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How to Make it Real and Innovation Today How software helps companies embrace change, How to Make it Real and Innovation Today How software helps companies embrace change, deliver smarter products and drive profit Hayden Lindsey Vice President & Distinguished Engineer Enterprise Modernization, Modeling, Construction and Compilers IBM Rational Software © 2009 IBM Corporation

IBM Rational Software Conference 2009 How does one change and improve? How do we IBM Rational Software Conference 2009 How does one change and improve? How do we effectively develop with teams across 3 continents? How do we manage customized, outsourced and packaged assets? How do we foster culture change to enable transformation to agile? Where do we start? How do we leverage automation to optimize resources? 2

IBM Rational Software Conference 2009 Drive business innovation and reduce costs through measured and IBM Rational Software Conference 2009 Drive business innovation and reduce costs through measured and continuous process improvement Measured Capability Start here! Improvement Framework Captures over 10 years of Rational Empower teams to measure, experiences in incremental adoption manage, and incrementally improve their 80 IBM agiledelivery § Used in over software projects capability Phase 1 Establish business and operational objectives Phase 2 Prioritize practices and define roadmap Phase 3 Accelerate adoption with tools and services Phase 4 Report, analyze and act on results § Used in conjunction with RUP, XP, Scrum and other processes § Demonstrated in the Rational Insight executive dashboard Start next incremental improvement 3

IBM Rational Software Conference 2009 Unifying platform: Jazz Phases 1&2 Define objectives and prioritize IBM Rational Software Conference 2009 Unifying platform: Jazz Phases 1&2 Define objectives and prioritize practices Phase 3 Phase 4 Accelerate adoption Report, analyze and act 4

IBM Rational Software Conference 2009 Phases 1 & 2: Deciding where to start Establishing IBM Rational Software Conference 2009 Phases 1 & 2: Deciding where to start Establishing an improvement roadmap § Executive Business Value Workshop 4 Service offering to elicit business and operational objectives and delivery strategies § SDLC Health Assessment 4 Service offering that assesses current health of target projects and organizations 4 Provides a measurable and incremental improvement roadmap Customer Business Challenges Operational Objectives Stay ahead of the competition Improve business alignment Reduce time-to-market Improve quality Best Practices Requirements management Enterprise architecture Consolidated multi-platform development Test management Start small, add as needed 5

IBM Rational Software Conference 2009 Phase 3: Improving development and business alignment Requirements management, IBM Rational Software Conference 2009 Phase 3: Improving development and business alignment Requirements management, enterprise architecture Decide which projects and programs to pursue Financials Define use cases and complete prioritization for pipeline and scope management Rational Focal Point Rational Requirements Composer Effectively execute projects and programs with improved visibility into outcomes Assess impact of the business changes to the architecture, and define the projects to achieve desired end state Rational System Architect Scope, Tasks & Time Resources Skills Integrated project management Rational Focal Point for Project Management Better alignment of enterprise objectives and solution efforts can result in a 17% productivity improvement 6

IBM Rational Software Conference 2009 Phase 3: Reducing time-to-market and improving quality Consolidated multi-platform IBM Rational Software Conference 2009 Phase 3: Reducing time-to-market and improving quality Consolidated multi-platform development, test management Develop multi-platform applications using common IDEs Elicit and drive evolving requirements into development and test plans Rational Requirements Composer Rational Developer for System z Rational Application Developer Continuously integrate code across multiple platforms, linking to requirements and defects Synchronize and manage test plans with evolving requirements and development activities Rational Quality Manager Rational Team Concert System z System i Distributed By reducing requirements rework, we cut costs up to 30% 7

IBM Rational Software Conference 2009 Phase 4: Report and analyze business results Rational Insight IBM Rational Software Conference 2009 Phase 4: Report and analyze business results Rational Insight Integrated lifecycle intelligence Control Settings Better Results 8

IBM Rational Software Conference 2009 Innovation today How do we innovate? 9 IBM Rational Software Conference 2009 Innovation today How do we innovate? 9

IBM Rational Software Conference 2009 Innovation We are on the verge of a new IBM Rational Software Conference 2009 Innovation We are on the verge of a new wave of innovation. . . The Industrial Revolution 1770 Steam And Railways 1830 Oil, Cars and Mass Steel, Electricity Production and Heavy Engineering 1875 1920 IT and Telecom Smarter Products § Instrumented, interconnected, and intelligent § Building blocks for a smarter planet 1970 2010 10

IBM Rational Software Conference 2009 …where embedded software becomes even more crucial for product IBM Rational Software Conference 2009 …where embedded software becomes even more crucial for product innovation and differentiation Electronics § Apple’s i. Phone is completely instrumented, with GPS positioning software that helps the device know where you are Automotive Aerospace and Defense § 90% of innovation is based § F-22 Raptor (2003) contains on electric and electronic systems 1. 7 million lines of code § 80% of this innovation is based on embedded software § F-35 Lightning II will have 5. 7 million lines of code Key benefits ü Create new opportunities ü Increase revenue / profit ü Enhance customer loyalty ü Faster time-to-market 11

IBM Rational Software Conference 2009 These smarter products will play a major role for IBM Rational Software Conference 2009 These smarter products will play a major role for enabling tomorrow’s ecosystems, such as for smarter transportation Government Authorities Enterprises INSTRUMENTED Transportation System Consumers Geographies INTERCONNECTED Smarter Products Energy & Utilities Communities INTELLIGENT 12

IBM Rational Software Conference 2009 . . . with a core foundation of software IBM Rational Software Conference 2009 . . . with a core foundation of software delivery offerings that enable smarter products Rational DOORS Web Access Rational Rhapsody Rational Team Webtop Rational MCIF for Systems Smarter Products Rational Focal Point Rational System Architect Rational Team Concert The Rational Software Platform for Systems Rational Synergy / Change Rational Clear. Case / Clear. Quest Rational Quality Manager Rational Build Forge Rational Harmony Plus… 13

IBM Rational Software Conference 2009 Innovation journey continues IBM Software Delivery Services for Cloud IBM Rational Software Conference 2009 Innovation journey continues IBM Software Delivery Services for Cloud Rational Software Delivery Services ON the cloud § Turnkey Collaborative Application Lifecycle Management solution for software and systems delivery § Rational Team Concert, Quality Manager, Requirements Composer, Insight, and Build Forge hosted in the Cloud Rational Software Delivery Services FOR the cloud § Support Web. Sphere Cloud. Burst and IBM Smart Business Test Cloud § Leverage Cloud resources with Rational Software Architect and Rational Build Forge § Manage Cloud assets with Rational Asset Management, Quality Management and Tivoli Solutions 14

IBM Rational Software Conference 2009 Learn more at: § IBM Rational software § Rational IBM Rational Software Conference 2009 Learn more at: § IBM Rational software § Rational launch announcements § Rational Software Delivery Platform § Accelerate change & delivery § Deliver enduring quality § Enable enterprise modernization § Ensure Web security & compliance § Improve project success § Manage architecture § Manage evolving requirements § Small & midsized business § Targeted solutions § Rational trial downloads § developer. Works Rational § Leading Innovation § IBM Rational TV § IBM Business Partners § IBM Rational Case Studies © Copyright IBM Corporation 2009. 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. 15

IBM Rational Software Conference 2009 Phase 3: Deploying best practices and tools BUSINESS DOMAIN IBM Rational Software Conference 2009 Phase 3: Deploying best practices and tools BUSINESS DOMAIN Business Executive Business Planning & Alignment Product/ Project Manager Product & Project Manageme nt Controller DEVELOPMENT DOMAIN Analyst Architect Collaborati ve Lifecycle Manageme nt Developer Tester Design & Developme nt Complianc e & Security 16

IBM Rational Software Conference 2009 Innovation is about taking deep insight to create new IBM Rational Software Conference 2009 Innovation is about taking deep insight to create new value – for business and society Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value. 17

IBM Rational Software Conference 2009 IBM continues to invest in industry assets and frameworks IBM Rational Software Conference 2009 IBM continues to invest in industry assets and frameworks to help develop and deploy smarter products Industry Solutions Composite Business Services ISV Services Process Models Data Models Industry Frameworks IBM Industrial Sector Industry Frameworks § PDIF Product Development Integration Framework Open, Industry Standards Business Integration IT Operations Business Optimization SOA Foundation § MIF Manufacturing Integration Framework § IIF Integrated Information Framework 18