Accelerated Solution Delivery with IBM and Nationwide

Dibbe Edwards-Vice President IBM Watson IoT Chuck Ward-Associate Vice President Nationwide Insurance

August 14th 2017

18/15/2017 In today’s race to succeed, Leaders Create

A compelling New innovative Fast and flexible customer experience business models operational processes

81% of companies place 80% of CxOs are 100+ Corporate accelerators the personalized customer experimenting with have launched globally in experience in their top three different business models the last 3 years priorities, with 39 percent or thinking of doing so2 reporting it as their top priority1

Sources: 1.Accenture, “Digital Business Era: Stretch Your Boundaries”, 2015 2.Redefining Boundaries, Insights from the Global C-suite Study, IBM Institute for Business Value, 2015 3.Deloitte, “Corporate accelerators: Spurring digital innovation with a page from the Silicon Valley playbook”, 2016

2 8/15/2017 DevOps is essential to prevent being disrupted Agility Productivity Innovation Dramatically reduce Eliminate waste, Shift investment to time from idea to remove bottlenecks, innovation by replacing production capability. improve output of complexity and manual Be more responsive development and test tasks with industrial to client needs. teams. strength automation.

Examples of benefits that clients have experienced

Cut implementation time by 95% Improve code quality by 50% 97% reduction of cost of a release

Achieve a 75 percent reduction in time Reduce system integration testing “We used to be in the office all night, required for new application releases time from 3 weeks to 4 hours now we have guys deploying from their phones.”

3 8/15/2017 What are the Benefits of Becoming a Digital Enterprise?

KPI performance vs. peers: Share of 3-yr customer +6pts % of new product dev +6pts customer wallet +10pts retention initiatives released

Effectiveness: Customer engagement Operating model Developing new Penetrating new Operating Faster time revenue streams markets efficiently to market 3.7X 2.9X 3.0X 2.4X Improving customer Managing interactions risk 2.5X 2.6X

4 8/15/2017 Accelerated Delivery at Nationwide

Chuck Ward AVP- Development Services

58/15/2017 Nationwide – Who Are We?

8/15/2017 6 Nationwide – Information Technology Cleveland OH 20 9000+ INDIVIDUAL IT Columbu BUSINESS UNITS IT Professionals 5 s 60% PRIMARY LOCATIONS OH teams operating at a mature or partially 211 Nationwide Standing mature state Teams Headquarters located in Columbus, OH

First Phase: Small Next Phase: $ Kernel of Teams Broader Delivery focused on Application to 1.3 Systems of Systems of Execute on 800+ BILLION ENGAGEMENT RECORD BUILD Projects Annually Annual IT Spend

Balance of $400M in Innovation & annual Build Discipline Spend 2016 Watts Humphrey SPA Award (Only 11 companies awarded since 1994)

8/15/2017 7 Accelerated Solution Delivery – The DevOps Evolution OUR JOURNEY 2020 2015 2009 • Delivery Consistency • Manage Complexity • Efficiency 2000 • Manage Risk • ITDM 2020 • One IT • ORM 2.0 • ESDm • Lean IT • ORM 1.0 • Accelerated Solution • Agile Delivery 8/15/2017 • DevOps 8 Accelerated Solution Delivery – The DevOps Evolution

8/15/2017 9 Accelerated Solution Delivery – The DevOps Evolution Challenges meeting market & business pressures with quality software

Line Software Test Operations of Business Development

GAP GAP GAP

Top 5 bottlenecks 65% of respondents reported not knowing 1. Silos ▪ Total time to feedback 2. No visibility across lifecycle ▪ Wait times 3. Reality of multi-speed IT ▪ Size of the process backlogs 4. Lack of automation 5. Multi-sourcing and dispersed global *Internal surveys, and commissioned studies 8/15/2017teams 10 Accelerated Solution Delivery – The DevOps Evolution We needed to shift our Mindset at Nationwide

IT delivery model Plan Build Run

Shift from vertical practices to horizontal improvement

Leveraging DevOps as a set of practices and mechanisms to facilitate continuous delivery across what was independent verticals Accelerated Solution Delivery – The DevOps Evolution The DevOps Framework illustrated our focus in Agile DDI while exposingThe DevOps a gap Framework in Steering, illustrated Deploy, our and focus Operational in Agile DDI focus while areas exposing a gap in Steering, Deploy, and Operational focus areas

Steer Develop/Test Deploy Operate More More More Leaner Optimizing and smarter predictable transparent continuous

Leaner Product-based Agile Automated Collaborative

Inefficient Process-based Process-heavy Manual Siloed Shift from vertical practices to horizontal improvement

Our opportunity is to optimize across Plan\Build\Run. The value of DevOps can not be fully realized until we make this shift.

8/15/2017 12 Accelerated Solution Delivery – The DevOps Evolution Our Focus on Agile adoption has optimized in the middle: now needs to eliminate wait states at the ends to drive continuous flow Water-SCRUM-Fall

Steer Develop & Test Deploy & Operate

Agile DDT

Teams waiting for work Delivery slowed down due to “discrete” by manual and high planning processes ceremony processes High Acceleration

during Design, SPEED Develop and Acceptance Testing

0 TIME

8/15/2017 13 AGILE OPTIMIZES THE MIDDLE OF THE DELIVERY VALUE STREAM WORKWater VARIANCE-SCRUM-Fall Deploy & Operate Steer Develop & Test ANNUAL PLANNING

REDUNDANT SOURCESAgile DDT AND SYSTEMS

Wait states due to contention for Wait states due to starvation of DEPENDENCIES WAITdownstream STATES environments and prioritized work flow into backlogs manual processes LACK OF INTEGRATION Teams waiting for work Delivery slowed down due to “discrete” by manual and high planning processesMANUAL ACTIVITIESceremony processes High Acceleration

during Design, SPEED LACK OFDevelop VISIBILITY and Acceptance Testing 60% COST / TIME BEFORE BACKLOG 8/15/2017 0 TIME 14 Accelerated Solution Delivery – The DevOps Evolution

Nationwide Needed to Align Terminology to define Accelerated Solution Delivery

LEAN • Visual workflow management ACCELERATED • Root-cause problem solving PURPOSE SOLUTION DELIVERY Capability to • Eliminating waste ID & solve • Leaders engagement problems • Deliver effective and efficient IT PEOPLE PROCESS solutions through 1. A common methodology and AGILE operating model • Scrum • XP 2. A focus on Lean IT • Faster build cycles and DevOps • Embrace change 3. A world-class workforce.

DEVOPS Systems of Drives Need • Automation Record • Continuous delivery Systems of • Continuous feedback Engagemen • Engineering components of Lean IT Optimize t ARCHITECTURE DRIVEN IT • Standard platform Drives Investment Innovate • Simple, API enabled • Standard Architecture

8/15/2017 15 AcceleratedAccelerated Solution Solution Delivery Delivery – –TheThe DevOps DevOps Evolution Evolution FOUNDATIONAL MODEL DEVOPS

Business Enabling Responsiveness

Reduced Lead Time for Changes

Monitor Everything High Trust

Continuous Delivery Innovative

Automated Infrastructure Performance Oriented

Continuous Integration Empowered Associates

Automated Testing Reduce Variation

Version Control Everything High Cooperation PRACTICES CULTURE Continuous Flow & Visibility

Lean & Agile Principles Product Centric

System Flow Amplify Feedback Loops Continuous Experimentation

AGILE & LEAN 16 Accelerated Solution Delivery – Product vs Project

Indexing and Level 1 Level 2 Iterative Solution Maturity Scoping BUSINESS BUSINES S Feature PARTNER R R Release CAPABILI A 2.0 Leadership Team TY 1.0 R R BUSINESS 1.1 1.1 BUILD DEMAND BUSINES PARTNER SW LIST S Feature Asset( includes: CAPABILI BUSINESS B s) TY DDI PARTNER Prioritization BUSINES BUSINESS - Programs - Large Projects S Feature BUNDLED PARTNER - Small Projects CAPABILI C DEMAND BY - Enhancements TY FEATURE BUSINESS - Defects AND ASSET PARTNER - Work Requests from I&O and other IT areas • As a process manager, the Business Capabilities mapped portfolio manages the to Features on Software process of demand Assets DDI • The Release Leadership management and work DEVELOPMENT LINE 1 prioritization. Team (Business Partner, BCL, App Suite Owner, Program DEVELOPMENT LINE 2 Manager, Release Manager, • ISS is done on the bundled Portfolio Leader, and App Dev demand at a release level Leader) executes the process for standing teams to work DEVELOPMENT LINE 3 of prioritizing the work and on predictable, technically Utilize your lean assigning it to specific releases, aligned, and high business by capability and features value SW releases concepts and visual aligned to assets management to begin the transformation Product and Release Optimization – Inserting SW Release Strategy into Release Management

8/15/2017 17 Accelerated Solution Delivery – Continuous Delivery Pipeline

BUSINESS

MONITORING & FEEDBACK GITHUB Jenkins

RTC UCR UCD (Rational (UrbanCode (UrbanCode Team Release) Deploy) Concert)

Release Certification Deploy Automated Planning Results RFC

Standardize “Work” input Plan & analysis view, Direct, automated control & (e.g. Business Value, Deployment Plans, Pipeline & traceability over deployment Defects, Unplanned Work) Certifications activity

8/15/2017 18 Accelerated Solution Delivery – Continuous Delivery Realization 1. Work Intake (Initiatives/Changes, Features/Stories, Unplanned Work) • Release Optimization (MVPs, Small Batch sizes, optimized for release) • Integrations with Clarity, RTC, HPQC (via TaskTop) 2. Visibility into what is planned and status • Flow of work into UCR Plan & Analysis View 3. Visibility/Control into what is built and being deployed • GIT/RTC/UCD Integration, visibility in UCR Pipeline View 4. Visibility/Control of Readiness for Release • Certifications (manual->automated), visibility in UCR Pipeline View 5. Automated Deployment • UCR Deployment Plan execution with UCD Integration • Automated RFC (UCD-TaskTop-ServiceNow Integration ) 6. Feedback & Metrics • UCD Integration with New Relic • Customer usage Analytics • Lead Time and Deployment Frequency Measure

8/15/2017 19 Accelerated Solution Delivery – The DevOps Evolution

8/15/2017 20 Accelerated Solution Delivery – The DevOps Evolution

What could possibly go wrong?

8/15/2017 21 Accelerated Solution Delivery – The DevOps Evolution

8/15/2017 22 Accelerated Solution Delivery – The DevOps Evolution FOUNDATIONAL MODEL DEVOPS

Business Enabling Responsiveness

Reduced Lead Time for Changes MonitorThe Everything High Trust PracticesContinuous Delivery If WeInnovative Don’t AutomatedWill Infrastructure Not PerformancePay Oriented ContinuousReach Integration AttentionEmpowered Associates to TheirAutomated FullTesting ReduceCulture Variation VersionPotential Control Everything High Cooperation PRACTICES CULTURE Continuous Flow & Visibility

Lean & Agile Principles Product Centric

System Flow Amplify Feedback Loops Continuous Experimentation

AGILE & LEAN Measuring our Dev Ops Success

Dibbe Edwards-Vice President IBM Watson IoT August 14th, 2017

24 Plan IBM CE Product and Process Improvements – at scale !! DevOps Operate ContinuousDevelop Feedback / Deploy Test

Lifecycle Measurements 2010 2012-2014 2015-1H2017 Total Improvement

Project Initiation 10 days 2 days 8 hours 9 days Groomed Backlog 45 days On-going On-going 44 days Overall Time To Development 55 days 3 days 1 day 54 days

Composite Build Frequency (per week) 36 hours 12 hours 4 hours 900 %

18 hours < 1hour < 1hour 17 hours BVT Availability 1 / day 1 / day 4 / day 4x environments Pipeline Deployments (per week) 2 (manual) 50 140 70 x Sprint Test Time 2 days 14 hours 6 hours 42 hours Total Deployment Time 8 hours 4 hours 20 minutes 24 x Overall Time To Production 3 days 2 days 2 / daily 6 x Time Between Releases 12 Months 3 Months Monthly* 11 Months Innovation / Maintenance 64% / 36% 78% / 22% 83% / 17% +19% / -19%

25 8/15/2017 Our SAFeTaxonomy

Strateg Portfolio Strategy and Initiatives ic Theme

“What” will differentiate us – aligned with business strategy Team > Program > Value Stream > Portfolio Breakdown into lower levels granularity of levels lower into Breakdown “Why” will it do that Definition of solution/project that realizes the value delivery and Portfolio Epic Scope: Cross- ROI proposition Value Stream, Economic thinking!!! Multi-year

Analysis (Solutioning) Value Stream Epic Detailed definition of Solution Intent and Context Scope: Cross-Program, > 1 Formal requirements “live” here (if necessary): System, User, Program Increment Non-Functional Requirements

Offering Management Offering Use Cases: Scenarios, Roles, Wireframes Capability

Scope: Cross-Program, Program Increment

prioritization is a collaborativeeffort -

Refinement of “what” and “how” Top-Level “Plan Item” (any work item type) Demonstrable value at each iteration Scope: Cross-Team, Program Increment

Technology Delivery Story (Use Case)

“How” will we deliver Scope: Sprint – capabilities between Offering Management Engineering and Technology decisions live here Refinement re and Engineering Task (Technology) Scope: < Sprint

26 8/15/2017 Ongoing Planning Process Review Capabilities on roadmap and in backlog

Moving Capabilities through the Kanban

Funnel Analysis Ready (for Approved Implementing Approval)

• Capability • Solution • Initial capacity • Planned For is • Confirm (and created by (Offering) (estimated set on monitor) Solution team begins effort) Capability tracked (Offering) conversation assigned, • Committed to Program plan Manager/Archi with proposed plan next PI items to tect engineering on is “green” from ensure top-ranked capacity alignment with Capabilities, perspective commitment starts tracking Program-level Analyzing -> Ready -> Approved -> Implementing -> plan items

27 27 InterConnectBuild a Delivery2016 Pipeline Leveraging Tools-As-a-Service Developers launch Executes 10000s of Junits & security scans test from their workspace Rapid install and smoke Tests Functional and systems tests on Golden Topologies Test (continuous) Interactive Testing Production Develop Build System Unit Test Function Test B Test Usability Test Jazz.net V Production-Like Environment Production-Like T Environment IBM Bluemix DevOps Services Performance Test Integration Test Security Pen Testing

Continuous Integration and Test Virtualized Infrastructure Golden Topologies Deployments ▪ 14 different pipelines running concurrently for new dev and multiple service streams ▪ Automated quality gates with team based dashboard focused on single view of quality ▪ >227,000 jazz.net community members, >450K page views per month

28 © 2015 IBM Corporation Top 5 Takeaways

1. Focus on Agility and Automation Agile dev processes Automated Build and Deploy Processes Test early and often with confidence and reflect actual production Automated Infrastructure (Dev-test Environments)

2. SHIFT LEFT the value proposition Extend agile principles into the steer phase with iterative scoping Continuous planning Involve IT early in the assessment and funding process

3. Product Centric over Project Centric Defined “Product Manager” roles who guide updates to company IT assets Focus on the Software Execution versus Project Execution Streamline projects into asset views

4. Visibility and Metrics Visibility and management of Release plans Tooling simplification for visibility of the goals and progress.

5. Continuous Improvement Culture Focus on learning because you won’t get it right the first time!

8/15/2017 29 Thank you

308/15/2017 Notices and disclaimers

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31 8/15/2017 Notices and disclaimers continued

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