from application convergence to capability · pdf filefrom application convergence to...
TRANSCRIPT
From Application Convergence to Capability Planning Integrated EA Conference London, 5th – 6th March, 2013
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
2
Who We Are
Enterprise Architecture and Portfolio Management are the key Business IT management disciplines required to achieve convergence to target
Strategy
Initiatives Portfolio
Strategic Roadmap
Projects Portfolio
Integrated Country Plans
Service Operation
Governance for
Business - IT alignment Enterprise
Architecture Data Capture – Quality &
Consistency Common Information Systems & Services Information
Standards
= Structural program = Functional program
Customer Facing Systems
= Ownership
Corp. Corp. Corp. Corp. M&S OPS Customer data synchronisation Enterprise
Integration Infrastructure
(ESB) Common label
printing & reading services Universal T&T
Service Common label standards (incl. 2D barcode) Common
handheld terminal solution
Universal product ordering service Pr
ojec
ts Web portal
Universal product & network
directory service Customer Joining
Handbook Domestic network event standards
Universal routing service
Partner Joining Handbook
= Must - Do ’ s 1 1 1 2 2
1 2 = Most - Do ’ s rated by urgency BDP
governance Customer
Service portal Enterprise Portal Infrastructure
1 Governance I • Specific standards defined upon need from functional work streams
• Business objects identification 1 1 Governance
for Business - IT alignment Enterprise
Architecture Data Capture – Quality &
Consistency Common Information Systems & Services Information
Standards
= Structural program = Functional program
Customer Facing Systems
= Ownership
Corp. Corp. Corp. Corp. M&S OPS Customer data synchronisation Enterprise
Integration Infrastructure
(ESB) Common label
printing & reading services Universal T&T
Service Common label standards (incl. 2D barcode) Common
handheld terminal solution
Universal product ordering service Pr
ojec
ts Web portal
Universal product & network
directory service Customer Joining
Handbook Domestic network event standards
Universal routing service
Partner Joining Handbook
= Must - Do ’ s 1 1 1 2 2
1 2 = Most - Do ’ s rated by urgency BDP
governance Customer
Service portal Enterprise Portal Infrastructure
1 Governance I • Specific standards defined upon need from functional work streams
• Business objects identification 1 1
SM Roadmap Gateway Applications
2002 2003 2004
Piece Enablement
Global AP EA US Complete Planned
Dox Manifest
ACA 2.0 to support Piece, Australia the Europe & Africa Gateway Requirements.
CALMS will replace FMM, FLITES and ACM
Version 1.3.1 28th May 2002 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010
Q4 Q1 Q2 Q3 Q4
Governance for Business - IT - alignment Customer Relationship ESB
Operations ESB Integrated ESB Data Capture – Quality & Consistency Definition Implementation Common label standards (incl. 2D barcode)
Governance I Definition Shipment status view agreed Service available Rollout complete Universal tracking service
Customer data synchronisation EA repository
Customer Service portal Enterprise Integration Infrastructure (ESB) International IT Strategy Universal product & network directory service Universal product ordering service Customer joining handbook Common Information Systems & Services Enterprise Portal Infrastructure Information Standards
Programmes / Projects Standards management
Customer Facing Systems Universal routing service
Domestic International Common label printing & reading services Rollout complete Service available
Enterprise Architecture Web portal = Must - Do ’ s
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010 Q4 Q1 Q2 Q3 Q4
Governance for Business - IT - alignment Customer Relationship ESB
Operations ESB Integrated ESB Data Capture – Quality & Consistency Definition Implementation Common label standards (incl. 2D barcode)
Governance I Definition Shipment status view agreed Service available Rollout complete Universal tracking service
Customer data synchronisation EA repository
Customer Service portal Enterprise Integration Infrastructure (ESB) International IT Strategy Universal product & network directory service Universal product ordering service Customer joining handbook Common Information Systems & Services Enterprise Portal Infrastructure Information Standards
Programmes / Projects Standards management
Customer Facing Systems Universal routing service
Domestic International Common label printing & reading services Rollout complete Service available
Enterprise Architecture Web portal = Must - Do ’ s
Invoicing C u s t o m e r R e l a t i o n s h i p Customer Facing IT Services
Products & Services Ordering Financial Accounting Controlling Procurement
Business Management Human Resources Information Resources Product Delivery
P r o d u c t i o n I n f r a s t r u c t u r e Network Data Interoperability Inform
ation Standards C
omm
on Services
Domestic IT Strategy
IT Operational Infrastructure
Cost C
ontainment
Enterprise Architecture Governance Portfolio Management Transformation, Change Management, Communication
ID 1 2 3 7 11 15 19 32 63 70 75 76 77
27 02 05 08 11 14 17 20 23 26 29 01 04 07 10 13 16 19 22 25 28 01 04 07 10 13 16 19 22 25 28 31 03 06 09 12 15 18 21 24 27 30 03 06 09 12 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007
Enterprise Architecture
Portfolio Managem
ent Governance around
Enterprise Architecture reduces complexity and cost and improves agility
Governance around Portfolio
Management ensures benefit
delivery and risks are managed
Project Portfolio
Projects
ADRIAN LARRY
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
From Complexity to Capability
In 2008, as the new DHL acquisitions were ramping down, we found our self in a major dilemma. 1500+ applications in Europe alone, with substantial overlap and complexity.
Our target was to reduce the portfolio by 50% by the end of 2012 At the end of 2012, we had sunset 699 applications and we also had a cultural shift in how we thought about and managed the application portfolio
We want to tell you a story about a real world success….
Complexity Capability
Popular slide from 2008 Typical slide in 2012
3
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
LEJ
JFK CVG
EMA
CDG
LOS
BAH DEL
LAX HKG
SIN
ANC
ICN
PVG
BKK
NRT
DXB
BLR
SYD
HNL
MEL
BRU
DHL Express: The World’s Most International Company
4
2 Global IT Centers (Cyberjaya and Prague)
Approx. 29,500 vehicles6
Approx. 260 dedicated aircraft
3 Global Hubs (LEJ, CVG, HKG) 19 Main Regional Hubs
Approx. 2.6 million customers5
Approx. 4,000 Facilities3
Approx. 34,000 Service Points4
Approx. 100,000 employees2
Approx. 450 million shipments1
> 220 countries/territories served > 500 airports served globally
IT
4 Global QCC (Bonn, Leipzig, Cincinnati, Singapore)
27 country QCC QCC
1) all products; FY 2011 2) Full-time equivalent employees incl. overtime and temps; Full year 2011 3) Hubs, offices, terminal / service centers, gateway 4) Status end of 2011 5) Active customers in sales portfolio 6) Owned and subcontracted trucks and vans
Part of the Deutsche Post DHL Group
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Decentralized Execution In A Centrally Planned Network
5
• Historically a high degree of local autonomy
• Standardization around core operational processes and information exchanges to grow the Network
• Globalization increased need for standard processes and systems
• DHL acquired by DP WorldNet along with other acquisitions in early ‘noughties’
• Dramatic increase in complexity of IT landscape
• Business integration efforts helped reduce business and IT complexity, but not everywhere…
A networked business, where each part of the network understands its dependency upon the rest of the network – Think Global. Act Local. Stay close to the Customer.
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Coordination Unification
Diversification Replication Low High
Low
H
igh
Bus
ines
s Pr
oces
s In
tegr
atio
n Business Process Standardization
Express Europe Business Operating Model Evolution
6
Low High
Low
H
igh
2008 • Core international business based on
‘standard’ products, processes and systems • Not all processes standardized and some
systems regionally owned • Some domestic businesses operating on
standard platform with extensions • Other domestic businesses operating on local
platform
2013 • Regional variance reduced and change initiatives
underway for the rest • Domestic businesses
• Non-profitable businesses sold • Profitable businesses ring-fenced • Business transformation initiatives to standard
platform
Bus
ines
s Pr
oces
s In
tegr
atio
n
Business Process Standardization
Coordination Unification
Diversification Replication Low High
Low
H
igh
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Convergence In the Application Portfolio
7
0
200
400
600
800
1000
1200
1400
1600
Number of Applications in
Europe [#]
2008-2012 699 sunsets
-61%
Baseline 2008 Q3
2008 2009 2010 2011 2012 2013
EGAP and Specialist 195 215 275 302 320 345 375
EU Convergence 1153 1090 951 709 557 454 364
Total 1348 1305 1226 1011 877 799 739
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
The Convergence Journey – A Tale of 50 Countries
8
One IT Platform
Production Infrastructure
Business Domain Model 1.0
Business Management
Customer Relationship
FinancialAccounting
Human Resources
Information Resources
Products and Services
ShipmentHandling
Service Alert Management
Ordering
InventoryManagement
Product Delivery
CorporateGovernance
Corporate ManagementStrategy
Legal andRegulatory
OperationalBusiness Management
Communication
Market Researchand Analysis
ProductDevelopment
ProductAvailability
Movement &Netw ork Planning
MovementExecution
ProductionResources
Sales Customer Support Customer Contact HistoryCustomer Contract / Agreements
Customer Contact Points Customer Identity
Service Requests OrderPricing
Invoicing
Controlling
Procurement
Solutions Int’l TradeExpress Freight Air & Ocean
Express Global Application
Portfolio (EGAP) EGAP+
Only seen in outline. But here is the bearing and co-ordinates system.
1
But we can tell you what your first destination is.
2
Before you can start you need to figure out where you are.
3
Give us more detail on the destination so that we can find our way.
4
We have all these other capabilities today – we don’t find them here!
5
Progress, we’ve filled some gaps with existing solutions.
6
Now the target is coming into view and we need to close our capability gaps
7
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Success Factors
9
Develop a practical framework
Ensure there is a single accountable source of truth.
Set targets. Measure and report aggressively
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Success Factors - The Framework Find a practical framework
10
What is an “application”?
What is a “capability”?
How do we drive decisions?
How should we organize and classify what we know?
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Success Factors - The Framework Our Co-ordinates System, The Business Domain Model
11
What will change? § Product packaging (i.e. Marketing products) § Core services remain relatively stable
§ Organization § Command and control § Job profile / functional responsibility
§ Physical Processes (How not what) § Technology (not just IT) § Volumes
What will remain (relatively) stable? § Things (business objects) the business works
with § E.g. shipments, vehicles, customers
§ Core capabilities of the business § E.g. booking, pick-up, delivery
§ High-level processes § E.g. booking to delivery
Processes
Technology
Applications
Domains / Services
IT B
usin
ess
Stable
Business domains will remain stable and support the management of business and IT change while concurrently enabling business and IT alignment.
Change
Change
Change
Production Infrastructure
Business Domain Model 1.0
Business Management
Customer Relationship
FinancialAccounting
Human Resources
Information Resources
Products and Services
ShipmentHandling
Service Alert Management
Ordering
InventoryManagement
Product Delivery
CorporateGovernance
Corporate ManagementStrategy
Legal andRegulatory
OperationalBusiness Management
Communication
Market Researchand Analysis
ProductDevelopment
ProductAvailability
Movement &Netw ork Planning
MovementExecution
ProductionResources
Sales Customer Support Customer Contact HistoryCustomer Contract / Agreements
Customer Contact Points Customer Identity
Service Requests OrderPricing
Invoicing
Controlling
Procurement
Solutions Int’l TradeExpress Freight Air & Ocean
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
An IT Landscape Based On The Business Domain Model Will Reduce Redundancies and Address the Gaps
12
Production Infrastructure
Business Domain Model 1.0
Business Management
Customer Relationship
FinancialAccounting
Human Resources
Information Resources
Products and Services
ShipmentHandling
Service Alert Management
Ordering
InventoryManagement
Product Delivery
CorporateGovernance
Corporate ManagementStrategy
Legal andRegulatory
OperationalBusiness Management
Communication
Market Researchand Analysis
ProductDevelopment
ProductAvailability
Movement &Netw ork Planning
MovementExecution
ProductionResources
Sales Customer Support Customer Contact HistoryCustomer Contract / Agreements
Customer Contact Points Customer Identity
Service Requests OrderPricing
Invoicing
Controlling
Procurement
Solutions Int’l TradeExpress Freight Air & Ocean
Production Infrastructure
Business Domain Model 1.0
Business Management
Customer Relationship
FinancialAccounting
Human Resources
Information Resources
Products and Services
ShipmentHandling
Service Alert Management
Ordering
InventoryManagement
Product Delivery
CorporateGovernance
Corporate ManagementStrategy
Legal andRegulatory
OperationalBusiness Management
Communication
Market Researchand Analysis
ProductDevelopment
ProductAvailability
Movement &Netw ork Planning
MovementExecution
ProductionResources
Sales Customer Support Customer Contact HistoryCustomer Contract / Agreements
Customer Contact Points Customer Identity
Service Requests OrderPricing
Invoicing
Controlling
Procurement
Solutions Int’l TradeExpress Freight Air & Ocean
Initial situation:
Target Situation:
• Duplication - Country and global applications supporting the same capabilities.
• Gaps - Unstandardized capabilities supported by local processes and applications.
• Inconsistent application partitioning and interfaces
• Standard capabilities supported by standard processes and applications
• Gaps filled in global processes and application portfolio
• Target applications aligned to standard interfaces
• Reusable, common services Application A Application B Application C Application D
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Success Factors - The Framework Capability Pipeline - Capturing the Key Decisions
13
Business Review
Pre-Analysis
Implementation
Clarification Required Further clarification or refinement is needed
Proposed Capability proposed, not yet reviewed by architecture
Analysis Capability under review by architecture
Under Review Capability being reviewed/prioritized by business
On Hold Business has taken the decision that this capability is a low priority and should not be reviewed further at this time
Rejected Business has taken the decision that this capability is not part of standard processes and therefore should be planned to eliminated
Agreed Exception Business has taken the decision that this capability will be allowed to continue as an exception to the standard process
Endorsed Business has taken the decision that this capability should be supported in the target systems
Approach Devised A high level approach for delivering the capability, including the process and applications that are affected, by Architecture & the respective functions.
Road mapped High level timing applied and revised once project is approved
Delivered Capability has been implemented in target architecture/systems. Ready for full deployment.
Deployed Capability has been deployed to all areas (functions/countries) as agreed
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Success Factors - The Framework Applications used by Express EU
14
116
16
194
343
130
0
50
100
150
200
250
300
350
400
Target Nomination for Target Specialist Non Target For Sunset
20 Global Non Target
Applications
EU Convergence Scope
Application Portfolio Management
799 Applications
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
15
Deliver Deploy
Project Review
Project Approval Request
Review / Recommend
Endorse
Roadmap
Portfolio Review Board
IT project funding is too late to discover the plans for a new capability
Executive Committees
Success Factors - The Framework Making Tracking Part of The Process
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
16
Pre-analysis Devise Approach Deliver Business
Review Deploy
Capability Review Team
Cross Function
Executive Committees
Roadmap
Bus. / IT Architecture
IT Product Manager
Capability Pipeline Stages
Business Architecture
Making the Governance Transparent
Portfolio Review Board
Project Review
Success Factors - The Framework Making Tracking Part of The Process
Review / Recommend
Endorse
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
17
Service Management
Project Portfolio
Management
EAR (System Architect)
ClearView
iShare, COIN
SPM
Application Portfolio
Management
E++ requirement
database
ACT EMAD
LRT
Project
Work Package
Development Deployment
Solution
Component (Application)
Deployed Component
Service
SLA
Roadmap
Requirement Capabilities
Success Factors – Single Source of Truth Ensure There is a Single Accountable Source of Truth
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Success Factors – Single Source of Truth Ensure There is a Single Accountable Source of Truth
18
Service Management
Project Portfolio
Management
EAR (System Architect)
ClearView
SPM
Application Portfolio
Management
Project
Work Package
Development Deployment
Solution
Component (Application)
Deployed Component
Service
SLA
Roadmap
Requirement Capabilities
E++ requirement
database
ACT EMAD
LRT
Management reporting
Ensure that the single source is considered the truth Pick a source, minimize/eliminate all other sources of data..
Assign ownership/accountabilities to each
data point USE the data to
encourage self correction
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Success Factors – Set Targets And Measure Application Convergence Scorecard
§ Ensure that there are both local/individual and group targets § Everyone has a vested interest in achieving the group target § Aggressively track and measure (start EVERY meeting/review with them)
19
Europe January YTD2012 ACT YTD Trend ST AD FC GL BB DD AB EI IJ CH TR SE
IT Application Sunsets [#] 108 9 - 3 0 3 2 0 0 1 0 0 0 0 0Convergence Usage of EGAP [%] 85.5 86.1 flat 94.8 90.6 73.8 95.5 81.5 82.9 71.2 93.8 71.9 89.8 66.4 94.1
Extent of EGAP [%] 67.7 39.8 better 57.8 21.2 39.8 29.3 41.6 36.4 9.7 46.5 60.0 50.9 30.8 25.7
Imperative 2013 Metric
Local Targets
Group Targets
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Looking to the Future – Our Principles for Success
20
Consistency but be practical and willing to adapt as you go along § Start (establish framework) and then refine § Don’t get lost in the details § Practical about data, it will never be perfect § Big picture benefit vs. individual case. Steer toward the big benefit case, otherwise it will be easy to
avoid any change by rejecting each change whether it stands up individually
Develop a practical framework Ensure there is a single accountable source of truth.
Set targets. Measure and report aggressively
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Looking to the Future - EU Application Convergence Roadmap
21
0
200
400
600
800
1,000
1,200
1,400
1,600
Number of Applications in
Europe [#]
2008-2012 699 sunsets
-61% (in scope apps)
OMP 19 /GRE 18 BICC 24 /H&G 112
Baseline 2008 Q3
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EGAP and Specialist 345 345 345 345 345 345 345 345 345 345 345
EU Convergence 1153 1090 951 709 557 454 364 181 119 60 0
Total 1498 1435 1296 1054 902 799 709 526 464 405 345
2013 90 sunsets 78 Country
2 H&G 10 Regional
DHL | Page Integrated EA Conference London, 5th – 6th March, 2013
Target Architecture and Dependencies
22
The Journey Continues Through Managed Evolution
New
Extend Optimize
Maintain
Performance Cost
Revenue
Production Infrastructure
Business Management
Customer Relationship
FinancialAccounting
Human Resources
Information Resources
Products and Services Ordering
Product Delivery
Invoicing
Controlling
Procurement
Prioritize Roadmap
Implement Operate
DCG PRG TS (EG)
Region
Operation
Integration Service 2012 2013 2014 2015
+ 2015
US
DCG EGAP
DCG ES AM/AP
Global
DCG Time Sensitive EG
Global
DCG Framework Real Time
DCG Non Time Sensitive EG
DCG Framework (EG)
DCG PRG NTS (EG)
DCG Outdated Technology
DCG Outdated Technology EOSL
Global
DCG Express Dedicated env. / DR
Pending ITS Quotations
Quotation approved
Quotation approved
Establish capability management and planning around the capability lifecycle.
Devise High-Level
Solution
Project Definition
And Initiation
Capability Rollout.
Sunset non-standard Implementation
Monitor and Analyze
Capability Performance