enterprise architecture governance for an enterprise transformation journey: the ibm internal case

Copyright © The Open Group 2012

Enterprise Architecture Governance for an Enterprise Transformation Journey:

The IBM Internal Case

Marcelo Sávio

IBM Industry Solutions ArchitectOpen Group Master Certified Architecthttp://www.linkedin.com/in/msavio


Agenda

2. The importance of an Enterprise Architecture framework and governance in that journey

1. The IBM Transformation Journey story

3. Some lessons learned


IBM at a Glance

Business Model

Operations in 172 Countries

$107B Revenue, $16.3B Income 2011

Key Business Segments

• Services• Software• Hardware

• Research• Financing

A highly inclusive workforce:

Over 425,000 employees

less than 5 years of service50%

40% work remotely

+ 100 years


Globally Intergrated Enterprise

multinational –replication

International era –export

Century

20

Century

21

The transformation journey

Global Demand Capture

Global Supply Management

Global Production Optimization

• Consistent set of processes worldwide

• Leverage best practices

• Standardize and reduce waste

• Governance and performance discipline

• Explore the Instrumentation and interconnection

• Enable growth and productivity

• Optimize the whole system

• Right skills, right place, right cost

• Rationalize support functions for greater efficiency

• Radically simplify processes


(Back to School) The Four Operating ModelsSource:


(Back to School) Creating a “Foundation for Executi on”Source:


Integration

SimplificationStandardization

Ope

n In

fras

truc

ture

Globally Integrated Enterprise

Inno

vatio

n

Value

OrganizationSystems

Processes

IBM Internal Transformation Principles: Simplification, Standardization, Integration and Fl exibility


Transformation Framework

Business Process

Excellence

Values-based Culture

Information Technology Enablement

Enabling Growth Enabling Productivity Enabling Change

Transformation Focus Areas

Strategy

Values

Guided by the IBM Strategy

and grounded in IBM Values

Enable transformation at

the intersection of

business process,

technology and culture

Sustain strength in the

global marketplace by

focusing on areas that

enable growth, productivity,

and culture change

IBM’s Transformation Framework: A Systematic Approach for Doing The Right Things The Right Way


What we’ve done

Why?

9

• Established IBM Enterprise Process Framework with senior leaders named as owners business processes

• Took an outside-in approach to address critical pain points focusing first on our clients, then partners and employees

• Launched enterprise-wide initiatives promoting broad adoption of strategic, common global processes

• Established agility as a key capability for customer-facing business processes

• Added “continuously transform” as core competency for leaders at every level of the company

• Built disciplined system to manage & measure the effectiveness and efficiencyof end-to-end processes

• Complex processes are key source of frustration for employees, partners and clients

• Unit/geo-specific approaches andSiloed processes contribute to complexity and inefficiency

• To remain competitive, business processes must respond quickly to changes in the business environment

Business Process Excellence


ImpactHow we did it

• Process improvements contributing to growth & productivity :

– Substantial increase in productivity gain in process transformation & integrated operations

• Hardware Product Management: reducing product portfolio and design complexity

– Reduced feature and options of systems portfolio

• Use of labor analytics to manage technical delivery resources

– Unassigned resources substantially reduced and utilization improved

• Integrating data from multiple legacy systems into a single instance, managed within ERP

Business Process Excellence

• Focused on driving horizontal, end-to-end process improvements and put senior leaders in charge of key processes

• Developed professionals with business process skills, including Lean Sigma black belts

• Simplified and standardized processes across business units and geographies

• Package-enabled business transformation, based on enterprise software, provided global template for consistent deployment

• Identified principles for radical simplification

Current Baseline

Horizontal Integration

Simplification

Radical Change


What we’ve doneWhy?

• Needed to re-establish a set of Values as the core of IBM’s culture and brand

• Expanding the IBM brand experiencebeyond products to integrated solutions and people

• Evolving the IBM management systemto leverage global and cross unit integration


• Engaged employees globally in Values Jam to refresh our Values

• Conducted World Jam with employees to collaborate on solutions for growth, innovation and bringing the Values to life

• Employee climate and culture surveys conducted periodically to provide insights on specific business issues

• Engaged leaders at all levels on enabling our Values-based culture locally and globally


ImpactHow we did it

• Global leadership positions put in placeto work with leaders and teams to drive our cultural transformation

• Identified actions focused on organizational enablers of culture change, including:

– Leadership Behaviors

– People Practices

– Management Systems

• Built leader accountability for role modeling and enabling Values-based culture

• Transformed IBM into a Social Business

• IBM’s Values are integral in the performance, recognition and talent management systems

• IBM employees actively participate inadvancing our Values-based culture via collaborative technologies

• Majority of employees worldwide believe:

– IBM management is committed to making the changes necessary to enable us to operate consistently with the Values

– The Values influence how employees interact with clients




What we’ve done


• Need to connect 425K+ employees across +170 countries

• Enable employees to be more productive, more knowledgeable, faster

• Facilitate collaborative innovation

• Organize the flow of ad hoc collaboration

• Drive innovation into products faster

• Harness the knowledge of subject matter experts from across IBM quickly

• Surface employees as experts to engage with clients, partners and others

• Transformed intranet into robust social computing platform

• Created communities of enthusiasts to encourage grassroots adoption

• Established IBM social computing policy and guidelines

• Created reverse mentoring program to educate IBM leaders on collaborative tools

• Providing employees with education on how to engage in a digital world

IBM as a Social Business


Impact How we did it

• IBM’s internal social media footprint– Profiles: +400K users; +1M searches/week• Communities: 75K communities• Wikis: 50K wikis• Blogs: 105K+ bloggers• Activities: 31K experts enrolled in Expertise

Locator with over 550 Ambassadors

IBM’s external social media • Facebook: 200K employees• Linkedin: 288K current employees• Twitter: 20K employees• GreaterIBM Connections: 100K IBM Alumni• Ibm.com Connections: 95K profiles• developerWorks: 400k profiles

• Provided a social platform in which employees could engage

– Made it easy to get started

– Shared tools, enablement materials, best practices

• Tapped key influencers: social media experts and enthusiasts

• Created Social Computing Conduct Guidelines to teach employees best practices for working in social spaces

IBM as a Social Business



• IT represents biggest spend aside from workforce

• Unlocking new IT efficiencies frees up resources to fund investments for growth

• Laying foundation for a new era of computing for global integration, collaboration, growth and productivity.

• Need for faster collaboration across global, mobile employee population

• Easily deployed IT solutions to support new branches in growth markets

• Need for new approaches to security risk

• Consolidated disparate systems , created common platforms and standards worldwide

• Centralized CIO role

• Established enterprise-wide governance model

• Built a flexible, responsive and open global infrastructure

• Created open model for application development to accelerate time to value

• Embraced open and secure standards, mobile strategies, social computing, cloud computing and business analytics

• Established comprehensive security practices to allow innovation and mobility while safeguarding IBM and client data

IT Enablement


ImpactHow we did it

• Reduce TCO by 70 percent

• Delivered 80% energy cost savings & 85% floor space reduction (30K megawatts of energy saved per year –74K square feet of floor space returned to the business)

• Develop/Test Cloud server supports 5000 images, 500 projects and 1000 developers

• Social Computing fuels collaboration/Innovation

– 155K employees in Technology Adoption Program (internal beta testers);

Growth market branch offices increased significantly

• Centralized IT service management of the application portfolio has resulted in a 36 percent improvement in application deployment cycle time

• Began with a massive consolidation :

• Capitalized on open standards & virtualization

– 6500+ servers consolidated since 2008

– Created a global, virtual community to leverage collaborative practices to develop software

• Smarter Infrastructure leveraging Cloud

• Leverage Mobility with security

• Transformed intranet into robust social networking platform

• Developed “branch office in a box” IT

• Created a single, globally integrated technology delivery model

IT Enablement

4,50016,000Applications

131Network

580Web hosting centers

7155Host data centers

1128CIOs

Today1997IBM Metrics

17Copyright © The Open Group 2012

Low

High

Strategic

Low HighMission Critical

SilverBlue

GoldBronze

Strategic� international

� will not be replaced within 2 years

� is run once

Mission Critical� Potential to cause revenue lost because critical processing cannot continue if the application cannot be accessed

NoneNoneBlue

MinimalMinimalBronze

MinimalHigh PrioritySilver

High Priority High PriorityGold

Strategic InvestmentMaintenance Service LevelApplication Type

Categorization of Applications in the Portfolio Hel ps to Balance the Investment & Maintenance Service Level s


ImpactWhat we’ve done

• Expanded cloud deployments for a wide range of applications

• Carefully selected the right workloads tomove to cloud platform

• Leveraged “cloudonomics” to achieve economies of scale , elastic scaling and better automation

• Provided developers with self-service, dynamic compute capacity

• Deployed cloud solutions to support collaboration and broaden employee access to analytics

• Develop/Test Cloud cut server setup time

for developers from 15 days to 1 hour

• Blue Insight giving 190K users access to advanced analytics on +1 petabyte of data

• 85% of web conference minutessupported by cloud

• File storage cloud delivered up to 30% savings in storage management cost

• Production cloud implemented to reduce cost of managing internal applications

Cloud Implementations



• User segmentation studies determine the best fit for mobile solution based on job role

• Deployed technology to provide access to email, contacts and calendaring across mobile platforms -BYOD (Bring Your Own Device)

• Created an IBM mobile app store, to make it easy for employees to find create and use secure business applications

• Use Endpoint Management technology to fortify security in mobile environment

• 100K+ employees connect to internal networks using handheld devices

• Capitalizing on the “consumerization of IT” to improve employee productivity

• Mobile devices pivotal to rapid expansion and assimilation of new employees in growth markets

• Offering 500+ apps –which passed 40K download mark

• Standards and governance allow for scaling and consistent innovation

Mobility Enablement



• More resilient network, even when external upswing of malware.

• Protection of regulated sensitive personal information, decreasing chance of exposure/need to notify

• More informed decision making on IT risk, and prioritization of investments.

• Higher levels of assurance and tracking of the most privileged users

• High degree of automation minimizes impact on employee time

IT Security

• Expanded security education to all employees

• Installed Intrusion Prevention Systemdevices in network to block malware at all Internet gateways

• Deployed Endpoint Management to provide persistent enforcement across all workstations, including mobile ones.


Strategy

Enabling Growth

Enabling Productivity

Enabling Change

• CEO sponsorship is critical

• Create a “sense of urgency” that the organization can rally around

• Think, act and optimize globally

• Implement governance, performance goals and reporting discipline

• Direct Link to Enterprise Architecture

• Business transformation and IT should be closely aligned

• Don’t automate a mess – fix processes first, then apply IT

• Sunset legacy systems and tools as new ones are deployed

• Take an end-to-end, outside-in view of processes

• Build process skills and methodologies• Need cross-unit leadership and clear

accountability

IBM Transformation Journey: Key Lessons Learned

• Focus on high growth customer segments and new markets

• Leverage business analytics to better align resources with opportunities and inform fact-based decisions

• Consider both organic and non-organic sources for revenue growth

• Enhance end-to-end client experience

• Engage leaders at all levels

• Address the underlying drivers of behavior

• Engage employees broadly

• Make culture tangible

• Recognize that changing culture is a journey


Investment CycleInvestment Planning

Development Cycle Decision Support Developer Criteria

Enterprise Architecture Framework: Describing the Strat egic Vision and a Holistic System for Managing the Lifecycle of Current /Future investments.

Guiding Principles & Metrics Standards Implementation Criteria Cross Unit and Unit Architecture Governance

Business

Process

Information

& Data

Technology

& Infrastructure

Applications

& Components

Business

Strategy


Current Approach

Globally Integrated Enterpise Vision

Execution of the Enterprise Strategy

InfrastructureA cost effective, reliable and adaptable infrastructure

The New Approach

Business ProcessDesign globally consistent processes across organizations and brands.

A strong change management approach to transform theculture

Development Methodology: Adopt the best methods to ensure speed and quality

Application ArchitectureStrategic applicationsused and others sunset

Data/InformationStrategic uses of trusteddata and data warehouses

GovernanceOne governance model providing clear direction, focus and executive commitment

IBM’s Internal Enterprise Architecture Program: A Fram ework to Design & Plan our Journey to A Smarter Enterpris e


Hea

dqua

rter

s

Sys

tem

s

Ser

vice

s

Sal

es

Glo

bal F

inan

cing

Geo

grap

hies

Sof

war

e

Client Facing

Finance

Workforce Management

Technical Support

Development

Supply Chain

Process Transformation

ExecutivesEnterprise process transformation and application portfolio

management

Business Transformation

ExecutivesBusiness unit transformation

and application portfolio management

The Organizational Alignment plays an Important Rol e in IBM’s internal IT-Enabled Business Transformation

CIO• Delivery of operational excellence and business value• Implement enterprise strategy, architecture, standards & governance• Development of global IT workforce


How to stay on the right track? With EA Governance (with a balanced approach)

Unstructured•Free-for-all•Unrepeatable process•No metrics•No documentation•Relies on ‘heroes’

Too Structured•No room for creativity•Bureaucratic and slow•Too many metrics•Policy & procedure excess•Often ignored / undermined

Governance•Balanced•Repeatable process•Measurable•Documented and used•Continuously improved

Optimal Target based on

Requirements


The Governance Model is Designed to Make the Right Balance between Accountability, Integration, & Fle xibility

Senior Vice President Program Sponsorship:• Program Steering Committees – Senior level

sponsorship and accountability

CIO Operating Team Leadership:• Diverse membership drives enterprise integration• Leveraged rotation of members• Enterprise portfolio optimization• Domain leaders set review standards• Initiative funds released by phase• Ongoing assessments ensure value realization

Program Management Office Execution:• Business, IT and process transformation team

Program Management Office Program Integration Executive

Operating TeamChief Information Officer

Steering Committee

Membership

• Process Owners

• Business Unit Execs

• Geographies

• Domain Leads

Senior Vice President

Domain

• Business Process

• Data

• Application

• Infrastructure

• Development


EA Governance Framework

• Structure;

• Roles and responsibilities;

• Processes:

• Compliance

• Exception Handling

• Communication

• Vitality

• Metrics;

• Decision Mechanisms.

Our EA Governance Framework had defined:


EA Governance Levels

Executive Level Steering Committees

Architecture Review Board

Business/IT Direction

(Project Funding/Approval)

Architecture Complianceat Project Level

Reviews, consults,mentors project teams

ArchitecturePolicy & Direction

Leadership & Sponsorship(Governance/Standards/Processes)

Technical Review Board

ApplicationArchitect

DataArchitect

TechnologyArchitect

Architecture Role/Responsibility

Project Teams

Str

ateg

icT

actic

al

BusinessArchitect


The four essential processes for the successful EA: Vitality, Compliance, Exception Handling and Commun ication

Architecture Vitality Process

Solutions Delivery

Architecture Communications Process

Architecture Review & Approval

(Compliance )Process

Information Systems Delivery

Technology Delivery

Project Management

Portfolio Management

Inspect

Architecture Exceptions

and AppealsProcess

Appeal

Maintain

Communicate

These four core processes are essential for success of

The EA program


Common Architecture

Unique Product/ Service

Architecture

Unique Product/Service

Architecture


Architecture

Shared Architecture Unique Product/Service

Architecture

Common Architecture

Unique Product/ Service

Architecture


Architecture


Architecture

Shared Architecture Unique Product/Service

Architecture

EA “Socialization ”

Vision

Portal Training

Applications DataNetwork

Systems

Management

Organization& Management

Guiding

Principles

Decision-makingResponsibilityGovernance

Role of TechnologyValue of TechnologyComplianceUse of Technologye-BusinessWebsite

LocationMake vs Buy

Modular Components

Applications DevelopmentCommon User InterfaceScalabilityTesting & Training

Data Management

Data OwnershipData StorageData AccessOperational&AnalyticalData Confidentiality

Single Logical NetworkNetwork ManagementExternal Connectivity

Security

AvailabilityProduction System Mgmt

Principles

� Charter: Mission, Vision, & CSFs� Organizational Structure� Roles and Responsibilities� Guiding Principles

� Processes� Compliance Review and Approval� Exceptions� Vitality� Communications

� Selection and Evaluation Criteria� Metrics

� Transition Planning� Architecture Tools

� Maturity Assessment Refresh� Ongoing Education

Executive Workshops

1

2

3

Process and ToolsProcesses & Tools enable the Architecture

Compliance

Exceptions

Vitality

Evaluation & Selection

Communication

Infrastructure

Processes

EnterpriseArchitecture

Compliance

Exceptions

Vitality

Communication

Infrastructure

Processes

Tools

EnterpriseArchitecture


“Independent Solution Architecture”

So what about the solutions that need to be deployed everyday?


“Are our target architectures still

right?”

“Are we still moving the

right direction?”

Programmes& Projects

Strategic Delivery

Solution Outline Build Cycle DeploymentMacro Design Micro Design



Strategic Intent

EAGovernance

"Are we designing these systems the way we said we want them

done?”

Enterprise IT Architecture

FunctionalOperational

"This is the way these systems should be designed”

Enterprise Business

Architecture

“Business as Usual” project prioritization &

planning

"These are the projects we should

do”

EA Transition

“These are ourroadmaps”

Promoting solutions in compliance with EA


Creating the EA

� Populating the EA with information from all domains

� Communicating with stakeholders in their context

� Managing constant enterprise-wide change

� Keeping individual projects in synch with the prescribed EA

Consuming the EA

Lessons Learned: There are challenges to making the EA “actionable”

Challenge in transforming business requirements int o implementation

The language of Planners and Strategists

The language of Solution

Designers

“To-be”Patterns and

Building Blocks

“As-is”Inventory

Providing Guiding

Principles

Ensuring Governance

Stability for Programmes

Moving with the Business


Lessons Learned: Making an EA “actionable” means mak ing more productive use of our architectural information

� Simpler and automated harvesting from all enterprise resources

� Governance with enterprise wide change management and best practices measurement

� Enhanced reporting and usability to improve communication

� Integrated IT delivery enabling reuse of assets and practices

Consuming the EA

Creating the EA

Integrated business & implementation requirements

One language of architecture

“as is”and

“to be”

Integrated tooling

Version control and publication management


Enterprise CapabilitiesCapability

Model

Resources

EA Overview Diagram

Strategic CBMBusiness Directions

EA Guiding Principles

Business Scenarios

Business ArchitectureBusiness Event List

Locations

Business Activity Mdl

Business Structure

Enterprise KPIs

Roles

Usage Matrices

Business Reference Architectures

Enterprise Information

Model

Technology Architecture

IT NodesIT

Components

Technology Reference Architectures

Strategic Gap Analysis

EA Neighborhood Gaps Ident’n

EA Capability Assessment

EA Neighborhood Assessments

TransitionTransition Initiatives

Transition Management

StrategyIntegrated Transition

Plan

Management Action Plan

Critical issues, opportunities

& rec’ns

Governance

Decision Model Principles,

Policies & Guidelines

Architecture Management

Processes

Architecture ManagementRoles / Resp

Architecture Management

Metrics

Arc

hite

ctur

al D

omai

ns

Purpose-RelatedCategories

All Architectural Building Blocks

Access through Web-Portal

Powerful Search Capabilities

Release Management

Publication Process

Project A

ABB

ABB

ABBABB

Art

ifact

Usa

ge

Project B

ABB

ABB

ABBABB

Project C

ABB

ABB

ABBABB

Project D

ABB

ABB

ABBABB

Project E

ABB

ABB

ABBABB

EA Repository

Very important tool: EA Repository


Lessons-Learned: Six Principles to Consider when planning Your Journey to a Smarter Enterprise

36

• Start a movement• Engage the workforce

• Jams and social software are great enablers

• Establish clear transformation governance• Appoint business, process and IT leaders to councils

• Key decision-makers must have accountability for results

• Transformation requires a data-driven discussion• Analytics can improve operational performance

• Enable fact-based decisions

• Radically simplify business processes• Design processes from viewpoint of users, not process owners

• Establish standards & eliminate process steps that don’t add value

• Invest in transformative innovation• IT doesn’t create transformation, but can be great accelerator

• Experiment with new ways to stimulate work environment & fuel new thinking

• Embody creative leadership• Takes new approach to lead global, multi-generational workforce

• Leadership competencies must evolve for new realities

http://www.ibm.com/smarterplanet/us/en/business_agility/article/transformation.html


10. Create a “sense of urgency” that the company can rally around

9. Create a revisionist history – you’ll be surprised at how far you’ve come

8. While you’re creating, define short-term projects with near-term results

7. Review business processes to see if changes are needed before you deploy technology

6. Technology enables and accelerates transformation

5. Set your milestones and metrics with an end-to-end lifecycle view

4. Sunset legacy systems/applications/tools as new ones are deployed

3. Can NOT over-emphasize the importance of culture and fostering innovation

2. Transform constantly or risk extinction – there is no other option

1. Always, always, always listen to your customers and make sure you have

the right perspective

Top 10 Lessons Learned from IBM ’s Internal IT -Enabled Transformation


Agora uma singela homenagem....


Algumas constata ções no in ício da década de oitenta...


Há exatos 25 anos ...

Em 1987 John A. Zachman (IBM) escreveu no IBM Systems Journal um artigo sobrearquitetura de sistemas de informação, no qual propôs um framework;

Em 1992 publicou, novamente no IBM Systems Journal, e em parceria com John F. Sowa (também então recémaposentado da IBM) uma versão estendida do artigo original, contendo um nova e definitiva versão do framework.

Em 1990 se aposentou da IBM e montou sua própria empresa de consultoria em arquitetura corporativa;


Zachman Enterprise Architecture Framework

1869 1987

Dimitri Mendeleiev

(1834 -1907)

e.g. DATA

Builder

SCOPE(CONTEXTUAL)

MODEL(CONCEPTUAL)

ENTERPRISE

Designer

SYSTEMMODEL(LOGICAL)

TECHNOLOGYMODEL(PHYSICAL)

DETAILEDREPRESEN- TATIONS(OUT-OF- CONTEXT)

Sub-Contractor

FUNCTIONINGENTERPRISE

DATA FUNCTION NETWORK

e.g. Data Definition

Ent = FieldReln = Address

e.g. Physical Data Model

Ent = Segment/Table/etc.Reln = Pointer/Key/etc.

e.g. Logical Data Model

Ent = Data EntityReln = Data Relationship

e.g. Semantic Model

Ent = Business EntityReln = Business Relationship

List of Things Importantto the Business

ENTITY = Class ofBusiness Thing

List of Processes theBusiness Performs

Function = Class ofBusiness Process

e.g. Application Architecture

I/O = User ViewsProc .= Application Function

e.g. System Design

I/O = Data Elements/SetsProc.= Computer Function

e.g. Program

I/O = Control BlockProc.= Language Stmt

e.g. FUNCTION

e.g. Business Process Model

Proc. = Business ProcessI/O = Business Resources

List of Locations in which the Business Operates

Node = Major BusinessLocation

e.g. Business Logistics System

Node = Business LocationLink = Business Linkage

e.g. Distributed System

Node = I/S Function(Processor, Storage, etc)Link = Line Characteristics

e.g. Technology Architecture

Node = Hardware/SystemSoftware

Link = Line Specifications

e.g. Network Architecture

Node = AddressesLink = Protocols

e.g. NETWORK

Architecture

Planner

Owner

MOTIVATIONTIMEPEOPLE

e.g. Rule Specification

End = Sub-condition

Means = Step

e.g. Rule Design

End = ConditionMeans = Action

e.g., Business Rule Model

End = Structural AssertionMeans =Action Assertion

End = Business ObjectiveMeans = Business Strategy

List of Business Goals/Strat

Ends/Means=Major Bus. Goal/Critical Success Factor

List of Events Significant

Time = Major Business Event

e.g. Processing Structure

Cycle = Processing CycleTime = System Event

e.g. Control Structure

Cycle = Component CycleTime = Execute

e.g. Timing Definition

Cycle = Machine CycleTime = Interrupt

e.g. SCHEDULE

e.g. Master Schedule

Time = Business EventCycle = Business Cycle

List of Organizations

People = Major Organizations

e.g. Work Flow Model

People = Organization UnitWork = Work Product

e.g. Human Interface

People = RoleWork = Deliverable

e.g. Presentation Architecture

People = UserWork = Screen Format

e.g. Security Architecture

People = IdentityWork = Job

e.g. ORGANIZATION

to the BusinessImportant to the Business

What How Where Who When Why

Architecture

e.g. STRATEGY

e.g. Business Plan


A “ávore genealógica” dos frameworks de arquiteturaFonte:


Marcelo Sávio

IBM Industry Solutions ArchitectOpen Group Master Certified Architecthttp://www.linkedin.com/in/msavio

enterprise architecture governance for an enterprise transformation journey: the ibm internal case

Technology

asowners business processes

set of values

ibm strategyand

enterprise software

complex processes

ibm brand experience

ibms transformation

culture surveys