Israel Gat's Agile 2008 Presentation

1. Dancing With The Agile Goddess Israel Gat Agile 2008 August 8, 2008 Toronto, Canada 06/07/09

6. © Copyright 06/07/09 BMC Software, Inc. Trendline Assessment – Schedule Story Cards 100 1,000 Months 1 100 10 Build Phase Time Faster 12-13 months BMC is much faster than the overall industry trend: >95 th percentile. 4-5 months BPM 2.4 BPM 2.3 BMC QSM SLIM database 1 Sigma line style

7. © Copyright 06/07/09 BMC Software, Inc. Trendline Assessment – Schedule – Agile Sample Story Cards 10 1,000 Months 1 100 10 Build Phase Time Faster BPM 2.4 BPM 2.3 BMC much faster to market than the Agile sample for >100 story cards releases BMC QSMA SLIM database 1 Sigma line style Agile Companies 100

8. © Copyright 06/07/09 BMC Software, Inc. Trendline Assessment – Quality Stories 100 1,000 Bugs/Defects Bugs/Defects (Hardening Iterations) 10 10,000 1,000 100 Defects at normal levels in spite of fast speed BPM 2.4 BPM 2.3 BMC QSM SLIM database 1 Sigma line style

9. Productivity Index Assessment © Copyright 06/07/09 BMC Software, Inc. BMC QSM SLIM database 1 Sigma line style Agile Companies Higher productivity in spite of running with more Scrum teams than other Agile projects Story Cards 10 1,000 100 Productivity Index (PI) 0 35 15 25 20 5 10 30 BPM 2.4 BPM 2.3 Productivity Index

10. © Copyright 06/07/09 BMC Software, Inc. Productivity Index (PI) Industry values by application type 0 2 4 6 8 10 12 14 16 18 20 22 24 Productivity Index (PI) w/ ±1 Standard Deviation 28 26 Business Information Command and Control Process Control Scientific System Telecommunications Engineering Avionics Microcode Real Time Real Time

13. What A Company Needs for Agile Success © Copyright 06/07/09 BMC Software, Inc.

16. Between Christensen and Corporate Inertia © Copyright 06/07/09 BMC Software, Inc. Agile: a disruptive methodology on two dimensions Interplay of 2 Dimensions

18. End-to-End Enterprise Agility © Copyright 06/07/09 BMC Software, Inc. Agile Component Team Agile Teams of Teams Agile Enterprise Scale (perpetual) Measurement A B C D Requirements runway Intentional Architecture Enterprise Tooling Iterate Iterate (2 wks) Design Test Build Release (3-4 mo) Harden and Ship Req Plan Iterate Iterate Iterate Agile Release Train Organizational Change Organizational Change Agile Release Train Requirements runway

19. 3 Levels of Participation © Copyright 06/07/09 BMC Software, Inc. Direct Field Participation Release Planning I1 I3 I2 I4 I6 I5 I7 I8 Market Planning Market/Solution Release Plan Product Roadmap Product Release Plan Product Release Plan Iteration Demos / Requirements Backlog 3-4 months I1 I3 I2 I4 I6 I5 I7 I8 2 weeks Release Mgt

20. Agile GTM Process – Roy Ritthaler’s Design © Copyright 06/07/09 BMC Software, Inc. “ xi” release Marketing Release Train “ bsm” release R1 60-90 days 60-90 days 60-90 days 60-90 days R2 R3 R4 R5 R&D Release Train Engineering & Product Management Driven Frequency Market Driven Frequency “ beta” release “ maintenance” release Collaborative Asynchronous GTM Processes

21. Transition to Agile Organization © Copyright 06/07/09 BMC Software, Inc. Waterfall Optimized Organization Agile Organization Agile R&D Teams Operational Team Executive Team R&D Teams Executive Management

25. Release-centric Agile Planning © Copyright 06/07/09 BMC Software, Inc. Collect Customer Requirements Establish a Prioritized Backlog R1 R3 R4 R5 R6 R7 R8 R9 R10 R2 R1 R3 R4 R5 R6 R7 R8 R9 R10 R2 Define a Release Based on Priorities time Release R5 R6 R9 R2 R1 R3 R4 R7 R8 R10 Backlog

28. © Copyright 06/07/09 BMC Software, Inc. Agile-Based-Market-Of-One in the Context of Customer-Vendor Interactions & Relations Source: Crawford & Mathews; The Myth of Excellence; New York, NY; Crown Business, 2001 Level Access/Ease Experience Price Product Service III: Consumer seeks the Company (Dominate) Give me a solution; help me out in a bind Establish intimacy with me by doing something no one else can Be my agent; let me trust you to make my purchases Inspire me with an assortment of great products I didn’t know about Customize the product or service to fit my needs II: Consumer prefers the Company (Differentiate) Make the interaction convenient for me Care about my needs and me Be fair and consistent in your pricing. I’m not necessarily after the lowest price Be dependable in your selection and in stock position, so I can rely on you when I’m in a bind Educate me when I encounter a product or a situation I don’t understand I: Consumer accepts the Company (Operate at Par) Make it easy for me to find what I need, get in and out in a hurry Respect me; treat me like a human being Keep the prices honest; don’t jack them up or offer big savings when there are none Be credible in your product and service offerings Accommodate me; bend over backward sometimes to show me you care Consumer Underworld Block my way, hassle me, keep me waiting, make it hard for me to get in and out Dehumanize me; disrespect me; ignore my needs Be inconsistent, unclear, or misleading in your pricing Offer me poor quality merchandise and services that I can’t use Give me an experience I’d just as soon forget; me a reason to tell my friends and relatives to stay away

29. What does Customer Intimacy Really Mean?

31. Agile-Based-Market-Of-One Blows Traditional Value Chains to Bits © Copyright 06/07/09 BMC Software, Inc.