© 2013 IBM Corporation

General Manager IBM Rational Software

Kristof Kloeckner

Fast, Lean Enterprise Software Delivery through DevOps Kristof Kloeckner / IBM Rachael Straiton / DBS Bank Sebastian Jammer / PT XL Axiata

© 2013 IBM Corporation

4

#IBMINTERCONNECT

We Are at An Inflection Point in the Industry

JUST-IN-TIME MAINTENANCE Global aircraft engine manufacturer increases service revenue by 12% in one year using real-time monitoring and proactive fault detection

MOBILE CUSTOMER TARGETING Card swipe in one store attracts coupons from nearby store – resulting in 109% incremental sales lift

BUSINESS INNOVATION DRIVER Building materials manufacturer deploys social collaboration platform driving real-time process improvement and reducing time to market by 2/3

5

#IBMINTERCONNECT

External Forces that Will Impact the Organization

For the First Time, CEOs Identify Technology as the Most Important External Force Impacting Their Organizations

Technology factors

People skills

Market factors

Macro-economic factors

Regulatory concerns

Globalization

Source: IBM Institute for Business Value, The Global CEO Study 2012. Question: “What are the most important external forces that will impact your organization over the next 3 to 5 years?”

71%

2004 2006 2008 2010 2012

5 5

6

#IBMINTERCONNECT

Software delivery Modern workforce

expects constantly updated software to connect to

enterprise systems

Mobile

Software component in smart products driving increased value

and differentiation

Intelligent/ Connected Systems

Insights on new products by more efficiently interpreting massive quantities of data

Big Data Demand for apps requires fast, scalable environments for dev and test, as well as production

Cloud

Industry requirements demand faster response to regulations and standards, with traceability and quality

Instrumented Products

Software Delivery Is at the Heart of Today’s Top Technology Trends

Broader set of stakeholders collaborates to deliver

continuous innovation and value

Social Business

7

#IBMINTERCONNECT

Rapid Response to Market Challenges and Customer Feedback Determines Success or Failure

Operations/Production Development/Test Customers Business Owners

8

#IBMINTERCONNECT

Organizations that Effectively Leverage Software Delivery Outperform Their Competitors … yet few are able to deliver it effectively

86%

of companies believe software delivery is important or critical

25%

leverage software delivery effectively today

But only…

• Source: “The Software Edge: How effective software development drives competitive advantage,” IBM Institute of Business Value, March 2013

69%

outperform those who don’t

of those who leverage software

delivery today

9

#IBMINTERCONNECT

Systems of Interaction

Continuous client experience

Partner value chain

Cloud-based Services

Systems of Engagement Systems of Record

CRM HR

DB ERP

A Failure in Software Delivery Impacts the Entire Business

of customers experience

production delays

>45%

of outsourced projects fail to meet

objectives

>50%

of budgets devoted to maintenance and

operations

>70%

to deliver even minor application changes to

customers

4-6 weeks

DEVELOPMENT/TEST Speed mismatch between faster moving front office and slower moving back office systems, delaying time to obtain feedback

SUPPLIERS Delivery in the context of agile

OPERATIONS Rapid app releases impact system stability and compliance

LINE-OF-BUSINESS Takes too long to introduce or make changes to mobile apps and services

VIDEO (Continuous Delivery – 3 minutes)

11

#IBMINTERCONNECT

DevOps Takes a Holistic Approach to Application Delivery

Operations/ Production

Development/ Test Customers Business

Owners

DevOps takes a business-oriented perspective in optimizing the entire delivery value stream by applying Lean Principles to software/service delivery, fostering collaboration across the business to

enable continuous delivery

Agile Development Continuous Business Planning Continuous Integration

Continuous Deployment

Continuous Testing

Continuous Monitoring

Existing efforts/practices address only a subset of the value chain

DevOps Continuous Delivery of Software-driven innovation with a feedback loop

IDEA

M

AR

KET

Head of IT Shared Services DBS Bank

Rachael Straiton

© 2013 IBM Corporation

14

#IBMINTERCONNECT

15

#IBMINTERCONNECT

16

#IBMINTERCONNECT

18

#IBMINTERCONNECT

19

#IBMINTERCONNECT

19

20

#IBMINTERCONNECT

21

#IBMINTERCONNECT

Rapid Waterfall

Agile

Rapid Waterfall

Rapid Waterfall

Agile

Agile

Agile

Continuous Delivery

Dedicated environment,

Full simulated testing, Partial deployments

Scheduled test environments

Dedicated environment, Automated testing

22

#IBMINTERCONNECT

Where we have started…

Sebastian Jammer Head of Business Transformation Services PT. XL Axiata Tbk

© 2013 IBM Corporation

25

#IBMINTERCONNECT

In Less Mature IT Organizations, Lack of Discipline and Informal Management Can Lead to Serious Ineffectiveness

 Highly informal process  Relationship based  No formal entry gate  No business case to judge project impact to

the company

IT Department People Budgets

Business Requests

Business Impact

 Lack of oversight regarding Business User Requests and Resource Allocation

 Non-systematic resource allocation (human and financial) – misaligned with business objectives

 Overload of the organization due to the absence of a filtering and prioritization mechanism

 Project delays due to under-resourcing (often projects were not meeting the agreed delivery date)

 Misalignment with architectural principles due to absence of centralized architecture governance

CASE EXAMPLE

Business Request Management

26

#IBMINTERCONNECT

This Can Inhibit the Execution of Strategy and Significantly Hamper Competitive Advantage

IT Project Governance

IT Processes

Team Capabilities

1 2 3

Time-to-Market

Flexibility & Agility

Cost of Ownership

Service Quality

Strategic Objectives

Issues

Averse impact to the strategic objective

Issues and Implications

CASE EXAMPLE

27

#IBMINTERCONNECT

IT Department People Budgets

Hence, before Adopting Advanced Methodologies Fixing the Basics Is Key

Application Development & Management Process (High Level)

Business Requests

Business Requests

Demand Management

Control

Gate 1 Gate 2 Gate 3 Gate 4

Deploy Build & Test Design Requirements Development

Feasibility Check

Gate 0

Resource Planning & Allocation

Strategic & Architectural

Alignment

Avoidance of Duplication

Resource Planning & Allocation

Strategic & Architectural

Alignment

Avoidance of Duplication

Resource Planning & Allocation

Strategic & Architectural

Alignment

CASE EXAMPLE

28

#IBMINTERCONNECT

This Will Lay the Foundation to Drive Further Improvement Such as Standardization

Description   Toolkit breaks down the product into building blocks   Product marketing can pick and choose and

“parameterize” the different building blocks   IT architecture is developed to accommodate the

tool-kit through parameters

Benefits   Significant reduction in complexity   Reduction of technical risk   Reduced risk of product design failures   Enables standardized customer experience   Reduction in effort to develop the product   Enables standardized IT tooling such as testing   Ability to handle higher volumes of products   Faster speed to market

Product & Price Plan Building Blocks

Building Block 2

Building Block 4

Building Block 1

Building Block 2

29

#IBMINTERCONNECT

Experience Has Taught Some Key Principles about IT Transformation

1.  Transformation is a journey, not a destination

2.  Evolution is much better than revolution

3.  Execution architecture is much more important than end-state architecture

4.  Architecture is a governance task, much more than a technical one

5.  Capability is key to success

© 2013 IBM Corporation

VIDEO (DevOps Overview – 2 minutes)

© 2013 IBM Corporation

33

#IBMINTERCONNECT

DevOps Adoption Paths

Open Lifecycle and Service Management Integration Platform

OSLC

Ecos

yste

m B

est Practices

Monitor and Optimize

Plan and Measure Develop and Test Release and Deploy

Operations/Production Development/Test Customers Business Owners

34

#IBMINTERCONNECT

Adoption Path: Plan and Measure Practice: Continuous Business Planning

Do the right things right

  Attack the high value and high risk items first

  Predict and quantify the outcomes and resources

  Measure honestly with distributions of outcomes

  Learn what customers really want and steer with agility

65% reduction in operating costs previously necessary to manage

the decision-making process, and a 20% savings in time spent on

the decision process

35

#IBMINTERCONNECT

Adoption Path: Development and Test Practice: Collaborative Development

Unify on an integrated, open platform

  Promote common terminology, tools, processes, data sources among all lifecycle disciplines

  Integrate early and continuously

  Demonstrate integrated behaviors before investing in unit coverage and completeness

“Our costs are flat, even though our demand has increased by about 30

to 35 percent. We’re doing more with the same amount of resources”

Frank Fabian Head of testing environments, delivery services,

ANZ technology

36

#IBMINTERCONNECT

Adoption Path: Development and Test Practice: Continuous Testing

Quantify software quality insight at faster cycle times

  Virtualize test environments for low-overhead, rapid deployment

  Automate provisioning and regression test suites

  Uncover and resolve critical defects earlier through integration-test driven development

  Quantify quality trends over time

Blue Cross BlueShield

“Using the Rational tools, three employees can run the

required 1,250 tests in less than one week, reducing testing time by

50 percent.”

An Doan Software Quality Engineer

37

#IBMINTERCONNECT

Adoption Path: Release and Deploy Practice: Continuous Release and Deployment

Accelerate delivery of usable increments for continuous outside-in feedback

  Provide a continuous delivery pipeline that automates deployments to test and production environments

  Reduce overhead with push-button deployments

  Quantify change stability and measure transparently for compliance

“Before it took 2 days to deploy a build, with uDeploy and our new

processes, it takes us less than 60 seconds.”

Matthew Wilson Director, Consumer Web Operations

38

#IBMINTERCONNECT

Continuous Software Release and Deployment   Reduce errors with automated software release

and deployment   Improve productivity with push-button deployments

for developer and operations   Reduce time-to-market via automated release and deployment   Demonstrate compliance and auditability through enforced

security and traceability

IBM UrbanCode Deploy orchestrates and automates the deployment of applications, databases and configurations IBM UrbanCode Release is an intelligent collaboration release management solution

39

#IBMINTERCONNECT

Adoption Path: Monitor and Optimize Practice: Continuous Monitoring

Quantify change trends

  Scalable measurement and reporting

  Real-time insight into performance and stability

  Continuous feedback on cost of change to steer projects toward more predictable outcomes “Root cause analysis used

to average 45 minutes. Now it takes only 5 minutes.”

Syed Asif Shah Chief Information Officer

40

#IBMINTERCONNECT

Adoption Path: Monitor and Optimize Practice: Continuous Customer Feedback and Optimization

Analyzing the customer experience and their challenges

  Understand client usage context for analyzing customer behavior and pinpointing problems

  Reduce cycle times for continuous client feedback

  Connect developers/operators more directly with user community and client experience

41

#IBMINTERCONNECT

Overhead and Rework Productive

40% 20%

Eliminate any activity that is not necessary for learning what customers want

The Critical Measure of DevOps Success

42

#IBMINTERCONNECT 42

Practice Based Maturity Model: Assessment Framework

Benefits/Business outcome: Defined with real metrics Measure: Practical means to benchmark before, during and after

Technical context: Impact on Practices, Means to implement changes

Maturity Model Assessment, Pilot, and Rollout Services

43

#IBMINTERCONNECT

DevOps at InterConnect 2013

  Session 0142: Seize Market Opportunities by Establishing an Enterprise Capability for Continuous Software Delivery •  Thursday, 10/Oct, 04:15 PM - 05:00 PM, Simpor 4803, Level 4

  Session 0179: Accelerating Mobile and Cloud Development and Delivery for zEnterprise •  Fri, 11/Oct, 10:15 AM - 11:00 AM, Peony 4502, Level 4

  Session 0167: Deploy Mobile First Applications •  Fri, 11/Oct, 11:15 AM - 12:00 PM, Roselle 4612, Level 4

  Visit the DevOps Zone in the Solution Center

44

#IBMINTERCONNECT

Take Action Now!

  Develop an end-to-end DevOps strategy

  Adopt mobile-first design thinking, and cloud-centric architectures

  Start incrementally on business-critical projects

  Measure and reduce overhead, rework and duplication

  Innovate! It’s a great time to be in the technology business

#IBMINTERCONNECT

© 2013 IBM Corporation

Thank You

© 2013 IBM Corporation