Transcript SEER Estimation Solutions

RMA - Budgeting of IT-projects. Standards and
best practices for cost and schedule planning.
Parametric Success Stories
Copyright Galorath Incorporated 2013
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© 2013 Copyright Galorath Incorporated
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Parametric Solutions from Galorath
Estimation of Software
Development, Enhancement,
COTS implementation
and also Maintenance projects
Estimation of IT infrastructure,
SW/HW support
COTS implementation projects
Independently
Or
linked together
© 2013 Copyright Galorath Incorporated
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SEER is trusted by…
© 2012 Copyright Galorath Incorporated
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Parametric Success Stories
The Problem
•
U.S. Internal Revenue Service (IRS)
• The IT environment consists of 535 systems consuming over $2B (USD)
annually and employing about 7,500 people—very heavy reliance on IT
to fulfill its mission.
•
The Trigger
• Initially asked Galorath to support them in understanding the total cost
of their IT budget
• Galorath estimation showed that the total portfolio cost was significantly
higher than the available IT budget
• This was the first time that the IRS had a portfolio view and not just a
project view
• Together Galorath and the IRS developed a process to prioritise the
portfolio and reduced the number of projects from 70 to less than 35.
• All prioritised projects delivered within the total IT budget
© 2013 Copyright Galorath Incorporated
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Parametric Success Stories
The Solution
•
IRS’ Portfolio Planning, Estimation Program Office (EPO)
• Each year, EPO estimates over 120 investments worth about $6B (USD)
TCO.
• Speed, credibility, and transparency of resource estimates is of paramount
importance.
• Staffed by 10 senior people with an average career length of about 18
years.
• Extensive use and acceptance of SEER for Software and SEER for IT.
•
Creation of Resource Catalogs
• Resource catalogs are relatively small portions of
IT projects
• Each catalog has several size increments, such as
T-shirt sizing (S, M, L)
• Cover the complete lifecycle and labour roles
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Parametric Success Stories
The Solution
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Parametric Success Stories
The Benefits
• Resource catalogs, stored as SEER IT scenarios, enable very quick,
consistent, and defensible development of full life cycle estimates—
increased credibility
• Scenarios may be configured with options for the user to select which
elements to include, making the estimation process simpler and quicker
• Tracking and trend analysis of size increments enables better
understanding of efficiency gains
• Predefine mechanism to structure on-going estimation process
improvement
• Provides a mechanism for IT service providers take “ownership” of their
portion of resource estimates—reduces overall effort, cost, and lead-times
for estimate delivery
© 2013 Copyright Galorath Incorporated
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Parametric Success Stories
The Problem
•
An IT organisation growing ever more complex..
•
$40m+ of development spend; 150+ distinct projects
•
300 applications; 1000 European IT staff; 6 distinct EU locations +
US/India
•
Going global: Managers now had responsibility for multiple regions
•
Going specialized: Individuals had more specific, less general roles:• Consultancy (the interface to the business customers)
• Operations (Hardware and application support)
• Application Development
•
The Trigger
•
A history of erratic cost estimation - both overruns and under-runs:
•
Most processes were manual and relied on scarce SME’s & Excel
spreadsheets
•
Estimates often overlooked some of the less obvious but mandatory
project elements – Architecture, Hardware, QA/QC, handover to
operations etc.
•
We were unable to mitigate risk by comparing and considering fixedpriced vendor engagements.
© 2013 Copyright Galorath Incorporated
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Parametric Success Stories
The Solution
•
We set up a mission:
1) To implement repeatable, consistent and comparable estimation techniques.
2) To introduce a single process, across software and hardware globally, for
estimation services.
•
We then communicated it. Simply. To the business from BA’s/PM’s
to the IT Board
Business Needs
•
•
A global organisation needs globally consistent processes just to function
It enables us to meet our Board commitments: Revenue, Quality, Sourcing
Strategy
Local Team Benefits
•
•
•
•
Less reliance on SME’s = reduced cost and increased throughput
Better estimates reduce risk and increases funding availability
Assumptions are documented and consistent amongst teams
Created a Global IT Estimation Service
•
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Combining Hardware and Software estimates into one service
Created a Global community of estimators in Europe, N America and AP
© 2013 Copyright Galorath Incorporated
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Parametric Success Stories
The Solution
Define Business Strategy
Define IT Strategy
Define Target
IT Vision and
Roadmap
Set budget
allocation
guidelines
From the “Project Apollo:
Portfolio Management
Release2 – Module 2.3
IT TCO”
Cycle Planning
Identify Ideas and
Select Opportunities
Opportunity
is created
and logged
E1
Estimation
Points
Monitor
Application
Portfolio
Program/Project Execution
E5
E2
E3
Develop Initial
Project
Business Case for is created
Candidates
Refine
Business
Case / ID
&
Assess
Prioritize
Candidate
and Planned
Program Programs to
Optimize
Prioritization
Value
And
E4ID &
Monitoring
Update Application
Asses
Implement Asset Base
Build Design and Tracking Analysis
s
Selection
KO
Rebalance
Portfolio to
Create a
Multi-Year IT
Plan
Planning Estimates (likely requested by Consultancy group or Planners)
E1 Initial estimate for budgeting. A ‘finger in the air’ view of project costs.
E1
E2 Program/project funding estimate conducted. A refined estimate, used to reserve funding for a project.
E2
E3 Program estimate used for Program approval, developed after detailed work has been completed to develop firm benE3
efits and business case (Long Lead Programs)
Project Estimates (likely requested by PM or lead BA)
E4 Project deliverables estimate completed at the end of Analysis/Elaboration, when requirements are ‘firm’
E4
E5 Estimate/Function Point count based on completed deliverables. Feeds back into knowledge base.
E5
© 2013 Copyright Galorath Incorporated
21-Jul-15
Slide 11
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Parametric Success Stories
The Benefits
•
•
Reduces the reliance of SME’s for project estimation
•
Enables the business as a whole to benefit from the experience of
each project. This leads to improved project success rates
•
Documents assumptions and allows re-use of estimates when
project scope changes
•
Estimation is a value-add activity, not a roadblock. It delivers
consistency to customers and the management team and helps
reduce risk
•
Saves time in the project estimation phase of project execution
Reduces complexity with no need to engage hw/sw personnel
seperately
© 2013 Copyright Galorath Incorporated
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Parametric Success Stories
The Problem
•
•
Wipro
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Global supplier of IT services and consulting in financial services,
retail, transportation, manufacturing, healthcare services, energy and
utilities, technology, telecom and media.
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Consisting of 145,000 employees serving over 900 clients in 57
countries.
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Net revenues for the year ended March 31, 2013 -- $7.95 billion
The Trigger
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CEO led initiative to improve market position
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Improve internal process to deliver more robust responses to
commercial RPF’s. And develop a standard approach to estimation
•
Avoid the situation of bidding unnecessarily high
•
Recent example SEER estimated 600 FTE for a bid
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Tender response made at 900 FTE
•
Lost on PRICE
•
Established with prospect that 600 FTE would have been competitive
© 2013 Copyright Galorath Incorporated
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Parametric Success Stories
The Solution
•
Provide an estimation framework for Managed Services
bids that include either Infrastructure Support, Application
Development and Support or both
•
Establish a framework to provide a structured and
repeatable answer to the question of “How many FTE are
required to execute a Managed Services bid?”
•
Create an organisational structure which allows the
business to:
• Learn from its own experiences
• Provide a structured estimation process for the Bid Architect's
• Develop estimation capabilities for the Expert and Non-Expert
user
© 2013 Copyright Galorath Incorporated
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Parametric Success Stories
The Solution
Managed
Services RFP
Productivity
Analysis
Delivery
Success
Lessons
Learnt
Infrastructure
Services
Estimation
Centre
Of
Excellent
Application
Services
Bid Response
Acceptance
Approval
SEER IT
SEER SEM
Bid Architects
© 2013 Copyright Galorath Incorporated
Finance
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Parametric Success Stories
The Benefits
•
•
Estimation can be conducted by non-estimation specialists
•
Centralised team of experts conduct productivity analysis so that
the business as a whole benefits from the experience of each
project. Leading to improved bid success rates
•
Documents assumptions and allows re-use of estimates when
project scope changes
•
Estimation is a value-add activity, not a roadblock. It delivers
consistency to the management team and helps reduce risk
•
Project estimation time is reduced
Provides an end-to-end estimation capability where the bid
response relates directly to the bid estimate
© 2013 Copyright Galorath Incorporated
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One Final Thought…
•
There are many ways to implement a parametric
estimation process
• Not ‘1 size fits all’
•
•
Return of investment is notoriously difficult to calculate
Each company is different and realises different benefits
• Savings in estimation effort
• Better portfolio planning
• Better resource planning
• Higher project delivery success
•
Galorath operate an Annual Subscription model of our
software solutions and our renewal rate is about 93%
© 2013 Copyright Galorath Incorporated
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Galorath
Contact:
Please forgive the above translation,
I used Google Translate
Steve Robinson
+44 (0) 7827 443492
+44 (0) 207 788 9042
[email protected]
www.galorath.com
Designed to Meet the Challenges of Today’s IT Projects