The document outlines Andres Carvallo's presentation on running IT as a business using the RunITbiz system. It describes the challenges IT organizations face in ensuring demand is met with supply. The RunITbiz system provides a framework and lifecycle for running IT demand and supply as a business through elements like governance, portfolio management, business alignment, and service management. It aims to deliver a fully integrated and self-healing enterprise.

2. © 2001 – 2006 Andres Carvallo
Running IT as a Business:
Delivering a Fully-Integrated
& Self-Healing Enterprise
Andres Carvallo
CIO, Austin Energy
Presenter- 11/6/2006- 2

3. © 2001 – 2006 Andres Carvallo
Agenda
•Challenge
•End Goal
•Solution = Running IT as a Business:
Delivering a Fully-Integrated and Self-
Healing Enterprise
–Introducing the RunITbiz™ System
•12 Questions for you
•Summary
Presenter- 11/6/2006- 3

4. © 2001 – 2006 Andres Carvallo
Challenge: Demand = Supply
Risk Mgmt Value Added Servcies
Scheduling
FSA
CRM
Design
Service Desk
GIS Tool
Inventory
ERP Mgmt
Planning
Oracle Tool
MMS Outage
Work SCADA
Asset Mgmt EMS
Billing SQL Mgmt
Server
MS Office
Portals Professional
EBPP
SCM
Complex Billing
Presenter- 11/6/2006- 4

5. © 2001 – 2006 Andres Carvallo
End Goal: Demand = Supply
Corporate
Legal
Budgeting and Accounting
Regulatory Affairs
Financial Management
Human Resources
EH&S - DSM
Treasury Management
Risk Management Executive Dashboard / Portals / Web Services Controlling
Asset Management
Regulatory Accounting
Workflow / Business Intelligence / DWs / DBs
Contract Management
Purchasing
GenCo RepCo
TransCo & DisCo
EMS / SCADA QSE
Distribution Automation
Load Balancing
Distributed Control Sys Energy Trading
Emissions Mgmt Sys Call Center
CRM / CIS / Billing
Lab Mgmt Sys
Metering
Clean Energy Programs
Materials Mgmt / Asset Mgmt / Facilities Mgmt / GIS
Value-Added Services
CAD / CAE Applications and Tools
Work Management
Portfolio Management / Project Management
PDAs / Smartphones / PCs / Servers / IT Management System / Email / MS Office / App Servers
Voice and Data Networks (Wired / Wireless)
Presenter- 11/6/2006- 5

6. © 2001 – 2006 Andres Carvallo
The RunITbiz™ System
RunITbiz Framework RunITBiz Lifecycle
• Running IT Demand
As A Business:
1. IT Governance
2. IT Structure RunITbiz RunITbiz
3. Portfolio Management
Discovery Program
4. Business Alignment
5. Financial Management (Assessment) (Planning)
6. Marketing & PR
SOA
• Running IT Supply Powered
As A Business:
7. Enterprise Architecture
8. Vendor Management
9. Process Management RunITbiz
10. Project Management Maturity
11. Service Management
Model
12. Quality Management
(Monitor Evolution)Presenter- 11/6/2006- 6

7. © 2001 – 2006 Andres Carvallo
RunITbiz Maturity Model
Austin Energy - Maturity Model
4.5
4
3.5
IT Governance
IT Structure
3 Portfolio M anagement
Business Alignment
Financial M anagement
2.5
M arketing & PR
Enterprise Architecture
2
Vendor M anagement
Process M anagement
Project M anagement
1.5
Service M anagement
Quality M anagement
1
0.5
0
2003 2004 2005 2006 2007
Presenter- 11/6/2006- 7

8. © 2001 – 2006 Andres Carvallo
1. IT Governance
BOD
AE Executive Team
AE Technology Leadership Team
T&D Steering Committee AE Enterprise Architecture Council
Finance Steering Committee AE Technology Security Council
Generation Steering Committee AE Disaster Recovery Council
Customer Care Steering Committee AE Project Management Office
WRM Steering Committee GM/Gov/Leg Steering Committee
Presenter- 11/6/2006- 8

9. © 2001 – 2006 Andres Carvallo
2. IT Structure
CRM Services
ADMIN / PURCHASING / HR / BUDGET/ FINANCE
RM / PMs / BSAs RM / PMs / BSAs
TRAINING / DO CUMENTATION / QUALITY
ESD GEN GM ITT CC FIN WRM
GOV
LGL
Help Desk
PMO & BPIO
WEB & PORTAL SERVICES
DEVELOPMENT & SUPPORT SERVICES
ENTERPRISE SYSTEMS & ENGINEERING SERVICES
ENTERPRISE NETWORKING & ENGINEERING SERVICES
SECURITY / ARCHITECTURE / DISASTER RECOVERY
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10. © 2001 – 2006 Andres Carvallo
3. Portfolio Management
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11. © 2001 – 2006 Andres Carvallo
4. Business Alignment
AE Strategic Plan
Approved Alignment
ITT
Strategic Alignment
Objectives
Direction
Plan
Goals
Alignment
Action Plans Objectives
Direction
Measures Goals
Individual
ITT Action Plans
Accountability
Organization Direction
Measures
Business ITT Department / Work
Strategy and Vision Business Group Level
New Process
Projects Changes
Enterprise
Architecture
Project Requirements
Project Application
Portfolio Portfolio
Future App Portfolio
Application Operations
Maintenance
Business strategy, process refinement,
projects, and applications are all inter-
related. Start with basic improvements to Architects End Users
Business
each, and then drive the big picture. Leaders
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12. © 2001 – 2006 Andres Carvallo
5. Financial Management
Business Process Analysis
Application Rationalization (Streamlining, Retiring)
Managing Demand (Projects, Upgrades, Day-to-Day Usage)
Staffing Cost Alignment and (Out)Sourcing
IT Process Refinement (e.g., Procurement, Inventory Mgmt.)
Infrastructure Centralization, Consolidation, and Unification
Inventory Reconciliation (Asset Management)
Project Prioritization (Project Portfolio Management)
Contracts and Unit Costs (Price Benchmarking)
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13. © 2001 – 2006 Andres Carvallo
6. Marketing & PR
1. Develop and sell vision, mission, working values
2. Product (service catalog), price (units costs), place (customer segments
and locations), promotion (Innovation initiatives, help desk, training,
Intranet, phone, IM, paper, display rooms).
3. Show leadership to your peers in the
business to achieve their goals, talk
the language of the business. Talk
about solving problems - Focus on
solutions, not technology.
4. Get feedback continuously and tune
your plans.
5. Anticipate needs and share – Stay
ahead of the business with research
for new solutions. Think Life cycle
management
6. Celebrate your successes - Invest in recognition and enjoying the journey.
7. Apply for awards - Invest time in getting industry recognition for your
programs, vision, plans.
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14. © 2001 – 2006 Andres Carvallo
7. Enterprise Architecture
From Legacy to SOA
Banking Template Any Template
Retail Template
Electric Utility Template
Corporate Budgeting and Accounting
Legal, Regulatory Affairs
Financial Management
Human Resources
EH&S, DSM
Treasury Management
Risk Management
Executive Dashboard / Portals / Web Services Controlling
Asset Management
Regulatory Accounting
Workflow / Business Intelligence / DWs / DBs
Contract Management
Purchasing
GenCo RepCo
TransCo & DisCo
EMS / SCADA QSE
Load Balancing Distribution Automation
Distributed Control Sys Energy Trading
Emissions Mgmt Sys Call Center
CRM / CIS / Billing
Lab Mgmt Sys
Metering
Materials Mgmt / Asset Mgmt / Facilities Mgmt / GIS Clean Energy Programs
Value-Added Services
CAD / CAE Applications and Tools
Work Management
Portfolio Management / Project Management
PDAs / Smartphones / PCs / Servers / IT Management System / Email / MS Office / App Servers
Voice and Data Networks (Wired / Wireless)
Presenter- 11/6/2006- 14

15. © 2001 – 2006 Andres Carvallo
8. Vendor Management
1981 1986 1991 1996 2001 2002
CA MSFT MSFT IBM
MSA Lotus
MSFT CA Oracle MSFT
Cullinet
Informatics
MSA Lotus Oracle CA Oracle
ADR
MSFT Oracle SAP SAP SAP
Cincom
CA D&B Novell CA
Cullinet Compuware
BMC Siebel
Uccel Sybase
Pansophic WordPerfect
D&B Novell
Wyly PeopleSoft PeopleSoft
Informix
SAP Adobe Novell
M&D ADR Compuware
Software AG SAS SAS BMC
Aston-Tate
Software Int'l
CA SAS BMC
Sterling Adobe Intuit
High End
Sustaining
“Jump!”
Unix/RISC
Innovation
Performance
Low End
Wintel 95 Web
Wireless
Linux
Disruptive
Market Disruptions
Innovation Time
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16. © 2001 – 2006 Andres Carvallo
9. Process Management
quot;95% of a
problem is
due to the
process and
only 5% due to
people.quot;
Edward
Deming,
Management
Expert
Presenter- 11/6/2006- 16

17. © 2001 – 2006 Andres Carvallo
10. Project Management
Home
Welcome to the ITT
Project Management
Process.
The Project
Management Process
is a project
management platform
hat integrates quot;all
things usefulquot; into an
easy to access, use,
and improve quot;best
practicequot; for project
management.
Provided are scalable
workflows, step by
step project guidance,
resource suggestions,
templates, PM
information, and
project management
process owners
and mentors.
Presenter- 11/6/2006- 17

18. © 2001 – 2006 Andres Carvallo
11. Service Management
Strategy Policy Strategic Management:
Vision Define vision, strategies
and policies. Planning and
Mission long-term control over quality,
Business/IT Alignment
stability and flexibility.
Tactics Processes Tactical Management:
Service
Level
Develop plan, build process,
Agreement Availability
availability of resources.
Capacity Management
Guarantee quality, stability
Management
and flexibility.
IT Service
Financial Continuity
Management Management
Operations Procedures Operational Management:
Incident
Management
Follow through on procedures
Configuration
Management
and daily activities. Achieve
Problem
Service Desk
Management
quality, stability and flexibility.
Change
Release
Management
Management
Presenter- 11/6/2006- 18

19. © 2001 – 2006 Andres Carvallo
12. Quality Management
High
TCO
CMMI
ITIL
IT Relevance
CobiT
Six
Sigma
ISO
IT Organizations would do well
by following these three first. Malcolm
Baldrige
Scorecards
Level of Abstraction High
Presenter- 11/6/2006- 19

20. © 2001 – 2006 Andres Carvallo
How did you do?
Yes to 9 - 12 questions = 75% +
Yes to 5 - 8 questions = 41% +
Yes to 1 - 4 questions = Trouble
No to 0 - 8 = Need to call me
Presenter- 11/6/2006- 20

21. © 2001 – 2006 Andres Carvallo
Summary - The RunITbiz™ System
RunITbiz Framework RunITBiz Lifecycle
• Running IT Demand
As A Business:
1. IT Governance
2. IT Structure RunITbiz RunITbiz
3. Portfolio Management
Discovery Program
4. Business Alignment
(Assessment) (Planning)
5. Financial Management
6. Marketing & PR
SOA
• Running IT Supply Powered
As A Business:
7. Enterprise Architecture
8. Vendor Management
RunITbiz
9. Process Management
10. Project Management Maturity
11. Service Management
Model
12. Quality Management
(Monitor Evolution)
Presenter- 11/6/2006- 21

22. © 2001 – 2006 Andres Carvallo
Any Questions???
Andres.carvallo@austinenergy.com
Tel. 512-322-6401
Presenter- 11/6/2006- 22