http://ibm.com/interconnect

1. © 2013 IBM Corporation

2. General Manager
IBM Rational Software
Kristof Kloeckner

3. Fast, Lean Enterprise Software Delivery
through DevOps
Kristof Kloeckner / IBM
Rachael Straiton / DBS Bank
Sebastian Jammer / PT XL Axiata
© 2013 IBM Corporation

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We Are at An Inflection Point in the Industry
JUST-IN-TIME MAINTENANCE
Global aircraft engine manufacturer increases service revenue by 12%
in one year using real-time monitoring and proactive fault detection
MOBILE CUSTOMER TARGETING
Card swipe in one store attracts coupons from nearby store –
resulting in 109% incremental sales lift
BUSINESS INNOVATION DRIVER
Building materials manufacturer deploys social collaboration platform driving
real-time process improvement and reducing time to market by 2/3

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External Forces that Will Impact the Organization
For the First Time, CEOs Identify Technology
as the Most Important External Force Impacting
Their Organizations
Technology factors
People skills
Market factors
Macro-economic factors
Regulatory concerns
Globalization
Source: IBM Institute for Business Value, The Global CEO Study 2012. Question: “What are the most
important external forces that will impact your organization over the next 3 to 5 years?”
71%
2004 2006 2008 2010 2012
55

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Software delivery
Modern workforce
expects constantly updated
software to connect to
enterprise systems
Mobile
Software component in smart
products driving increased value
and differentiation
Intelligent/
Connected Systems
Insights on new products by
more efficiently interpreting
massive quantities of data
Big Data Demand for apps requires fast,
scalable environments for dev
and test, as well as production
Cloud
Industry requirements
demand faster response to
regulations and standards,
with traceability and quality
Instrumented Products
Software Delivery Is at the Heart of Today’s
Top Technology Trends
Broader set of stakeholders
collaborates to deliver
continuous innovation and
value
Social Business

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Rapid Response to Market Challenges and Customer
Feedback Determines Success or Failure
Operations/ProductionDevelopment/TestCustomers Business Owners

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Organizations that Effectively Leverage Software
Delivery Outperform Their Competitors
… yet few are able to deliver it effectively
86%
of companies believe software delivery
is important or critical
25%
leverage software delivery effectively today
But only…
• Source: “The Software Edge: How effective software development drives competitive advantage,” IBM Institute of Business Value, March 2013
69%
outperform
those who don’t
of those who
leverage software
delivery today

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Systems of Interaction
Continuous
client experience
Partner value
chain
Cloud-based
Services
Systems of Engagement Systems of Record
CRM HR
DB ERP
A Failure in Software Delivery Impacts
the Entire Business
of customers
experience
production delays
>45%
of outsourced
projects fail to meet
objectives
>50%
of budgets devoted to
maintenance and
operations
>70%
to deliver even minor
application changes to
customers
4-6 weeks
DEVELOPMENT/TEST
Speed mismatch between faster moving front office and slower
moving back office systems, delaying time to obtain feedback
SUPPLIERS
Delivery in the context of agile
OPERATIONS
Rapid app releases impact system stability and
compliance
LINE-OF-BUSINESS
Takes too long to introduce or make changes to
mobile apps and services

10. VIDEO
(Continuous Delivery – 3 minutes)

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DevOps Takes a Holistic Approach to
Application Delivery
Operations/
Production
Development/
Test
Customers
Business
Owners
DevOps takes a business-oriented perspective in optimizing the entire delivery value stream by
applying Lean Principles to software/service delivery, fostering collaboration across the business to
enable continuous delivery
Agile DevelopmentContinuous
Business
Planning Continuous Integration
Continuous Deployment
Continuous Testing
Continuous Monitoring
Existing efforts/practices address only a subset of the value chain
DevOps
Continuous Delivery of Software-driven innovation with a feedback loop
IDEA
MARKET

12. Head of IT Shared Services
DBS Bank
Rachael Straiton

13. © 2013 IBM Corporation

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Rapid
Waterfall
Agile
Rapid
Waterfall
Rapid
Waterfall
Agile
Agile
Agile
Continuous
Delivery
Dedicated
environment,
Full simulated testing,
Partial deployments
Scheduled test
environments
Dedicated environment,
Automated testing

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Where we have started…

23. Sebastian Jammer
Head of Business Transformation Services
PT. XL Axiata Tbk

24. © 2013 IBM Corporation

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In Less Mature IT Organizations, Lack of Discipline and
Informal Management Can Lead to Serious Ineffectiveness
 Highly informal process
 Relationship based
 No formal entry gate
 No business case to judge project impact to
the company
IT Department
People Budgets
Business
Requests
Business Impact
 Lack of oversight regarding Business User
Requests and Resource Allocation
 Non-systematic resource allocation (human
and financial) – misaligned with business
objectives
 Overload of the organization due to the
absence of a filtering and prioritization
mechanism
 Project delays due to under-resourcing (often
projects were not meeting the agreed delivery
date)
 Misalignment with architectural principles
due to absence of centralized architecture
governance
CASE
EXAMPLE
Business Request Management

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This Can Inhibit the Execution of Strategy and
Significantly Hamper Competitive Advantage
IT Project
Governance
IT
Processes
Team
Capabilities
1 2 3
Time-to-
Market
Flexibility
& Agility
Cost of
Ownership
Service
Quality
Strategic
Objectives
Issues
Averse impact to the strategic objective
Issues and Implications
CASE
EXAMPLE

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IT Department
People Budgets
Hence, before Adopting Advanced
Methodologies Fixing the Basics Is Key
Application Development & Management Process
(High Level)
Business
Requests
Business
Requests
Demand
Management

Control
Gate 1 Gate 2 Gate 3 Gate 4
DeployBuild & TestDesign
Requirements
Development
Feasibility
Check
Gate 0
Resource
Planning &
Allocation
Strategic &
Architectural
Alignment
Avoidance of
Duplication
Resource
Planning &
Allocation
Strategic &
Architectural
Alignment
Avoidance of
Duplication
Resource
Planning &
Allocation
Strategic &
Architectural
Alignment
CASE
EXAMPLE

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This Will Lay the Foundation to Drive Further
Improvement Such as Standardization
Description
 Toolkit breaks down the product into building blocks
 Product marketing can pick and choose and
“parameterize” the different building blocks
 IT architecture is developed to accommodate the
tool-kit through parameters
Benefits
 Significant reduction in complexity
 Reduction of technical risk
 Reduced risk of product design failures
 Enables standardized customer experience
 Reduction in effort to develop the product
 Enables standardized IT tooling such as testing
 Ability to handle higher volumes of products
 Faster speed to market
Product & Price Plan
Building Blocks
Building Block 2
Building Block 4
Building Block 1
Building Block 2

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Experience Has Taught Some Key Principles
about IT Transformation
1. Transformation is a journey, not a destination
2. Evolution is much better than revolution
3. Execution architecture is much more important than end-state
architecture
4. Architecture is a governance task, much more than a technical one
5. Capability is key to success

30. © 2013 IBM Corporation

31. VIDEO
(DevOps Overview – 2 minutes)

32. © 2013 IBM Corporation

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DevOps Adoption Paths
Open Lifecycle and Service Management Integration Platform
OSLC
Ecosystem
BestPractices
Monitor and Optimize
Plan and Measure Develop and Test Release and Deploy
Operations/ProductionDevelopment/TestCustomers Business Owners

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Adoption Path: Plan and Measure
Practice: Continuous Business Planning
Do the right things right
 Attack the high value and high risk
items first
 Predict and quantify the outcomes
and resources
 Measure honestly with distributions
of outcomes
 Learn what customers really want
and steer with agility
65% reduction in operating costs
previously necessary to manage
the decision-making process, and
a 20% savings in time spent on
the decision process

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Adoption Path: Development and Test
Practice: Collaborative Development
Unify on an integrated, open platform
 Promote common terminology, tools,
processes, data sources among all
lifecycle disciplines
 Integrate early and continuously
 Demonstrate integrated behaviors
before investing in unit coverage and
completeness
“Our costs are flat, even though our
demand has increased by about 30
to 35 percent. We’re doing more
with the same amount of resources”
Frank Fabian
Head of testing environments, delivery services,
ANZ technology

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Adoption Path: Development and Test
Practice: Continuous Testing
Quantify software quality insight
at faster cycle times
 Virtualize test environments for
low-overhead, rapid deployment
 Automate provisioning and regression
test suites
 Uncover and resolve critical defects
earlier through integration-test driven
development
 Quantify quality trends over time
Blue Cross BlueShield
“Using the Rational tools,
three employees can run the
required 1,250 tests in less than
one week, reducing testing time by
50 percent.”
An Doan
Software Quality Engineer

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Adoption Path: Release and Deploy
Practice: Continuous Release and Deployment
Accelerate delivery of usable
increments
for continuous outside-in feedback
 Provide a continuous delivery pipeline
that automates deployments to test
and production environments
 Reduce overhead with push-button
deployments
 Quantify change stability and measure
transparently for compliance
“Before it took 2 days to deploy
a build, with uDeploy and our new
processes, it takes us
less than 60 seconds.”
Matthew Wilson
Director, Consumer Web Operations

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Continuous Software Release and Deployment
 Reduce errors with automated software release
and deployment
 Improve productivity with push-button deployments
for developer and operations
 Reduce time-to-market via automated release and deployment
 Demonstrate compliance and auditability through enforced
security and traceability
IBM UrbanCode Deploy orchestrates and automates the deployment
of applications, databases and configurations
IBM UrbanCode Release is an intelligent collaboration release
management solution

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Adoption Path: Monitor and Optimize
Practice: Continuous Monitoring
Quantify change trends
 Scalable measurement and reporting
 Real-time insight into performance
and stability
 Continuous feedback on cost of change
to steer projects toward more
predictable outcomes “Root cause analysis used
to average 45 minutes.
Now it takes only 5 minutes.”
Syed Asif Shah
Chief Information Officer

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Adoption Path: Monitor and Optimize
Practice: Continuous Customer Feedback and Optimization
Analyzing the customer experience
and their challenges
 Understand client usage context
for analyzing customer behavior
and pinpointing problems
 Reduce cycle times for continuous
client feedback
 Connect developers/operators more
directly with user community and client
experience

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Overhead and Rework
Productive
40% 20%
Eliminate any activity that is not necessary
for learning what customers want
The Critical Measure of DevOps Success

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Practice Based Maturity Model: Assessment
Framework
Benefits/Business outcome: Defined with real metrics
Measure: Practical means to benchmark before, during and after
Technical context: Impact on Practices, Means to implement changes
Maturity Model Assessment, Pilot, and Rollout Services

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DevOps at InterConnect 2013
 Session 0142: Seize Market Opportunities by
Establishing an Enterprise Capability for Continuous
Software Delivery
• Thursday, 10/Oct, 04:15 PM - 05:00 PM, Simpor 4803, Level 4
 Session 0179: Accelerating Mobile and Cloud
Development and Delivery for zEnterprise
• Fri, 11/Oct, 10:15 AM - 11:00 AM, Peony 4502, Level 4
 Session 0167: Deploy Mobile First Applications
• Fri, 11/Oct, 11:15 AM - 12:00 PM, Roselle 4612, Level 4
 Visit the DevOps Zone in the Solution Center

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Take Action Now!
 Develop an end-to-end DevOps strategy
 Adopt mobile-first design thinking, and
cloud-centric architectures
 Start incrementally on business-critical projects
 Measure and reduce overhead, rework
and duplication
 Innovate! It’s a great time to be in the
technology business

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© 2013 IBM Corporation
Thank You

46. © 2013 IBM Corporation