CMMI® FOR SERVICES: INSIGHTS AND BEYOND -Rajesh Naik QAI. presented at 1st International Collquium on CMMI High Maturity Best Practices 2010 held on May 21,2010 organized by QAI

1. CMMI® FOR SERVICES: INSIGHTS AND BEYOND
-Rajesh Naik
QAI.

2. CMMI® for Services (SVC)
-Insights & Beyond
HMBP Colloquium
21 May 2010

3. Agenda
 Overview of the CMMI®-SVC
 Discussion of New PAs (Over CMMI®-DEV)
 Applicability & Opportunities
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4. Typical Challenges in Service Industry
 Meeting SLAs & Continuous Process Improvement
 Delivering consistent service quality
 Managing service continuity
 Managing high rate of changes/ time to market
 Adequate understanding of Service components & role in delivery
 Remain Competitive and maintain low cost
 Increase Service Quality
 Attaining centralized Model across the Organization for all the services
provided
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5. What is CMMI-SVC
 An extension of the CMMI model
 CMMI®-SVC is a compendium of best practices which
enables service focused organizations to effectively :
 Design the service
 Deploy and deliver the service
 Manage the service
 Has Synergies with other models like CMMI®-DEV, ITIL, ISO
20000, CobiT and ITSCM.
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6. What is a Service as per CMMI®-SVC
 Services are useful intangible and non-storable results delivered
through the operation of a service system.
 The process used in delivering the service typically has a immediate
impact on the service
 Services are typically short cycle and repetitive in nature
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7. Where does CMMI®-SVC apply
KPO
Health Care IT Infrastructure
Telecom Management
Hospitality Retail
Training
Logistics BPO Consulting
Travel
Government Services People Outsourcing
Software (Part Lifecycle)
Banking
Utilities
Insurance
and more…
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8. CMMI Constellations
-8-

9. CMMI-SVC Maturity Level
Focus on process improvement
Optimizing
5
Processes measured and controlled
Quantitatively Managed
4
Processes characterized for organization and is often
proactive
Defined
3
Projects level foundation for an organization to become an
effective service provider
Managed
2
Processes unpredictable, poorly controlled and reactive
1 Initial
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10. CMMI®-SVC Process Areas
5 Organizational Innovation &
Deployment Causal Analysis & Resolution
5
4 Quantitative Project Management
Organizational Process Performance
4
Incident Resolution and Prevention Capacity and Availability
Management
3
Organizational Training
3
Service System Development Integrated Project Management Organizational Process Definition Decision Analysis & Resolution
Service System Transition Risk Management Organizational Process Focus
Strategic Service Management Service Continuity
Project Monitoring and Control
2
Configuration Management
2
Service Delivery Project Planning
Process & Product QA
Requirements Management
Measurement & Analysis
Supplier Agreement Management
Service Establishment
Project Management Process Management Support
& Delivery
10

11. Understanding Service Specific PAs
Capacity & Incident
Availability Resolution &
Management Prevention
16 Core
Process Areas Service
& 1 Shared PA Delivery
Service
Continuity (SAM)
PA Addition Service
System
Service
Transition
System
Development
Strategic
Service
Management
Source: SEI
11

12. Strategic Service Management (STSM)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on
16 Core
Process deciding what
services you should
Areas
Service
&1 Delivery
Service
Shared
Continui PA
ty (SAM)
be providing, making
them standard, and
PA Addition
Service
System
Service Transiti
System on
letting people know
Develop
ment
Strategi
c
Service
Manage
about them
ment
Source: SEI
12

13. Strategic Service Management (STSM)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage
ment
Preventi
on
deciding what services you should
be providing, making them
standard, and letting people
16 Core
Process
know about them
Areas
Service
&1 Delivery
Service
Shared
Continui PA
ty (SAM)
PA Addition
Service
System
What kind of taxi service?
Service Transiti
System on
•Pick up and drop? Or Time and distance hiring?
Develop
ment
Strategi
c
•Only within city limits?
Service
Manage
ment
Source: SEI
•Primarily for the airport?
•Luxury / semi-luxury / economy?
•Shared or single person hiring?
•Radio call? Hail from the street?
•Lots of luggage space? More leg room?
13

14. Service System Development (SSD)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on
16 Core
Process
making sure you have
Areas
Service
&1 Delivery
Service
Shared
Continui PA
everything you need to
ty (SAM)
deliver the service,
PA Addition
Service
System
Service Transiti
System on
including people, processes,
Develop
ment
Strategi
c
Service
consumables, and
Manage
ment
Source: SEI
equipment
14

15. Service System Development (SSD)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on
16 Core making sure you have everything you need
to deliver the service, including people,
Process
Areas
processes, consumables, and equipment
Service
&1 Delivery
Service
Shared
Continui PA
ty (SAM)
PA Addition
Design, Develop and Test the Service
Service
System
Service Transiti
•Process and system
System on
Develop
ment
•Taxis
Strategi
c
Service
Manage
ment
•Meters
Source: SEI
•Drivers
•Call numbers
•Call centre
•Service Centers
•Waiting/ parking lots
•Driver contracts
•Pricing
•Billing process
•Fuel refill system
15

16. Service System Transition (SST)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on
16 Core
Process
Areas
Service
&1 Delivery
getting new systems in
Service
Shared
Continui PA
ty (SAM)
PA Addition
Service
System place, changing existing
systems, retiring obsolete
Service Transiti
System on
Develop
ment
Strategi
systems, all while making
c
Service
Manage
ment
Source: SEI
sure nothing goes terribly
wrong with service
16

17. Service System Transition (SST)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
getting new systems in place,
ment on
16 Core changing existing systems,
Process
Areas retiring obsolete systems, all
while making sure nothing
Service
&1 Delivery
Shared
goes terribly wrong with
Service
Continui PA
(SAM)
service
ty
PA Addition
Service
System
Service Transiti
System on
Develop
ment
Strategi
c
Service
Manage
Install and implement the service
ment
Source: SEI
•Put the designed service in action
•Carry out trials
•Smooth out initial glitches
•Make the service fully operational
17

18. Service Delivery (SD)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on
16 Core
Process
Areas
Service
&1 Delivery
Service
Shared
Continui PA
ty (SAM)
PA Addition
Service
System setting up agreements,
taking care of service
Service Transiti
System on
Develop
ment
Strategi
requests, and operating
c
Service
Manage
ment
Source: SEI
the service system
18

19. Service Delivery (SD)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on
16 Core setting up agreements, taking
care of service requests, and
Process
Areas
Service
&1
operating the service system
Delivery
Service
Shared
Continui PA
ty (SAM)
PA Addition
Service
System
Set up agreements with airport,
Service Transiti
System on
traffic police, service centers,
Develop
ment
Strategi
c
consumer forums, website
Service
Manage
ment
Source: SEI
Set up mechanisms to communicate
expected service level with users
Take bookings, cancellations, changes,
complaints,
Track the service at detailed and macro level
19

20. Capability & Availability Management (CAM)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on
16 Core
Process
Areas
Service
&1 Delivery
Service
Shared
Continui PA
ty (SAM)
PA Addition
Service making sure you have the
resources you need to deliver
System
Service Transiti
System on
Develop
services and that they are
ment
Strategi
c
Service
available when needed—at an
Manage
ment
Source: SEI
appropriate cost
20

21. Capability & Availability Management (CAM)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on
making sure you have the
16 Core
Process
resources you need to deliver
Areas
&1
Service services and that they are
Service
Shared
Delivery
available when needed—at an
appropriate cost
Continui PA
ty (SAM)
PA Addition
Service
System
Do demand- supply management of drivers, taxis, call
Service Transiti
System on
center resources – at multiple planning horizons:
Develop
ment
Strategi
c
Service
Manage
ment
Source: SEI
•Long term – six months/ one year
•Medium term – month/ week
•Short term – daily/ every hour
21

22. Incident Resolution & Prevention (IRP)
Capacity &
Availability Incident
Manageme Resolution
nt &
Prevention
16 Core
Process
Service
Areas Delivery
& 1 Shared
Service PA (SAM)
Continuity
PA Addition
Service handling what goes wrong—
and preventing it from going
System
Service Transition
System
Developme
wrong in the first place if you
nt
Strategic
Service
Manageme
can
nt
Source: SEI
22

23. Incident Resolution & Prevention (IRP)
Capacity &
Availability Incident
Manageme Resolution
nt &
Prevention
16 Core handling what goes wrong—and preventing
it from going wrong in the first place if
Process
Service
Areas Delivery
& 1 Shared
Service
Continuity
PA (SAM)
you can
PA Addition
Service
System
Service Transition
System
Developme
nt
Strategic
Service
Manageme
nt
Source: SEI Handle complaints from customers, drivers
Handle incidents of accidents, breakdowns, fuel
outage, driver illnesses, traffic violations, incidents at
the airports, non-payments, theft, etc
Do RCA and put preventive action in place
23

24. Service Continuity Management (SCON)
Capacity
& Incident
Availabilit Resolutio
y n&
Managem Preventio
ent n
16 Core
Process
Areas Service
&1 Delivery
Service Shared
being ready to recover from a
Continuity PA (SAM)
PA Addition
Service disaster and get back to delivering
your service
System
Service Transition
System
Developm
ent
Strategic
Service
Managem
ent
Source: SEI
24

25. Service Continuity Management (SCON)
Capacity
& Incident being ready to recover from a
disaster and get back to
Availabilit Resolutio
y n&
Managem Preventio
ent n
delivering your service
16 Core
Process
Areas Service
&1 Delivery
Service Shared
Continuity PA (SAM)
PA Addition
Service
System
Service Transition
System
Developm
ent
Strategic
Service
Managem
ent
This could be at multiple levels. Short-term, medium
Source: SEI
term and long term:
Driver does not report, car failure, accident while
transportation
Riots, floods, strikes, fuel availability
Govt. regulation change
25

26. Process Performance Models in SVC
• Typically to support
– CAM – Capability & Availability Management
– SD – Service Delivery
• CAM
– Using forecasted demand, concepts of queuing, baseline performance
of various sub-processes, identifying the capacity required, that will
meet the demand and multiple goals of cycle times, pending queues,
delayed requests, requests not serviced, quality, cost and idle time
• SD
– On arrival of a new demand, re-plan the allocation and sequencing of
resources to be able optimally meet multiple goals of cycle times,
pending queues, delayed requests, requests not serviced, quality, cost
and idle time
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27. Production Support Example Analyze Fix Review Test ……
Expert Expert Expert Expert
Suzy
Proficient Proficient Proficient Expert
Rohit
Novice Proficient Proficient Expert
Rita
Cant Do Novice Novice Proficient
Ankit
New ticket
Queue Queue
Queue Accept/ Queue
Reject Analyze Fix Review
Queue Queue Queue
Close Monitor Delivery Regression Test
Optimize: SLA Compliance, Bad Fixes, Idle, Cost, Pending Queues
Input Data: Expected arrival rate, current sub-process performance baselines (by skill level)
Models: Simulations, based on queuing theory
What-if: We change the rules of task assignment? More tickets are expected?
We get one more person in the team? Suzy takes leave for 2 weeks?
We reduce avg. cycle-time of “regression” sub-process by 10%? - 27 -

28. Taxi Services Example
Report
For Log Off
Duty Register Waiting Unavailable
Taxis Taxis
Queue Report
Completion
Booking
Request
Book Report Pickup &
Queue
Assign for
Request Drop
Pickup
Optimize:Idle driving, Timely pickup / drop, Customer complaints, customer follow-ups,
Waiting/ idle time; traffic violations; Repair costs; Refusals; Cancellations; Overtime
Input Data: Expected booking rate, current values on speed, waiting time, etc
Models: Simulations, based on queuing theory
What-if: We change the rules of assignment? Bookings are expected to be different?
A route is disabled? Add credit card swipe ?
Implement speed governors in the taxis? If we add another service station in the city?
Tie-up with some more fuel stations in the city?
Add another 500 taxis?
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29. Value of CMMI-SVC
 Rigorous yet flexible framework
 Improved SLA compliance & delivery efficiency
 Improved customer satisfaction
 Optimized capacity utilization
 Effective change management
 Roadmap to service maturity
 Gain a marketing/competitive edge
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30. CMMI®- SVC and SCAMPI-A
• Separate appraisals for CMMI®- SVC – currently cannot be combined
with DEV
• LAs need SVC specific authorization
• Scoping of the DEV appraisals may be impacted (after the arrival of SVC).
Projects that may need to be “out of scope” of DEV in future could
include:
– Production support
– Short cycle maintenance projects
– Pure testing project; only coding and unit testing projects
(It was anyway difficult to demonstrate RD, PI and VAL in many such
projects)
• Current Appraisal Results data on PARS shows 8 appraisals (7 on
Continuous!); Mostly ML2/3 PAs; Services include IT and non-IT (order
fulfilment, recruitment, packaging, account management, project
management, business development, etc.)
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31. CMMI-SVC vs ISO 20000 vs V3
Note: PA’s marked as green may still require effort for “transition” to SVC Framework
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32. Opportunities for IT Companies
SVC Type Projects
(Maintenance, Testing,
DEVDEV Type
Type IT
Production Support,
Projects
Projects Projects
Partial Life Cycle)
IT Solutions
Our Customers
IT Organization SVC Compliant
(in the service industries)
IT Solutions
More Services Under SVC
(Staff augmentation, BPO, training, facilities, Process (SVC based)
IT support, transport, security, etc.) Consulting
Process Groups can be a part of the software projects!
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33. Opportunities for IT Companies
1. Use CMMI® - SVC for non-DEV parts of the software
organization –Production support, maintenance, testing, only
coding
2. Implement in other services – IT Infrastructure management,
BPO/ KPO, internal services (training, facilities, etc.)
3. Provide process consulting for your IT customers in the
services business (banking, insurance, finance, transport,
logistics, retail, training, education, government, health care,
hospitality, etc.)
4. For your customers, provide integrated IT-based solutions
that are aligned with CMMI®-SVC
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34. Service Industry Requires Heavy Automation
SERVICE DELIVERY
AND MANAGEMENT
PROCESS
AUTOMATION
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35. Where does CMMI®-SVC apply
KPO
Health Care IT Infrastructure
Telecom Management
Hospitality Retail
Training
Logistics BPO Consulting
Travel
Government Services People Outsourcing
Software (Part Lifecycle)
Banking
Utilities and more…
Insurance
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36. Thank You!
Rajesh Naik
Consulting Partner
QAI India Limited (www.qaiglobal.com)
rajesh.naik@qaiglobal.com
OR
naik.rajeshnaik@gmail.com
+91 9845488767
Personal website
www.rajeshnaik.com
Blog
naikrajesh.blogspot.com
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