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Quality as a value arbitrage

Quality as a value arbitrage. Anand.pillai@hcl.in. “The value decade is upon us. The only way to keep customers is to constantly figure out how to give them more for less.” - Jack Welch. Current Demands from Organizations.

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Quality as a value arbitrage

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  1. Quality as a value arbitrage Anand.pillai@hcl.in

  2. “The value decade is upon us. The only way to keep customers is to constantly figure out how to give them more for less.” - Jack Welch

  3. Current Demands from Organizations • To understand what customer wants and to provide it immediately, on demand at lower cost • To provide products & services of high quality and reliability consistently • To keep up with pace of change, Technological as well as political and social • To be one step ahead of the customer’s needs; that is to predict what the customer will want one year or ten years from now

  4. Quality – Changing Views Past Present Defects need not be revealed to customers “Known defects” need to be communicated to customer to insulate customer from surprises Quality problems are product related Quality problems are engineering and process related Quality issues considered historical event Quality issues analyzed and contribute to product and process quality improvement Increased quality increases costs Improved quality reduces total cost of ownership Quality is inward focused Quality is customer focused Quality is inward focused Quality function adds value to organization and customer

  5. The Changing World and IT’s Response Integrating people and processes for SUSTAINED COMPETITIVE ADVANTAGE Streamlined Processes Flattened Organizations Complex Technology Deliver BusinessValue SenseandRespond ControlCosts

  6. Business Differentiators PeopleThe level of accomplishmentof individualswithin theorganization ProcessesHow the organization accomplishes the goals of developing, positioning, deploying and supporting technology in alignment with their customers' business goals TechnologyThe unique, compelling business value of technology and how it is deployed to address business demands

  7. Project Management Risk Management PMP PgMP SDLC Estimation Technical Certifications Governance Process People Metrics Domain Certifications Productivity Tools Knowledge Management Code Review Tools CM Tools Release and Build tools Design tools Requirement Development/Management tool

  8. Human Skills and Technology Complexity Business Imperative : Narrowing the gap for greater business capabilities

  9. QA Transformation

  10. People - as a Differentiator Building competitive advantage through people , Christopher A. Bartlett & Sumantra Goshal.

  11. Processes – as a Differentiator Figure, from Solution Selling, Michael Bosworth

  12. Value creation and Service Innovation Create Value Customer’s Customer VZ- Value Zone CZ – Comparison Zone CZ-2 VZ-2 VZ-3 Customer’s Competition Customer Define Value Customer Business Objectives Vendor’s Business Objectives Value Quantification CZ-1 VZ-1 Vendor’s Competition Vendor Communication

  13. Objectives for Standardization PPT Transformation ensures • Consistency in implementation of all required processes • Increased usage of standard Tools • Good Customer Connect and Governance • Effective usage and analysis of metrics • Engagement level benchmarking of Performance • Standard Estimation models • Good Knowledge Management • Up skill and cross skill of resources

  14. Cost of Quality Reduces Cost of poor quality Failure Failure 44% S/w Development cost Appraisal Appraisal 56% Prevention Prevention Production Production

  15. Opportunity for Value Creation Through Quality Reducing Defects & Errors Growing Revenues Reducing Variation Quality Improving Operational Efficiency Improving Cycle Times Reducing reduced cost Improving Capability

  16. Quality Processes – Ensuring Lower TCO Engineering Cost Cost of Quality Maintenance Regular development process 51 % Reduction Post Delivery Maintenance 0 100 51 % Reduction Engineering Cost 13 % Reduction Cost of Quality Maintenance Cost Development Process with Quality guided Lower TC0 – 30 % Greater Productivity 0 100 Higher Productivity 51 % Increase Lower Cost Cost of Quality 13 % Reduction Assured In Process Quality Post Delivery Defects 51 % Reduction Reduced Maintenance

  17. Thank You! "When you're out of quality you're out of business.”

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