itSMF - Foundations of Lean IT

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This is a presentation I gave to the Ohio Valley LIG of the Service Management Forum in April of 2010.

I focused the presentation on three main themes:
1) The refinement or removal of non value-added processes in IT (the "big" idea of Lean IT)
2) The institution of metrics (if you don't know where you are now, how do you know where you're going in the future?)
3) The enhancement of communications (manage projects throughout their lifecycle using normalized interfaces)

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itSMF - Foundations of Lean IT

  1. 1. Presented by Matt Blair MSISA, Dir. of Prof. Development Indiana University
  2. 2. Agenda 1 Overview of Lean IT • Impacts many internal and external customers of the IT value-stream. • Cuts back the waste of outgrown information technology 2 Benefits of Lean IT • Allows delivery of a more efficient, higher-quality product. • Promotes companies’ CMMI, pushing for more efficient approaches. 3 Example of Implementing Lean IT • Integrates IT resources more evenly within a company. • Refines corporate governance to formalize processes. 4 Next Steps • Take Advantage of a widely-accepted, repeatable process. LEAN IT • Reference additional resources for deeper research. Overview Benefits Example Next Steps
  3. 3. Lean IT Impacts many Internal and External Customers of the IT Value-Stream BUSINESS PRIMARY VALUE STREAMS Supply Chain E-Commerce Manufacturing IT SERVICE SECONDARY VALUE STREAMS Application Perf. Management FINANCE SUPPORT Data Backup HR PROD. Service Catalog LOGISTICS By mapping the interactions of the business between value streams, analysts can determine which processes LEAN IT do not add value to the final product, and therefore should be removed. Overview Benefits Example Next Steps
  4. 4. Lean IT Cuts Back the Waste of Outgrown Information Technology Overproduction / Rework Wasted Motion Overprocessing • Early fulfillment of requests • Changes in business requirements • Unprioritized task processing • Unnecessary functionality • Application bugs, errors • Unplanned task switching Wasted Inventory Wasted Time Wasted Intellect • Maintenance backlogs • Key resources aren’t available • Limited cross-training • Partially completed requests • Idle developers • Poor usage of resources Non-Value Added Motion / Repeat Processing Problems LEAN IT • Anchoring to out-of-date processes • Ignoring foundational errors • Unnecessary documentation • Trading off for short-term gains Overview Benefits Example Next Steps http://www.mckinsey.de
  5. 5. Lean IT allows you to Deliver a More Efficient, Higher Quality Product TIME-TO-MARKET PRODUCT QUALITY COST of RESOURCES  Efficient processes lead  Decreased errors  More effective use of to faster turnaround. provides a higher quality resources leads to  Increased agility makes it product, increasing brand increased availability. easier to respond to market reputation.  Less paperwork leads to needs.  Straightforward process less working hours and  Competitive edge helps design eases lesser staffing needs. companies stay ahead of manufacturing woes. competition. By enhancing the repeatability of IT processes, organizations can leverage added efficiencies for more effective resources to generate a higher quality output. LEAN IT Overview Benefits Example Next Steps
  6. 6. Organizations and Processes with Low CMMI’s can Experience the Most Benefits Lean initiatives can • Organizational innovation & deployment advance organizations Optimized • Causal analysis and resolution with lower maturities to refine processes and progress their maturity. Quantitatively • Highly repeatable processes Managed • Performance measurement, benchmarking • Process standardization Defined • Infrastructure integration • Focus on process enhancement Process integration through the • Agreements and vendor contracts use of standardized interfaces Managed • Project planning, requirements management increases cross-division interaction. Lean documentation makes LEAN IT • Unpredictable processes maintenance more direct, Initial • Reactive support, poorly controlled allowing more time to be spent on prescriptive development. Overview Benefits Example Next Steps http://www.wikipedia.com
  7. 7. Application Maintenance and Development is a High-Risk Area of the IT Value-Chain The Relative Cost of Correcting Errors found in Different Development Stages 80x -- 80x Relative Cost to Fix Defect The frequency of errors can be minimized through requirement confirmation, The cost of correcting an -- 60x (multiplier) iteration and passing error increases as a product procedural gates. progresses through the application development -- 40x lifecycle. By focusing on the 15x -- 20x foundations of requirements, errors can be 2x 8x addressed before they are 0x designed, tested and deployed prior to being confirmed. LEAN IT Overview Benefits Example Next Steps
  8. 8. Integrate Segments of the Application Development Process with Collaborative Tools Requirements Software Analyst Architecture Designer Tool integration increases interaction between otherwise de-normalized segments of the development Change Documentation Environment Project process, ensuring consistent Manager Implementer communication. Quality Mgmt System LEAN IT Testing Enterprise Architecture Tester Architect Overview Benefits Example Next Steps http://www.ibm.com/software/awdtools/rup/
  9. 9. Refine Corporate Governance to Formalize Processes Application maintenance % of Total Time Spent in Processes contributes to process inefficiencies because of A US Bank A European Retailer the misalignment of project goals and documentation App. 35 65 45 65 requirements. Maintenance App. 25 35 30 35 Development By decreasing administrative work and Total 60 100 75 100 increasing processing power, companies have -40 -25 seen large reductions in resource consumption. LEAN IT Overview Benefits Example Next Steps http://www.mckinsey.de
  10. 10. Take Advantage of Universally Repeatable Processes Move development to an organization with core competency to increase production efficiency. Design Test Deployment Company Customer Offshore/ Outsource Requirements Use Standardized, well-known Pass a higher quality product documentation makes it onto the customer for actual LEAN IT easy to push defined use, increasing value for the requirements to an outside end-user. party for development. Overview Benefits Example Next Steps
  11. 11. Many Resources are Available for Baselines and Further Research Best Practices / Process Improvement Methodologies Six Sigma ITIL Application Focuses on the cause of Illustrates concepts and Development defects, rather than process policies for recommended duration minimalization. Applies approaches to IT management. Agile / Lean statistical management to Used to help progress maximize product quality. organization’s technological Emphasizes the use of CMMI, maturity. RUP and PMBOK to increase multidisciplinary communication and decrease setup time for CMMI COBIT projects. Pushes for process Best practices for IT improvement through management to match metrics maturitization of projects or with processes to achieve divisions. Doesn’t directly compliance and maximize return address the impact of waste. on investment. LEAN IT Overview Benefits Example Next Steps

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