Agile and Lean transformations depend to a great extent on cultivating a good sourcing ecosystem. The decisions you make around the partners and providers supporting your transformation and projects will be at the core of a successful strategy. But sourcing strategy needs to go beyond just resource or services providers (read outsourcing) and address a larger ecosystem made of Agile SW development and delivery choices, collaboration and communication capabilities for distributed teams, and teams' physical work spaces, standard equipment, and office layout.
In September, I published a report on how to source your Agile strategy, that describes what the ecosystem looks like and how to navigate it effectively, the document is part of our larger research container on Agile - The Agile and Lean Playbook. The report gives an overview on how large vendors, SIs, and medium to small consulting organizations can (not) help you with your Agile journey but also what you need to do to be successful. Here are some of the takeaways from the research:
What you think about Agile and Lean might not be what your SI thinks. You need to take control of your own destiny with Agile and Lean. Change your application development and delivery sourcing strategy to embed the best talents around the world to help you make it happen. But be careful with the traditional SIs, because Agile is as disruptive to them as it is you, and if they have not been seriously transforming themselves, it will be hard for them to deliver Agile services to you. Some good alternative new fully Agile players exist, including highly specialized external consulting firms. You might want to start testing the ground with these options.
I just finished analyzing our Q3 2012 Global State Of Enterprise Architecture Online Survey, where we asked a number of questions at the end of the survey on how firms identify and introduce new technology – new technology that your firm is counting on for innovation and competitive advantage. The results underscore a conviction that is growing in me: IT’s “one-size-fits-all” approach to standardizing everything and general aversion to risk isn't cutting the mustard. Simply put, opportunities for competitive advantage through technology-fueled disruption get missed, and this means digital extinction. Some data from our survey of 207 enterprise architects:
58% reported that sales and marketing is among the top five most likely organizations to deliver technology innovations, and they are chasing windows of opportunity that close in months. IT typically takes at least a year to do anything.
52% say there is at least some business dissatisfaction with the level of new technology introduction. The top reason, given by 78% of respondents, is that IT is too slow.
70% of respondents admit their firms have trouble reacting to disruptions caused by emerging technology, and 60% admit to difficulty reacting to change in general.
Last December, I published three things I'd tell your CIO. Since then, I've spent time with dozens and dozens of sourcing and vendor management professionals, CIOs, and leaders of application development and delivery, including last week's Paris Forrester Forums. Most days, I share our ongoing research on what impact today's software-fueled, consumer-led digital disruption has on your ability to meet and exceed the expectations of your customers and the employees serving them. For some folks, software and software development remains a commodity. But for many, the need to deliver great software has taken hold of 2013 planning discussions. With July just around the corner, and as you start 2013 planning, focus on what you need to start delivering great software (remember, software is your business), and keep these three things I'd tell you and your CIO in mind:
Just over 3 months ago, I made note of three things I'd tell your CIO, all of which focused on your need to build a software development competency to help your firm thrive in this age of software-fueled, consumer-led disruption. Since then, we've heard from a number of clients stating that they're having a tough time convincing their executives, from COOs and CFOs through to CIOs, that they need to stop looking at software and app development as a commodity.
Vendors you work with aren't helping. System integrators and consultancies continue to tell your CFO and CEO to outsource your software development work to them, that they can deliver more quickly, and more cheaply, than you can. Software application vendors build their marketing around needing no customization, even "no software." This helps fuel the perception and myths many executives hold that software development, especially app dev, is a commodity.
Recent research published by Phil Murphy and survey data we recently collected in our Forrsights Software Survey, Q4 2011 can help you bust those perceptions and myths and help you show your executives the importance of software development.
Think of a medieval fortress: It was originally used for a small army, it has walls nine meters thick, and it’s surrounded by buildings hundreds of years old. Upon entering, you are confronted with the concept of eternity.
This fortress is located in the smallest state on earth — though it is also perhaps the best-known state in the world. The business housed within the fortress is what many might classify as a SME but with with complexity of a large enterprise, holy but busy, centralized but truly global — its work spans hundreds of countries with hundreds of currencies and hundreds of languages — and it serves very special and demanding clients.
Have a clue yet of where we are?
Zoom on Italy, then zoom on Rome, then zoom on Vatican City, and you can’t miss the round tower (Torrione Sisto V) where the Vatican Bank, or Istituto per le Opere di Religione (IOR ), is located. You won’t be allowed in if you are not a client, an employee, or part of a religious congregation. Change comes hard to institutions this steeped in tradition. To give you a clue, IOR’s previous managing director spent his entire career at IOR — 60 years — and retired at the age of 80. We all know it’s the soft and cultural aspects of transformation that are the hardest part for any organization.
Nevertheless, IOR has been going through a major change since 2008, working to replace its legacy IT system with a modern BT one. The new BT system brings more flexibility for the business, richer business functionality, and greater integration and development capabilities. Enabling fast change is the key driver for IOR’s IT transformation program from IT into BT.
Ultimately, customers don't judge you based on how well you gather business requirements, choose development technologies, manage projects, or march through the development process — they judge you based on how they feel before, during, and after they use your software. This is the digital experience. If you get the customer experience wrong, then nothing else matters. And expectation inflation is sky-high thanks to the Apple-led smartphone revolution. To succeed in the new age of digital experience, application development professionals must collaborate with their business partners and customers to create experiences that customers love. You need a new approach represented by these five axioms:
Software is not code; it creates experience.
Development teams are not coders; they are experience creators.
Technical talent is table stakes; great developers must be design and domain experts.
Process is bankrupt without design; you get what you design, so you had better get the design right.
Software is a creative endeavor, not an industrial process like building automobiles. Structure your methodology to empower your creative talent.
My colleague and friend Mike Gualtieri wrote a really interesting blog the other day titled "Agile Software Is A Cop-Out; Here's What's Next." While I am not going to discuss the great conclusions and "next practices" of software (SW) development Mike suggests in that blog, I do want to focus on the assumption he makes about using working SW as a measurement of Agile.
I am currently researching that area and investigating how organizations actually measure the value of Agile SW development (business and IT value). And I am finding that, while organizations aim to deliver working SW, they also define value metrics to measure progress and much more:
Cycle time (e.g., from concept to production);
Business value (from number of times a feature is used by clients to impact on sales revenue, etc.);
Productivity metrics (such as burndown velocity, number of features deployed versus estimated); and last but not least
Quality metrics (such as defects per sprint/release, etc.).
Never has a new trend annoyed me as much as Agile. Right from the get-go, the Agile Manifesto revealed the weaknesses and immaturity of the founding principles. The two most disturbing: “Working software is the primary measure of progress” and “Business people and developers must work together daily throughout the project.” These are
Most Forrester readers certainly understand the importance of empowering their employees to contend with highly informed and increasingly demanding customers. But I’m often asked just how to overcome the process and data integrity challenges of apps or services that empower employees and/or drive continuity of experience for consumers across channels. With the rise of mobile as well as web and call center interactions and with a proliferation of new tools for managing distributed processes and data, most application development and delivery professionals as well as their business process and applications colleagues have to absorb all the arguments before they make decisions that could be critical to their firms’ futures – to say nothing of their own careers.
One pioneer whom I interviewed was immensely proud of his lightning rollout of a guerilla app to support his firm’s front office in advising clients on complex product choices. I asked him about future plans and sheepishly he admitted they would be starting again from scratch because the guerilla app was unable to leverage enterprise services exposing critical data about product offerings. He remarked ruefully that sometimes you do have to follow the IT standards “yellow brick road” rather than just head for the hills, but wouldn’t it be great to have the best of both worlds, with both agile deployment and full advantage taken of enterprise assets and data?
If you need a deeper understanding of the issues and options, then I’d like to invite you to join us at Forrester's Application Development & Delivery Forum, where my colleague Clay Richardson and I will discuss in practical terms how to deliver integrated experiences across multiple touchpoints.
Marketing planning has changed little in the past century. It's essentially a linear process built on the development of rigid 12-month plans built around brand and channel metrics. This approach is coming increasingly under strain as the combined effects of the growth of digital marketing platforms and a volatile economy demand marketing plans that deliver clear business outcomes and can adapt and improve to meet evolving market dynamics.
Over the past 12-18 months, we have come across several marketing organizations that have decided to do something about this situation and look for new ways to improve their approach to marketing planning by adopting some principles borrowed from a relatively new methodology originally conceived for software development efforts: agile development.
From the interviews that we did with marketers that are experimenting with this new approach, several of the key principles of "agile" development looked particularly relevant to innovating their approach to marketing planning:
A clear definition of business outcomes and associated business metrics