Digital Transformation Success with Value Stream Management

©2018 ConnectALL LLC
Digital Transformation
Success with Value
Stream Management
Powering your business in achieving
higher agility and delivering value at speed
Lance Knight
SVP and General Manager
ConnectALL an Orasi Company

©2018 ConnectALL LLC 2
Top 8 Statistics on Digital Transformation
Source: IDC, Progress, Accenture, CapGemini, Sloan Review, Santoku

87% of companies believe
that digital transformation
is a competitive opportunity.
Source: https://siliconvalley.center/top-8-statistics-on-digital-transformation/

52% of executives say, “a lack of familiarity with
technology” as a barrier to digital transformation.
When asked, survey respondents rated
“current IT systems” as the third biggest obstacle to
achieving digital transformation.
Source: https://siliconvalley.center/top-8-statistics-on-digital-transformation/

For a Company to be Successful in a Digital
Transformation
They must first transform the
IT operation to support
Hyper Speed Change
The best companies are reinventing
themselves with Software and Lean
to become Software Product companies
at the sometime

Successful Companies Embrace
Successful companies are using old-age tool to help improve
time to market and react to volatility.
Lean processes that have their roots in creating manufacturing
efficiency. Tools that can also make IT systems and processes
more predictable. Tools like:
VALUE STREAM MANAGEMENT
SYSTEMS THINKING

Let look at a real-world example

with a big white board meeting
This is the system for software delivery
Work
Intake
Code in
Production

List all the Apps
This is the system for software delivery
Work
Intake
Code in
Production

There has been a
Software-Tools
Explosion

What are the Inputs and Outputs?
In a software development system, the inputs and
outputs are artifacts like requirements, defects,
specifications, tasks, and others that are usually
managed by a tool like Jira.

Let’s talk about
Systems Thinking

What is a System?
Simply put, a system is a set of
elements that take inputs through
a phased transition to emergence
of an output.

A Simple System
Example
The clothes dryer at home

Phase transition
Dry Clothes
Cycle Time
Emergence
Wet clothes
Cold Air Electricity
Clothes dryer as
Black Box System

Basic elements:
Heater
Drum
Electric motor
Fan
Clothing Dryer
Elements

Clothes Dryer Elements Relationships
& Feedback Loops
Interference:
The clothes produce lint and cause a
blockage in the exhaust.
Potential Bottleneck/Constraints:
Synergies:
Electric motor runs the fan and drum.
Dependency:

Let’s apply this to our
understanding at the example

First let’s look at the input and output
Request for
the business
Software
In production
Defect for
Customer Service
Phase Transition
Cycle Time

PMO
DEV
QA
OPS
Requirements
Defect
User Story
Defect
Deployment
Package
Release
Package
Working
Software
Request for
the Business
Defect for
Customer
Service
What are the Systems Elements?

PMO
DEV
QA
OPS
What is the feedback loop?
Request for
the Business
Cycle Time
Requirements
Defect
User Story
Defect
Deployment
Package
Release
Package
Defect for
Customer
Service
z
Cycle Time Cycle Time Cycle Time Cycle Time
Working
Software

There is a lot more to Systems Thinking
and Systems Theory
Systems Thinking and
Systems Theory

Let’s talk about
Value Stream Management and
Lean Principles

Lean Thinking
Identify Value
Map the Value Stream
Create Flow
Establish Pull
Seek Perfection
5 Principles
Over the 20 years IT has been adopting the principles

Waste Reduction

Create Flow
Value Stream Metric
• WIP Limit
• Cycle Time
• Wait time lead time
• Kanban
• Pull versus push

What is Value Stream Management?
It is simply a sequence of steps required to
produce value for the final consumer of a
service or product.

Four Parts to Value Stream Management
• Value Stream Mapping
• Value Stream Design
• Value Stream Planning

Value Stream Mapping
Value stream mapping is
lean enterprise technique
used to document, analyze
and improve the flow of
information or materials
required to produce a product
or service for a customer.
Present state Value Stream noted delays
Cycle Time 578 days
Value added time 188days
No Value added time 390days
Use Value Stream Mapping to record the current process
• Record All of the steps
• Estimate the time each step takes
• Estimate the time between steps

Let’s apply this understanding at
the example

Value Stream
PMO
Packages are common artifacts like requirements. user stories, features, defects
DEV
QA
OPS
Work
Package
Test
Package
Release
Package
Cycle Time
Cycle Time Cycle Time
Cycle Time
Cycle Time
Wait Time Wait Time Wait Time
60 Days 30 Days 30 Days 30 Days10 Days 20 Days 45 Days
Plan view
Tools Jira Silk ServiceNow

Value Stream with Feedback Loop
PMO
DEV
QA
OPS
Release certification Defect 2 Days
Defect to Dev Defect 2 Days
Cycle Time Cycle Time Cycle TimeCycle Time
Environment request ServiceNow tickets
2 Days
Environment request ServiceNow tickets 2 Days
Environment request ServiceNow tickets
2 Days
Just to moving
artifact around

What can we change? Start with Why to ask Why
WHY is there a 45-day wait for QA to OPTs?
WHY do the Release Certification issues/defects
go back to the PMO?
WHY does it take two days to move defects from
QA to Dev?
WHY does it take 14 days to get an environment
for Dev and Testing?
Working with the map - find areas of improvement:
Create a New Map with the Improvements Done
Include tool Integration and hybrid to reduce
No Value-added time
Value Stream Design and Planning

What are some of things we
could do to improve velocity?
• We could reduce batch sizes from the PMO to improve flow
• Implement a QA automation and release tool to reduce wait time
• Integration tool with a integration platform to Amplify
feedback loops
• Remove No Value added time 390days with integration

Remove No Value added time by
integration the tools and artifacts

ConnectALL Value Stream Integration
• Unifies the Value Stream Process
• Eliminates time and errors between Process Steps
• Unifies teams
• Creates a Culture of Cooperation
ConnectALL Value Stream Metric
ConnectALL: A Hybrid Integration Platform

You can use this process to plan
other parts of your
Digital Transformation

• We can use these principles to guide our digital transformation
• Helps to create for Digital Transformation Roadmap / Technology Road
• Helps you improve you time to market with your digital offering
• Give better visibility in software development and IT system
• Make you software development and It system more Predictable
• Removing Waste will help you with Hyper Speed Change
Benefits of this approach

Thank You!
www.connectall.com
22
Lance Knight
SVP and General Manager
ConnectALL an Orasi Company

Digital Transformation Success with Value Stream Management

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