing developers to catch defects sooner.  Fastest way to realize one’s return on investment based on relative cost or repair in production. • Automation  Leveraging the automation gains from IBM Urbancode Suite.  Achieve a Managed Environment maturity level or higher with:  Scheduled, standard and automated processes  Allows for an increase in the delivery cycle.
  18. 18. © IBM Corporation DevOps: Transforming software delivery for enterprise innovation and real business outcomes www.ibm.com/devops
  19. 19. © IBM Corporation DevOps: Transforming software delivery for enterprise innovation and real business outcomes Links to more information  IDC reports on DevOps and the Cost of Downtime, and DevOps maturity and adoption  Dibbe Edward’s blog on enterprise DevOps best practices for executives  Peter Spung’s blog – ditto for managers  More on Knight Capital and their App Deployment related trading losses  IBM IBV Software Edge study: software innovation equals business success  IBM DevOps web site  DevOps for Dummies eBook  DevOps Deploy web site: application release & deployment automation web site  Application Release & Deployment for Dummies eBook  Whitepaper on ROI: The Value of Deployment Automation  ROI Calculator: calculate the benefits and return of deployment automation using IBM UrbanCode Deploy  Results and ROI from client case studies: – Fidelity Worldwide Investments – Amica Insurance – Silverpop – Nationwide Insurance – IBM Global Technology Services – Numerous client case studies, quotes, testimonials and facts about IBM UrbanCode app release and deploy solutions, and IBM DevOps solutions from TechValidate’s independent research  Blogs with more resources on ROI: – Summaries of client payoffs here and here. – How to calculate the returns, which are often large enough to make the case – The investments in know-how required, and how to go about acquiring and learning it 19
  20. 20. © IBM Corporation DevOps: Transforming software delivery for enterprise innovation and real business outcomes Except were otherwise noted, © Copyright IBM Corporation 2015. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Rational, the Rational logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others. www.ibm.com/devops

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