CMMI® FOR SERVICES: INSIGHTS AND BEYOND

-Rajesh Naik
QAI.
CMMI® for Services (SVC)
-Insights & Beyond

HMBP Colloquium
21 May 2010
Agenda

 Overview of the CMMI®-SVC

 Discussion of New PAs (Over CMMI®-DEV)

 Applicability & Opportunities

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Typical Challenges in Service Industry

 Meeting SLAs & Continuous Process Improvement

 Delivering consistent service quality

 Managing service continuity

 Managing high rate of changes/ time to market

 Adequate understanding of Service components & role in delivery

 Remain Competitive and maintain low cost

 Increase Service Quality

 Attaining centralized Model across the Organization for all the services
provided

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What is CMMI-SVC

 An extension of the CMMI model

 CMMI®-SVC is a compendium of best practices which
enables service focused organizations to effectively :
 Design the service
 Deploy and deliver the service
 Manage the service
 Has Synergies with other models like CMMI®-DEV, ITIL, ISO
20000, CobiT and ITSCM.

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What is a Service as per CMMI®-SVC

 Services are useful intangible and non-storable results delivered

through the operation of a service system.

 The process used in delivering the service typically has a immediate

impact on the service

 Services are typically short cycle and repetitive in nature

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Where does CMMI®-SVC apply

KPO
Health Care IT Infrastructure
Telecom Management

Hospitality Retail
Training
Logistics BPO Consulting
Travel
Government Services People Outsourcing
Software (Part Lifecycle)
Banking
Utilities

Insurance

and more…
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CMMI Constellations

-8-
CMMI-SVC Maturity Level

Focus on process improvement

Optimizing
5
Processes measured and controlled
Quantitatively Managed
4
Processes characterized for organization and is often
proactive
Defined
3
Projects level foundation for an organization to become an
effective service provider
Managed
2
Processes unpredictable, poorly controlled and reactive

1 Initial

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 CMMI®-SVC Process Areas
5 Organizational Innovation &
4 Quantitative Project Management
Incident Resolution and Prevention
3
Service System Development
Service System Transition
Strategic Service Management
2
Service Delivery
Service Establishment
& Delivery
Organizational Process Performance
Capacity and Availability
Management
Integrated Project Management
Risk Management
Service Continuity
Project Monitoring and Control
Project Planning
Requirements Management
Supplier Agreement Management
Project Management
Deployment Causal Analysis & Resolution
5
4
Organizational Training
3
Organizational Process Definition Decision Analysis & Resolution
Organizational Process Focus
Configuration Management
2
Process & Product QA
Measurement & Analysis
Process Management Support
10
Understanding Service Specific PAs

Capacity & Incident

Availability Resolution &
Management Prevention

16 Core
Process Areas Service
& 1 Shared PA Delivery
Service
Continuity (SAM)

PA Addition Service
System
Service
Transition
System
Development
Strategic
Service
Management

Source: SEI

11
Strategic Service Management (STSM)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on

16 Core
Process deciding what
services you should
Areas
Service
&1 Delivery
Service
Shared
Continui PA
ty (SAM)

be providing, making
them standard, and
PA Addition
Service
System
Service Transiti
System on

letting people know

Develop
ment
Strategi
c
Service
Manage

about them
ment

Source: SEI

12
Strategic Service Management (STSM)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage
ment
Preventi
on
deciding what services you should
be providing, making them
standard, and letting people
16 Core
Process
know about them
Areas
Service
&1 Delivery
Service
Shared
Continui PA
ty (SAM)

PA Addition
Service
System

What kind of taxi service?

Service Transiti
System on

•Pick up and drop? Or Time and distance hiring?

Develop
ment
Strategi
c

•Only within city limits?

Service
Manage
ment

Source: SEI
•Primarily for the airport?
•Luxury / semi-luxury / economy?
•Shared or single person hiring?
•Radio call? Hail from the street?
•Lots of luggage space? More leg room?

13
Service System Development (SSD)

Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on

16 Core
Process

making sure you have

Areas
Service
&1 Delivery
Service
Shared
Continui PA

everything you need to

ty (SAM)

deliver the service,

PA Addition
Service
System
Service Transiti
System on

including people, processes,

Develop
ment
Strategi
c
Service

consumables, and
Manage
ment

Source: SEI

equipment

14
Service System Development (SSD)

Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on

16 Core making sure you have everything you need

to deliver the service, including people,
Process
Areas
processes, consumables, and equipment
Service
&1 Delivery
Service
Shared
Continui PA
ty (SAM)

PA Addition

Design, Develop and Test the Service

Service
System
Service Transiti

•Process and system

System on
Develop
ment

•Taxis
Strategi
c
Service
Manage
ment
•Meters
Source: SEI
•Drivers
•Call numbers
•Call centre
•Service Centers
•Waiting/ parking lots
•Driver contracts
•Pricing
•Billing process
•Fuel refill system
15
Service System Transition (SST)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on

16 Core
Process
Areas
Service
&1 Delivery

getting new systems in

Service
Shared
Continui PA
ty (SAM)

PA Addition
Service
System place, changing existing
systems, retiring obsolete
Service Transiti
System on
Develop
ment
Strategi

systems, all while making

c
Service
Manage
ment

Source: SEI

sure nothing goes terribly

wrong with service

16
Service System Transition (SST)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi

getting new systems in place,

ment on

16 Core changing existing systems,

Process
Areas retiring obsolete systems, all
while making sure nothing
Service
&1 Delivery
Shared
goes terribly wrong with
Service
Continui PA
(SAM)
service
ty

PA Addition
Service
System
Service Transiti
System on
Develop
ment
Strategi
c
Service
Manage

Install and implement the service

ment

Source: SEI
•Put the designed service in action
•Carry out trials
•Smooth out initial glitches
•Make the service fully operational

17
Service Delivery (SD)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on

16 Core
Process
Areas
Service
&1 Delivery
Service
Shared
Continui PA
ty (SAM)

PA Addition
Service
System setting up agreements,
taking care of service
Service Transiti
System on
Develop
ment
Strategi

requests, and operating

c
Service
Manage
ment

Source: SEI

the service system

18
Service Delivery (SD)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on

16 Core setting up agreements, taking

care of service requests, and
Process
Areas
Service
&1

operating the service system

Delivery
Service
Shared
Continui PA
ty (SAM)

PA Addition
Service
System

Set up agreements with airport,

Service Transiti
System on

traffic police, service centers,

Develop
ment
Strategi
c

consumer forums, website

Service
Manage
ment

Source: SEI

Set up mechanisms to communicate

expected service level with users

Take bookings, cancellations, changes,

complaints,

Track the service at detailed and macro level

19
Capability & Availability Management (CAM)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on

16 Core
Process
Areas
Service
&1 Delivery
Service
Shared
Continui PA
ty (SAM)

PA Addition
Service making sure you have the
resources you need to deliver
System
Service Transiti
System on
Develop

services and that they are

ment
Strategi
c
Service

available when needed—at an

Manage
ment

Source: SEI

appropriate cost

20
Capability & Availability Management (CAM)
Capacity
& Incident
Availabil Resoluti
ity on &
Manage Preventi
ment on

making sure you have the

16 Core
Process
resources you need to deliver
Areas
&1
Service services and that they are
Service
Shared
Delivery
available when needed—at an
appropriate cost
Continui PA
ty (SAM)

PA Addition
Service
System

Do demand- supply management of drivers, taxis, call

Service Transiti
System on

center resources – at multiple planning horizons:

Develop
ment
Strategi
c
Service
Manage
ment

Source: SEI
•Long term – six months/ one year
•Medium term – month/ week
•Short term – daily/ every hour

21
Incident Resolution & Prevention (IRP)

Capacity &
Availability Incident
Manageme Resolution
nt &
Prevention

16 Core
Process
Service
Areas Delivery
& 1 Shared
Service PA (SAM)
Continuity

PA Addition
Service handling what goes wrong—
and preventing it from going
System
Service Transition
System
Developme

wrong in the first place if you

nt
Strategic
Service
Manageme

can
nt

Source: SEI

22
Incident Resolution & Prevention (IRP)

Capacity &
Availability Incident
Manageme Resolution
nt &
Prevention

16 Core handling what goes wrong—and preventing

it from going wrong in the first place if
Process
Service
Areas Delivery
& 1 Shared
Service
Continuity
PA (SAM)
you can
PA Addition
Service
System
Service Transition
System
Developme
nt
Strategic
Service
Manageme
nt

Source: SEI Handle complaints from customers, drivers

Handle incidents of accidents, breakdowns, fuel

outage, driver illnesses, traffic violations, incidents at
the airports, non-payments, theft, etc

Do RCA and put preventive action in place

23
Service Continuity Management (SCON)
Capacity
& Incident
Availabilit Resolutio
y n&
Managem Preventio
ent n

16 Core
Process
Areas Service
&1 Delivery

Service Shared

being ready to recover from a

Continuity PA (SAM)

PA Addition
Service disaster and get back to delivering
your service
System
Service Transition
System
Developm
ent
Strategic
Service
Managem
ent

Source: SEI

24
Service Continuity Management (SCON)
Capacity
& Incident being ready to recover from a
disaster and get back to
Availabilit Resolutio
y n&
Managem Preventio
ent n
delivering your service
16 Core
Process
Areas Service
&1 Delivery

Service Shared
Continuity PA (SAM)

PA Addition
Service
System
Service Transition
System
Developm
ent
Strategic
Service
Managem
ent

This could be at multiple levels. Short-term, medium

Source: SEI

term and long term:

Driver does not report, car failure, accident while

transportation

Riots, floods, strikes, fuel availability

Govt. regulation change

25
Process Performance Models in SVC
• Typically to support
– CAM – Capability & Availability Management
– SD – Service Delivery
• CAM
– Using forecasted demand, concepts of queuing, baseline performance
of various sub-processes, identifying the capacity required, that will
meet the demand and multiple goals of cycle times, pending queues,
delayed requests, requests not serviced, quality, cost and idle time
• SD
– On arrival of a new demand, re-plan the allocation and sequencing of
resources to be able optimally meet multiple goals of cycle times,
pending queues, delayed requests, requests not serviced, quality, cost
and idle time

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Production Support Example Analyze Fix Review Test ……

Expert Expert Expert Expert

Suzy
Proficient Proficient Proficient Expert
Rohit
Novice Proficient Proficient Expert
Rita
Cant Do Novice Novice Proficient
Ankit
New ticket
Queue Queue

Queue Accept/ Queue

Reject Analyze Fix Review

Queue Queue Queue

Close Monitor Delivery Regression Test

Optimize: SLA Compliance, Bad Fixes, Idle, Cost, Pending Queues

Input Data: Expected arrival rate, current sub-process performance baselines (by skill level)
Models: Simulations, based on queuing theory
What-if: We change the rules of task assignment? More tickets are expected?
We get one more person in the team? Suzy takes leave for 2 weeks?
We reduce avg. cycle-time of “regression” sub-process by 10%? - 27 -
Taxi Services Example
Report
For Log Off
Duty Register Waiting Unavailable
Taxis Taxis
Queue Report
Completion
Booking
Request

Book Report Pickup &

Queue
Assign for
Request Drop
Pickup

Optimize:Idle driving, Timely pickup / drop, Customer complaints, customer follow-ups,

Waiting/ idle time; traffic violations; Repair costs; Refusals; Cancellations; Overtime
Input Data: Expected booking rate, current values on speed, waiting time, etc
Models: Simulations, based on queuing theory
What-if: We change the rules of assignment? Bookings are expected to be different?
A route is disabled? Add credit card swipe ?
Implement speed governors in the taxis? If we add another service station in the city?
Tie-up with some more fuel stations in the city?
Add another 500 taxis?
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Value of CMMI-SVC
 Rigorous yet flexible framework

 Improved SLA compliance & delivery efficiency

 Improved customer satisfaction

 Optimized capacity utilization

 Effective change management

 Roadmap to service maturity

 Gain a marketing/competitive edge

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CMMI®- SVC and SCAMPI-A
• Separate appraisals for CMMI®- SVC – currently cannot be combined
with DEV
• LAs need SVC specific authorization
• Scoping of the DEV appraisals may be impacted (after the arrival of SVC).
Projects that may need to be “out of scope” of DEV in future could
include:
– Production support
– Short cycle maintenance projects
– Pure testing project; only coding and unit testing projects
(It was anyway difficult to demonstrate RD, PI and VAL in many such
projects)
• Current Appraisal Results data on PARS shows 8 appraisals (7 on
Continuous!); Mostly ML2/3 PAs; Services include IT and non-IT (order
fulfilment, recruitment, packaging, account management, project
management, business development, etc.)

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CMMI-SVC vs ISO 20000 vs V3

Note: PA’s marked as green may still require effort for “transition” to SVC Framework
- 31 -
 Opportunities for IT Companies

SVC Type Projects

(Maintenance, Testing,
DEVDEV
TypeType IT
Production Support,
Projects
Projects Projects
Partial Life Cycle)
IT Solutions

Our Customers
IT Organization SVC Compliant
(in the service industries)
IT Solutions
More Services Under SVC
(Staff augmentation, BPO, training, facilities, Process (SVC based)
IT support, transport, security, etc.) Consulting

Process Groups can be a part of the software projects!

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Opportunities for IT Companies

1. Use CMMI® - SVC for non-DEV parts of the software

organization –Production support, maintenance, testing, only
coding
2. Implement in other services – IT Infrastructure management,
BPO/ KPO, internal services (training, facilities, etc.)
3. Provide process consulting for your IT customers in the
services business (banking, insurance, finance, transport,
logistics, retail, training, education, government, health care,
hospitality, etc.)
4. For your customers, provide integrated IT-based solutions
that are aligned with CMMI®-SVC

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Service Industry Requires Heavy Automation

SERVICE DELIVERY
AND MANAGEMENT
PROCESS

AUTOMATION

- 34 -
Where does CMMI®-SVC apply

KPO
Health Care IT Infrastructure
Telecom Management

Hospitality Retail
Training
Logistics BPO Consulting
Travel
Government Services People Outsourcing
Software (Part Lifecycle)
Banking
Utilities and more…

Insurance

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Thank You!

Rajesh Naik
Consulting Partner
QAI India Limited (www.qaiglobal.com)

rajesh.naik@qaiglobal.com
OR
naik.rajeshnaik@gmail.com
+91 9845488767

Personal website
www.rajeshnaik.com
Blog
naikrajesh.blogspot.com

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