Building a Compelling Business Case for Continuous Delivery
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Increasingly, companies strive to deliver better customer experiences by delivering higher quality software, faster. Building a business case for faster delivery is often essential to gaining the support of the organization. Successful business cases for Continuous Delivery (CD) improvements span Development, Operations, and the Business, and seek to simplify, improve, and streamline the application delivery process through standardization and automation. Hear from Kurt Bittner, Principal Analyst at Forrester and Andrew Phillips, VP of Product Management at XebiaLabs in a webinar that will help you understand how to create a successful business case for CD, the potential return of investment, how to measure the benefits and how to track these benefits over time. The webinar will highlight: How to identify opportunities for improvement in your value delivery stream How to estimate the value of these improvements that reduce cycle time by removing bottlenecks and barriers to delivery How CD can reduce the cost of compliance and the cost associated with security risks. How to estimate the value of CD creates by growing or accelerating revenues Examples of the benefits organizations have achieved through CD
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Building a Compelling Business Case for Continuous Delivery
- 1. Building a Compelling Business Case for Con2nuous Delivery October 6, 2015 Kurt Bi3ner, Forrester Research Andrew Phillips, XebiaLabs
- 2. 2 Housekeeping ▪ This webinar is being recorded ▪ Links to the slides and the recording will be made available aGer the presentaHon ▪ You can post quesHons via the GoToWebinar Control Panel
- 3. 3 Agenda ▪ IntroducHon ▪ Bridging the SoGware Delivery Divide ▪ Building a Compelling Business Case For ConHnuous Delivery ▪ Q & A
- 4. 4 Presenters Andrew Phillips @XebiaLabs ▪ Lots of enterprise soGware development on high-‐performance systems ▪ Been on both sides of the “Dev…Ops” fence ▪ Regular presents at meetups, conference etc. Kurt Bi>ner @ksbi3ner ▪ Kurt Bi3ner is a Principal Analyst serving ApplicaHon Development and Delivery professionals. ▪ His research focus in on helping organizaHons improve their speed and quality of delivery while reducing cost and improving business performance. He focuses primarily on ConHnuous Delivery and DevOps pracHces.
- 5. 5 ConnecHng the dots for Con2nuous Delivery at enterprise scale VISIBILITY AUTOMATION CONTROL G l o b a l L e a d e r s D e l i v e r S o G w a r e w i t h X e b i a L a b s
- 6. 6 VISIBILITY AUTOMATION CONTROL XebiaLabs Solu2ons Release Orchestra2on Deployment Automa2on Test Analy2cs Orchestrate, automate + view release pipelines Automate deployment of complex applicaHon releases Analyze test results across mulHple test tools ConnecHng the dots for ConHnuous Delivery at enterprise scale G l o b a l L e a d e r s D e l i v e r S o G w a r e w i t h X e b i a L a b s
- 7. 7 Faster 2me-‐ to-‐market 83% Reduc2on in cycle 2me 90% 48% Produc2vity improvements Organiza(ons with high performing DevOps [teams] were 2.5X more likely to exceed profitability, market share and produc;vity goals … . Gene Kim, Author of The Phoenix Project …Con(nuous Delivery…enables Agile to finally deliver on its promise to business leaders: faster delivery of genuine business value”… Kurt Bi3ner, Senior Analyst, Forrester Research Companies are seizing the Con2nuous Delivery Opportunity
- 8. 8 OperaHons Development Architects Release Managers IT professionals are looking to ▪ Standardized, repeatable & automated release processes ▪ Reduce risk (manual errors, compliance + IT governance) ▪ Visibility across the enHre soGware delivery process Thing > Legacy Web Mobile Microservice IoT Cloud On-‐Prem Mainframe Apps Environments Tools across…
- 9. 9 The SoYware Delivery Divide Bleeding edge startup / 2ger team § Large-‐scale service landscape § MulHple teams/ organizaHon-‐ wide iniHaHve § ExisHng complex applicaHons § Diverse skill levels § Technical & business scope Enterprise ➡ Tradi(onal releases ➡ Con(nuous Delivery ▶ Enterprises want to emulate startups + adopt new pa3erns ▶ But recognize that they are a long way away from that today § Small projects § Individual teams § Greenfield § Highly skilled § Technical scope
- 10. 10 Bridging the SoYware Delivery Divide Bleeding edge startup / 2ger team § Large-‐scale service landscape § MulHple teams/ organizaHon-‐ wide iniHaHve § ExisHng complex applicaHons § Diverse skill levels § Technical & business scope Enterprise ➡ Con(nuous Delivery at Enterprise Scale ▶ Enterprises want to emulate startups + adopt new pa3erns ▶ But recognize that they are a long way away from that today § Small projects § Individual teams § Greenfield § Highly skilled § Technical scope Strategy: § Deliver enterprise-‐scale funcHonality § Provide visibility into the release process § Ensure easy adopHon/use § Complement exisHng tools
- 11. 11 From Theory to Prac2ce ▪ The ConHnuous Delivery story and the promised benefits are compelling ▪ Addresses business-‐relevant as well as day-‐to-‐day technical challenges ▪ Convincing the CFO requires more than a compelling story and consensus from the team that this is “a good thing to do” ▪ Challenge: how to present a credible business case to allow you to move from small experiments to enterprise-‐wide ConHnuous Delivery iniHaHves?
- 12. © 2015 Forrester Research, Inc. Reproduction Prohibited
- 13. © 2015 Forrester Research, Inc. Reproduction Prohibited Building a Compelling Business Case For Continuous Delivery Kurt Bittner, Principal Analyst
- 14. © 2015 Forrester Research, Inc. Reproduction Prohibited 14 Application Delivery Speed is a Force Multiplier Costs Benefits Application Delivery Speed Cost Revenue • Retooling • Retraining • Culture ∆
- 15. © 2015 Forrester Research, Inc. Reproduction Prohibited 15 Estimating Costs and Benefits Magnitude of Impact Intangibility Reduced Labor cost Improved Goodwill Reduced Defects Reduced Operating Cost Improved Competitiveness Most business cases focus here The biggest benefits are here Reduced Scrap & Rework Reduced Production Incidents Improved Revenue Improved Delivery Speed MTTR
- 16. © 2015 Forrester Research, Inc. Reproduction Prohibited 16 Primary Sources of Application Delivery Cost and Waste Failed deployments Idea proposed Understand Needs & Invent Solutions Functional Testing Deploy Solution Production Support Load, Performance, Security, … Testing UAT/ Exploratory Testing Release Decision Wrong solution Scrap and rework Too much manual effort Develop, Commit & Build Too much manual effort Provision Environments Production Incidents Too much manual effort Too many meetings Time spent waiting
- 17. © 2015 Forrester Research, Inc. Reproduction Prohibited 17 Functional Testing Load, Performance, Security, … Testing UAT/ Exploratory Testing Develop, Commit & Build Provision Environments Reduced manual effort Idea proposed Understand Needs & Invent Solutions Deploy Solution Release Decision 20-80% of Production Incidents Are Due to Configuration Errors Production Provision Environments TestingDevelopment Manual environment configuration leads to “drift”. Drift causes failures. Standardization (“infrastructure as code”) + automation eliminates “drift”.
- 18. © 2015 Forrester Research, Inc. Reproduction Prohibited 18 Idea proposed Understand Needs & Invent Solutions Deploy Solution Release Decision Benefits of Standardizing Environment Provisioning Functional Testing Production Support Load, Performance, Security, … Testing UAT/ Exploratory Testing Develop, Commit & Build Provision Environments Fewer Production Incidents Reduced manual effort Reduced time spent waiting 2 1 3 (benefit based on actual effort reduction)
- 19. © 2015 Forrester Research, Inc. Reproduction Prohibited 19 Functional Testing Load, Performance, Security, … Testing UAT/ Exploratory Testing Develop, Commit & Build Provision Environments Reduced manual effort Idea proposed Understand Needs & Invent Solutions Deploy Solution Release Decision Production Incidents Are VERY expensive Production Support Fewer Production Incidents • Data center downtime cost across industries: ~$5,600/minute • The avg incident length is 90 minutes; avg cost/incident: ~$505,500. http://www.eweek.com/c/a/IT-Infrastructure/Unplanned-IT-Downtime-Can-Cost-5K-Per-Minute-Report-549007 LOST REVENUE*= (GR/TH) x I x H GR = gross yearly revenue TH = total yearly business hours I = percentage impact H = number of hours of outage http://www.evolven.com/blog/downtime-outages-and-failures-understanding-their-true-costs.html *Most organizations with customer-facing applications have more accurate models for revenue/loss prediction
- 20. © 2015 Forrester Research, Inc. Reproduction Prohibited 20 Develop, Commit & Build Provision Environments Idea proposed Understand Needs & Invent Solutions Release Decision Production Support Functional Testing Load, Performance, Security, … Testing UAT/ Exploratory Testing Deploy Solution Reducing Costs Caused By Deployment Failures Failed deployments result in unplanned work: • Time and effort spent diagnosing problem & determining remediation steps • Rolling back failed deployments • Remediating related production incidents (don’t forget to include cost of outage) Business Case impact: based on historical data, determine: • average cost per failure • failure frequency
- 21. © 2015 Forrester Research, Inc. Reproduction Prohibited 21 Develop, Commit & Build Provision Environments Idea proposed Understand Needs & Invent Solutions Deploy Solution Release Decision Production Support Manual Testing Is Also VERY Expensive (and not very effective) Problems with manual testing: • Slow • Too expensive to do for each build – diseconomies of scale • Coverage typically not very high • Manual errors and inconsistencies Functional Testing Load, Performance, Security, … Testing UAT/ Exploratory Testing Solution: • Increase the amount of automated API-based testing by shifting some manual tester resources to “Test Development Engineer” • Net cost approximately zero • Over time, manual testing costs go down Business Case impact: • Increased developer productivity • Reduced production incidents
- 22. © 2015 Forrester Research, Inc. Reproduction Prohibited 22 Functional Testing Load, Performance, Security, … Testing UAT/ Exploratory Testing Provision Environments Idea proposed Understand Needs & Invent Solutions Deploy Solution Release Decision Production Support Develop, Commit & Build Manual Build Processes: inconsistent and hard to control Problems with manual builds: • Slow • Inconsistent Solution: • Centralized self-service CI service Business Case impact: • Increased developer productivity • Reduced headcount on teams (or more resources to write app code)
- 23. © 2015 Forrester Research, Inc. Reproduction Prohibited 23 Develop, Commit & Build Functional Testing Load, Performance, Security, … Testing UAT/ Exploratory Testing Provision Environments Deploy Solution Release Decision Production Support Idea proposed Understand Needs & Invent Solutions Feature Bloat Is A Large But Hidden Cost Some sobering stats: • 1/3 of ideas have no impact on desired outcomes • 1/3 of ideas make outcomes worse • Only 1/3 of ideas improve outcomes1 Two-thirds of what gets built is waste!
- 24. © 2015 Forrester Research, Inc. Reproduction Prohibited 24 Develop, Commit & Build Functional Testing Load, Performance, Security, … Testing UAT/ Exploratory Testing Provision Environments Deploy Solution Release Decision Idea proposed Understand Needs & Invent Solutions Better Analytics, Faster Delivery Cycles Improve Insight Improve results by: • Tying stories and features to outcomes • Defining desired results • Delivering in smaller releases to get feedback faster • Measuring the outcome using application analytic tools and practices • Using data to prioritize future work Production Support feedback
- 25. © 2015 Forrester Research, Inc. Reproduction Prohibited 25 A one-point improvement in CX score can result in dramatic increases in revenue
- 26. © 2015 Forrester Research, Inc. Reproduction Prohibited 26
- 27. © 2015 Forrester Research, Inc. Reproduction Prohibited 27 Managing The Delivery Pipeline To Increase Velocity 3 days 5 days 15 days 3 days 10 days7 days 4 days 9 days cycle time= 57 days 1 day feedback July 25, 2014 “Define A Software Delivery Strategy For Business Innovation” Idea proposed Understand Needs & Invent Solutions Functional Testing Deploy Solution Customer Value Load, Performance, Security, … Testing UAT/ Exploratory Testing Release Decision Develop, Commit & Build
- 28. © 2015 Forrester Research, Inc. Reproduction Prohibited 28 Production Support Functional Testing Load, Performance, Security, … Testing UAT/ Exploratory Testing Develop, Commit & Build Provision Environments Reduced manual effort Idea proposed Understand Needs & Invent Solutions Deploy Solution Release Decision Composite Applications Make Coordination Challenging, Delays Likely Source: Forrester Research, Inc.111102 Social media and search Systems of engagement (mobile, web, rich client) Cloud-based systems of record Traditional systems of record In-store point-of-sale systems Cloud-based services provided by third parties
- 29. © 2015 Forrester Research, Inc. Reproduction Prohibited 29 Production Support Functional Testing Load, Performance, Security, … Testing UAT/ Exploratory Testing Develop, Commit & Build Provision Environments Reduced manual effort Idea proposed Understand Needs & Invent Solutions Deploy Solution Release Decision Revenue Acceleration – Like Outages, But In Reverse Increased REVENUE = (GR/TH) x I x H GR = gross yearly revenue TH = total yearly business hours I = cycle time reduction as % percentage of total year H = number of hours reduction in cycle time http://www.evolven.com/blog/downtime-outages-and-failures-understanding-their-true-costs.html
- 30. © 2015 Forrester Research, Inc. Reproduction Prohibited 30 Production Support Functional Testing Load, Performance, Security, … Testing UAT/ Exploratory Testing Develop, Commit & Build Provision Environments Reduced manual effort Idea proposed Understand Needs & Invent Solutions Deploy Solution Release Decision • The most compelling business outcomes are hard to measure • Improved customer satisfaction • Increased revenue • Increased market share • Reducing Production Incidents is the easiest to measure • Reduced probability of incidents • Reduced severity • Improved MTTR • Improving productivity and reducing cycle time is always compelling • Reduced labor cost • Improved throughput • As application modularity increases, speed and complexity increase • Automation is essential Summary
- 31. Thank you forrester.com Kurt Bittner, Principal Analyst kbittner@forrester.com @ksbittner
- 32. 32 Key Takeaways Include intangible benefits ▶ Harder to measure, but can be the biggest benefit ▶ Ensure you make these as visible as possible Data, Data, Data Closing the loop ✔ ✔ ✔ ▶ “Black box” automa(on makes it hard to demonstrate value and to iden(fy weak points ▶ Tools must support visibility, automa;on & control ▶ Two-‐thirds of features will s(ll be neutral at best, even with a perfect delivery process ▶ Hypothesize before coding, measure in produc;on ✔
- 33. 33 Helping enterprises move to the next level “We reduced deployment failure rates by 90%” “We went from releasing 4 Hmes a year to bi-‐weekly releases “Understanding what’s broken in our code takes minutes instead of days” … and many more
- 34. 34 Copyright 2015. ConfidenHal – DistribuHon prohibited without permission Next Steps ▪ Download the IT Manager’s Guide to Con2nuous Delivery: xebialabs.com/it-‐manager-‐guide ▪ Learn more about XebiaLabs products: h3ps://xebialabs.com/products/ ▪ Stay informed: blog.xebialabs.com @xebialabs youtube/xebialabs
- 35. Ques2ons?
- 36. Thank you!