Business Activity Monitoring Business Management Presentations Process Management

The Path to Business Agility

Description

Seventy percent of the companies on the Fortune 1000 list ten years ago have vanished—many because they were unable to adapt to change. Companies face constant change and threats triggered by market and technology shifts. In the complex business world that we operate in today, companies must be able to adapt rapidly to the constant changes in the environment and customer behavior. Implementing agile software development practices is not enough to enable business agility. Business agility also requires the ability to rapidly change business processes, organization, skills, rules, data, and technology.

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Transcript

0© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Title Here
The Path to Business Agility
John
E
Parker,
CEO

Enfocus
Solu5ons,
Inc.

Enfocus
Solu+ons,
Inc

So8ware
and
Service
for
Business
Agility

1© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
John E. Parker
•  Chief Executive Oﬀicer of Enfocus Solutions Inc.
•  Previous Positions
o  EVP and CTO, MAXIMUS Inc.
o  Outsourced CIO, Enterprise Strategy Consultant
o  EVP and Cofounder, Spectrum Consulting Group
o  BAI Instructor of Finance and Banking
o  KPMG Partner
•  Expertise
o  Agile Development using Scrum and Kanban
o  Agile Portfolio and Program Management
o  Business Intelligence and Analytics
o  IS Service Strategy and Design
o  Enterprise Business Analysis
o  Collaborative Business Architecture
o  Business Process Improvement, Reengineering, and
Management
Contact:
•  http://enfocussolutions.com
•  info@enfocussolutions.com
2© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Compe++ve

Pressure

Disrup+ve

Technologies

Regulatory

Change

Customer

Demands
&

Expecta+ons

Economic

Instability

Security

Threats

Today’s Challenging Business Environment
Nega+ve

Social
Media

Impacts

3© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
The Problem
•  Seventy percent of the companies on the Fortune
1000 list ten years ago have vanished—many
because they were unable to adapt to change.
Companies face constant change and threats
triggered by market and technology shifts.
•  In the complex business world that we operate in
today, companies must be able to adapt rapidly to
the constant changes in the environment and
customer behavior.
•  Implementing agile software development
practices is not enough to enable business
agility. Business agility also requires the ability to
rapidly change business processes, organization,
skills, rules, data, and technology.
4© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Why
Customer
Experience?

•  Commodi5za5on
has
stripped
away
exis5ng
sources
of
diﬀeren5a5on.

•  Tradi5onal
industry
boundaries
have
dissolved.

•  Customers
have
more
power
than
ever.

Business
Impact
of
CX

CX
leaders
had
a
cumula5ve
43%
gain

in
performance
over
a
six-‐year
period

(2007
to
2012),
compared
with
a

14.5%
increase
for
the
S&P
500
Index

and
a
33.9%
decrease

for
CX
laggards

The Age of the Customer
Source:
FORRESTER
PERSPECTIVE:
The
Business
Impact
Of
Customer
Experience

5© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
What is Business Agility?
Agility is the ability of a business to
react quickly to change by:
•  Quickly sensing threats, problems
and opportunities and
•  Rapidly responding with solutions
that address business and customer
needs
•  By efficiently changing processes,
responsibilities, rules, data, and
technology
•  To Realize expected business and
customer outcomes.
6© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
PortfolioServiceStrategyBusinessChangeProgram
Business
Service
Technical
Service
Service DesignService Portfolio
Management
Customer Development
Launch
Improve
Retire
Business
Feature
Architecture
Feature
Business
Epic
Architecture
Epic
Epic
Backlog
PDIA – Plan-Do-Inspect-Adapt
Innovation Management Impacts, Gaps, and Risks Value Flow Management
Feature
Backlog
Collaborative
Business Architecture
Product Discovery
People Process
Data RulesTechnology
People Process
Data RulesTechnology
Release Planning and Management
Check
PerformanceLearn
Conduct
Experiments
Bundle Bundle Bundle
DevOps UX Devops RTEShared
Product
Management
Developers &
Testers
Scrum
Master
Product
Owner
Portfolio
Management
Product
Backlog
Negotiated Changes
Sprint 1 Sprint 2 Sprint 3 Sprint 4 HIP Sprint
Product
Backlog
Sprint 1 Sprint 2 Sprint 3 Sprint 4 HIP Sprint
Product
Backlog
Sprint 1 Sprint 2 Sprint 3 Sprint 4 HIP Sprint
Bundle
Bundle
Bundle
Bundle
Bundle
System Team
Validate Before Building
Continuous Veriﬁcation Develop on Cadence
Deliver on Demand
Outcome Based Services
Change
Experiment
Change Experiments Validated Learning
Dev Team
Dev Team
Outsourced
Team
Product
Backlog
Product
Backlog
Reusable Knowledge
Measure
Performance
Reduce
Waste
Hypothesis &
Assumptions
Bundle Bundle Bundle
Agile Release Train
Agile Product Development
SDP SDP
Managing Flow of Value and
Realization of Beneﬁts
Service
Management
Agile
Development
Team
Kanban Management Validated Learning
Lean Value Streams
Lean Business Agility Framework
Continuous Customer Engagement
MVPs/ExperimentsCustomer & Need
Pivots
Heuristics
Epic
Owner
Feature
Owner
Business
Sponsor
Enterprise
Architect
Service
Owner
Process
Owner
Change Team
Understand Impacts. Gaps & Risks
Eliminate Waste
Hypothesis and Assumptions
Address Real Problem or Need
© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Transformation
Epic
Utility
Warranty
Customer Experience
Transparency
Limit WIPVisualize Workﬂow
Manage Flow
Value Stream
Mapping
Participatory Design
Current State
Future State
Transformation Plan
Service Delivery Model
Learning
People Process
Data RulesTechnology
Team
Value Stream
Owner
Release
Management
Lean Budgeting and Accounting
Value Stream
Accounting
Lean-Agile
Budgeting
Innovation
Accounting
Business and Customer Outcomes
Lean Change Canvas
Hypothesis and Assumptions
Manage
Flow
Plan-Do-Inspect-Adapt
7© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Services

Epics

Features

Stories

Nego5ated

Changes

Impacts

Service

Design

PorHolio

Program

Team

Business

Change

Gain
an
understanding
of
customers
and
their
problems,
and
design
services
to

address
the
problems.
Monitor
services
and
related
components
to
ensure
they

are
cost
eﬀec5ve
and
deliver
value
to
the
customer.
Ac5ve,
planned,
and
re5red

services
are
maintained
in
the
Service
PorHolio.

Driven
by
business
opportuni5es,
mergers
and
acquisi5ons,
technological

change
and

market
threats,
por]olio
management
evaluates
and
priori5zes

Epics
represen5ng
approved
ini5a5ves
that
drive
business
value.
Each
Epic
is

analyzed
for
impacts,
gaps,
and
risks.
Epics
are
maintained
in
the
Enterprise

Epic
Backlog.

Roadmaps

Releases

Sprints

Tasks

Self-‐organizing
teams
are
empowered
to
design,
build,
and
test
their
feature

or
components.

Their
work
is
maintained
in
a
local
Product
Backlog
that
is

under
the
purview
of
the
team’s
product
owners.

Product
Management
decompose
Epics
into
Features.
Each
Feature
is
validated

to
ensure
it
solves
the
customers’
problem
and
delivers
value
to
the
business.

Features
are
road
mapped
and
allocated
to
releases.
Release
Management

work
closely
with
teams
to
plan
and
deliver
releases.
Features
are
maintained

in
a
Feature
Backlog
and
managed
using
Kanban.

Change
champions
use
Lean
Change
Methods
to
nego5ate
needed
changes
to

business
processes,
technology,
data
and
business
rules.
Closely
working
with

stakeholders,
change
experiments
are
deﬁned
and
executed
in
the
form
of

MVCs.
Learning
is
validated
and
adjustments
are
made
before
full
enterprise

deployment.
Work
is
managed
using
Kanban
and
coordinated
in
Release
cycles.

Validated

Learning

Managing Business Agility – The Big Picture
8© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Business Agility: New Roles for BAs and PMs
Business

Analyst

Requirements
are
now
deﬁned
as
stories
and
elaborated
through

conversa5ons
with
stakeholders.
The
tradi5onal
requirements

development
and
management
role
changes
signiﬁcantly
in
Agile.

New
Roles
for
Business
Analyst
are:

•  Service
Design

•  Product
Management

•  Business
Change
Management

•  Product
Owner

Project

Managers

Project
management
is
very
diﬀerent
in
an
Agile
environment.

Self-‐
organizing
teams
now
deﬁne
and
manage
their
own
tasks.

New
roles
for
Project
Managers
are:

•  Release
Train
Engineers

•  Por]olio
Management

•  Business
Change
Management

9© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Customers
Services
Business

Development

And
Test

Opera+ons
&

Support

Reduce
5me
to
obtain

and
respond
to

customer
feedback

and

design
needed

service
enhancements

Reduce
5me
to
enable

business
changes
to

support
service

enhancements

Balance
speed,
cost,
quality,

and
risk
through
con5nuous

delivery

Accelerate

so8ware
delivery

to
support

service
changes

Sa5sfy
customers

through
opera5onal

excellence

Business Agility
Con+nuous
Service
Improvement

Enterprise
Agile
Delivery

Customer
Needs
Valida8on
Service
Strategy
&
Design
Business
Change
Management

DevOps
Agile
Development

Impacts,
Gaps,
and
Risk
Customer
&
Market
Needs
Service
Design
Thinking

10© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Service
Strategy

&
Design

Customer

Needs

Valida+on

Business

Change

Management

Achieving Business Agility
1.
Enterprise
Agile
Delivery

•  Agile
Delivery
Teams
(Scrum
or
Kanban)

•  Agile
Por]olio
and
Program
Management

•  DevOps

2.
Service
Strategy
and
Design

•  Service
Por]olio
Management

•  Service
Delivery
Model

•  Service
Design

3.
Customer
Needs
Valida+on

•  Customer
Discovery

•  Customer
Valida5on

•  Customer
Experience

4.
Business
Change
Management

•  Collabora5ve
Business
Architecture

•  Impact
Analysis

•  Lean
Change
Management

Enterprise

Agile

Delivery

11© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Enterprise
Agile
Delivery

12© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Why Agile?
•  The agile process is the universal remedy for software development project failure.
•  The secret is the trial and error and delivery of the iterative process.
•  Software should be built in small, iterative steps with small, focused teams.
•  The project team delivers functionality in small bites or steppingstones.
So8ware
applica5ons
developed
through
the
agile
process
have
three
+mes
the
success

rate
of
the
tradi5onal
waterfall
method
and
a
much
lower
percentage
of
+me
and
cost

overruns.

Source:
Standish
Chaos
Report
2011

13© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Enterprise Agile Delivery
Enterprise

Agile

Delivery

Agile
Teams

(Scrum
or
Kanban)

Agile
Por]olio
and

Program

Management

DevOps

•  Self
organizing
teams
manage
day-‐to-‐
day
work
using
either
Scrum
or
Kanban.

•  DevOps

promotes
communica5on,

collabora5on
and
integra5on
between

so8ware
developers
and
IT
opera5ons
and

support
teams.

•  The
goal
is
to
support
rapid
or
con5nuous

deployment
of
releases
by
maximizing

predictability,
eﬃciency,
security
and

maintainability
of
opera5onal
processes.

•  Deﬁnes
and
priori5zes
epics
which
are

priori5zed
based
on
funding

•  Decompose
Epics
into
Features

•  Allocate
Features
to
Releases

•  Releases
are
built
by
a
group
of
agile

teams
called
an
Agile
Release
Train

14© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Enterprise Agile Delivery
Agile Teams (Scrum or Kanban)
Strategies
Outcomes

1.  Determine
ini5al
areas
to
apply
agile

2.  Determine
agile
methods
to
use
(e.g.
Scrum,

Kanban)

3.  Organize
and
collocate
ini5al
set
of
agile

teams

4.  Establish
ini5al
product
backlogs

5.  Deﬁne
methods
for
es5ma5ng
(story
points

or
ideal
hours)

6.  Provide
training
and
support
to
agile
teams

across
ﬁrst
few
sprints
un5l
team
veloci5es

are
known
and
established

7.  Develop
inspect
and
adapt
processes
using

retrospec5ves

8.  Deﬁne
agile
ceremonies

1.  Shorter
cycle
5mes
for
development
of

so8ware

2.  Higher
quality
and
lower
defect
density

3.  More
transparency
and
beker
visibility
for

agile
teams
and
the
business

4.  Higher
customer
sa5sfac5on

15© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Enterprise Agile Delivery
Agile Portfolio and Program Management
Strategies
Outcomes

1.  Chose
framework
for
scaling
agile

2.  Deﬁne
value
streams
and
align
teams
to

value
streams

3.  Design
release
planning
process

4.  Standardized
methods
for
deﬁning
and

priori5zing
Epics

5.  Develop
process
to
prepare
roadmaps

6.  Enable
visualiza5on
of
work
at
the
por]olio

and
program
level

7.  Modify
budget
and
accoun5ng
processes
to

support
agile

8.  Modify
stakeholder
review
and
approval

processes

9.  Deﬁne
new
roles
and
responsibili5es
for

agile
por]olio
and
program
management

•  Release
Train
Engineer

•  Product
Management

•  Por]olio
Manager

1.  Shorter
cycle
5mes
for
development
of
ideas

to
delivery
to
the
business

2.  Delivery
of
more
business
value
achieving

beker
business
outcomes

3.  Coordinated
release
management
across

mul5ple
teams
in
the
value
stream

4.  More
transparency
and
beker
visibility
for

agile
teams
and
the
business

5.  Quicker
and
higher
ROI

16© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Enterprise Agile Delivery
DevOps
Strategies
Outcomes

1.  Conduct
planning
mee5ngs
to
deﬁne
the
culture

and
capabili+es
to
support
DevOps.

•  Real
5me
change
control

•  User
access
control

•  Automa5on

•  Visibility
and
control

•  Conﬁgura5on
management

2.  Iden5fy
quick
wins
to
enhance
communica5ons

and
coordina5on
between
the
two
groups

3.  Discuss
types
of
releases,
dura5on
of
releases,
and

changes
that
need
to
be
made
to
the
current

release
management
process

4.  Evaluate
how
process
is
currently
automated
and

explore
opportuni5es
for
addi5onal
automa+on

5.  Explore
opportuni5es
for
using
cloud
technologies

to
quickly
provision
new
environments

6.  Ini5ally
implement
procedures
to
support

con+nuous
integra+on

7.  Later,
implement
procedures
or
prac5ces
to

support
con+nuous
deployment

8.  Assess
risks
and
ﬁnd
ways
to
manage
and
control

risks

1.  Shorter
cycle
5mes
for
development
of
so8ware

2.  Higher
quality
and
lower
defect
density

3.  Coordinated
release
management
across
mul5ple

teams
in
the
value
stream

4.  More
transparency
and
beker
visibility
for
agile

teams
and
the
business

17© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Challenges Scaling Agile
•  Overcoming cultural problems
•  Achieving transparency and visibility into what is
happening in the business and across multiple
teams.
•  Realigning roles and responsibilities
o  Transforming PMs and BAs to new roles
o  Transitioning QA and testing to teams
•  Applying agile to other IT areas that are not
software development: ERP, Infrastructure, etc.
•  Overcoming process inconsistencies that have
evolved among various Agile teams
•  Extending agile to business change activities
•  Overcoming issues relating to long review/
approval cycles.
•  Overcoming the potential conflicting goals
between operations and development.
18© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Agile Scaling Frameworks
•  Scaled Agile Framework (SAFe) was developed by Dean Leﬀingwell as an
Agile framework that provides an Agile approach based on team, program,
and portfolio levels.
•  Disciplined Agile Delivery Framework (DAD) was developed by Scott Ambler
and is more of a lightweight, hybrid project-level framework.
•  Managed Agile Development Framework – The Managed Agile Development
Framework, developed by Charles Cobb, is a hybrid project-level framework
that was originally designed to apply an Agile development process to a large
and complex, fixed-price government contract. It is somewhat “heavier
weight” than both the SAFe and DAD frameworks, but it can be scaled down
easily if necessary.
19© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
The Dilemma Between Development and Operations
Development
Wants

Rapid
Change

Measured
by
amount
of

valuable
soKware
delivered

Opera+ons
Wants

Stability

Over
80%
of
outages
are

caused
when
making
changes.

The
Business
Wants
Both

Features
are
needed
for
increased

revenues
and
growth.
Outages
cost
the

business
signiﬁcant
dollars

Is
DevOps
the
Answer?

DEVOPS

DevOps
is
a
culture
that
emphasizes
collabora5on
and
integra5on
between
so8ware
developers,

testers
and
IT
opera5ons
staﬀ
to
improve
reliability
and
security
and
achieve
faster
development

and
deployment
of
so8ware.

20© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Service
Strategy
and
Design

21© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Service Strategy and Design
Service
Strategy

and
Design

Service
Por]olio

Management

Service
Delivery

Model

Service

Design

•  Deﬁnes
what
services
are
oﬀered

•  Iden5ﬁes
service
enhancements
(epics)

needed
to
sa5sfy
customer
needs.

•  Determines
which
services
need
to
be

re5red
or
replaced
to
reduce
cost,
meet

customer
demand,
and
gain
a
compe55ve

advantage.

•  Deﬁnes
how
demand
and
supply
for
a

group
of
services
is
managed?

•  Services
are
op5mized
for
opera5onal

eﬃciency
and
to
meet
customer
needs.

22© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Service Strategy and Design
Service Portfolio Management
Strategies
Outcomes

1.  Deﬁne
business
services
to
support
strategic

capabili5es

2.  Deﬁne
technical
services
needed
to
support

business
services

3.  Ra5onalize
the
applica5on
por]olio
to

reduce
costs,
improve
agility,
and
free
up

funds
to
support
transforma5on.

4.  Iden5fy
opportuni5es
for
further
savings
by

ra5onalizing
the
service
por]olio

5.  Implement
lean
budge5ng
and
accoun5ng

prac5ces

6.  Implement
service
por]olio
management

prac5ces
for

•  Launching
new
services

•  Re5ring
services

•  Enhancing
services

7.  Design
and
implement
Con5nual
Service

Improvement
process
to
constant
improve

services
and
service
delivery

1.  Beker
alignment
between
IT
and
the

Business
through
providing
services
needed

to
supports
strategic
capabili5es

2.  Signiﬁcant
cost
reduc5ons
in
terms
of

consolida5ng
service
oﬀerings
and
related

applica5ons

3.  Beker
business
outcomes
by
focusing
on

services
needed
to
support
business
strategy

23© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Service Strategy and Design
Service Delivery Model
Strategies
Outcomes

1.  Design
eﬃcient
service
delivery
model
using

lean
value
streams
focusing
on
delivering
a

superior
customer
experience

2.  Achieve
opera5onal
excellence
through

elimina+on
of
non-‐value
ac+vi+es

3.  Build
eﬀec5ve
supplier
management

processes

4.  Transform
IT
to
become
a
service
broker

1.  Signiﬁcantly
shorter
request
to
delivery
cycle

5me.

2.  Signiﬁcant
cost
reduc5on
through
lean

service
delivery
model

3.  More
eﬃcient
sourcing
and
supply
chain

through
enhanced
supplier
management

process

4.  Greater
customer
sa5sfac5on
and
loyalty

resul5ng
in
higher
renewal
rate
and
more

referrals

24© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Service Strategy and Design
Service Design
Strategies
Outcomes

1.  Document
warranty
for
each
service
using

service
level
requirements

•  Availability

•  Capacity

•  Security

•  Con5nuity

2.  Use
Features
to
document
service
u+lity

3.  Iden5fy
and
document
customer

touchpoints
to
achieve
consistent
customer

experience

4.  Simplify
services
through
removing
non-‐
value
added
func5onality,
removing

complexity,
and
replacing
costly
components

5.  Build
ﬂexible
service
components

suppor5ng
analy5cs,
cloud,
and
mobile

technologies

6.  Use
Enfocus
Solu5ons
so8ware
to
support

Service
Design
ac5vi5es
and
maintain
SDPs.

1.  Beker
alignment
between
IT
and
the

Business

2.  Enhanced
infrastructure
elas5city
through

integra5on
of
cloud
and
managed
services

3.  Beker
customer
experience
though

consistent
management
of
customer

touchpoints

4.  Greater
customer
loyalty
resul5ng
in
higher

renewal
rate
and
more
referrals

5.  Provide
features
that
customers
want

6.  Achieve
higher
renewal
and
referral
rates

25© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
2001
2006
2011
2016

Infrastructure

Only

Infrastructure
&

Applica5ons

Business
Shared

Services

IT
Process
Op+miza+on
(ITIL)

Standard
opera5onal
processes
(e.g.,

problem
or
incident
management)
to

ensure
predictable
delivery

Infrastructure
Services

Hos5ng,
network,
and
storage
become

orderable
services
in
a
service
catalog

End-‐to-‐End
IT
Services

Packages
all
the
technologies,
processes,
and

resources
across
IT
needed
to
deliver
a
speciﬁc

business
outcome
while
hiding
technical
complexity

Business
Shared
Services

Combines
IT
and
non-‐IT
resources

required
to
deliver
a
speciﬁc

business
outcome

Evolution of Service Management
Limita+on:

Needs
Strong

CEO
Support

Limita+on:
Infrastructure
alone

is
unable
to
drive
business

outcomes
or
solve
business
needs

Limita+on:
Business
does
not
directly
see
the
beneﬁts

Infrastructure
services
and
end-‐to-‐
end
IT
services
can
coexist.

The
move
to
deliver
IT
within
business

services
has
diﬀerent
origins
and

usually
emerge
outside
IT.

Source:
CEB
CIO
Execu5ve
Board

26© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
What is Service Portfolio Management?
•  The main goal of service portfolio management is to
manage the right mix of services to:
o  Maximize the realization of value to the business
o  While balancing risks with the costs.
•  Aligns IT to the business through defining the portfolio
of services that IT oﬀers and gaining an understanding
of how they provide value to the business.
•  Provides a better understanding of customer
requirements and delivery costs to continually find
ways to reduce delivery costs while improving business
outcomes.
27© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Service Portfolio vs. Service Catalog
•  An IT Service Portfolio describes services in terms of
business value, specifying what the services are, how
they’re bundled or packaged and what business benefits
they provide. It’s articulated from the customer’s
perspective and answers the questions:
o  “Why should I buy this service?”
o  “How much do I need to budget for IT services?” and
o  “Why should I buy it from my internal provider rather than
an external service provider (ESP)?”
•  An IT Service Catalog is a service order and demand-
channeling mechanism. It takes services that are defined
in the service portfolio and describes them as oﬀerings
that a customer can buy through an online service
catalog.
28© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Start with Service Portfolio Not the Service Catalog
•  According to Gartner, many IT departments
developed an IT service catalog composed of
technical services such as applications, platforms or
servers that are simply a reflection of functional
silos within IT and not aligned with business need or
outcomes
•  As a result, these IT organizations have continued to
be self-focused at the expense of delivering business
value.
•  Gartner predicts that IT organizations that
developed their IT service catalogs prior to their IT
service portfolios will suﬀer additional costs of
overhauling the service catalog once the portfolio is
defined.
Source:
Document
the
IT
Service
Por]olio
Before
Crea5ng
the
IT
Service
Catalog,
Gartner,
January,
2009

29© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Procure
to
Pay

Service

Order
to
Cash

Service

Hire
to
Re5re

Service

Service
PorHolio

Services
Suppor+ng
Business
Capabili+es

Product
PorHolio

Accounts

Payable

Purchasing

Mobile

Purchase

Order
App

Purchasing

Analy5cs

Accounts

Receivable

Customer

Rela5onship

Management

Order

Management

Sales

Analy5cs

Payroll

Human

Capital

Management

Learning

Management

Employee

Web
Portal

Storage
Servers
Network

Database

Management

Security

Agile Service Portfolio
Applica+on
So^ware
Services
(Teams)

Infrastructure

Services
(Teams)

30© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
What is a Service Delivery Model?
•  A Service Delivery Model defines how Demand and Supply are
managed for a group of services.
•  The Service Delivery Model addresses the following Demand
functions
o  How are services ordered
o  How are customer relationships managed
o  How are customer needs and expected outcomes identified
o  How are service enhanced and new innovations introduced
•  The Service Delivery Model addresses the following Supply
functions
o  How is the service delivered
o  How suppliers are managed
o  How service problems and incidents are managed
o  How is service performance measured
o  How are service enhancements developed and delivered
An
eﬃcient
Service
Delivery
Model
is
key
for
an
agile
enterprise.

31© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
It
takes
more
than
just
implemen5ng

agile
development
prac5ces
to
make

an
agile
enterprise.

Service Delivery Model
Business

Development

Infrastructure
&

Opera+ons

Customers
Users

Product

Managers

Business

Leaders

Finance

Compliance

HR

Team

Team

Team

Team

External

Customers

Internal

Customers

Service

Desk

Security
Opera5ons

Infrastructure

DBA

Releases

Needs

Marke5ng

So8ware
Requests

Support

Services

Support

32© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
How Waste and Blockages Occurs
Business

Development

Infrastructure
&

Opera+ons

Customers
Users

Product

Managers

Business

Leaders

Finance

Compliance

HR

Team

Team

Team

Team

External

Customers

Internal

Customers

Service

Desk

Security
Opera5ons

Infrastructure

DBA

Releases

Needs

Marke5ng

So8ware
Requests

Support

Services

Support

Not

Using

MMFs

Not

Involved

Not

Priori5zing

Features

Not
Doing

Incremental

Development

Tes5ng

Involved
a8er

Development

Not

Involved

Upfront

Rigid

Release
&

Deployment

Don’t

Understand

Big
Picture

Needs
Not

Validated

Slow

Adop5on

Slow

Approvals

33© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Corporate IT as Service Broker
•  For many organizations, IT is evolving from
developing custom applications to being a broker
of third-party applications and technologies
provided through the cloud.
•  Enterprises are transitioning from operating their
own infrastructure and applications to a mix of
cloud services and on-premise applications.
•  The Cloud is helping IT organizations transform
from being a bottleneck to facilitating corporate
agility.
•  A well designed service delivery model helps
facilitate this transformation in IT.
34© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Stakeholder
Maps
Service
Safaris

Shadowing
Personas

Story

Telling

Service

Blueprints

Drama

Coaching

Customer

Lifecycle
Maps

Business
Model

Canvas

Idea
Genera5on
What
If…
Design

Scenarios

Storyboards

Customer

Journey
Maps

Contextual

Interviews

The
Five

Whys

Cultural

Probes

Mobile

Ethnography

Day
in

The
Life

Expecta5on

Maps

Desktop

Walkthroughs

Service

Prototypes

Service

Staging

Agile

Development

Co-‐Crea5on

Service Design Thinking Techniques
35© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Touchpoints

Encounters
where
the
organiza5on
and
its

customers
engage
to
exchange
informa5on,

provide
services,
or
process
transac5ons.

Digital
Touchpoints

Touchpoints
where
the
encounter
occurs

through
means
of
electronic
devices,
media

or
content,
such
as
a
mobile
phones,
web

sites
or
social
media.

Touchpoints
36© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Customer
Needs
Valida+on

37© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Customer Needs Validation
Customer

Needs

Valida5on

Customer

Discovery

Customer

Valida5on

•  Deﬁne
Minimum
Viable
Products
(MVP)

to
test
assump5ons

•  Validate
learning
through
conduc5ng

various
experiments?

•  Start
with
hypothesis
and
assump5ons

•  Document
who
the
customers
and
users

are
using
personas

•  Document
user
ac5vi5es
using
scenarios

Customer

Experience

•  Understand
customer
experience
by

deﬁning
touchpoints
and
customer

journeys

•  Op5mize
overall
customer
experience

across
func5onal
delivery
teams

38© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Customer Needs Validation
Customer Discovery
Strategies
Outcomes

1.  Ensure
you
are
building
something
the

customer
wants
using
Lean
Startup
concepts

a.  State
hypothesis

b.  Test
problem
hypothesis

c.  Test
product
concept

d.  Inspect
and
Adapt

2.  Deﬁne
Epics
and
Features
star5ng
with

hypothesis
and
assump5ons.

•  Customer
–
Who
is
using
the
product

•  Problem
–
What
problem
do
they
have

•  Solu+on
–
How
will
you
solve
the
problem

3.  Develop
techniques
for
customer
discovery

interviews

4.  Gain
beker
understanding
of
customer

problems
through
using
personas,
scenarios,

needs,
and
use
cases.

5.  Iden5fy
and
evaluate
poten5al
solu5on

op5ons
using
MVPs

6.  Ensure
problem/solu+on
ﬁt

1.  Save
Time
and
Money
by
discovering
early

on
if
something
won’t
work.

2.  Make
course
adjustments
before
you
build
a

large
product

3.  Reduce
development
costs
(Every
hour
spent

on
customer
development
saves
5
hours
or

more
of
code
and
test.)

4.  Lower
development
and
opera5onal
cost
by

not
building
features
that
will
not
be
used.

5.  Avoid
costly
mistakes
by
not
building

products
customers
do
not
want

6.  Increased
transparency
and
visibility
into

customers
and
their
needs

7.  Increase
innova5on
through

experimenta5on

8.  Gain
a
compe55ve
advantage
through

developing
products
customers
want

39© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Customer Needs Validation
Customer Validation
Strategies
Outcomes

1.  Validate
hypothesis
and
assump+ons

using
MVPs
with
itera5ve
cycle.

•  Get
Ready
to
Sell
(Implement)

•  Sell
to
visionary
customers

•  Develop
posi5oning

•  Inspect
and
Adapt

2.  Build
eﬀec5ve
procedures
for
Inspect

and
Adapt.

3.  Ensure
product/market
ﬁt
before

building
the
product

4.  Involve
Customers
in
valida+on
process

using
Lean
Startup
techniques

5.  Pivot
when
hypothesis
or
assump5ons

are
proved
wrong

1.  Lower
development
and
opera5onal

cost
by
not
building
features
that
will

not
be
used.

2.  Reduce
developer
frustra5on
and
costs

by
valida5ng
need
before
building

solu5on

3.  Gain
a
compe55ve
advantage
by
being

able
to
deliver
products
that
customers

want.

40© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Customer Needs Validation
Customer Experience
Strategies
Outcomes

1.  Provide
product
management
teams

training
on
customer
experience

2.  Document
touchpoints
and
create

customer
journey
maps

3.  Create
low
ﬁdelity
prototypes
where

needed

4.  Incorporate
service
design
thinking

techniques
in
design
of
services
and

products

1.  Lower
development
and
opera5onal

cost
by
not
building
features
that
will

not
be
used.

2.  Achieve
business
value
more
rapidly

though
faster
and
wider
user
adop5on

3.  Reduce
developer
costs
and
frustra5on

through
beker
understanding
of
need

4.  Signiﬁcantly
improve
customer
loyalty

through
enhanced
customer
experience

5.  Gain
a
compe55ve
advantage
by
being

able
to
deliver
products
that
customers

want.

41© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Source: Jim Johnson, Chairman of Standish Group, quoted in 2006 in:
http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS
The
Problem:

64%
of
Func+onality
is
Rarely
or
Never
Used

The
Cause:

Poor
Discovery
and
Valida+on

The
Result:

Higher
Costs,
Lower
Value,
Longer
Cycle
Times

42© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
What is Customer Development?
Customer
Development
is
a
four-‐step
framework
developed

by
Steve
Blank
to
discover
and
validate
that
you
have

iden5ﬁed
the
market
for
your
product,
built
the
right
product

features
that
solve
customers’
needs,
tested
the
correct

methods
for
acquiring
and
conver5ng
customers,
and

deployed
the
right
resources
to
scale
the
business.

43© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Business
Change
Management

44© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Business Change Management
Business

Change

Management

Collabora5ve

Business

Architecture

Impact

Analysis

•  Assess
impacts,
gaps,
and
risk
for
every

Epic

•  Manage
necessary
business
changes
for

every
Feature

•  Document
what
is
required
to
run
the

business
including
capabili5es,
processes,

people,
services,
data,
and
rules

•  Use
knowledge
management
prac5ces
to

manage
architecture

Lean
Change

Management

•  Use
Change
Canvas
to
document

hypothesis
and
assump5ons

•  Approach
change
in
small
steps
by

deﬁning
MVCs

•  Validate
learning
using

validated
change

cycle

•  Transparency
and
visibility
are
essen5al

45© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Business Change Management
Collaborative Business Architecture
Strategies
Outcomes

1.  Develop
and
implement
Collabora+ve

Business
Architecture
for:

•  Business
Processes

•  Enterprise
Data

•  Stakeholders

•  Business
Rules

•  Services

2.  Maintain
catalog
of

customer
and
user

personas
to
use
in
Service
Design
and

development
of
user
stories

3.  Determine
accountability
for

maintaining
and
suppor5ng
knowledge

4.  Deﬁne
governance
structure
to

maintain
architecture

5.  Increase
transparency
and
visibility

6.  Incorporate
maintenance
and
use
of

the
CBA
into
the
ﬂow
of
work

1.  Enable
business
changes
more
rapidly

by
having
the
informa5on
available
to

make
decisions
and
understand
how

things
work

2.  Delivers
transparency
and
clarity
to

enable
stakeholder
collabora5on,
issue

analysis,
and
problem
resolu5on

3.  Establish
a
common
vocabulary
across

teams
by
providing
knowledge
of
how

the
business
operates

4.  Provides
mechanism
to
align
so8ware

changes
with
business
process
changes

5.  Helps
ensure
so8ware
supports

op5mized
lean
business
processes

instead
of
“just
repaving
the
cow
path”

46© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Business Change Management
Impact Analysis
Strategies
Outcomes

Epics

1.  Assess
gaps,
risks,
and
impacts
for

architecture
and
business
epics

2.  Visualize
impacts
at
por]olio
and
program

level

3.  Implement
agile
methods
to
manage

impacts
and
risks

4.  Create
Epics
for
organiza5onal
change
or

transforma5on
ini5a5ves

Features

1.  Nego5ate
changes
to
resolve
gaps
and
risks

2.  Develop
eﬀec5ve
methods
to
improve

transparency
and
increase
stakeholder

engagement

3.  Create
features
to
document
hypotheses

and
assump5ons
for
change
experiments

1.  Addresses
complex
regulatory
and

compliance
issues
in
agile
environment

2.  Avoid
surprises
and
reduce
risk

3.  Respond
to
threats
and
opportuni5es
more

quickly
and
eﬀec5vely

47© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Business Change Management
Lean Change Management
Strategies
Outcomes

1.  Transi5on
from
tradi5onal

organiza5onal
change
methods
to
Lean

Change
Management
Methods
using

•  Change
Canvas

•  Change
Experiments

•  Agile
methods
(Kanban)

•  Validated
Learning

2.  Develop
eﬀec5ve
methods
to
nego5ate

Changes
with
stakeholders
and
improve

stakeholder
engagement

3.  Increase
transparency
and
visibility

1.  Align
so8ware
changes
with
needed

business
changes

2.  Achieve
faster
and
wider
user
adop5on

3.  Enable
business
changes
more
rapidly

4.  Helps
ensure
so8ware
supports

op5mized
lean
business
processes

instead
of
“just
repaving
the
cow
path”

48© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
•  Gain
insight
into
Impacts,
Gaps,
and
Risks

•  Visualize
work
at
the
Por]olio,
Program
and
Team

Level

•  Make
everything
visible
between
team
and
among

teams

•  Enables
Coordina+on
of

agile
business
ac5vi5es

with
development
team
ac5vi5es

•  Maintain
collabora+ve
business
architecture
so
that

agile
teams
understand
and
support
the
big
picture

•  Understand
business
outcomes
for
every
Epic,

Feature,
and
Story

Transparency and Visibility
49© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Process

Owner

Release

Manager

Technical
SMEs

Quality

Assurance

Business
SMEs

Service

Owner

Collaborative Business Architecture
Developer
Business

Analyst

50© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Risk Management
The Issue
For most organizations, there tends to be a poor understanding of the risk that IT has
on the business.
•  Business leaders fail to realize the significant business impact IT risks can have
because they do not understand the technology.
•  IT may not have a full understanding of how the business relies on the
technology.
•  Failing to address this gap places an organization in jeopardy.
•  The speed of agile only exacerbates this situation.
The Answer
IT must partner with the business to ensure mutual understanding of the business
impact of IT risks. When this occurs, technology risks can be addressed and managed in
conjunction with business change. This can be achieved through:
•  Developing a Collaborative Business Architecture to provide visibility of the
relationships between IT services and the business.
•  Identifying Impacts where IT and the business can collaborate to identify risks
minimizing the eﬀect on cycle time.
•  Assigning accountability to IT or business staﬀ to monitor and mitigate each
identified risk?
•  Providing visibility of the impacts and associated risk to agile IT and business
teams
51© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
So8ware

Por]olio
Program
Team

Epics

Epics

Feature

Feature

Feature

Story

Story

Story

Story

Story

So^ware
Delivery

Value
Discovery

Investment
Funding

e

People
Process
Technology
Data
Rules

Impact

Business
Change

Impact

Impact

Impact
Impact

Impact

Impact

Impact

Impact
Impact

Impact

Change

Change

Change

Change

Change

Change

Change

Change
Change

Change

Change

Nego+ated
Changes

Impacts,
Gaps,

and
Risks

Task

Task

Task

Task

Task

Task

Task

Understand Impacts of Change
52© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
The Lean Change Method
Core Concepts
•  Co- Creation and Collaboration
•  Negotiated Change
•  Validated Learning
•  Use Kanban to Manage Changes
•  Change Canvas
•  Minimum Viable Changes (MVC)
•  Validated Change Cycle
•  Change Pivots
•  Capability and Performance Metrics
•  Cadence
•  Modular Components usable in isolation
53© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
Enfocus Solutions
Software and Services for Business Agility
•  We provide services and software to help companies achieve Business Agility.
•  Strategy Services – We can help you define a comprehensive strategy and approach
for business agility that will work for your organization.
•  Implementation Services – In addition, we can help you with many of the
implementation tasks along the way such as:
o  Rationalizing your Application Portfolio
o  Defining your Service Portfolio
o  Implementing Service Design Processes
o  Implementing Customer Development Practices
o  Scaling Agile to the Enterprise
o  Addressing complex risks and compliance issues
o  Designing and testing lean business change management experiments
o  Developing and implementing a Collaborative Business Architecture
o  Retooling your business analysts, and project and program managers to transition to agile
•  Software – designed to fully support enterprise business agility. Component of implementation
services oﬀering to accelerate delivery of desired business outcomes.
54© Copyright 2014 Enfocus Solutions Inc. All Rights Reserved.
The
End

The Path to Business Agility

Description

Transcript

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