Agile ALM is about delivery - not documentation.

3. Agile ALM is about delivery - not documentation.

4. Agenda • Why does ALM matter? • How effective are organizations using ALM? • Future state ALM practices

5. Software Drives The World… • The ability to develop, integrate and deliver software is a strategic advantage for most organizations • But unlike most strategic processes some things are missing : • Consistent processes being applied • Reporting on productivity, quality and value missing • Predictable and repeatable • Complexity grows and opportunity grows without associated maturity and capability

6. How much software development? “How will your 2009 software budget break out across the following categories?” Software development has increased by 9% Source: Forrester Business Data Services

7. Move To Open Source What are your firm’s plans to implement or expand its use of open source software in the next 12 months? Concerns with Open Source are reducing Source: Forrester Business Data Services

8. Different approaches focused on delivery are emerging... Please select the methodology that most closely reflects the development process you are currently using. Agile is even more popular with developers, followed by no software process Source: Forrester-Dr. Dobb’s 2009 Developer Technographics Survey

9. .NET and Java are used in tandem “For custom-developed applications, which development platforms does your company use?” Cross platform development is a reality (multiple responses accepted) Base: 917 platform software decision-makers at North American and European enterprises and SMBs

10. In reality many devs are multilingual “How much time do you spend writing code in the following language?” multilingual by choice multilingual by necessity Developers use the right tool to solve the right problem Base: 1298 App dev professionals Forrester – Dr. Dobbs Developer Technographics Q3 09

11. The Case for ALM • IT is fundamental to business value and competitiveness in the 21st century • Custom application development is growing in importance and value • Agile, delivery oriented methods are on the rise • Cross platform is a reality • Developers need a collection of tools The need for a consistent, flexible approach to building software that focuses on delivering business value

12. Agenda • Why does ALM matter? • How effective are organizations using ALM? • Future state ALM practices

13. ALM 1.0

14. Hidden costs of ALM 1.0

15. ALM 2.0

16. Benefits of ALM 2.0

17. Time is right for ALM 2.0+ • Artifact centric approach proving difficult to implement and manage • Cross platform requires complex integrations • Simplicity more important than features • Hand off culture replaced with colloboration

18. Change is afoot in the ALM space “Do you agree or disagree with the following statement: We do not contemplate any significant changes in our ALM toolset in the next 2-3 years” Base: 211 European application development professionals, Q4 2008 Base: 219 US application development professionals, Q1 2009 (WIP)

19. Agenda • Why does ALM matter? • How effective are organizations using ALM? • Future state ALM practices

20. Concurrent development phases build the case for ALM automation 10 9 8 7 6 5 4 3 2 1 Waterfall project milestones Deployment complete Requirements complete Design complete Development complete Testing complete J F M A M J J A S O N D Agile project milestones Parallel Design Development and Debug Iteration 11 complete Iteration 0 complete Manual process hand-offs are hard to scale!

21. Agile is useful, but it’s not sufficient Cost of an application over time “The march to stability” “Progress to routine operations” “Utility status” EOL Where Lean software can help Where Agile helps most Cost Cost of the app Time

22. What does this mean for Agile? ALM? Cost of an application over time “The march to stability” “Progress to routine operations” “Utility status” EOL Where Lean software can help Where Agile helps most Cost Automated “Lean” ALM Processes

23. Looking to Manufacturing as an Inspiration Manufacturing Sources of Waste App Dev Equivalents Too many superfluous artifacts Broken builds Too many tool transitions Rigid architectures Analysis paralysis Late discovery of defects Rising downstream labor costs Polluted SCM streams High null-release ratios Measures of effort, not results • Overproduction • Waiting (time on hand) • Unnecessary transport or conveyance • Over processing or incorrect processing • Excess inventory • Unnecessary movement • Defects • Unused employee creativity

24. Key Lean ALM delivery processes Portfolio management Production planning closed loop Project management JIT Demand Management Build and software configuration management Release management Deployment Change management Service management Change aware continuous integration Testing and quality assurance Production control closed loop

25. Closing the loop: measures that matter

26. Increase Value by Pulling demand quickly Delivering frequently Increasing visibility Collaborating rather than contracting Answering questions with metrics Reducing tool costs Reduce Waste by Reducing handoffs Eliminating shelfware Preventing errors Simplifying processes Eliminating specialized roles Automate information gathering Challenge your customers to: Focus on reducing wasteand increasing value

27. Thank you Jeffrey S. Hammond +1 617.613.6164 jhammond@forrester.com Twitter: jhammond Dave West + 1 617.613.6376 dwest@forrester.com Twitter davidjwest www.forrester.com