By Saurabh Saxena, Country Director, Software, Hewlett Packard Enterprise India
Technology plays an important role in the idea economy, where business innovation is dependent on the software that powers the business. Speed and agility in IT are key to a competitive advantage in this modern economy, in which small startups like Uber and Airbnb with disruptive ideas are competing with well-established enterprises and industries, all on the power of an idea and software.
Yet, traditional enterprise IT struggles to deliver at the speed business demands.
You rarely hear business leaders say, “Our IT teams are extremely responsive and very fast”? IT is commonly viewed as a bottleneck to business innovation and, in many organizations, the business simply avoids IT and instead creates some form of shadow IT.
IT Governance, the Old Way
The principles and practices of DevOps creates the potential for faster delivery and higher quality. However, one of the largest sources of friction is the traditional focus on IT projects and project governance.
Given that projects can be expensive investments, limited resources force the hands of enterprises to carefully prioritize and plan which ideas and initiatives should be approved. But no matter how well-intended, this governance approach also struggles to respond to the speed and velocity required in the idea economy.
In fact, the typical portfolio-planning and project-management approach is often an underlying cause of dysfunctional IT behaviors such as excessive requirements, throw-it-over-the-wall deployments and questionable quality—none of which are pleasant.
Consider how the business approaches user stories and requirements management. In a traditional, project-driven world in which the project is a one-time opportunity, businesses often are given an exhaustive list of ‘must have’ features in their user stories.
Sadly, this introduces both technical debt and excess complexity from the very beginning. Especially, when you consider that only a fraction of those ‘must have’ requirements will ever be actually used, with recent research indicating that up to 45 percent of software features often go unused.
Consider how “project success” is typically measured. Project teams typically are evaluated on their ability to deliver on time and on budget, along with other various quality and satisfaction measures. The emphasis on schedule and cost can drive sub-optimal decisions, as deadlines and cost pressures loom.
As a result, testing is often abbreviated, as the schedule compresses. Sometimes the scope is reduced to conform to the deadline. This routinely leads to challenged releases in which the service desk is left holding the bag, which ultimately degrades trust and teamwork.
After the project is completed, the project team often redeploys to other projects, depending on demand for specific skills. The accumulated knowledge and wisdom of the team is lost and there is no further incentive to invest in automation or process improvements because the team has disbanded.
The DevOps Shift
DevOps is a very different approach that requires rethinking how work is funded and governed. Fundamentally, a DevOps team is charged with delivering small, high-quality releases, very quickly. The team embraces fast feedback to remove bottlenecks and waste and utilizes relentless automation to make tasks repeatable and efficient.
Given that the team will deliver dozens or more releases per year, it is incentivized very differently from the traditional “project” team. The DevOps team often “owns” the application in Development, Test and Production, and has a shared accountability for the value it delivers. The team reduces handoffs and delays and implement small, frequent changes in response to business demand, customer feedback and system performance.
The friction of traditional governance needs to be addressed using DevOps to enable the enterprise to thrive. One of the ways to remove the governance friction is a paradigm shift from projects as described above to products. It is vital to focus on value and business results along with employee and customer satisfaction.
The key difference is that a product is funded for the long haul, and product teams are able to deliver ongoing value and business improvements that the business can count on to meet demand.
Our customers who are exploring how to evolve the concept of the traditional project toward a longer-term product orientation. Some organizations explicitly make the change to products, and others are taking a more evolutionary approach. Regardless of the path, the need to evolve the funding model is clear.
Consider how product governance is different from projects. The product team, in partnership with the business, is funded for a sufficient period of time (year, half-year, perhaps quarter) depending on the business needs. The product team then delivers fast releases of business-driven innovation and rapidly updates the system based on feedback from continuously assessing the product.
As the team remains intact, it is able to learn and improve while also accelerating delivery. Additionally, because the product team is able to deliver quickly, the incentive to overload releases with “nice to have” features is greatly reduced.
This does not mean there won’t be projects in the future, but there will be a combination of products and projects in most large enterprises. In fact, we expect to see projects transforming to become the way new products are proposed, evaluated and conceived for business success in the idea economy.
