Enterprise Architecture Governance for an Enterprise Transformation Journey: The IBM Internal Case

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Material presented at the Open Group Conference in Brazil (May, 2012).

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<ul><li> 1. Enterprise Architecture Governance foran Enterprise Transformation Journey: The IBM Internal CaseMarcelo SvioIBM Industry Solutions ArchitectOpen Group Master Certified Architecthttp://www.linkedin.com/in/msavioCopyright The Open Group 2012</li></ul><p> 2. Agenda1. The IBM Transformation Journey story2. The importance of an Enterprise Architectureframework and governance in that journey3. Some lessons learnedCopyright The Open Group 2012 3. IBM at a Glance$107B Revenue, $16.3B Income 2011Operations in 172 CountriesKey Business Segments Services Research A highly inclusive workforce: Software Financing HardwareOver 425,000 employeesBusiness Model50% less than 5 years of service40% work remotely+ 100 yearsCopyright The Open Group 2012 4. The transformation journeyCentury CenturyInternational era multinational Globally Intergratedexport replicationEnterprise2021 Consistent set of processes Right skills, right place, right cost Explore the Instrumentation worldwideand interconnection Rationalize support functions for Leverage best practicesgreater efficiency Enable growth and productivity Standardize and reduce waste Radically simplify processes Optimize the whole system Governance and performance disciplineGlobal SupplyGlobal Production Global DemandManagement Optimization CaptureCopyright The Open Group 2012 5. (Back to School) The Four Operating Models Source:Copyright The Open Group 2012 6. (Back to School) Creating a Foundation for Execution Source: Copyright The Open Group 2012 7. IBM Internal Transformation Principles:Simplification, Standardization, Integration and FlexibilityOpen Infrastructure ValueIntegrationInnovationSystemsOrganizationStandardization SimplificationProcessesGlobally Integrated EnterpriseCopyright The Open Group 2012 8. IBMs Transformation Framework: A SystematicApproach for Doing The Right Things The Right WayStrategyGuided by the IBM Strategyand grounded in IBM Values ValuesTransformation Framework BusinessEnable transformation at Process Values-basedExcellenceCulture the intersection ofbusiness process, Informationtechnology and culture Technology EnablementTransformation Focus AreasSustain strength in theglobal marketplace byEnabling Growth Enabling Productivity Enabling Change focusing on areas thatenable growth, productivity,and culture changeCopyright The Open Group 2012 9. Business Process ExcellenceWhat weve done Established IBM Enterprise ProcessFramework with senior leaders named asowners business processes Why? Took an outside-in approach to addresscritical pain points focusing first on our Complex processes are key source ofclients, then partners and employeesfrustration for employees, partners andclients Launched enterprise-wide initiativespromoting broad adoption of strategic, Unit/geo-specific approaches andcommon global processesSiloed processes contribute tocomplexity and inefficiency Established agility as a key capability forcustomer-facing business processes To remain competitive, businessprocesses must respond quickly to Added continuously transform as corechanges in the business environment competency for leaders at every level of thecompany Built disciplined system to manage &amp;measure the effectiveness and efficiencyof end-to-end processesCopyright The Open Group 20129 10. Business Process Excellence How we did it Impact Focused on driving horizontal, end-to-end Process improvements contributing toprocess improvements and put seniorgrowth &amp; productivity:leaders in charge of key processes Substantial increase in productivity gain in Developed professionals with business process transformation &amp; integrated operationsprocess skills, including Lean Sigma black belts Hardware Product Management: reducing Simplified and standardized processesproduct portfolio and design complexityacross business units and geographies Reduced feature and options of systems portfolio Package-enabled business transformation, Use of labor analytics to manage technicalbased on enterprise software, provided delivery resourcesglobal template for consistent deployment Unassigned resources substantially reduced and Identified principles for radical simplificationutilization improved Integrating data from multiple legacy systems into a single instance, managed within ERP Radical Change Simplification Current BaselineHorizontal IntegrationCopyright The Open Group 2012 11. Values-based Culture Why?What weve done Needed to re-establish a set of Values as Engaged employees globally in Values Jam the core of IBMs culture and brand to refresh our Values Conducted World Jam with employees to Expanding the IBM brand experience collaborate on solutions for growth, beyond products to integrated solutions innovation and bringing the Values to life and people Employee climate and culture surveys conducted periodically to provide insights on Evolving the IBM management system specific business issues to leverage global and cross unit integration Engaged leaders at all levels on enabling our Values-based culture locally and globallyCopyright The Open Group 2012 12. Values-based CultureValues-based Culture How we did it Impact Global leadership positions put in place IBMs Values are integral in theto work with leaders and teams to driveperformance, recognition and talentour cultural transformationmanagement systems Identified actions focused on IBM employees actively participate inorganizational enablers of culture advancing our Values-based culture viachange, including: collaborative technologies Leadership Behaviors Majority of employees worldwide believe: People Practices IBM management is committed to Management Systemsmaking the changes necessary to enable us to operate consistently with Built leader accountability for role the Valuesmodeling and enabling Values-basedculture The Values influence how employees interact with clients Transformed IBM into a Social BusinessCopyright The Open Group 2012 13. IBM as a Social Business What weve done Why?What weve done Need to connect 425K+ employees Transformed intranet into robust social across +170 countries computing platform Enable employees to be more Created communities of enthusiasts to productive, more knowledgeable, fasterencourage grassroots adoption Facilitate collaborative innovation Established IBM social computing policy and guidelines Organize the flow of ad hoc collaboration Created reverse mentoring program to Drive innovation into products faster educate IBM leaders on collaborative Harness the knowledge of subject matter tools experts from across IBM quickly Providing employees with education on Surface employees as experts to engagehow to engage in a digital world with clients, partners and othersCopyright The Open Group 2012 14. IBM as a Social Business How we did itImpact Provided a social platform in which IBMs internal social media footprint employees could engage Profiles: +400K users; +1M searches/week Made it easy to get started Communities: 75K communities Wikis: 50K wikis Shared tools, enablementmaterials, best practices Blogs: 105K+ bloggers Activities: 31K experts enrolled in Expertise Tapped key influencers: social media Locator with over 550 Ambassadors experts and enthusiastsIBMs external social media Created Social Computing Conduct Facebook: 200K employees Guidelines to teach employees best Linkedin: 288K current employees practices for working in social spaces Twitter: 20K employees GreaterIBM Connections: 100K IBM Alumni Ibm.com Connections: 95K profiles developerWorks: 400k profilesCopyright The Open Group 2012 15. IT Enablement Why? What weve done IT represents biggest spend aside from Consolidated disparate systems, created workforcecommon platforms and standards worldwide Centralized CIO role Unlocking new IT efficiencies frees up resources to fund investments for growth Established enterprise-wide governancemodel Laying foundation for a new era of Built a flexible, responsive and open global computing for global integration,infrastructure collaboration, growth and productivity. Created open model for application Need for faster collaboration across development to accelerate time to value global, mobile employee population Embraced open and secure standards,mobile strategies, social computing, cloud Easily deployed IT solutions to supportcomputing and business analytics new branches in growth markets Established comprehensive securitypractices to allow innovation and mobility while Need for new approaches to security risksafeguarding IBM and client dataCopyright The Open Group 2012 16. IT EnablementHow we did it Impact Began with a massive consolidation: Reduce TCO by 70 percent Capitalized on open standards &amp; virtualization 6500+ servers consolidated since 2008 Delivered 80% energy cost savings &amp; 85% floor spacereduction (30K megawatts of energy saved per year Created a global, virtual community to leverage 74K square feet of floor space returned to the business)collaborative practices to develop software Smarter Infrastructure leveraging Cloud Develop/Test Cloud server supports 5000 images, 500projects and 1000 developers Leverage Mobility with security Transformed intranet into robust social networking Social Computing fuels collaboration/Innovationplatform 155K employees in Technology Adoption Program Developed branch office in a box IT (internal beta testers); Created a single, globally integrated technology deliveryGrowth market branch offices increased significantlymodel Centralized IT service management of the applicationportfolio has resulted in a 36 percent improvement in IBM Metrics1997Todayapplication deployment cycle timeCIOs128 1Host data centers 155 7Web hosting centers80 5Network31 1Applications16,000 4,500Copyright The Open Group 2012 17. Categorization of Applications in the Portfolio Helps toBalance the Investment &amp; Maintenance Service LevelsHigh StrategicBronzeGoldinternationalwill not be replaced within 2 yearsStrategicis run once Blue Silver Mission CriticalLow Potential to cause revenue lost because critical processing cannot continue if theLowHigh application cannot be accessedMission CriticalApplication Type Maintenance Service Level Strategic Investment GoldHigh PriorityHigh Priority SilverHigh PriorityMinimal BronzeMinimalMinimalBlueNone NoneCopyright The Open Group 2012 17 18. Cloud Implementations What weve doneImpact Expanded cloud deployments for a Develop/Test Cloud cut server setup timewide range of applicationsfor developers from 15 days to 1 hour Carefully selected the right workloads to Blue Insight giving 190K users access tomove to cloud platformadvanced analytics on +1 petabyte of data Leveraged cloudonomics to achieve 85% of web conference minuteseconomies of scale, elastic scaling and supported by cloudbetter automation File storage cloud delivered up to 30% Provided developers with self-service,savings in storage management costdynamic compute capacity Production cloud implemented to reduce Deployed cloud solutions to support cost of managing internal applicationscollaboration and broaden employeeaccess to analyticsCopyright The Open Group 2012 19. Mobility Enablement What weve done Impact User segmentation studies 100K+ employees connect to internaldetermine the best fit for mobilenetworks using handheld devicessolution based on job role Capitalizing on the consumerization of Deployed technology to provide IT to improve employee productivityaccess to email, contacts andcalendaring across mobile platforms - Mobile devices pivotal to rapid expansionBYOD (Bring Your Own Device) and assimilation of new employees in growth markets Created an IBM mobile app store, tomake it easy for employees to find Offering 500+ apps which passed 40Kcreate and use secure business download markapplications Standards and governance allow for Use Endpoint Managementscaling and consistent innovationtechnology to fortify security in mobileenvironmentCopyright The Open Group 2012 20. IT Security What weve done Impact Expanded security education to all More resilient network, even when external employees upswing of malware. Protection of regulated sensitive personal Installed Intrusion Prevention System information, decreasing chance of devices in network to block malware atexposure/need to notify all Internet gateways More informed decision making on IT risk, and prioritization of investments. Deployed Endpoint Management to provide persistent enforcement across all Higher levels of assurance and tracking of the workstations, including mobile ones.most privileged users High degree of automation minimizes impact on employee timeCopyright The Open Group 2012 21. IBM Transformation Journey:Key Lessons LearnedStrategy Enabling Productivity CEO sponsorship is critical Business transformation and IT should beclosely aligned Create a sense of urgency that the Dont automate a mess fix processes first,organization can rally around then apply IT Sunset legacy systems and tools as new Think, act and optimize globallyones are deployed Take an end-to-end, outside-in view of Implement governance, performance goalsprocessesand reporting discipline Build process skills and methodologies Direct Link to Enterprise Architecture Need cross-unit leadership and clearaccountabilityEnabling GrowthEnabling Change Focus on high growth customer segments Engage leaders at all levels and new markets Address the underlying drivers of behavior Leverage business analytics to better align resources with opportunities and inform fact- Engage employees broadly based decisions Make culture tangible Consider both organic and non-organic Recognize that changing culture is a sources for revenue growthjourney Enhance end-to-end client experienceCopyright The Open Group 2012 22. Enterprise Architecture Framework: Describing the Strategic Vision and aHolistic System for Managing the Lifecycle of Current/Future investments.Business ApplicationsProcess &amp; ComponentsBusinessStrategyInvestment CycleInformation TechnologyDevelopment CycleInvestment Planning Decision Support &amp; Data &amp; InfrastructureDeveloper Criteria Implementation Criteria Guiding Principles &amp; Metrics Standards Cross Unit and Unit Architecture Governance Copyright The Open Group 2012 22 23. IBMs Internal Enterprise Architecture Program: A Frameworkto Design &amp; Plan our Journey to A Smarter EnterpriseThe New Approach Governance One governance model providing clear direction, focus and executive commitmentGlobally Integrated Enterpise VisionExecution of theEnterprise StrategyData/InformationStrategic uses of trusteddata and data warehousesApplication Architecture InfrastructureStrategic applications A cost effective, reliable andused and others sunset adaptable infrastructure Business Process Design globally consistent processes across organizations and brands. A strong change management approach to transform the culture Current ApproachDevelopment Meth...</p>