Can ISO, CMMI and Agile Co-exist?



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Can ISO, CMMI and Agile Co-exist? Peter R. Hennessey Solutions for the Real-Time Enterprise

Agenda Introduction to Brooks Software Challenges in Culture and Change Industry Trends and CMMI An Agile Experience Q&A

Brooks Software In the fiscal year ended September 30, Brooks Software generated just under $120M in revenue out of the company s total revenue of $539.8M. This makes Brooks Software the largest MES software company and one of the 50 largest enterprise software vendors.» Source: Bruce Richardson» AMR Alert January 7, 2005 Brooks Software 11 major acquisitions (1998-2003) into a consolidated, real time solution footprint Organic business growth over 50% in 2004 Largest Discrete Plant Operations Software Supplier $120+ million in software revenues -- profitable and growing $30+ million in R&D investment strong product pipeline Deep domain expertise: 660 software professionals 40.6% of Revenues 33.0% of Revenues 26.4% of Revenues

Brooks Software: Discrete Market Leader Brooks Automation Applied Materials Camstar Systems ibaset Siemens MES Market Share 6.4 4.1 3.9 3.5 13.4 51 of Industry Week s Top 100 manufacturers 10 of top 10 Semiconductor 6 of top 10 automotive 6 of top 10 A&D 10 of top 10 electronics Datasweep Rockwell Automation Visiprise GE Fanuc Automation HMS Software SAP Oracle Lilly Software 3.4 3.4 2.9 2.7 2.7 2.5 2.4 2.3 Largest Marketshare in MES (AMR 03) Plant Operations (Gartner 04) MES (ARC 03) Discrete SCE (ARC 03) Factory S/W (Dataquest 04) ACS 2.2 QAD 2 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Source: ARC 2003 Percent Marketshare Largest Passive RFID Supplier Multiple 1,000+ reader installations

Brooks Software: Discrete SCE Market Leader Brooks Automation Leading Suppliers of SCE to Discrete Manufacturers SAP Applied Materials Manhattan Pitney Bowes RedPrarie Camstar ibaset Siemens 2.4% 2.3% 2.1% 3.3% 3.2% 3.1% 3.9% 3.8% 7.9% SCE Overall Market Sizing $3.2 billion market 38.7% licenses $5.2 billion market in 08 9.7% CAGR 33.5% licenses Discrete SCE Market Sizing and Growth: $878.8 million in 2003 26.8% growth in 2003 $1,621 million forecasted in 08 13% CAGR forecasted through 08 Datasweep Oracle Vastera Rockwell 2.0% 2.0% 2.0% 2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

Product Operations 4 Software Product Groups (Tier 1) Logistics and Simulation Manufacturing Execution Solutions Equipment Engineering Solutions Automation Robotics Systems and Components Specialized Products (Tier 3) Support customer specific requirements Specialized for market segments 7 Software Development Centers Chelmsford, MA USA Seoul, Korea Salt Lake City, UT USA Phoenix, AZ USA Toronto, Canada Reading, United Kingdom Chennai, India

So what is Process? A Product = A Result of a Process Quality = Measure of a process and how effectively people can execute it to meet business goals Great software doesn't come from tools, it comes from people. Larry Constantine Peopleware

It Starts With Strategy Gartner companies should not try to implement business processes or cultural and IT changes that are not aligned in a viable strategy» Knowledge Reports Feb 2005 Software Process Improvement (SPI) is a Supporting Strategy for the Execution of Brooks Software s Core Strategies

What are the Challenges? The only thing that lies between us and dramatic success is organizational friction Tom Peters Re-Imagine! Business Excellence in a Disruptive Age Effective Software Process Improvement reduces the Friction in the value chain to deliver products and services that meet customer needs!

The Good-to-Great Matrix of Creative Discipline Hierarchical Organization Great Organization High Culture of Discipline Bureaucratic Organization Start-up Organization Low Low Ethic of Entrepreneurship High

The Battle for Change Positive Change The Detractors The Silent Majority The Leaders Resistance to Change

Pushing the Flywheel Get the flywheel of incremental improvement rotating as fast as possible Grow leaders, remove detractors Problems become opportunities At some point the momentum of continuous improvement kicks in your favor Sustainable change comes about only by a cumulative and collaborative effort

The Soft Skills are Hard Cross Functional Teaming Common Language and Conceptual Alignment Understand the Cultural Paradigm Influence Skills Thinking Styles and Sensitivity Screening Effective Listening Negotiation Conflict Resolution

Cross Functional Teaming An organizational teaming structure that works cross functionally to define best practices and process improvement. A mechanism to align like roles across the global team. An enabler for implementing process and quality improvements locally. Examples: Root Cause Analysis Teams for creative problem solving Steering Teams Process Teams Infrastructure Tool Selection and Deployments

Industry Trends ISO, CMMI and Agile Solutions for the Real-Time Enterprise

What drives Commercial Software Companies? Market Opportunities Unqualified Lead Financial Reporting Qualified Lead Initial Quote Product Fit/Service Requirements Negotiations Contract Completed Booking Proposal Process Product Life Cycle PO Receipt Order Fulfillment Services Engagement

Industry Drivers in Software Process Engineering Process Frameworks ISO 9001:2000 The SEI Capability Maturity Model Integrated (CMMI) Product Planning and Requirements Processes Pragmatic Marketing Engineering Processes Unified Modeling Language (UML) Agile Methods and extreme Programming (XP)

ISO 9001:2000 An ISO family of Quality Standards Widely adopted industry certification applicable to all business.. Seal of Approval Establishes the Corporate Quality Framework for Brooks Software Quality Management System Internal and External Assessment Processes Management Review Process Root Cause and Correct Action

Document Structure Policies Business Process LEVEL 1 LEVEL 2 Outbound Communication Operating Procedures and Performance Indicators LEVEL 3 Work Instructions, Templates and Standards Records and Audit Trail LEVEL 4 LEVEL 5

What Is The Capability Maturity Model? A framework for software process improvement which measures the capability of an organization against an industry benchmark A knowledge base of best practices Defines benchmark capabilities in Key Process Areas (KPA) for Software Companies It is NOT a methodology, it allows tailoring of underlying development methods such as Agile, RUP and traditional waterfall.

What are we trying to achieve with CMMI? Use CMMI as a tool to continuously improve the Brooks Software Software Product Life Cycle (SW-PLC) Processes to enable A culture of discipline with an ethic of entrepreneurship Core premise of Good to Great companies, Jim Collins Good to Great 2001

CMMI Foundation Project Planning Project Monitoring and Control Requirements Management Configuration Management Product and Process Quality Assurance Measurement and Analysis Verification/Peer Reviews Other L3 KPA s

Building the Right Thing Brooks Software Product Planning utilize the concepts espoused by Pragmatic Marketing. These define elements of Product Planning Project Contract Product Launch Key Concepts Listen and understand your customers problems Define the value proposition and ROI Understand user roles and goals Communicate to Development Focus on solving customer problems Whole product launch and communication

Unified Modeling Language Used within the Design and Construction Phases of the SW- PLC for Engineering Specifications Provides an industry standard modeling language for Software Systems Visualization of the Problem and Solution domains Foundations from Object Modeling Technique (OMT) (James Rumbaugh) Use Case Analysis (Ivar Jacobsen) Booch Methodology (Grady Booch) Driven by Rational and the Object Management Group (OMG) The notational semantics for the Rational Unified Process (RUP) Supported by many tools

Unified Modeling Language What can you Model with UML? UML defines types of design formalisms, a common language for Software Design Divided into three categories: Structural: Model types that represent static application structure Behavioral: Model types represent different aspects of dynamic behavior Deployment: Model types represent ways you can organize and manage your application modules.

Some Key Agile Concepts Small Releases and Iteration increase the cycles of learning Ongoing Validation Continuous improvement and Refactoring Customer Advocacy Architectural Standards

Small Releases Iterate through baselines, update and validate on short cycles 2 4 weeks Increase Build Frequency and Cycles of Learning

Ongoing Validation Agile teams focus on validation of the software at all times. Develop functional tests that fulfills the requirements reflected in the stories. Customers or customer advocates provide acceptance tests that enable them to be certain that the features they need are provided.

Continuous Improvement Refactoring is embedded in the process Agile teams improve the design of the system throughout the entire development process

Continuous Integration Agile teams strive to integrate and build the software system as frequently as is feasible This keeps all stakeholders and developers on the same page, and enables very rapid progress Perhaps surprisingly, integrating more frequently tends to eliminate integration problems that plague teams who integrate less often.

Customer Focus Customer Advocacy is paramount An agile project is steered by dedicated individual(s) who are empowered to determine requirements, set priorities, and answer questions as the developers have them. Communication improves and drives efficiency in the levels of documentation

Project Standards Architecture and Coding Standards allow focus on project goals instead of technology Minimizes technology risk

Brooks Software Product Life Cycle The Software PLC (SW-PLC) process A business process model that groups major activities and deliverables for the management and development of software products The elements of the Brooks SW-PLC process are: 1. Product Planning 2. Requirements 3. Design and Planning 4. Construction/Assembly 5. Verification 6. Packaging/Deployment 7. Customer Support

Software Product Life Cycle Software Product Life Cycle (SW-PLC) business process foundation Centered on the Customer Governed by Strategy, Goals, and Plans Facilitates customer communication and assessment Common product/project vocabulary and structure for Project Execution Whole Product focus Concept to Obsolte Embedded Capability Maturity Model Key Process Areas (KPAs) Emphasis on cross-functional teaming A unified foundation for sharing of best practices Aligns with ISO Product Realization requirements

Agile within the PLC Framework Market and Product Launch Market Requirements Product Plan Project Contract Change Control Product Planning and Management 2-5 Iterations Feature Builds Product Requirements and System Architecture Iteration Planning Feature Iteration 1 Feature Iteration 2 Feature Iteration n Product Development 1-2 Iterations Bug Fix Iteration 1 Product Verification Bug Fix Iteration 2 Packaging and Deployment Ship Customer Support Project Start Roadmap Dates Set Functional Freeze Code Freeze Readiness Review Time

Day Iteration N-1 ADP 3 Week Iteration Cycle (Generic) Iteration N 1 : Monday Construct - Build & Install Kit Plan - Initial story elaboration 5 : Friday 6 : Monday 7 : Tuesday 8 : Wednesday 9 : Thursday 10 : Friday 11 : Monday 12 : Tuesday 13 : Wednesday 14 : Thursday 15 : Friday Plan - Update stories in RTS Iteration Completed Verify - Handoff iteration to QA Plan - PE developing iteration stories for next iteration Activity 2 : Tuesday Verify - Dev build validation Plan - Start task estimation 3 : Wednesday PE usability validation Refine - Revise stories (Optional) 4 : Thursday Fix issue & rebuild (Optional) Based on previous iteration results Finalize - Enter iteration stories into RTS Commence task estimation tracking Construct - Story development Code, Test & Check-In Construct - Story development Code, Test & Check-In

Thank You Feedback always welcome Peter R. Hennessey Peter.Hennessey@Brooks.Com 978-262-2800

Thank You! Questions Solutions for the Real-Time Enterprise