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Business Value Articulation
            In
     Software Projects

             By
Malay Srinivas & Vinay Jagtap
Abstract




             Business
              Value
           Framework –
             Aditi way
Voice of Customers
         Innovations /          Accelerate          How will I drive
         Ideas                  time to             effectiveness
                                market              & Efficiency


      No production
      bugs                                      What are my true
                                                responsibilities?

     Ownership
                                                CSAT / ESAT

    Value for
    Money - ROI                              Profit
                         Decrease in         margins &
                         operational         Account
                         cost                Growth
Traditional Way
                          -    Product will not
                               have P0 bugs
                          -    Product
                               Maintainability
                          -    Rich look


                                                                           Define the SLA / Goals

                                                                             Performance
                              Quality                                        Measurement




-   Competitive Billing
    rates                     CSAT &              -    On-time delivery
-   Buffer Resources /

-
    Discounts
    Onsite/Offshore
                               ESAT               -    Query Resolution
                                                       in with-in 3 days
    utilization




    Cost                                              Delivery
Scorecard Approach




        
                     




            




  
            
                     




  
Case Study
                                          •     Test Services Enabled project
                                          •     Scope of the project is to provide
                                                the test service in terms of
                                                Defining the test cases, Test
                                                execution, Automation, Test Pass
                                                & Regression.




                                                           POC
                                                                                     •   Customer wants to see more
 •   Position Aditi as “Independent                                                      ROI
     Testing Services partner”                                                       •   Too many change requests
 •   Radical cost models of                   Business                Problem        •   Competition from other vendors
     execution                                 Focus                 Statement       •   Requirement from customer to
 •   Time to market acceleration                                                         show improvement every
                                                                                         quarter

                                                         Objective


                                      •        Enable & Improve the customer
                                               business & satisfaction
                                      •        Stay amid competition
                                      •        Outcome Guarantees
                                      •        Consistent and transparent focus
                                               on ROI


 6
Business Value Framework
– Aditi Way
 Identify Key                   Establish
 Stake Holders                  Baseline
                                                                                                           Cause & Effect
       Risks & Dependencies
                                                                                       Pareto
                   Plan Value

 Measurement              Knowledge
 System                   Sharing Culture

                                                                                                     Poka Yoke




                                   Project                     Product                          Process
      Deployment




                                   •   Requirements Coverage   •   Defects Reopened             •   Test Productivity
                                   •   Test Coverage           •   New Defects                  •   Test Case progression
                                   •   Test Effectiveness      •   Open Defects                 •   Test Case effectiveness
                                                               •   Code Quality                 •   Cost of Quality
                                                               •   Build Quality
                                                               •   Reliability Index
Business Value Delivered
– Case Study
                                                                                                                                          5%
                                                                                                                                     improvement in
                                                                                                                                        Schedule
 Controlled –Defects+ Increased Automation + Accelerated Regression   = Improved Quality + Less Rework + Effort & Financial Gain



                                                                                                                                       Overall 18%
                                                                                                                                       reduction in
                                                                                                                                        cycle time




                                                                 Continuous Improvement

                                                Average 5 %                                    ~ 23 % improvement
       10 % more                                increase in                                    in defect verification              5 % decrease in
      ad-hoc bugs                            Automation Health                                    of Showstopper                   not repro bugs
                                                   Index                                               bugs
Success Enablers

                  People      •   Training & skill development
                              •   Growth path & career ladder
                              •   Alpha Teams
                              •   Rewards & Recognition
                              •   Knowledge management


                  Process     •   Reviews & Continues Process Improvements
                              •   Stringent quality gates
                              •   Defined performance objectives
                              •   SLA driven governance



                 Tools &      •   Tool research & integration
                 Techniques   •   Project modeling and automation
                              •   Scientific estimation models
                              •   Software optimization techniques
                              •   Increased reusability – scenario based
                                  repository

    Continuous Improvement
Summary

                   • Metrics & measurement
  In Common
     Common        • Focus on SLA / Goal Adherence
                   • Focus on completing the project successfully




                   • Focus on creating value
  Differentiator   • Work as extended arm of customer




                   • Discipline & culture of obtaining the required data
  Challenges       • Continuous improvement & value demonstration
11

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Business Value Articulation In Software Projects

  • 1. Business Value Articulation In Software Projects By Malay Srinivas & Vinay Jagtap
  • 2. Abstract Business Value Framework – Aditi way
  • 3. Voice of Customers Innovations / Accelerate How will I drive Ideas time to effectiveness market & Efficiency No production bugs What are my true responsibilities? Ownership CSAT / ESAT Value for Money - ROI Profit Decrease in margins & operational Account cost Growth
  • 4. Traditional Way - Product will not have P0 bugs - Product Maintainability - Rich look Define the SLA / Goals Performance Quality Measurement - Competitive Billing rates CSAT & - On-time delivery - Buffer Resources / - Discounts Onsite/Offshore ESAT - Query Resolution in with-in 3 days utilization Cost Delivery
  • 5. Scorecard Approach       
  • 6. Case Study • Test Services Enabled project • Scope of the project is to provide the test service in terms of Defining the test cases, Test execution, Automation, Test Pass & Regression. POC • Customer wants to see more • Position Aditi as “Independent ROI Testing Services partner” • Too many change requests • Radical cost models of Business Problem • Competition from other vendors execution Focus Statement • Requirement from customer to • Time to market acceleration show improvement every quarter Objective • Enable & Improve the customer business & satisfaction • Stay amid competition • Outcome Guarantees • Consistent and transparent focus on ROI 6
  • 7. Business Value Framework – Aditi Way Identify Key Establish Stake Holders Baseline Cause & Effect Risks & Dependencies Pareto Plan Value Measurement Knowledge System Sharing Culture Poka Yoke Project Product Process Deployment • Requirements Coverage • Defects Reopened • Test Productivity • Test Coverage • New Defects • Test Case progression • Test Effectiveness • Open Defects • Test Case effectiveness • Code Quality • Cost of Quality • Build Quality • Reliability Index
  • 8. Business Value Delivered – Case Study 5% improvement in Schedule Controlled –Defects+ Increased Automation + Accelerated Regression = Improved Quality + Less Rework + Effort & Financial Gain Overall 18% reduction in cycle time Continuous Improvement Average 5 % ~ 23 % improvement 10 % more increase in in defect verification 5 % decrease in ad-hoc bugs Automation Health of Showstopper not repro bugs Index bugs
  • 9. Success Enablers People • Training & skill development • Growth path & career ladder • Alpha Teams • Rewards & Recognition • Knowledge management Process • Reviews & Continues Process Improvements • Stringent quality gates • Defined performance objectives • SLA driven governance Tools & • Tool research & integration Techniques • Project modeling and automation • Scientific estimation models • Software optimization techniques • Increased reusability – scenario based repository Continuous Improvement
  • 10. Summary • Metrics & measurement In Common Common • Focus on SLA / Goal Adherence • Focus on completing the project successfully • Focus on creating value Differentiator • Work as extended arm of customer • Discipline & culture of obtaining the required data Challenges • Continuous improvement & value demonstration
  • 11. 11