Innovation in Software Quality

A Multi-Model Case Study: High Maturity in Development +

Services, Together with the Innovation Model (NP4457)

Madrid, 5th of June 2012

Pedro Castro Henriques (Strongstep), Margarida Gonçalves (Strongstep);

Silvia Rodrigues (Ambisig)

1

Agenda

1. Introduction

2. Needs

3. Benefits

4. Challenges

5. Conclusions

2

About Strongstep

• Strongstep is a company specialized in

software engineering that contributes to the

improvement of software quality in Portugal

and in the world

• We want to induce a positive change in

organizations. This will represent a step with

a strong, sustainable and innovative way - a

strong step

• Projects portfolio: • Process improvement with CMMI DEV L2, L3, L5, CMMI

SRV, TSP/PSP, combining agile/CMMI, Six Sigma,

NP4457, Kanban, Scrum, ITIL, PMBOK, ISTQB, RUP

Strongstep

Universities

Enterprises Reference Institutions

3

ABOUT AMBISIG

AMBISIG is a technological company that respects the highest market demands resorting to Innovation. In its operation areas like the Geographic Information Systems, Engineering Systems, Quality, Consultancy, Information Technologies, customized software Development and Outsourcing answers the business needs of the clients and ensures their visibility strategies and sustainability in the market.

We focus on high quality on our processes obtained a set of certifications and uncommon accreditations that encompass:

• CMMI DEV 5 – CMMI for Development Level 5 • CMMI SVC 2 – CMMI for Services Level 2 • NP 4457 – Research, Development and Innovation

By choosing innovation as the success critical factor in the development of its supply offer, AMBISIG is pioneer in the provision of solutions for the transport infrastructure management with the development of products like RoadVision (Road Infrastructure Management), RailVision (Railway Infrastructure Management) and APMS – Airport Pavement Management System), as well as a Geoportal product, a very competitive solution in terms of GIS. Within the quality area has developed the QI solution (Quality Intranet) that has also innovated how to manage/sense and maximize the organizations in the implementation of Quality Management Systems through its transformation into a support system to the continuous operation and monitoring of the certified operations.

• ISO/IEC 20000 – Information Technology Services • ISO 9001 – Quality • ISO 14001 – Environment • ISO/IEC 27001 – Information Security

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INTRODUCTION

Part I

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Presentation Goals – leaner outcomes

• Where and how to combine CMMI for Development and CMMI for Services best

practices with an innovation model (NP4457) .

• The benefits of having CMMI for Services in a organization which has high maturity

in Development part

• The challenges associated with mixing a development culture and a services

culture, while keeping transversal innovation mechanisms.

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Multimodel DEV5 + SRV2 + RDI

A multi-model process improvement approach can bring large benefits to an

organization that produces software products and services and wants to be

innovative.

This presentation illustrates this idea by bringing together three specific models:

• The CMMI-DEV constellation (ML5) brings new ways for organizations to

quantitatively manage their processes and quality performance goals,

projects, and innovation.

• CMMI-SVC (ML2) works as a catalyst for a service culture.

• The Innovation Norm (NP 4457) helps establish a RDI (Research

Development and Innovation) management system across the

organization for continuous innovation.

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CMMI DEV5 Context

• Define desired performance based on Business objectives

• Measure current performance

• Select sub-processes that help to achieve the objectives

• Predict performance and outcomes

• Control sub-processes critical to achieving the objectives

• Investigate anomalies found in analyses

Process Performance Objectives

Process Performance Baselines

Sub Process

Alternatives

Process

Perform. Models

Sub Process

Control

Causal Analysis

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Services Context

• The CMMI for Services constellation brings

• a new dimension of best practices in service management that complement

the software development life cycle

• works as a catalyzer for a service culture in traditionally development oriented

companies

• Some synergies and challenges will be addressed on the way the development

and services worlds can together create value

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The Innovation Context

Model (NP 4457) - Types of Innovation

• Product (and services)

• Taking to the market new or significantly

improved products or services

• Includes significant technical changes,

components, materials, software or user

interfaces

• Service innovation may include

improvements on how the service is

provided, new functionalities or new

services

• Marketing

• Implementation of new marketing

methodologies involving significant

improvements on design, product,

packaging, pricing, distribution or

promotion.

• Improvements implementation with the

objective of increasing sales, improve

market satisfaction or open new

markets.

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The Innovation Context

Model (NP 4457) - Types of Innovation

• Organization

• Implementation of new business

methods, work planning or external

relationships

• Implementation of new methods to organize

routine activities or work development

• Implementation of new methods to

distribute responsibilities and decision

taking

• Implementation of new concepts of relating

with other organizations, new ways of

collaborating or relating with suppliers

• Process

• Implementation of new or significantly

improved processes. They can be

construction, logistics or distribution.

• This activity also includes the development

of new or significantly improved

activities to support the processes

(e.g.IT systems, accounting systems)

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The NP 4457 model and PP and PMC

• Both NP 4457 and CMMI deal with innovation projects that have to be

planned and monitored through its lifecycle

• Both models require previous analysis to classify a project as an

innovation one

• Planning should consider the project innovation objectives and return

expected results (ROI)

• Innovation projects should include information about the expected

improvement as well as the verification and validation method for the

innovation expected

• Knowledge should be spread and shared across the organization

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The NP 4457 model and OPP

• NP 4457 is a more broad model in terms of knowledge covering also

the market innovation

• The OPP practice in CMMI requires a quantitative approach which is not

required in NP 4457

• Both models have assessment methods based on interviews and artifacts

evaluation (objective evidence)

• OPP is internationally adopted through the implementation of CMMI

while NP 4457 is a Portuguese model based on the Oslo Innovation Manual

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NEEDS

Part II

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Quality Service Needs

• Gap that was missing in process oriented organizations with maturity in

development:

• for some type of activities that intrinsically are continuous and involve less

engineering

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Innovation Needs

• Another gap or need was to continuously collect new ideas from people in the

organization, filter them and to generate competitive innovations

Innovation

idea

Ideas

?

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AMBISIG Case Study

• About AMBISIG

• Information Systems Company based in Portugal

• CMMI Development - Level 5 with a strong quality culture

• About 60 persons with mostly engineering background

• International clients

• They develop solutions mostly for central government, regional and

public organizations

• Their clients are demanding more and more for levels of service and

SLA’s

• Always looking for new ways to improve the way they work

• Also looking for new ways to find profit and new sources of income

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Ambisig continuous evolution History

Planning and project monitoring

Change Management

Milestones

2008 2009 2010 2011 2012

CMMI DEV 5 DEV ….

1S 2S 1S 2S 1S 2S 1S 2S

CMMI SRV 2 SRV ….

NP 4457 RD&I

CMMI DEV 3

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Case Study – Multimodel (DEV5+SRV2+RDI)

Processes that we defined:

• Work Management process (for services and projects)

• Requirement Management process(for services and projects)

• Service establishment process – in order to setup new services in the company

• Service delivery process - ex: receive a request; check it’s in the catalog of

services, solve the request

• Ideas Management (NP4457)

• Innovation Management (NP4457)

• Apart from … traditional – quality control, metrics, configuration management

with some adaptations

• Lessons learned

• Separate project management and service management processes – its easier

• Innovation processes are independent of the nature of work, but usualy start as

an innovation project.

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Case Study - Service Management

Service Delivery (SD):

setting up agreements, taking care of service requests, and operating the service system

Incident Resolution and Prevention (IRP):

handling what goes wrong—and preventing it from going wrong ahead of time if you can

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Case Study – Idea Management

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RD&I how does this fit with

CMMI development and CMMI services?

Inovation Ideas

Inovative

Inovative

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Results

Innovation

in Project/Services

in Process

in Marketing

in Organizational level

Evaluate RD&I results

• Finantial results;

• Competitive advantages;

• Benefits achieved

•Patents, brands, copyright…

RDI process

RDI goals

RDI projects

Individual RDI project

Levels of evaluation

RDI results

Ideas

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BENEFITS

Part III

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Advantages for using CMMI serv

The implementation of processes that are related to maintenance or “very small”

projects where a service philosophy applies better

Services must now follow clear work instructions (and not a project management

methodology)

-The creation of a culture of service where the solutions that are built are

intended for customers with expectations and needs in terms of service levels

This internal awareness provides a better focus on the usability aspects and

nonfunctional requirements

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Advantages for using CMMI serv

-The importance of a systematic feedback from the services to the development

teams provide insight about the utilization and errors in place (incident, problem and

service level management, measurement and analysis)

“Customers want more attention, more appreciation and more recognition when

making their purchases with you, not less. Customer service quality is simply essential.

Now we have a more clear continuous improvement of our services”, Vasco Ferreira – CEO Ambisig

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Advantages to the client

- Services are a continuous source of income (example contract for maintenance)

• a Project has a finishing date and a total cost

• services have “no end date”

-To keep clients fidelity the service has to be well structured

• the more efficient the bigger profit you have

With Services area more structured -> revenue is higher and more

constant

=

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CHALLENGES

Part IV

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Challenges of Multimodel use

DEV5 + SRV2 + RDI

• Manage the risk level of both model implementations

• Integrate the new models with the existing ones in the organization

• Manage models that cover different areas of the organization

• Distinguish between small improvement and innovation

• Integrate the NP 4457 and CMMI with the existing Ambisig’s quality

models

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Success Factors

• Organization strong process framework, definition and culture

• Detailed planning and very strict follow-up

• Strong change management process

• Strong sponsorship and organization involvement

• Tools integration and development in order to fulfill the existing

models

• Starting point of current processes and development from there

• External contribution, overall expertise, dedication and apolitical

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CONCLUSIONS

Parte V

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Conclusions for

of this multimodel combination

Users of CMMI dev … by using CMMI serv:

Companies that already have processes in place in line with CMMI for Development

have the cost for this new direction greatly reduced - specially for CMMI SRV

ML2

Adding NP4457 innovation model allows us to go to a new level services and

products innovation – allowing the company to reinvent it self in order to survive and

compete in turbulent times, always knowing their RD&I ROI

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Conclusions

• Benefits adding Services :

• Services became more clear and accountable

• More sources of income (new services arise)

• Customer recognizes easier the added value of services

• The company started to value more services itself, structuring then to help

keeping client “fidelity”

• The more efficient services, the higher is the profit

• Service culture can improve: company, the service department, the relation with

clients … as well as the income/profit

• Benefits from adding Innovation models:

• Continuous Innovation is the final throttle to speed up innovation

– Guaranty continuous innovation Independently of where you are in the

organization …

– … one of the most important thing is to build a cultural of organization

wide focused on innovation ($)

•

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Results

• CMMI brought improvements on the cost, schedule and quality areas

• NP 4457 introduced a process to search and introduce innovation – all

across the organization

• The implementation of multimodel improved knowledge share in the

organization – and growth in maturity/capacity

• The tools have been improved and brought improvements on the

productivity of the organization

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Advantages this Multimodel approach

• Time and effort spent in multimodel implementation is smaller if made

gradually on different areas

• Less disruptive moments in the organization giving more time for

consolidation

• OPP features of level 5 reinforce with processes for continuously

generating new ideas and innovation (RD&I)

• Innovative approach to organization’s change initiatives

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Conclusions

• It is highly recommended that your organization moves into multimodel

implementation approach, if you have the needed resources have to be taken into

account on taking this decision.

• The NP 4457 promotes the innovation in a result oriented way – allowing

improvement in both services and development

• The implementation of these models makes innovation better and deeply treated

by using a ideas and innovation management processes

• The effort spent by both Ambisig and Strongstep is now paying off both

internally and externally – new projects, more revenue and helping

internationalization (Example: European Space Agency)

• Ambisig moved deeper in the process improvement road with CMMI level 5 for

development and CMMI level 2 for services, with a new vision on innovative process

implementation (NP4457).

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Some of Strongstep references

from Portugal, USA, India and Angola

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Contact

Strongstep - Innovation in software quality Web: www.strongstep.pt

Pedro Castro Henriques: pedroch@strongstep.pt

Margarida Gonçalves: margarida.goncalves@strongstep.pt

Mobile: + 351 91 952 44 50

Telefone: + 351 22 030 15 85

AMBISIG, SA Web: www.ambisig.pt

Silvia Rodrigues: srodrigues@ambisig.pt

Mobile: +351919242067

Phone: +351213920950