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

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

Marcelo Sávio
IBM Industry Solutions Architect
Open Group Master Certified Architect
http://www.linkedin.com/in/msavio

Copyright © The Open Group 2012

Agenda

1. The IBM Transformation Journey story

2. The importance of an Enterprise Architecture
framework and governance in that journey

3. Some lessons learned


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 years


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 Capture


(Back to School) The Four Operating Models Source:


(Back to School) Creating a “Foundation for Execution”
Source:


IBM Internal Transformation Principles:
Simplification, Standardization, Integration and Flexibility

Open Infrastructure Value

Integration

Innovation
Systems Organization

Standardization Simplification

Processes
Globally Integrated Enterprise


IBM’s Transformation Framework: A Systematic
Approach 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 change


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 processes

9

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 Integration


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 globally


• 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 Business


IBM as a Social Business
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 others


IBM as a Social Business

• 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 profiles


IT Enablement
• 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 data


IT Enablement
• 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 4,500

Categorization of Applications in the Portfolio Helps to
Balance 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 None

Copyright © The Open Group 2012 17

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 analytics


Mobility Enablement
• 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
environment


IT Security

• 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 time


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 experience

Enterprise Architecture Framework: Describing the Strategic Vision and a
Holistic 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


IBM’s Internal Enterprise Architecture Program: A Framework
to 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 quality


The Organizational Alignment plays an Important Role in
IBM’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 workforce


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 improved


The Governance Model is Designed to Make the Right
Balance 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 team


EA Governance Framework

Our EA Governance Framework had defined:

• Structure;
• Roles and responsibilities;
• Processes:
• Compliance
• Exception Handling
• Communication
• Vitality
• Metrics;
• Decision Mechanisms.


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 Teams


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 Communicate


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
Communication


So what about the solutions that need to be
deployed everyday?

“Independent
Solution Architecture”


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
Outline

Strategic
Solution
Delivery
Outline
Programmes
& Projects


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
Principles


Lessons Learned: Making an EA “actionable” means making more
productive 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


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 Plan
Copyright © The Open Group 2012 ABB

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 realities

36

Top 10 Lessons Learned from IBM’s
Internal IT-Enabled Transformation
10. 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 perspective


Agora uma singela
homenagem....


Algumas constatações no início da
década de oitenta...


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.


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)


A “ávore genealógica” dos frameworks de arquitetura
Fonte:


Marcelo Sávio
IBM Industry Solutions Architect
Open Group Master Certified Architect
http://www.linkedin.com/in/msavio


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

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