Supplier’ ’s Perspective on s Perspective on Supplier CMMI- -ACQ ACQ CMMI Reflections from Supplier Reflections from Supplier’ ’s perspective s perspective “Adapting CMMI for Acquisition Organizations: A Preliminary Repor Adapting CMMI for Acquisition Organizations: A Preliminary Report t” ” “ Kathryn Dodson, EDS (kathryn.dodson@eds.com) Kathryn Dodson, EDS (kathryn.dodson@eds.com) Gowri S Ramani, Borland (gowri.ramani@borland.com) Gowri S Ramani, Borland (gowri.ramani@borland.com) 1 1
Agenda Agenda Challenges in outsourcing/acquisition Challenges in outsourcing/acquisition management management CMMI- -ACQ ACQ CMMI Model Highlights Model Highlights CMMI- -ACQ and CMMI ACQ and CMMI- -DEV DEV CMMI – Interfaces Interfaces – – Maturity in tandem Maturity in tandem – 2 2
Outsourcing World Outsourcing World Multiple Multiple suppliers suppliers Single Single One off One off suppliers Multi-year suppliers Multi-year services services Transaction Transaction based based maintenance maintenance development development Relationship Relationship based based Extensions Extensions 3 3
Sourcing Strategy? Sourcing Strategy? Giga survey (2003) Giga survey (2003) – No documented strategy for acquiring IT No documented strategy for acquiring IT – goods and services - - >40% >40% goods and services – IT specific strategy – IT specific strategy - - >10% >10% – Limited IT services and products Limited IT services and products - - >20% >20% – – Strategy as part of corporate sourcing Strategy as part of corporate sourcing – strategy – – 16% 16% strategy 4 4
Outcome of Outsourcing Outcome of Outsourcing Satisfaction with Current Outsourcing Satisfaction with Current Outsourcing – Very satisfied Very satisfied – – 22% 22% – – Somewhat satisfied Somewhat satisfied – – 57% 57% – – Somewhat dissatisfied Somewhat dissatisfied – – 19% 19% – – Very dissatisfied Very dissatisfied – – 2% 2% – Base: 184 IT Decision-Makers at North American Enterprises that are currently outsourcing. Source: Business Technographics November 2005 North American and European R Enterprise Software and Services Survey 5 5
Challenges Challenges • Scope definition • Monitoring and Management • Technical feasibility • Multiple suppliers • Shared and independent risk management • Impact on supplier and acquirer’s processes • Requirement for new metrics and measures • Acquirer maturity vs. supplier maturity • Relationship management 6 6
Attempts at Acquirer Maturity Path Attempts at Acquirer Maturity Path ‘Fix Fix’ ’ existing implementation of SW CMM existing implementation of SW CMM ‘ or CMMI to manage suppliers or CMMI to manage suppliers Acquirer closely monitoring supplier work Acquirer closely monitoring supplier work Supplier required to adhere to two process Supplier required to adhere to two process standards standards Undefined or constantly shifting lines of Undefined or constantly shifting lines of control and management between control and management between acquirer and supplier acquirer and supplier 7 7
CMMI for Acquisition - - Intent Intent CMMI for Acquisition Develop an acquirer specific framework Develop an acquirer specific framework Help focus on and improve areas critical to Help focus on and improve areas critical to acquirer and supplier management acquirer and supplier management Enable better management through targeted Enable better management through targeted interfaces for outsourced activities interfaces for outsourced activities Leverage existing maturity framework and Leverage existing maturity framework and industry acceptance of CMMI industry acceptance of CMMI Leverage existing SCAMPI appraisal framework Leverage existing SCAMPI appraisal framework Promote in- -tandem maturity and value for tandem maturity and value for Promote in acquirer and supplier communities acquirer and supplier communities 8 8
Development Approach Development Approach Sponsored by GM, in collaboration with SEI Sponsored by GM, in collaboration with SEI Industry wide participation in development and reviews Industry wide participation in development and reviews – Participants from SEI, DOD, other industries (e.g., banking, Participants from SEI, DOD, other industries (e.g., banking, – entertainment) entertainment) – GM and GM suppliers (EDS, HP) GM and GM suppliers (EDS, HP) – – SEI – SEI – DOD, NASA and industry representatives – DOD, NASA and industry representatives – NASSCOM Quality Forum nominees from India – NASSCOM Quality Forum nominees from India Based on other models and best practices Based on other models and best practices – Aligned with CMMI v1.2 Aligned with CMMI v1.2 – – CMMI CMMI- -AM, SA AM, SA- -CMM, CMMI SE/SW v1.1 CMM, CMMI SE/SW v1.1 – 9 9
Initial CMMI for Acquisition: Project Execution Acquisition Analyze & Supplier Project System Life Cycle / & Project Design Evaluation Oversight / Accept- Transition Roles Planning Solution & Selection Supplier Mgmt ance Supplier Solicitation & Supplier Acquisition Management Agreement Development Management Project Monitoring & Control Project Planning Integrated Project Management Project Management Risk Management Quantitative Project Management Standards and Acquisition Technical Solution & Organizational Process Definition Architecture Requirements Management Engineering Acquisition Verification & Acquisition Management Acquisition Requirements Development Validation Level 2 Level 3 Level 4 10 10
Initial CMMI for Acquisition: A Initial CMMI for Acquisition: A Initial CMMI for Acquisition: A Lean Model Lean Model Lean Model Solicitation & Acquisition Supplier Agreement Management Development Core Core Acquisition Acquisition Project Technical Validation Management Solution Processes Processes Acquisition Acquisition Requirements Verification Development 11 11
Acquisition Requirements Development Acquisition Requirements Development (ARD) (ARD) Clarifies Acquirer’s Responsibility for : Gathering, analyzing and validating Gathering, analyzing and validating requirements requirements – Focus on business needs and requirements Focus on business needs and requirements – – Not detailed requirements that pre Not detailed requirements that pre- -determine determine – a specific solution a specific solution Development of contractual requirements Development of contractual requirements 12 12
Acquisition Technical Solution (ATS) Acquisition Technical Solution (ATS) Clarifies Acquirer’s Responsibility for : Identification of design constraints Identification of design constraints – Establishment of acquirer Establishment of acquirer’ ’s technical s technical – standards and architecture standards and architecture Analysis and verification of supplier’ ’s s Analysis and verification of supplier detailed technical solution detailed technical solution – Design conforms to acquirer Design conforms to acquirer’ ’s technical s technical – standards, product interfaces complete standards, product interfaces complete 13 13
Solicitation and Supplier Agreement Solicitation and Supplier Agreement Development (SSAD) Development (SSAD) Clarifies Acquirer’s Responsibility for : Acquisition and sourcing strategy Acquisition and sourcing strategy – Capabilities sought, business considerations Capabilities sought, business considerations – – Type of agreement, potential suppliers Type of agreement, potential suppliers – Establishment of sound supplier Establishment of sound supplier agreements agreements – Detailed responsibilities, performance Detailed responsibilities, performance – measures, dispute resolution measures, dispute resolution 14 14
Acquisition Management (AM) vs. Acquisition Management (AM) vs. Project Monitoring and Control Project Monitoring and Control Management Based on Management Based on Management Based on Management Based on Contract and Agreement Integrated Project Plan Contract and Agreement Integrated Project Plan Part of contract Part of contract Part of ongoing project Part of ongoing project management management management management Focus on measurable Focus on measurable Focus on schedule, status, Focus on schedule, status, Service Levels Service Levels deliverables etc. deliverables etc. Dispute and issue resolution Corrective actions Dispute and issue resolution Corrective actions AM, PMC 15 15
Acquisition Verification (AVER) Acquisition Verification (AVER) Clarifies Acquirer’s Responsibility for : Acquirer’ ’s own work products s own work products Acquirer – Examples: Requirements, solicitation Examples: Requirements, solicitation – packages, integrated project plans packages, integrated project plans Supplier work products Supplier work products – Methods, standards, criteria established in Methods, standards, criteria established in – supplier agreement supplier agreement – Verification results of supplier Verification results of supplier – 16 16
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