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©	Tasktop	2017 @mik_kersten			@carmendeardo© Tasktop 2016
Value	Stream	Architecture
Dr.	Mik	Kersten	(Tasktop	CEO)	&	Carmen	DeArdo	(Nationwide	Technology	Director)
Image	Source:	BMW	Group
©	Tasktop	2017 @mik_kersten			@carmendeardo
We are a strong mutual
company built to serve
our members.#68 ON THE
FORTUNE
500 LIST
©	Tasktop	2017 @mik_kersten			@carmendeardo
of	the	
Fortune	
10043
of	the	top	25	
world	banks11
of	the	top	10	
US	insurers4
of	the	top	6	
health	plans6
©	Tasktop	2017 @mik_kersten			@carmendeardo
©	Tasktop	2017 @mik_kersten			@carmendeardo
Application Security
Monitoring & Mgmt
Process.st
Development
Test
API
Deployment
Run
Monitoring
Low Code/Rapid/Mobile Dev
Security
Codebox
IDEsReq Management Agile Management
App Automation
Container Security DevSecOps
Low Code / RAD
/ Mobile App Dev
CI/CD
Dev Analytics Perf / Load / Stress
Functional / Automation
API Management
API Dev Services
API Integration
API Directories
VINDOC
GrowthPoint Technology Partners
DevOps Startup Landscape Map
Cloud / Container Orchestration / Management
Repositories / Dev Communities /
Integration Layers
Service Virt
© Copyright GrowthPoint Technology Partners 2017
For general information purposes only. This is not an analysis nor a recommendation of any company and is not an offer or solicitation
to buy or sell securities in any company.
©	Tasktop	2017 @mik_kersten			@carmendeardo
Fragmented	Value	StreamsBusiness	Value
Best-of-breed	tool	chain
Revenue	Results
We	need	a	more	disciplined	and	structured	way	of	
thinking	about	software	value	streams
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
Our AGILE Journey Began in 2006
7
AGILE
The starting point was a
Project Centric mindset
with high start-up costs
and inconsistent delivery
We did not see the productivity
and quality gains we desired, so
we increased our focus on Agile
practice maturity
To reduce start-up costs and
improve consistency, we established
20 agile “standing lines”2006 2012
CMMI
Scaled up to 50 Agile
Lines across 14
technology domains
First Tasktop Integration:
QA and Agile Lines
(defects)
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
AGILE and LEAN provided Productivity and Quality
Improvements, DevOps needed to drive Speed
8
AGILE
Introduced LEAN for
application maintenance
productivity and quality
2014 2017
LEAN
Redesigned our Software
Development model and adopt
Agile across all application areas
Use Tasktop Hub to
provide visibility
across delivery value
stream2016
Roll out DevOps practices
to improve lead time and
deployment frequency
DEVOPS
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
Results
PRODUCTIVITY
PREDICTABILITY
QUALITY
$25M+
Economic value
annually
88% releases went into
production with ZERO defects
55% Top Quartile
compared to industry
On-time delivery over 90%
9
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
SPEED
TIME
High Acceleration
during Design,
Develop and
Acceptance Testing
0
Teams waiting for work
due to “discrete”
planning processes
Deployment slowed
by manual and high
ceremony processes
10
Need to Increase Speed Across the Value Stream
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
True North:
Reduced lead time for changes
Business enabling responsiveness 11
Ø Change our goals from cost and support
efficiency to optimizing the developer
experience
Ø Architect for results like lead time and
deployment frequency
Ø Organize to support horizontal systems
thinking across the value stream
DevOps Compass Points to Business Success
©	Tasktop	2017 @mik_kersten			@carmendeardo
BMW	Leipzig	Plant	Architecture	
Image	Source:	BMW	Group
©	Tasktop	2017 @mik_kersten			@carmendeardo
Business	value	flow	at	BMW
Quality	cars	that	deliver	“sheer	driving	pleasure”
Designed	in	yearly	cycles,	delivered	every	70s
Creative	and	manufacturing	process	are	decoupled
Business	value	flow	in	IT
New	features	that	deliver	success	and	delight
Designed	and	delivered	every	2-week	sprint
Creative	and	manufacturing	process	are	coupled
Image	Source:	BMW	Group
©	Tasktop	2017 @mik_kersten			@carmendeardo
What	if	we	could	take	an	fMRI	of	the	
organization?
©	Tasktop	2017 @mik_kersten			@carmendeardo
Product UX	/	UI
Security
Ops
Cross-functional	Feature	Team
Development
©	Tasktop	2017 @mik_kersten			@carmendeardo
Feature	Teams
Product UX	/	UI
Security
Ops
Development
Feature	Team	1 Feature	Team	2 Feature	Team	3
©	Tasktop	2017 @mik_kersten			@carmendeardo
New	York
Vancouver
Greenland
Paris
Moscow
Beijing
Sydney
Cairo
Rio
©	Tasktop	2017 @mik_kersten			@carmendeardo
New	York
Vancouver
Greenland
Paris
Moscow
Beijing
Sydney
Cairo
Rio
©	Tasktop	2017 @mik_kersten			@carmendeardo
Optimizing	for	linear	flow
Design	for	repeatability,	minimize	creative	work
This	doesn’t	work	for	software
Waterfall	and	RUP	are	tried	to	make	things	linear
Overly	narrow	DevOps	are	doing	the	same
End-to-end	software	is	not	a	linear	manufacturing	process,	it’s	a
Value	Stream	Network
©	Tasktop	2017 @mik_kersten			@carmendeardo
Value	Stream	Network
©	Tasktop	2017 @mik_kersten			@carmendeardo
70%	integrate	3+	endpoints
40%	connect	4	or	more	tools	
66%	use	4-8	integration	patterns
300	value	streams	analyzed
Your	value	streams	are	networks
But	most	have	an	ad-hoc	architecture
©	Tasktop	2017 @mik_kersten			@carmendeardo
Software	architecture	follows	
value	stream,	not	vice	versa
APIs	to	minimize	a	team’s	wait	times
Or	structure	follows	value	stream	
Reverse	Conway’s	law,	Feature	teams
Value	Stream	Architect
Defines	integration	and	visibility	strategy
Designs	end-to-end	flow	and	feedback	loops
Core	to	your	transformation
Value	Stream	Architecture
https://itrevolution.com/devops-books/
©	Tasktop	2017 @mik_kersten			@carmendeardo
Value	Stream	Integration
Every	best-of-breed	tool	is	connected	for	end-to-end	flow
Single	standard	tool	chain,		can	be	specialized	for	countries,	LOBs,	investment	horizons
The	tool	chain	becomes	modular,	supports	change	and	specialization
Value	Stream	Visibility
Real-time	view	of	all	business	value	flows	and	bottlenecks
Metrics	are	connected	to	business	results
Risk	and	compliance	certification	is	built	into	the	framework
Framework
©	Tasktop	2017 @mik_kersten			@carmendeardo
Flow	Units
Unit Aka Pulled by Description
Feature Story Requirements,
User Stories
User/Customers New business value added to the
application, visible to the customer
Defect Story Incident, bug User/Customers Fixes for quality problems that
affect customer experience
Security Story Vulnerability Security Officers,
Auditors
Fixes for weaknesses, flaws and
vectors for exploits
Tech Debt Story Architecture
story
Software Architects,
Teams
Improvement to the software
architecture, invisible to the
customer
Value Stream Story IT for IT backlog Value Stream
Architects
Improvement to the value stream
architecture, invisible to the
customer
©	Tasktop	2017 @mik_kersten			@carmendeardo
Flow	Measures
Flow Measures Description Example
Lead Time Time from request to delivered artifact
running in production
Days from customer requesting a
feature to using the requested feature.
Cycle Time Time from work start to completion Hours from developer accepting a
Feature Story to merging the finished
implementation to master.
Process time Time an artifact is actively worked on Cumulative days a Feature Story is
actively worked on.
Wait time Time from work request to work start Time zone delay in hours for an offshore
team to start work on a Feature Story.
Utilization Sum of process times of lead time (%) Low utilization for a Dev team with an
external dependency
Backlog Size Number of artifacts in the queue at a
particular stage of the value stream
The number of Security Stories on an
Agile team’s backlog.
©	Tasktop	2017 @mik_kersten			@carmendeardo
Example	Flow	Metrics
Flow Metrics Type Description
End-to-end Lead
Time
Velocity Time from customer request to improvement running in
production
Mean Time To
Repair (MTTR)
Responsiveness Round-trip time from support ticket, through Defect Story
creation, diagnosis, fix through to delivery.
Deployment
frequency
Repeatability Number of deploy per day/week
Flow unit cost Cost Cost per flow unit per team
Productivity Throughput Number of flow units delivered per team per release.
New Business
Value Ratio
Value Proportion of Artifacts of type Feature Story delivered per
release.
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
27
STORY
BUSINESS
BUSINESS
INITIATIVE A
SYSTEM RELEASE
AC AC
SCM CI
IT / ST /
PT / UAT
CODE
STATION
TEST RESULTS / PT /
SECURITY
READY FOR
PRODUCTION
WORK
INTAKE
RELEASE
PLANNING
DESIGN /
DEVELOP
QUALITY
CERTIFIED
DEPLOY
INITIATIVE BUILDS
This image
cannot
currently be
displayed.
FEEDBACK
BUSINESS VALUE
DEPLOY
FEEDBACK
BUSINESS VALUE
BUSINESS
TASKTOP
INITIATIVE
BACKLOG WIP DONE
MULTIPLE
DEPLOYS
QUALITY
CERTIFIED
READY FOR
PRODUCTION
LEAD TIME
PPM
RTC
URBANCODE
RELEASE
URBANCODE
DEPLOY
VALUE STREAM
PROCESS STREAM
TOOL STREAM
DEPLOY
Measuring Lead Time
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
28
STORY
BUSINESS
BUSINESS
INITIATIVE A
SYSTEM RELEASE
AC AC
SCM CI
IT / ST /
PT / UAT
CODE
STATION
TEST RESULTS / PT /
SECURITY
READY FOR
PRODUCTION
WORK
INTAKE
RELEASE
PLANNING
DESIGN /
DEVELOP
QUALITY
CERTIFIED
DEPLOY
INITIATIVE BUILDS
FEEDBACK
BUSINESS VALUE
DEPLOY
FEEDBACK
BUSINESS VALUE
BUSINESS
TASKTOP
INITIATIVE
BACKLOG WIP DONE
MULTIPLE
DEPLOYS
QUALITY
CERTIFIED
READY FOR
PRODUCTION
CLARITY
RTC
URBANCODE
RELEASE
URBANCODE
DEPLOY
VALUE STREAM
PROCESS STREAM
TOOL STREAM
DEPLOY
6/1 6/10 6/24 6/26 6/24-6/26 6/30 7/5 7/15
LEAD TIME (45 DAYS)
Measuring Lead Time
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
29
Brad you
broke the Build
again!
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
30
DevOps
makes our
lead time small
©	Tasktop	2017 @mik_kersten			@carmendeardo©	Nationwide	2017
31
https://itrevolution.com/book/thinking-environments/
Horizontal planks must be built and supported:
• Architecture
• Product Ownership
• Funding
• Prioritization
• Continuous Improvement
Delivery Value Stream Organization Models
©	Tasktop	2017 @mik_kersten			@carmendeardo
©	Tasktop	2017 @mik_kersten			@carmendeardo
Value	Stream	Visibility
©	Tasktop	2017 @mik_kersten			@carmendeardo
No	DevOps	transformation	can	
succeed	at	scale	without	a	
connected	value	stream	
network
No	IT	organization	can	adapt	
without	accurate value	stream	
visibility
Value	Stream	Architect	is	key	
to	your	success
IT	cannot	thrive	without	a	connected	value	stream
©	Tasktop	2017 @mik_kersten			@carmendeardo© Tasktop 2016
@mik_kersten
@carmendeardo
http://tasktop.com http://nationwide.com
Image	Source:	BMW	Group

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