1 Bete Demeke Vice President, Rational Worldwide Sales

2 Agenda 1 3 Business Needs Industry Examples 2 4 Rational Strategy, Capabilities & Insights 2 Business Challenges

3 We know you’re spending a lot of money, but you’re not getting a lot of return. Business needs Businesses want to be proactive and gain control MARKET Customer Care Function Complex Software Solutions ENTERPRISE Time to Market Teaming Tools Security & Compliance Quality Safety Return on Investment Infrastructure Efficiency Productivity MARKET

4 Business challenges Most companies are consumed by reacting to challenges 1 Roger Roberts, Johnson Sikes, IT's Unmet Potential, McKinsey Quarterly, November The Standish Group, CHAOS Chronicles v12.3.9, June 30, “How do we gain control in this new world ?”  Customer Care  Function Partners Analysts Customers “I need to make functionality improvements without impacting service quality.” “Our clients want help delivering more perceived value at a lower cost of ownership.” “Only 34% of software projects are deemed successful, costing $300B annually” 2 MARKET ENTERPRISE Partners Analysts Customers “I need to efficiently manage single and multi-vendor trade-offs, as well as globally dispersed teams.” “Our clients want help minimizing effort, risk and impact when they modernize their legacy applications.” “Only 22% of executives felt that their IT and business strategy were tightly integrated.”

5 Rational strategy Requirements driven by business needs and challenges Quality Safety, Functionality, Testing, Security & Compliance Efficiency Infrastructure Efficiency/Optimization, Productivity, Tools, Teaming Business Value Return on Investment, Lower Risk/Costs, Stake Holder Satisfaction Innovation New Solution, Time to Market

6 Quality Safety, Functionality, Testing, Security and Compliance Business Value Return on Investment, Lower Risk/Costs, Stake Holder Satisfaction Innovation New Solution, Time to Market Efficiency Infrastructure Efficiency Optimization, Productivity, Tools, Teaming Rational strategy Focus areas Software Delivery as a Business Process Smarter Products and Services Software Delivery Lifecycle Management  Metrics & Monitoring  Measured Improvements  Analytics Insights  Cross Disciplines  In Market Experiments  Agility at Scale  Planning, Portfolio & Compliance  Collaborative Lifecycle Management  Design, Development & Delivery Tools

7 Rational approach and capabilities Collaborative lifecycle management Across diverse engineering disciplines & development teams Achieve “quality by design” with an integrated, automated quality management and testing process Full traceability across the lifecycle Validate requirements, architecture & design throughout the development process Modeling Quality Management Requirements Management Collaboration & Management Extend to system engineering for smarter products and services Rational Rhapsody Rational DOORS

8 Rational AppScan enables the detection and remediation of vulnerabilities Static Analysis = Whitebox Scanning source code for security issues Dynamic Analysis = Blackbox Performing security analysis of a compiled application Rational approach and capabilities Secure by design: Security testing across the software lifecycle Build Software Development Life Cycle Developers CodingQASecurityProduction Blackbox – Appscan/Appscan Enterprise ASE QuickScanAppScan QA AppScan Audit AppScan MSP Total Potential Security Issues Dynamic Analysis Static Analysis Best Coverage

9 Rational approach and capabilities IBM Rational Jazz: An open software delivery platform designed to remove software optimization barriers Existing Rational Offerings New Rational/ IBM Offerings Business Partner Offerings Compliance & Security Collaborative Lifecycle Management 3 rd -Party Jazz Capabilities Future IBM Capabilities Storage Collaboration QueryDiscovery Administration: Users, projects, process Best Practice Processes Presentation: Mashups Design & Development Business Planning & Alignment Your existing capabilities Portfolio, Product & Project Management Jazz is…  A scalable, extensible team collaboration platform  A community at Jazz.net, where you can see Jazz-based products being built  An integration architecture, enabling mashups and non-Jazz based products to participate

10 Rational approach and capabilities Enterprise modernization: Solutions to help optimize applications, people, team and infrastructure investments Revitalize Applications Empower People Unify Teams Exploit Infrastructure  Increase flexibility by revitalizing existing application portfolios  Boost productivity and accelerate innovation with modern skills  Maximize business agility by bridging organizational silos  Increase system utilization by leveraging hardware capabilities

11 11 Measure & Improve Rational capabilities Development intelligence: Key to predictable business outcomes that drive improvements “Reduced product development time by 60%, from five months to two months.” “Reduced development cost by 25%, reduced development time by a factor of 10.” “Reduced project cycle time by 76 days, completed twice the projects, and saved $3.7M.” “Achieved 30% productivity gain on global projects.” Development Cost Release Cycles Productivity Fixed and Variable Costs Process Adoption Backlog Burn-down Velocity “Achieved 51% reuse of services” “Saved more than $25 million in defects, plus $7 million a year in defect avoidance.” “Improved insight is helping managers improve predictability and mitigate business risk.” Reuse Customer Attrition Warranty and Defect Costs Rework Ratios Acceptance and Adoption Breaches

12 Rational capabilities Measured improvement: Optimizing software and systems delivery “We need to reduce cost and increase revenue in six months.” Executive ManagerPractitioner “We need to improve our software delivery processes to meet our business objectives.” Steer  Self-Check Act  Rapid Deployment Package and Services Assess  Executive Business Value Workshop  Quick Diagnostics  Health Assessment Best Practice Processes Rational Insight

13 Rational “insights” Executive Dashboard and Rational Insight Quality Management Requirement Management Project / Portfolio Management Change Management Architecture Management Quality Management Configuration Management Dashboards / Reports FM Models ETL Jobs Domain Model Data Marts Scorecards based on metrics Executive Dashboard Rational Insight Metrics Dashboards & Scorecards Metrics computed using Insight data warehouse artifacts

14 Rational “insights” Executive Dashboard: Realization of measured improvements 1.ASSESS: Where are we now? (Against standard business/operational objectives) 2.STEER: Where are we going? (Based on trending data) 3.ACT: How do we adjust course? (Suggested practices)

15 Quality Safety, Functionality, Testing, Security and Compliance Business Value Return on Investment, Lower Risk/Costs, Stake Holder Satisfaction Innovation New Solution, Time to Market Efficiency Infrastructure Efficiency Optimization, Productivity, Tools, Teaming Summary Rational strategy Software Delivery as a Business Process Smarter Products and Services Software Delivery Lifecycle Management Integrated Systems Engineering Enterprise Modernization Rational Insight

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