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A Multi-Model Case Study: High Maturity in Development + Services, Together with the Innovation Model (NP4457) by Pedro Castro Henriques, Margarida Gonçalves and Sílvia Rodrigues
QUATIC 2012
5 September 2012
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This article describes how the Capability Maturity Model Integration can be supplemented by a new innovation model in promoting innovations within organizations
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Founded in 1998 and privately owned, we have grown to be
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Our core expertise is centred on two critical levels of our customers’ infrastructure, namely Production Control and Plant Management.
Aeronautic manufacturing industry is facing huge challenge : production ramp up, new launch, etc
Increase use of suppliers has complexified programs management and
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Consider how life sciences manufacturers can deal effectively with dynamic market needs, increased compliance requirements, more distributed manufacturing operations, and rapid product innovation.
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1. Portugal
CMMI in a Portuguese
Multimodel company
Advantages and
Disavantages
Pedro Castro Henriques
Senior Consultant
Strongstep
Silvia Rodrigues
Director
Ambisig
2012-07-06, Coimbra
3. ABOUT Case Study - AMBISIG
AMBISIG is a technological company that respects the highest market demands resorting to Innovation.
In its operation areas like the Geographic Information Systems, Engineering Systems, Quality, Consultancy,
Information Technologies, customized software Development and Outsourcing answers the business needs of the
clients and ensures their visibility strategies and sustainability in the market.
We focus on high quality on our processes obtained a set of certifications and uncommon accreditations that
encompass:
• CMMI DEV 5 – CMMI for Development Level 5 • ISO/IEC 20000 – Information Technology Services
• CMMI SVC 2 – CMMI for Services Level 2 • ISO 9001 – Quality
• NP 4457 – Research, Development and Innovation • ISO 14001 – Environment
• ISO/IEC 27001 – Information Security
.
3
3
5. Presentation Goals – leaner outcomes
Where and how to combine CMMI for Development and CMMI for
Services best practices with an innovation model (NP4457) .
The benefits of having CMMI for Services in a organization which has
high maturity in Development part
The challenges associated with mixing a development culture and ,
while keeping transversal innovation mechanisms.
5
5
6. Multimodel DEV5 + SRV2 + RDI
A multi-model process improvement approach can bring large benefits to
an organization that produces software products and services and
wants to be innovative.
This presentation illustrates this idea by bringing together three specific
models:
The CMMI-DEV constellation (ML5) brings new ways for organizations to
quantitatively manage their processes and quality performance
goals, projects, and innovation.
CMMI-SVC (ML2) works as a catalyst for a service culture.
The Innovation Norm (NP 4457) helps establish a RDI (Research
Development and Innovation) management system across the
organization for continuous innovation.
6
6
7. CMMI DEV5 Context
Process Performance Objectives • Define desired performance based on
Business objectives
Process Performance Baselines • Measure current performance
• Select sub-processes that help to achieve
Sub Process
the objectives
Alternatives
Process Perform.
• Predict performance and outcomes
Models
Sub Process • Control sub-processes critical to
Control achieving the objectives
Causal Analysis • Investigate anomalies found in analyses
7
7
8. Services Context
The CMMI for Services constellation brings
– a new dimension of best practices in service management that
complement the software development life cycle
– works as a catalyzer for a service culture in traditionally
development oriented companies
Some synergies and challenges will be addressed on the way the
development and services worlds can together create value
8
8
9. The Innovation Context
Model (NP 4457) - Types of Innovation
Product (and services) • Marketing
– Taking to the market new or – Implementation of new marketing
significantly improved methodologies involving
products or services significant improvements on
design, product, packaging,
pricing, distribution or promotion.
– Includes significant technical
changes, components,
materials, software or user – Improvements implementation with
interfaces the objective of increasing sales,
improve market satisfaction or
open new markets.
– Service innovation may include
improvements on how the
service is provided, new
functionalities or new services
9
9
10. The Innovation Context
Model (NP 4457) - Types of Innovation
Organization – Process
– Implementation of new business
methods, work planning or external – Implementation of new or
relationships significantly improved
– Implementation of new methods to processes. They can be
organize routine activities or work construction, logistics or
development distribution.
– Implementation of new methods to
distribute responsibilities and – This activity also includes the
decision taking development of new or
– Implementation of new concepts of significantly improved activities
relating with other organizations, new to support the processes (e.g.IT
ways of collaborating or relating systems, accounting systems)
with suppliers
10
10
11. The NP 4457 model and PP and PMC
• Both NP 4457 and CMMI deal with innovation projects that
have to be planned and monitored through its lifecycle
• Both models require previous analysis to classify a project as
an innovation one
• Planning should consider the project innovation objectives and
return expected results (ROI)
• Innovation projects should include information about the
expected improvement as well as the verification and
validation method for the innovation expected
• Knowledge should be spread and shared across the
organization
11
11
12. The NP 4457 model and OPP
• NP 4457 is a more broad model in terms of knowledge
covering also with market innovation
• The OPP practice in CMMI requires a quantitative
approach which is not required in NP 4457
• Both models have assessment methods based on
interviews and artifacts evaluation (objective evidence)
• OPP is internationally adopted through the implementation
of CMMI while NP 4457 is a Portuguese model based on
the Oslo Innovation Manual
12
12
14. Quality Service Needs
Gap that was missing in process oriented organizations with maturity in
development:
– for some type of activities that intrinsically are continuous and
involve less engineering
14
14
15. Innovation Needs
– Another gap or need was to continuously collect new ideas from
people in the organization, filter them and to generate competitive
innovations
Ideas Innovation
idea
?
15
15
16. AMBISIG Case Study
About AMBISIG
Information Systems Company based in Portugal
CMMI Development - Level 5 with a strong quality culture
About 60 persons with mostly engineering background
International clients
They develop solutions mostly for central government,
regional and public organizations
– Their clients are demanding more and more for levels
of service and SLA’s
Always looking for new ways to improve the way they work
Also looking for new ways to find profit and new sources
of income
16
16
17. Ambisig continuous evolution History
2008 2009 2010 2011 2012
1S 2S 1S 2S 1S 2S 1S 2S 1S 2S
DEV CMMI DEV 3 CMMI DEV 5
….
SRV CMMI SRV 2
….
RD&I NP 4457
Milestones
Planning and project monitoring
Change Management
17
17
18. Case Study – Multimodel (DEV5+SRV2+RDI)
Processes that we defined:
Work Management process (for services and projects)
Requirement Management process (for services and projects)
Service establishment process – in order to setup new services in the
company
Service delivery process - ex: receive a request; check it’s in the catalog
of services, solve the request
Ideas Management (NP4457)
Innovation Management (NP4457)
Apart from … traditional – quality control, metrics, configuration
management with some adaptations …
Lessons learned
– Separate project management and service management processes
– its easier
– Innovation processes are independent of the nature of work, but
usually start as an innovation project.
18
18
20. Case Study - Service Management
Service Delivery (SD):
setting up agreements, taking care of service requests, and operating the service system
Incident Resolution and Prevention (IRP):
handling what goes wrong—and preventing it from going wrong ahead of time if you can
20
20
22. RD&I how does this fit with
CMMI development and CMMI
services?
Ideas Innovation
22
22
23. RD&I how does this fit with
CMMI development and CMMI
services?
Ideas Innovation
23
23
24. RD&I how does this fit with
CMMI development and CMMI
services?
Ideas Innovation
24
24
25. RD&I how does this fit with
CMMI development and CMMI
services?
Innovative
Ideas Innovation
25
25
26. RD&I how does this fit with
CMMI development and CMMI
services?
Innovative
Ideas Innovation
26
26
27. RD&I how does this fit with
CMMI development and CMMI
services?
Innovative
Ideas Innovation
Inovative
27
27
28. RD&I how does this fit with
CMMI development and CMMI
services?
Innovative
Ideas Innovation
Inovative
28
28
29. RDI results
Levels of evaluation
Results
RDI
Innovation process
in Project/Services
in Process
in Marketing RDI goals
in Organizational level
RDI projects
Ideas
Individual RDI project
29
29
30. RDI results
Levels of evaluation
Results
RDI
Innovation process
in Project/Services
in Process
in Marketing RDI goals
in Organizational level
RDI projects
Ideas
Individual RDI project
30
30
31. RDI results
Levels of evaluation
Results
Innovation
RDI Evaluate RD&I results
process
in Project/Services
in Process • Finantial results;
RDI goals
in Marketing • Competitive advantages;
in Organizational level • Benefits achieved
•Patents, brands,
RDI projects copyright…
Ideas
Individual RDI project
31
31
32. RDI results
Levels of evaluation
Results
Innovation
RDI Evaluate RD&I results
process
in Project/Services
in Process • Finantial results;
RDI goals
in Marketing • Competitive advantages;
in Organizational level • Benefits achieved
•Patents, brands,
RDI projects copyright…
Ideas
Individual RDI project
32
32
34. Advantages for using CMMI serv
The implementation of processes that are related to maintenance or “very
small” projects where a service philosophy applies better
Services must now follow clear work instructions (and not a project
management methodology)
-The creation of a culture of service where the solutions that are built are
intended for customers with expectations and needs in terms of service
levels
This internal awareness provides a better focus on the usability aspects
and nonfunctional requirements
34
34
35. Advantages for using CMMI serv
-The importance of a systematic feedback from the services to the
development teams provide insight about the utilization and errors in
place (incident, problem and service level management, measurement and
analysis)
―Customers want more attention, more appreciation and more
recognition when making their purchases with you, not less. Customer
service quality is simply essential. Now we have a more clear
continuous improvement of our services‖,
Vasco Ferreira – CEO Ambisig
35
35
36. Advantages to the client
- Services are a continuous source of income (example contract for
maintenance)
a Project has a finishing date and a total cost services have ―no end date‖
-To keep clients fidelity the service has to be well structured
– the more efficient the bigger profit you have
=
With Services area more structured -> revenue is higher and more
constant 36
36
38. Challenges of Multimodel use
DEV5 + SRV2 + RDI
• Manage the risk level of both model implementations
• Integrate the new models with the existing ones in the
organization
• Manage models that cover different areas of the organization
• Distinguish between small improvement and innovation
• Integrate the NP 4457 and CMMI with the existing Ambisig’s
quality models
38
38
39. Success Factors
• Organization strong process framework, definition and
culture
• Detailed planning and very strict follow-up
• Strong change management process
• Strong sponsorship and organization involvement
• Tools integration and development in order to fulfill the
existing models
• Starting point of current processes and develop from
there
• External contribution, overall expertise, dedication and
apolitical
39
39
41. Conclusions for
of this multimodel combination
Users of CMMI dev … by using CMMI serv:
Companies that already have processes in place in line with CMMI for
Development have the cost for this new direction greatly reduced -
specially for CMMI SRV ML2
Adding NP4457 innovation model allows us to go to a new level services
and products innovation – allowing the company to reinvent it self in
order to survive and compete in turbulent times, always knowing their
RD&I ROI
41
41
42. Conclusions for
of this multimodel combination
Users of CMMI dev … by using CMMI serv:
Companies that already have processes in place in line with CMMI for
Development have the cost for this new direction greatly reduced -
specially for CMMI SRV ML2
Adding NP4457 innovation model allows us to go to a new level services
and products innovation – allowing the company to reinvent it self in
order to survive and compete in turbulent times, always knowing their
RD&I ROI
42
42
43. Conclusions for
of this multimodel combination
Benefits adding Services :
– Services became more clear and accountable
– More sources of income (new services arise)
– Customer recognizes easier the added value of services
– The company started to value more services itself, structuring then to help
keeping client “fidelity”
– The more efficient services, the higher is the profit
• Service culture can improve: company, the service department, the
relation with clients … as well as the income/profit
Benefits from adding Innovation models:
– Continuous Innovation is the final throttle to speed up innovation
• Guaranty continuous innovation Independently of where you are in
the organization …
• … one of the most important thing is to build a cultural of
organization wide focused on innovation ($)
43
43
44. Results of Multiprocess
• CMMI brought improvements on the cost, schedule and
quality areas
• NP 4457 introduced a process to search and introduce
innovation – all across the organization
• The implementation of multimodel improved knowledge
share in the organization – and growth in maturity/capacity
• The tools have been improved and brought improvements
on the productivity of the organization
44
44
45. General Conclusions
• It is highly recommended that your organization moves into multimodel
implementation approach, if you have the needed resources .
• The implementation of these models makes innovation better and
deeply treated by using a ideas and innovation management processes -
both services and development.
• Time and effort spent in multimodel implementation is smaller if
made gradually on different areas
• Ambisig moved deeper in the process improvement road with CMMI
level 5 for development and CMMI level 2 for services, with a new vision on
innovative process implementation (NP4457).
• The effort spent by both Ambisig and Strongstep is now paying off
both internally and externally – new projects, more revenue and helping
internationalization (Example: European Space Agency)
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Strongstep is a company specialized in software engineering that contributes to the improvement of software quality in Portugal and in the world We want to induce a positive change in organizations. This will represent a step with a strong, sustainable and innovative way - a strong stepProjects portfolio: Process improvement with CMMI DEV L2, L3, L5, CMMI SRV, TSP/PSP, combining agile/CMMI, Six Sigma, NP4457, Kanban, Scrum, ITIL, PMBOK, ISTQB, RUP
By choosing innovation as the success critical factor in the development of its supply offer, AMBISIG is pioneer in the provision of solutions for the transport infrastructure management with the development of products like RoadVision (Road Infrastructure Management), RailVision (Railway Infrastructure Management) and APMS – AirportPavement Management System), as well as a Geoportal product, a very competitive solution in termsof GIS.Within the quality area has developed the QI solution (Quality Intranet) that has also innovated how to manage/sense and maximize the organizations in the implementation of Quality Management Systems through its transformation into a support system to the continuous operation and monitoring of the certified operations
Por o diagrama de cmmi for services nosso com os niveisMaturity Level 2: ManagedAt maturity level 2, projects establish the foundation for an organizationto become an effective service provider by institutionalizing basicProject Management, Support, and Service Establishment and Deliverypractices. Projects define a project strategy, create project plans, andmonitor and control the project to ensure the service is delivered asplanned. The service provider establishes agreements with customersas well as develops and manages customer and contractualrequirements. Configuration management and process and productquality assurance are institutionalized, and the service provider alsodevelops the capability to measure and analyze process performance.At maturity level 2, projects, processes, work products, and services aremanaged. The service provider ensures that processes are planned inaccordance with policy. In order to execute the process, the serviceprovider: provides adequate resources, assigns responsibility forperforming the process, trains people on the process, and ensures thedesignated work products of the process are under appropriate levels ofconfiguration management. The service provider identifies and involvesappropriate stakeholders and periodically monitors and controls theprocess. Process adherence is periodically evaluated and process performance is shared with senior management. The process disciplinereflected by maturity level 2 helps to ensure that existing practices are retained during times of stress.
Contexto complexidade crescente querer inovar transversalmente por toda a empresa querer ter alta maturidade no desenvolvimento software querer melhorar os serviços e suporte de organização continuamenteQual a solução?Multimodelo Gradualmente ir melhorar nas áreas mais criticas e prioritárias para o negócio
OPP – Organization Performance Management
On top of that the fact that a model was needed that didn’t constrain itself for IT related business but to services in any line of businessesCMMI for Services was a breakthrough in the best practices spectrum. With the process capability aspects provided by the CMMI framework, these new service management best practices filled the gap that was missing in process oriented organizations for some type of activities that are continuous and involve less engineeringContexto complexidade crescente querer inovar transversalmente por toda a empresa querer ter alta maturidade no desenvolvimento software querer melhorar os serviços e suporte de organização continuamenteContar evolução históricaDevelopmentCMMI 3 -> CMMI 5 …Innovation -> RDI …Services-> CMMI 2 …
Contexto complexidade crescente querer inovar transversalmente por toda a empresa querer ter alta maturidade no desenvolvimento software querer melhorar os serviços e suporte de organização continuamenteContar evolução históricaDevelopmentCMMI 3 -> CMMI 5 …Innovation -> RDI …Services-> CMMI 2 …
Three (3) Services Unit will be appraised1 - Unidade de Gestão Aplicacional - Operational Management Services2 - Unidade Tecnológica – Hosting services and Housing Services3 - Unidade de Formação – Training ServicesLinhas de serviço na AmbisigA gestão dos serviços é efectuada por tipo de serviço e não a nível individual de entrega. Isto deve-se ao facto de existir uma uniformização na forma como os serviços são executados internamente e disponibilizados ao cliente.A descrição dos serviços prestados pela Ambisig ficará descrita no catálogo de serviços disponível na Intranet.
ServiceDelivery (SD):settingupagreements, takingcareofservicerequests, andoperatingtheservicesystemService delivery – example if someone calls and ask for real-time support (is that a service we do? Is it time registered and billed?) -> if not, then maybe we should create that serviceTalk about process mapping Alternatives:-To have a work management process that combines Services and Project Management (our first choice) -> too much exceptions need to be written in a single process – it can get confusing-To have separated Services and Project Management process and then join in a work management process (our choice now)
Service delivery – example if someone calls and ask for real-time support (is that a service we do? Is it time registered and billed?) -> if not, then maybe we should create that serviceIRP Incident Resolution and Prevention (process area)
Service delivery – example if someone calls and ask for real-time support (is that a service we do? Is it time registered and billed?) -> if not, then maybe we should create that serviceIRP Incident Resolution and Prevention (process area)
Service delivery – example if someone calls and ask for real-time support (is that a service we do? Is it time registered and billed?) -> if not, then maybe we should create that serviceIRP Incident Resolution and Prevention (process area)
For organizations that already have processes derived from CMMI for development practices there’s are clear advantages to consider that resolve long lasting questions, namely:
Customers want to continuously manage services and customer expectation … For example response time:Time to correct a bug or malfunctionTime to implement a new requirementIn the case of Ambisig show case– it led to a breakthrough: a new area of training services was created a new mechanism to make it easier to create new servicesA Monthly Services meeting was created:For continuous services improvementTo articulate with client to have more feedbackFor example maintenance was not properly organized “it was a poor cousin inside the company” started to get more visibilityCustomers want to be sure they get maximum value for the money they spend. Customers want that you continuously manage services and customer expectation … In example response time – to correct a bug/or malfunction - to implement a new requirementIn the case of Ambisig – it lead to a breakthrough a new are a of training services was created a new mechanism to make it easier to create new services
-A better transition from the project phase to the service phase (example: maintenance service) where’s it’s important to have in mind the necessary steps for a smooth service setup (change, configuration and release management)http://www.upyourservice.com/learning-library/customer-service-vision/in-challenging-times-service-matters-mostCustomers want firmer guarantees that their purchase was the right thing to do. In good times, a single bad purchase can be quickly overlooked or forgotten, but in tough times, every expenditure is scrutinized. Provide the assurance your customers seek with generous service guarantees, regular follow-up and speedy follow-through on all queries and complaints. Customer service quality matters more than you think.
More income – raise on billingEx: new “chargeable” services areas: training and coachingCompany realized it was “giving away free” some servicesService reports are now sent to the customerCustomer started to appreciate more and recognize the value added of the provided servicesIfyouhave 100 clients in servicesyoujustdontloosethemall …. Its more constant
Some challenges arise implementing of service management practices in traditionally development companies:
Service contrast with project – possibility of a steady and continuous incomeTalk about process mapping Alternatives:-To have a work management process that combines Services and Project Management (our first choice) -> too much exceptions need to be written in a single process – it can get confusing-To have separated Services and Project Management process and then join in a work management process (our choice now)Service delivery – example if someone calls and ask for real-time support (is that a service we do? Is it time registered and billed?) -> if not, then maybe we should create that service
Less disruptive moments in the organization giving more time for consolidation. It integrates well with CMMI expanding the OPP process area.