Resource Regions: Western Europe

Agile development empowers teams with many benefits but also presents challenges around managing and measuring its effectiveness. The way to resolve these is Function Point Analysis.

From business impediment to business enabler, IT development has come a long way since Agile has become the favored practice. Now empowered with speed and responsiveness, organizations have left the days of slow, cumbersome, inflexible, and unresponsive practices behind in the dust. Instead they’re able to support business needs and experience better alignment with changing business environments better than ever before.

It’s easy to understand why Agile is experiencing a strong increase in adoption; as companies become more nimble to embrace the pressures they’re facing in digital transformation, IT development is able to respond aggressively to evolving competitors and exploit markets more easily. But these benefits rival the frustrations on the management side of Agile teams. The nature of Agile makes it so that IT has lost visibility and scope control while the business has lost predictability. While Agile might make teams fast and responsive, businesses don’t know when projects will be delivered, and quality of delivery is often poor.

This is due to story points. Story points is a relative and subjective effort measurement that allows teams to estimate how much work of a certain item is required compared to a certain reference story with a fixed number of points. Story points can be used as an assessment method within a team. But how do these points happen? In an Agile Scrum environment, productivity is often associated with delivered story points, often expressed in Velocity as an estimation unit. The problem is that story points are not standardized, and productivity based on story points means nothing outside of a team itself. Even within a team, story point deflation is always lurking.

Is it even possible to objectively measure productivity? This blog will show that using a ratio scale is the way to objectively measure productivity as proven by IDC Metri’s years of helping clients turn around this common challenge. Management information can be established through a ‘unit of measurement’, bringing answers to long-sought after questions such as which teams are performing well, which teams are not performing so well and when is which functionality ready at what cost?

If you want to use productivity to compare teams, departments, organizations and/or suppliers, or the market, it’s a necessity to use a standard measure of output. Even when this data is about trends on your teams, this insight creates a unified and common view.

For years IDC Metri has been offering function points to create this factual view to clients. Function point analysis was developed in the 1970s to determine the productivity of development teams when it was impossible to do this by counting lines of code. By making function point analysis independent of the technical implementation (programming language, architecture, etc.) and the development method (Waterfall, Agile, etc.), it’s also relevant today and fits into the solution that Agile teams and management need to resolve the challenges that story points create. In short function points are the de-facto standard to express the amount of functionality in a standardized size unit.

Several manual standards are available and one international ISO standard is available for automated function point analysis: ‘Automated Function Points (AFP)’. IDC Metri prefers to use automated measuring of functional size but also employs certified analysts who can manually measure when automated measuring is not possible for whatever reason.

To measure the size of the output of a team, it is also important to not only look at the added functionality but also at the changed and removed functionality. IDC Metri uses automated measuring of ‘Enhancement Function Points (EFP)’ to measure how much functionality has been added, changed and/or removed during a sprint, release or project. This gives the ‘Project Size’ in EFP, a standardized method to measure the output of a sprint or release.

While Agile is hard to measure and manage for full value, the IDC Metri proven approach of using function points transforms a team-driven, fast-moving, rapid iteration process that evaluates progress on qualitative measures into something that can be quantified and predicted.

Governments have never been in a storm like the one we’re in today, and national and local administrations need to reinvent themselves as a new era is about to start.

In these unprecedented times, European governments are aiming to improve their ability to withstand long-term volatility and uncertainty, particularly through digital trust and operational resilience programmes.

In doing so, new business models will emerge to fulfil current and future challenges:

• Allocating the Recovery and Resilience Funds to the right priorities and purposes
• Selecting the right technologies to achieve short-term efficiency and long-term resilience
• Improving the citizen and civil servant experience by making the most of technology but also implementing deep cultural and organisational transformation to enable them to reimagine service delivery

IDC conducted an in-depth survey, including 230 senior executives and directors, to investigate the strategic business priorities and key action plans for European governments. The survey looked at the technology solutions that governments are investing in to execute their strategy and action plans, and the challenges they face in their strategic technology innovation investments.

European Government Business Transformation and Technology Priorities

According to the 230 European government decision makers that IDC interviewed:

• Their main purpose is to improve citizen experience and quality of life. By keeping this in mind, they might also facilitate other short-term initiatives. This goal must become a state-of-mind for every civil servant and government decision maker.
• The main barriers to innovation are not only budget (with RFFs impacted by fast-growing inflation) but also citizen trust and outdated IT. Again, both technical and cultural changes should occur simultaneously to regain trust.
• Redesigning services and business processes around the needs of citizens are key steps to achieve resilience. Technology is a critical part of this transformation, but it should go hand in hand with innovative approaches and a greater focus on change. European governments believe that governance, risk and compliance and data management tools are critical to execute digital trust programmes. Digital sovereignty is frequently discussed by European policymakers, but our survey shows that only civil servants in some countries, such as France and Germany, are already prioritising it to increase digital trust.
• Emerging technologies such as 5G, AR/VR and edge computing are key areas of investment to imagine new ways of delivering public services.
• European governments that want to master a citizen-centric approach are adjusting their KPIs accordingly and aggregating data to build a holistic view of citizen needs and implement the once-only principle.
• Long-term challenges — especially sustainability — can’t be fought alone. Governments’ ability to work closely with an ecosystem, through data sharing and massive investments in data capabilities, will be key.

What Are the Key Components of a Disruptive Approach?

Check out the following IDC European government “PRIME” survey studies (subscription required) to learn more about how European governments are aligning technology investment to societal Purposes, strengthening Resilience, Imagining new service delivery models, Mastering citizen and employee centricity, and opening up to the Ecosystem:

• European Governments’ Purpose Programs: The Role of Technology in Improving Citizen Experience and Setting Up New KPIs
• European Government Resilience Programs: Digital Trust, Operational Redesign, and IT Architecture Transformation Must Converge to Achieve Resilience
• European Government Technology Innovation Strategies: Reimagining Public Sector Services and Operations
• What European Governments Need to Master Their Future: Citizen Experience, Employee Experience, and Environmental Sustainability Goals and Capabilities for the Future
• European Government Ecosystem Strategies: Accelerating Digital Transformation Through Ecosystem Collaboration

From Digital Sovereignty to Data Spaces

Digital and data have transformed enterprises and changed consumer experiences and society. According to the European Political Strategy Centre, “In the 21st century, those who control digital technologies are increasingly able to influence economic, societal and political outcomes. In this context, the growing ‘geopoliticisation’ of technology implies a paradigm change for the notion of strategic autonomy … the EU’s ability to defend and promote its interests — as well as its credibility as a strong foreign policy actor — is ever more a function of its cyber resilience and technology leadership.”

The European Union has responded to the challenge with the ambitious Digital Decade plan to “pursue a human-centric, sustainable vision for digital society” and increase the EU’s “strategic autonomy in tech and develop new rules and technologies to protect citizens from counterfeit products, cybertheft and disinformation.” One of the eight objectives of the 2030 Policy Programme Path to the Digital Decade is to “ensure digital sovereignty notably by a secure and accessible digital infrastructure capable of processing vast volumes of data that enables other technological developments, supporting the competitiveness of the Union’s industry.”

The programme also proposes to establish multicountry projects to develop “European common data infrastructure and services”. In combination with regulations such as GDPR, the upcoming Digital Operational Resilience Act and Data Act, the Digital Decade programmes and projects aim to put Europe at the forefront of reshaping the global data economy along two closely intertwined axes: digital sovereignty and data spaces.

How Are Digital Sovereignty and Data Spaces Paving the Way for the Data Economy in Europe and Beyond?

IDC defines digital sovereignty as the capacity for self-determination by nations, companies and individuals. Digital sovereignty is more than just data sovereignty or data localisation. It entails cloud platforms, workload software, datacentre assets, communications infrastructure, processes, and operations used to control and manage digital infrastructure, services, and access and identity.

It underpins a digital-first Europe where governments, enterprises and individuals have genuine choice to control their data and digital destinies. But digital sovereignty alone is not enough. It’s a means to achieve outcomes, such as realising the value of data and data spaces through interoperable, innovative, easy to operate and control, secure, energy efficient, regulatory compliant and resilient next-generation infrastructure and platforms.

The European Union’s European Strategy for Data sets a bold vision “to create a single European data space — a genuine single market for data, open to data from across the world — where personal as well as non-personal data, including sensitive business data, is secure and businesses also have easy access to an almost infinite amount of high-quality industrial data, boosting growth and creating value, while minimising the human carbon and environmental footprint.” That bold vision is far from accomplished. IDC’s research shows that a unified data space for Europe, let alone the globe, will not exist in the near future. There are too many digital sovereignty, governance, semantic and technical interoperability challenges to overcome. Nonetheless Europe is setting a direction of travel that other regions and countries are watching.

Private and public sector entities understand that data sharing is a critical success factor to accelerate their success in the data-driven economy. And they understand that to realise the benefits, data sharing needs to happen not only within each organisation, but also with external partners, including beyond one’s industry.

In fact, our research on the future of industry ecosystems found that over 90% of public and private sector organisations globally share data with external partners, although around 60% do it only in a limited fashion or when strictly necessary. Europe’s strategic data spaces vision is the next stage of evolution, where data sharing can happen at a greater scale and beyond industry boundaries, thanks to:

1. Federated architectures that dynamically match data demand and supply
2. Governance policies and processes where matching of demand and supply takes place thanks to trusted rules and intermediaries that enable secure, transparent and fair participation of both data users and data providers
3. The ability to provide and use data to and from the common space, either for non-profit/altruistic purposes or for-profit purposes, or both

What Can European Public Sector Leaders do to Benefit from the Digital Sovereignty-Data Spaces Twin Transition?

As for the rest of the economy, public sector organisations are trying to figure out how to leverage data to improve policymaking, service delivery and operational efficiency. Beyond EU-wide initiatives, public sector leaders across the region have a role to play to:

• Incentivise the private sector to help achieve both for profit and non-profit outcomes, while protecting personal data, intellectual property and trade secrets
• Work with the tech industry to promote the use of semantic and technical interoperability standards
• Collaborate with the tech industry and academia to foster R&D to accelerate adoption of technologies, such as secure hardware architectures, probabilistic computing and homomorphic encryption, which in the future will enable trusted data sharing even on non-trusted systems
• Invest in digital sovereign infrastructures and services, for the data spaces where digital self-determination can accelerate value realisation
• Initiate data spaces that have immediate societal benefits, such as digital citizen wallets that ensure citizens have to provide data to public administration once only, and contribute critical data that they own, to data spaces that encompass a public-private ecosystems, such as health, mobility and the built environment

Join IDC experts and public sector leaders from around Europe at the IDC Government Summit to learn more about digital sovereignty and data spaces, and to share your experiences.