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


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

  1. 1. Enterprise Architecture Governance foran Enterprise Transformation Journey: The IBM Internal CaseMarcelo Sávio IBM Industry Solutions Architect Open Group Master Certified Architect http://www.linkedin.com/in/msavioCopyright © The Open Group 2012
  2. 2. Agenda 1. The IBM Transformation Journey story 2. The importance of an Enterprise Architecture framework and governance in that journey 3. Some lessons learnedCopyright © The Open Group 2012
  3. 3. IBM at a Glance $107B Revenue, $16.3B Income 2011 Operations in 172 Countries Key Business Segments • Services • Research A highly inclusive workforce: • Software • Financing • Hardware Over 425,000 employees Business Model 50% less than 5 years of service 40% work remotely + 100 yearsCopyright © The Open Group 2012
  4. 4. The transformation journey Century Century International era – multinational – Globally Intergrated export replication Enterprise 20 21 • Consistent set of processes • Right skills, right place, right cost • Explore the Instrumentation worldwide and interconnection • Rationalize support functions for • Leverage best practices greater efficiency • Enable growth and productivity • Standardize and reduce waste • Radically simplify processes • Optimize the whole system • Governance and performance discipline Global Supply Global Production Global Demand Management Optimization CaptureCopyright © The Open Group 2012
  5. 5. (Back to School) The Four Operating Models Source:Copyright © The Open Group 2012
  6. 6. (Back to School) Creating a “Foundation for Execution” Source: Copyright © The Open Group 2012
  7. 7. IBM Internal Transformation Principles:Simplification, Standardization, Integration and Flexibility Open Infrastructure Value Integration Innovation Systems Organization Standardization Simplification Processes Globally Integrated EnterpriseCopyright © The Open Group 2012
  8. 8. IBM’s Transformation Framework: A SystematicApproach for Doing The Right Things The Right Way Strategy Guided by the IBM Strategy and grounded in IBM Values Values Transformation Framework Business Enable transformation at Process Values-based Excellence Culture the intersection of business process, Information technology and culture Technology Enablement Transformation Focus Areas Sustain strength in the global marketplace by Enabling Growth Enabling Productivity Enabling Change focusing on areas that enable growth, productivity, and culture changeCopyright © The Open Group 2012
  9. 9. Business Process Excellence What we’ve done • Established IBM Enterprise Process Framework with senior leaders named as owners business processes Why? • Took an outside-in approach to address critical pain points focusing first on our • Complex processes are key source of clients, then partners and employees frustration for employees, partners and clients • Launched enterprise-wide initiatives promoting broad adoption of strategic, • Unit/geo-specific approaches and common global processes Siloed processes contribute to complexity and inefficiency • Established agility as a key capability for customer-facing business processes • To remain competitive, business processes must respond quickly to • Added “continuously transform” as core changes in the business environment competency for leaders at every level of the company • Built disciplined system to manage & measure the effectiveness and efficiency of end-to-end processesCopyright © The Open Group 20129
  10. 10. Business Process Excellence How we did it Impact • Focused on driving horizontal, end-to-end • Process improvements contributing to process improvements and put senior growth & productivity: leaders in charge of key processes – Substantial increase in productivity gain in • Developed professionals with business process transformation & integrated operations process skills, including Lean Sigma black belts • Hardware Product Management: reducing • Simplified and standardized processes product portfolio and design complexity across business units and geographies – Reduced feature and options of systems portfolio • Package-enabled business transformation, • Use of labor analytics to manage technical based on enterprise software, provided delivery resources global template for consistent deployment – Unassigned resources substantially reduced and • Identified principles for radical simplification utilization improved • Integrating data from multiple legacy systems into a single instance, managed within ERP Radical Change Simplification Current Baseline Horizontal IntegrationCopyright © The Open Group 2012
  11. 11. Values-based Culture Why? What we’ve done • Needed to re-establish a set of Values as • Engaged employees globally in Values Jam the core of IBM’s 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. 12. Values-based CultureValues-based Culture How we did it Impact • Global leadership positions put in place • IBM’s Values are integral in the to work with leaders and teams to drive performance, recognition and talent our cultural transformation management systems • Identified actions focused on • IBM employees actively participate in organizational enablers of culture advancing our Values-based culture via change, including: collaborative technologies – Leadership Behaviors • Majority of employees worldwide believe: – People Practices – IBM management is committed to – Management Systems making the changes necessary to enable us to operate consistently with • Built leader accountability for role the Values modeling and enabling Values-based culture – The Values influence how employees interact with clients • Transformed IBM into a Social BusinessCopyright © The Open Group 2012
  13. 13. IBM as a Social Business What we’ve done Why? What we’ve 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, faster encourage 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 engage how to engage in a digital world with clients, partners and othersCopyright © The Open Group 2012
  14. 14. IBM as a Social Business How we did it Impact • Provided a social platform in which • IBM’s 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, enablement materials, best practices • Blogs: 105K+ bloggers • Activities: 31K experts enrolled in Expertise • Tapped key influencers: social media Locator with over 550 Ambassadors experts and enthusiasts IBM’s 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. 15. IT Enablement Why? What we’ve done • IT represents biggest spend aside from • Consolidated disparate systems, created workforce common platforms and standards worldwide • Centralized CIO role • Unlocking new IT efficiencies frees up resources to fund investments for growth • Established enterprise-wide governance model • 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 support computing and business analytics new branches in growth markets • Established comprehensive security practices to allow innovation and mobility while • Need for new approaches to security risk safeguarding IBM and client dataCopyright © The Open Group 2012
  16. 16. IT Enablement How we did it Impact • Began with a massive consolidation: • Reduce TCO by 70 percent • Capitalized on open standards & virtualization – 6500+ servers consolidated since 2008 • Delivered 80% energy cost savings & 85% floor space reduction (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, 500 projects and 1000 developers • Leverage Mobility with security • Transformed intranet into robust social networking • Social Computing fuels collaboration/Innovation platform – 155K employees in Technology Adoption Program • Developed “branch office in a box” IT (internal beta testers); • Created a single, globally integrated technology delivery Growth market branch offices increased significantly model • Centralized IT service management of the application portfolio has resulted in a 36 percent improvement in IBM Metrics 1997 Today application deployment cycle time CIOs 128 1 Host data centers 155 7 Web hosting centers 80 5 Network 31 1 Applications 16,000 4,500Copyright © The Open Group 2012
  17. 17. Categorization of Applications in the Portfolio Helps toBalance the Investment & Maintenance Service Levels High Strategic Bronze Gold international will not be replaced within 2 years Strategic is run once Blue Silver Mission Critical Low Potential to cause revenue lost because critical processing cannot continue if the Low High application cannot be accessed Mission Critical Application Type Maintenance Service Level Strategic Investment Gold High Priority High Priority Silver High Priority Minimal Bronze Minimal Minimal Blue None NoneCopyright © The Open Group 2012 17
  18. 18. Cloud Implementations What we’ve done Impact • Expanded cloud deployments for a • Develop/Test Cloud cut server setup time wide range of applications for developers from 15 days to 1 hour • Carefully selected the right workloads to • Blue Insight giving 190K users access to move to cloud platform advanced analytics on +1 petabyte of data • Leveraged “cloudonomics” to achieve • 85% of web conference minutes economies of scale, elastic scaling and supported by cloud better automation • File storage cloud delivered up to 30% • Provided developers with self-service, savings in storage management cost dynamic compute capacity • Production cloud implemented to reduce • Deployed cloud solutions to support cost of managing internal applications collaboration and broaden employee access to analyticsCopyright © The Open Group 2012
  19. 19. Mobility Enablement What we’ve done Impact • User segmentation studies • 100K+ employees connect to internal determine the best fit for mobile networks using handheld devices solution based on job role • Capitalizing on the “consumerization of • Deployed technology to provide IT” to improve employee productivity access to email, contacts and calendaring across mobile platforms - • Mobile devices pivotal to rapid expansion BYOD (Bring Your Own Device) and assimilation of new employees in growth markets • Created an IBM mobile app store, to make it easy for employees to find • Offering 500+ apps –which passed 40K create and use secure business download mark applications • Standards and governance allow for • Use Endpoint Management scaling and consistent innovation technology to fortify security in mobile environmentCopyright © The Open Group 2012
  20. 20. IT Security What we’ve 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 at exposure/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. 21. IBM Transformation Journey:Key Lessons Learned Strategy Enabling Productivity• CEO sponsorship is critical • Business transformation and IT should be closely aligned• Create a “sense of urgency” that the • Don’t automate a mess – fix processes first, organization can rally around then apply IT • Sunset legacy systems and tools as new• Think, act and optimize globally ones are deployed • Take an end-to-end, outside-in view of• Implement governance, performance goals processes and reporting discipline • Build process skills and methodologies• Direct Link to Enterprise Architecture • Need cross-unit leadership and clear accountability Enabling Growth Enabling 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 growth journey • Enhance end-to-end client experienceCopyright © The Open Group 2012
  22. 22. Enterprise Architecture Framework: Describing the Strategic Vision and aHolistic System for Managing the Lifecycle of Current/Future investments. Business Applications Process & Components Business Strategy Investment Cycle Information Technology Development Cycle Investment Planning Decision Support & Data & Infrastructure Developer Criteria Implementation Criteria Guiding Principles & Metrics Standards Cross Unit and Unit Architecture Governance Copyright © The Open Group 2012 22
  23. 23. IBM’s Internal Enterprise Architecture Program: A Frameworkto Design & Plan our Journey to A Smarter Enterprise The New Approach Governance One governance model providing clear direction, focus and executive commitment Globally Integrated Enterpise Vision Execution of the Enterprise Strategy Data/Information Strategic uses of trusted data and data warehouses Application Architecture Infrastructure Strategic applications A cost effective, reliable and used 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 Approach Development Methodology: Adopt the best methods to ensure speed and qualityCopyright © The Open Group 2012 23
  24. 24. The Organizational Alignment plays an Important Role inIBM’s internal IT-Enabled Business Transformation Global Financing Sofware Services Sales Headquarters Geographies Systems Business Transformation Executives Business unit transformation and application portfolio management Development Process Client Facing Transformation Technical Support Executives Enterprise process Supply Chain transformation and Workforce Management application portfolio management Finance CIO • Delivery of operational excellence and business value • Implement enterprise strategy, architecture, standards & governance • Development of global IT workforceCopyright © The Open Group 2012
  25. 25. How to stay on the right track? With EA Governance (with a balanced approach) Optimal Target based on Requirements Unstructured Too Structured •Free-for-all •No room for creativity •Unrepeatable process Governance •Bureaucratic and slow •No metrics •Balanced •Too many metrics •No documentation •Repeatable process •Policy & procedure excess •Relies on ‘heroes’ •Measurable •Often ignored / undermined •Documented and used •Continuously improvedCopyright © The Open Group 2012
  26. 26. The Governance Model is Designed to Make the RightBalance between Accountability, Integration, & Flexibility Senior Vice President Program Sponsorship: Steering Committee • Program Steering Committees – Senior level Senior Vice President sponsorship and accountability Operating Team Chief Information Officer CIO Operating Team Leadership: • Diverse membership drives enterprise integration Membership Domain • Leveraged rotation of members • Process Owners • Business Process • Enterprise portfolio optimization • Business Unit Execs • Data • Geographies • Application • Domain leaders set review standards • Domain Leads • Infrastructure • Initiative funds released by phase • Development • Ongoing assessments ensure value realization Program Management Office Program Management Office Execution: Program Integration Executive • Business, IT and process transformation teamCopyright © The Open Group 2012
  27. 27. EA Governance Framework Our EA Governance Framework had defined: • Structure; • Roles and responsibilities; • Processes: • Compliance • Exception Handling • Communication • Vitality • Metrics; • Decision Mechanisms.Copyright © The Open Group 2012
  28. 28. EA Governance Levels Architecture Role/Responsibility Business/IT Executive Level Steering Committees Direction Strategic (Project Funding/Approval) Architecture Policy & Direction Architecture Review Board Leadership & Sponsorship (Governance/Standards/Processes) Technical Review Board Architecture Compliance at Project Level Tactical Reviews, consults, mentors project teams Business Application Data Technology Architect Architect Architect Architect Project TeamsCopyright © The Open Group 2012
  29. 29. The four essential processes for the successful EA:Vitality, Compliance, Exception Handling and Communication Maintain Architecture Vitality Process Architecture Architecture Portfolio Management Review & Exceptions Approval and Appeals (Compliance) Process Project Management Process Inspect Appeal Information Systems Delivery These four core processes Solutions Delivery are essential for success of Technology The EA program Delivery Architecture Communications Process CommunicateCopyright © The Open Group 2012
  30. 30. EA “Socialization” Training Principles Portal Executive Workshops Role of Technology Value of Technology Compliance Charter: Mission, Vision, & CSFs Use of Technology Guiding e-Business Organizational Structure Website 1 Roles and Responsibilities Principles Guiding Principles Organization Processes & Management Compliance Review and Approval Decision-making Exceptions 2 Vitality Responsibility Governance Communications Selection and Evaluation Criteria Applications Data Systems Network Metrics Location Data Management Management Single Logical Network Make vs Buy Data Ownership Network Management Modular Components Security Data Storage Transition Planning 3 Architecture Tools External Connectivity Applications Development Common User Interface Data Access Operational&Analytical Availability Production System Mgmt Scalability Data Confidentiality Testing & Training Maturity Assessment Refresh Ongoing Education Process and Tools Processes & Tools enable the Architecture Vision Processes Unique Compliance Unique Product/ Product/ Service Service Architecture Architecture Exceptions Enterprise Infrastructure Unique Architecture Vitality Shared Architecture Product/ Unique Service Product/ Architecture Service Architecture Communication Evaluation & Selection Common Architecture Tools CommunicationCopyright © The Open Group 2012
  31. 31. So what about the solutions that need to bedeployed everyday? “Independent Solution Architecture”Copyright © The Open Group 2012
  32. 32. Promoting solutions in compliance with EA Strategic Intent “These are our roadmaps” “Are our target Enterprise architectures still Business right?” Architecture EA Enterprise IT Governance Architecture EA “Are we still Transition moving the Functional right Operational direction?” "Are we designing these systems the way "These are we said we want them "This is the way these the projects done?” systems should be designed” we should do” Solution “Business as Outline Macro Design Micro Design Build Cycle Deployment Usual” project prioritization & planning Solution Macro Design Micro Design Build Cycle Deployment Outline Strategic Solution Delivery Macro Design Micro Design Build Cycle Deployment Outline Programmes & ProjectsCopyright © The Open Group 2012
  33. 33. Lessons Learned:There are challenges to making the EA “actionable” “To-be” The language of The language of Patterns and “As-is” Planners and Solution Creating Building Blocks Inventory Strategists Designers the EA Communicating with Populating the EA with stakeholders in their context information from all domains Challenge in transforming business requirements into implementation Keeping individual projects in Consuming Managing constant synch with the prescribed EA the EA enterprise-wide change Providing Stability for Moving with the Ensuring Guiding Programmes Business Governance PrinciplesCopyright © The Open Group 2012 33
  34. 34. Lessons Learned: Making an EA “actionable” means making moreproductive use of our architectural information “as is” One language of and architecture Creating “to be” the EA Enhanced reporting Simpler and automated and usability to improve harvesting from all communication enterprise resources Integrated business & implementation requirements Integrated IT delivery enabling Governance with enterprise reuse of assets and practices wide change management and Consuming best practices measurement the EA Integrated Version control tooling and publication management Copyright © The Open Group 2012 34
  35. 35. Very important tool: EA Repository Governance Architecture Decision Architecture Management Architecture Model Principles, Policies & Guidelines ManagementRoles / RespManagement Processes Metrics Project A Enterprise Capabilities ABB Business Capability Model Strategic CBM Directions ABB ABB EA Guiding Principles Resources EA Overview Business Scenarios EA Project B ABB Diagram Repository ABB Architectural Domains Business Architecture ABB Business Business Business Activity Mdl Enterprise Event List Structure Purpose-Related ABB Usage Matrices Information Enterprise KPIs Categories ABB Model Artifact Usage Locations Roles Business Reference Architectures Project C All Architectural Technology Architecture Building Blocks ABB IT IT Nodes ABB Components Access through Web-Portal ABB Technology Reference Architectures Powerful Search Capabilities Project D ABB Strategic Gap Analysis ABB Release Management ABB EA EA Neighborhood Neighborhood EA Capability Publication Process ABB Assessment Gaps Ident’n Assessments ABB Project E Transition ABB Transition Initiatives Management Transition Action Plan Management ABB Strategy Critical issues, Integrated opportunities Transition ABB & rec’ns PlanCopyright © The Open Group 2012 ABB
  36. 36. Lessons-Learned: Six Principles to Consider when planning Your Journey to a Smarter Enterprise http://www.ibm.com/smarterplanet/us/en/business_agility/article/transformation.html • 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 realitiesCopyright © The Open Group 201236
  37. 37. Top 10 Lessons Learned from IBM’sInternal IT-Enabled Transformation10. 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 perspectiveCopyright © The Open Group 2012
  38. 38. Agora uma singela homenagem....Copyright © The Open Group 2012
  39. 39. Algumas constatações no início da década de oitenta...Copyright © The Open Group 2012
  40. 40. Há exatos 25 anos ... Em 1987 John A. Zachman (IBM) escreveu no IBM Systems Journal um artigo sobre arquitetura de sistemas de informação, no qual propôs um framework; Em 1990 se aposentou da IBM e montou sua própria empresa de consultoria em arquitetura corporativa; Em 1992 publicou, novamente no IBM Systems Journal, e em parceria com John F. Sowa (também então recém aposentado da IBM) uma versão estendida do artigo original, contendo um nova e definitiva versão do framework.Copyright © The Open Group 2012
  41. 41. Zachman Enterprise Architecture Framework DATA What FUNCTION How NETWORK Where PEOPLE Who TIME When MOTIVATION Why SCOPE List of Things Important List of Processes the List of Locations in which List of Organizations List of Events Significant List of Business Goals/Strat to the Business Business Performs the Business Operates Important to the Business to the Business (CONTEXTUAL) 1987 Planner ENTITY = Class of Function = Class of Node = Major Business People = Major Organizations Time = Major Business Event Ends/Means=Major Bus. Goal/ Business Thing Business Process Location Critical Success Factor 1869 e.g. Semantic Model e.g. Business Process Model e.g. Business Logistics e.g. Work Flow Model e.g. Master Schedule e.g. Business Plan ENTERPRISE System MODEL (CONCEPTUAL) Owner Ent = Business Entity Proc. = Business Process Node = Business Location People = Organization Unit Time = Business Event End = Business Objective Reln = Business Relationship I/O = Business Resources Link = Business Linkage Work = Work Product Cycle = Business Cycle Means = Business Strategy e.g. Logical Data Model e.g. Application Architecture e.g. Distributed System e.g. Human Interface e.g. Processing Structure e.g., Business Rule Model SYSTEM Architecture Architecture MODEL (LOGICAL) Node = I/S Function Ent = Data Entity Proc .= Application Function (Processor, Storage, etc) People = Role Time = System Event End = Structural Assertion Designer Reln = Data Relationship I/O = User Views Link = Line Characteristics Work = Deliverable Cycle = Processing Cycle Means =Action Assertion e.g. Physical Data Model e.g. System Design e.g. Technology Architecture e.g. Presentation Architecture e.g. Control Structure e.g. Rule Design TECHNOLOGY MODEL (PHYSICAL) Node = Hardware/System Builder Ent = Segment/T able/etc. Proc.= Computer Function Software People = User Time = Execute End = Condition Reln = Pointer/Key/etc. I/O = Data Elements/Sets Link = Line Specifications Work = Screen Format Cycle = Component Cycle Means = Action DETAILED e.g. Data Definition e.g. Program e.g. Network Architecture e.g. Security Architecture e.g. Timing Definition e.g. Rule Specification REPRESEN- TATIONS (OUT-OF- CONTEXT) Sub- Contractor Ent = Field Proc.= Language Stmt Node = Addresses People = Identity Time = Interrupt End = Sub-condition Reln = Address I/O = Control Block Link = Protocols Work = Job Cycle = Machine Cycle Means = Step FUNCTIONING e.g. DATA e.g. FUNCTION e.g. NETWORK e.g. ORGANIZATION e.g. SCHEDULE e.g. STRATEGY ENTERPRISE Dimitri Mendeleiev (1834 -1907)Copyright © The Open Group 2012
  42. 42. A “ávore genealógica” dos frameworks de arquitetura Fonte:Copyright © The Open Group 2012
  43. 43. Marcelo Sávio IBM Industry Solutions Architect Open Group Master Certified Architect http://www.linkedin.com/in/msavioCopyright © The Open Group 2012