Project managers can improve project outcomes by (1) shaping projects around business architecture, (2) ensuring traceability from early lifecycle stages, and (3) conducting impact analysis to support business agility. This allows making quality, schedule, and results more predictable.

1. 21st Century Innovation: Architecture, Engineering & Project Management Presented by Dr. Peter C. Bahrs bahrs @ us.ibm.com Used with permission

2. Game Changing Innovation Strategies Track A major element of project success relies on increasing the performance of technologies and systems. Often these require new ways of thinking about problems to be defined, alternative design thinking, and innovation in problem definition, execution and collaboration. Given the multiple technological and integration choices faced by project managers, how can project managers use innovation tools and strategies to maximize technology and systems performance in the early stages of project definition, and later in project execution? This track will showcase many of the innovative and creative approaches to enabling innovation, from game changing innovation to incremental improvements in performance. October 21, 2011

3. Abstract Across the globe, all governments are challenged at all levels by i) the needs to modernize in response to regulatory, risk, privacy and security issues; ii) by intense budget pressure and the need to improve collaboration among government entities; and iii) by the need to deliver citizen services with greater flexibility and effectiveness. To successfully meet the challenges governments require improved business agility enabled initially by an optimal relationship between business, users, architects, engineers and project managers. In addition, many advanced features and deliverables should be possible across these life cycles and roles including: Can you quantify the value of your architectures, requirements and engineering deliverables? Are you accelerating development? Can you analyze the impact of change requests? Can you estimate benefit of applying more resources to your project? Do you know when a requirement is complete? What exactly are you governing? Are you able to turn architecture directly into implementation? Do you consider architecture, engineering and project management key business processes? Are the answers to the questions characteristic of your organization? This presentation will discuss an innovative approach that is a game changer for architecture, engineering and requirements management. We discuss how to re-think these processes to enable real business agility, institute an asset management, identify metrics to measure and how to think about impact analysis, identify areas where actionable business architecture is relevant, and indicate how various methodologies should be adjusted to account for these improvements. October 21, 2011

4. Today’s Discussion We will review project management lessons learned and best practices We will review technology, project management and standards trends We will present a vision of new projects and how they should be managed October 21, 2011

5. Key Take Away Points The shape of future projects – business architecture Traceability early in the lifecycle Impact Analysis to support Business Agility October 21, 2011 Project Managers can make quality, schedule and results more predictable by shaping projects around business architecture, traceability and impact analysis.

6. Project Managing architecture & engineering Sources of dissatisfaction October 21, 2011 33% of the budget for large projects is consumed in pre-development activities 60% of development projects start with just paper documents

7. October 21, 2011 Project Managing architecture & engineering Inability to understand and reuse the engineering and architecture deliverables that could be realized by an implementation Continued difficulty in articulating business requirements to development

8. October 21, 2011 Managing architecture & engineering Struggles in dealing with inadequate asset reuse of architecture & engineering deliverables Inability to report metrics of architecture & engineering quality that would support an organization’s business agility goals Development, Testing and Operations provide metrics for decades Line of Code Function Points Defects Defects Closed # Test Cases # Test Cases Passed Up time, Down Time Time to resolve Average incidents What can we track?

9. The Problem-prone Life-Cycle Most projects start implementation with paper Cannot accelerate User Acceptance Cannot accelerate Development, Testing, Operations Need significant “re-coding” of information Problems Architecture Handoff Engineering Handoff Requirements ambiguities Development head scratching Testing and Operations left out of the picture Business Process Management – where and how? Simulations – where and how? Content Lots of JPEG, GIF, but no source Lots of picture source but no model Lots of models but no development acceleration October 21, 2011 Documents and Pictures to Nowhere Models to Nowhere Requirements Architecture Engineering

10. Leveraging effective knowledge management drives improvement in quality, efficiency and cost-effectiveness of architecture and engineering Quick cost reduction potential from 15 to 50% in initial project Increased efficiencies Improved adherence to project methodologies Easy simulation, impact analysis and what-if queries relative to project aspects Loosely coupled process to facilitate modification and reuse October 21, 2011 Paper-bound programs Digital deliverables / assets programs Cost of labor and administration Calendar time for projects/programs The high costs of current paper-based processes

11. Business and IT Alignment October 21, 2011 IT Leaders Business Leaders “ Aligned IT and Business result in DOUBLE the productivity gains of isolated business and IT efforts” Source: London School of Economics – McKinsey survey and analysis of 100 companies in France, Germany, UK and US

12. Architect and Engineer Alignment October 21, 2011 Architect Engineer 20 th Century “Technology Driven” 21 st Century “Business Agility” Lifecycle Architect Engineer Feedback Systems Engineering Architecture Requirements Right  Development Test Deploy Manage Operate Dynamically Adjust Governance Build Results of Business and IT Alignment Development Testing Operations …

13. Dec 2010 IBM Academy Conference Results Projects having difficulty with end to end traceability Projects having difficulty with Impact analysis Projects doing well with creating Assets Project teams getting most skills via on the job training October 21, 2011

14. Dec 2010 IBM Academy Conference Results October 21, 2011 Projects are creating business architectures Projects are staffing appropriate roles

15. IBM Academy Top 10 Best Practices 2006-2009 October 21, 2011 Develop an integrated architecture with a vision for the future. Foresee linkages from IT to your business processes. Create an organizational culture and skills to support SOA (CoE, ICC) Build a scalable infrastructure. Enable operational visibility through governance and service management. Integrate BPM artifacts early in lifecycle Create integrated and collaborative roles Exploit asset reuse and management Addressing non functional requirements is an indicator of increased SOA maturity Major enterprise SOA/BPM transformations may take 5-7 years

16. Common Development Implementation Technologies October 21, 2011 Java JEE VM OS Platform SOA Application Network Business Agility XML 1990s focus 2000s focus

17. How future teams will collaborate October 21, 2011 Business Users IT Implementation Development Business Architecture Testing Operations Architects Engineers PM Asset Management requirements, use cases, architectures, Information, messages, transforms, UI services, rules,, processes, events, dashboards, Impact Analysis Right 

18. It’s about acceleration! development, users and business Focus on actionable assets Focus on full lifecycle traceability for requirements, assets, code Focus on Development Acceleration ! “ Right  ” to Code Focus on User Acceptance Acceleration ! See UI without development Focus on Business Acceptance Acceleration Governance of understandable assets Platform independence October 21, 2011

19. The “Shape” of future project deliverables – what you will manage October 21, 2011 Development Assets Code Configuration Automation Test Unit, Integration, Security, Web, SOA, System, Policy Business Architecture Assets Requirements Rules Services Processes Events User Interface Dashboards Data Use Case Legacy Analysis Architectures Glossary Transformations Business Agility Acceleration Impact Analysis Governance Asset Reuse Ad-Hoc Queries Metrics Change Management Asset Management Tests Service Registry User Acceptance Business Acceptance Right 

20. Metrics to manage October 21, 2011 Process Improvements User Acceptance Improvements Business Architecture Improvements Asset Reuse Improvements Architecture & Systems Engineering Duration Customer UI Experience Business Rules Created Business Rules Reuse # People Feedback to Customers Business Services Created Business Services Reused Creation of Business Architecture (BA) Customer Sessions Business Processes Created Business Processes Reused Traceability Simulations Created Simulations Reused Governance of BA Acceleration Improvements Business Events Created Business Events Reused Use Case Creation Business Rules Code Gen UI Created UI Reused Change Impact Analysis Business Services Code Gen UI Assembled in Portal UI Assembled in Portal Reused Requirements Quality Business Processes Code Gen Use Cases Created Use Cases Reused Document Generation Business Events Code Gen Architecture Models Created Architecture Models Reused Technology Skills UI Code Gen Test Cases Created Test Cases Reused Ad-Hoc Reporting UI Assembled in Portal Reused Dashboards Created Dashboards Reused Ad-Hoc Queries Architecture Models Code Gen Legacy Analysis Created Legacy Analysis Reused BA Asset Repository Test Cases Code Gen Dashboards Code Gen

21. Managing reuse of results – loosely coupled Linked federated assets Overarching architecture contains business concepts Traced to more specific models in business architecture Graph of related concepts Navigate the graph for queries, impact analysis Static Impact Analysis What assets are related? Dynamic Impact Analysis What a assets are related, implemented and what did they cost? Loose coupling but yet interoperable Governance over common information, tool environment and runtime infrastructure October 21, 2011 Requirements Rules Events Services Processes Information Analysis Reports UI Architectures Cost

22. Rule of Content (RoC) October 21, 2011 Productivity Low High Publish - Power User Review - Many people Draft - SME Lifecycle Review, Rate, Feedback Excitement Curve

23. Rule of Assets (RoA) October 21, 2011 Reuse Low High Heavy metadata (low risk, distracting) Automated Metadata (low risk, motivating) Low Metadata (high risk) Submission Excitement Curve

24. Managing Requirements Changing the Game This “may” and This “shall” statements will continue This must be fast -  Build up a palette of reusable business architectures in repository Publish and inform business and users of human readable business architectures e.g. Put the visual in their hands Direct new requirements to be changes to business architectures This process must be like the following process but insert a new human approval after Task 2. http://agency.gov/ba/repo/processABC This thing must use the following the business rules at: http://company.com/ba/repo/rule25, rule22, rule 778 This “should” use the Form located at http://network.net/ba/repo/formLogin Reuse requirements and Business Architecture October 21, 2011

25. Managing Degrees of Difficulty October 21, 2011 Tasks 1 low - 5 high Process Modeling 3-5 Architecture Modeling 2 Service Modeling 3 UI Modeling 1 Event Modeling 2 Rules Modeling 2 Information Modeling 3 Requirements Composing / Management 1 / 1 Dashboards 1 Asset Management 2 Governance 2-4 Legacy Analysis 1…5 Measurements 2 Coding 3 Testing 3 Automation 4

26. Managing and Predicting Costs via Simulation October 21, 2011 Legacy Modernization BPM Architecture Data Driven

27. Mockup Example of Collaboration Results October 21, 2011

28. Experimental Results on Reduced Costs Time to create Claims Processing example with Workbench 1 month Models, tools, skills, code generation, reuse are nicely aligned Time to create Claims Processing without workbench (estimated) 10 months (at best) Would need to build frameworks first, then focus on programming Large client using Smarter architecture & engineering (90% of workbench) Approved government budget includes cost savings of 15%, 25% and 40% over three years Just pre-development activities; doesn’t include development, or, next project benefits Enablement of large systems integrator / large team approach Manage program, guide workbench activities end to end, implement total solution Enablement of small systems integrator / small team approach Specialized skills; can be combined into one role Can be very effective working on small program Can be very effective working as sub-contractor to large integrator Can be very effective working for multiple integrators on multiple projects Asset are key Focus on specific technology Focus on specific models and programming Focus on specific skills Allows investment to be very specific, but still overarching Published results across programs are governed and user feedback Increase quality Tremendous reuse on subsequent projects Technologies are already best of breed at individually producing assets and code Risk mitigation is loosely coupled approach less likely to have large resource costs during integration/test period. Easier to scope RFP responses because you are more aware of costs October 21, 2011

29. Managing Impact Analysis – What if I change people or assets? October 21, 2011

30. Managing Impact Analysis – What touches the data? October 21, 2011

31. Managing Impact analysis – need to know costs October 21, 2011

32. Managing Impact analysis - costs Asset repository has REST / WS interface Can query everything via remote calls Can search down into contents of asset XML Easy to create spreadsheet financial reports end to end Treat entire assets as information set Show me assets by Project, by date, by Asset Type, by Author And the related assets: structural Change Impact analysis And the related costs: financial Change Impact analysis October 21, 2011

33. Qualifying Questions for Business – You should provide answers Setting the stage Can you quantify the value of your architectures, requirements and engineering processes? And deliverables? How much are you accelerating development with actionable assets? Are you having trouble understanding requirements? How have you improved your Business and IT Alignment? Do you have a functional and profitable asset management and reuse program? Accelerating Change in the pre-Development Systems Are you looking for more control in understanding change impacts to the IT systems supporting your business? Would you like to estimate cost benefits of applying more resources to architecture, requirements and engineering? How long does it currently takes to implement system changes, make product/promotional changes to react to market situation or rollout new product? Do you understand when and how your requirements are tested or implemented? Handling client and business acceptance Would you like to demonstrate user interfaces to business users without funding a development lifecycle? Would you like to facilitate the requirements sessions with business users such that they are more understandable to development? Would you like to express your IT implementation in human understandable reports and pictures? October 21, 2011

34. Qualifying Questions for Business – You should provide answers Business back in the driver’s seat Business stakeholders (e.g. marketing, merchandising, revenue management, users) know how the business runs the best. Would you like to allow your business users to amend, test and simulate how the business is supported by technology? How do business stakeholders and IT work together on new or updated promotional offer roll out? Are there bottleneck that could streamline and speed up time to market? Understanding business impact of changes Have you ever had difficulties understanding the impact of changing requirements/ Are you able to understand a real Business Architecture and have the ability to trace requirements, to architectures to engineering designs? Are you able to perform ‘what if’ analysis on how change impacts the behavior of business systems? Can you simulate decision outcomes before deploying changes? October 21, 2011

35. Qualifying Questions for IT – You should provide answers Managing change requests from business units Are you looking for ways to reduce the load on your staff from these requests? Do you understand the requests without a lot of rehashing? Are there initiatives to reduce the cost of evaluating change impact? Do you have internal KPIs / KAIs to meet for making changes? Accelerating Development, Testing and Operations Are you able to readily turn a Business Architecture into an implementation (code, scripts, configurations)? Are you able to accurately determine when a requirement has been implemented? Are you able to provide technology that creates actionable business architecture, or are you stuck on just documents. October 21, 2011

36. Summary The shape of future projects – business architecture Traceability early in the lifecycle Impact Analysis to support Business Agility October 21, 2011 Project Managers can make quality, schedule and results more predictable by shaping projects around business architecture, traceability and impact analysis.