Scaling Agile Is Hard, Here s How You Do It!

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Scaling Agile Is Hard, Here s How You Do It! Diego Lo Giudice, Vice President, Principal Analyst April 9, 2014. Optional Conference, Budapest

Agenda Is Agile still worthwhile? How are Organizations Doing It? You ve adopted Agile in the upstream, what s next? Agile in the downstream Key steps to scale your Agile adoption in the age of the customer 2014 Forrester Research, Inc. Reproduction Prohibited 2

Agenda Is Agile still worthwhile? How are organizations doing it?. You ve adopted Agile in the upstream, what s next? Agile in the downstream Key steps to scale your Agile adoption in the age of the customer 2014 Forrester Research, Inc. Reproduction Prohibited 3

2014 Forrester Research, Inc. Reproduction Prohibited 4

Empowered customers have given rise to a new era 2014 Forrester Research, Inc. Reproduction Prohibited 5

Four market imperatives Transform the customer experience. Embrace the mobile mind shift. Age of the customer Turn big data into business insights. Become a digital disruptor. 2014 Forrester Research, Inc. Reproduction Prohibited 6

In the age of the customer, modern applications will rule the world.

But what are modern applications? Social media and search Systems of engagement (SOE) Mobile, web, and smart devices Frequent changes Delight clients Delivered frequently Traditional Systems of record (SOR) Stable requirements Highly transactional Less change Delivered infrequently Cloud In-store point-ofsale systems Cloud-based services provided by third parties

Modern applications require modern delivery capabilities to... Deal with unknown requirements. Deliver software faster. Embed market feedback fast. Improve customer experience. Design and develop great software applications. Keep quality high and test smarter. Adopting modern management techniques is a must!

Agenda Is Agile still worthwhile? How are organizations doing it? You ve adopted Agile in the upstream, what s next? Agile in the downstream Key steps to scale your Agile adoption in the age of the customer 2014 Forrester Research, Inc. Reproduction Prohibited 10

Forrester Agile Survey, Q3 2013 Directors/managers: 47% VPs/other execs: 15% 20,000-plus 40% 5,000 to 19,999 11% 1,000 to 4,999 19% Tech industry: 34% IT end users: 58% Financial services: 13% Manufacturing: 8% Insurance: 7% Government: 8% Healthcare: 5% Base: 149 IT professionals from organizations that are planning to implement or have implemented Agile (percentages do not total 100 because of rounding); Source: Q3 2013 Global Agile Software Application Development Online Survey; *November 2011 Global Agile Software Application Development Online Survey

Agility approaches keep growing 2011* Scrum: 82% Lean: 33% Kanban: 37% DevOps: 10% Waterfall: 44% TDD: 37% 2013 Scrum: 90% Lean: 48% Kanban: 42% DevOps: 22% Waterfall: 54% TDD: 27% Base: 149 IT professionals from organizations that are planning to implement or have implemented Agile (percentages do not total 100 because of rounding); Source: February 5, 2014, How Can You Scale Your Agile Adoption? Forrester report; Q3 2013 Global Agile Software Application Development Online Survey; *November 2011 Global Agile Software Application Development Online Survey

Agile upstream Agile downstream 32%* 13% *Do standup, burndown/burnup, and short iterations; product owner; and constant feedback. Do upstream plus continuous integration, continuous delivery, and test-driven development. Source: February 5, 2014, How Can You Scale Your Agile Adoption? Forrester report

Top three expected benefits of Agile meet the upstream of the SDLC and the end-to-end delivery cycle for SOEs More opportunities for midcourse corrections: 11% Better business alignment: 20% Greater predictability of releases: 28% Base: 149 IT professionals from organizations that are planning to implement or have implemented Agile (percentages do not total 100 because of rounding); Source: Q3 2013 Global Agile Software Application Development Online Survey; *November 2011 Global Agile Software Application Development Online Survey

Scaling Agile is hard, but possible 21% 22% 40% 17% Base: 149 IT professionals from organizations that are planning to implement or have implemented Agile (percentages do not total 100 because of rounding); Source: Q3 2013 Global Agile Software Application Development Online Survey

Agile testing is difficult, and not many do it properly How often does your organization execute the following test practices? Always Often Sometimes Rarely Never Our definition of done includes testing. 50% 21% 18% 4% 7% Testing starts from Sprint 0 and runs continuously. 20% 28% 26% 15% 12% Test data management. 15% 24% 29% 16% 15% Functional and regression test automation 27% 32% 26% 9% 5% User acceptance testing/test-driven development 19% 28% 28% 11% 15% Behavior-driven development 3% 6% 22% 30% 40% Test-driven development 7% 17% 31% 31% 13% Exploratory testing 6% 32% 37% 15% 10% Manual testing 30% 47% 18% 2% 3% Base: 149 IT professionals from organizations that are planning to implement or have implemented Agile (percentages may not total 100 because of rounding); Source: Q3 2013 Global Agile Software Application Development Online Survey 2014 Forrester Research, Inc. Reproduction Prohibited 16

Getting experienced outside help in form of consulting, coaching, and programming has a positive effect What business benefits did your organization expect from each type of Agile SI? I use SIs or consultants that only provide experienced Agile programmers I use SIs or consultants that provide overall Agile coaching and programmers I use SIs or consultants that provide Agile testing experts I don't use SIs for Agile, because I feel they don't have the skills I don't use SIs for Agile, because I use Agile only on my differentiating apps I don't care what development method my SI uses Better business/it alignment Greater release predictability 10% 10% 21% 62% 29% 3% 27% 8% 14% 20% 22% 23% More opportunities for midcourse corrections Greater predictability of results aligned with requirements Other Increated motivation/morale Improved technical quality Improved functional quality Greater release frequency 10% 14% 19% 5% 13% 7% 13% 11% 23% 7% 7% 8% 10% 3% 21% 13% 3% 5% 8% 3% 7% 5% 8% 4% 5% 10% 7% 19% 19% 20% 24% 19% Base: 149 IT professionals from organizations that are planning to implement or have implemented Agile (multiple responses accepted) Source: Q3 2013 Global Agile Software Application Development Online Survey 2014 Forrester Research, Inc. Reproduction Prohibited 17

Agenda Is Agile still worthwhile? How are organizations doing it? You ve adopted Agile in the upstream, what s next? Agile in the downstream Key steps to scale your Agile adoption in the age of the customer 2014 Forrester Research, Inc. Reproduction Prohibited 18

We ve clearly not done enough!

The modern application delivery cycle has red zones Upstream: burndown/burnup and short iterations, product owner, and constant feedback Source: February 12, 2014, Navigate The Modern Application Delivery Landscape Forrester report Downstream: continuous integration, continuous delivery, and test-driven development

Modern applications need more frequent delivery and Agile in the downstream to make it happen Source: February 12, 2014, Application Delivery In The Modern Age Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 21

For more agility, testing needs to be automated, done continuously, early, and fast! End-to-end integration Source: January 15, 2013, Consistent Performance In Agile Teams Must Include Testing Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 22

DevOps to streamline a continuous feedback loop to continuously incorporate client feedback Dev(Test)Ops Source: January 27, 2014, The Forrester Wave : Service Virtualization And Testing Solutions, Q1 2014 Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 23

DevOps needed to optimize and automate the delivery pipeline and throw walls down between dev-test-ops Application release management Application deployment automation Cloud provisioning Development Build Package Test Stage Production repository environment environment environment Source: Forrester adaptation of SVT for dummies 2014 Forrester Research, Inc. Reproduction Prohibited 24

Agenda Is Agile still worthwhile? How are organizations doing it? You ve adopted Agile in the upstream, what s next? Agile in the downstream Key steps to scale your Agile adoption in the age of the customer 2014 Forrester Research, Inc. Reproduction Prohibited 25

Scaling Agile: Here s how Source: February 5, 2014, How Can You Scale Your Agile Adoption? Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 26

Scaling Agile: Here s how five musthaves in the upstream 1 Communicate continuously. 5 Connect business models, process, and work. 2 Transparent reporting and analytics 4 Small batches and embed feedback 3 Business PO and MvP Source: February 5, 2014, How Can You Scale Your Agile Adoption? Forrester report

Scaling Agile: Here s how source intelligently, measure, and improve Get the skills. Learn to improve and pivot. Measure progress. Value metrics. Source: February 5, 2014, How Can You Scale Your Agile Adoption? Forrester report

Scaling Agile: Here s how Source: February 5, 2014, How Can You Scale Your Agile Adoption? Forrester report 2014 Forrester Research, Inc. Reproduction Prohibited 29

Scaling Agile: Integrate Agile downstream practices early on Build frequently and automate. Eliminate waste, and automate deployment. Integrate continuously. Test continuously. Source: February 5, 2014, How Can You Scale Your Agile Adoption? Forrester report

Modern applications require modern delivery capabilities to... Agile manifesto and Lean principles Agile practices: Scrum and XP deal with unknown requirements. deliver software faster. embed market feedback fast. improve customer experience. design and develop great software applications. keep quality high and test smarter. DevOps: continuous testing, CI, and CD Adopt modern management techniques. modern Lean Kanban: management Lean Kanban: continuous improvement Lean startup: MvP and measure-learnpivot

Inject more agility in your delivery process in an Agile and Lean way and scale it Executive leadership is key. If you don t have it, get it. Injecting agility means changing the way people work. Make change an explicit goal. Assess your Agile results, make the five must-haves yours, and balance with downstream Agile early in the program. Upstream: Connect to PPM and architecture. Downstream: Connect to architecture, and adopt DevOps. End-to-end: Include customer feedback in your process. 2014 Forrester Research, Inc. Reproduction Prohibited 32

Inject more agility in your delivery process in an Agile and Lean way and scale it (cont.) Be ready to revolutionize how you (out)source, test, measure, and source new tooling. Take it in small chunks do it incrementally and iteratively. Scale it where it makes business sense... Agile scaling is a journey not your final destination! 2014 Forrester Research, Inc. Reproduction Prohibited 33

Thank you Diego Lo Giudice +39 340.771.0775 dlogiudice@forrester.com Twitter: @dlogiudice

Read the following Forrester reports to go deeper on how to scale Agile March 4, 2014, Modern Application Delivery Drives Digital Business Success February 5, 2014, How Can You Scale Your Agile Adoption? January 27, 2014, The Forrester Wave : Service Virtualization And Testing Solutions, Q1 2014 January 15, 2013, Consistent Performance In Agile Teams Must Include Testing 2014 Forrester Research, Inc. Reproduction Prohibited 35

Our Agile and Lean Playbook has a wealth of additional information on Agile And soon coming Modern Application Delivery Playbook: Agile, ALM, Continuous Delivery. Stay tuned! 2013 Forrester Research, Inc. Reproduction Prohibited 36