© 2008 hewlett-packard development company, l.p. the information contained herein is subject to...
TRANSCRIPT
© 2008 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice.
IT Transformation& Linkages with EA
CHARY CHIGURALADirector - Strategy, Transformation & Governance
NOTE: Certain slides are intentionally deleted for confidentiality purposes
2
Why Transformation?
• Globalisation
• Diversification
• Optimisation
• Innovation
Optimization
InnovationTransformati
onDiversificati
on
Globalisation
Fluid Business Environment
3Source: IT spending-IDC Black Book, Nov. 2006; GWP-EIU, Nov. 2006
Gross World Product
Cum
ula
tive G
row
th 1
99
0-2
00
6 100%
80%
60%
40%
20%
0%
’94 ’96 ’98 ’00 ’02 ’04 ’06’92
IT spend outpaced world growth
IT Spending
Investment in technology is coming down, while IT labour growing
4
Role of IT has Significantly Changed
Procure M
ake
Colle
ct
Sell
Move
XYZ Ltd
Make – Move – Sell
Sales
Sales
Digital NervousSystem
Sales
Sales
Sales
SalesSales
Procure Make
Move
Sell
Colle
ct
Speed 1970s
Leverage1980s
Speed and Leverage
Today
Not about centralisation and decentralisation; its about leverage and speedMaking a compelling case for Transformation
5
What is IT Transformation?
• Both Sides of the Equation − IT Function Efficiency
Budget Management Workforce Management Project Management Infrastructure Applications IT Operations
– IT Powering the Business Strategy Financial Process Operations
IT FunctionFaster, Better,
Cheaper
IT a ‘Powerhouse’ for Business Growth
Budget
WF Project
Infra Apps Ops
Strategy
ProcessOperation
s
Financial
ITT
HP defines ITT as making ‘fundamental changes to IT’ to drive business outcomes
6
Approach – Built on Lessons Learnt
Transformation Workshop
Transformation Planning
Transformation
Implementation
3 Days 3 Months 3 Years
Complex journey but there is a simple and structured way to start
7
Role of Enterprise Architecture – Change Agent
EA is at the cross roads of business and technology
The enterprise architecture is a design for the arrangement and interoperation of business components (e.g., workers, policies, operations, infrastructure, information) that together make up the enterprise's means of operation, along with principles and plans governing their evolution over time.
The EA helps model the desired changes taking into account existing systems & processes, envisioned abilities, business interdependencies, operational roadblocks and talent challenges.
Monumental effort - need to be a group of people comprising Office of the Enterprise Architect
8
EA Engagement Inputs and Outputs
Implement
Sustain EADeveloped
Solution
OperationalHandover ofSustain EA
Define EASolution
ImplementedSustain EASolution
Sustain EASolutionDesign
DevelopDesign
Sustainable EA Engagement
Sustainable Enterprise Architecture Operations
Assess & AlignDiscover
ITGovernance
Model
CurrentEA Models
Future EA Models
OperationalEA Governance
EAGovernance
Model
MaintainedEA Models
IT Strategy Engagement
Manage
Authorized EAChange
Requests
EAEnvironment
Support
EA Analytics for
Business
MaintainedEA Related
Assets
Assess & Align
9
Decision Support
Consolidated Demand
IT Financial Management
Service Driven Operations
Consolidated service desk
Request
Incident Problem
Change
Asset Management
Inventory
Contracts Finance Chargebac
k
SLM
Vendor mgntCost mgnt
Procurement
Service request management
IT Services/UserNew Applications & Enhancements
Testing
Quality Assessment
Validation
Strategic Projects
Release
Consolidated Operations
Server Storage Network
Portfolio Mgnt
Prioritize
Allo
cate
reso
urc
es
CapitalPeople
Infrastructure
Service definition
Business Service Management
B-SLMAnalytics
Program MgntProject
Time
Resource
Con
fig
ure
& P
rovis
ion
Serv
ice D
ep
en
den
cy
Map
pin
g
BUSINESS
PLAN DELIVER OPERATE
Portfolio Mgmt - A Single Portfolio Planning calendar is shared by both IT and Business Managers
10
Coherent plan is critical to begin Transformation journey
Illustrative
BusinessTransformation
Rationalise, centralise/
virtualise IT Infra(eg, Data Centers,servers, storage)
Rationalise, Centralise/virtualise
IT Apps
Rationalise & centralise data marts
Manage backbone Critical systems suchas SAP/SCM systems
Strategically alignBusiness with market
changes
Align core biz processes, IT with business strategy
(EA)
Develop self-funding biz case with prpject
prioritisation
Bu
siness
Gro
wth
Op. Exc
elle
nce
Bu
s In
novati
on
Clien
t O
utc
om
es
Architect appsbased on re-usability
BI/CRM Apps forImproving biz info
Establish Arch office & improve Arch Gov
Talent alignment
Best practice IT Expenditure Mgmt
Establish project portfolio mgmt
discipline & tools
Define IT Expend approval guidelines &
standards
Define IT Gov Struct, decision rights & IT
risk mgmt
Shared Services for Core biz processes/
Core systems
Define service catalog, SLAs, KPIs, &
charge back
Define culture, skills, reporting &
relationship mgmt
Strategy Functions Within
AMS
ITC/DCC
EDW/BI
Arch Mgmt
Best Practice IT
Gov & Portfolio Mgmt
Transformation Journey
Non-core/support Biz processes &
systems
Applications Development &
Support
InfrastructureSupport
Functions Outsourced
11
Final Thoughts
• Whilst complex, there is a simple and structured way to start
• Begin small, meaningful and measurable
• Plan for contingency at every stage of the journey
• Establish a Governance Structure with Business CXOs
• Audit the results by 'CFO' as an independent referee
