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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

Published in: Software

Building a Compelling Business Case for Continuous Delivery

  1. 1. Building  a  Compelling   Business  Case  for     Con2nuous  Delivery   October  6,  2015     Kurt  Bi3ner,  Forrester  Research   Andrew  Phillips,  XebiaLabs  
  2. 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. 3 Agenda   ▪ IntroducHon   ▪ Bridging  the  SoGware  Delivery  Divide   ▪ Building  a  Compelling  Business  Case  For   ConHnuous  Delivery   ▪ Q  &  A  
  4. 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. 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. 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. 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. 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. 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. 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. 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. 12. © 2015 Forrester Research, Inc. Reproduction Prohibited
  13. 13. © 2015 Forrester Research, Inc. Reproduction Prohibited Building a Compelling Business Case For Continuous Delivery Kurt Bittner, Principal Analyst
  14. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 25. © 2015 Forrester Research, Inc. Reproduction Prohibited 25 A one-point improvement in CX score can result in dramatic increases in revenue
  26. 26. © 2015 Forrester Research, Inc. Reproduction Prohibited 26
  27. 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. 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. 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. 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. 31. Thank you forrester.com Kurt Bittner, Principal Analyst kbittner@forrester.com @ksbittner
  32. 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. 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. 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. 35. Ques2ons?  
  36. 36. Thank  you!  

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