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Quantifying DevOps Adoption
Empirically for Demonstrable ROI
DES-1720
Insight
Operations
Interaction
Insight
Operations
Interaction
Innovation
and Speed
Optimize
Friction Reduction with multi-speed IT
Optimize
Innovate
Focus on Operational Costs
• Consolidation and modernization
• Op...
Why DevOps is Important
Line-of-
business
Customer
1
3
2
1. Get ideas into production fast
2. Get people to use it
3. Get ...
What DevOps Practices should Address…
Manual Effort
Unproductive Work Poor Visibility
Long Wait Times
Lets Walk through a Story…
• Meet Julie
• Julie works in the LOB and has an Idea for a new
solution to address a key busin...
Traditional Product Development
Months before you find out whether the product meets the need
Business Need
•Document
•Wee...
Introducing IaaS
• Months before you find out whether the product meets the need
• Hardware provisioning is undifferentiat...
IaaS Summary
• Months before you find out whether the product meets the need
• Hardware provisioning is undifferentiated h...
IaaS based Product Development
• Weeks before you find out whether the product meets the need
Business Need
•Document
•Wee...
IaaS based Product Development with DevOps
• Improved efficiencies (including automation) between development and
deployme...
IaaS based Product Development with DevOps
Business Need
•Document
•Weeks
Software
Development
•Specifications
•Weeks
Depl...
Introducing PaaS for Feature Delivery
Business Need
•Document
•Weeks
Software
Development
•Specifications
•Weeks
Deploymen...
PaaS based Feature Development
Business Need
•Discussion
•Days
• Design
Thinking
Software
Development
•Code
•Weeks-Days
Cu...
15
“The Technology Tree”
DevOps “Technology Tree” (Phase 1)
Phase 1 Goal:
Continuous
Testing
Starting Point
Step #1: Automated
Builds Step #2: Auto...
DevOps “Technology Tree” (Phase 2)
Phase 2 Goal:
Continuous
Delivery
Starting Point
Step #1: Continuous
Testing
Step #2: A...
What do you see?
52% of users
don’t have
confidence
in their information1
42% of managers
use wrong
information
at least once a week2
59% o...
Metrics That Matter
Metrics That Matter
Category Metrics
Cost / Budget Maintenance/Innovation Ratio (% spent on bug fixes/technical debt vs ne...
Rational Enterprise DevOps solutions save money and increase resource capacity
• By increasing staff capacity through prod...
Monetizing the Value of Productivity Improvement
How do you measure value?
– Lines of Code (LOC) and Function
Point (FP) –...
Monetizing the Value of Quality Improvement
Two key drivers:
1. Fewer defects found post deployment
– A result of better t...
Case Study: Enterprise DevOps Cost/Benefit Analysis
26
IBM Rational DevOps Business Case Assumptions
•Average staff costs $65/hr.
•400 users
•5-year investment analysis
•Adoptio...
Business Value Model – Productivity Impact
29
$3.4 million annual savings through combined FTE time
Increase software deli...
Expected Productivity Impact Causation
30
Business Value Model – Quality Impact
31
Based upon other Client implementations and recorded results, this initial draft
...
Expected Quality Impact Causation
Business Value Model
Cost Benefit Summary
Business Value Assessment
Preparing a Business Value Assessment includes the following steps:
1.Initial presentation to ge...
System Z DevOps Workshop Description
The System Z DevOps Workshop is a no cost ‘discovery’ workshop to identify gaps
in th...
Next Steps / Resources
• DES-4657: Enterprise DevOps Cost/Benefit Analysis Workshop at InterConnect
• Take the DevOps Prac...
Notices and Disclaimers
37
Copyright © 2016 by International Business Machines Corporation (IBM). No part of this document...
Notices and Disclaimers Con’t.
38
Information concerning non-IBM products was obtained from the suppliers of those product...
Thank You
Your Feedback is Important!
Access the InterConnect 2016 Conference Attendee
Portal to complete your session sur...
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Quantifying DevOps Adoption Empirically for Demonstrable ROI

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Quantifying DevOps Adoption Empirically for Demonstrable ROI

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Quantifying DevOps Adoption Empirically for Demonstrable ROI

  1. 1. Quantifying DevOps Adoption Empirically for Demonstrable ROI DES-1720
  2. 2. Insight Operations Interaction
  3. 3. Insight Operations Interaction Innovation and Speed Optimize
  4. 4. Friction Reduction with multi-speed IT Optimize Innovate Focus on Operational Costs • Consolidation and modernization • Operations automation • Risk and compliance mgmt Empowered Process Team Legacy Infrastructure Focus on Speed and Agility • Assemble solutions from verified components • Fast development and redeployment • User first delivery model Systems of Engagement Rapid Service Creation Team PaaS Engine Insight Operations Hybrid Enterprise Mobile Social Interaction Service Integration Team Brokerage Services DevOps API Economy Cloud Service Brokers Systems of Record Reduction
  5. 5. Why DevOps is Important Line-of- business Customer 1 3 2 1. Get ideas into production fast 2. Get people to use it 3. Get feedback Adopt DevOps approach to continuously manage changes, obtain feedback and , deliver changes to users Eliminate any activity that is not necessary for learning what customers want
  6. 6. What DevOps Practices should Address… Manual Effort Unproductive Work Poor Visibility Long Wait Times
  7. 7. Lets Walk through a Story… • Meet Julie • Julie works in the LOB and has an Idea for a new solution to address a key business need. …Julie is daunted by the current process: Business Need •Document •Weeks Approval Process •Meetings •Weeks Hardware Purchase •Negotiations •Weeks Software Development •Specifications •Weeks Deployment and Testing •Reports •Weeks Customer Feedback •Doesn’t work! •Weeks
  8. 8. Traditional Product Development Months before you find out whether the product meets the need Business Need •Document •Weeks Approval Process •Meetings •Weeks Hardware Purchase •Negotiations •Weeks Software Development •Specifications •Weeks Deployment and Testing •Reports •Weeks Customer Feedback •Doesn’t work! •Weeks
  9. 9. Introducing IaaS • Months before you find out whether the product meets the need • Hardware provisioning is undifferentiated heavy lifting Business Need •Document •Weeks Approval Process •Meetings •Weeks Hardware Purchase •Negotiations •Weeks Software Development •Specifications •Weeks Deployment and Testing •Reports •Weeks Customer Feedback •Doesn’t work! •Weeks IaaS Cloud
  10. 10. IaaS Summary • Months before you find out whether the product meets the need • Hardware provisioning is undifferentiated heavy lifting Business Need •Document •Weeks Approval Process •Meetings •Weeks Hardware Purchase •Negotiations •Weeks Software Development •Specifications •Weeks Deployment and Testing •Reports •Weeks Customer Feedback •Doesn’t work! •Weeks IaaS Cloud Business Need •Document •Weeks Software Development •Specifications •Weeks Deployment and Testing •Reports •Weeks Customer Feedback •Doesn’t work! •Weeks From months to weeks is good. Can we do better?
  11. 11. IaaS based Product Development • Weeks before you find out whether the product meets the need Business Need •Document •Weeks Software Development •Specifications •Weeks Deployment and Testing •Reports •Weeks Customer Feedback •Doesn’t work! •Weeks
  12. 12. IaaS based Product Development with DevOps • Improved efficiencies (including automation) between development and deployment has a significant impact in consistency and speed Business Need •Document •Weeks Software Development •Specifications •Weeks Deployment and Testing •Reports •Weeks Customer Feedback •Doesn’t work! •Weeks Dev Ops
  13. 13. IaaS based Product Development with DevOps Business Need •Document •Weeks Software Development •Specifications •Weeks Deployment and Testing •Reports •Weeks Customer Feedback •Doesn’t work! •Weeks Automation is great and reduces the time to days But I want more! Dev Ops
  14. 14. Introducing PaaS for Feature Delivery Business Need •Document •Weeks Software Development •Specifications •Weeks Deployment and Testing •Reports •Weeks Customer Feedback •Doesn’t work! •Weeks DevOpsPaaS w/DevOp s
  15. 15. PaaS based Feature Development Business Need •Discussion •Days • Design Thinking Software Development •Code •Weeks-Days Customer Feedback •Fix this Bit! •Hours Days! That is what I’m talking about!
  16. 16. 15
  17. 17. “The Technology Tree”
  18. 18. DevOps “Technology Tree” (Phase 1) Phase 1 Goal: Continuous Testing Starting Point Step #1: Automated Builds Step #2: Automated Functional Testing as part of build process Step #3: Code Scanning and Security scanning as part of build process Step #4: Shift Left Testing (Integration Testing before Functional Testing) Step #5: Automated application deployment to Test Environment Step 6: On-Demand Test Environment Provisioning
  19. 19. DevOps “Technology Tree” (Phase 2) Phase 2 Goal: Continuous Delivery Starting Point Step #1: Continuous Testing Step #2: Automated application deployment to test environment along with middleware configuration (standard topologies) Step #3: Automated application deployment and middleware configuration across DEV, QA, and Prod Application Portfolio Release Management Step #5: Self Service build, provision, and deploy (Cloud) Step #4: Manage Environments through automation
  20. 20. What do you see?
  21. 21. 52% of users don’t have confidence in their information1 42% of managers use wrong information at least once a week2 59% of managers miss information they should have used2 Product Profitability Product Variance And Health Workforce Optimization Distributed and Outsourced Development Contradictions result from the quest for information
  22. 22. Metrics That Matter
  23. 23. Metrics That Matter Category Metrics Cost / Budget Maintenance/Innovation Ratio (% spent on bug fixes/technical debt vs new capabilities) Assignment scope (Number of function points supported by person) Budget underage/overage Time / Speed Velocity Planned (Throughput of team per iteration/milestone) Velocity Actual (Historical Velocity) Feature cycle time (Time / Effort for developing a feature) Turnaround Time for Changes (CR or Defect -> Production) On-time delivery % (# of projects delivered on time / Total # of projects) Quality / Reliability Uptime/MTBF (Mean time between failures) Defect Backlog (# of defects not fixed in a release) Total Tests (# of tests for application) Total % Tests Automated Test Escapes (# of defects not found in testing) Support Call Volume Defect Density (# of defects per Function point or KLOC/KELOC) Regression (# of defects fixed that have creeped back into system) Requirements Coverage (Total # of Requirements vs # of Requirements implemented) Requirements Volatility (Measuring changes in requirements by lifecycle) System Utilization (Measures Resource Utilization during performance/stress testing) Test Case Efficiency (Ratio of Defects found in Test Cases vs total Defects) Size (Underlying) Story Points KLOC, KELOC Function Points Backfiring (KELOC -> Function Point mapping) Code Complexity (# of methods that have >15 linear independent paths) Percent Reuse ((Reused code count / (Reused code count + total code count)) * 100)
  24. 24. Rational Enterprise DevOps solutions save money and increase resource capacity • By increasing staff capacity through productivity improvements – Examples include: • Faster code development and maintenance • Faster and improved impact analysis and testing • Build automation • Quality Management and Test Automation • Configuration Management • Time to market • By discovering defects earlier in the lifecycle thus reducing the repair costs – Examples include: • Improved Requirements Analysis and Management • Code Analysis • “Shift Left” strategy. Using transparency, continuous integration and testing to identify issues early 23 Quality Productivity
  25. 25. Monetizing the Value of Productivity Improvement How do you measure value? – Lines of Code (LOC) and Function Point (FP) – a lot of baseline data available, but poor indicators of value. – Story Points – used by agile teams, often no baseline data exists… – Business Points¹ – few measure it, but focus on value. Often, no baseline data exists… • Solution: • Measure Velocity, that is, how much faster is the team working now relative to solution adoption. • To calculate velocity of your agile team, simply add up the estimates of the features, user stories, requirements or backlog items successfully delivered in an iteration. 24 ¹While Story Points reflects the size of the implementation effort, Business Points reflect the business value associated with each story / epic / scenario / …
  26. 26. Monetizing the Value of Quality Improvement Two key drivers: 1. Fewer defects found post deployment – A result of better test coverage, automated and frequent testing 2. The average defect is found earlier in the lifecycle, when the cost of finding them is lower 25
  27. 27. Case Study: Enterprise DevOps Cost/Benefit Analysis 26
  28. 28. IBM Rational DevOps Business Case Assumptions •Average staff costs $65/hr. •400 users •5-year investment analysis •Adoption Rates: –30% after 12 months –60% after 24 months –90% after 36 months –100% after 48 months
  29. 29. Business Value Model – Productivity Impact 29 $3.4 million annual savings through combined FTE time Increase software delivery capacity of 26 FTE from 3.3% productivity improvements
  30. 30. Expected Productivity Impact Causation 30
  31. 31. Business Value Model – Quality Impact 31 Based upon other Client implementations and recorded results, this initial draft proposes a left shift in defect detection and resulting $1.8m cost reduction
  32. 32. Expected Quality Impact Causation
  33. 33. Business Value Model Cost Benefit Summary
  34. 34. Business Value Assessment Preparing a Business Value Assessment includes the following steps: 1.Initial presentation to get Client participation 2.Interview with Client to capture processes and metrics 3.Presentation slides, analysis document & spreadsheet 4.Review and acceptance with Client / Sponsor The BVA is a consultative sales method that documents the business impact with the client of a proposed solution. Following this, it compares the cost of a proposed solution to the business value so that an ROI can be presented. The BVA communicates and prioritizes the proposed solution business value to the executive and financial level just as the technical validation sells to the practitioner and technology level . 34
  35. 35. System Z DevOps Workshop Description The System Z DevOps Workshop is a no cost ‘discovery’ workshop to identify gaps in the client’s current System Z software delivery capabilities and provide them with a customized, prioritized list of DevOps practices and a roadmap for their adoption to support faster and more efficient enterprise software delivery. The target audience for the workshop are executives and senior development and operations managers. The workshop is designed to last 4 to 6 hours. It is preceded by a 30 minute pre-call and followed up with a 2 hour presentation of results and recommendations. The workshop is meant to be a strategic initiative to help the customer develop a pragmatic approach for adoption of Enterprise DevOps best practices building on initiatives and capabilities already in place
  36. 36. Next Steps / Resources • DES-4657: Enterprise DevOps Cost/Benefit Analysis Workshop at InterConnect • Take the DevOps Practices Self Assessment http://www.ibm.com/ibm/devops/us/en/ • Additional Resources http://www.ibm.com/devops https://www.ibm.com/developerworks/devops/ 36
  37. 37. Notices and Disclaimers 37 Copyright © 2016 by International Business Machines Corporation (IBM). No part of this document may be reproduced or transmitted in any form without written permission from IBM. U.S. Government Users Restricted Rights - Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM. Information in these presentations (including information relating to products that have not yet been announced by IBM) has been reviewed for accuracy as of the date of initial publication and could include unintentional technical or typographical errors. IBM shall have no responsibility to update this information. THIS DOCUMENT IS DISTRIBUTED "AS IS" WITHOUT ANY WARRANTY, EITHER EXPRESS OR IMPLIED. IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGE ARISING FROM THE USE OF THIS INFORMATION, INCLUDING BUT NOT LIMITED TO, LOSS OF DATA, BUSINESS INTERRUPTION, LOSS OF PROFIT OR LOSS OF OPPORTUNITY. IBM products and services are warranted according to the terms and conditions of the agreements under which they are provided. Any statements regarding IBM's future direction, intent or product plans are subject to change or withdrawal without notice. Performance data contained herein was generally obtained in a controlled, isolated environments. Customer examples are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual performance, cost, savings or other results in other operating environments may vary. References in this document to IBM products, programs, or services does not imply that IBM intends to make such products, programs or services available in all countries in which IBM operates or does business. Workshops, sessions and associated materials may have been prepared by independent session speakers, and do not necessarily reflect the views of IBM. All materials and discussions are provided for informational purposes only, and are neither intended to, nor shall constitute legal or other guidance or advice to any individual participant or their specific situation. It is the customer’s responsibility to insure its own compliance with legal requirements and to obtain advice of competent legal counsel as to the identification and interpretation of any relevant laws and regulatory requirements that may affect the customer’s business and any actions the customer may need to take to comply with such laws. IBM does not provide legal advice or represent or warrant that its services or products will ensure that the customer is in compliance with any law
  38. 38. Notices and Disclaimers Con’t. 38 Information concerning non-IBM products was obtained from the suppliers of those products, their published announcements or other publicly available sources. IBM has not tested those products in connection with this publication and cannot confirm the accuracy of performance, compatibility or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. IBM does not warrant the quality of any third-party products, or the ability of any such third-party products to interoperate with IBM’s products. IBM EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. The provision of the information contained h erein is not intended to, and does not, grant any right or license under any IBM patents, copyrights, trademarks or other intellectual property right. IBM, the IBM logo, ibm.com, Aspera®, Bluemix, Blueworks Live, CICS, Clearcase, Cognos®, DOORS®, Emptoris®, Enterprise Document Management System™, FASP®, FileNet®, Global Business Services ®, Global Technology Services ®, IBM ExperienceOne™, IBM SmartCloud®, IBM Social Business®, Information on Demand, ILOG, Maximo®, MQIntegrator®, MQSeries®, Netcool®, OMEGAMON, OpenPower, PureAnalytics™, PureApplication®, pureCluster™, PureCoverage®, PureData®, PureExperience®, PureFlex®, pureQuery®, pureScale®, PureSystems®, QRadar®, Rational®, Rhapsody®, Smarter Commerce®, SoDA, SPSS, Sterling Commerce®, StoredIQ, Tealeaf®, Tivoli®, Trusteer®, Unica®, urban{code}®, Watson, WebSphere®, Worklight®, X-Force® and System z® Z/OS, are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at "Copyright and trademark information" at: www.ibm.com/legal/copytrade.shtml.
  39. 39. Thank You Your Feedback is Important! Access the InterConnect 2016 Conference Attendee Portal to complete your session surveys from your smartphone, laptop or conference kiosk.

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