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Executive level presentation software driven innovation
This document is a presentation from Casey Lucas of IBM Software about harnessing the power of software-driven innovation. It discusses how innovation is increasingly driven by software, especially in industries like banking and automotive. However, complexities in software delivery can stall innovation. The presentation argues that transforming software and systems delivery through approaches like IBM Rational can dramatically improve business results by optimizing processes, enabling collaboration, integrating systems, and providing automation and expertise.
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Executive level presentation software driven innovation
- 1. Casey Lucas, ClientRepresentative IBM Software, Rational November 7, 2012 IBM Rep Page: www.ibm.com/myrep/casey_lucas Harnessing the power of software-driven innovation © 2012 IBM Corporation
- 2. Accelerating Product andService Innovation | Rational Innovation is increasingly being driven by software Mobile banking will be Today, electronics drive the most widely used banking about 80% of the automotive channel by 2020, industry’s functional innovation, if not sooner and software is the key to most of it Source: Mobile banking: A catalyst for improving bank performance, Deloitte, 2010; and Jürgen Mössinger (2010), Software in Automotive Systems, 2 IEEE Software, March/April 2010. © 2012 IBM Corporation
- 3. Accelerating Product andService Innovation | Rational Realities can stall software-driven innovation Complexities in software delivery compounded by market pressures 3 © 2012 IBM Corporation
- 4. Accelerating Product andService Innovation | Rational Transforming software and systems delivery brings about dramatic business results 4 © 2012 IBM Corporation
- 5. Accelerating Product andService Innovation | Rational Three key actions of transforming software and systems delivery 5 © 2012 IBM Corporation
- 6. Accelerating Product andService Innovation | Rational Software-driven innovation with IBM Rational Addressing IT, systems, and enterprise modernization 6 © 2012 IBM Corporation
- 7. Accelerating Product andService Innovation | Rational Software-driven innovation with IBM Rational Addressing IT, systems, and enterprise modernization Optimize Collaborate Integrate Automation and Know-how 7 © 2012 IBM Corporation
- 8. Accelerating Product andService Innovation | Rational Achieve break through benefits with IBM IBM solution • Years of experience with client implementations built into our solutions and approach • Open, standards-based software delivery platform, called Jazz, that enables cross-vendor integration • Able to improve linkage between business priorities and objectives to outcomes • Consulting and services to accelerate value and implement best practices, if needed 8 © 2012 IBM Corporation
- 9. Accelerating Product andService Innovation | Rational Jazz provides open collaboration across the software and systems lifecycle 9 © 2012 IBM Corporation
- 10. Accelerating Product andService Innovation | Rational IBM has set the bar for software and systems delivery platforms 10 © 2012 IBM Corporation
- 11. Accelerating Product andService Innovation | Rational www.ibm.com/software/rational © Copyright IBM Corporation 2012. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Rational, the Rational logo, Telelogic, the Telelogic logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others. 11 © 2012 IBM Corporation
Editor's Notes
- #4 But finding new ways to innovate through software isn’t easy. The systems and applications being built today are more powerful and interconnected than ever before – but they are also more complex……which makes them harder to build, harder to verify, and definitely harder to manage. This complexity is made worse by the need for faster delivery, driven by today’s very competitive landscape. Customers expect the “next new thing” faster than ever before. So there are serious consequences to failure. In the most extreme cases, failure can result in human harm. At best, failure can have really destructive brand and business implications. Think about the last security breaches or regulatory violations you heard about in the news. They don’t generally leave you with a good impression of that businesses brand. And yet a recent IBM study determined that approximately 66% of software projects either fail to meet their intended schedule or fail altogether. That said, there are companies that are aggressively driving new innovation through software, and they are finding ways to not only overcome these challenges, but also gain additional benefits. They are doing this by transforming their approach to software and systems delivery. Sources:* “The 2009 Agile Project Initiation Survey found that 78% of agile teams worked with legacy assets in some manner.” from “The Joy of Legacy Data” by Scott Ambler at http://www.agiledata.org/essays/legacyDatabases.html* “50% of outsourced projects are expected to under perform” - BusinessWeek Commentary: “Shifting Work Offshore? Outsourcer Beware”: http://www.businessweek.com/magazine/content/04_02/b3865028.htm* “66% of projects are either “challenged” or downright failures” From Standish Group’s CHAOS Manifesto 2011* 42% of businesses hold the CIO responsible for risk management -- from “Key trends driving global business resilience and risk” -- 2011 IBM study at http://public.dhe.ibm.com/common/ssi/ecm/en/rlw03005usen/RLW03005USEN.PDF* “...you will find numerous citations across many industries regarding the high cost of simply keeping the lights on, especially in the IT arena. In IBM’s experience, the 70 - 80 percent figure is roughly correct; little funding is left for innovation” -from Per Kroll, in “Empowering the CIO: Enabling smarter decisions with Application Portfolio Management” at http://public.dhe.ibm.com/common/ssi/ecm/en/raw14290usen/RAW14290USEN.PDF* “...up to 85% of rework costs are due to requirements defects. Typically development, design and engineering teams lack visibility into software requirements...” fromIBM Rational white paper “Reducing rework through effective requirements management” at https://www14.software.ibm.com/webapp/iwm/web/signup.do?source=swg-rtl-reducerework
- #5 Companies need to find ways to effectively transform software and systems delivery to address the challenges of complexity or risk losing significant competitive advantage. A great example is General Motors. By adopting new approaches they were able to get their new electric car, the Chevy Volt, on the road in half the time it traditionally takes to bring a new automobile to market. Reliance Insurance – another great example -- transformed their software delivery process to the tune of a 50% reduction in development costs and time to market.Companies like GM and Reliance are seizing new business opportunities, and they’re outmaneuvering the competition.IBM Rational Client Case Studies:GM: Improved time to markethttp://www-01.ibm.com/software/rational/announce/volt/?ca=rhpVolt designed and engineered in 29 months, compared to typical 5-10 year cycle for new technology.What’s smart?Innovative electric drive system uses software and electronics to control interaction of electric motors and gasoline engine“System of systems” seamlessly integrates electric drive system with powertrain and body controllers >10 million lines of code in car; almost 100 control unitsSmarter business outcomesSmarter products delivered in less time - Volt was delivered in 29 months, compared to typical 5-10 year development cycle for new powertrain technologyHow IBM helps GM develop smarter productsRational DOORS for requirements managementRational Rhapsody for model-driven developmentRational Team Concert for team collaborationRational Asset Manager for engineering asset managementRational Professional Services for technical servicesIBM Global Services for business transformation servicesReliance Insurance: Innovation in face of cost reductionhttp://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0GLOS-7YNP6F&appname=crmdReduced time required to develop new services and features by 50%. Reduced customer/agent service costs nearly 50%. One of the top three private sector financial services and banking companies in India, Reliance Life Insurance Company Limited (Reliance) provides services and offerings for asset management, mutual funds, stocks and insurance, as well as proprietary investment and private equity services. It is registered with the Reserve Bank of India as a non-banking financial company (NBFC). Software: Rational Software: Rational Performance Tester; Rational Performance Tester Pack Services: IBM Global Technology Services - Integrated Technology Services: GTS ITS Middleware: Middleware Implementation Services; GTS Data Center Services
- #6 Companies who are transforming their software and systems delivery are implementing three core foundational principles. The first is integration across the lifecycle to connect software, systems and tools. The second is collaboration, which means unifying teams, roles, platforms and geographies.And the third is optimization to improve results through better measurement and alignment to business priorities. Through these actions, companies are: Delivering higher quality products and services to marketThey are more confident that those products and services meet customer needsAnd they are shortening their delivery times while reducing cost and risk