1. Dr. Bill Curtis Director, Consortium for IT Software Quality The Technical Debt Management Cycle: Evaluating the Costs and Risks of IT Assets

2. Technical Debt Damages Business Value 2

3. The Technical Debt Metaphor 33 Structural quality problems in production code Technical Debt Principal borrowed Interest on the debt Business Risk Liability from debt Opportunity cost Interest — continuing IT costs attributable to the violations causing technical debt, i.e, higher maintenance costs, greater resource usage, etc. Principal  cost of fixing problems remaining in the code after release that must be remediated Opportunity cost —benefits that could have been achieved had resources been put on new capability rather than retiring technical debt Liability —business costs related to outages, breaches, corrupted data, etc. Technical Debt  the future cost of defects remaining in code at release, a component of the cost of ownership

4. 4 How to Use Technical Debt Estimate of Technical Debt Calculating Cost Of Ownership Explaining IT Cost of Quality Assessing Business Risk Managing Portfolio Quality

5. CAST’s Application Intelligence Platform 5 ApplicationAnalysis Evaluation of 1200+ coding & architectural rules Application meta-data Transferability Changeability Robustness Performance Security QualityMeasurements Detected Violations Expensive operation in loop Static vs. pooled connections Complex query on big table Large indices on big table Empty CATCH block Uncontrolled data access Poor memory management Opened resource not closed SQL injection Cross-site scripting Buffer overflow Uncontrolled format string Unstructured code Misuse of inheritance Lack of comments Violated naming convention Highly coupled component Duplicated code Index modified in loop High cyclomatic complexity Language Parsers Oracle PL/SQL Sybase T-SQL SQL Server T-SQL IBM SQL/PSM C, C++, C# Pro C Cobol CICS Visual Basic VB.Net ASP.Net Java, J2EE JSP XML HTML Javascript VBScript PHP PowerBuilder Oracle Forms PeopleSoft SAP ABAP, Netweaver Tibco Business Objects Universal Analyzer for other languages

6. Technical Debt Management Cycle 6 IT Executives Application Managers Developers Set policy and quality priorities Step 1 Build/Release/ QA/AI Center Set thresholds for app quality Step 2 Measure Technical Debt Step 3 Plan reduction goals & actions Step 4 Remediate violations Step 5 Track results Step 6 Report to the business Step 7

7. 7 Step 1  Set Policy and Quality Priorities Quality Policy Corporate purpose Expected behavior Training Reporting Audit Quality Priorities Customer-facing Internal business Reliability Performance Security Maintainability Reliability Performance Security Maintainability

8. 8 Step 2  Set Thresholds for App Quality Retail Website Product information Online purchase Delivery scheduling Reliability3.5 Performance3.5 Security3.9 Maintainability2.5 Reliability3.8 Performance3.9 Security2.5 Maintainability3.0 Reliability3.5 Performance3.0 Security3.9 Maintainability2.5

9. Step 3  Measure Technical Debt

10. 10 Step 4  Plan Quality Goals & Actions Score Quality Score Target by Release

11. 11 Step 5  Remediate Violations

12. Portfolio QA Data Repository App Management 12 Step 6  Track Results Performance Efficiency AppDev Exec

13. Step 7  Report to the Business 13 Resilience Efficiency Security Transferability Changeability Quality Category Outages, slow recovery Degraded response Breaches, Theft Lengthy comprehension Excessive effort Operational problems Availability Work efficiency Data protection IT productivity Delivery speed Output Measure Technical debt

14. Reducing Technical Debt Is Imperative 14