This document provides a transformation strategy for adopting modern engineering practices like Agile and DevOps. It outlines objectives to decrease time to market and improve quality. Improvement ideas are mapped to strategic themes like modern engineering practices and optimizing costs. First steps include setting up a transformation office and conducting pilots. Sample measures, a roadmap, scaling methods and considerations for sustainable transformation and vendor partnerships are also discussed. The focus is on applying Agile techniques, delivering working software frequently through automation, and creating a high performance engineering culture.

1. S AT I S H N AT H – A P R I L 2 0 1 9
TRANSFORMATION
STRATEGY

2. CONTENTS
• Background – Slide 3
• CIO Objectives – Slide 4
• Improvement Ideas – Slides 5 - 6
• Strategic Themes – Slides 7 - 9
• Modern Engineering Practices – Slides 10 - 22
2

3. BACKGROUND
Strengths
• Fortune 1000 company
• xx years of industry leadership in
retail and B2B
• Pioneer in embracing digital
• CDO from e-commerce / startup
background
• Resources with several years of
experience building IT systems
• On Shore – Off Shore model
• Multi vendor strategy (three
vendors)
• Ongoing contract with cloud
provider
Weakness
• Inability to provide real time services (24x7)
• Increasing customer service expectations
• Slow API development cycles
• Slow IT processes
• Shadow IT spend
• Dissatisfaction in IT staff
• High levels of outsourcing in staff-augmentation mode
• Uneven adoption of Agile across the organization
• Limited success with DevOps
• Limited adoption of cloud and SaaS applications
• IT & Digital organizations are not in alignment
Opportunities Threats
• Intense competition from smaller more nimble
competitors
3

4. CIO OBJECTIVES
• Decrease time to market for new applications
• Demonstrate $xx savings
• Improve quality
• Create high performance engineering culture
4

5. IMPROVEMENT IDEAS
ADDRESS WEAKNESS AREAS AND MEET OBJECTIVES
Objective Related Weakness Areas /Threats * Preliminary Improvement Ideas *
Decrease time
to market for
new
applications
• Slow API development cycles
• Slow IT processes
• Limited success with Agile &
DevOps
• IT & Digital organizations are not
in alignment
• Intense competition from smaller
more nimble competitors
• Ongoing collaboration on application requirements to
prevent drift
• Co-locate teams
• Deliver working software frequently to test early and often
• Standardize and reuse development routines
• Automate build, test and deployment tasks
• Automate environment provisioning and configuration
• Streamline change and approval processes
Demonstrate
$xx savings
• Shadow IT spend
• High levels of outsourcing in staff-
augmentation mode
• Limited adoption of cloud and
SaaS applications
• Limited success with Agile &
DevOps
• Reduce shadow IT spend, centralize common services
• Automate IT processes
• Consolidate / retire low value applications
• Develop mutually beneficial partnerships with vendors
• Optimize IT organization – reduce spans / layers, optimize
locations
• Adopt cloud and SaaS applications
• Optimize infrastructure
5(*) – Strongest perceived correlation
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6. IMPROVEMENT IDEAS
ADDRESS WEAKNESS AREAS AND MEET OBJECTIVES
Objective Related Weakness Areas /Threats * Preliminary Improvement Ideas *
Improve quality • Inability to provide real time
services (24x7)
• Increasing customer service
expectations
• Limited success with Agile &
DevOps
• Intuitive designs
• User trainings
• Automated unit, acceptance and regression test
• Automated test data management
• Regression testing for non functional requirements
• Robust monitoring and feedback systems
• Continuous improvement
Create high
performance
engineering
culture
• Dissatisfaction in IT staff
• Limited success with Agile &
DevOps
• Cross functional teams of motivated individuals who self
organize and own their work
• Servant leadership
• Blameless culture
6(*) – Strongest perceived correlation
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7. STRATEGIC THEMES & RELATED IDEAS
Strategic Themes
Improvement
Ideas
1.
Modern
Engineering
Practices
2.
Resilient &
Scalable
Infrastructure
3.
Extensible
Technology
Platforms
4.
Horizontal
Operating
Models
5.
Engaging
Customer
Experiences
6.
Engaging
Employee
Experiences
7.
Optimizing
Costs
Ongoing collaboration on application
requirements to prevent drift
X X X
Co-locate teams X X X
Deliver working software frequently to test
early and often
X X
Standardize and reuse development
routines
X X
Automate build, test and deployment tasks
X X
Automate environment provisioning and
configuration
X X X
Streamline change and approval processes
X X
Reduce shadow IT spend, centralize
common services
X X X
Automate IT processes X X
Consolidate / retire low value applications
X X
Develop mutually beneficial partnerships
with vendors
X X
7
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Focus area for the next section of this
document

8. STRATEGIC THEMES & RELATED IDEAS
Strategic Themes
Improvement
Ideas
1.
Modern
Engineering
Practices
2.
Resilient &
Scalable
Infrastructure
3.
Extensible
Technology
Platforms
4.
Horizontal
Operating
Models
5.
Engaging
Customer
Experiences
6.
Engaging
Employee
Experiences
7.
Optimizing
Costs
Optimize IT organization – reduce spans /
layers, optimize locations
X X
Adopt cloud and SaaS applications X X
Optimize infrastructure
X X
Intuitive designs
X
User trainings
X
Automated unit, acceptance and regression
test
X X
Automated test data management
X X
Regression testing for non functional
requirements
X
Robust monitoring and feedback systems X
Continuous improvement
X
8
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Focus area for the next section of this
document

9. STRATEGIC THEMES & RELATED IDEAS
Strategic Themes
Improvement
Ideas
1.
Modern
Engineering
Practices
2.
Resilient &
Scalable
Infrastructure
3.
Extensible
Technology
Platforms
4.
Horizontal
Operating
Models
5.
Engaging
Customer
Experiences
6.
Engaging
Employee
Experiences
7.
Optimizing
Costs
Cross functional teams of motivated
individuals who self organize and own their
work
X X X
Servant leadership X X X
Blameless culture
X X X
9
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Focus area for the next section of this
document

10. 10
1. MODERN ENGINEERING
PRACTICES

11. CONTENTS
• Overview
• Agile & DevOps
• Leading Practices
• First Steps
• Transformation Org. Structure
• Sample Measures
• Sample Roadmap
• Scaling Methods
• Business Relevance
• Sustainable Transformation
• Vendor / Partnership Strategy
11

12. OVERVIEW
• Apply Agile techniques to change the way we collaborate with our business and our clients on
technology issues
• Deliver working software early and often through automated process and tools (DevOps)
• Ensure software is safe and secure
12
Wall of
Confusion
Wanting
Feature Velocity
Development
• Create effective change
• Add/Modify features
Wanting
Stability
Operations
• Create stability
• Enhance services
Wanting
Fast Value
Business
• Create flexibility
• Improve time to market
Agile Development
Fixes this
DevOps
Fixes this
Wall of
Confusion
Source: DevOps for the Modern Enterprise – Mirco Hering

13. AGILE AND DEVOPS
13
Individuals and
interactions over
processes and
tools
Working
software over
comprehensive
documentation
Customer
collaboration over
contract negotiation
Responding to
change over
following a plan
CULTURE
AUTOMATE
LEANMEASURE
SHARE
AGILE MANIFESTO DEVOPS CORE VALUES
Source: https://www.red-gate.com/blog/calms-relates-database-devops
Source: https://agilemanifesto.org/
Blameless culture –
Failure is normal, Servant
LeadershipReduce Org Silos,
Collaborate, Shared
ownership
Leverage
Tools &
Automation
Where
Possible
Measure
Everything
Small Batches,
Reduce cost of
failure

14. LEADING PRACTICES
Scrum, 56%
Hybird, 14%
ScrumBan, 8%
Scrum / XP
Hybrid, 6%
Other, 6%
Kanban, 5%
Iterative, 3%
Spotify model,
1%
Lean Startup,
1%
XP, 1%
14
AGILE METHODOLOGIES USED ENGINEERING PRACTICES EMPLOYED
16%
17%
25%
31%
32%
35%
36%
37%
45%
54%
64%
75%
Emergent Design
Behavior Driven Development
Sustainable Pace
Collective Code Ownership
Automated Acceptance Test
Test Driven Development
Pair Programing
Continuous Deloyment
Refactoring
Continuous Integration
Coding Standards
Unit Testing
SCALING METHODS USED
0%
1%
1%
3%
3%
5%
5%
10%
19%
29%
RAGE
NEXUS
APM
Lean Mgmt.
Enterprise Scrum
LESS
DAD
Internal Method
Scrum of Scrums
SAFe
SUCCESS MEASURES
Source: 12TH Annual State of Agile Report – VersionOne CollabNet – April 2018
21%
22%
24%
24%
27%
28%
29%
30%
31%
42%
43%
46%
Defects over time
Release Burndown
Cycle Time
Burnup Chart
Iteration Burndown
Defects in Production
Planned vs. Actual Release Dates
Planned vs. Actual Stories Per Iteration
Budget vs. Actual Costs
Velocity
Business Value Delivered
Customer Satisfaction

15. FIRST STEPS TO TRANSFORMATION
15
Set up Transformation Office Portfolio Assessment Identify Pilot Candidates
Maturity Assessment Value Stream Mapping Metrics Baseline
• Mobilize stakeholders
• Setup steering committee
• Secure executive sponsorship
• Identify program ownership
• Set up founding team
• Collect application portfolio data
• Identify portfolio clusters that are
interdependent and may also require
similar treatment e.g. divest
applications, enterprise systems,
digital applications
• Select candidates for initial pilots
e.g. mobile or web application
teams, burning platforms, strong
leadership support, ability to take
out time from feature delivery
• Conduct a maturity assessment for
each of the pilot teams
• Build baseline maturity scores across
capability areas – organization,
governance, CI/CD, operations,
infrastructure, architecture
• Identify gaps / improvement areas
• Identify end to end value stream for
each team selected for pilots
• Identify wait times , bottlenecks,
current process controls
• Leverage maturity assessment
results and the value stream mapping
results to prioritize areas for
improvement
• Build an execution plan
• Identify metrics that matter
• Build current baseline using
existing or historical data

16. TRANSFORMATION ORG. STRUCTURE
16
Agile
Governance
DevOps
Governance
Quality
Assurance
Transformation Management
Test Automation COE
Agile COE
Platform Team
Test
Automation
Automated
App Release
Environment
Provisioning
Change
Management,
Communication
s, Training,
Coaching
PMO/Finance
/Budgeting
Vendor /
Purchasing
Executive Steering Committee
HR
Lead
Architect
Work stream
Leads
Info Security
Security Automation COE
Reference : DevOps for the Modern Enterprise – Mirco Hering

17. SAMPLE MEASURES
17
Measure Definition
Delivery Lead Time Time it takes to go from a customer making a request to the request
being satisfied
- Design Lead Time
- Delivery Lead Time
Deployment Frequency Frequency with which the organization deploys code to production
for the primary service or application being worked on
Time to Restore Service Time taken to restore service for the primary application or service
being worked on
Change Fail Rate % of changes for the primary application or service being worked on,
that resulted in degraded service or required a subsequent
remediation
Cost of Release Effort for all release activities performed for go-live
Longevity of Teams The average duration teams stay together
Source: Accelerate – Forsgren, Humble, Kim
Source: DevOps for the Modern Enterprise – Mirco Hering

18. SAMPLE TRANSFORMATION ROADMAP
Activity M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Q1 Q2 Q3 Q4
Initiate Transformation
Execute on Pilot Implementation
Measure Outcomes, Prove Success,
Gain Buy-In
Implement Wave 1 Apps
Stabilize Wave 1
Launch DevOps Platform
Implement Wave 2
Implement Wave 3
Training / coaching / change mgmt.
Governance / metrics
18Reference : DevOps for the Modern Enterprise – Mirco Hering

19. SCALING METHODS
19
https://www.scaledagileframework.com/implementation-roadmap/https://puppet.com/resources/whitepaper/state-of-devops-
report
5 Stages of DevOps Evolution Scaled Agile Framework

20. BUSINESS RELEVANCE
Train the business on the
techniques and on the
benefits from the
transformation and help them
understand their role in the
transformation journey
Validate that business value is
being delivered from the
transformation at all key
milestones
Contextualize changes to
each team’s unique
circumstances so that the
highest priority items - for the
team and for the business
they support, get addressed
first
Keep changes small and
make recovery from failure
very quick so as to support
business innovation and
experimentation
20Source: 12TH Annual State of Agile Report – VersionOne CollabNet – April 2018

21. SUSTAINABLE TRANSFORMATION
The transformation effort will scale and be sustainable only when the people in the organization
adopt the values and behaviors that make the transformation work. Here are some ideas to scale the
organization culture -
21
Declare your core values explicitly
•Key values that enable a Agile and DevOps transformation effort to scale include bias for action, collaboration, shared ownership, no blaming ,
servant leadership, continuous improvement, no bureaucracy
Encourage behaviors that align with your values
•As examples reward collaboration, make it safe to fail, create opportunities and spaces to share information etc.
Iterate on the values and behaviors that matter as the company grows
Leaders should walk the talk
Hire employees and partners who display cultural alignment
Conduct training on values and behaviors
Reward and recognize the right behaviors
Leaders should spend time to build better relationships with employees
Embrace diversity and inclusiveness
Encourage 360 degree feedbacks

22. VENDOR PARTNERSHIPS
Benefits of Partnering with SI
• Cross industry expertise
• Ability to influence product vendor’s platform
• Access to skilled talent base
• Co-Invest in new technologies
Vendor Contracts
• Flexible scope and fixed capacity / Time and
Material contracts with payments tied to
delivery of outcomes (based on the Definition of
Done) at each iteration
• Focus on overall costs versus daily rates to
allow vendor to balance resource skill levels
22
Partnership Considerations
• Cultural alignment
• Transparency into work practices
• Accountability for both delivery and operations
• Right incentive structures
• Avoid lock-ins
Vendor Evaluation
• Adherence to engineering standards
• Delivery success measures
• Thought leadership
• Relevant experience of the delivery team
• Client recommendations
Source: DevOps for the Modern Enterprise – Mirco Hering