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“The value decade is upon us. The only way to
keep customers is to constantly figure out
how to give them more for less.” - Jack Welch
Current Demands from Organizations• To understand what customer wants and
to provide it immediately, on demand at lower cost
• To provide products & services of high quality and reliability consistently
• To keep up with pace of change, Technological as well as political and social
• To be one step ahead of the customer’s needs; that is to predict what the customer will want one year or ten years from now
Quality – Changing Views
Past Present
Defects need not be revealed to customers
Quality problems are product related
Quality issues considered historical event
Increased quality increases costsImproved quality reduces total cost of ownership
Quality issues analyzed and contribute to product and process quality improvement
Quality problems are engineering and process related
“Known defects” need to be communicated to customer to insulate customer from surprises
Quality is inward focused Quality is customer focused
Quality is inward focusedQuality function adds value to organization and customer
Streamlined Processes
Flattened Organizations
Complex Technology
Deliver Business
Value
ControlCosts
Senseand
Respond
Integrating people and processes for SUSTAINED COMPETITIVE ADVANTAGE
The Changing World and IT’s Response
Business Differentiators
Process
Tools
People
Code Review Tools
PMP
Knowledge Management
Requirement Development/Management tool
PgMP
Technical Certifications
Domain Certifications
Estimation
Metrics
Productivity
Governance
SDLC
Design tools
Release andBuild tools
CM Tools
Project Management
Risk Management
Business Imperative : Narrowing the gap for greater business capabilities
Human Skills and Technology Complexity
QA Transformation
Building competitive advantage through people , Christopher A. Bartlett & Sumantra Goshal.
People - as a Differentiator
Processes – as a Differentiator
Figure, from Solution Selling, Michael Bosworth
Value creation and Service Innovation
Customer’s Customer
Customer
VZ-1
VZ-2
VZ-3
CZ-1
CZ-2
Vendor’s Competition
Customer’s Competition
Vendor
Create Value
Value Q
uantification
Def
ine
Val
ueVZ- Value Zone CZ – Comparison Zone
Communication
Cu
sto
me
r B
usi
ness
Ob
ject
ive
sV
end
or’s
Bus
ine
ss O
bje
ctiv
es
Objectives for StandardizationPPT Transformation ensures• Consistency in implementation of all
required processes• Increased usage of standard Tools• Good Customer Connect and Governance• Effective usage and analysis of metrics• Engagement level benchmarking of
Performance• Standard Estimation models • Good Knowledge Management• Up skill and cross skill of resources
Cost of Quality
Production
Prevention
Appraisal
Failure
Production
Prevention
Appraisal
Failure
ReducesCost of poor quality
S/w
Dev
elop
men
t co
st
44 %56 %
Opportunity for Value Creation Through Quality
Quality
Growing Revenues
Reducing Defects & Errors
Improving Cycle Times
Reducing reduced cost
Improving Capability
Reducing Variation
Improving Operational
Efficiency
Engineering Cost Cost of Quality Maintenance
0 100
Regular development process
51 % ReductionEngineering Cost
13 % ReductionCost of Quality
MaintenanceCost
0 100
DevelopmentProcess withQuality guided
Greater Productivity
Higher Productivity
51 % Increase
Lower Cost
Cost of Quality
13 % Reduction Assured In Process
Quality
Post Delivery Defects
51 % Reduction
Reduced Maintenance
Quality Processes – Ensuring Lower TCO
51 % Reduction Post Delivery Maintenance
Lower TC0 – 30 %
"When you're out of quality you're
out of business.”
Thank You!
