“software program management”
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“Software Program Management”. Rajarshi Chatterjee Feb 10th, 2013. Speaker Introduction. Rajarshi Chatterjee (Raj), AVP-CRM - PowerPoint PPT PresentationTRANSCRIPT
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Rajarshi ChatterjeeFeb 10th, 2013
“Software Program Management”
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Speaker Introduction
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Rajarshi Chatterjee (Raj), AVP-CRM
Rajarshi Chatterjee (often addressed as “Raj”), Asst. Vice President in Cognizant, is currently leading an initiative to develop products and solutions for the organization’s EAS Business Unit – a group that specializes in SAP, Oracle ERP, Cloud, BPM and Enterprise Data Management implementation programs for Fortune 500 clients. An honors graduate in Electrical Engineering from Jadavpur University, Raj has close to twenty-four years of experience in program management, implementation and independent validation of enterprise applications for Customer Relationship Management, Business Process Management, and Master Data Management. Prior to Cognizant, Raj worked for a U.S.-based OSS/BSS solutions provider and two of the best known global leaders in process automation for manufacturing. A frequent speaker in industry forums, Raj has presented in various events including CRM Management Congress and CIO forums in India and abroad. LinkedIn link: in.linkedin.com/in/rajchat
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Agenda
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1. What’s making headlines?
2. IT Outsourcing Waves
3. Success rate of Outsourcing Engagements
4. What does a Program Manager have to worry about?
5. Tectonic Shift in Technology
6. Q&A
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1. What’s making headlines?
5 Source: “Making the right moves – Global Banking Outlook 2012-13, E&Y
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2. IT Outsourcing Waves
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Outsourcing Wave
Type of Engagement Key Drivers Areas of
Excellence Key Enablers
Wave 1Y2K days
Time bound implementation of a specific solution for a specific problem
Timely delivery Quality
Process Maturity Availability of vast resource pool
Wave 2 Until 4~5 years after Y2K
Enterprise Application Outsourcing in on-site offshore mode
Cost saving by freeing client’s own resources for core activities
Technology Adoption
All round delivery capability
Customer focus
Resource pool
Time-zone difference
Exchange Rate
In case of both these waves, customers had their own Program Managers to manage vendor teams. Vendors were primarily evaluated for the skills they could provide
“Waves of outsourcing” in the presentation are as per the presenter’s own classification and may not exactly be the same as waves described in analyst articles
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2. IT Outsourcing Waves…contd.
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Outsourcing Wave
Type of Engagement Key Drivers Areas of
Excellence Key EnablersWave 3~ 2003 to 2009
Large multi-year outsourcing programs covering a large part of the IT portfolio
Optimize number of vendors
Year on year improvement in Productivity & Cost
Savings due to innovation by vendor
Vertical domain expertise
Breadth of services Global Program
Management Compliance, process
audits and transparency
Long standing relationships
Timely investment in infrastructure
Factory model using a “Blended Rates” model
Wave 4(Q4- 2009 onward)
Volume transaction intensive services, Testing, Shared services
Reduce cost per transaction
Reduce Infrastructure and data center costs
Bundled cost of tools, licenses within cost of service
Breadth of services from single vendor, i.e. Application development, Infrastructure, KPO
The scope of engagements increased over time, to extend beyond single applications or technology, but customers continued to award separate contracts to vendors depending on what they specialized in (i) software services (ii) transaction processing (iii) infrastructure management
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2. IT Outsourcing Waves…contd.
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Outsourcing Wave
Type of Engagement Key Drivers Areas of
Excellence Key
EnablersWave 5~ 2011 onwards
IT arms of organizations sold off to Big IT vendors, who are thus guaranteed work for 5 yrs+ as single vendors
Ability to reduce costs, without pruning jobs
Continuity Vendor can scale
vertical domain expertise in very short time
Maturity of people centric processes
Compliance, process audits and transparency
Long standing relationships.
Track record of audits, transparency
Wave 6~2015?
IT firms would themselves have to outsource – subcontracting for data center, niche technologies
Scarcity of newer technologies (SMAC). They will be available with niche vendors, startups
Technology adoption Ability to reskill Adaptive outsourcing
: Source: Forrester article published in 2006
Some IT service providers have successfully acquired smaller vendors, or IT operations of their customers to achieve scale. With increasing scale and diversity, the criteria for measuring success has also evolved over the years
: source: Adaptive Sourcing: Outsourcing’s new paradigm, by Julie Giera and Andrew Parker, published by Forrester, 2006
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3. Success Rate of Engagements
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Meeting contractual commitments, SLAs and quality is a basic expectation. But that may not be enough to retain clients. Some vendors have lost clients, as they could not innovate and help their clients differentiate in their business!
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3. Success Rate of Engagements
Reasons cited for termination of engagements
I.e. end of contracted scope
i.e. outsourcing deals cancelled by government bodies driven by job protection sentiments
Typically heard when multi-year outsourcing deals are due for renewal
Poor provider performance can be an all encompassing reason! The list of things that need to be tracked to ensure success of a program, can be very diverse indeed!
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4. What does a Program Manager have to worry about?
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Image source: www.codegent.com
Project Goals, Metrics, Status Reporting,
Monitoring SLAs, Project Plan updates
Communication with stake holders, escalations, managing issue lists
Roles, identifying profiles, background check, ensuring
pyramid ratios, travel readiness, SEZ compliance
Risks, Mitigation Plan, Dependencies
Deliverables, Estimates, Business benefits and
Value-adds
ODC security requirements, ensuring connectivity, BCP
readiness and periodic audits
Change Management: Impact on Users,
Systems, Processes and Data
Use Cases, Interface requirements, NFRs,
Migration, and Regulatory Requirements
Contract, penalties, deliverables, SLAs
Obtaining acceptance / deviations
Setting goals, Associate appraisals, reward &
recognition, Utilization
End user workshops , monitoring adoption
Assets that should be requested from the
Customer and tracking their usage and return
…With so much to manage, it is essential that Software Program Managers always have a holistic view of the engagement
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4. What does a Program Manager have to worry about?
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Mind Maps can be used to provide a holistic view
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4. What does a Program Manager have to worry about?
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A Checklist to avoid estimation over-run:
Use an exhaustive template to gather functional and non-functional requirements. (ex. Volere requirements template , ISO 9126 or Quint for Software Product attributes)
When estimating, list assumptions clearly, and keep an option to revisit estimate after an initial study period
Identify loosely defined deliverables in the SoW; share templates based on past projects to communicate what you mean to deliver.
Do not assume a standard percentage for governance costs: check what extent of metrics collection and reporting is required. Effort needed to extract operational data from different systems and churn out reports may not be insignificant.
Check if number of user roles and modes of login (online, offline, mobile) has a multiplying effect on the number of use cases
For migration projects, state assumptions about (i) number of source systems, (ii) quality of source data (iii) extent of history data that has to be migrated (iv) need for data masking (v) number of migration iterations. Identify effort to create test data, if migrated data is not available
In case of regulatory compliance, testing and documentation effort can increase manifold; check if there is any need for security testing using special tools (code scanning, penetration testing, malicious sql injection)
State assumptions about quality of input code, and number of testing cycles assumed, in independent testing projects, where development is done by a different vendor.
State assumptions about maximum % duration of environment non-availability that can be accommodated, without schedule slippage; track it and report regularly
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4. What does a Program Manager have to worry about?
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Risks commonly encountered Over-zealous salesmen saying yes to every requirement.. Inability to say “NO” later
Opposition from groups in client organization who fear loss of importance & job
Lack of a single deciding authority to resolve conflicting requirements; Political issues related to who funds, who uses and who is responsible for a program
Unwillingness of client personnel to give sign-offs, as they fear they will not be able ask for changes going forward; Continuously changing timelines and scope
Non engagement of end users till the very last stage
Clear lines of communication with stake holders / sponsors not established
Gaps in existing documentation (in case of maintenance projects)
Delays in establishing connectivity, completing security compliances and on-boarding
Inability to access data in existing systems due to prevailing data privacy laws
Limited testability due to non-availability of interfaces, web-services and other applications in Dev / QA environments
Policy regarding “Hardening time” for servers – which delays availability after procurement
Terms specified in MSA that restrict on-boarding of employees who may have worked through another vendor
Sustaining the motivation of team members, in long drawn projects
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Requirements
Design
Prototyping
Build & Integration Requirements
DesignPrototyping
Build & Integration
Post-Deployment
Cost to rectify
4. What does a Program Manager have to worry about?
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Change Management
• What is a Change to a vendor is often considered “implicit” by a customer
• Very often, the impact of changes is complex, not because of the requirement itself – but due to changes in underlying layers that have to be done retrospectively.
• Impact is more the later it happens or is discovered
ex. Adding a field in a screen in Requirements stage may be easy. But after Development, adding a field will mean making changes in UI layer, data model, interface specifications, security matrix, migration routines, test cases and user documentation
SDLC Stage when change is initiatedSDLC Stage that change is attributable to
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4. What does a Program Manager have to worry about?
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Change Management…contd.
Be Proactive – Think aloud not just about what you have to deliver, but whatever can impact your client – even if it is outside your scope
• What is the impact of introducing a new application on other applications – factor the time that other application owners may need to integrate and interface with a new application
• Will standard operating procedures have to be changed, i.e. help desk, trouble ticketing, back-up and recovery due to introduction of a new application?
• Infrastructure and server dimensioning can be complex and may require specific knowledge of performance benchmark data from product OEM vendors
• Communicate early – not after design, but many times before design is frozen.
• Hybrid agile model gives the opportunity to get accustomed to change in small increments. Even so, some activities i.e. migration of data still require a “big-bang” approach. Change Management then requires thinking through the consequence of not only what is introduced new, but the impact on users, of not seeing what they are used to seeing.
Change Management is a challenge that has remained unchanged. Few other questions that Program Managers are asked, have also not changed over the years!
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4. What does a Program Manager have to worry about?
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Some of those questions that Program Managers are asked in all engagements!
• How will you ensure continuous productivity improvement?
• How will you contain attrition levels with large scale hiring by your competitors?
• How much year on year savings and productivity gain can you guarantee?
• Can you give us examples of TCO & payback period for similar engagements?
• SLA % you are willing to bind yourself to
• Can you indicate approximate effort that will be required by client FTEs? Data will be used for arriving at total cost involved for each vendor
• What is the confidence factor in effort estimate, i.e. worst case how much do you think it will vary?
At the root of everything that we’ve discussed until now, is technology… and we are currently witnessing a tectonic shift in Technology, not witnessed in many years.
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5. Tectonic Shift in Technology
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5. Tectonic Shift in Technology
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Analyst Summary
Source: 2013 Market Trends and Predictions
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5. Tectonic Shift in Technology
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5. Tectonic Shift in Technology
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The major reason for moving to the cloud is, it offers instant scalability and computing power on demand, without long term commitments
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5. Tectonic Shift in Technology
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Through 2015, 90% of enterprises will bypass broad-scale deployment of Windows 8
By Year-End 2014, three of the top five mobile handset vendors will be Chinese
By 2015, big data demand will reach 4.4 million jobs globally, but only one-third of those jobs will be filled.
By 2014, European Union directives will drive legislation to protect jobs, reducing offshoring by 20 percent through 2016.
By 2014, IT hiring in major Western markets will come predominantly from Asian-headquartered companies enjoying double-digit growth.
By 2017, 40 percent of enterprise contact information will have leaked into Facebook via employees' increased use of mobile device collaboration applications.
Through 2014, employee-owned devices will be compromised by malware at more than double the rate of corporate-owned devices.
Gartner’s top technology predictions
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5. Tectonic Shift in Technology
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Through 2014, software spending resulting from the proliferation of smart operational technology will increase by 25 percent.
By 2015, 40 percent of Global 1000 organizations will use gamification as the primary mechanism to transform business operations.
By 2016, wearable smart electronics in shoes, watches and accessories will emerge as a $10 billion industry
By 2014, market consolidation will displace up to 20 percent of the top 100 IT services providers
Gartner’s top technology predictions
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5. Tectonic Shift in Technology
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Technology / Business term or concept
How frequently have I come across (5: everyday, 1: heard somewhere, 0: never…)
Where do I rate myself(5: Guru 1: Novice, 0: no-where)
SOA 5 2
Web 2.0 4 2.5
SaaS 4 3
Mashups 4 3
Virtualization 5 4
Cloud 3 1
Big Data
BYOD
…
With so much happening, can Program Managers stay in synch?
A simple tool to measure your own obsolescence
A practical way of staying abreast is to read about those topics which have a high score for frequency, and a low score in self assessment!
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References
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1. Global Banking Outlook 2012-13 by Ernst & Young
2. 2013 IT Market Trends and Predictions by SAP (http://www.slideshare.net/sap/2013-predictions-it-market-trends)
3. Gartner – 2012 Hype Cycle
4. Marc Andreesen’s blog on technology trends (http://techcrunch.com/2013/01/27/marc-andreessen-on-the-future-of-the-enterprise/)
5. Adaptive Sourcing: Outsourcing’s new paradigm, by Julie Giera and Andrew Parker, published by Forrester, 2006
6. Top 5 reasons for contract termination – Buyers –vs- Providers http://www.growthbusiness.co.uk/article_assets/articledir_2298/1149328/Stephen%20Bullas%20-%20presentation.pdf
7. Microsoft’s presentation on Azure & Cloud computing
8. Volere’s requirements gathering template copyright © the Atlantic Systems Guild Limited
9. Software product attributes: ISO 9126 presentation by Quint
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Software Product Attributes