An effective transformation to Agile can't ignore strategic sourcing decisions

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.
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Agile Development Makes Business Technology Come True; It Embodies Business Value In Software

There is no doubt that Agile growth in the market is significant, and the growing daily number of inquiries I’ve been getting on Agile from end user organizations in 2012 gives me the impression that many are moving from tactical to strategic adoption. Why’s that? Many reasons, and you can read about them in our focused research on Agile transformation on the Forrester website. But I’d like to summarize the top five reasons from my recent research “Determine The Business And IT Impact Of Agile Development” :

  • Quality was the top — quite astonishing, but both the survey we ran across 205 Agile “professional adopters” and the interviews across some 21 organizations confirmed this. My read is that this is about functional quality.
  • Change was second to quality. We live in an era where innovation strives and organizations are continuously developing new apps and projects. But your business does not necessarily know what it needs or wants upfront. The business really appreciates the due-course changes that Agile development allows, as they enable the business to experiment and try out various options so it can become more confident about what is really right for the organization. Cutting edge cutting edge systems-of-engagement (Mobile, Web-facing, Social-media, etc) require lots of Change in due course.
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You Think Changing To Increase Business Agility Is Hard? If IOR Did It, Believe Me: You Can Do It Too

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.

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"Using Working SW As The Measure Of Progress Is Narcissistic...." How Do You Measure The Value Of Agile Instead?

Hi all,

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.).
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Update Your Application Development Sourcing Strategy To Drive Innovation And Differentiation

Optimizing Software Development Sourcing To Drive More Customer Value

The past few years haven’t been kind to software developers. Having the equivalent of a US master’s in computer science and having spent the first 20+ years of my professional life developing mission-critical software products and applications, I have had a hard time adjusting to the idea that developing software applications is a cost to avoid or a waste of time for many CIOs and application development leaders. It seems to me that we have been giving more emphasis to contracts, legal issues, SLAs, and governance concerns but forgetting about how IT can really make a difference – through software development. 

Nevertheless, outsourcing kept increasing, and packaged apps exploded onto the scene, and software developers “outplaced” from enterprises. People started to believe they could get more value and good-quality software cheaper…but could they really?

With BT, digitalization, and customer centricity exploding, today is the perfect moment for application development leaders to review their application development sourcing strategy and align it to their BT strategy.

Why? Many reasons, including:

  1. Software is the most important enabling technology for business innovation.
  2. Clients use software every day. It’s become part of their life, and they enjoy the experience. Better software makes a better experience.
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