Aberdeen Group Extending Software Development Methodologies To - - PowerPoint PPT Presentation

AberdeenGroup

Project #

Extending Software Development Methodologies To Business Decision Making

Tim Sloane Director, Enterprise & Internet Infrastructure Sloane@aberdeen.com 617-854-5324 June 26, 2002

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Agenda

• The Software Development

Process Reviewed

• Software Realities
• Business Planning

Drives Our Requirements

• “Modeling” & Simulation
• Lessons From Other Industries
• Model Sharing & Re-Use

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“Software Development” Defined (For This Discussion)

• Implements An Important

Business Process

• Involves Multiple Teams

And/Or Departments

• Part Of Enterprise Strategic
• r Tactical Imperative
• Represents Significant Enterprise

Investment

• Failure Impacts Bottom Line Or Delays

Execution of Corporate Strategy/Tactics

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Implementation IT Organization Concurrent Engineering

• f Business Processes,

Products, and Organizational Structure

Business Process Development Stages

Strategic Direction

Execution Operational Data Evaluation of Business Processes, Products, and Organizational Structure

Bayer, F. Junginger, S. Kühn, H, A Business Process-Oriented Methodology for Developing E-Business Applications

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IT And Software Supplier Focus Today

Concurrent Engineering

• f Business Processes,

Products, and Organizational Structure

Strategic Direction

Operational Data Evaluation of Business Processes, Products, and Organizational Structure

Based on the BPMS7-Paradigm (Karagiannis et al. 1996; Bayer et al. 1999),

Implementation IT Organization Execution

Inception

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Software Success In 1999 DoD Study

• Review Of $35.7B Spent By The DoD On

Software Indicates[1]:

– 75 % Never Used Or Cancelled Prior To Delivery – 23 % Used After Modification – Only 2% Used As Delivered

Source: JAWS S3 Proceedings, 1999

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AberdeenGroup Ford “…business managers asked IT for a major system upgrade costing about $1 million. But, months later, when it came time for deployment, managers had changed their minds. The enhancements, though built and paid for, never got off the showroom floor.” Only about 30% of reengineering projects are successful.

Software Reality In The Large Enterprise

• S. Caulfield, IT Services Global Manager, Ford
• M. Hammer, J. Champy,

“Reengineering the Corporation”

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AberdeenGroup

Business And IT Working Together

• Only 5% of enterprise IT
• rganizations are fully

integrated into the business planning cycle [Meta Group]

• Requirements creep should

be around 1 percent per

• month. In fact, creep of more

than 2 percent a month is probably a sure sign of a project that will never reach

• completion. [6]

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The Business/Technical Divide

IBM Systems Journal, Volume 39, Number 2, 2000 by D. Bevington

Analysis Design Predominantly Technology Focused Solution Predominantly Business Focused Problem Statement Interaction of Business and Technology Models Discomfort Zone

Business Models Technology Models

?

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Measuring & Evaluating “What Is”

Concurrent Engineering

• f Business Processes,

Products, and Organizational Structure

Strategic Direction

Operational Data Evaluation of Business Processes, Products, and Organizational Structure

Based on the BPMS7-Paradigm (Karagiannis et al. 1996; Bayer et al. 1999),

Implementation IT Organization Execution

What Is

Business Intelligence & Monitoring

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AberdeenGroup

Strategy and Tactics Look at “What If”

Concurrent Engineering

• f Business Processes,

Products, and Organizational Structure

Strategic Direction

Operational Data Evaluation of Business Processes, Products, and Organizational Structure

Based on the BPMS7-Paradigm (Karagiannis et al. 1996; Bayer et al. 1999),

Implementation IT Organization Execution What Is

Business Intelligence & Monitoring

What If

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Process Selection Cost/Benefit Analysis

Concurrent Engineering

• f Business Processes,

Products, and Organizational Structure

Strategic Direction

Operational Data Evaluation of Business Processes, Products, and Organizational Structure

Based on the BPMS7-Paradigm (Karagiannis et al. 1996; Bayer et al. 1999),

Implementation IT Organization Execution What Is

Business Intelligence & Monitoring

What If

Cost/Benefit

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AberdeenGroup

Business Evaluation Cycle

Concurrent Engineering

• f Business Processes,

Products, and Organizational Structure

Strategic Direction

Operational Data Evaluation of Business Processes, Products, and Organizational Structure

Based on the BPMS7-Paradigm (Karagiannis et al. 1996; Bayer et al. 1999),

Implementation IT Organization Execution

What If What Is

Business Intelligence & Monitoring

Cost/Benefits

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Quarterly Business Re-Evaluations

• Quarterly Financial Reviews Drive

Business Re-evaluations

• Common IT Role Is To:

– Capture & Store Business Data – Produce Mandated Reports – Produce Reports Requested By Senior Management That Provides Operational Insight

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Ideas Are Not Treated Equally

• Models of critical enterprise options are inherently
• political. Financial modelers report[8]:

– 45% were asked to alter sales/revenue forecasts to reflect senior manager’s more favorable level – 52% were requested to adjust cost projections to a more favorable level – 42% were requested to create “backcasts” to support senior manager’s sales/revenue projections – 26% report that divisions/departments withhold critical data needed to develop accurate models

Anyone Still Surprised At The Project Failure Rate?

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IT Has Limited Opportunity To Respond

• Only 5% of enterprise IT
• rganizations are fully integrated

into the business planning cycle

[Meta Group]

• Requirements creep should be

around 1 percent per month. In fact, creep of more than 2 percent a month is probably a sure sign of a project that will never reach

• completion. [6]

It Is Imperative IT Establish A Voice In Business

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Good News: IT Has The Basic Tools

• Data Collection / Data Analytics
• Business Process

Documentation In:

– Documents – Software – Workflow / BPM – Data

• Modeling Talent and Integration Tools
• Analytic Thinking Skills
• A Self-Interest For Cross-Organizational Success

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Accept A Broader View Of “Model”

Model

A simplified representation of a system that approximates reality but emphasizes some features/functions at the expense of

• thers to promote a better understanding of the modeled

item.

Simulation

The manipulation of a model in such a way that it operates on time or space to compress it, thus enabling one to perceive the interactions that would not otherwise be apparent.

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The Expanded Role For Models

• Models are inherently social media and mechanisms. They

become the organization’s lingua franca, or medium francum, and bridge the multiple Departments of Babel. Simulation mediates between people and information and becomes the medium for relationship management between stakeholders.

• As an adjunct to software prototyping, simulation will transform

the speed and nature of communication and collaboration for process improvement and therefore for software development.

• A unified modeling and simulation approach supports the

visualization of new processes across departments and enterprises – and comes with a ROI calculator built in!

derived from [4] “Serious Play”

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Simulation Applied To Architecture

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Simulation Applied To Aerospace

– Henry Shomber, 777 Chief Engineer For Digital Preassembly” – EPIC – Electronic Preassembly In Computer, Drove Collaboration Using 2,200 Terminals For Design Team And Key Suppliers – 777 Design Goals Constrained The Model – Departments Were Allocated Assets (weight chits) – Automatic Conflict Detection And Alert Generation

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Simulation Applied To Process Manufacturing

• Stakeholders – Plant Designers, Business Managers,

Equipment Manufacturers, Builders

– Bayer Consolidated Four Types Of Simulation And Models To Analyze Polymerization Process And Plant Design Prior To Construction – The Simulation Analysis Maximized Productivity To Cost – The Simulation Was Also Used As Prime Training Tool

• Managers see impact of operational decisions
• Operators see impact of specific control functions

– Bayer Sells Managerial Training Using Business Simulation

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Simulation Benefits:

• Encourages Collaboration Between Stake Holders
• Drives Common Vocabulary / Business Object Definition
• Communicates The Solution To Stake Holders And Others
• Reduces Or Eliminates The Need For Prototypes
• Provides Clarity On Organizational Impact
• Automatically Formalizes The ROI Perceived By Stake Holders
• Drives A Common Set Of Expectations
• Defines How Success Will Be Measured
• Becomes An Ongoing Communications And Training Tool
• Provides New Insight Into Corporate Strategy And Tactics

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How Did Bayer Implement Its Models?

• Modeled All Aspects Of Styrene-acrylonitrile (SAN)

Polymerization Production.

• Bayer Integrated Four Models And Four Simulations –

Thermodynamic, Process, Process Controls and Plant.

• Developed Common Meta Model Repository
• Developed A Common Meta Modeling Language
• Developed Transforms To Support Each Simulation Engine
• Flow Language Directs Analysis Data Between Simulations and

Stores Results In Repository.

• Simulation Used Across R&D, process design, Plant

Commissioning And Operational Training

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Bayer Process Model Warehouse

Model Developer Simulation Developer ROME CHEOPS OPEN THERMO MODKIT

Browse Model Retrieve Model Evaluate Model Store Model Calculate Physical Properties Calculate Physical Properties Select Thermod Models Compute Unit Module Computet Flowsheet Build Model

Computer-Aided Process Modeling and Simulation (Realms) 5/16/2002

1) Build Models In Common Language 2) Store In Meta Repository 3) Find Model 4) Design Sims 5) Design Flows 6) Run & Save Analysis Data

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Mapping Simulation To OMG Standards

Model Developer

MOF

UML Process UML Simulations UML Modeling

Browse Model Retrieve Model Evaluate Model Store Model Calculate Physical Properties Calculate Physical Properties Select Thermod Models Compute Unit Module Computet Flowsheet Build Model

Source: AberdeenGroup

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Model Re-Use And Collaboration

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Preliminary Findings

• Sharing Models Across Technology Domains Will “Lift All Boats.”
• Simulation Can:

– Drive Collaboration between IT and Business Units On Requirements – Gather And Document Key Benefits – Provide Alternative To Prototypes – Create New Solution Domain Coupled To UML/MOF/XMI

• Simulation Model Must Be Interoperable With UML
• Model Sharing Enables Incremental Development
• Repository Needed To Manage Sim Models and Data

"A conclusion is simply the place where someone got tired of thinking." Arthur Block

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Source

[1] Jarzombek, Stanley J. “The 5th Annual Joint Aerospace Weapons Systems Support, Sensors, and Simulation Symposium (JAWS S3).” Proceedings, 1999. [2] The Standish Group International, Inc. The CHAOS Report, 1994. [3] Software Engineering Institute. The Capability Maturity Model Guidelines for Improving the Software Process. Boston: Addison-Wesley, 1994. [4] Schrage, M. “Serious Play – How the World’s Best Companies Simulate To Innovate.” Harvard Business School Press 1999. [5] D’Hertefelt, Sim. “13 Common Objections Against User Requirements Analysis, and Why You Should Not Believe Them.” Interaction Architect.com 9 June 2000. [6] Leishman, Theron R. and Cook, Dr. David A. “Requirements Risks Can Drown Software Projects.” CROSSTALK The Journal of Defense Software Engineering April 2, 2002. [7] Bayer, F. and Junginger, S. and Kühn, H. “A Business Process-Oriented Methodology for Developing E-Business Applications” (ECEC'2000), April 17-19, 2000 [8] Gailbraith, C. and Merrill, G “The Politics of Forecasting: Managing the Truth” 1996 California Management Review [9] AN APPROACH TO USE UML FOR BUSINESS PROCESS MODELING AND SIMULATION IN ADONIS -- Proceedings of the 13th European Simulation Multiconference (ESM 99), Warsaw, Poland, June 1-4, 1999