The race to digital is heating up in financial services (FS) organizations; increasingly, the engine making this happen is Agile. Why? Quite simply, it is software that makes any financial business truly digital. Organizations are therefore in a rush to become great at rapidly innovating, developing, and delivering new software products to win new clients and retain and serve existing ones.
Oliwia Berdak and I have just published twin reports — one for eBusiness and channel strategy professionals, and one for AD&D leaders — that share our findings on how FS organizations are trying to ramp up their digital innovation capabilities rapidly by leveraging Agile and other innovative models.
Our key finding comes in response to a question: Are you building a digital lab that contains great developers but is isolated from key business leaders and other technology management teams? If the answer is yes, don’t! If separate digital units pursue disruptive opportunities, they will often end up with just front-end apps or proofs of concept that are impossible to integrate and scale with same speed they were developed.
Today’s customers, products, business operations, and competitors are fundamentally digital. Succeeding in this new era mandates everyone constantly reinvent their businesses as fundamentally digital. You have two choices,
· become a digital predator; or
· become digital prey.
To compete in this new digital market norm, software applications and products must contain new sources of customer value while at the same time adopting new operational agility. I&O pros need to change from the previous methods of releasing large software products and services at sporadic intervals to continuous deployment. All must adopt key automation technologies to make continuous deployment a reality.
Over the past 25 years, many organizations have modelled their support – and in some cases their delivery organization – after the ITIL frameworks and processes. For many, ITIL has been helpful in establishing the rigor and governance that they needed to bring their infrastructure under control in an era where quality and consistency of service was critical and technology was sometimes fragile.
Today, we are 5 years into “The age of the customer” – an era where customer obsession is driving technology and which demands a culture of speed and collaboration to differentiate and deliver extraordinary customer experience to drive business growth. In this era, the rise of mobility and the race to deliver differentiated business processes is critical to success. Your development teams are driving velocity and elasticity with increased quality and availability, leveraging DevOps practices and often driving change directly to production.
This transition has led some organizations to experience friction between the competing priorities, velocity and control, especially for those who continue to execute on the traditional model of ITIL.
ITIL is starting to show signs of age. That does not mean it is on the verge of demise. ITIL must adapt. To understand the relevance of ITIL and IT Service Management practices in this era of Modern Service Delivery, Eveline Oehrlich and Elinor Klavens and I have embarked on a review of ITIL and the use of IT Service Management practices supporting todays BT agenda.
For many years, infrastructure and operations (I&O) professionals have been dedicated to delivering services at lower costs and ever greater efficiency, but the business technology (BT) agenda requires innovation that delivers top-line growth.
The evolution and success of digital business models is leading I&O organizations to disrupt their traditional infrastructure models to pursue cloud strategies and new infrastructure architectures and mindsets that closely resemble cloud models.
Such a cloud-first strategy supports the business agenda for agility, rapid innovation, and delivery of solutions. This drives customer acquisition and retention and extends the focus beyond ad hoc projects to their complete technology stack. The transition to cloud-first mandates a transition for infrastructure delivery, management, and maintenance to support its delivery and consumption as a reusable software component. Such infrastructure can be virtual or physical and consumed as required, without lengthy build and deployment cycles.
Growing cloud maturity, the move of systems of record to the cloud (see my blog “Driving Systems of Records to the Cloud, your focus for 2016!)container growth, extensive automation, and availability of "infrastructure as code" change the roles within I&O, as far less traditional administration is needed. I&O must transition from investing in traditional administration to the design, selection, and management of the tooling it needs for composable infrastructure.
Modern application delivery leaders realize that their primary goal is to deliver value to the business and its customers faster. Most of the modern successful change frameworks, like Agile (in its various instantiations), Lean, and Lean Startup, which inspire developers and development shops, put metrics and measurement at the center of improvement and feedback loops. The objective of controlling and governing projects to meet vaguely estimated efforts but precisely defined budgets as well as unrealistic deadlines is no longer on the agenda of leading BT organizations.
The new objective of BT organizations is to connect more linearly the work that app dev teams do and the results they produce to deliver business outcomes. In this context, application development and delivery (AD&D) leaders need a new set of metrics that help them monitor and improve the value they deliver, based on feedback from business partners and customers.
Preproduction metrics. Leading organizations capture preproduction data on activities and milestones through productivity metrics, but they place a growing emphasis on the predictability of the continuous delivery pipeline, quality, and value.
I am just back from the CA World 2015 in Las Vegas, where everything was cool: from the weather, with unexpected but welcomed temperatures in the low 50s; to the event theme, with a strong focus on Agile, DevOps, APIs, and security; to Fall Out Boys and Sheryl Crow’s concerts.
As digital pervades all industries, and software becomes the brand, CA Technologies, which has traditionally had a stronger focus in the IT operations or “Ops” world, is making huge efforts to conquer the hearts and minds of the developers of large-scale development shops, or the “Dev”world. No doubt CA has been building a stronger DevOps in the last few years. Its goal is to partner in a larger industry ecosystem and be better positioned to serve the many organizations that are struggling to scale Agile and consistently build better applications faster. To make a stronger play in the Agile and Dev side of DevOps, CA made two brilliant acquisitions in 2015 which CEO Mike Gregoire highlighted in opening session of CA World: Rally Software, a leader in Agile project management at Scale, and Grid-Tools, a leader in Agile test data management and test optimization and automation.
With its revamped Dev strategy, CA aims to enter the Olympus of those large software and enterprise companies that have moved thousands of internal developers, testers, operations pros, and even managers to Agile and DevOps. With this transformation, CA will position itself to better serve current and future clients’ new needs to develop more software at speed. While CA started this transition much later than its competitors like IBM, Microsoft, HP, and other large software players (and even traditional end user enterprises), we recognize it’s still in time!
I bring tidings of great joy to the Forrester community, and especially to our clients! We have a new analyst on the Infrastructure & Operations Research team! It took a long time to get the right person, but we finally did. Once you meet him (and you likely already have), you will agree!
The newest Principal Analyst on the I&O team is Robert Stroud! Rob comes to us after a long stint at the software company CA, where he was most recently the VP of Strategy and Innovation. Central to his recent work is a significant amount of evangelism about DevOps, the hot movement promoting rapid application and technology service delivery. He has been very active in the governance and service management communities for years, holding many leadership positions. He just wrapped up his tenure as the International President of ISACA and was a primary author of the last few versions of the COBIT framework. He has won several awards in this community in recognition of his many achievements – all well deserved!
Our research focus for this quarter was about how to make your team - The Service Delivery Team - more effective and efficient part of the I&O team. This spans four key topics: how to support your company's employees, how to become more automated, how to increase your speed and quality of service delivery, and who should or could you leverage in a broader ecosystem. The following reports are just a few highlights of our work for you to put on your night time reading list:
Automation is the story of the digital business and the huge transformation within technology management and I&O, and JP Garbani tackles it head-on in the first installment of The Automation Manifesto series, “Automate I&O To Answer Digital Disruption”. Because of the fast pace and ever-changing demands of digital disruption, organizations’ data centers are being pushed to their limit, both with man-power and finances. Enter the need for automation – today’s automation solutions address scale, speed, costs, and repeatable accuracy that is needed to remain competitive. JP’s report will help you assess the best ways to implement automation for your company and the benefits it will bring, no matter your current position.
The age of the customer demands more of companies, forcing them to change how they develop, market, sell, and deliver products and services. In response, CIOs must invest in business technology (BT) — the technology, systems, and processes to win, serve, and retain customers. At Forrester’s Forum For Technology Leaders in Lisbon (June 2-3), leaders from firms like BMJ, Portugal Telecom, BBVA, Mastercard, Alliander, DER Touristik and UniCredit will share strategies that you can use to achieve Read more
I would like to welcome you to the "Modern Service Delivery" playbook. In this playbook, we are researching how you can take your tech operations team and transform it into a modern operations team. You know already that in the age of the customer, I&O must transform to support businesses by accelerating the speed of service delivery, enabling capacity when and where needed and improving customers and employee experience. You must buddy up with your application development team! Get used to a new way of working. That gets me to the point of this blog – CALMSS! Yes – you are reading this right. CALMSS is not just a scramble of words – it is a fine assessment of characteristics with the purpose of describing a methodology. The first acronym - CAMS (Culture, Automation, Measurement, Sharing) was coined by John Willis and Damon Edwards in 2010 in the first US based Devopsdays in Mountain View, California. Later on the “L” for lean was added by Jez Humble. We at Forrester have added an additional “S” for sourcing as we believe that DevOps must be supported with a solid sourcing strategy to extend the ecosystem. This then brings us to the arcronym of CALMSS.
After a great conversation with Patrick Debois – godfather of DevOps – we are working on a Forrester CALMSS research report (publishing April 2015) where we list what we think are the characteristics of each letter that supports measurement at individual, project, intra-company and inter-company levels. We will be focusing in our playbook on the project level so that you can measure and benchmark yourselves.