Euroclear - From budget estimation support to IT .... Objective The objective of the presentation is...

Euroclear IT Project AF b d t ti tFrom budget estimatproductivity monitoriMay 2010 – Galorath International's 2010 SEER User Confe

For internal use

Analysis Office (ITPAO)ti t t IT tion support to IT ngrence

Christelle Delcourt19th May 2010

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1. Objective1. Objective

The objective of the presentation is toestimation review process in EurocleaLeaders towards an independent assesupporting tool in the E2E (1) process budget:

Independent budget review of appAssessment of IT division productivitySupport to outsourcing contracts di

(1) End to End process

For internal use

o describe the evolution of the project ar projects (from support to Project essment mission) and position SEER as aiming at better controlling project

plication development projectsyiscussions

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2. Euroclear Group2. Euroclear Group

Euroclear is the world's largest provider oservices for bond, equity, derivatives and

In 2009, the total value of securities transtrillion, representing 180 million domesticclients were valued at more than EUR 20

Market owned and market governed, thsecurities depository (ICSD) Euroclear BaBelgium, Finland, France, Ireland, SwedeEMXCO, the UK fund order-routing compand reporting.

Euroclear Bank is rated AA+ by Standard

For internal use

pp

of domestic and cross-border settlement and related d fund transactions.

sactions settled by the Euroclear group was EUR 514 y g p and cross-border transactions, while assets held for

0 trillion.

he Euroclear group includes the international central nk, based in Brussels, as well as the national CSDs of

en, the Netherlands and the UK. Euroclear also owns pany, and Xtrakter owner of the TRAX trade matching

d & Poor’s and Fitch Ratings.

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2. Euroclear Group2. Euroclear Group

Euroclear employs over 4000 professionalHeadquartered in Brussels, Euroclear alsoworld.

Euroclear engages on a yearly basis a buproject software development.

Main development platforms usedThe goal is to build a single securit

For internal use

pp

ls of more than 70 nationalities. o has offices in 9 other cities around the

udget of about 200,000 mandays for

d are the mainframe and windowsties settlement platform

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3. ITPAO mission sta3. ITPAO mission sta

Mission of the IT Project Analysis Office is

ensure systematic assessment of budgprovide IT management with assessmed th f ibilit f th hi t and the feasibility of the achievement oon basis on project plans assessment,

comprehensive information to facilitate to anticipate the staffing requests.

Main method used to assess the budgetand SEER as estimation tool.

This technique is now systematically usedt t i l t lmanagement to implement a compulso

(1) Function Point Analysis ( ) y

For internal use

atementatement

to:

get estimation of the new projects,ents on the reliability of the project plans f th il tf the milestones,provide resource managers with the elaboration of the resource plans and

ts of the projects is the FPA (1) technique

d since the decision taken end 2008 by IT i d d t b d t iory independent budget review.

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4 Step1: Budget estimatio

2 years ago 1 year ago

4. Step1: Budget estimatioto Project Leaders

Until two years ago: y g

Project Leaders (PLs) provided their own estimation of effort required on a project via a bottom-up approach

SEER-SEM was implemented in Euroclear as a support tool to PL in their project estimation

The objective was to provide PLs with a methodology allowing them to « top-down » estimate effort of a project

An excel interface was built with SEER to ease parameters input

Function point counting technique was started to be Function point counting technique was started to be used without much understanding of the concepts

Initiate (BC)Initiate (Pre-BC)Feasibility study

Ad-hoc Function point calculation based on High Level Functional

Design

Main objective : support to PL Main objective : support to PL for budget estimationfor budget estimation

For internal use

n & SEER => support tool proposed

Today Future

n & SEER => support tool proposed

Low PL / IT MGT engagement: g g

« Estimation » team viewed as a « support » teamNo real enforcement of methodology vs. Estimation

rulesNo systematic usage of SEER by the Project LeadersSEER is perceived as a black box (PLs do not SEER is perceived as a black-box (PLs do not

understand concepts used nor the outcome) Roll-out effort for implementing SEER through

projects as a standard tool not empowered by IT Mgt

Post-ProjectDeployTestBuildDesign

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S 2 d i i


5. Step2: Budget estimatioindependent budget chec

As of end 2008:

ITPAO mandated by Management to perform an independent budget review

Increase the quality and the accuracy of PL estimationEnsure consistency of project budgetingEnsure consistency of project budgetingEnsure repeatable process

SEER-SEM is systematically used to provide a budget estimation based on function points (technique further mastered internally) and on parameters of the project

Function point counting technique internal knowledge buildingbuilding


Systematic Function point calculation based on High Level

Functional Design

Main objective : budget Main objective : budget estimation independent estimation independent

assessmentassessment

For internal use

S l

Today Future

n & SEER => compulsory ck

Budget independent review endorsed by IT MGT:

ITPAO becomes a compulsory check pointPLs pro-actively contact ITPAO to review their budget

estimationSEER is centrally used to support the independent budget

assessmentSEER outcome provided by ITPAO has to be submitted

with PL estimation for IT Mgt budget approval Budget estimation is used as input for identifying type of

sourcing and capacity by sourcing type that will be made available to the PL

SEER estimation made on basis of FPA performed at the i iti ti h id IT M t ith f t l l initiation phase provides IT Mgt with a comfort level as per the consistency and intelligence of the budget presented to their approval


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6. Step3: Budget estimatioproductivity

As of January 2010:y

ITPAO started to conduct Function Point counting at 3 different stages during the project life cycle

At BC : independent budget assessmentAt end DSG: monitor evolution of functionalitiesAt project end: historical DB build upAt project end: historical DB build-up

SEER-SEM usage is extended to those steps:At end DSG: with the intention to measure the

impact of functional changes on budget (in case of off-shored projects)At project end: with the intention to further target

budget estimation of future projects based on some budget estimation of future projects based on some key characteristics (calibration)Function Point counting results shared with PLs


Function point calculation based on High Level Functional Design

Main objective : budget Main objective : budget estimation independentestimation independent


For internal use

n & SEER => assessment of IT

Today Future


FPA/SEER rolled-out through project life cycle with the objective to assess development productivity: objective to assess development productivity:

FPA/SEER usage along the life cycle of the project will allow to identify patterns per project types thus allowing for a more detailed monitoring of the projects.

Post-launch, a comprehensive FPA is performed to document the main characteristics of the project builddocument the main characteristics of the project, build-up a historical database and most importantly, assess the factors of change impacting the project; input to improveour development.

Overall, data collected and analysed will allow to betteranticipate issues per project type and therefore contain/

iti t i k i b tt t l j t b d t dmitigate risks i.e. better control project budget spend.


Function point calculation based on Detailed Functional

Design

Function point calculation based on final Detailed

Functional Design

8Main objective : Main objective : productivity analysis & productivity analysis & estimation assessmentestimation assessment

Main objective : scope Main objective : scope baselining in terms of FPsbaselining in terms of FPs



6. Step3: Budget estimatioproductivity

Post-launch, a comprehensive FPA is performedto document the main characteristics of the project, build-up a historical database

Main development platform% outsourcingBusiness analysts, Designers, Developers expeFPs and SEER estimation at BC, end DSG, endR l j t t ( d E )Real project cost (mandays, Euro)Productivity index at different stagesSpeed of deliveryScope creepQuality indexyCost index

For internal use


o Today Future


d

erienced project

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7. Step4: Budget estimatiocontracts discussions

As of Q3 2010: As of Q3 2010:

FPA / SEER will also be used to validate the budget bthe outsourcers in the context of our outsourcing strate• at the initiation of the projectat the initiation of the project• at the end of the design phase.

It provides an independent benchmark and adds tra


Function point calculation based on High Level Functional Design

M i bj tiM i bj ti b d tb d tI d d t b h kI d d t b h k Main objective : Main objective : budget budget estimation independent estimation independent


Independent benchmarkIndependent benchmarkused to supportused to support

the negotiation processthe negotiation process

For internal use

n & SEER => support to outsourcing

Today Future

n & SEER => support to outsourcing

based on FP assessment provided by egy:

ansparency to the negotiation process.


Function point calculation based on Detailed Functional

Design

Function point calculation based on final Detailed

Functional Design

M i bj tiM i bj tiM i bj tiM i bj ti

Design

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Main objective : Main objective : productivity analysis & productivity analysis & estimation assessmentestimation assessment

Main objective : scope Main objective : scope baselining in terms of FPsbaselining in terms of FPs

8. Lessons learnt

SEER tool: start using 5 major parameters (simple inteGet internal FPA expertise in a central team (credibiConduct FPAs at different stages in project life cycleCollaborate closely with Methodology to get adequCollaborate closely with Methodology to get adequInvest in calibration (of FPs and of SEER)Foresee min 1 year of change management to get bCollect final data and feed them into the process (cM t f t Management enforcement

For internal use

erface) or use the tool in a central waylity of the process)

e (3 times)uate design documentationuate design documentation

business review process well integratedcontinuous improvement)

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9. Some figuresg

Estimations assessment conducted as of 2009: Estimations assessment conducted as of 2009:

About 20 FPAs performed at projects initiation phaseAverage Roadmap project size: 300 FPs (between 10SEER estimation at project initiation is generally optimSEER estimation at project initiation is generally optim

of PL estimation) Comparing with real project effort:

SEER estimation at project post launch (based on fispent for Mainframe type projects (SEER Post estimatspent for Mainframe type projects (SEER Post estimatvariability for distributed type projects

High scope variability (FPs generally increase from project end).

For internal use

e (30 to 40% development roadmap coverage)00 and 1000 FPs)

mistic vs PL estimation (variance from 10% to 30% mistic vs. PL estimation (variance from -10% to 30%

inal FP counting) seems rather close vs. actuals tion is at about 10 to 20% close to actuals); higher tion is at about 10 to 20% close to actuals); higher

10 to 50% from counting at initialisation and at

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For any further question please contact: For any further question, please contact:

Christelle DelcourtManager

IT Project Analysis Office (ITPAO)Project Delivery Services DivisionEuroclear S.A./N.V.

E-mail: [email protected] Visit us at www.euroclear.com

For internal use

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For internal use

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