Appnovation Accelerate Conference - November 18, 2015 Presenter: Andy Parkins In this fast-paced world of ever-changing technology, the transactional cost in making IT choices to get things done competitively creates technical debt. This debt left unchecked will grow like interest on a loan that is never quite repaid. Join Andy as he walks you through the journey of how the team at Appnovation helped him provide a repeatable practice to continually measure its technology debt score and the plans that's were executed to address the in-balances.

1. Andy Parkins
VP, Business Technology Getting Stuff Done
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2. Our ‘Blue Wig’ Culture

3. O2E’s Online Business Strategy
Vision
- Wow our Customers with an exceptional “world class” experience
IT Goals
- Create cross-brand reusable services
- Enable a multi-tenant technology platform
- Optimize business Intelligence innovation and opportunities at the O2E level
Strategy
- Adopt SaaS products where possible
- Use PaaS for integration
- Enable IaaS for utility-based computing
Focus
- Customer event-driven mobile friendly content

4. What business outcomes are being sought?
Why is this a priority now?
What behaviors must change and can we do it?
Does the solution answer the exam question?
Discover
Value
Viable
Implement
Assess
Questions we consistently ask
When will the benefits be seen?

5. Houston, we
have a problem

6. We undertook a Health Assessment
Options standing at the crossroads, do we?
A. Repair the cracks
B. Re-factor from the foundations
C. Invest and transform at pace
Exam Question: What is holding us back in growing Online Revenue?

7. Health Assessment Objectives
• Define the size of the problem
• Measure the Technical Debt
• Validate current IT alignment to our business ambition
• Identify the right priorities & problems to address
• Establish what’s needed to be enterprise grade

8. What is “Technical Debt” ?
“....the efficiency-tax payable when making changes to an
ever evolving IT environment ….. growing like interest on a
loan that is never quite repaid.”

9. Why do we incur “Technical Debt”?
One Human
Year
Equals
Twenty
Application Years

10. Technical Debt - not all bad!
➢ Technical debt drives us to keep learning and improving
➢ Brings disruptive chaos; an important element of digital innovation
➢ Evolution of needs - Learn fast, fail fast, win together
➢ Every feature added to a system increases our TD exposure
➢ To ignore TD is to make interest-only mortgage payments: not long term sustainable
➢ Carrying long term TD reduces productivity, efficiency, and erodes innovation confidence
- What it enables at O2E -
- How it challenges Us -

11. • Step 1: Define the influencing scenarios
• Step 2: Agree system quality measures and leverage factors
• Step 3: Undertake Sensitivity Analysis
• Step 4: Report on Tradeoffs, Impacts & Recommendations
How we calculated our Technical Debt

12. Influencing scenarios defined
• Easy to change content driven websites that allow A/B testing
• A scalable (multi-tenant) and flexible online platform
• Ability to offer a world-class and socially centric online experience
• Displaying the right information, at the right time, to the right person
• Make the technology transparent and the information relevant
• Ignite our staff’s motivation: from Code Maintainer to Content Integrator
Our Key Business Needs

13. Methodology
Measures and leverage factors agreed
1) Our key systems quality criteria
Performance, Compatibility, Usability, Reliability, Security, Maintainability, Mobility, Scalability
2) Agreed Business trade off factors to apply
- P1 – Customer experience (Revenue growth)
- P2 – Consistent internal support (Product development)
- P3 – O2E’s internal B2B systems (Cross brand Integration)
3) Set Tradeoff analysis parameters
- Prioritized quality criteria → Tradeoff Hierarchy e.g.
- Level 1 – Usability
- Level 2 – Performance, Reliability, and Maintainability
- Level 3 – Security, Compatibility, and Portability

14. Sensitivity Analysis Process (4 weeks)
Realize scenarios against System
Qualities
Collect
Scenarios
Validate Requirements &
constraints
Validate Architectural context
Identify system sensitivities, architecture candidate and
analyze IT tradeoffs
Prepare health report, discuss options and
present treatment plan
check-in
reviews
AssessmentDiagnosisPrognosisValidate
Start here

15. Technical Debt Reported - Usability First
Level Criteria Weight Weighted
Score
Ind. Score Weighted
Score
Level 1 Usability 0.5 10x.5=5 2 1
Level 2 Maintainability 0.3 10x.3=3 1 0.3
Reliability 10x.3=3 5 1.5
Performance 10x.3=3 5 1.5
Level 3 Security 0.2 10x.2=2 7 1.4
Mobility 10x.2=2 8 1.6
Compatibility 10x.2=2 1 0.2
Total 20 7.5
Technical debt of 62.5% (1-(7.5/20)), based on Usability as top criteria

16. Technical Debt Reported – Mobility First
Level Criteria Weight Max
Score
Ind. Score Weighted
Score
Level 1 Mobility 0.5 10x.5=5 8 4
Level 2 Maintainability 0.3 10x.3=3 1 0.3
Reliability 10x.3=3 5 1.5
Performance 10x.3=3 5 1.5
Level 3 Security 0.2 10x.2=2 7 1.4
Usability 10x.2=2 2 0.2
Compatibility 10x.2=2 1 0.2
Total 20 9.1
Technical debt of 54.5%(1-(9.1/20)), based on Mobility as top criteria

17. Process defined our safe debt levels
55%+ 54% - 21% > 20%
★ Performance ?
★ Compatibility ?
★ Usability ?
★ Reliability ?
★ Security ?
★ Maintainability ?
★ Mobility ?
★ Scalability ?
System Qualities

18. Health Care Recommendations Summary
Reduce Technical Debt Facilitate Innovation and Opportunity
People
Unload demand on resource pools
• Give me time to learn this
• Focus on UX and UI design
Motivate with Purpose
• Let’s play together
• Marketing + IT + Operations
Information
processes
Align on the same data song sheet
• Consistent data reference rules
• Content and data management
It’s all about event drive Information
• Turn static data to actionable information
• Use Information to gain disruptive insight
Technology
Unify & Integrate
• Lean, agile, and extensible tools
• Design for any device
Enterprise cookie-cutter platform services
• Go from order-taker to proactive doer
• Know how we can do this!
(Key Executive team messages in Green)

19. Business Impact Analysis results
Key Business
Components
As-Is status
Service Driven
Principles Established
Positive Results Seen
Consumer Facing
Websites
Multiple CMS
Systems
Enterprise reuse
practice across all sites
Speed of updating sites
with new features
Content Management
Multiple editorial
practices
One Consistent
management interface
Ease of use and frequent
content update
Data Management
Data locked in code
silos
Single source of
shared information
Turn data into business
decision making action
Integration
Multiple point-to-point
and third party APIs
Enterprise Integration
driven architecture
Reuse of web components
across consumer brands
 Keep Platform but
rebuild app layer
 Fast build of Platform by Appnovation,
O2E developed content and layout

20. Did we Hit the target?

21. Ongoing Phases to Reduce Technical Debt
Ongoing Future Phases
• Design for ANY DEVICE
• Mobile End to End booking
• Migrate other web sites to new
enterprise platform
• Single Sign On
• Central Customer Data Store
• Enterprise Service Bus
(integration layer)
• Identity Management
• Streamlined Web Analytics
and Business Intelligence
Phase 1: Complete
Health Program
to Reduce
Tech Debt
from 62.5% to
35.5%
TODAY
62.5% 35.5% 15%
TRANSITION PLAN

22. Keeping our debt under control
1. Accountable Sponsors must communicate “why” a change is needed
2. Stakeholder’s involvement and alignment on changes is now mandatory
3. We make trade-off decisions explicit with ALL stakeholder buy-in
4. We highlight areas of complexity needing implementation clean-up
5. We govern solution changes against outcomes not just ‘make it work’
6. We now focus on business qualities not just the solution functions
(Agility, Flexibility, Interoperability, Maintainability, Performance, Reliability, Security, Usability etc.)

23. What to do next – take the first steps
1. Identify the business problem most being caused by weak IT
2. Get ‘Accountable’ business parties to draft key user scenarios
3. Discuss how a shift to outcome-driven thinking will improve your IT
4. Dry run calculating your technical debt scores based on qualities
5. Evolve your IT roadmap based on known system quality debt scores
6. Walk, talk & share your IT roadmap to gain stakeholder buy in
Get ready on Monday to:
Start within the month to:

24. Thank You for listening
andy.parkins@1800gotjunk.com