CMMI High Maturity best Practices HMBP 2010: High Maturity: The Corporate Perspective For Organization Wide Improvement by Koel Bhattacharya and Avinash Bharj
High Maturity: The Corporate Perspective For Organization Wide Improvement -Koel Bhattacharya and Avinash Bharj (Capgemini Pvt. India Ltd.)
presented at
1st International Colloquium on CMMI High Maturity Best Practices held on May 21, 2010, organized by QA
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CMMI High Maturity best Practices HMBP 2010: High Maturity: The Corporate Perspective For Organization Wide Improvement by Koel Bhattacharya and Avinash Bharj
1. Together. Free your energies
High Maturity: The Corporate Perspective
For Organization Wide Improvement
-Koel Bhattacharya
Avinash Bharj
(Capgemini Pvt. India Ltd.)
2. Together. Free your energies
High Maturity: The Corporate Perspective for
Organisation Wide Improvement
for 1st. International Colloquium on High Maturity Best Practices 2010
Koel Bhattacharya
Avinash Bharj
Capgemini India Pvt. Ltd.
2
3. Global IT Industry Outlook
ď§ Strong IT market recovery with growth projected at 8%
Forecasts for Global IT Purchases in 2009 and 2010
June 2009 Forecast September 2009 Forecast December 2009 Forecast
2009 2010
8.1%
4.9%
4.0%
-8.9%
-10.6% -11.4%
Source: September 29, 2009, âUS And Global IT Market Outlook: Q3 2009â Forrester report and the June 29, 2009,
âUS And Global IT Market Outlook: Q2 2009â Forrester Report
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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4. Impact on Employment
ď§ Strong growth in employment with the economic revival
ď§ Emerging economies will account for large percentage of growth
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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5. Positioning the Indian IT Sector
Indian IT Industry Growth Rate
ď§ Opportunities for growth
Value in USD Billion
60 ⢠High Outsourcing from North
47
American & European countries
⢠Rise in domestic demand for
e-governance initiatives
18
8 ď§ Challenges
2
⢠Government policies
1998 2002 2005 2009 2010
Source: NASSCOM Resource Center & Economic Times ⢠Double-dip recession
⢠Competition
Revenue $60 Billion
Projected Growth Rate 15% -18% ďPressure on billing rate
Potential Workforce 2.3 million ďHigh marketing/R&D expense
⢠Exchange rate fluctuation
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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6. Securing a Place for the Organisation
ď§ Creating business models which cater to increased demands
⢠Transformation of business processes to
Cost
Sensitive become more productive and competitive
Talent
⢠Industrialisation of operating models and use
Competitive
Management
of standardised rules, processes and tools
Business ⢠Reducing layers of costs that do not bring
Model
added value to the client
Time
to ⢠Developing new ways of doing business
Innovative
Market
through innovation, domain expertise and
Global
Collaboration improvement initiatives
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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7. CMMI Model - Casting a Process Framework
⢠Business objectives explicitly
s
em ou
t
linked with operational processes
en
ov u
pr tin
Im Con
⢠22 core process areas categorised
Business Benefit
into
lle ery
â˘project management
e
nc
ce liv
Ex De
â˘engineering
â˘support
t
em ct
en
ag je
â˘process management
an ro
M P
⢠Defined goals & practices for each
process areas
â˘Generic Goals & Generic Practices
Process Maturity
â˘Specific Goals & Specific Practices
Using processes to deliver ⢠Building infrastructure for creating a
business outcomes
process framework
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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8. Process Industrialisation
ďź Corporate Governance
ďź Process Infrastructure Design
ďź Collaborative Steering Group
ďź Integrated Processes
ďź Result Orientation
ďź Control and Management Reporting
ďź Continual Improvement
Aligning the process framework with the companyâs corporate governance structure &
laying the foundation for organisation wide improvement
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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Version 1.0 Š 2010 Capgemini. All rights reserved.
9. Process Industrialisation
Level 2
Configurations
Organizational
Responsibility
Identification
Management
Stakeholder
Resources
Status with
Training
Manage
Adherence
Evaluate
Process
Monitor
Provide
Control
Process
Policy
Review
Assign
Plan
the
&
&
Generic Practices Process Industrialization Framework
ďź Corporate Governance
Objectives for
Improvement
Performance
Quantitative
Sub-Process
Correct root
the Process
Improvement
Continuous
Information
Establish
causes of
problems
Establish
Process
Defined
Stabilise
Process
ďź Process Infrastructure Design
Collect
ďź Collaborative steering group
ďź Integrated Processes
ďź Result Orientation
Level 3 Level 4 Level 5
ďź Control and Mgmt Reporting
ďź Continual Improvement
Aligning the process framework with the companyâs corporate governance structure &
laying the foundation for organisation wide improvement
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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Version 1.0 Š 2010 Capgemini. All rights reserved.
10. High Maturity Process Areas
⢠Organisational Process Performance â discusses the
The continuous representation need for establishing organisational performance
of the model has the high goals and usage of predictive models
maturity aspects as part of the
⢠Quantitative Project Management â focuses on
generic practices at level 4 & 5
managing projects quantitatively by measuring
which needs to be fulfilled for actual performance against identified targets and
achieving higher capability in a helps in planning for midcourse corrections
process area.
⢠Organisational Innovation and Deployment â
In contrast the staged
emphasizes the need for implementing
representation includes the
organisation wide improvement initiatives
high maturity practices as part
of the four process areas at ⢠Causal Analysis and Resolution â helps in
level 4 & 5. identifying and addressing root causes of product
and process related defects and issues
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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11. The Premise of High Maturity
ď§ Creating synergy between Vision-BO-QPPO
Vision
Business Objectives Quality & Process Performance
Objectives
Market Leadership
Improve Workforce Effectiveness
Improve Quality/Reduce Rework
Business Process Improvement
Use of Information/Analytics
Competitive Insight
Attract & Retain customers
Reduce Enterprise Cost
Resource Optimization
Resource Optimization
Customer Satisfaction
Increase Productivity
Predictive Modeling
Predictive Modeling
Innovation
Customer Centric
Financial Performance
Capital Optimisation
Quality Focus
Process Performance Models Process Performance Baselines
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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12. High Maturity â Paradigm Shift
ď§ Senior management
⢠view leading indicators which influence the performance
of the business objectives
⢠plan for organisation wide process improvements
High maturity practices help to:
Data Inputs
Objectives
Description of goal
to be achieved
ď Historical & current operational
data or analytically derived
information
⢠Statistically define the organisationâs
performance (in terms of mean and
Decisions Constraints ď
ď standard deviation)
Actions that can High Requirements, Recommended Actions
realistically be Maturity limitations, The optimal course to meet the
carried out in rules constraining objectives ⢠Predict the performance
pursuit of decisions
objectives
of the organisational objectives
Implementation
Execution of recommended
actions
⢠Probe into reasons that lead to variation
⢠Plan for corrective or preventive
ď
ď
ď
Achieving Results measures
Measure performance against objectives
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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13. Predictive Analytics for Monitoring QPPOs
ď§ Let us look at a simple example:
Output
Vision Revenue Growth
Business Objective Competitive Pricing ⢠Model suggests the prediction
QPPO Improve Productivity interval for the QPPOs (Y value)
within which the estimated
Consider a statistical model
productivity should range
⢠Y = F(x1,x2, x3âŚ.) where,
⢠What-if analysis is based on past
⢠Y = Productivity
performance data
⢠x(s) = Skill Index, Requirement Volatility,
⢠Recommends the need to take mid
Complexity of Work, Schedule Compression
course corrections
Improve Skill Index to
Improve Productivity
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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Version 1.0 Š 2010 Capgemini. All rights reserved.
14. Innovation and Improvement
ď§ High maturity practices at CMMI Level 5 supports:
⢠Early detection of defects to reduce rework costs
⢠Innovative solutions to enhance operational effectiveness
ď§ Organisations are increasingly investing in innovations by setting up:
⢠Accelerated Solutions Environment to resolve
complex business challenges
⢠Centers of excellence for domain specific
Environment Opportunity
Scanning Assessment
solutions
⢠High level inventory of anticipated
Innovation
information technology developments
⢠Evaluation of the innovationâs potential to
Optimal Ideation impact future business drivers
⢠Develop capabilities to support clients' future
needs
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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Version 1.0 Š 2010 Capgemini. All rights reserved.
15. Tangible Benefits to an Organisation
ď§ Performance results revealed by several organisations to SEI
50% reduction in release time due to -
Schedule
61% improvement in productivity
Quality 48% improvement in quality due to reduction in defect injection
Enhanced productivity and improved quality allows organisations to
Revenue
price competitively, win more contracts and thereby increase top line
33% decrease in the average cost of fixing defects due to early detection
Cost
and reduction in rework
1.7:1 to 27.7:1 improvement in ROI due to reduction in defects,
ROI
improved productivity and shorter cycle times
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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16. Summary: The Long Haul
Invest irrespective of the economic condition
ď§ Process, people and technology
ď§ Economy is not uni-directional but cyclical
ď§ Recession will follow boom and vice-versa
⌠To gain traction
ď§ Organisational processes help in controlling costs and showing
resilience
ď§ Performance culture aids in building a talented company
Viewing high maturity practices as strategic business collaborators
Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
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Version 1.0 Š 2010 Capgemini. All rights reserved.
17. Thank You
Contact us
Koel Bhattacharya
+91 22 67557830
koel.bhattacharya@capgemini.com
Avinash Bharj
+91 22 67557506
avinash.bharj@capgemini.com
Together. Free your energies
www.capgemini.com
The information contained in this presentation is proprietary. Š2010 Capgemini. All rights reserved
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The information contained in this presentation is proprietary. Š2010 Capgemini. All rights reserved