organization of it at anheuser-busch. being a large publicly traded company with annual gross sales...

Organization of IT at Anheuser-BuschOrganization of IT at Anheuser-Busch

Being a large publicly traded company with annual gross sales totaling over $16 Billion, and net income of just over $2 Billion in 20031, Anheuser-Busch is a huge economic force in America. Anheuser-Busch has several large divisions and subsidiaries: a world-class brewery, a renowned media group, successful theme parks, and many other ventures that make it a diverse company with a high demand and need for integration of IT with its business services.

Source: Anheuser-Busch Companies, “2003 Annual Report” http://www.anheuserbusch.com/annual/2003/complete_ar.pdf, viewed October 3, 2004.

Company OverviewCompany Overview

• Headcount of entire organization - 23,216 people1

• Gross Sales - $16.3 Billion1

• Net Income - $2 Billion1

• Worldwide Sales Volume - 109.8 million barrels2

• Domestic Market Share - 49.2%2

1. Source: Anheuser-Busch Companies, “2003 Annual Report” http://www.anheuserbusch.com/annual/2003/complete_ar.pdf, viewed October 3, 2004.

2. Source: Anheuser-Busch Companies, “Anheuser-Busch At A Glance” http://www.anheuserbusch.com/publications/AtaGlance03.pdf, viewed October 3, 2004.

Company Company OverviewOverview

Robert J. Byrne - Vice President and Chief Information Officer

ResponsibilitiesResponsibilities

Data Center Operations Network and Communications Services

Desktop Services Application and Web Development

Support and Maintenance for AB Applications Worldwide Information Technology Services

IT Performance Management

Source: Robert J. Byrne, VP & CIO of Anheuser-Busch CompaniesInterviewed via email, September 28 - October 4, 2004.

IntervieweeInterviewee

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Data Center Operations: includes all centralized information processing for the company

Network & Communication Services: includes all phones, pagers, e-mail, network and all other communication services

Application Development:

• Supply chain & AB International systems

• Sales & marketing systems

• Finance & HR systems

• Procurement & maintenance systems

• Busch Entertainment & Corporation systems

• AB Packaging group systems

Information Technology Services:

• Financial services for the organization

• Information management & retention for the corp.

• Information protection & IT disaster recovery

Technology Development: includes Enterprise Architecture, New Technologies integration, services acquisition for IT including contract labor

IT Performance Management:

• Internal Business Partner Planning for IT inventories and IT standards

• IT communications

• Process Improvement and Deployment

• Training and Management Development

HR for the IT division


Responsibilities DefinedResponsibilities Defined

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CIO

Sr. Director of Operations

Sr. Director for App Dev, Support & Maint. BEER

DirectorIT Services

Sr. Director for App Dev, Support & Maint. CORPORATE SYSTEMS

DirectorTechnology Development

Sr. Director for App Dev, Support & Maint. SALES & MARKETING SYSTEMS

DirectorHuman Resources

Sr. DirectorBusch Entertainment Systems

DirectorPerformance Management


Report StructureReport Structure

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Meet with each direct report privately for 30 minutes each week to discuss key projects and departmental issues

Conduct 3 to 4-hour staff meetings with the entire group 3 times a month

During the staff meetings the team reviews detail reports on company sales, theme park attendance, major IT projects, metrics, and major issues of universal interest

The IT project presentations are formal and include details on timelines, costs, ROI calculations, key issues, etc


Management StructureManagement Structure

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Review major IT projects on a continual basis, via capital approval boards, budget reviews, annual strategy planning reviews and IT project portfolio reviews

Key points of interest include timelines, costs, ROI calculations, key issues, etc.

Each officer in the corporation is involved in the IT function since the IT systems are key to the success of their business functions

Board approval presentations are formal

Project portfolio reviews are informal in a round table-type setting

As part of the Finance Division providing key financial and business services to every department within company, the IT organization is directly involved in the financial decisions of AB.


C-Level ExecutivesC-Level Executives

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Joint effort between IT and their business partner customers

The business units prioritize new projects based on ROI and other business requirements

IT costs out new project development as well as annual support and maintenance expenses

Exact budget for company is confidential but in general terms, it runs close to 1.5% of net company sales

Total company revenues in 2003 were $16.3 Billion

On average, the investment in IT has increased in the 3% to 5% range each year during the past 8 years

A general breakdown of the IT budget is as follows

• 48% Application Development

• 27% Operations (Desktop, Data Center, and Network Services)

• 25% General and Administrative Expenses including building rent and internal IT operations expenses


IT Budget DevelopmentIT Budget Development

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Headcount of entire organization - 23,216 people

Current IT headcount including AB employees and contract personnel is roughly 1,200

IT staff represents approximately 5% of total employees


HeadcountHeadcount

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• Representative of information reviewed by CIO and direct report

• Presented to Business Units after Pre-funding Review Approval

• Project implemented after Business Unit Approval


Project Pre-funding Project Pre-funding ReviewReview

Integrated Learning Reporting CIO Pre-Funding Review

Champion: Training DepartmentWho Pays: Training Department

Stakeholders: Training Department, Outside Third PartiesFunding: company confidential

Timeframe: 200XProject Manager: Individual within IT department

August 200X

Internal Internal PresentationPresentation

The following slides are an internal presentation from Anheuser-Busch. Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies. Obtained via email, October 4, 2004.

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Executive Summary

Project Manager:

Operations Project Manager:

Business Strategy: Increase Service Level

Business Unit: Training department

Project Scope & Objectives: Situation: There is currently no effective method to evaluate training activity (registrations, completions, etc) provided by the department. A robust reporting tool is necessary to measure compliance with the training component of the agreement with the third parties.

IT will provide the requesting customers with the ability to access standard and ad-hoc training activity reports.

Scope/Objectives:• Integrate information from multiple training systems into a data repository.• Build a custom web based application for standard training activity reports.• Use Business Objects (WebI) to provide the customer with flexible ad-hoc reports.• Migrate existing training activity reports to the new system.

Benefits: • Maximize benefits of training spend by optimizing course offerings.• Increased training participation levels.• Improved reporting capabilities for personnel and the independent third parties.• Increase AB’s ability to measure completing the training component of the agreement with the third parties.• Reduced maintenance and new development costs for training activity reports.• Graphing web service components that could potentially be made available enterprise wide.

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Executive Summary

Key Requirements (Business): • Standard training activity reports for

• Training department• Field Sales• Independent third parties

Ad-hoc wholesaler training activity reports for Training department

Roles & Responsibilities: • HR Systems - Project Management • HR Systems – Domain Architect• HR Systems – Data Architect• Operations - Project Management• Information Protection• Enterprise Operations Management• Enterprise Applications Management – AB-UP mentor • Database Administration • Network Services • Training Department

Summary of Project Costs: (Not available for external use) AD Labor OPS Labor Total Development Capital Grand Total

Tentative Schedule:To be completed by year-end 200X

Initial Risks: • Scope management.• Securing the appropriate internal resources from MIS Operations areas.• Tight schedule expectations since the business sponsor wants the project completed in 200X.• Security control for external access of internal data.• Web Services is an existing but emerging technology to the company and will require support by Enterprise Application Management and Information Protection.

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Executive Summary

RetiringLegend Existing New/ChangingFuture

Application Architecture Context Diagram

The detailed Architecture Context Diagram is not available externally.

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Table of Contents

1 Introduction

• 1.1 Business Problems/Opportunities

• 1.2 Summary Project Recommendations

2 Scope & Objectives

• 2.1 Business Objectives

• 2.2 Project Dependencies

• 2.3 Initial Project Scope

3 Project Approach

• 3.1 Proposed Project Approach/Delivery Strategy– 3.1.1 Detailed Deliverables

– 3.1.2 Milestones and Impact

• 3.2 Constraints

• 3.3 Assumptions

• 3.4 Risk Assessment and Risk Management

• 3.5 Governing Agreement

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Table of Contents

4 Roles and Responsibilities

5 Initial Project Plan and Estimated Costs and Schedule

• 5.1 Funding Request Breakdown– 5.1.1 Project Cost Detail

• 5.2 Project Timeline

• 5.3 Business Benefit(s)

• 5.4 Measures

• 5.5 Change Control

6 Approval

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1.1 Business Problems/Opportunities

Business ProblemThere is currently no effective method to evaluate courses provided by the Training Department. There is a requirement to create a production system to report against current and historical Integrated Learning system training data. This system needs to be supportable and delivered to internal personnel and to the appropriate third parties.

The new reporting system will need to be flexible and scalable, as the users have access to the data, more requirements for reports will be generated.

Training Department Business NeedsImproved reporting capabilities to allow the department to analyze data from multiple source systems. Based on this combined data, the training department will:

• Evaluate course participation and make business decisions for future course offerings.• Reduce costs by optimizing course offerings.• Evaluate participation levels to increase participation.• Evaluate the participation for individual courses based on the media type (satellite, web

based training or live classroom) to determine the most effective delivery mechanism.• Evaluate role based training requirements and summarized participation information to

determine frequency courses need to be offered.• Determine an individual course’s cost effectiveness (compare the cost of

producing/providing a course against the number of break-even course participants).

Business Drivers • The current agreement requires tracking of third party certifications.

• Even though training is not required for certification, the training courses are designed to increase the skill sets necessary for certification.

• Improved reporting capabilities for appropriate third parties to track individual staff’s training.

• Appropriate third parties can use this information to determine what courses their personnel need.

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1.2 Summary Project Recommendations

IT evaluated multiple conceptual design approaches based on the business requirements and appropriate infrastructure required to support the business requirements. Based on this analysis, the following recommendation was made:

• A custom web based application will support the independent third parties personnel accessing the system from the Internet via the secured extranet environment.

• The custom internet application would be replicated internally within the

intranet to provide the same reports to the Field Sales and Training Department personnel.

• XXXXXXXXXX would be used to provide ad-hoc reporting capabilities to the Training Department.

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2.1 Business Objectives

Objectives

• Deliver a supportable, flexible, and maintainable Interactive Learning reporting system that is accessible to internal personnel and appropriate third parties.

• Provide training related reporting capabilities that is not currently available. • Provide information that will help the company make better business decisions

relating to training.

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2.2 Project Dependencies

Other Projects / Initiatives Dependent on the Project• None

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2.3 Initial Project Scope

In Scope:

1. Integrate information from multiple systems including the Interactive Distance Learning system, the educational management system that includes registrations, and the enterprise data warehouse so that the information may be accessed for training related reports.

2. Build a custom web based application used to request training related reports. Training Department and Field Services will access via the intranet Third parties will access via the secured extranet connection.

3. Create a standard user interface for the custom web based application with business logic to filter options based on user role.

4. Existing reports will be available in the new system.Third Party Participation Training Administration• Login Site Participation * Web Based Training Participation Details • Satellite Registration * Satellite Registrations by Time and

Course• Satellite Completions * Course Attendance by Media Type• Students Logged In * Course Utilization• Student Satellite Registration• Student Satellite Completions

5. Ad-hoc reporting capabilities for Training Department to run reports to evaluate training data and define future reporting requirements.

6. Begin analysis to define additional training related data that will be accessed for future training related reports.

Out of Scope:

1. Integration with other training system replacements or enhancements.

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3.1 Proposed Project Approach/Delivery Strategy

The following tasks will be used to implement the new reporting system.

1. Participate in all standard QA related reviews and audits.

2. Finalize application and infrastructure design.

3. Design, develop, test, implement and load new reporting system database.

4. With the participation of EAM, develop, test, and implement new web services that will be created to support passing data between the new database and the custom application.

5. Develop, test, and implement custom web based application for accessing training related reports.

6. Develop ad-hoc reporting capabilities for the Training Department.

7. Test reporting results.

8. Implement new application(s) in production.

9. Document requirements for future phases including new reports and future learning data source systems.

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3.1.1 Detailed Deliverables

The project deliverables from each of the 4 phases are identified below.• Inception

– Project Plan– Use Case Model Survey– Glossary– Non-functional requirements

• Elaboration

– Iteration plan– Use Case Specifications– Skeletal Class Diagram– Key Sequence or Collaboration Diagrams– Logical Data Model– Change Orders and Decisions

• Construction

– Source Code and Related Unit Tests– Implementation Plan– Acceptance Test Plans

• Transition

– Acceptance Test Results– Application or Website Usage Statistics– User Satisfaction Surveys

The project deliverables will include:.• Web based application that the appropriate third parties, the Training Department, and Field

Sales can use to access training related reports.

• XXXXXX reporting capabilities for the Training Department to run ad-hoc reports to evaluate training data and define future reporting requirements.

• Existing reports that will be available in the new system: – Login Site Participation - Web Based Training Participation Details

– Satellite Registrations - Satellite Registrations by Time and Course

– Satellite Completions - Course Attendance by Media Type

– Students Logged In - Course Utilization

– Student Satellite Registrations

– Student Satellite Completions

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3.1.2 Milestones & Impact

Project Milestones & Estimated Completion

Organizational Impact• The Training Department and Field Sales will be able to make training business

decisions based on related training reports.

• The Training Department will have the ability to create their own ad-hoc reports; therefore, the support costs for these reports will be minimized and potentially eliminated.

• The Application Development support team will reduce the amount of work to create new custom training related report requests; therefore, the support costs will eventually be reduced.

Major Milestones End Date

1 Inception Aug

2 Elaboration Sep

3 Construction (including testing) Oct/Nov

4 Transition Nov

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3.2 Constraints

Resources

• Availability for timely internal IT resources to define strategy, technical resources for development, and Information Protection risk assessment of technical solution

• Customer involvement and commitment throughout project

Technical

• Web Services is an existing but new technology that will require support by EAM and IP.

Time

• Project must be completed in 200X.

Budgetary

• Project dependent on budgetary approval.

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3.3 Assumptions Reporting requirements are summary in nature and therefore do not require real-

time updates to the reporting system. The data used to create the reports will be deleted nightly and reloaded from the source systems.

The reporting application will use the existing user profile information to automatically filter reports based on the user’s role.

Three data sources have been identified to supply the data for reporting:

Interactive Distance Learning system that contains satellite course information

Education Management System that contains registrations and completions for all appropriate third party related courses

Enterprise Data Warehouse that contains organizational and territorial data about appropriate third parties and field sales representatives

Continued development of existing report system is on-hold while the new system is designed and developed.

Appropriate development resources will be available for this project

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3.4 Risk Assessment & Risk Management Risk Management

Risk Description Status Comments Action Items

Scope Management To protect the viability of the current approved Project Definition

Scope can change frequently.

Agreed on initial scope. Continue to review project progress with customers in context of the current scope. Any scope changes occur through Change Control process.

Resources Knowledgeable resources are required for this project

Resource Availability and commitment – Securing internal resources

Experienced application architect and developer will be assignment to project and can mentor any junior developers.

Additional resources will be secured and fully dedicated to this project.

Schedule Tight timeframe to deliver project

Availability of resources could push the project start date and impact ability to complete in 2004

Resources have been identified and will be dedicated 100%.

Technical Web Services are required for this project

Emerging technology that still has some security concerns

Review proposed solution with all appropriate groups including Information Protection.

Work with EAM mentor to review design and code.

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3.5 Governing Agreements

The approved Development Agreement will be used as the governing agreement for this project.

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4 Roles & Responsibilities

Role ResponsibilityBusiness Sponsor Responsible for providing scope, direction, approval, and funding for the project.

Identifies necessary Subject Matter Experts (SMEs) and their roles within the project.

Application Development Project Manager

Responsible for day-to-day project activities including planning, monitoring, and reporting progress to the business sponsor. Also responsible for creating project deliverables, overseeing project change control, tracking progress, and documenting future business requirements, coordinating system integration and customer acceptance testing.

Application Development Web Developers (2)

Responsible for designing, coding, and testing the custom reporting system.

Business Objects Developer Responsible for designing, coding, and testing an ad-hoc reporting system that can be used to create flexible/dynamic Training Department reports.

Domain Architect Responsible for ensuring applications conform to all of AB’s standards.

Data Architect Responsible for data analysis and design for logical and physical data model to support the new reporting system.

Ops Project Manager Coordinates resources and activities for Operations resources.

Information Security Performs IT security audits and assessment.

EOM – Web Ops Responsible for architecture reviews, stress testing, and external infrastructure.

DBA Responsible for testing, tuning, and maintaining new reporting database.

Network Services Responsible for defining data flow, network connectivity, and bandwidth consumption.

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5.1 Funding Breakdown

Total Estimated Project Costs:– Expense: $

– Support: $

– Capital: $

Cost of the project will be funded as follows:

–

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5.2 Project Timeline

Elaboration

Inception

Qtr 4Qtr 3

Construction/Testing

Implementation

Project Preparation

Jul Aug Sep Oct

•Develop Agreement•Project Funding•Technical Approvals•Ramp Up & Resource Acquisition

• Database logical & physical data model• Web services

•Connectivity to database•Graphics

• Custom application•User Interfaces

20XX 20XX

Nov Dec

•Application Architecture Design

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5.3 Business Benefits

Benefits

• Allow appropriate third parties access to training related reports that are not currently available to them.

• Appropriate third parties use training related information to make better training choices.

• Reduce costs by optimizing course offerings.

• Allow appropriate third parties to review training related information daily and adjust personnel training schedules accordingly.

• Allow appropriate third parties to assure proper training is available to meet the terms of the agreement.

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5.4 Measures

Project Metrics

• Project costs at or below approved funding

• Delivery of Product is early or on-time

• Percentage of milestones met as planned

• Actual hours to do tasks vs. baseline

• Number of defects

• Lines of code

Metric Measurement

• Weekly project plan reviews

• Post-implementation customer reviews

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5.5 Change Control

Change Control Log

• The Change Control Log represents any modifications to the content of this document. Upon approval, a Change Control Log will be established, and changes will be review and approved by IT and the business sponsor.

• All work products will adhere to the Sarbanes-Oxley configuration policy and standards.

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Approvers:

• VP of Training Department

• Director of Applications Development

Reviewers:• Applications Development Manager

• Applications Development Project Manager

• Applications Development Domain Architect

• Operations Project Manager

6 Approval6.0 Approval

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SummarSummaryy

Anheuser-Busch’s IT department has specific views on how they are to relate to the company. Robert Byrne states:

“We are not an information technology company ... we are a beer company. The last message in the world our IT organization wants to send to our company is that there are 1,200 IT people sitting around dreaming up IT solutions to business problems that do not exist. We are a group of 1,200 business people who happen to manage IT. There will be no information technology driven initiatives ... everything we do is a business initiative enabled by IT”

Here Mr. Byrne defines the reason that IT exists at Anheuser-Busch:

•Business Growth through the systems we build, run and maintain for our customers and through the business strategies we support•Cost Reduction in the business initiatives we deliver that are enabled by IT•Standardization and Service Excellence in our delivery to internal and external customers and in the maintenance and replacement of IT infrastructure, hardware and software


organization of it at anheuser-busch. being a large publicly traded company with annual gross sales...

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