1. IBM Software Group ® Systems and Software Trends Walker Royce IBM Software Group

2. IBM Software Group | Rational software PROJECT DRIVEN BUSINESS DRIVENTRADITIONALCURRENT REALITY Evolving software and systems delivery Co-located teams Technology led Vendor lock-in Application silos Geographically distributed Compliance Open computing Modular systems (SOA) Right-sourcing Standards BUSINESS TRENDS Business Driven Development Enabling organizations to govern the business process of software and systems development

3. IBM Software Group | Rational software Governance: The real problem

4. IBM Software Group | Rational software The World is Flat

5. IBM Software Group | Rational software Software Governance Proprietary Not Integrated 100% Custom Ad-hoc Mix of Proprietary and Commercial Not Integrated 30% Reused Assets 70% Custom Repeatable Commercial Integrated Processes-Tools Managed and Measured Tools Complexity Process 1960s-1980s1990s-2000s2005+ Project Performance PredictableUnpredictablePredictable 70% Reused Assets 30% Custom over budget, over schedule Infrequently on budget, on schedule Frequently on budget, on schedule Collocated OJT Collocated Software Skills Distributed Systems/Software Professionals Team 10%25%-33%50% + Success Rate

6. IBM Software Group | Rational software Why do our clients need to improve?!st Increased revenues  Better quality  Differentiated products, systems or services  Earlier time to market Better Business = Revenue Cost Growth * Reduced costs through SOA, GDD, Automation  Better software economics  Smaller development teams  Faster development cycles  Rightsized processes and skills  Effective architectures and reuse Improved Governance  Better reputation  Attractiveness to customers  UL stamp  Attractiveness to workforce  “Best company award”  SOx, CMMI, ISO 9000, HIPPA, CFR11  Openness, Standards  Track record of performance

7. IBM Software Group | Rational software Four Patterns of Success  Scope management  Asset based development  Solutions need to evolve from user specifications AND user specifications need to evolve from candidate solutions. As opposed to getting all the requirements right up front.  Process management  Rightsize the process  Process and instrumentation rigor evolves from light to heavy. As opposed to the entire project’s lifecycle process should be light or heavy depending on the character of the project.  Progress management  Honest assessments  Healthy projects display a sequence of progressions and digressions. As opposed to healthy projects progress to 100% earned value with a monotonically increasing and predictable plan.  Quality management  Incremental demonstrable results  Testing needs to be a 1st class, full lifecycle activity. As opposed to a subordinate, later lifecycle activity.

8. IBM Software Group | Rational software Key Principles for Business-Driven Development