The Agile Factory Model vs. Waterfall at SITA



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AGILE FACTORY MODEL... an effective solution for large, distributed software development London, UK 27 June, 2013 John Flenley, FBCS Vice President Software Development Olivier Poulard Director Software Development SITA www.sita.aero

The Agile Factory Model vs. Waterfall at SITA Vital productivity gains: 2.6 to 3.5 fold increase Cost reductions: 55% Quality improvements: 60% less defects Scalability: 52 scrum teams (650+ staff) at peak time Consistent fortnightly deliveries 2 SITA INC UK Limited 2013. All rights reserved.

Context & Drivers for Change

Who are SITA? We don t deliver garbage

5 SITA INC UK Limited 2013. All rights reserved. Who are SITA

Horizon Portfolio Overview Access E-Commerce Mobile Kiosk Agent / corporate direct Airline agent desktop Partner & GDS distribution Direct Sales and Service Pricing Total Fares Management Analyse Manage Distribute Price Shop Fast and accurate control of fares PSS Core Reservations Inventory & RM DCS W&B Ticketing Flexible, efficient Passenger Service Systems core moved off legacy Services Profile & Loyalty Payments Ancillary Sales Intelligence Shared services for all channels and customers 6 SITA INC UK Limited 2012. All rights reserved.

Functions redeveloped in the current NG PSS programme Existing open modules Integrated into NG design PSS related touchpoints Scope of the Next Generation PSS Program Touchpoints Desktop ecommerce Mobile portal Social media Kiosk Agent & Corporate direct 3rd party Apps Call centre Check-in Boarding Mobile agents Cabin in-flight GDS & Online agent Partner & Alliance Integration platform and enterprise service bus Primary Retailing services Marketplace Merchandising Service catalogue & fees Reservations Merchandising engine Inventory & schedules Pricing control Price, re-price, refund Fulfillment eticket, EMD Flight shopping Payment services Departure check-in & boarding NG PSS administration Related functions Loyalty Business intelligence Revenue management Revenue integrity Revenue accounting Weight & Balance Data Customer journeys Customer profiles Inventory data Schedule data Seat data Pricing/ fee data Reference data 7 SITA INC UK Limited 2012. All rights reserved.

Horizon Next Gen Program Size Program estimation and sizing through formal analytics methodologies 5 year program with $155m development budget 102,000 Function Points (FP) in total for scope Other Development Programs Function Point Counts * US Air Traffic Control Microsoft XP Microsoft Office Professional Airline Reservation System NASA Space Shuttle Google Search Engine Travelocity FEDEX Shipping Controls Denver Airport Luggage 306,000 127,000 93,000 38,000 23,000 19,000 19,000 17,000 17,000 * Approx values for comparison purposes only 8 SITA INC UK Limited 2012. All rights reserved.

Next Gen. PSS Program: distributed organization ATL: Supplier ATL: Supplier YVR: SITA LON/KUL: Supplier ARN Copenhagen ATL Atlanta BLR Bangalore DEL Delhi KBP Kiev KUL Kuala Lumpur LED St Petersburg LON London OMS Omsk ATL: SITA LON: SITA ARN: Supplier All Software Development SITA QC KBP: Off-shore partner SITA Business Line DEL: Off-shore partner SITA Data Centre OMS: Off-shore partner 3 rd party suppliers LED: Off-shore partner DEL: Off-shore partner BLR: Off-shore partner 9 SITA INC UK Limited 2013. All rights reserved.

Why we needed to change Change drivers: by Year 3 we were over spent and under delivered 50% budget spent and approximately 25% scope completed Delivery delays Technical debt build-up Quality issues Change vision: we needed to be faster, on time, on budget Project acceleration to get back to 5 year plan Finite scope Engaged with 3 off-shore partners under same governance, responsible for development and testing prior to SITA acceptance testing 10 SITA INC UK Limited 2012. All rights reserved.

Agile Factory Model

Organization (shared responsibilities)

Key principles Finite scope and accurate sizing Clearly define and agree on the Definition Of Done Plan scope of work and resources ahead and iteratively Empower team to self-manage and take ownership Identical vendor structure, governance and timings (heart beat) Improve continuously through measuring and lessons learned Quality deliverables by discovering and fixing problems early Continuous integration: build often, integrate often, test often 13 SITA INC UK Limited 2013. All rights reserved.

Delivery process Agile Factory Framework Boundaries SMEs BAs/BCs Architects Off-shore Supplier 1 Off-shore Supplier 2 Off-shore Supplier 3 Quality Business Line (PSL, GSL) SW Support & Maintenance Continuous Integration Quality 1 2 3 4 5 6 7 Requirements documented Requirements & High Level Design completed Software delivered passes Factory Acceptance Test Software built and deployed Acceptance, Integration and Performance Tests Software Delivered for Demos / User Acceptance Test Software Delivered for Production 14 SITA INC UK Limited 2013. All rights reserved.

Teams & roles Cross-Functional Team (XFT) Senior Delivery Managers Project Managers, SMEs Architects, Business Analysts Testing & Continuous Integration Plan the stages and iterations of the development program Provide Subject Matter Expertise (SME) Responsible for requirements and high-level design Interface with Offshore Core Team (OCT) Trust teams to self organize and deliver on commitment Manage teams not people (contracts are for teams) Off-shore Core Team (OCT) Program & Project Management Chief Scrum Master Proxy Product Ownership Technical Mgt & Leadership QA Mgt, Configuration Mgt Integration/NFR Testing Mgt Manage supply chain (input/output analysis and prioritisation) Manage Scrum Teams (number and work allocation) Shield Scrum Teams from management issues Roles and responsibilities aligned to functional domains Chief Scrum Master has full view of all Scrum Teams NFR Test Team do non-functional testing at module level Scrum Teams 50% Scrum Master 50% Business Analyst 1 Technical Lead 5 Developers 2 Testers Two (2) Scrum Teams per Scrum Master and per BA Focussed on development and functional testing Daily Scrum Team meetings to feed into Scrum of Scrums Output continuously integrated and tested until ready for final verification and end-to-end testing 15 SITA INC UK Limited 2013. All rights reserved.

Acceptance, Integration and Performance 16 SITA INC UK Limited 2013. All rights reserved.

Iterative Software Delivery Framework Elaboration Review & Planning Agile Development & Testing Acceptance, Integration, Performance 17 SITA INC UK Limited 2013. All rights reserved.

Stage in detail (assembly piece by piece) SITA INC UKNetworking Limited Computing 2013. AllUK rights reserved. Copyright Limited 2012. Confidential. All rights reserved. Information 18 SITA

Resource capacity plan Software delivery strategy and plan defined from: % Total scope 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 1 2 3 4 5 6 Scenario 1 Scenario 2 Scenario 3 Stages Partnerships with 3 offshore suppliers Agile methodology and principles Overall geographical distribution SITA s capacity to produce Use Cases and Design Artifacts iteratively Offshore suppliers resourcing capacity and ability to produce software iteratively 3 theoretical scenarios based on risk management (scope vs. delivery process) 19 SITA INC UK Limited 2013. All rights reserved.

Estimation process 1. Program Scope (Use Cases) / Analytics Criteria* Program Sizing (Function Points*) 2. Program Sizing (FP*) / Productivity (hrs/fp*) Total Effort (hours) 3. Total Effort (hrs) / Forecast Completion Date Overall Resource Capacity Plan 4. Resource Capacity Plan / Prioritized Use Cases Stage Scope (Use Cases) 5. Stage Scope (Use Cases) / Prioritized Use Cases Sprint Scope (Use Cases) * Definition of Function Point per UKSMA 1.3.1 - Mk II FP A 20 SITA INC UK Limited 2012. All rights reserved.

Controls through metrics Daily Metrics Sprint Metrics (trends) Checklist of Dev. documentation Product Release Use case burn-down Automated Coding standards checking Automated Unit Test results Test case execution, passed against planned Defects Automated unit test coverage Frequency of builds and runs of automated test suites Use cases planned for Sprint compared to number done Manual functional test coverage (GUI) Produced by OCT. Monitored and approved by SITA QA including test plan, design and test exit reports Defects found in Acceptance Integration or Performance: Categorized into Severity1-5s Total defects per function point and KLOC Requirements coverage by test cases executed Automated functional and non-functional test coverage 21 SITA INC UK Limited 2013. All rights reserved.

Communication Weekly webinars between XFT and OCT Webinars and video-conferences for planning, reviews and retrospectives Webinars and video-conferences for demonstrations of working software Agile-Friendly offshore environment All documentation, source code and scripts shared in one central repository SITA Delivery Management Team completed 6-8 site visits per module per year to each vendor OCT feedback the output of daily stand-ups, scrums and scrum of scrums to XFT via reporting of standard metrics and processes Multi-vendor OCT integration meetings twice per week Key OCT resources based onshore alongside XFT 22 SITA INC UK Limited 2013. All rights reserved.

Concerns & Lessons Learned

What were the problems (1/2)? Difficulty for XFT to consistently feed offshore factories with required volume of quality requirements and design artefacts Excessive rework due to data schema and functional design changes (up to 40+% at peak time for 1 module, stabilized at ~25%, 27+% on average over 2 years) One offshore partner terminated half way Integration problems Delayed and unavailable external components and services Non-functional / buggy components and services Changed service interfaces 24 SITA INC UK Limited 2013. All rights reserved.

What were the problems (2/2)? 60 50 40 Stage 2 Stage 5 New Stage 7 30 20 10 Offshore Scrum Teams (Actuals) Theoretical/Ideal Trend 0

Agile Factory Model: vendor view Initial Concerns Fixed price contract for Agile projects Outcome Time and material contract with service credits Sizing based on function points Function points are now the norm Expected high productivity (<16 hrs/fp) Achieved 15-16 hrs/fp (80% development life cycle) High-level of testing coverage (100% of all functionality, >80% of all business logic) High-level of automated testing coverage (100% of all functionality, >80% of all business logic) Continuous parallel functional, integration and performance testing as per Agile vs. after development as per Waterfall Development and functional testing performed in parallel resulted in 60% less defects and defects found by SITA Quality post development, reduced from 70% to 15% Continuous integration for modules developed by off-shore partners Continuous integration, essential due to high number of scrum teams working in parallel, ensured consistent processes and practices 26 SITA INC UK Limited 2013. All rights reserved.

Recommendations & Thoughts

A few recommendations Set and communicate clear business and technical vision & goals, incl. minimum viable & marketable systems Structure contracts based on framework and what (really) matters and needs to be achieved Select carefully the Offshore Core Team (interview, frequent visits and reviews, changes early on as needed) Define and implement a continuous build, integration & testing environment offshore Define a clear common governance, incl. Definition of Done (DoD) at all levels Define and implement an improvement program Seed scrum teams while ramping up; keep the best resources while ramping down Actively manage functional and technical dependencies Track and manage productivity and quality metrics but... foremost the completion of business functionality 28 SITA INC UK Limited 2013. All rights reserved.

More thoughts At first consider small to medium size/complexity projects (<$5M/yr, with a small number of ext. dependencies) Stage 0 (dictionary, foundation, prototyping, accurate project sizing) essential before application development Business value-driven (top-to-bottom) plan & testing vs. Integration-driven (bottom-up) prioritization Incremental (top-to-bottom) definition & design vs. Iterative (bottom-up) development & testing 80-20% rule (scope vs. effort; functional vs. non-functional design) Contracts should be aligned with model & business goals, and should include a termination clause 29 SITA INC UK Limited 2013. All rights reserved.

Delegation works Self-managing teams works Common governance works Continuous improvement works Bottom-up management works Continuous integration works Distributed structure works john.flenley@sita.aero olivier.poulard@sita.aero Agile Factory Works...!