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The premiere software and product delivery event. June 610 Orlando, Florida Closing the Gap Between Business and IT Smart practices are the key to successful collaboration Ivar Jacobson Founder and Chairman, Ivar Jacobson International [email protected]

IBM Innovate Conference: Closing the Gap Between Business and IT

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Page 1: IBM Innovate Conference: Closing the Gap Between Business and IT

The premiere software and product delivery event. June 6–10 Orlando, Florida

Closing the Gap Between Business and IT Smart practices are the key to successful collaboration

Ivar Jacobson Founder and Chairman, Ivar Jacobson International [email protected]

Page 2: IBM Innovate Conference: Closing the Gap Between Business and IT

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The Potential Transformative Role of IT

It is hard to imagine a successful business today that is not driven by a need to

innovate, enabled by technology

– Publishing

– Entertainment

– Communications

– Banking

– Insurance ...

Consider publishing - the greatest growth

is coming from e-Books

–Those companies without an e-Book strategy will

likely not survive

–Those with a superior e-Book strategy will

prosper

–Market leaders will change

Technology creates the

opportunity for disruption and

enables new business models

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Page 3: IBM Innovate Conference: Closing the Gap Between Business and IT

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The Gap between Business and IT

Business and IT treat each other as

adversaries

– Distrust and lack of cooperation prevent

teamwork

They do not communicate in the same

language

– IT talks in technical terms, not in the

language of the business

They do not have the same goals

– Business often sets goals for IT that make

success impossible

Innovation and creativity cannot occur

because the two sides cannot work

together

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Page 4: IBM Innovate Conference: Closing the Gap Between Business and IT

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IT:

•Waits for the Business to tell it what to

do; doesn’t proactively offer solutions

•Lacks deep knowledge of the business,

hampering innovative solutions

•Technology churn causes loss of focus

on business value

•They often measure the wrong things

rather than the better, faster, cheaper

and happier metrics

•IT team members often do not respect

each others’ contributions

The Business:

•Fixes cost & schedule without

understand what problem they are

solving

•Often unclear about real needs;

demands things that it doesn’t need &

never uses

•Won’t invest time in understanding

needs; blames failure on IT

•Regards software development skill as

a commodity

•Won’t support IT projects with the right

business resources

Why Can’t We All Just Work Together?

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Page 5: IBM Innovate Conference: Closing the Gap Between Business and IT

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• The traditional model is a “consumer-supplier” relationship

– But IT can’t go find other business when it finds the terms of trade fair

– And the Business couldn’t find other suppliers who would accept those

terms of trade

• The Business is not IT’s customer

– The real customer of both is the

customer of the Business

– It is the satisfaction of those customers

that leads to success or failure

– Trying to pretend that the Business is

the customer simply creates confusion

about the real goal

The Traditional Model for the Business-IT Relationship is Broken

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Page 6: IBM Innovate Conference: Closing the Gap Between Business and IT

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A Better Model for Business-IT: A Real Team

Think about a soccer team:

– Everyone is focused on winning

– Even though they may play different positions and have different skills, they can all

advance the ball if it comes their way

– They win or lose together, and everyone must work together to win

In order to win:

– Everyone must understand the rules of the game

– Everyone must be good at their position

– Everyone must have an understanding of,

and respect for, what their fellow team

members contribute

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Page 7: IBM Innovate Conference: Closing the Gap Between Business and IT

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Key Attributes for Real Team Success

Common, shared objectives

Trust and respect for each others’ contribution

Consensus on how the team will work together to

achieve those objectives

Specialization of skills, built around a common set of

core skills

Business agility

We need practices that

bridge the gap

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Page 8: IBM Innovate Conference: Closing the Gap Between Business and IT

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There are different kinds of practices…

Specialist business practices that help run the

business.

Specialist software development practices that help

software developers develop good software.

Shared practices that

bridge the gap.

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Page 9: IBM Innovate Conference: Closing the Gap Between Business and IT

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…that need to come together….

…to help people work together

The practices

support and

complement each

other rather than

compete and

interfere.

The practices

come together to

form a

collaborative way-

of-working.

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Page 10: IBM Innovate Conference: Closing the Gap Between Business and IT

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Practices break the knowledge into bite-sized chunks…

Untangle process into independent practices

– A practice provides a way to systematically and verifiably address a specific

problem or issue.

– It has a clear goal and a way of measuring success.

– A practice is an end to end thread. Practices are the elements to make a lean

process.

That make the important knowledge accessible

And focus on the touch points between teams and individuals

Things to Produce

Things to Do

Competencies Patterns

A Practice

…and focus on the key knowledge needed to help the people involved learn how to work together

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Page 11: IBM Innovate Conference: Closing the Gap Between Business and IT

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Practices bring people together

People can appreciate each others expertise

People without formal training can make a

sensible start

They create an awareness of the

competencies and skills needed on the team

They give structure to the knowledge within a

specialty

They enable specialists to work together

Business

IT

Other

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Page 12: IBM Innovate Conference: Closing the Gap Between Business and IT

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Things To

Produce

Key Concepts

Things To Do Skills Needed

The “Essentials” are in the cards

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Page 13: IBM Innovate Conference: Closing the Gap Between Business and IT

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Be smart with knowledge

Individuals just need enough to get the job done

– Not the whole composed process

– Just the bits needed for the specific point in time

– Context sensitive to the problem at hand

– Focused on the essentials

Teams just need enough to work together

– Not the whole composed process

– Just the touch points…

– …and the collaborative activities

– Focused on collaboration and team working

– Focused on bridging the gap

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Page 14: IBM Innovate Conference: Closing the Gap Between Business and IT

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Even experts need guidance!

Especially when working on the unfamiliar

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Page 15: IBM Innovate Conference: Closing the Gap Between Business and IT

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How many practices are there?

Hundreds… at least!

Risk Management

Financial Planning

Business Modeling

Business Process Re-Engineering

Prince2

Product-Line Engineering

User Experience Design

Benefits Realization

Systems Engineering

Test-Driven Development

Product Development

User Stories Scrum Retrospectives SOA

Use-Case Driven

Development

Risk-Driven Iterative

Development

Use-Case Modeling

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Page 16: IBM Innovate Conference: Closing the Gap Between Business and IT

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Where to start?

Bu

ild

Tru

st

Sh

are

d

Lan

gu

ag

e

Sh

are

d

Ob

jecti

ves

Wo

rk

To

geth

er

Bu

sin

ess

Ag

ilit

y

We’ve found these practices are useful for

most teams

Iterative Essentials

Use-Case Essentials

Product Essentials

IT Business Dashboard

Business Feature Teams

Business Use-Case Essentials

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Page 17: IBM Innovate Conference: Closing the Gap Between Business and IT

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Iteration Essentials – Smart with Projects

Most companies still follow the waterfall approach

Bus Modeling

& Requirements

High-Level

Design

Detailed-Level

Design

Coding

Testing

Crash!

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Page 18: IBM Innovate Conference: Closing the Gap Between Business and IT

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Iterative Essentials – Deliver Business Value Incrementally

• Build a skinny system (the “architecture”) to demonstrate that you

have eliminated all critical risks

• Start from a model of the Business, build executable code

• Add more capabilities on top of that skinny system

Skinny System Full Fledged System

Focus on producing working software.

Think big, build in many steps 18

Page 19: IBM Innovate Conference: Closing the Gap Between Business and IT

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An example of working together, iteratively

Understand

Needs

Explore

Possible

Solutions

Evaluate

Proposed

Solutions

Confirm

Business

Viability

of Selected

Solution Scope &

Plan

Iteration Scope &

Plan Phase

Inception Phase Business & IT

identify possible

ways to meet

needs

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Page 20: IBM Innovate Conference: Closing the Gap Between Business and IT

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Refine

Solution

Specification

Develop

Increment

Evaluate

Results

Confirm

Technical

Viability

of Solution Scope & Plan

Iteration Scope &

Plan Phase

Elaboration

Phase

Another example of working together, iteratively

IT and the

Business

confirm that the

“skinny system”

will work

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Page 21: IBM Innovate Conference: Closing the Gap Between Business and IT

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Traditional requirements approaches (e.g.

Features) lack connection to business value

– Use Case provide a natural connection

Deriving Test Cases from Use Cases

provides a direct connection to business value

– Making sure that nothing of value is missed

Driving Development work from Use Cases

ensures that “features” don’t creep in

– Everything ties back to things the business

needs

Use Cases connect development and testing

with business value

Use-Case Essentials – Providing the Link to Business Value

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Page 22: IBM Innovate Conference: Closing the Gap Between Business and IT

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Product Essentials – Smart with Release Planning

Most solutions require a number of releases to

reach the goal

– Each release must demonstrate value and advance

toward toward the goal

Releases are co-determined by business

objectives and technology constraints

– They must be balanced

Business and IT must have a long term partnership

– Sound technology investment requires consistency

between vision and execution over a long period of

time

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Page 23: IBM Innovate Conference: Closing the Gap Between Business and IT

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Business Feature Teams – Smart With Business Change

People from Business and IT should work together as one team

– Common goals, shared Success - win or lose together

– No “Business side” and “IT side”

– No “we” and “they” - only “us”

Business Feature Teams provide the common ground

– Form teams around a “business feature” -

something that delivers value to the

business

– A “business feature” is usually described

by one or more use case modules

– The team is cross-functional, with

contributors each possessing different

skills

– The team is measured on their success

delivering business value

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Page 24: IBM Innovate Conference: Closing the Gap Between Business and IT

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IT Business Dashboard – Smart with Measures

People look at the wrong things:

– Things that are easy to measure but meaningless

– “Checking boxes” rather than results

– Few, if any, qualitative measures

And present them in the wrong way:

– Confusing and contradictory data

– Meaningful only to specialists - and maybe not even to

them!

– Unclear purpose

– Point data and not trends

– Hard to understand and use to make decisions

To close the gap, how well you are doing needs to be

measured in business terms

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Page 25: IBM Innovate Conference: Closing the Gap Between Business and IT

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• Business is concerned with:

– Better

– Faster

– Cheaper

– Happier

• Present measures that:

– Eliminate seasonal fluctuations

– Graph with obvious trends

– Provide simple meters for compliance

– Are focused on results

– Include quantitative and qualitative measures

IT Business Dashboard – Smart with Measures

Better Faster

Business IT Dashboard

Communicate the effectiveness of IT in a way that

everybody can understand

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Page 26: IBM Innovate Conference: Closing the Gap Between Business and IT

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Business Use-Case Essentials – Smart with Business Modeling

Two extremes:

Traditional business modeling widens the gap

Mr Technology

No business

model, no

requirements,

just code

Mr

Business Architect

Thou shalt model everything until it’s one

person, one place, one time.

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Page 27: IBM Innovate Conference: Closing the Gap Between Business and IT

What is needed to bring the practices together?

Practice Each practice contains practice-specifics to add to the kernel.

The kernel defines a very small “empty process”

Kernel

Practices “slot” into the common

kernel.

Way of Working

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Page 28: IBM Innovate Conference: Closing the Gap Between Business and IT

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Closing the Gap needs precise, shared practices

Team building through shared practices – the only way forward!

A single team united by

shared objectives, shared

practices, and shared results

Two teams separated by

their way-of-working.

Two teams using shared

practices to work

together.

1 2 3

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Page 29: IBM Innovate Conference: Closing the Gap Between Business and IT

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Summary

IT can transform businesses, but not the way we run it now

IT and Business should play on the same team - to win!

Culture and tradition stand in the way - we need a new way of working!

Practices provide a simple, easy to adopt way to change the way of working

– Modular - choose what you need

– Just what is needed - minimize change

– Just the “essentials” - not too much detail

A few key practices are usually all that

is needed

The most important thing is to take the first step:

Let IT and Business play together on the same team… … and WIN!

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Page 30: IBM Innovate Conference: Closing the Gap Between Business and IT

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Thank

You! Contact me at [email protected]

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