modernize and transform · 2008. 4. 30. · modernize and transform april 23, 2008. 4/30/2008 page...

4/30/2008

Modernize and TransformApril 23, 2008

4/30/2008

Agenda

• General benchmarking results

• Barriers to modernization

• Best practices and next steps

• Unisys approach to modernization

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Modernization Where Old and New Come Together

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LA Enterprise Modernization Footprint

So how did we get here?

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Some Strategic Alternatives to Looking at Enterprise Modernization• Internal review

• Project Investment / Status review

• Skills / Competency review

• Analyst papers

• Review Management Reports

• Change of Strategy based on experience

• Get external assistance

• Fire fight and carry on down the road

• Benchmark where we/others are and where we want to be

So why benchmark with Unisys?

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• Compare performance with industry norm and best practice

– Gap Analysis

– Multi-Variate Analysis

• Strategically position IT investments with respect to business goals– Improves visibility of IT value to the Business

• Easy to understand– Written report and graphics

• Fast cycle– Fast turnaround graphical output and report

• Low commitment– In time and money

• Independent guidance– Backed by Saugatuck Technology– Based on primary research data

Benefits of Unisys Modernization Benchmark

What do you mean by Enterprise Modernization?

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Unisys Definition of Enterprise Modernization

Definition --

‘A holistic and ongoing evolution of business processes, applications, and technology where business and IT are aligned to produce flexible, low-cost operating models that reduce risk, improve performance, and increase agility.’

How do you deal with Enterprise Modernization?

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Unisys Approach to Enterprise Modernization is Issues Based• Platform directives

• Aging applications

• Aging workforce

• Aging technologies / infrastructure

• Legislative requirements

• Reporting / visibility needs

• Constrained budgets

• Establish Vision

• Set Roadmap

• Holistic approach

• Prioritize initiatives

• Change Management

• Benefit Management

• Incremental Improvement• Feedback Loop

• Leverage best in class tools and methodologies – 3D Blueprinting

What should we look as modernization indicators?

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Modernization Factors

Business Resilience

The degree to which the organization’s processes, planning, information, network and applications are managed and controlled in order to secure and to provide continuity for all business assets

Collaborative Business

The degree to which communications enables the optimized utilization of trusted knowledge and relevant data, by all stakeholders in a secure environment, to achieve a common business objective

IT as a Business Enabler

The degree to which IT is valued by the organization as a means to optimize all available resources and execute synchronized business objectives

Open Business and IT

The degree to which the organization chooses to utilize open standards to promote innovation and access across the enterprise as well as with citizens

Green BusinessThe degree to which the consumption of energy and resources is efficiently, flexibly and ethically managed by the organization and it’s suppliers to achieve “green”objectives

Business Execution

The degree to which the organization has demonstrated the ability to execute on its business and technology initiatives in support of its overall business objectives

Unisys developed six “Modernization Factors” that together comprise the Enterprise Modernization Maturity Benchmark based on: organizational interviews and client experience.

What does this Mean for LA Enterprise Modernization?

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LA UMB RESULTSThe Unisys Modernization Benchmark Survey

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LA Enterprise Modernization Footprint

So how did we get here?

1 = Not important / 5 = Extremely important

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Which three of the following

business objectives will be the most important in

driving success in your

business over the next three years. (Please select your top

three)

LA stands out in it’s focus on Budgets and Productivity, how will this effect the Citizen?

12

3

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Please rank the following business

objectives with regard to how important they are in driving

success in your business over the next three

years.

If it’s all important, how do you prioritise resources?

Is everything important?

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Enhancing skills = Further IT Automation?1

Critical

performance

gap?

Please indicate how important, in terms of

your future investment / budgeting priorities, it is to execute each of the

following business initiatives in order to drive success in your business over the next three years and how effective will you

be?

E

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Please indicate which of the

following descriptions best describes your Government

Body's approach to managing Skills

and Expertise today and three years from now

The reality of managing Enterprise Modernization in uncertain times

It has to move this way

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Please indicate how important, in terms of

your future investment / budgeting priorities, it is to execute each of the following technology initiatives in order to drive success in your

business over the next three years and your

effectiveness

Capacity and security issuesPriority gap closure

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IT and Business alignment over IT Sourcing



Body's IT Sourcing model

Business Vs IT View

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Changing the value of IT through execution



Body's approach to IT Management

Practices today and three years

from now

Perception, opinion, agendas

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Communication & Collaboration in transition


following descriptions most closely describes your Government

Body's communications capabilities today and three years

from now

Over communicate &

break down silos

In Summary

• People, politics, priorities and budgets

• If LA is going to deliver it all themselves, what will they have to stop doing?

• How does LA change and evolve their single year execution ability?

• How does LA manage their internal perceptions and communication to increase motivation?

• No stone left untouched, think about Modernization holistically

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Questions & Answers

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So what does this mean for LA?Best Practices

We are experts in Enterprise Modernization!

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http://www.charter.com/Visitors/Home.aspx

http://www.ing.com/group/index.jsp

Holistic Approach to Enterprise Modernization

BlueprintingRepository

As-Is Business

Model

Business needs

Strategic Modernization Services

Process Modernization Services

Application Modernization Services

Infrastructure Modernization Services

BlueprintingTools

To-Be Business

Model

Strategy

Process

Applications

Infrastructure

Engagements can start at every level

Start

Start

Start

Start

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Based on customer data, Top Seven Barriers are:

• Finding Funds

• Skills Gap

• It Takes Too Long

• Risk in Changing Core Business Applications

• Where to Start?

• Modernize and Maintain – How Can You Do Both?

• Quality of Service – Compromising Service Levels

Common Barriers to Modernization

Point Solution

Cost Reduction

Planning

Investment

An Enterprise Modernization view helps to address where to get started in overcoming these obstacles

4/30/2008

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Better, Cheaper, Faster?IT’s hands are tied by cost structure

Source: Ovum and Gartner

5%

30%

42%

Today

23%

72%

28%

Application maintenance

Application innovation

Infrastructure maintenance

Infrastructure innovation

45%

10%

15%

30%

55%

45%

ROI forBusiness

and IT

IT budget as % of revenue

The Ideal

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Risk of Inaction

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Risk of working with the wrong partner

16%

26% 28%34%

0%

50%

1994 1999 2000 2004

Company GainWells Fargo 50%

Merrill Lynch 300%

Ericsson 100%

ALLTEL 66%

Vsys 300%

SoftwareDevelopment

SoftwareDevelopment

Software Success is PossibleProject Success Rates

Source: Standish Report 4/30/2008

Getting Started

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Modernization of Systems Can Have Many Dimensions and Flavors

Platform migration

Application improvement

Non-invasive application integration

Service Oriented Architecture

Transformation

Language-to-language

conversion

Data architecture

migration

Application and data architecture

consolidation

Application Portfolio

Management

Data warehouse deployment

Application package

selection and deployment

Reusable software assets and component

reuse

Model-Driven Architecture

transformation

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Wide Spectrum of Services can be Utilized at Any Stage of a Modernization Project

Infrastructure Assessment

Application Portfolio Assessment

Knowledge Mining and Abstraction

Strategy and Business Case

Start with one or more of these

Refactor Translate Wrap Replace Orchestrate

Iteratively apply one or more of these

Platform and Data Migration Test and ValidationData and Application Integration

Combine with, or independently leverage, these

4/30/2008

Refactor Translate Wrap Replace Orchestrate

Test and ValidationData and Application Integration

Gartner’s View on Application Triage

• Assess the application portfolio on a regular basis

• Use a top-down classification method to divide the application portfolio into categories for further analysis

• Apply bottom-up detail analysis to the categories to develop detailed action plans

A high-level decision framework can structure the sorting of applications. With some variations, the following classes have proven useful in many APM initiatives:

Tolerate systems that satisfy a significant portion of the business function and are on platforms that deliver high quality of service.

Invest, innovate in or integrateapplications that increase the value or leverage of business processes, cross application stovepipes or have service levels or data volumes that preclude conversion.

Migrate systems that are on "burning platforms" or use declining or irreplaceable skills.

Eliminate applications that no longer provide significant business value, beginning with those that are technically weak.

Source: Gartner, 2007 4/30/2008

Unisys Portfolio Management Approach

Core To Organization

Strategy

Core Operation Hi Cost / Hi

Volume

Core Operation Lo Cost / Lo

Volume

Non-Core Any Cost / Any

VolumeObsoletePlatform

Business Value

TechnologyValue

REPLACE

RIGHT SOURCE

REPLACE

Service Enabled

RENOVATE

RIGHT SOURCE

RENOVATE

RIGHT SOURCE

Strategic

DEPLOY

RIGHT SOURCE

DEPLOY

RIGHT SOURCE

Service Capable

REPLACE

RIGHT SOURCE

RENOVATE

RENOVATEREPLACE

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Illustration – Findings

Business Value

Commodity

Architecture Window

Technology ValueObsolete

Public Safety

Benefits Processing

Obsolescence Leading Edge Bleeding Edge

Courts

Legacy

LandMgmt

BudgetTracking

Tax Processing

Mainstream

311

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Next Steps

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3D BlueprintingOur 3D Blueprinting Approach Uniquely Illuminates the Optimal Path Between Strategy and Execution

Knowledge Prioritization Integration

Business Strategy

• Business Alignment

• Risk Management

• Cost Control

• Process Improvement

• Process Centricity

• Service Orientation

• Data Security

• Business Intelligence

• Virtualization

IT Execution

Strategy

DrivesInfrastructureLayer

Applications Layer

Operations Layer

Strategy Layer

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• Good understanding of the modernization process

• Skills around creating comprehensive end-to-end solutions

• Robust ability to deliver complex requirements

• Innovative approaches for flexibility and alignment

• Comprehensive project management, perhaps on a global scale

Modernization is a holistic, multi-discipline which requires…

You need a partner…that identifies with and provides for

visibility, trust and control4/30/2008

Steps Moving Forward

• Establish vision• Set roadmap

– Application Portfolio Management– Knowledge Mining and Abstraction

• Holistic approach

• Prioritize initiatives

• Change Management

• Benefit Management• Incremental improvement• Feedback loop• Leverage best in class tools and

methodologies – 3D Blueprinting

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Change is Good. Change is Inevitable: Embrace it.

“If you always do what you always did, you always get what youalways got”

– Einstein

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Questions & Answers

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Thank you

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modernize and transform · 2008. 4. 30. · modernize and transform april 23, 2008. 4/30/2008 page...

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