CMMI for AcquisitionOrganizations: The Next Wave of

Outsourcing

2006 SEPG, Nashville

CMMI for AcquisitionOrganizations: The Next Wave of

Outsourcing

2006 SEPG, Nashville

Fred KilleenChief Technology Officer and Directorof the Systems Development Factory,

General Motors Corporation

Fred KilleenChief Technology Officer and Directorof the Systems Development Factory,

General Motors Corporation

Our Products1 in every 6 cars built in the world is from the GM AutomotiveNetwork

Our Products1 in every 6 cars built in the world is from the GM AutomotiveNetwork

GMCGMC ChevroletChevrolet CadillacCadillac SaturnSaturn

VauxhallVauxhall OpelOpel

BuickBuickDaewooDaewooPontiacPontiacHummerHummer

SaabSaab HoldenHolden

General Motors CorporationGeneral Motors Corporation

World’s largest providerof transportationproducts and relatedservices

Sells products in morethan 200 countries

Manufacturing operationsfacilities in 33 countries

World’s largest providerof transportationproducts and relatedservices

Sells products in morethan 200 countries

Manufacturing operationsfacilities in 33 countries

Sold 9.17 million cars andtrucks globally in 2005

327,000 global employees 14,000 dealers help GM

deliver to the market 2005 revenue of $193

billion

Sold 9.17 million cars andtrucks globally in 2005

327,000 global employees 14,000 dealers help GM

deliver to the market 2005 revenue of $193

billion

Manufacturing at GMManufacturing at GM

375 million sq ft of375 million sq ft ofManufacturing spaceManufacturing space

including Joint Venturesincluding Joint Ventures

$104 billion of material$104 billion of materialand services purchasedand services purchased

annuallyannually

14 million pounds of14 million pounds ofmaterial received dailymaterial received daily

178 Plants located in178 Plants located in33 Countries33 Countries

Approximately 5,000Approximately 5,000parts in each vehicleparts in each vehicle

3,200 sources provide3,200 sources providedelivery "just in time"delivery "just in time"

Why IT Means Business atGeneral Motors?

Why IT Means Business atGeneral Motors?

Crash Tests Through the YearsCrash Tests Through the Years

Crash Tests TodayCrash Tests Today

Visualizing Product Before BuildVisualizing Product Before Build

OnStar: Innovative Services forSubscribersOnStar: Innovative Services forSubscribers

Automatic Airbag Crash NotificationOnStar Vehicle Diagnostics which is a

monthly email from vehicle to itsowner

Turn by Turn which is a newnavigation service that has justlaunched

OnStar is the 2005 CIO EnterpriseValue Awards Grand Winner

Automatic Airbag Crash NotificationOnStar Vehicle Diagnostics which is a

monthly email from vehicle to itsowner

Turn by Turn which is a newnavigation service that has justlaunched

OnStar is the 2005 CIO EnterpriseValue Awards Grand Winner

The IT Outsourcing Process at GMThe IT Outsourcing Process at GM

ITITSupplierSupplier

FirstGeneration1984-1996

FirstGeneration1984-1996

GM purchasesEDS: all ITemployeestransferred toEDS

GM purchasesEDS: all ITemployeestransferred toEDS

ITSupplier

ITITSupplierSupplier

ITSupplier

ITITSupplierSupplier

ITSupplier

ITITSupplierSupplier

ITSupplier

ITITSupplierSupplier

ITSupplier

ITITSupplierSupplier

ITSupplier

ITSupplier

SecondGeneration1996-2003

SecondGeneration1996-2003

EDS business unitsplit off

GM IT formed

Adoption of CMMI

EDS business unitsplit off

GM IT formed

Adoption of CMMI

Enterprise Enterprise

ManagementManagement

ITSupplier

ITITSupplierSupplier

ITSupplier

ITITSupplierSupplier

ITSupplier

ITITSupplierSupplier

ITSupplier

ITITSupplierSupplier

ITSupplier

ITITSupplierSupplier

ITSupplier

ITSupplier

Third Generation2003→

Third Generation2003→

Multi-Supplierenvironment

Business ProcessOutsourcing

CMMI for Acquisition

Multi-Supplierenvironment

Business ProcessOutsourcing

CMMI for Acquisition

Standardize IT ProcessesStandardize IT Processes MeasureBusinessResults

ProjectManagement

ProjectManagement

SystemRequirementsDevelopment

SystemRequirementsDevelopment

System Code& DocumentManagement

System Code& DocumentManagement

SystemVerification &

Validation

SystemVerification &

Validation

IncidentManagement

IncidentManagement

ProblemManagement

ProblemManagement

Service DeskManagement

Service DeskManagement

ConfigurationManagement

ConfigurationManagement

ChangeManagement

ChangeManagement

ReleaseManagement

ReleaseManagement

Service LevelManagement

Service LevelManagement

ServiceContinuity

Management

ServiceContinuity

Management

SecurityManagement

SecurityManagement

CapacityManagement

CapacityManagement

AvailabilityManagement

AvailabilityManagement

ContractGovernance

& IssueManagement

ContractGovernance

& IssueManagement

Bill OfContract

Management

Bill OfContract

Management

AssetManagement

AssetManagement

ContractPlanning

CostManagement

CostManagement

SoftwareLicense

Management

SoftwareLicense

Management

PaymentManagement

PaymentManagement

AcquisitionManagement

PurchasingOrder

Management

WorkRelease

Management

WorkRelease

Management

ContractApproval

Management

ContractApproval

Management

SOXManagement

ExportControl

Management

1 2

7

9

11

14

16

18

8

10

12

15

17

OperationsMonitoring

OperationsMonitoring

13

Service Supportusing ITIL framework

Service Deliveryusing ITIL framework

System Deliveryusing CMMI framework

ManageBusiness

Engagement

RequestManagement

RequestManagement

Contract Management

19

20 21

2426

27

Management Enablers

Create & Sustain Information Systems

StandardsManagement

ArchitectureManagement

Manage Architecture& Standards

Finance Management

Budget &Forecast

Management

PerformanceManagement

LeaseManagement

LeaseManagement

25

SystemDeploymentManagement

SystemDeploymentManagement

SystemArchitecture

Development

SystemArchitecture

Development

5 6

ApplicationPortfolio

Management

ApplicationPortfolio

Management

Bill Of ITManagement

InvestmentPortfolio

Management

ProjectPortfolio

Management

29

Strategic Planning

BalancedScorecard

Management

AppropriationManagement

3 4

Supplier Management

23

22

Request-to-Pay

Human ResourceManagement

CommunicationsManagement

Security & Compliance

AuditManagement

28

Copyright 2005 General Motors Corporation. All rights reserved.

30

31 32

33

34

35 36

37 38

39 40 41

42

43 44

Version: 11 Nov 2005

GG

Y

Key to Outsourced Model

Internally Focused

GM Challenges Using CMMIGM Challenges Using CMMI

CMMI does not effectively address acquirerneeds:

Contains work not executed by the acquirer

Does not address some required work

Lacks precise definition of the acquirer-supplier relationship

CMMI does not effectively address acquirerneeds:

Contains work not executed by the acquirer

Does not address some required work

Lacks precise definition of the acquirer-supplier relationship

GM/SEI Joint Project: The Initial CMMI-AGM/SEI Joint Project: The Initial CMMI-A

Develop an Acquisition Model that conformswith the CMMI architecture

Involve industry and government agenciesin developing and piloting the initial CMMI-A

Make the CMMI-A available for initialindustry and government use in 2006

Develop an Acquisition Model that conformswith the CMMI architecture

Involve industry and government agenciesin developing and piloting the initial CMMI-A

Make the CMMI-A available for initialindustry and government use in 2006

Major Design Goals of Initial CMMI-AMajor Design Goals of Initial CMMI-A

Clarifies the acquirer-supplier relationship

Defines minimum set of acquirer practices

Provides a lean model

Usable by government and industry

Results in a complete, appraisable model

Clarifies the acquirer-supplier relationship

Defines minimum set of acquirer practices

Provides a lean model

Usable by government and industry

Results in a complete, appraisable model

The Acquirer-Supplier RelationshipThe Acquirer-Supplier Relationship

DevelopmentCenter

Deployment Center

AcquisitionOrganization

AcquirerFacingTeam

Acquirer

ContractualTouchpoints:Deliverables

andMetrics

Supplier

Minimum Set of Acquirer PracticesMinimum Set of Acquirer Practices

Acquisition& ProjectPlanning

Define Req. &High-LevelSolution

SupplierEvaluation &

Selection

SystemAcceptance

Project Oversight /Supplier

Management

TransitionMgmt

Acquirer

Supplier

Plan DesignIntegrate

& TestDevelop

Deliver &Maintain

Business Need

Solution

Acquirer & Supplier Contractual Touch Points: Deliverables and MAcquirer & Supplier Contractual Touch Points: Deliverables and M etrics etrics Acquirer & Supplier Contractual Touch Points: Deliverables and MAcquirer & Supplier Contractual Touch Points: Deliverables and M etrics etrics

CMMI for Acquisition: A Lean ModelCMMI for Acquisition: A Lean Model

Requirements &TechnicalSolution

Solicitationand ContractDevelopment

Verification andValidation

Project &Acquisition

Management

CMMI for AcquisitionAcquirer

Acquirer & Supplier Contractual Touch Points: Deliverables and MetricsAcquirer & Supplier Contractual Touch Points: Deliverables and Metrics

Business Need

Solution

ProjectPlanning

Maturity Levels for AcquirersMaturity Levels for Acquirers

Initial

Managed

Defined

Quantitatively Managed

Optimizing

11Unpredictable andreactive execution

33Standard processes &standard contracts acrossa portfolio of projects

44Projects, suppliers, solutionsquantitatively measuredand controlled

55Focus on integratedsupply chain

22Basic Project andAcquisition Management

Next StepsNext Steps

Release initial CMMI for Acquisition Model inMay 2006

Publish CMMI for Acquisition book with GM,industry and government examples in August2006

Pilot the initial CMMI-A with government andindustry throughout 2006 and 2007

Release initial CMMI for Acquisition Model inMay 2006

Publish CMMI for Acquisition book with GM,industry and government examples in August2006

Pilot the initial CMMI-A with government andindustry throughout 2006 and 2007

AcknowledgementsAcknowledgementsGeneral Motors

– Kathryn Dodson (EDS)

– Zahira Gonzalvo (GM)

– Gowri S. Ramani (HP)

– Hubert F. Hofmann (GM)

– Joyce Statz (Borland)

– Deborah K. Yedlin (GM)

NASA– John Kelly

– Chuck Niles

– Pat Schuler

Software Engineering Institute– Anita Carleton

– Matt Fisher

– Brian Gallagher

– Mike Konrad

– Jim Over

– Bill Peterson

OUSD(AT&L)/DS– Kristen Baldwin

Reviewers– Over 150 reviewers from

more than 40 companiesand government agencies