IBM Software Group Establishing a Winning Approach

IBM Software Group | Rational software The fantasy of outsourcing § Focus on the core business § Save cost § Better control on budget § Better ROI § Time to market / Time to profit § Access to expertise § Etc…. . 2

IBM Software Group | Rational software Why do Outsourcing Project Fail? Source: Aberdeen. Group, August 2006 3

IBM Software Group | Rational software Why is requirements management so critical? “Analysts report that as many as 71 percent of software projects that fail do so because of poor requirements management, making it the single biggest reason for project failure - bigger than bad technology, missed deadlines or change management fiascoes” - CIO Magazine, November 2005 4

IBM Software Group | Rational software The CIO must drive down costs while increasing project success at the same time “Only 41% of projects are considered successful. ” – IBM CIO Study CIO Magazine recently reported, “as many as 71% of software projects that fail, do so because of poor requirements management, making it the single biggest reason for project failure. " 30% of all project costs are associated with rework. Requirements mistakes account for up to 70% of this cost, at an average of $1, 300 in labor to fix each requirement Requirements activities impact up to 35% of a project effort, and can cause waiting time, and redundant activities that eat up to 10% of your budget A six-month delay can cost companies up to 33% of ROI on a five year business case Reduce rework in all stages of development Improve requirements definition productivity with current resources Faster results – minimize delays that impact time to value 5

IBM Software Group | Rational software Challenge: Poor collaboration between Parties CIO: “Our new strategic roadmap identified several areas we need to consolidate capabilities and costs, lets get the team to evaluate approaches that we can all get behind. ” No Meaningful dialogue or alignment to strategy Stakeholders not engaged Analyst: “People don’t seem Analyst to be on the same page” Stakeholder: " I do not have time, and no resources, so we will have to catch up later” Sidebar conversations Low user involvement User: “Let me ask my manager if I can get more involved Current Concerns § Stakeholder interaction is inconsistent and disparate (email / docs) § Stakeholders overlooked or rely too heavily on delegates § Stakeholders see needs as unique, unable to understand negotiate Unrealistic Unyielding Expectations Stakeholder: " Here are my needs, in my models, and my documents. Call me today. ” No cross-functional collaboration or understanding Stakeholder: “My process drives 90% of revenue, tell me when to test my solution No synergy, 41% of projects fail to achieve investment return 6

IBM Software Group | Rational software How’s Requirement flows…… How the customer explained it How the project leader understood it How the analyst designed it How the programmer wrote it How the business consultant described it How the project was documented What operations installed How the customer was billed How it was supported What the customer really 7 needed

® IBM Software Group How to Manage Requirement © 2007 IBM Corporation

IBM Software Group | Rational software N sk ed e Ri Reg im Cri teri on Ru tio n l A a Go Fu nc le ulat ion O bj Fe ec at ti ure ve Requirements Are Everywhere Requirements 9

IBM Software Group | Rational software V-Shape Requirement Development Operational use Statement of need validating the product Stakeholder Requirements Acceptance test satisfies confront verifying the system System test System Requirements satisfies ITIL, ISO 9001 Subsystem test Subsystem Requirements satisfies Company Standard IT Outsourcing evaluating the subsystems evaluating components Component Requirements Component test Design Outsourcing Implementation Outsourcing 10

IBM Software Group | Rational software Requirement Database § Unlimited hierarchy of Projects/Folders supports scalability Folders DOORS Documents Projects Deleted Folder Organize Your Projects 11

IBM Software Group | Rational software Document Views Everything you need in one window! Spell check Context Requirements OLE Improves productivity, reduces errors, increases quality 12

IBM Software Group | Rational software Show only what I am interest! 13

® IBM Software Group How to Manage Requirement Relationship? © 2007 IBM Corporation

IBM Software Group | Rational software Traceability is the key to Requirement Managmenet User Reqts Technical Reqts Design Test Cases § Initial user requirements should be decomposed to detailed requirements, then to design, tests, etc. § Decomposition creates traceability relationships § Relationships define your traceability model § Your traceability model is the basis for your process § Enforce your traceability model; improve your process 15

IBM Software Group | Rational software Traceability; drag-and-drop linking Drag-and-drop to link within a document. . . 16 . . . or from document to document 16

IBM Software Group | Rational software Traceability view User Reqts Technical Reqts Design Test Cases “End-to-end visual validation in a single view” 17

IBM Software Group | Rational software Traceability Verification or “Completeness” • Increases customer confidence • Detect missing links • Creation and deletion of links is recorded in history Traceability through an Orphan report shows “missing” links 18

IBM Software Group | Rational software Impact / Derivation Analysis Acceptance test Plan Stakeholder Requirements Impact Analysis System test plan Subsystem Requirements Component Requirements Derivation Analysis Impact Analysis System Requirements Integration test plan Derivation Analysis Component test plan 19

IBM Software Group | Rational software Requirement Coverage Analysis Stakeholder Requirements System Requirements All requirements are allocated to sub requirements? Acceptance test Plan System test plan Subsystem Requirements All requirements are tested Integration test plan without an exception? Component Requirements Component test plan 20

® IBM Software Group How to Manage Requirement Change? © 2007 IBM Corporation

IBM Software Group | Rational software Suspect Links Suspect links are visible directly in the document as indicators or as a full description Clear on a right click Never miss a change again 23

IBM Software Group | Rational software The Requirement lifecycle Nonintegrated project data is imported, structured, linked and traced, to produce reports of managed information 24

® IBM Software Group Requirement is Good now. What about Delivery? Wu, Ying-Ki YK

IBM Software Group | Rational software V-Shape Development & Delivery - Now focusing on Delivery Operational use Statement of need validating the product Stakeholder Requirements Acceptance test satisfies confront verifying the system System test System Requirements satisfies ITIL, ISO 9001 evaluating the subsystems satisfies Company Standard Subsystem test Subsystem Requirements evaluating components Component Requirements Component test 26

IBM Software Group | Rational software The unsuccessful failure rate for software projects (including outsourcing) is still alarmingly high - Decision making, Accountability, Performance, Risk Management Software project results § Project success rates average less than 55% § Cancelled projects cost $81 Billion worldwide each year § Of the 50% of projects which are successfully delivered, 28% of these projects are not yielding the expected planned value Software project waste § $55 Billion § $38 Billion in lost dollar value § $17 Billion in cost over runs Although cancellation rates are down and fewer projects are troubled, improving software development governance provides increased value to projects, producing about 30% more projects that deliver expected value. Source: Standish Chaos Report, Allinean ROI of Software Development 27

IBM Software Group | Rational software Problems of Outsourcing – Risks are not fully shifted to subcontractors as stakeholders bear the risk of project failure. § Features are missing Requirements are not fully tested Requirement changes are not being notified § Too many bugs in UAT & Prod Lack of defect management process Lack of validation or verification § Last minute delay Lack of project transparency Lack of communication 28

IBM Software Group | Rational software Subcontract Management - Repeatable process to manage subcontractors Goals Commitment & Ability to perform Activities to perform Verification & Measurement Ensure regulatory compliance in a changing global environment Outsourcing can be a win-win situation 29

IBM Software Group | Rational software Goals towards SSM - Involves establishing specific, measurable and time-targeted objectives 1) Customer and subcontractor agree to their commitments to each other 2) Customer and subcontractor maintain ongoing communications 3) Customer tracks subcontractor’s result & performance against commitments Committing on goals is the 1 st step to success 30

IBM Software Group | Rational software Goal: Define a clear ‘Acceptance criteria’ - Work towards defined goals 31

IBM Software Group | Rational software Commitment & Ability to perform towards SSM 1) Customer manager is designated to be responsible for establishing and managing subcontractor 2) Adequate resources and funding are provided for managing the subcontract 3) Subcontractors are trained and receive orientation in the technical aspects Assign clear responsibility and allocate adequate resources to reduce project risk 32

IBM Software Group | Rational software Assign clear responsibility and allocate adequate resources to reduce project risk - Know your team and role Defines Project Defines resources & responsibilities Defines project administrators 33

IBM Software Group | Rational software Activities to perform towards SSM 1) Contractual agreement between the customer and subcontractor is used as the basis for managing the subcontract 2) Documented and approved subcontractor’s software development plan to track the activities and status 3) Customer conducts acceptance testing as part of the delivery of the subcontractor’s software products Communication and tracking to monitor status 34

IBM Software Group | Rational software Activity: The work to be subcontracted is defined and planned according to a documented procedure - project transparency and communication Create snapshot to record of your progress. Structured plan to fulfill Software Subcontract Management, e. g. Business Objectives, Requirements, Acceptance Criteria, Schedule, Attachments, & etc 35

IBM Software Group | Rational software Activity: The work to be subcontracted is defined and planned according to a documented procedure - Schedule check points to review subcontractor progress 36

IBM Software Group | Rational software Activity: A documented subcontractor’s software development plan is reviewed and approved by the prime contractor - project transparency and communication Clearly define the responsibility of reviewal and approval 38

IBM Software Group | Rational software Activity: Subcontractor’s performance is evaluated on a periodic basis - Requirements are covered by test cases 39

IBM Software Group | Rational software Activity: The software subcontractor’s performance is evaluated on a periodic basis - project transparency and communication Real-Time tracking of covered requirements 40

IBM Software Group | Rational software Activity: Plan is used for tracking the software activities and communicating status - Requirement changes are being notified 41

IBM Software Group | Rational software Activity: Plan is used for tracking the software activities and status - Understand which test cases can be impacted due to requirement change (Impact Analysis) 42

IBM Software Group | Rational software Activity: Tracking the software activities and status - Transparent and centralised overview of defect and its status (defect tracking) Manage, evaluate, prioritise defects in real-time. Understand project health and help to make right decisions. 43

IBM Software Group | Rational software Activity: Tracking the corresponding communication - Transparent and centralised overview of defect and its status Defect status In-Context Communication are kept ! 44

IBM Software Group | Rational software Activity: Tracking the software activities and status - Transparent and centralised overview of defect and its status Audit Trail Accountability 45

IBM Software Group | Rational software Activity: Tracking the corresponding communication - Transparent and centralised overview of defect and its status (Subcontractor’s view) Notifications, and defects will be displayed in dashboard Sub-Contractor’s profile: know which projects are involved Customisable charts for project analysis Know what is happening in this project 46

IBM Software Group | Rational software Activity: Tracking the software activities status - Understand which requirement has associated defect 47

IBM Software Group | Rational software Measurement & Verification towards SSM 1) Measurements are made to determine the status of activities for managing subcontractor 2) The activities for managing the software subcontractor are measured & reviewed 3) Evaluation acts as input for future subcontractor selection criteria Ensure deliver quality products that satisfy customer’s expectation 48

IBM Software Group | Rational software Verifications are measured & reviewed - Testings are recorded as evidence for validation and verification Test Execution overview Result Details Subcontractor provides step-by-step screenshots evidence as attachments. 50

IBM Software Group | Rational software The activities for managing the software subcontractor are measured & reviewed - Tracking possible over due items, and take actions to minimize risks before project deadline Tracking over due items 51

IBM Software Group | Rational software The activities for managing the software subcontractor are measured & reviewed - Defects can be traced, and can be filtered Tracking all the defects 52

IBM Software Group | Rational software Measurements are made to determine the status of activities for managing subcontractor - Views of project status from multiple perspectives - Charting to show healthiness & completeness of project - Performance evaluation - Reference for future project 53

IBM Software Group | Rational software Overview of SSM on quality aspect IBM Collaborative Application Lifecycle Management Rational Quality Manager Quality Dashboard Requirements Management - DOORS Defect Management Quality Management Create Plan Build Tests Manage Test Lab Report Results Execute Tests Best Practice Processes JAZZ TEAM SERVER SAP Java Functional Testing Open Lifecycle Service Integrations Performance Testing Web Service Quality Manual Testing System z, i. NET Security and Compliance 54

IBM Software Group | Rational software Centralized Outsourcing Management Solution IBM Collaborative Application Lifecycle Management Telelogic DOORS Collaborative Requirement Repository Requirement Traceability Test Requirement Impact Analysis IBM Collaborative Application Lifecycle Management Bi-directional synchronization Rational Quality Manager Quality Dashboard Quality Management Test Result Create Plan Build Tests Execute Tests Report Results Manage Defects 56

IBM Software Group | Rational software Flexible Deployment Customer Outsourcing 57

IBM Software Group | Rational software Benefits § Reduce outsourcing projects still have high failure rate 4 [DOORS] Requirement Repository to maintain the “Source of Trust” 4 [DOORS] Requirement Integrity through Traceability § Mitigate risks of using Subcontractors 4 [RQM] Real Time Quality Dashboard to increase Transparency 4 [RQM] Test Coverage visibility 4 [RQM] Defect Management § Improve your winning chance when outsourcing projects 4 Real Time Monitoring & Tracking during lifecycle 4 Full Lifecycle Traceability ensure No Missing Issue 4 Highly Quality project delivery 58

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