1. Quality and IT Service Management A Wipro Perspective

2. Agenda Customer Interests –What resonates with customers Why Should you listen to us Introduction to Quality Methodologies Applying Quality to IT Service Management –Brief Introduction and live example Reality Check –Where are our customers spending money

3. WHAT ARE OUR CUSTOMERS TELLING US

4. What are the challenges for IT today Doing more for less Doing it more predictably Doing it with more discipline

5. Key Phrases that we hear IT Factories –Repeatable, predictable Service Delivery Business IT Alignment (Integration) –As IT gets more complex, the challenge continues. …..

6. INTRODUCTION TO WIPRO QUALITY JOURNEY Been there – Done that !! (What are our learning's and experiences)

7. ISO 9001 Certification 4195 Employees CMM Level 5 5148 Employees 9934 Employees PCMM Level 5 & TL9000 9626 Employees CMMI Level 5 10500 employees 16593 Employees 26197 Employees LEAN initiated Wipros Quality Journey 2004 2003 2002 2001 2000 1998 1995 59000 Employees 2006

8. The metrics driving Wipro Customer Satisfaction trend

9. 9 Integrating Quality Frameworks No single Holy Grail – but a single flexible system Wipro is an ideal company to profile when looking at quality initiatives because of its commitment, focus and experience on companywide, comprehensive quality processes and certifications Reduced risk Improved productivity Reduced defects On-time/ on-budget delivery Better visibility ISO – basic foundations of documented systems CMM & CMMI – software engineering practices Six sigma – customer focused data driven time bound improvements Lean – for org level waste elimination & continual improvement Agile – to build in flexibility and adaptability

10. Industry Acknowledgement CMM Level - 3 CMM Level - 5 6 Sigma Methodologies for software TL- 9000 PCMM Level 5 CMMI ISO 27001 ISO 9000 1997 On the road to continuous improvement 1998 Worlds first software services company to be assessed at SEI CMM Level 5 2000 Strengthening upstream processes 2001 The best in people processes Worlds first PCMM Level 5 company Industry- specific quality standards 2003 Infused Statistical Rigor into Management Software process achievement Award from IEEE USA Orthogonal Arrays DMAIC/ DSSS+ frameworks launched SPA Award Statistical Rigor Lean 2005 Studied Toyota Manufactu ring System ) Lean Pilots Wipro Way Agile 2006 CMMI 1.2 Global Assessment at Level 5 Domain specific standards Worlds first Automotive SPICE AS9100 SW68 CMMI 1.2 Level 5 2002 Worlds first at Level 5 of CMMI ver 1.1 BS 7799 15,000+ employees trained in Six Sigma methodologies 328 certified black belts and 10 master black belts Over 700 PMI certified consultants, highest in India 33% business parameters for the Wipro CEO relate to quality Pioneers among Tier 1 Indian companies in establishing Agile capability Lower maintenance cost Increased productivity Schedule adherence Lower development cost Lower schedule overrun cost Right the first time Efficiently On time every time Phase containment Among the first few organizations in the world, to be globally certified at Level 5 of SEIs CMMI V 1.2 model released in Sep 06

11. Six Sigma and IT Service Management

12. What is Six Sigma Six Sigma is a disciplined, data-driven approach and a methodology for eliminating defects in any process -- from manufacturing to transactional and from product to service

13. Six Sigma Approach Analyze Identify causes of variation and defects Tools Cause and Effects Diagram FMEA Hypothesis Testing Scatter plot Improve Determine solutions Implement solutions to show it works Tools DOE Regression Define Define Project Scope Define Project CTQs and Team Process baseline and improvement target Tools VSM Voice of Customer Kano Analysis Recognize Identify OFIs Prioritize OFIs Tools Benchmarking and Surveys Value Stream Mapping Measure Understand measurement system Establish performance parameters Tools Pareto Charts Process Capability GR &R Type I Error Type II Error Correct Decision (1- Correct Decision (1- Control Put controls in place to maintains improvement over time Recommend the process and complete sign-off Document & Transition Tools Control charts Visual Controls Control plans 3 Case for ActionLearn about the YLearn about the XProve the SolutionSustain the SolutionIdentify & prioritize OFI

14. Applying Six Sigma to IT Sample MetricExamples Metrics Description Expected Outcome of Analysis Incident Management Metrics Trends in tickets being logged Patterns in root cause analysis First resolution rate Identify areas for prevention of incidents to reduce cost and increase Customer (end user) satisfaction. Availability Metrics End user availability statistics Application availability Alerts from monitoring tools on capacity (CPU utilization etc.) Identify commonly occurring technical outages and prevent recurrence Identify areas of under capacity or over capacity for capacity related issues Service Level Metrics Trend of Service resolution time (OLA) Operational Level Agreements and trends. Dependencies and identifying weak links Identify areas of improvement in service restoration. End to end service level improvements.

15. Brief History of Lean Lean is the search for perfection through the elimination of waste and insertion of practices that contribute to reduction in cost and schedule while improving performance of products [Lean Aerospace Initiative, MIT, WP99-01-91] Post WWII, Taiichi Ohno creates Toyota Production System (TPS) 2004, TOY cuts car lead time to 12 months vs. 24-36 for competition

16. What is Lean ? Expose & Remove Waste Unlock capacity Reduce Variability Stabilize process, level load Self-Organizing Process Visual Delivery and Self-control

17. Defects, Rework Defects Unused employee creativity Documentation/unused artifacts, code that not part of final product, Unnecessary meetings Over-processing Equipment/resource not working, Waiting for info../ work completion Waiting Partially done work, not released for further activity, Inventory Task Switching, walking, searching for info, manually done when it can be automated Motion Building the wrong thing, waiting for FTP/copy etc Transportation Extra Features, Features that no one uses Overproduction Lean categories Application to IT Patterns and solutions identified not implemented Types of Waste

18. Lean: Wipro View Philosophy, Process, People & Partners* 1.Base management decisions on a long term philosophy 2.Create process flow to surface problems 3.Use pull systems to avoid overproduction 4.Level out the workload 5.Stop when there is a quality problem 6.Standardize tasks for continuous improvement 7.Use visual control so no problems are hidden 8.Use only reliable, thoroughly tested technology 9.Go see yourself to understand thoroughly 10.Make decisions slowly by consensus; implement rapidly 11.Continuous organization learning thru Kaizen 12.Grow leaders who live the philosophy 13.Respect, develop and challenge your people and teams 14.Respect, challenge and help your suppliers WT pioneers lean in SW services Planning (2,3,4,10) Architecture (8,10) Design (2,3,9) CUT (2,3,5,6) System Test (2,3,6) UAT (2,3,6) Monitoring & Control (7,11) * Liker, J. K. (2004). Toyota way: 14 management principles from the world's greatest manufacturer. New York, McGraw-Hill

19. TYING PROCESS AND BUSINESS SERVICE MANAGEMENT

20. Adhoc Un-Documented Unpredictable Multiple Helpdesks Minimal IT Operations User Call Notification Chaotic Fight Fires Inventory Desktop Software Distribution Initiate Problem management Process Alert and Event Management Measure Component Availability (Up or Down) Reactive Maturity and Management Challenge Level 1 Level 2 Level 3 Level 4 Level 5 Proactive Analyze Trends Set Thresholds Predict Problems Measure Application Availability Automate Mature problem, Configuration, Change, Asset performance Management Process IT as Service Provider Define Services, Classes, pricing Manage Costs Guarantee SLAs Measure and report service availability Integrate processes Capacity management Service IT as Strategic Business Partner IT and Business Metrics Linkage IT / Business Collaboration Linkage improves business Processes Real-time Infrastructure Business Planning Value Tool Leverage Operational Process Engineering Service Delivery Process Engineering Service and Account Management Manage IT as Business 60% 30% Source: Forrester Research; Adapted by Wipro

21. Proactive Service Management Proactive Analyze Trends Set Thresholds Predict Problems Measure Application Availability Automate Mature problem, Configuration, Change, Asset performance Management Process Paretto Charts Lower Spec. Limit Upper Spec. Limit Control Charts

22. Delayed and Breached SLAs Business impact 82% of days P&L SLA Breaches from June 4 – 18 June 2007 APAC Failures and consequent reruns Failures and reruns, last 6 months region wise Failures and reruns, last 6 months region vise Case Study – SLA Analysis Average Daily 35 failures Globally 4651 Failures

23. 23 Codes / tables missing Unaware of changes to the script Codes moved to production without proper testing. Syntax errors in the start and predecessor scripts. Missing or deleted output file, directory or paths. Missing arguments in the pre/post processing and scripts Jobs using a wrong script to launch Out of memory errors. Environment issues with DB Engine / CPU Power Job failure due to the inability to launch Hydra reports. Frequent Incidents due to insufficient Root – Cause – Analysis (RCA) Ref. APAC Failure Report Daily SLA reporting Daily_status_update_20070621.xls About 85% issues were closed without analysis. -Assessment based on 15% sample and recurring themes in interviews 81% Issues closed without RCA 19% Issues undergone preliminary analysis Issues Closed 13 Dec 06 to 20 June 07 Total Issues Raised993 Restart as Resolution53.9% Follow up recorded for9.8% "Action needed"2.1% "Waiting for action"1.3% Paretto Analysis of Root Causes

24. Mapping the Analysis to ITIL Reasons for Business ImpactShort term resolutionAddressing ITIL ® Process ¨ Missing or deleted output file, directory or paths. ¨ Missing arguments in the pre/post processing and scripts ¨ Jobs using a wrong script to launch ¨ User authorization failure ¨ Job failure due to the inability to launch Hydra reports. X % of overall issues ¨ Define dependencies of batches on machines / files / directories / other elements ¨ Define details of parent and / or child scripts; schedule batches based on dependencies ¨ Create information repository available and update with every change implemented. ¨ Define scripting guidelines which make batches/scripts easy to maintain. Configuration management (Priority 1) ¨ Code moved to production without proper testing. ¨ Code / tables missing ¨ Unaware of changes to the script ¨ Syntax errors in the start and predecessor scripts. Y % of overall issues ¨ Leverage configuration management to understand impact of change. ¨ Ensure all changes are applied to depending scripts/files/directories ¨ Proper testing and review for each batch/script when released. ¨ Keep record of all changes for quick resolution issues due to changes and for further RCA. Change Management (priority 2) ¨ Out of memory errors. ¨ Environment issues with DB Engine / CPU Power Z % of overall issues ¨ Setup relation between load and run time at given compute size. ¨Model the capacity requirements based on instrument mix ¨ Analyze the business trends and predict compute capacity required. Capacity Management (Priority 3) Problem Management (Priority 2)

25. WHERE ARE OUR CUSTOMERS SPENDING THEIR MONEY Reality Check !!

26. Definitions: – All Processes – holistic process solutions –Transition to Support: ensuring support organization is ready to absorb new product. (Power change / release management)

27. Wipro and Compuware Partnership Baton Solution

28. The BATON Solution Vantage Service Manager IT modeling, monitoring, visualization and data integration from Business Perspective Vantage Service Manager IT modeling, monitoring, visualization and data integration from Business Perspective Proven Methodology and simplified data analysis leveraging structured methodology and extensive intellectual property Metrics Driven Operational Improvements

29. Business service Analysis, Transformation &OptimizatioN (BATON) Comprehensive solution that: - Deliver results within short time - Creates visibility from a business perspective - Metrics driven improvements Framework - Leverage powerful methodologies with minimal training