Value Stream Management and the Next Decade of DevOps

Copyright © 2019 HCL Technologies Limited | www.hcltech.com
Value Stream Management
and the Next Decade of DevOps
October 9, 2019

Copyright © 2019 HCL Technologies Limited | www.hcltechsw.com
Define a Batch of
Features
Send to Development Build
& Test Release to Customer…
with surprises
Traditional
Continuous Delivery
Single Feature Send to Development Optimize before
Deploy
Quick Customer
Feedback
DevOps Helped Solve a Universal Challenge

Automation Has Enabled Early DevOps Success
CI/CD Pipelines
Establish an automated, controlled path to production
Starting point for many DevOps transformations. Clear ROI
Reduced failures due to
inconsistent environments
from dev and production
Better
Accelerated delivery speed
by streamlining complex,
manual, release processes
Faster
Improved employee morale
and culture with repeatable,
predictable and shorter
release cycles
Happier
Dev Production
Alleviated waste when
delivering more frequent
releases to meet market
demands
Cheaper
Daily Build
Monthly
Delivery

 Over 2,500 applications
 Over 4,000 components
 Over 500 new apps created per month
 Over 15,000 versions per month
 Average of over 1,000 deployments per day
 Near perfect deployment success rates
Technology Leaders Have Addressed the Automation Opportunity
Results from a 150 Year Old Insurance Company in 1 Year
Deploy Anything From Anywhere To Anywhere
PRIVATE
PRIVATE
PRIVATE
PRIVATE
IBM Cloud
Private Kubernetes
ON-PREM
PUBLIC
ON-PREM
HYBRID
CLOUD

Investment in DevOps is Separating the Winners from the Losers
https://devops.com/bet-devops-won/
https://devops.com/revisiting-my-bet-on-devops/
“The publicly traded companies that had high-
performing IT teams had 50 percent higher market
capitalization growth over three years than those
with low-performing organizations.”
- Nicole Forsgren’s 2014 presentation,
“DevOps and the Bottom Line”
“The highest DevOps performers are
twice as likely to meet or exceed their
organizational performance goals”
(e.g. profitability, market share, and
customer satisfaction)
- State of DevOps Report 2019

https://www.scaledagileframework.com/blog/insights-on-the-state-of-business-agility-in-the-safe-world/
As an industry, we are still in the early days
Poll Question
How would you classify
your team’s DevOps
maturity?
A. Crawl
B. Walk
C. Run
D. Fly

Why is this Change so Difficult?
Ways of
Working
Architecture
Infrastructure
System
of Record
Digital Transformation
 Many transformations at once
 Ultimately about creating new
business value with agility
 Creates conflicts of
automation, process and
culture
CloudWaterfall
DevOps
Agile
Monolithic
Distributed
Service
Oriented
Micro
Services
Physical
Servers VMs

Challenges We Hear from Our Customers
1. Connecting IT Value to Business Value
2. Adapting organizational culture and alignment
3. Scaling best practices across the enterprise
4. Optimizing flow across the end-to-end value stream
5. Managing across many tools and decades of technology platforms
6. Shifting security, quality and governance practices left
7. Increasing the frequency of production releases

Nextgen DevOps Leaders are Now Focused on...
Run IT
Like a
Business
• Align IT investments with approved
business goals and outcomes
• Measure ROI of DevOps transformation
initiatives across the portfolio
• Extract best practices from leading
teams and scale them throughout the
organization
• Make software delivery a core
competency of the firm
• Culture eats strategy for breakfast
Own your tech
or it owns you
• Provide a single pipeline of pipelines
uber view across many tools and
interdependent services and
components
• Shift security, quality and governance
practices left with smart gates
• Enable self-service and more frequent
releases
• Manage decades of technology
platforms from mainframe to VMs to
containers
Optimize the
Value Stream
• Visualize the flow of work from idea to
production to exploit bottlenecks
• Gain visibility to business value flow
across many tools, pipelines,
environments and teams
• Measure real-time Value Stream
Metrics to manage for business value,
speed and stability
• Know what’s where by reconciling
Agile, testing and CI/CD data across
multiple tools

We Are Seeing a Fundamental Shift in Software Delivery Trend Waves
1990s 2020s2010s2000s
Agile
• Manifesto Principles
• Iterative
• Water-Scrum-Fall
• Dev Driven
DevOps
• Continuous Everything
• Automation
• CALMS
• Feedback Driven
NextGen
• Value Stream Management
• AI & Data Driven
• Systems Thinking
• Cloud & Hybrid
Traditional
• Waterfall
• Command and Control
• Triple Constraint
• Project Driven
2030s

Value Stream Management is an End-to-End Approach to Software Delivery
Idea Market
Plan &
Design
Build &
Test
Manage &
Optimize
Product
Team
Business
Owners
Security &
Governance
Target
Customer
Deploy &
Release
Agile Continuous Monitoring
Continuous Integration
Continuous Testing
Continuous Delivery / DevOps
Value Stream Management
Continuous Planning Continuous Operations
Most efforts localize improvements and address only a subset of the value stream
Goal: Streamline a continuous and controlled flow of value to market
Feedback
Loops
Feedback
Loops
Feedback
Loops

Any Agile Dev Team Does Not Equal an Agile Enterprise
12
Credit:
Jonathan Smart
https://medium.com/sooner-safer-happier/agility-build-the-right-thing-69d316aeb56b

Agile development teams moving fast
Streamline flow by Eliminating Bottlenecks
CODE SCM BUILD DEV TEST PROD
Slow into prod
DevOps addresses an obvious bottleneck. By
automating deployments, reducing batch
sizes teams can achieve continuous flow.
But what’s next?

Visibility is Essential to Understanding Cost of Delay
Actual process time is often less than 10% of lead time
InformationflowProcessFlowWaitTimeProcessTime
Request
Entered
Request
Delivered
6 days 30 Days4 Days3 Days2 Days7 Days
45 mins 15 mins30 min45 min30 min90 min
Design Dev/Test ReleaseBacklog Prod
Product
Team
Customer
Product
Owner

Most dev teams use Agile tools and CI/CD pipelines…
Kanban boards cover only part of the Value Stream
and relies on manual movement of cards to depict state--
often out of sync with reality CI/CD tools provide views of automation, but not of waste
— inventory, rework, waiting, etc – or business value
Neither offers deep insight end-to-end into questions such as:
• Should I release this code?
• Where is my epic?
• Where are we slow?
• What do my high performing teams do differently?
• Did the feature deliver the planned value?

Dashboards could help….
Work
Items
Builds
Deploys
Pull
Requests
Security
Scans
Static
Analysis
QualityTests
Change
Requests
Unit
Tests
Releases
People
…but the magic is in RELATIONSHIPS

Value Stream Management Enables Action and Improved Results
Using a data-driven approach, teams can make their software delivery practices
“smarter”
17
Spot and eliminate
Process
Bottlenecks and
Delays
Identify quality and
security risks early
with visibility into
results across many
tools
Stop bad builds
based on metrics
from unit, integration
& performance tests
Monitor Changes and
Evaluate Results to
Create Feedback Loops
Idea
Align planned
work to business
priorities
Orchestrate
deployments
across many
services and tools
Inform and automate
“smart gate" risk
assessment and
leverage change
registration
Generate one-click
audit reports with
full traceability
Identify problematic
code that needs
refactored based on
operational feedback

Thinking around Metrics is Evolving
Ideate / Fund Plan & Design Agile Dev & Test Deploy & Release
DeliverySpeed
Approved
for Dev
Dev
Started
Dev
“Done”
Customer
Availability
Phase Cycle Time Phase Cycle Time Phase Cycle Time Phase Cycle Time
"Work is not done when
Development completes
the implementation of a
feature— rather, it is only
done when our
application is running
successfully in
production, delivering
value to the customer."
—DevOps Handbook
Traditional Agile Metrics Scope
Velocity
WIP
Burndowns
VSM Metrics Scope
Lead Time
Cycle Time
Deploys
Throughput
Change Rates

Credit: Accelerate State of DevOps 2019
19
Key Finding
Delivering software quickly,
reliably, and safely is at the heart
of technology transformation and
organizational performance.
…the highest performers are
twice as likely to meet or exceed
their organizational performance
goals… including profitability,
productivity, and customer
satisfaction…
Industry Research Provides KPIs and Clear Evidence of ROI
20% 23% 44% 12%2019 Distribution
7% 48% 37% 15%2018 Distribution
Poll Question
Do you know your team’s accelerate
metrics?
A. Yes, and they are KPIs
B. We have a hunch, but no hard data
C. No, but we want them!
D. No, they are not important to us

Metrics Can Tell Your Speed and Stability Story
Team A
Team B

Code Repos Build
1 2
Incident Management8
43
Deploy
5
Test
APM 7
6
Issue trackers / ALM tools Artifact Repo
Note: Integrations and Visualizations are indicative, not all are supported yet
IBM App Management
UrbanCode Velocity Builds Value Streams by Understanding Relationships

Relationships are visible with a single click

Historical value stream data is also rolled up at the portfolio level
• Delivery Flow
− Lead and Cycle Times
− Deployment Frequency
− Failure Rates
− Throughput
− Cost of Delay
• Value
− Work Item Distribution
− Customer Satisfaction
− Business Objectives
• Risk
• Quality and Security Test Results
• Technical Debt
• Custom Reports
− Audit reports with traceability across work
item management, CI/CD, SCM and more
Work Type Distribution

UrbanCode Velocity
Value Streams
Insights
Pipeline Orchestration
Release Management
DevOps
Data Lake
Secure API-Based
Plugins
UrbanCode Velocity Enables Data Driven DevOps
Orchestration
& Automation

WATCH THE FILM
$8.4 BILLION ENTERPRISE | 132,000 IDEAPRENEURS | 44 COUNTRIES
hcltechsw.com

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