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Real Insights. Real Results.
                   Software Development and Delivery in Competitive Times


                                     Steve Robinson
                                      Vice President
                                   IBM Rational Software

                                   Select View/Master/Slide Master to add Session Number Here



© 2009 IBM Corporation
IBM Rational Software Conference 2009

Nehru Trophy Boat Races


                                        132 feet in length
                                        1 year to build
                                        1250 cubic feet of wood
                                        350 KG of Iron
                                        35 KG Bronze
                                        91 oarsmen
                                        4 helmsmen
                                        16 singers




                                                                  2
IBM Rational Software Conference 2009


Today’s Discussion: Real Results


   Rational Strategy Review


   Our Approach to Real Results


   Time to Get Real




                                        3
IBM Rational Software Conference 2009


The evolution of Rational strategy


             2006                             2007                      2008
             Strategic                        Strategy                 Strategy
            Imperative                       Announced                 In Action


      Accelerating                  Deliver value efficiently    Helping guide you
       software                        and effectively in        from the cathedral
 development evolution             distributed organizations        to the bazaar


        Empowerment                     Enabling governance      Ship early
        Modularity                      Adopting flexible        Ship often
        Communities                     architectures            Listen to your customers
                                        Leveraging communities




                                                                                            4
IBM Rational Software Conference 2009


Rational strategy in action over the past year
   CONTINUED DELIVERING on the promise and vision
   of a flexible Jazz architecture
      Shipping early, shipping often with a transparent
      product development on Jazz.net
      Delivering 8 Jazz-built products and 18 Jazz-enabled products

   CONTINUED EXPANDING Rational communities
   to listen to our customers and partners
      Launched Open Services for Lifecycle Collaboration initiative

   CONTINUED INVESTING to evolve current portfolio
      73 product releases in 2008
      Acquisition of Ounce Labs for Static Security testing.


   EXTENDED REACH into systems engineering
   by integrating Telelogic
                                                                      5
IBM Rational Software Conference 2009


Rational strategy in a broader context:
The world needs to get a whole lot smarter




     INSTRUMENTED                       INTERCONNECTED                 INTELLIGENT


   We now have the ability          People, systems & objects     We can respond to changes
     to measure, sense                   can communicate          quickly & accurately, & get
       & see the exact              & interact with each other    better results by predicting
   condition of everything.            in entirely new ways.     & optimizing for future events.




                                                                                              6
IBM Rational Software Conference 2009




           What could you do
           if all objects were
               intelligent…




                                        …and connected?



                                                          7
IBM Rational Software Conference 2009

  What could you do with
  unlimited computing
  power… for pennies?




                                                Could you identify
   Could you predict the path                         another 20%
      of a storm down to the                of proven oil reserves
           square kilometer?            without drilling one hole?
                                                                     8
IBM Rational Software Conference 2009




        Success in building a smarter planet is highly dependent on
        our ability to manage effective software and systems delivery

                                             …or with a billion-
                                                 person
                                               workforce?
  What could you do
  with a million-person
  product development lab…




                                                                        9
IBM Rational Software Conference 2009


Challenges to effective software delivery remain and expand




   Individual                  Team            Organizational             Business
   Challenges                Challenges         Challenges               Challenges
 Lack of standards          Geographically     Greater need             More granular
 impacts ability            dispersed teams    for market               service functionality
 to collaborate,                               experimentation          and composite
 automate and report        Effective cross-                            applications
                            organizational     Blind adherence
 Frequent asset             visibility and     to process insensitive   Growing number of
 updates and                synchronization    to potential business    assets including
 complex                                       trade-offs               custom, outsourced
 dependencies                                                           and packaged
                                               Need for agility@scale




                                                                                            10
IBM Rational Software Conference 2009


Economic conditions add significant pressure to the reality
of software and systems delivery


                                                                                    Transformation and
       A new approach to                 Companies successfully
                                                                             innovation will lead recovery.
    IT delivery models and              addressing the challenges
                                                                              When we come out the other
 sourcing options is required             [of delivering product
                                                                               side of this crisis, companies
  that allows IT organizations          innovation from software]
                                                                             will look different – technology
   to be more responsive to                are driving higher
                                                                                will have been a catalyst
 the needs of the business.                    profitability.
                                                                                     in those changes.
       Barbara Gomolski, Gartner          Michelle Boucher, Aberdeen Group       George Colony, Forrester Research,
            October, 2008                            March, 2009                          October, 2008




                                                                                                                      11
IBM Rational Software Conference 2009


Rational strategy can bring focus in uncertain times

   Provides measured, short-term Return on Investment

   Enables longer-term management of Return on Assets


   Delivers a platform and processes to make
   those returns come to life


   Encourages and informs, rather than dictates


   Supports incremental improvement,
   leading to faster decision making



                                                        12
IBM Rational Software Conference 2009


A maturing approach to software and systems delivery
based on measurement




     Business
        Value

                                                                             Software
                                                                            investment
                                                                           management
    Efficiency                                                             aligned with
                                                            Predictable    business and
                                                            governance      operational
                                                             and asset       priorities
                                              Global         utilization
                                          effectiveness
                                        and collaboration
       Control         Productivity
                         through
                       automation


                        Individual            Team          Organization      Business


                                                                                          13
IBM Rational Software Conference 2009


Realized by continuous improvement on business objectives

                                                                                          Improve business flexibility
                                                                                          and lower costs / risk
                                                                  Accelerate progress     Improve stakeholder
                                                                  Reduce scrap / rework   satisfaction and output
                                                                  Reduce cost of change

     Business
                                         Improve team productivity
        Value
                                         Reduce custom training
                                         and tooling variants
                                                                                              Software
                                                                                             investment
                    Reduce human error                                                      management
    Efficiency                                                                              aligned with
                    Reduce manual tasks                                Predictable          business and
                    Improve release quality                            governance            operational
                                                                        and asset             priorities
                                                    Global              utilization
                                                effectiveness
                                              and collaboration
       Control          Productivity
                          through
                        automation


                         Individual                 Team               Organization             Business


                                                                                                                     14
IBM Rational Software Conference 2009

   Invest to manage risks and optimize measured outcomes

                                              Improve              Improve              Improve            Increase Flexibility
                                             Automation          Collaboration          Process            & Investment Value

                                                Cost to             Cost to              Cost to           Cost to Implement:
                                              Implement:          Implement:           Implement:             25%-50%
          Business                               <5%               5%-10%             10%-35%                Much culture change
           Value                              Very predictable      Predictable      Some culture change
                                                                                                              Productivity:
                          ECONOMIC IMPACTS




                                             Productivity:       Productivity:        Productivity:           50-200+%
                                                5-25%              15-35%              25-100%               Timeframe = Years
                                             Timeframe = Days    Timeframe = Weeks   Timeframe = Months




         Efficiency




            Control


Implementation costs                           Individual             Team            Organization             Business
are per person per year


                                                                                                                                   15
IBM Rational Software Conference 2009


Pragmatic steps we took to mature our own software delivery


         1      Established business and operational objectives


         2      Prioritized practices and defined implementation roadmap



         3      Accelerated practice adoption with Rational products
                and programs – “Tools, Not Rules”


         4      Reported, analyzed, and regularly acted on our results




                                                                           16
IBM Rational Software Conference 2009


  1 Established business and operational objectives


                                        Improve market share
                Business
                Objectives              Achieve profit margin
                                        Reduce time-to-value


                                             Heighten responsiveness and increase
                     Operational             linkage to customers
                     Objectives              Innovate to differentiate and capture new value
                                             Increase quality
                                             Shorten project development cycle times
                                             Improve schedule predictability




                                                                                               17
IBM Rational Software Conference 2009


  2      Prioritized practices and defined implementation roadmap


                                       Change and Release Management                          Initial Rational
                                           Team Change Management
                                                Change Management                                 Focus Area
                                           Formal Change Management
  Requirements Management                                                Quality Management
    Shared Vision
    Shared Vision                                                         Concurrent Testing
                                                                          Concurrent Testing
    Use-Case-Driven Development
    Use-Case-Driven Development                                           Test Management
                                                                          Test Management
    Requirements Management
    Business Process Sketching
                                             Agile Core                   Independent Testing
                                                                          Performance Testing
                                            Iterative Development
                                            Iterative Development
                                                                          Application Vulnerability Assessment
                                            Two-Level Project Planning
                                            Two-Level Project Planning
                                            Whole Team
                                            Whole Team
  Governance and Compliance                                              Architecture Management
                                            Continuous Integration
                                            Continuous Integration
    Risk-Value Lifecycle                                                  Evolutionary Architecture
                                                                          Evolutionary Architecture
                                            Test-Driven Development
                                            Test-Driven Development
    Practice Authoring and Tailoring                                      Evolutionary Design
    Performance Measurement
    Performance Measurement                                               Component Based Software Architecture
                                                                          Design Driven Implementation




                                                                                                                 18
IBM Rational Software Conference 2009


 3 AcceleratedCore practices to improve cycle times and predictability
   Leveraged Agile
                   practice adoption with Rational products


   Required adoption of agility@scale
      2,000+ developers, testers, managers               Rational Results
                                                100%                                              18
      Varying team sizes                                            Release Cycle Times
                                                                         (in months)              16
                                                90%
      Geographically distributed locales                                                          14
                                                80%
                                                                                                  12
      Diverse development contexts
                                                70%                                               10
         from mature products to Web 2.0 apps   60%                   On-time Delivery            8
                                                                                                  6
   Embraced Rational Team Concert               50%
                                                                                                  4
                                                40%
      In past year, RTC:                                                                          2
                                                30%                                               0
        Projects grew by 291%                                2007          2008           2009*
                                                *Projected
        Number of users grew by 321%




                                                                                                       19
IBM Rational Software Conference 2009


 3 Accelerated practice Change & Release Management programs
   Leveraged Requirements and
                              adoption with Rational
                                                     practices


Increased customer involvement,
                                                          Rational Results
building on “Whole Team” agile practice             90%
                                                            Beta reported defects
   Design Partner Program growth of 352%            75%     fixed in GA releases
   since 2006                                               RFEs included
                                                    60%
                                                            in GA releases
   Transparent, iterative development on Jazz.net
                                                    45%
     5 products available today                     30%

     Over 17,000 participants in Jazz forums        15%

   VoiCE sessions expanded to India and China       0%
                                                                 2007                2008
   Lab Advocacy program has grown 567%
   since 2005                                        Customer satisfaction up 4 years in a row

   Beta programs doubled in 2008 to 35
     12x growth in open beta downloads



                                                                                                 20
IBM Rational Software Conference 2009



4 Reported, analyzed, and regularly new insight our results
  Aggregated data from multiple sources to provide
                                                   acted on



                                  Executive and Operational Dashboards


                    Jazz Integration Architecture: Using REST Open Services / ODBC / XML




 Rational    Rational     Rational   Rational Quality Rational      Rational    Rational   Project Headcount    Sales &    Customer Manual
ClearQuest Requirements Team Concert    Manager      Test Manager RequisitePro ClearCase    Data & Financials   Pipeline    Support  Data
            Composer
                                    RATIONAL                                                             THIRD-PARTY
                                        Data Sources: Quantitative and Qualitative




                                                                                                                                        21
IBM Rational Software Conference 2009


Align business and operational measures
Drill down into real-time data from disparate source repositories




                                                                    22
IBM Rational Software Conference 2009

Leveraging our experiences to help you…
    Start here!

                           Phase
                             1          Establish business and operational objectives



                           Phase        Prioritize practices and define roadmap
                             2



                           Phase
                             3          Accelerate adoption with tools and services



                           Phase
                             4          Report, analyze and act on results


                                           Start next incremental improvement




                                                                                        23
IBM Rational Software Conference 2009


Rational experience demonstrates incremental improvement
in software delivery




                  Collaborate                    Automate                        Report
                Achieve common goals by            Increase control          Continuously improve
               optimizing how people work   and efficiency by integrating   by measuring progress
                                                      workflows                  in real time




                                                                                                    24
IBM Rational Software Conference 2009


Time to Get Real – Starting Today



                GET REAL         Align teams to business and operational objectives
                 TEAMS




                GET REAL         Gain insights to incrementally improve software
                INSIGHTS         and systems delivery




                GET REAL
                                 Measure, monitor and steer to desired results
                RESULTS




                                                                                      25
IBM Rational Software Conference 2009




 Learn more at:
   IBM Rational software                                                     Ensure Web security & compliance                                       Rational trial downloads
   Rational launch announcements                                             Improve project success                                                developerWorks Rational
   Rational Software Delivery Platform                                       Manage architecture                                                    Leading Innovation
   Accelerate change & delivery                                              Manage evolving requirements                                           IBM Rational TV
   Deliver enduring quality                                                  Small & midsized business                                              IBM Business Partners
   Enable enterprise modernization                                           Targeted solutions                                                     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.


                                                                                                                                                                                                26

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Real insights real_results-steve_robinson

  • 1. Real Insights. Real Results. Software Development and Delivery in Competitive Times Steve Robinson Vice President IBM Rational Software Select View/Master/Slide Master to add Session Number Here © 2009 IBM Corporation
  • 2. IBM Rational Software Conference 2009 Nehru Trophy Boat Races 132 feet in length 1 year to build 1250 cubic feet of wood 350 KG of Iron 35 KG Bronze 91 oarsmen 4 helmsmen 16 singers 2
  • 3. IBM Rational Software Conference 2009 Today’s Discussion: Real Results Rational Strategy Review Our Approach to Real Results Time to Get Real 3
  • 4. IBM Rational Software Conference 2009 The evolution of Rational strategy 2006 2007 2008 Strategic Strategy Strategy Imperative Announced In Action Accelerating Deliver value efficiently Helping guide you software and effectively in from the cathedral development evolution distributed organizations to the bazaar Empowerment Enabling governance Ship early Modularity Adopting flexible Ship often Communities architectures Listen to your customers Leveraging communities 4
  • 5. IBM Rational Software Conference 2009 Rational strategy in action over the past year CONTINUED DELIVERING on the promise and vision of a flexible Jazz architecture Shipping early, shipping often with a transparent product development on Jazz.net Delivering 8 Jazz-built products and 18 Jazz-enabled products CONTINUED EXPANDING Rational communities to listen to our customers and partners Launched Open Services for Lifecycle Collaboration initiative CONTINUED INVESTING to evolve current portfolio 73 product releases in 2008 Acquisition of Ounce Labs for Static Security testing. EXTENDED REACH into systems engineering by integrating Telelogic 5
  • 6. IBM Rational Software Conference 2009 Rational strategy in a broader context: The world needs to get a whole lot smarter INSTRUMENTED INTERCONNECTED INTELLIGENT We now have the ability People, systems & objects We can respond to changes to measure, sense can communicate quickly & accurately, & get & see the exact & interact with each other better results by predicting condition of everything. in entirely new ways. & optimizing for future events. 6
  • 7. IBM Rational Software Conference 2009 What could you do if all objects were intelligent… …and connected? 7
  • 8. IBM Rational Software Conference 2009 What could you do with unlimited computing power… for pennies? Could you identify Could you predict the path another 20% of a storm down to the of proven oil reserves square kilometer? without drilling one hole? 8
  • 9. IBM Rational Software Conference 2009 Success in building a smarter planet is highly dependent on our ability to manage effective software and systems delivery …or with a billion- person workforce? What could you do with a million-person product development lab… 9
  • 10. IBM Rational Software Conference 2009 Challenges to effective software delivery remain and expand Individual Team Organizational Business Challenges Challenges Challenges Challenges Lack of standards Geographically Greater need More granular impacts ability dispersed teams for market service functionality to collaborate, experimentation and composite automate and report Effective cross- applications organizational Blind adherence Frequent asset visibility and to process insensitive Growing number of updates and synchronization to potential business assets including complex trade-offs custom, outsourced dependencies and packaged Need for agility@scale 10
  • 11. IBM Rational Software Conference 2009 Economic conditions add significant pressure to the reality of software and systems delivery Transformation and A new approach to Companies successfully innovation will lead recovery. IT delivery models and addressing the challenges When we come out the other sourcing options is required [of delivering product side of this crisis, companies that allows IT organizations innovation from software] will look different – technology to be more responsive to are driving higher will have been a catalyst the needs of the business. profitability. in those changes. Barbara Gomolski, Gartner Michelle Boucher, Aberdeen Group George Colony, Forrester Research, October, 2008 March, 2009 October, 2008 11
  • 12. IBM Rational Software Conference 2009 Rational strategy can bring focus in uncertain times Provides measured, short-term Return on Investment Enables longer-term management of Return on Assets Delivers a platform and processes to make those returns come to life Encourages and informs, rather than dictates Supports incremental improvement, leading to faster decision making 12
  • 13. IBM Rational Software Conference 2009 A maturing approach to software and systems delivery based on measurement Business Value Software investment management Efficiency aligned with Predictable business and governance operational and asset priorities Global utilization effectiveness and collaboration Control Productivity through automation Individual Team Organization Business 13
  • 14. IBM Rational Software Conference 2009 Realized by continuous improvement on business objectives Improve business flexibility and lower costs / risk Accelerate progress Improve stakeholder Reduce scrap / rework satisfaction and output Reduce cost of change Business Improve team productivity Value Reduce custom training and tooling variants Software investment Reduce human error management Efficiency aligned with Reduce manual tasks Predictable business and Improve release quality governance operational and asset priorities Global utilization effectiveness and collaboration Control Productivity through automation Individual Team Organization Business 14
  • 15. IBM Rational Software Conference 2009 Invest to manage risks and optimize measured outcomes Improve Improve Improve Increase Flexibility Automation Collaboration Process & Investment Value Cost to Cost to Cost to Cost to Implement: Implement: Implement: Implement: 25%-50% Business <5% 5%-10% 10%-35% Much culture change Value Very predictable Predictable Some culture change Productivity: ECONOMIC IMPACTS Productivity: Productivity: Productivity: 50-200+% 5-25% 15-35% 25-100% Timeframe = Years Timeframe = Days Timeframe = Weeks Timeframe = Months Efficiency Control Implementation costs Individual Team Organization Business are per person per year 15
  • 16. IBM Rational Software Conference 2009 Pragmatic steps we took to mature our own software delivery 1 Established business and operational objectives 2 Prioritized practices and defined implementation roadmap 3 Accelerated practice adoption with Rational products and programs – “Tools, Not Rules” 4 Reported, analyzed, and regularly acted on our results 16
  • 17. IBM Rational Software Conference 2009 1 Established business and operational objectives Improve market share Business Objectives Achieve profit margin Reduce time-to-value Heighten responsiveness and increase Operational linkage to customers Objectives Innovate to differentiate and capture new value Increase quality Shorten project development cycle times Improve schedule predictability 17
  • 18. IBM Rational Software Conference 2009 2 Prioritized practices and defined implementation roadmap Change and Release Management Initial Rational Team Change Management Change Management Focus Area Formal Change Management Requirements Management Quality Management Shared Vision Shared Vision Concurrent Testing Concurrent Testing Use-Case-Driven Development Use-Case-Driven Development Test Management Test Management Requirements Management Business Process Sketching Agile Core Independent Testing Performance Testing Iterative Development Iterative Development Application Vulnerability Assessment Two-Level Project Planning Two-Level Project Planning Whole Team Whole Team Governance and Compliance Architecture Management Continuous Integration Continuous Integration Risk-Value Lifecycle Evolutionary Architecture Evolutionary Architecture Test-Driven Development Test-Driven Development Practice Authoring and Tailoring Evolutionary Design Performance Measurement Performance Measurement Component Based Software Architecture Design Driven Implementation 18
  • 19. IBM Rational Software Conference 2009 3 AcceleratedCore practices to improve cycle times and predictability Leveraged Agile practice adoption with Rational products Required adoption of agility@scale 2,000+ developers, testers, managers Rational Results 100% 18 Varying team sizes Release Cycle Times (in months) 16 90% Geographically distributed locales 14 80% 12 Diverse development contexts 70% 10 from mature products to Web 2.0 apps 60% On-time Delivery 8 6 Embraced Rational Team Concert 50% 4 40% In past year, RTC: 2 30% 0 Projects grew by 291% 2007 2008 2009* *Projected Number of users grew by 321% 19
  • 20. IBM Rational Software Conference 2009 3 Accelerated practice Change & Release Management programs Leveraged Requirements and adoption with Rational practices Increased customer involvement, Rational Results building on “Whole Team” agile practice 90% Beta reported defects Design Partner Program growth of 352% 75% fixed in GA releases since 2006 RFEs included 60% in GA releases Transparent, iterative development on Jazz.net 45% 5 products available today 30% Over 17,000 participants in Jazz forums 15% VoiCE sessions expanded to India and China 0% 2007 2008 Lab Advocacy program has grown 567% since 2005 Customer satisfaction up 4 years in a row Beta programs doubled in 2008 to 35 12x growth in open beta downloads 20
  • 21. IBM Rational Software Conference 2009 4 Reported, analyzed, and regularly new insight our results Aggregated data from multiple sources to provide acted on Executive and Operational Dashboards Jazz Integration Architecture: Using REST Open Services / ODBC / XML Rational Rational Rational Rational Quality Rational Rational Rational Project Headcount Sales & Customer Manual ClearQuest Requirements Team Concert Manager Test Manager RequisitePro ClearCase Data & Financials Pipeline Support Data Composer RATIONAL THIRD-PARTY Data Sources: Quantitative and Qualitative 21
  • 22. IBM Rational Software Conference 2009 Align business and operational measures Drill down into real-time data from disparate source repositories 22
  • 23. IBM Rational Software Conference 2009 Leveraging our experiences to help you… Start here! Phase 1 Establish business and operational objectives Phase Prioritize practices and define roadmap 2 Phase 3 Accelerate adoption with tools and services Phase 4 Report, analyze and act on results Start next incremental improvement 23
  • 24. IBM Rational Software Conference 2009 Rational experience demonstrates incremental improvement in software delivery Collaborate Automate Report Achieve common goals by Increase control Continuously improve optimizing how people work and efficiency by integrating by measuring progress workflows in real time 24
  • 25. IBM Rational Software Conference 2009 Time to Get Real – Starting Today GET REAL Align teams to business and operational objectives TEAMS GET REAL Gain insights to incrementally improve software INSIGHTS and systems delivery GET REAL Measure, monitor and steer to desired results RESULTS 25
  • 26. IBM Rational Software Conference 2009 Learn more at: IBM Rational software Ensure Web security & compliance Rational trial downloads Rational launch announcements Improve project success developerWorks Rational Rational Software Delivery Platform Manage architecture Leading Innovation Accelerate change & delivery Manage evolving requirements IBM Rational TV Deliver enduring quality Small & midsized business IBM Business Partners Enable enterprise modernization Targeted solutions 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. 26