Dr. Richard FrostGlobal Director, Systems Development and

Program Management

Driving Global IT Performance with the CMMI for Acquisition

November 18 2008Rich.Frost@gm.com

1.1. IT Executives must continuously drive IT Executives must continuously drive Innovation, Efficiency, and Security in their Innovation, Efficiency, and Security in their business and agencybusiness and agency

2.2. IT Executives must consciously manage the IT Executives must consciously manage the balance of their internal staff and supplier balance of their internal staff and supplier sourcing sourcing

3.3. GM drives innovation and performance with GM drives innovation and performance with and Integrated processes based on the and Integrated processes based on the CMMI-ACQCMMI-ACQ

GM builds “Gotta-have” Cars and TrucksGM builds “Gotta-have” Cars and Trucks

3

GM Continues to Drive InnovationGM Continues to Drive Innovation

4IS&S drives technology for our businessIS&S drives technology for our business

GM is a complex global businessGM is a complex global business

GM is 24x7 – we are always working somewhere.GM is 24x7 – we are always working somewhere.5

• About 260,000 employees worldwide• Over $181 billion revenue in 2007• Products sold in more than 200 countries• Sold more than 9 million cars and trucks in 2007• 181 Manufacturing facilities in 35 countries• 14,000+ dealers• $90 billion of direct materials purchased annually• Approximately 5,000 parts in each vehicle

GM IS&S: Strategic Hub for TechnologyGM IS&S: Strategic Hub for Technology

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Enable Innovation Globally Drive Simplification, Standardization and Collaboration

Evolution of IT and General MotorsEvolution of IT and General Motors

ITITSupplierSupplier

First GenerationFirst Generation1984-19961984-1996

Second GenerationSecond Generation1996-20031996-2003

Third GenerationThird Generation20032003

ITITSupplierSupplier

ITITSupplierSupplier

ITITSupplierSupplier

ITITSupplierSupplier

ITITSupplierSupplier

ITSupplier

CommonCommonEnterprise Enterprise

ManagementManagementProcessesProcesses

ITITSupplierSupplier

ITITSupplierSupplier

ITITSupplierSupplier

ITITSupplierSupplier

ITITSupplierSupplier

ITSupplier

Third Generation Goals:Third Generation Goals: Increase agilityIncrease agility Build the best partnership with the businessBuild the best partnership with the business Quickly take advantage of new technologiesQuickly take advantage of new technologies Assure the highest quality of our systems Assure the highest quality of our systems

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GM leveraged CMMI for DevelopmentGM leveraged CMMI for Development

Capability Maturity ModelCapability Maturity Model®® Integration Integration 8

Maturity Model for software development organizations Maturity Model for software development organizations Chartered by US government to address software failureChartered by US government to address software failure Developed by the Software Engineering Institute at CMU Developed by the Software Engineering Institute at CMU Provides proven best practices and growth pathProvides proven best practices and growth path Provides standard independent appraisals and ratingsProvides standard independent appraisals and ratings

IT Already Sources most of their Budget

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2007 Global IT Spend

Source: Forrester

75% of every IT dollar is spent on Acquisition

Exsiting Models Focused on the Exsiting Models Focused on the Developer – not the ‘Customer’Developer – not the ‘Customer’

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CMM, CMMI SPICE IEEE COBIT ITIL

Findings:Findings:• Enterprises were acquiring most systems• Models focused on development and operation • Firms were marketed proprietary models• Industry was looking for a ‘customer’ model

General Motors partnered with:General Motors partnered with:• Software Engineering InstituteSoftware Engineering Institute• US Department of DefenseUS Department of Defense• NASANASA• Industry Leading SuppliersIndustry Leading Suppliers

To develop a maturity model for the To develop a maturity model for the Customers of IT SourcingCustomers of IT Sourcing

Why is Acquisition Different?

BuildRequirements

Time lag – business changeTime lag – business change Limited supplier knowledgeLimited supplier knowledge Poor requirements Poor requirements

communicationcommunication Rigid requirements (whatever Rigid requirements (whatever

is in the contract)is in the contract) Limited customer contactLimited customer contact Drive to deliverable signoffDrive to deliverable signoff

RFP RFP GAPGAP

Requirements Build

In-House DevelopmentIn-House Development AcquisitionAcquisition

Inherent business knowledge Inherent business knowledge and relationshipsand relationships

Willingness to accept Willingness to accept ambiguity and riskambiguity and risk

Consistent IT project team Consistent IT project team Flexibility with schedulingFlexibility with scheduling Frequent communication Frequent communication Changes are easyChanges are easy

Supplier

CMMI for Acquisition (CMMI-ACQ)CMMI for Acquisition (CMMI-ACQ) Maturity Model for organizations that acquire systemsMaturity Model for organizations that acquire systems Leverages best practices of industry and CMMILeverages best practices of industry and CMMI Helps customers ensure that they retain core competenciesHelps customers ensure that they retain core competencies

to be successful when they source to be successful when they source Drives maturity for the combined acquirer/supplier teamDrives maturity for the combined acquirer/supplier team

12http://www.sei.cmu.edu/publications/documents/07.reports/07tr017.html

Acquirer CMMI-ACQ

CMMI-DEV

Acquirer & Supplier Maturity RequiredAcquirer & Supplier Maturity Required

13Technical &

Management Skill

Success depends maturity of suppliers and the Success depends maturity of suppliers and the customers!customers! Data reveals: customers maturity significantly affects successData reveals: customers maturity significantly affects success

Levels of the CMMILevels of the CMMI®®-ACQ-ACQ

Level 1Initial or Performing Unfocused

Level 2Managed

Basic AcquisitionProject Management

Level 3Defined

Acquisition ProcessStandardization

Level 4Quantitatively Managed

QuantitativeManagement

Level 5Optimizing

Continuous ProcessImprovement

Adapted from a chart by the Software Engineering Institute, Carnegie Mellon University

Provides a proven framework of capabilities and maturityProvides a proven framework of capabilities and maturity Provides a growth path to improveProvides a growth path to improve Capabilities build at each layer to improve resultsCapabilities build at each layer to improve results

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CMMI for AcquisitionCMMI for Acquisition

CMMI Model Framework

(CMF)

CMMI Model Framework

(CMF)

16 Project, Organizational,

and Support Process Areas

Solicitation & Supplier Agreement Development

Acquisition Requirements Development

AcquisitionTechnical Management

Agreement

Management

Acquisition

Validation

Acquisition

Verification

A structured framework to drive the capabilities required to be an effective Customer of IT

Defines maturity levels and appraisals to guide improvement

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Implementing the model required structural change and global standardization Organizational Structure Common Global Processes Common Service Agreements Continuous Improvement

Implementing CMMI-ACQ for GMImplementing CMMI-ACQ for GM

StructureStructure

ProcessesProcesses

ContractsContracts16

GM Acquisition CompetenciesGM Acquisition Competencies Requirements: Partnership and knowledge of business Architecture: Own and drive your technology and reuse Project Management: Plan, manage, and drive results Contract Management: Own the engagement terms

Project ManagementContract Management

Requirements

Architecture

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ResultsResults

CMMI Model

Framework (CMF)

Project Management

Standardized Work Processes

Enterprise & DomainIntegration

CMMI-ACQ has driven substantial benefits for GMCMMI-ACQ has driven substantial benefits for GM Strong business knowledge and partnershipStrong business knowledge and partnership Control of Strategy, Architecture, and Project ManagementControl of Strategy, Architecture, and Project Management Standardized project and supplier management - GloballyStandardized project and supplier management - Globally Less time “RFP-ing” – more time solving IT problemsLess time “RFP-ing” – more time solving IT problems Very high project delivery and successVery high project delivery and success

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Dr. Richard FrostGlobal Director

Systems Development and Program Managementrich.frost@gm.com

Thank you!Thank you!

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