The center of excellence as a model for functional and testing enterprise service delivery

1 ©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

The center of excellence as a model for functional and testing enterprise service deliveryPhil RuthDeloitte Consulting LLP

Shawn Snyder Deloitte Consulting LLP

Michael Van BovenDeloitte Consulting LLP

HP Software Universe 2010

CoE’s as a Model for Functional & Testing Enterprise Service Delivery

Phil Ruth, Shawn Snyder and Michael Van Boven, Deloitte Consulting LLP

June 2010

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Phil is a Director in the Technology practice with over fifteen years of IT

delivery leadership. His experience is focused on large scale systems

implementation including strategic planning, enterprise architecture and

application development services, electronic commerce, and multi-channel

enterprise services and end-to-end testing. Phil has extensive experience

across health care/ life sciences, communications/media, and public sector

industries. Phil leads Deloitte‘s technology testing services

Introductions

Phil Ruth

Director

Global Testing Practice (GTP) Lead

([email protected])

Photo

Michael is a Senior Manager in Deloitte‘s Technology practice and has over

9 years of experience in managing large, complex system integration

engagements and over 4 years of testing focused experience. Michael‘s

extensive testing experience includes: conducting testing assessments,

designing test strategies, managing end to end complex Test Program

efforts, and establishing comprehensive Testing Centers of Excellence

(COE) for large clients in the Telecommunications/Media and Financial

Services industries. Outside of current client and project delivery

commitments, Michael is currently serving as the Operational lead for

Deloitte‘s Global Testing Practice.

Michael Van Boven

Senior Manager

Global Testing Practice (GTP)

Operations Lead

([email protected])

Shawn is a Senior Manager in Deloitte‘s Technology practice and had over

twelve years of management consulting experience. Shawn specializes in

large-scale program management and enterprise business transformations

for Fortune 500 health care and financial services organizations. Shawn has

significant experience with process design, business requirements and

business case development. In addition to client commitments, Shawn is

currently serving as the Operational lead for Deloitte‘s Functional Testing

Practice.

Shawn Snyder

Senior Manager

Global Functional Practice

Operations Lead

([email protected])

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CoE and Enterprise Service Delivery Landscape - Connecting the Dots

Market landscape determines desired Business Capabilities that set the organization’s priorities and drive the

launch of specific programs/projects. Centers of Excellence are ‘competency’ driven and focused on supporting

projects through delivery of specific services to the organization.

…deliver

desired

capabilities…

Desired Business Capabilities

Define the organizational landscape

...drive

priorities

and

planning…

… supports projects by

consistent service

delivery…

Market Landscape : Budgetary Pressures , Quality and Reliability Expectations, Complex Business Solutions, Reduced time to market

Must reduce time to build solutions Must effectively manage diverse

teamsMust innovatively maximize utilization

…determine business capabilities…

Programs & Projects

DesignInitiation Construction Deployment

Enterprise Service Delivery Competencies

Priority Competencies

• Requirements Engineering

• Architecture & Data

• QA/Testing

• Service Integration

• Infrastructure

• Program Management

• IT Security & Controls

Centers of Excellence

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Center of Excellence Marketplace Perspectives, Trends & Drivers

• Most Fortune 500 organizations have some notion

of a Center of Excellence, even those companies

that do not use the term ―CoE‖ – expertise is not

evenly dispersed across any organization

• Healthcare, Utilities, Financial Services and Public

Sector industries are currently leading the way in

terms of adoption CoE Structures

• Forrester Research had over 156 Fortune 500

corporations respond to it‘s 2008 IT Center of

Excellence survey to participate in evaluating and

reviewing the latest Industry CoE Practices and

Trends – indicating a large industry focus on

implementation of CoEs

• Larger organizations (more than 5,000 employees)

are more likely to use CoEs than smaller

organizations, and very large organizations (more

than 20,000 employees) were more likely than

average to have centralized, shared-service CoEs.

• Globalization, cost containment and specialization

are three of the most important drivers for the

need to establish CoE structures within the

marketplace today

Source: Forrester October 24, 2008 ―Current

Practices For IT Centers Of Excellence (CoEs)

Most Common Types of CoEs

Application Areas

New Technologies

Business Process

Technical Infrastructure

Specialized Tools/Systems

Legacy Systems

Other

CoEs are widely being utilized in the marketplace within organizations establishing new, specialized,

and infrastructure technologies

Selected CoE Operational Model

Centralized, Shared Service Group

Best Practice Sharing Group

Virtual Group

Other

Don‘t Know

Source: Forrester October 24, 2008 ―Current

Practices For IT Centers Of Excellence (CoEs)

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Introducing Deloitte’s Center of Excellence (CoE) Framework

Service Provider (Manager) Model – a

centralized organization provides solution

development and implementation as a service

that is delivered to the entire enterprise. All

development staff are managed in a centralized

organization and are deployed across projects

and business units as required. Staff forecasting,

growth, and external augmentation is completed

on an aggregate basis.

Oversight (Architect) Model – in addition to the

above, a centralized organization manages staff

that executes planning and analysis work for

projects, assuring consistent application of

methods and tools, and hands development off to

LOB IT-based delivery resources

Repository Model – a centralized organization

maintains development standards,

methodologies, and best practice repositories,

but all aspects of delivery, including staff

planning, growth, and augmentation, is owned by

each LOB IT organization

Competencies

Represents the different

skills/ competencies the

CoE is focused on.Organizational Model

Represents the various levels of

responsibility and centralization

of the CoE.

Deg

ree o

f C

en

tralizati

on

Centralized

We have established a flexible Center Excellence (CoE) framework that can be used for major functional disciplines

(e.g. Testing, Requirements, Project Management) and can be modeled to support the degree of centralization

desired.

Federated Based on our experience, many companies have started with one organizational model and then

have moved to a different model as the organization has matured and becomes fully adopted

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Functional & Test CoE Component Overview

Service Delivery

Develops and delivers the

managed requirements and testing

services and tested application

end-product.

Operations & Governance

Manages the business of the CoE

by establishing governance and

overall testing and quality

management capability.

Organization & Change Management

Facilitates the focus on people and

change activities towards a

successful transformation to higher

stages of maturity.

Service

Delivery

Operations &

Governance

Organization &

Change

Management

1

2

1

2

33

CoE

Developing & delivering

Services to the Organization

Managing the CoE Reaching my people & my customers

Fundamentally, the CoE is a service organization that has three critical components, all of which are required to

be successful

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Functional & Test CoE Service Delivery Component

The Competency Center in its most centralized form works across individual business units to develop and

deliver new processes and requirements.

Service Delivery

• Business Process Redesign

• Requirements Engineering Support

• Facilitation

• Analytics

• Traceability

• Functional Design and Prototyping

• Test Planning & Scenario Development

• Test Execution, Defect Tracking and

Reporting Support

• Test Environment planning,

governance and support

• 3rd Party Tool Configuration and

Maintenance (upgrades, license

management, plug-ins)

Operations and Governance

• Competency Center Governance

• Demand/Capacity Management

• Program Coordination

• Methods, Standards and

Accelerators Determination

• Involvement in IT Portfolio Planning

• Metrics and Reporting (including SLAs)

• 3rd Party Tool Vendor Management

• Best Practices and Knowledge

Management

Organization and Change Mgmt

• Executive Sponsorship and

Leadership Alignment

• Organizational Roles and Responsibilities

• Recruitment and Deployment

• Personnel / Career Development

Management and Monitoring

• Best Practices and Knowledge Management

• Knowledge Transfer

• Workforce Transition

• Support Tools Selection,

Development and Use

• Tool Configuration and Maintenance

Requirements Design Construction Testing Deployment

Business Process Design Business ReadinessProject

Delivery

Lifecycle

Service Delivered Across

Service

Delivery

PMO

OperationsOrganization

& Change

11

2 3CoECoE

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Functional & Test CoE Operations & Governance Component

Service Delivery



• Facilitation

• Analytics

• Traceability




Reporting Support
















Management












Development and Use




Delivery

Lifecycle




Service

Delivery

PMO


& Change

1

22 3CoECoE

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Functional & Test CoE Organization & Change Management Component



Service Delivery



• Facilitation

• Analytics

• Traceability




Reporting Support
















Management












Development and Use




Delivery

Lifecycle


Service

Delivery

PMO


& Change

11

22 33CoECoECoE

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Functional & Test CoE Implementation Lessons Learned

Focus Area Representative Challenges Key Mitigation Steps

Scope & Scale

Swiftly and cost effectively ramping up/down CoE

resources

‗Right-sizing‘ the CoE

Find a trusted supplier of experienced testing resources

Start small and expand out over time

Build with future growth in mind

Organizational

& Operational

Model

Difficult to find the ‗right‘ CoE Organizational Model

Establishing Clear ‗rules of engagement

Clearly define CoE operational and governance model

Make sure that Customers perceive value provided

Establish Metrics and Measures

People

Insufficient executive sponsorship

Staffing CoE with right skills and experience

Lack of clear career paths

Ensure active and visible support from executive sponsors

Create a career path and build rotational assignments for

personnel

Awareness &

Adoption

Parts of organization are unaware of the COE

Business units refuse to adopt CoE standards

Establish a strong organization change and communication plan

Establish individual incentives tied to success and adoption of

CoE

Funding

No one wants to pay for the common good

Capital costs and payback period associated with

building the Center of Excellence

Build a fixed cost allocation for the Center of Excellence

Base project specific costs based on usage of COE

Technology

Test Data and test scripts not viewed as a corporate

asset

Slow move to Test Automation and performance

testing capabilities

Lack of dedicated testing environments

Sooner you move to an automated test capability, the sooner you

get positive returns and focus on more critical initiatives

Invest in your testing capabilities as part of your overall Enterprise

IT capabilities

Timing Time Required to Implement the CoE Assess and address prioritize areas of need first

Pilot project quickly to show tangible benefits to organization

When it comes to implementing successful CoEs, we collected a number of key learning that that can be

leveraged to help guide CoE implementation initiatives

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Functional & Test CoE Maturity Stages

Full Service Adoption

Service Deployment

Process Deployment

Stage 5: Optimize

Stage 4: Deploy

Stage 3: Build

Centralized

Infrastructure and

Processes

Developed

Centralized

Services Built Out

Enterprise-wide

Centralized

Services

Project by Project

Manual

Stage 2: Analyze

Stage 1: Current State

80% of IT

Organizations

Project by Project

Automation and

Processes

Mature CoE

Dedicated environments

Mature asset library

Extensive test automation

Limited planning

Fragmented

environments

No formal asset library

Manual test scripts

Project based planning

Shared environments

Some asset retention

Basic test automation

Stage 3: Build

Established CoE

Mature Processes

Maturing Test

Automation

Formal Assets Library

The establishment and on-going operations of a Functional and Test CoE is a journey with a movement across

different stages of maturity

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Functional & Test CoE Implementation Approach

• Develop requirements, testing, and

support services capabilities

• Implement standard tools

• Develop service delivery modelsService

Delivery

Service

Delivery

11

Operations

/ Governance

Organization

& Change

33

Organization &

Change Mgmt

• Develop CoE operating processes

Quality & risk mgt

Demand mgt & flexible sourcing

Adoption and outcomes tracking

Financial mgt

• Select Pilot project(s)

• Develop and implement CoE organization

• Develop CoE communication & branding

approach

• Develop talent mgt approach

• Develop learning plan

• Refine organizational model based on pilot

results

• Execute brand and marketing activities – focus

on pilot successes

• Source and acquire personnel for pilot projects

• Develop long-range talent plan

• Implement and refine learning approach

• Deliver pilot project(s) using standard

processes

• Tailor tools and processes based on pilot

results

• Refine service delivery models

• Prepare to scale capabilities for roll out

• Manage CoE operations – test and refine all

key management processes

• Begin reporting adoption metrics to sponsors

• Begin demand and source management by

selecting and planning roll-out projects

• Manage financials

• Refine and scale service

delivery capabilities

• Conduct Lessons Learned

• Refine and scale operating

processes

• Refine and adapt

organization and change

processes

PMO

Operations

22

Stage 1: Analyze & Build

• Develop Charter

• Inventory existing Assets

• Conduct Gap Analysis

• Develop Charter



• Develop Charter



Service Delivery

Operations /Governance

Organization & Change

CoE Component

Analyze Define Implement

Functional & Testing CoE Build Out

Analyze Build Deploy

11

22

33

Optimize

Stage 2: Deploy Stage 3: Optimize

The initial set-up and implementation of a CoE focuses on a 3 stage process with key activities being performed

across each of the 3 major CoE components within a give stage

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Leveraging HP’s Full Suite of Tools to Deliver Functional & Test Enterprise CoEs

Product Name Summary of Value to Organizations

Center Management

for Quality Center

HP Quality Center manages and governs quality processes and automates software testing across application

environment. It arms organizations with the capabilities it needs to manage the release process and make more

informed release decisions.

Business Process

Testing

HP Business Process Testing software is an automated and manual functional testing solution for test design,

test creation, test maintenance, test execution and test data management.

Quick Test

Professional

HP QuickTest Professional software is advanced, automated testing software for building functional and

regression test suites.

It captures, verifies and replays user interactions automatically and helps testers quickly identify and report on

application effects, while providing advanced functionality for tester collaboration.

HP Quality Center HP Quality Center streamlines the quality process—from requirements management through planning,

scheduling and running tests to defect tracking—in one, browser-based software product.

Load Runner HP LoadRunner software is cost-effective software for performance validation.

Used to generate load, diagnose problems and deploy with high quality.

Performance Center

Management

HP Center Management for Performance Center is out-of-the-box software that can helps run a performance

testing Center of Excellence.

Deloitte is currently using a number of HP’s leading tools to help support our Functional and Test CoEs

CA_SCIF ST-125a

CA_SCIF ST-143a

CA_SCIF ST-134a

http://welcome.hp.com/country/us/en/welcome.html

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HP’s Center Management for Quality Center – a Closer Look

Project, resources and task management

Project & initiative visibility

Process consistency & workflow

enforcement

CoE

Quality

Center

Project management

Executive management

Quality team

Development team

Source: HP‘s CM4QC Customer Facing Deck

―Out of the Box‖ quality management as a shared Center of Excellence to provide best practices for project and resource

management

Integrate and automate the service requests and administration

tasks for the Shared Center of Excellence

Leverage Project and Portfolio Management Center 7.5 foundation

Tightly integrated with Quality Center 9.0 and 9.2

Initiate and track application and testing

projects, leveraging customizable workflow

to enforce Quality process and gates

Deloitte is currently piloting the use of HP’s Center Management for Quality Center to help manage our

Functional and Test CoE operations within our Near and Offshore Delivery Centers

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Summary of CoE Outcomes & Value Proposition

There are a number of qualitative and quantitative benefits that can be realized through the establishment of

the CoE capability

Reduce Enterprise and Delivery Costs & Increase Speed of

Delivery

• Decreased time to implement new applications or functionalities

• Cost savings in the discrete application development life cycle and for a longer

term, using better software quality overall

• Lower ongoing costs for maintaining applications

Time & Cost

Reduced Delivery and Execution Risk

• Better and more-consistent quality control processes and the resulting

confidence of the business user with IT

• Increased rigor and productivity by resources throughout the development

process, and in reporting development quality metrics and business unit

satisfaction

Risk

Increased Predictability and Effectiveness

• Repeatable and structured SDLC practices that focus on creating reusable

assets and an emphasis on reuse and collaboration

• Flexible resource sourcing based on demand

Innovation &

Simplification

Increase in Organizational Visibility

• COE participation in portfolio planning and alignment

• Focus on supporting projects in a strategic manner; not as ‗one-off solutions‘

Visibility

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The center of excellence as a model for functional and testing enterprise service delivery

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