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-Software 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