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This is a presentation I gave to the Ohio Valley LIG of the Service Management Forum in April of 2010. I focused the presentation on three main themes: 1) The refinement or removal of non value-added processes in IT (the "big" idea of Lean IT) 2) The institution of metrics (if you don't know where you are now, how do you know where you're going in the future?) 3) The enhancement of communications (manage projects throughout their lifecycle using normalized interfaces)
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Presented by Matt BlairMSISA, Dir. of Prof. Development
Indiana University
Agenda
Overview of Lean IT• Impacts many internal and external customers of the IT value-stream.• Cuts back the waste of outgrown information technology
Benefits of Lean IT• Allows delivery of a more efficient, higher-quality product.• Promotes companies’ CMMI, pushing for more efficient approaches.
Example of Implementing Lean IT• Integrates IT resources more evenly within a company.• Refines corporate governance to formalize processes.
Next Steps• Take Advantage of a widely-accepted, repeatable process.• Reference additional resources for deeper research.
1
2
3
4
Overview Benefits Example Next Steps
LEA
N IT
Lean IT Impacts many Internal and External Customers of the IT Value-Stream
Overview Benefits Example Next Steps
FINANCE SUPPORT
HR PROD.
LOGISTICS
PRIMARY VALUE STREAMSSupply ChainE-CommerceManufacturing
PRIMARY VALUE STREAMSSupply ChainE-CommerceManufacturing
IT S
ERVI
CE
B
USI
NES
S
SECONDARY VALUE STREAMSApplication Perf. Management
Data BackupService Catalog
SECONDARY VALUE STREAMSApplication Perf. Management
Data BackupService Catalog
By mapping the interactions of the business between value streams,
analysts can determine which processes do not add value to the final product, and
therefore should be removed.
By mapping the interactions of the business between value streams,
analysts can determine which processes do not add value to the final product, and
therefore should be removed.
LEA
N IT
Lean IT Cuts Back the Waste of Outgrown Information Technology
Overview Benefits Example Next Steps
• Maintenance backlogs• Partially completed requests
Wasted InventoryWasted Inventory
• Key resources aren’t available• Idle developers
Wasted TimeWasted Time
• Limited cross-training• Poor usage of resources
Wasted IntellectWasted Intellect
• Early fulfillment of requests• Unnecessary functionality
Overproduction / OverprocessingOverproduction / Overprocessing
• Changes in business requirements• Application bugs, errors
ReworkRework
• Unprioritized task processing• Unplanned task switching
Wasted MotionWasted Motion
• Ignoring foundational errors• Trading off for short-term gains
Motion / Repeat Problems
Motion / Repeat Problems
• Anchoring to out-of-date processes• Unnecessary documentation
Non-Value Added Processing
Non-Value Added Processing
http://www.mckinsey.de
LEA
N IT
Lean IT allows you to Deliver a More Efficient, Higher Quality Product
Overview Benefits Example Next Steps
LEA
N IT
TIME-TO-MARKET
By enhancing the repeatability of IT processes, organizations can leverage
added efficiencies for more effective resources to generate a higher quality output.
By enhancing the repeatability of IT processes, organizations can leverage
added efficiencies for more effective resources to generate a higher quality output.
Efficient processes lead to faster turnaround.
Increased agility makes it easier to respond to market needs.
Competitive edge helps companies stay ahead of competition.
PRODUCT QUALITY
Decreased errorsprovides a higher quality product, increasing brand reputation.
Straightforward process design eases manufacturing woes.
COST of RESOURCES
More effective use of resources leads to increased availability.
Less paperwork leads to less working hours and lesser staffing needs.
Organizations and Processes with Low CMMI’s can Experience the Most Benefits
Overview Benefits Example Next Steps
Initial • Unpredictable processes• Reactive support, poorly controlled
Managed • Agreements and vendor contracts• Project planning, requirements management
Defined• Process standardization• Infrastructure integration• Focus on process enhancement
Quantitatively Managed
• Highly repeatable processes• Performance measurement, benchmarking
Optimized • Organizational innovation & deployment• Causal analysis and resolution
http://www.wikipedia.com
Lean initiatives can advance organizations with lower maturities to refine processes and
progress their maturity.
Lean initiatives can advance organizations with lower maturities to refine processes and
progress their maturity.
Process integration through the use of standardized interfaces
increases cross-division interaction.
Process integration through the use of standardized interfaces
increases cross-division interaction.
Lean documentation makes maintenance more direct,
allowing more time to be spent on prescriptive development.
Lean documentation makes maintenance more direct,
allowing more time to be spent on prescriptive development.
LEA
N IT
Application Maintenance and Development is a High-Risk Area of the IT Value-Chain
Overview Benefits Example Next Steps
80x
60x
40x
20x
0x
Rel
ativ
e C
ost t
o Fi
x D
efec
t (m
ultip
lier)
The cost of correcting an error increases as a product
progresses through the application development
lifecycle.
The cost of correcting an error increases as a product
progresses through the application development
lifecycle.
2x 8x
15x
80x
LEA
N IT
--
--
--
--
The frequency of errors can be minimized through
requirement confirmation, iteration and passing
procedural gates.
The frequency of errors can be minimized through
requirement confirmation, iteration and passing
procedural gates.
By focusing on the foundations of
requirements, errors can be addressed before they are
designed, tested and deployed prior to being confirmed.
By focusing on the foundations of
requirements, errors can be addressed before they are
designed, tested and deployed prior to being confirmed.
The Relative Cost of Correcting Errors found in Different Development Stages
Integrate Segments of the Application Development Process with Collaborative Tools
Overview Benefits Example Next Steps
LEA
N IT
RequirementsAnalyst
EnvironmentImplementer
SoftwareArchitecture
Designer
ChangeDocumentationProject
Manager
Quality MgmtTesting
Tester
SystemArchitectureEnterprise
Architect
Tool integration increases interaction between
otherwise de-normalized segments of the development process, ensuring consistent
communication.
Tool integration increases interaction between
otherwise de-normalized segments of the development process, ensuring consistent
communication.
http://www.ibm.com/software/awdtools/rup/
Refine Corporate Governance to Formalize Processes
Overview Benefits Example Next Steps
A US Bank
http://www.mckinsey.de
A European Retailer
App.Maintenance
App.Development
Total
65 65
35 35
100 100
35 45
25 30
60 75
-40 -25
Application maintenance contributes to process
inefficiencies because of the misalignment of project goals and documentation
requirements.
Application maintenance contributes to process
inefficiencies because of the misalignment of project goals and documentation
requirements.
By decreasing administrative work and increasing processing power, companies have seen large reductions in resource consumption.
By decreasing administrative work and increasing processing power, companies have seen large reductions in resource consumption.
LEA
N IT
% of Total Time Spent in Processes
Take Advantage of Universally Repeatable Processes
Overview Benefits Example Next Steps
Offshore/Outsource
Requirements
Company
Design Test Deployment
Use
Customer
Move development to an organization with core competency to increase
production efficiency.
Move development to an organization with core competency to increase
production efficiency.
Pass a higher quality product onto the customer for actual use, increasing value for the
end-user.
Pass a higher quality product onto the customer for actual use, increasing value for the
end-user.
LEA
N IT
Standardized, well-known documentation makes it
easy to push defined requirements to an outside
party for development.
Standardized, well-known documentation makes it
easy to push defined requirements to an outside
party for development.
Many Resources are Available for Baselines and Further Research
Overview Benefits Example Next Steps
LEA
N IT
Agile / LeanEmphasizes the use of CMMI, RUP and PMBOK to increase
multidisciplinary communication and decrease setup time for
projects.
Application Development
Six Sigma
Process Improvement
ITIL
Best Practices / Methodologies
CMMI COBIT
Focuses on the cause of defects, rather than process
duration minimalization. Applies statistical management to maximize product quality.
Pushes for process improvement through
maturitization of projects or divisions. Doesn’t directly
address the impact of waste.
Illustrates concepts and policies for recommended
approaches to IT management. Used to help progress
organization’s technological maturity.
Best practices for IT management to match metrics
with processes to achieve compliance and maximize return
on investment.