The methodologies reflected in the enclosed material, including the benchmark comparisons, are confidential and proprietary information of NewLane, LLC. and are for the internal use of addressee only. NewLane, LLC. 290 Brigham Street Hudson, MA For more information please contact: Alex Marchicelli Tel: Cell: Time to Market Process Improvement – A Case Study November 8, 2000 ©NewLane, LLC All rights reserved.

2 Introduction This case study explores the strategies used in a real-world scenario to shorten time-to-market and achieve process improvements. Background The Third largest long distance telecommunications company in the U.S. is in the process of rolling out a new architecture and set of services designed to compete for integrated digital telephony services. Creating this new service requires integrating a set of new hardware and software components that are built into the new product architecture at varying stages of the product development life cycle. This new product is comprised of a portfolio of over 200 applications, with up to 5 releases per application. Lastly, multi-vendor management of the new hardware creates additional complexities due to the dependency on a large number of vendors.

3 ©NewLane, LLC All rights reserved. Problem Definition Is Product Testing Taking Too Long, Slowing Down the Company’s ability to Go To Market Quickly? The ability to reach the market quickly is a potential source of competitive advantage Compressing the product development and implementation cycle time is a high priority In the product development and implementation process, testing is an important component of overall cycle time The company has traditionally been cautious about putting new network services onto the market and has focused on quality of service There is a perception that the company is willing to tolerate additional risk with getting the product to market more quickly, at the potential expense to quality of the product delivered The ability to reach the market quickly is a potential source of competitive advantage Compressing the product development and implementation cycle time is a high priority In the product development and implementation process, testing is an important component of overall cycle time The company has traditionally been cautious about putting new network services onto the market and has focused on quality of service There is a perception that the company is willing to tolerate additional risk with getting the product to market more quickly, at the potential expense to quality of the product delivered

4 ©NewLane, LLC All rights reserved. Project Scope Overall Project Objective Determine how to reduce testing cycle time* while preserving the quality of service delivered to customers Specific Objectives Challenge existing assumptions about testing to break paradigms Validate from external benchmarking perspectives, if testing is taking a “long” time, and identify creative approaches to testing Identify short-term process improvements that will have a positive impact on reducing cycle time

5 ©NewLane, LLC All rights reserved. Strategies Used to Solve Problem  Assertion/Hypothesis Methodology  Conducting Assessments (Process and Productivity)  Benchmarking  Establish Performance Models using “Balanced Scorecard” approach

6 ©NewLane, LLC All rights reserved. Assertion/Hypothesis Methodology  Scientific method based on proofs, quantitative and qualitative analysis  Used for Root Cause analysis History Definition A formulation of hypotheses whereby the user goes about proving the hypotheses right or wrong.  Causal analysis  Interdependency between line function’s and hypotheses

7 ©NewLane, LLC All rights reserved. Conducting Assessments Internal External  High Impact Interviews  Questionnaire  Workshops  Phone or on-site Interviews  On-Line or Questionnaire To collect quantitative data in support of or dispute the hypotheses, and to determine corrective action.

8 ©NewLane, LLC All rights reserved. Benchmarking Purpose To collect similar type data and compare it against industry norms and/or use the baselines to compare the data against its own history Tips  Make sure questions are “correctly” formulated  Avoid “leakage” of data by conducting on-site interviews  Use appropriate rating technique

9 ©NewLane, LLC All rights reserved. Performance Models using Balanced Scorecard Approach Definition A performance measurement criteria based on “four” perspectives – Customers, Learning and Growth, Internal Processes, and Financial Why BS? It enables companies to assess and continuously measure performance, and to quickly change measurement criteria based on market dynamics.

10 ©NewLane, LLC All rights reserved. Assessment & Assertion Findings Determine where the potential lies for shortening development cycle

11 ©NewLane, LLC All rights reserved. Performance Model This will lead into a set of Interrelated Performanc e Pathways

12 ©NewLane, LLC All rights reserved. Performance Pathways

13 ©NewLane, LLC All rights reserved. This will lead into the formulation of a performance Scorecard

14 ©NewLane, LLC All rights reserved. All of which results in a reduction in cycle time.