OADP for IT OptimizationStage I: Portfolio RationalizationStage I: Portfolio Rationalization
IT OptimizationAn Applied OADP MethodologyAn Applied OADP Methodology
IT Optimization is Oracle's applied OADP methodology for aligning primarily the Application and Technology layers with the Business Architecture
3 Stages of IT Optimization1. Portfolio Rationalization Platform and Application Standardization
2. Data Center and Systems Optimization ClusteringClustering Virtualization Consolidation SecuritySecurity Management Automation
3. Shared Services / Cloud Computing IT as a ‘Business’ - ITaaB
Copyright ©2009 Oracle Corporation. All rights reserved. 2
IT as a Business ITaaB
IT Optimization (ITO)Applying a standard process methodology
Stage I: Portfolio RationalizationITOITO
A hit tA hit t Stage I: Portfolio RationalizationArchitectureArchitectureVisionVision
Stage II: Data Center & System Optimization
ness
&
men
t
Stage III: Shared Services/Cl d C ti
Stra
tegi
c B
usi
ITO
Alig
nm
Cloud Computing
Copyright ©2009 Oracle Corporation. All rights reserved. 3
Common Drivers for IT Optimization> Discover Business Challenges
IT Optimization Area Issues and ChallengesPortfolio Rationalization Multiple applications providing the same functions
g
Recent merger or acquisition
Complex and inefficiencies associated with maintaining stove-piped systems
D t C t d U d tili d d tData Center and Architecture Optimization
Under utilized servers and storage
HW refresh cycle or move to commodity HW platforms
Management Automationg
Data Center consolidation
Security challenges due to complexity
Shared Services / Cloud Increasing transactions and data volumesg
Financial Chargeback
Just in time scalability
Copyright ©2009 Oracle Corporation. All rights reserved. 4
y
Stage I: Portfolio Rationalization Prerequisites and InputsPrerequisites and Inputs
• CxO Sponsorship for Larger Efforts, LOB sponsorship for smaller efforts.• Overall IT Optimization Architecture Vision CompletedPrerequisites
• Catalog of Business Capabilities, including (for each capability)• Value to the Business Strategy/Goals (Hi or Low)• QoS requirements (Availability and performance)• Scalability requirements (xx growth within yy years)Inputs • Matrix of Business Capabilities / Organizational unitsInputs
Copyright ©2009 Oracle Corporation. All rights reserved. 5
How do you Rationalize a Portfolio?
Step 1 - Build inventory of existing applications /
Inventory
Map
technology
Step 2 - Map inventory to business / IT capabilities
Map
Analyze
Step 3 – Analyze the portfolio against evaluation criteria(Portfolio Scoring)
Transform
Step 4 – Propose the appropriate actions to transform the “Current State” into the desired “Future State”
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Important Factors to Consider
1. What are the driving factors for the Portfolio Rationalization process ?
• Reduce Application Support Costs – Think about application consolidation
R d HW t Thi k b t h d lid ti h lid ti• Reduce HW costs – Think about hardware consolidation when consolidating applications
• Reduce Environmental Costs – Think about next generation hardware refresh to lower power consumption
• Reduce IT Complexity (including ongoing support costs) – Reduce overall number of applications and integrations that are supported
2. Is the Organization ready to move to a more centralized structure that may occur as a result of application consolidation ?a result of application consolidation ?
3. Does the organization have the required PMO structure to support the rationalization efforts (there may be numerous overlapping projects proposed to effect the end state architecture) ?
4. What is the organizations budget for the project (will affect roll out schedules and may necessitate cost saving quick hit projects over others to generate funds for the overall effort) ?
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Architecture Vision Phase
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Portfolio RationalizationArchitecture MaturityArchitecture Maturity
IT as a ServiceIT as a Service
• Standardize• Eliminate Redundancy
Service Group A Service Group B Service Group C
Integration Layer
Shared Services /
Optimized IT CoreOptimized IT Core
y• Modernize• Migrate
Pt. to Pt. Integrations
Data Grid Data GridData Grid
Security Layer
Application Grid Application Grid Application Grid
Virtualized and Consolidated
/Cloud
ComputingTransitionalArchitecture
FBT PAY GNTS
TRDS
Client
Customs NTS A/c
1
Data…….
FBT PAY GNTS
TRDS
Client
Customs NTS A/c
1
Data…….
Security
SFAProduct LMSInv
MGMTB2Bproduct SCM product DBERP MES-Dev
SFASFA-Test
SFA-Stage
Product
ProductERP-StageERP-
ProdMES-Stage
MES-Prod
productDB-
Stage B2B-StageB2B-
Dev
Security Security Security
SFAProduct LMSInv MGMT
product SCM product DBERP MES-DevProduct ERP-
Stageproduct
DB-Stage
Rationalized
Consolidated Infrastructure and ServicesIT SilosIT Silos
RRE IPS Integrated A/C Refunds
RBADef
PaymentsExcise
CR
PKI
ECI ADD AWA ELS
Client Staff RemoteStaff
TAXAGENTS
GCI
Call Centres
WOC
CCD
TASS
StaffPhone
ComplianceStaff
BOA
Refmaterial
Bus. Intel
B EP
CDCCCWMS
BANK
DDDR
Penalty
Business
IVR
1RRE IPS Integrated A/C Refunds
RBADef
PaymentsExcise
CR
PKI
ECI ADD AWA ELS
Client Staff RemoteStaff
TAXAGENTS
GCI
Call Centres
WOC
CCD
TASS
StaffPhone
ComplianceStaff
BOA
Refmaterial
Bus. Intel
B EP
CDCCCWMS
BANK
DDDR
Penalty
Business
IVR
1
Rationalized
IT Portfolio
Architectural
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Complexity
Portfolio RationalizationAccording to industry analysts such as Gartner, a focused applications rationalization effort will typically result in a 20% cost savings while improving support for the lines of business.
• Fewer, more strategic vendors• Standardize processes
Eli i i f i “ il ” i d
Reduce Complexity and Cost
• Eliminate information “silos”, improve data quality & enable seamless sharing of information across the organization through integration
• Support strategies; Global Single Instance, Shared Services
• Eliminate redundant and niche applications• Reduce risk
M d i l li ti• Modernize legacy applications• Simplify / standardize technology infrastructure• Improve security and regulatory compliance• Delivery models; Buy vs Build ASP SaaS
Shift IT spending from Infrastructure to Strategic Investment
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• Delivery models; Buy vs. Build, ASP, SaaSto Strategic Investment
Architecture VisionScope ConsiderationsScope Considerations
• Avoid “boil the ocean” approach. Attempt to define a scope that either
1. Reflects a “horizontal / vertical slice” of functionality, aligned with a business goal or objective. For example:business goal or objective. For example:
– Rationalize all applications that support Financial Control & Reporting, with the goal of improving the quality and timeliness of information
– Rationalize all applications that support Month End Close, with theRationalize all applications that support Month End Close, with the goal of reducing Month End Close from xx days to x days
– Rationalize all applications that support a Business Process in need of streamlining
2. Reflects a manageable set of layers of the enterprise technology capabilities, e.g.
• Servers – consolidate or upgrade to reduce “sprawl”
• Database – standardize/consolidate onto fewer instances
• Integration middleware – standardize onto a single platform –leverage technologies like AIA to reduce integration complexity
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Architecture VisionConsiderations
• Confirm with Customer, their existing applications inventory will be mapped to Capabilities Model to identify redundancy/gaps
• Common portfolio scoring criteria include strategic value, functional fit,
Considerations
Common portfolio scoring criteria include strategic value, functional fit, conformance to IT standards, risk and TCO
• For Application Portfolio Rationalization– Business Capabilities approach is commonly employed with customers who
have low level of maturity in applications portfolio management and business process management
– Oracle Business Capabilities Model enables teams to accomplish the first iteration of Application Portfolio Rationalization in less time, with fewer resources
– The BCM can be used either in spreadsheet form or with a tool such as Primavera Prosight or Troux.
– For Technology Capabilities Rationalization– Use the Oracle Technical Reference Model(TRM) to categorize Assets
– The TRM can be used either in spreadsheet form or with a tool such as Primavera Prosight or Troux.
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Architecture VisionConsiderations
• Make it clear that Portfolio Rationalization may effect a loss in functionality in order to enable greater agility.
• Apply the 80/20 rule to Application Functionality. If the target application
Considerations
Apply the 80/20 rule to Application Functionality. If the target application supports 80% of the required functionality then the remaining 20% should not preclude its adoption as the standard. When implementing the remaining 20% make sure that they are done in such a way as not to impede upgrades to the application.impede upgrades to the application.
• Composite applications can be set up to handle ‘missing’ functionality until such a time that the business processes change or the target application can support the given requirements.
• It is better to use the extensibility features of applications rather than customizing the application itself. This will enable easier application upgrades and result far less complexity.
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Guiding PrinciplesSample Principles for Future State ArchitectureSample Principles for Future State Architecture
Business Architecture
Improve Operational Efficiency / Reduce
Costs
Simplified / standardized /
managed business processes
Enable agility to deploy new products & capabilities
Application Architecture
processes capabilities
Maintain Shared Reduce / Acquire COTS
Information Architecture
Maintain Shared Common Application
PlatformStandardize Application Footprint
products & customize only as
necessary
Information Architecture
Out of the Box analytics / schemas
Common Enterprise Object Models
Real-time information updates
/ monitoring
Technology Architecture
Optimized , scalable, agile environment
Open standards & systems
24x7 platform availability
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Architecture VisionSample PrinciplesSample Principles
• Cost Optimization – Low cost across the lifecycle of a product or service is a compelling value
Business Architecture Principles
Cost Optimization Low cost across the lifecycle of a product or service is a compelling value proposition for targeted customer segments.
• Corporate Environment Responsibility – Going green is not only crucial from a social responsible and moral standpoint, it also has economic benefits. Eco-efficiency, eco-transparency and eco-innovation are critical for a greener future.
• Enterprise Balance – This principle embodies “service above self” and decisions made from t i id ti h t l t b fit th t ti l d i i d fan enterprise wide perspective have greater long term benefit than tactical decisions made from
a particular organizational perspective.
C U A li ti D li ti bilit i i d lif t fli ti
Application Architecture Principles
• Common Use Applications – Duplicative capability is expensive and proliferates conflicting data.
• Technology Independence – Independence of applications from the underlying technology allows applications to be developed, upgraded, and operated in the most cost-effective and timely way.
• Adherence to Open Standards - promote business / IT agility reduce risk and achieve a lowerAdherence to Open Standards - promote business / IT agility, reduce risk and achieve a lower overall TCO than proprietary applications.
• Common Development Methodology and Tools - Standard development methodologies increase the likelihood of high quality results and promote reusable components.
• Replace Obsolete Applications – Every application has a limited useful life span. Beyond this life span, the application becomes functionally deficient and costly to operate and maintain.
Copyright ©2009 Oracle Corporation. All rights reserved. 17
p pp y y p
Architecture VisionSample PrinciplesSample Principles
•Data Quality – Systems that consistently carry stale and incomplete data pose risk and inefficiency to the business and should be streamlined to only carry the information that it can realistically ensure quality for. M t D t M t M lti l f d t d t lit /i t it i th t tl i
Information Architecture Principles
•Master Data Management - Multiple sources of data cause data quality/integrity issues that greatly increase system complexity and overall cost, while reducing agility.
•Standard Data Exchange Format – Exchanging data in standardized representations lowers integration cost of supporting new and changing data model requirements.
Technology Architecture Principles
•Adherence to Open Standards - Standards compliance enhances flexibility.•Platform Standardization – simplifies maintenance and lowers support costs.•Availability - Loss of business service can be very costly and can often be underestimated.•Performance and Scalability - Responsive systems, with sufficient capacity, enable business success.•Service Level Objectives - If the Technology does not allow the business to meet its Quality of Service (QoS)
bj ti th th b i ill ffobjectives, then the business will suffer.
•Strategic Focus - Aligning the Enterprise Architecture with the business strategy increases the value of IT to the business.
Governance Principles
•Accountability - Accountability structures encourage compliance with the Enterprise Architecture. •Compliance to Enterprise Architecture - An effective Enterprise Architecture needs to be a guide for all IT projects
•Wide Participation - Wide participation by stakeholders throughout the enterprise ensures that the Enterprise Architecture will meet the optimal requirements of the enterprise, not just a select group of LOB requirements.
•Quantitative Decision Making - Utilizing quantitative processes and metrics provides a consistent and equitable f l ti d i i d i th ff ti f E t i A hit t G
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means of evaluating decisions and increases the effectiveness of Enterprise Architecture Governance.
Business Case DevelopmentPerformed Architecture Vision Phasee o ed c tectu e s o ase
Architecture Vision
Current State
Future State
Strategic Roadmap
EA Governance
Business Case
• Strategy Map- Customer Perspective- Financial Perspective
• Understand the existing Business Case culture
• Identify existing:Goals / Drivers
• Agree to Architecture Future State:- Quantifiable Measures
• Business Value
• Identify timelines and milestones for measurement
• Identify alignment with existing auditing and other financial
• Define Future State Costs/Risks
• Estimate EA Roadmap InvestmentsPerspective
• Business Model- Value Proposition- Cost Structure- Revenue Stream
- Goals / Drivers- Priorities- Measures used- Metrics preferred- Monetization numbers
- Metrics for calculation- Non-tangible or Soft criteria
measurement structures and processes
Investments
• Perform Cost/Benefit analysis
• Build the actual
Business Case Development
Activitiesand
Artifacts Revenue Stream
• Business Capability Model
• Operating Model- Level of Business
numbers
• Assess against benchmarks
Build the actual Business Case document
Process Integration and Standardization
WorkEffort
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Effort
Current State Architecture Phase
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Step 1 - Inventory
Inventory Current Portfolio• The process of rationalizing your portfolio begins with capturing an inventory of
ll li ti d th d l i t h l l tf tl iall applications and the underlying technology platform, currently in use.
• Capture information pertaining to an application’s underlying technology (e.g., hardware, operating system, database, etc.) as well. Standardization and lower TCO can be realized through migration of applications to run on a commonTCO can be realized through migration of applications to run on a common technology platform.
• Automated tools can quickly identify servers and software applications installed on your network, but there may be no substitute for human intervention when it
t d t i i b i i f ti f li ti tf li i hcomes to determining basic information for application portfolio scoring such as business capabilities mapping, strategic value, functional fit, conformance to IT standards, risk and TCO.
• Completing such an inventory will usually reveal many overlapping and duplicateCompleting such an inventory will usually reveal many overlapping and duplicate applications that are candidates for consolidation.
• Spreadsheets or a tool like Treux can be used to capture the inventory list.
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Current State ArchitectureInventory of Existing ApplicationsInventory of Existing Applications
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Current State ArchitectureDeliverable Details Applications InventoryDeliverable Details – Applications Inventory
Copyright ©2009 Oracle Corporation. All rights reserved. 23
Step 2 - MAP
Map Current Portfolio to business functions• Once you have captured the pieces of the portfolio, they must be mapped to the
b i f ti th t th tbusiness functions that they support.
• The mapping does not necessarily need to be at a very granular level. Level 1 or 2 business process flows can be used for this effort. You could also use a simple matrix showing the applications and which business functions they support.matrix showing the applications and which business functions they support.
• It is especially important to capture where a particular business process is duplicated. Through an iterative process, when new business processes are discovered relative to a given portion of the portfolio, the remainder of the
tf li h ld b l d ( t l t t l l) t d t i if thportfolio should be analyzed (at least at a summary level) to determine if those pieces are also supporting this process. Think in terms of a company that has more than 1 ERP system. While the multiple system may each support unique business processes, it it more likely that there is overlap among them.
• Spreadsheets or a tool like Treux can be used to capture the inventory list to business process mapping.
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Current State Applications MatrixCurrent State Applications Layer PerspectiveCurrent State Applications Layer Perspective
Customer
Relations Mgt
Accounts
PayableBilling ReimbursementInternet
Marketing
Service &
Repair
AMER MCCMCC
Relations Mgt. PayableMarketing Repair
CREMAMIS QuickBooksRecipient
Web StoreMCC BigTree
EMEACREMACT Navision
Web Store
CREM ISCALA EVA 3EMEA
APACCREMBusiness EBSMCC Filemaker
APAC Works
SAP EBS
Pro
Copyright ©2009 Oracle Corporation. All rights reserved.
Australia
Current State ArchitectureDeliverablesDeliverables
• Applications Inventory• OwnersOwners• Business Users• Costs (* to be used in generating the business case)• EtcEtc…
• High Level (Just Enough Just in Time)• Current Applications Architecture• Current Data Architecture• Current Data Architecture• Current Technology Architecture• Current Integration Architecture
• Current IT Organization Chart (* t b d i t bli hi )• Current IT Organization Chart (* to be used in establishing governance)• Current PMO Structure (* to be used in establishing governance)
Copyright ©2009 Oracle Corporation. All rights reserved. 26
Business Case DevelopmentPerformed During Current State Architecture Phasee o ed u g Cu e t State c tectu e ase
Architecture Vision
Current State
Future State
Strategic Roadmap
EA Governance
Business Case
• Strategy Map- Customer Perspective- Financial Perspective
• Understand the existing Business Case culture
• Identify existing:Goals / Drivers
• Agree to Architecture Future State:- Quantifiable Measures
• Business Value
• Identify timelines and milestones for measurement
• Identify alignment with existing auditing and other financial
• Define Future State Costs/Risks
• Estimate EA Roadmap InvestmentsPerspective
• Business Model- Value Proposition- Cost Structure- Revenue Stream
- Goals / Drivers- Priorities- Measures used- Metrics preferred- Monetization numbers
- Metrics for calculation- Non-tangible or Soft criteria
measurement structures and processes
Investments
• Perform Cost/Benefit analysis
• Build the actual
Business Case Development
Activitiesand
Artifacts Revenue Stream
• Business Capability Model
• Operating Model- Level of Business
numbers
• Assess against benchmarks
Build the actual Business Case document
Process Integration and Standardization
WorkEffort
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Effort
Step 3 – AnalyzeAnalyze the Portfolio information gathered in Phases 1 and 2 applyingAnalyze the Portfolio information gathered in Phases 1 and 2 applying
objective criteria
• The analysis should be done in the context of what the portfolio should look like in the future, not where is it now.,
• Portfolio evaluation can be simple or elaborate, depending on organizational maturity. For some organizations, just reviewing support for mission objectives and capturing an estimate of application costs will be a substantial accomplishment and is often enough to identify “low hanging fruit”accomplishment, and is often enough to identify low-hanging fruit .
• When a recommendation for an application isn’t obvious, a more detailed analysis is required. While this could involve a wide array of criteria, some obvious considerations would include: strategic value, functional fit, conformance gto IT standards, risk and TCO.
• Whatever level of analysis is applied, when the process is completed, you are able to recommend actions to take for each application including replacement, retirement consolidation upgrade modernize etcretirement, consolidation, upgrade, modernize, etc.
• Make sure to take integration and information architecture changes into account when developing the future state architecture. Portfolio Rationalization almost always involves changes to interfaces (integrations) and the underlying data for
Copyright ©2009 Oracle Corporation. All rights reserved.
y g ( g ) y gthe applications.
Future State Architecture Phase
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IT Portfolio ScorecardPrioritize Future State Capabilities (Specific Criteria)
Likelihood of Success Criteria
X-Axis Weight Score Business Value Criteria
Y-Axis Weight Score
Out of the Box Functionality
X1: 15% Financial Return Y1: 30%Functionality
Number of Interfaces X2: 15% Risk Y2: 20%
Development Effort X3: 20% New Business Benefits Y3: 15%
Support X4: 10% Technology Efficiency Y4: 10%
Business Critical X5: 25% Impacts Revenue Stream Y5: 15%Business Critical Functionality
X5: 25% Impacts Revenue Stream Y5: 15%
Standards Based X6: 15% Implementation Time Y6: 10%
X 100% Dimension Total Y 100%
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Source: Kraft Foods, 2002
Weighting Criteria Examples
• % utilization – currently at peak would suggest a need for upgrade
Hardware Characteristics
% utilization currently at peak would suggest a need for upgrade.• Energy Efficiency – older machines will have higher power requirements, need
more cooling and generally have a larger physical footprint in the datacenter• Scalability – can the machine be scaled internally (add processors or memory)
or is it at full capacity?p y• Purpose – what applications are currently running on the particular machine and
are they supporting business critical functionality?• Standards – it the machine in the currently recommended architectural
standards?S t h l th i th i ti th t t th• Support – how many people are there in the organization that can support the hardware?
• Lease Term – is the machine leased or owned, and is the lease term due to expire?
• Manageability is the machine easy to manage (does it have built in sensors• Manageability – is the machine easy to manage (does it have built in sensors, can it to predictive self healing or it limited to failure notifications)?
• Interfaces – does the machine support all the interfaces required for maximum availability and performance (does it support Infiniband, does it meet HA redundancy requirements)?
Copyright ©2009 Oracle Corporation. All rights reserved. 32
y q )
Weighting Criteria Examples
• Number of Customizations - will the customizations need to go into the targetapplication – or will the business change to deal with less customizations?
Application Characteristics
application – or will the business change to deal with less customizations?• Number of Interfaces - they will need to be re-written if the application is
being removed• Number of Developers - how many are currently supporting an application
that is being removed? They will need to be re-trained which will eat into short g yterm cost savings.
• Number of Support Personnel – the more that are re-purposed the lower the overall cost
• Number of Versions Back - is it still supported by the manufacturer or will it d d t b d d?needed to be upgraded?
• Adheres to Target Standards - helps achieve a simplified infrastructure –which will lower costs and improve agility in later stages of maturity
• Has functionality to differentiate company in the marketplace – this would be a reason not choose a COTS application as a replacementbe a reason not choose a COTS application as a replacement
• Number Users - how many people will need to be trained/re-trained on the target application?
Copyright ©2009 Oracle Corporation. All rights reserved. 33
Weighting Criteria Examples
• Eliminates HW/Support/Licensing will reduce TCO
Business Value
• Eliminates HW/Support/Licensing – will reduce TCO• Reduces Risk – systems that are easy to implement have reduce risk and can
generate faster ROI.• Lowers HVAC/Electric/support – more energy efficient systems are more
efficient and will reduce costsefficient and will reduce costs• Directly Impacts Revenue Stream - talks to risk – back office rationalization
may be lower risk than a CRM or Customer Facing system directly tied to revenue.
• Provides needed functionality to grow the business - may rationalize an y g yapplication with an upgrade that the business currently needs
• Enables quicker response to market factors – agility is a key differentiator for businesses. Those that can react quickly to market demands and opportunities will have a competitive edge.Meets/Increases Compliance Requirements as regulations increase• Meets/Increases Compliance Requirements – as regulations increase, businesses need to ensure their stakeholders that they are compliant to maintain shareholder confidence.
Copyright ©2009 Oracle Corporation. All rights reserved. 34
IT Portfolio Matrix> Prioritize Future State Capabilities
100
Difficult to execute but high value to the business Some low hanging fruit
ness
ue to
the
Bus
i
50
Do not fund these projects Fund Selectively
Valu
0
0
10050
Copyright ©2009 Oracle Corporation. All rights reserved. 35
Ability to SucceedSource: Kraft Foods, 2002
Future State ArchitectureApplication Portfolio AnalysisApplication Portfolio Analysis
Copyright ©2009 Oracle Corporation. All rights reserved.
Future State Architecture Artifact Details – Application DiagramArtifact Details Application Diagram
Copyright ©2009 Oracle Corporation. All rights reserved. 37
Future State Architecture Applications Technology FootprintApplications Technology Footprint
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Future State ArchitectureArtifact Details – Information ArchitectureArtifact Details Information Architecture
Copyright ©2009 Oracle Corporation. All rights reserved. 39
Future State ArchitectureArtifact Details – Applications Integration DiagramArtifact Details Applications Integration Diagram
ICC EAI Architecture
PO INTF361
ASNINTF362
BUNZL THAI IDS E WMS
Ni t
INTF359INTF358
INTF357 INTF360
COMCAREInvoice INTF338
RMF
Bill of Material INTF340PO INTF361
ASNINTF362
INTF361
Order Transportation
INTF363USSTCMN0 FTP
Server
Nistevo
WBIC
SAP
TRACKX WMS
MAPICSOrder INTF357
Goods Receipt INTF360
ASN INTF359PO INTF358
PO INTF306Invoice INTF307
Order INTF112
Vendor INTF127Item Basic INTF104
JD Gen Inventory
Movement INTF339
PO INTF116 Order Transportation
INTF363
SAP
WCMtBPCS
SATTSTORE WMS
ASN INTF332/335
EdwardsMovement INTF339Item Basic INTF334
Order PO INTF333
Goods Receipt INTF337
Dual Inventory INTF121/122
Order INTF 324/325/326Customer INTF327
e 8
Price List INTF330
e
WERCSOPTIVA Bill of Material INTF304
Inventory Report INTF298/300 Inventory Report INTF299/301
Product DB
Cat
alog
uePr
oduc
t IN
TF32
8
Catalogue Item INTF329
Cat
alog
ueIte
m
INTF
331
A2A
Copyright ©2009 Oracle Corporation. All rights reserved.
B2B
Reference ModelsArchitecture Component FrameworkArchitecture Component Framework
Collectively, the Architecture Component Framework assets map onto the Technology, Information and Application Architecture layers of an enterprise architecture framework.architecture framework. OFRA - The OFRA best practices framework maps directly onto the technology architecture layer of an enterprise architecture framework. OFRA is based on a number of architectural design perspectives that address specific architecture
tt f d i i l ti SOA E2 0 d E h tipatterns for designing solutions – SOA, E2.0 and so on. Each perspective embodies the sum knowledge and experience of Oracle, its partners and customers gained from implementing Oracle-based solutions. Each perspective is defined to maximize the benefits of the Oracle technologies that are exploited in th d ithe design.
ORA – is a high level classification of software capabilities spanning technology, information and application architecture layers .
Technology Capability Blueprint – an alternative viewpoint of the software capabilities required to meet logical architectural requirements
Copyright ©2009 Oracle Corporation. All rights reserved.
Reference ModelsIndustry Reference / Solution DesignIndustry Reference / Solution Design
An Industry Reference Architecture is an industry specific rendering of ORA. It maps against the technology, information and application architecture layers of an EA framework An IRA provides a definition ofarchitecture layers of an EA framework. An IRA provides a definition of Oracle’s technology stack and industry footprint capabilities that are relevant for meeting the needs of a specific industry or industry domain.
Solution Designs include industry solutions & technology patterns.
Industry Solutions - Technology focused solution architectures defining high level functions and process flows, and with Oracle Technology and industry footprint mapping
Technology Patterns Technology focused solution architectures definingTechnology Patterns - Technology focused solution architectures defining functions and process flows, and with Oracle Technology stack mappings
Copyright ©2009 Oracle Corporation. All rights reserved.
Reference Architecture TaxonomyOracle Enterprise Architecture
FrameworkDesign Offer
Oracle Reference
Architecture
FrameworkBest Practices Framework
Architecture Component Framework
Business Architecture
Application Architecture
Information Architectureetho
dolo
gyG
overnan
Architecture
SOA
OFRA
Technical Reference
Technology Architecture
Me
nce
Perspectives Oracle product mappingsSOA
Reference Architecture
E2.0 Reference Architecture
S it
Reference Model
Solution Designs
O ac e p oduct app gs
(3rd party mappings)
Industry Reference
Architectures
Industry Solutions
Technology Patterns
SecurityReference
Architecture
GridReference
Architecture
BI/DWReference
Architecture Technology(Capability) BlueprintMaximum
Availability Architecture
Copyright ©2009 Oracle Corporation. All rights reserved.
OracleOracle Technology Reference ModelTechnology Reference ModelJune 2010
Development Middleware Security Management
User Interaction
Content Mgmt BI CollaborationAuthentication Incident
Mgmt
SOA & BPM
Application Grid
Di t
Authorization
g
Service Level Mgmt
Programming Languages
Database Storage Mgmt
Grid MgmtInfo Mgmt Analytics
Directory
Auditing Configuration MgmtIDE
I f t t
Data Security Encryption
Provisioning
Backup Recovery
Disaster Recovery Replication Embedded
In-MemoryPerformance
MgmtS/W Configuration
MgmtInfrastructure
VMOS StorageServer Network IRMSecurity
Mgmt
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Oracle ApplicationsCapability Reference Model– Financial IndustryCapability Reference Model Financial Industry
Access the IBU Portal Here
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Future State ArchitectureFuture State Applications FootprintFuture State Applications Footprint
OM, SCM, FinancialsOM, SCM, Financials
Analytics CRM LoyaltyLoyalty iStoreiStore SalesSales Field ServiceField ServiceMarketingMarketing Order MgmtOrder Mgmt PricingPricing CTOCTOiStoreiStore
Supply ChainPlanning
DemandPlanning
Business OperationsOrder
ManagementProcurement Services
Store Inventory MgmtStore Inventory Mgmt
Point-of-SalePoint-of-SaleReplenishmentOptimizationReplenishmentOptimization
Advance InventoryPlanningAdvance InventoryPlanning
PIMPIMConfiguratorConfigurator
lanninglanning
ItemPlanningItem Planning
Trade ManagementTrade Management
Invoice MatchInvoice MatchReturns ManagementReturns Management
OM, SCM, FinancialsOM, SCM, Financials
Analytics CRM LoyaltyLoyalty iStoreiStore SalesSales Field ServiceField ServiceMarketingMarketing Order MgmtOrder Mgmt PricingPricing CTOCTOiStoreiStore
OM, SCM, FinancialsOM, SCM, Financials
Analytics CRM LoyaltyLoyalty iStoreiStore SalesSales Field ServiceField ServiceMarketingMarketing Order MgmtOrder Mgmt PricingPricing CTOCTOiStoreiStore
Supply ChainPlanning
DemandPlanning
Business OperationsOrder
ManagementProcurement Services
Store Inventory MgmtStore Inventory Mgmt
Point-of-SalePoint-of-SaleReplenishmentOptimizationReplenishmentOptimization
Advance InventoryPlanningAdvance InventoryPlanning
PIMPIMConfiguratorConfigurator
lanninglanning
ItemPlanningItem Planning
Trade ManagementTrade Management
Invoice MatchInvoice MatchReturns ManagementReturns Management
Supply ChainPlanning
DemandPlanning
Business OperationsOrder
ManagementProcurement Services
Store Inventory MgmtStore Inventory Mgmt
Point-of-SalePoint-of-SaleReplenishmentOptimizationReplenishmentOptimization
Advance InventoryPlanningAdvance InventoryPlanning
PIMPIMConfiguratorConfigurator
lanninglanning
ItemPlanningItem Planning
Trade ManagementTrade Management
Invoice MatchInvoice MatchReturns ManagementReturns Management
ASCPASCPASCP
Supplier SchedulingSupplier SchedulingSupplier Scheduling
DemantraForecastingDemantraDemantra
ForecastingForecasting
DemantraAdvance Forecasting
DemantraDemantraAdvance ForecastingAdvance Forecasting
ConfiguratorConfiguratorConfigurator
Order ManagementOrder ManagementOrder Management
ProcurementProcurementProcurement Service ContractsService ContractsService Contracts
QualityQualityQuality
OM, SCM,FinancialsOM, SCM,OM, SCM,FinancialsFinancials
Field ServiceField ServiceField Service
Corporate Administration
Indirect ProcurementIndirect Procurement ProjectsProjectsEPMEPM FinancialsFinancials
CompensationCompensationHuman ResourcesHuman Resources Real EstateReal Estate
ITITHRHRHelpdesk
Workforce SchedulingWorkforce Scheduling
Learning MgmtLearning Mgmt
Store HelpdeskStore Helpdesk
Workforce CommsWorkforce Comms
Transportation ManagementTransportation Management
Warehouse ManagementWarehouse Management
Home DeliveryHome Delivery
Supply NetworkOptimizationSupply NetworkOptimization
Value Chain AllocationValue Chain Allocation
Value ChainCollaborationValue ChainCollaboration
Item Planningg
Category MgmtCategory Mgmt
Price OptimizationPrice Optimization
Promotion Planning& OptimizationPromotion Planning& Optimization
Merchandise ManagementMerchandise Management
Price ManagementPrice Management
Sales AuditSales AuditDemand ForecastingDemand Forecasting
Returns ManagementReturns Management
Corporate Administration
Indirect ProcurementIndirect Procurement ProjectsProjectsEPMEPM FinancialsFinancials
CompensationCompensationHuman ResourcesHuman Resources Real EstateReal Estate
ITITHRHRHelpdesk
Corporate Administration
Indirect ProcurementIndirect Procurement ProjectsProjectsEPMEPM FinancialsFinancials
CompensationCompensationHuman ResourcesHuman Resources Real EstateReal Estate
ITITHRHRHelpdesk
Workforce SchedulingWorkforce Scheduling
Learning MgmtLearning Mgmt
Store HelpdeskStore Helpdesk
Workforce CommsWorkforce Comms
Transportation ManagementTransportation Management
Warehouse ManagementWarehouse Management
Home DeliveryHome Delivery
Supply NetworkOptimizationSupply NetworkOptimization
Value Chain AllocationValue Chain Allocation
Value ChainCollaborationValue ChainCollaboration
Item Planningg
Category MgmtCategory Mgmt
Price OptimizationPrice Optimization
Promotion Planning& OptimizationPromotion Planning& Optimization
Merchandise ManagementMerchandise Management
Price ManagementPrice Management
Sales AuditSales AuditDemand ForecastingDemand Forecasting
Returns ManagementReturns Management
Workforce SchedulingWorkforce Scheduling
Learning MgmtLearning Mgmt
Store HelpdeskStore Helpdesk
Workforce CommsWorkforce Comms
Transportation ManagementTransportation Management
Warehouse ManagementWarehouse Management
Home DeliveryHome Delivery
Supply NetworkOptimizationSupply NetworkOptimization
Value Chain AllocationValue Chain Allocation
Value ChainCollaborationValue ChainCollaboration
Item Planningg
Category MgmtCategory Mgmt
Price OptimizationPrice Optimization
Promotion Planning& OptimizationPromotion Planning& Optimization
Merchandise ManagementMerchandise Management
Price ManagementPrice Management
Sales AuditSales AuditDemand ForecastingDemand Forecasting
Returns ManagementReturns ManagementCollaborative
PlanningCollaborativeCollaborative
PlanningPlanning Advanced PricingAdvanced PricingAdvanced Pricing
Global Order Promising
Global Global Order PromisingOrder Promising
FinancialsFinancialsFinancials
“AS IS” “TO BE”
Master Data ManagementIntegration and CollaborationIntegration and Collaboration
Enterprise InfrastructureEnterprise Infrastructure
Indirect ProcurementIndirect Procurement ProjectsProjects CompensationCompensation ITITHRHRHelpdesk
Master Data ManagementIntegration and CollaborationIntegration and Collaboration
Enterprise InfrastructureEnterprise Infrastructure
Master Data ManagementIntegration and CollaborationIntegration and Collaboration
Enterprise InfrastructureEnterprise Infrastructure
Indirect ProcurementIndirect Procurement ProjectsProjects CompensationCompensation ITITHRHRHelpdeskIndirect ProcurementIndirect Procurement ProjectsProjects CompensationCompensation ITITHRHRHelpdesk
Customer OnlineCustomer OnlineCustomer Online Customer Data Hub
Customer Customer Data HubData Hub TCATCATCA
Apps you ownApps you ownApps you own Proposed New AppsProposed New AppsProposed New Apps
FIN
HC
M
Copyright ©2009 Oracle Corporation. All rights reserved.
Future State ArchitectureDeliverable Details – Apps/HW FootprintDeliverable Details Apps/HW Footprint
Copyright ©2009 Oracle Corporation. All rights reserved.
Future State ArchitectureDeliverable Details – Integration DiagramDeliverable Details Integration Diagram
Copyright ©2009 Oracle Corporation. All rights reserved.
Future State ArchitectureDeliverable Details – MDM DiagramDeliverable Details MDM Diagram
Copyright ©2009 Oracle Corporation. All rights reserved. 49
Business Case DevelopmentPerformed During Future State Architecture Phasee o ed u g utu e State c tectu e ase
Architecture
Vision
Current State
Future State
Strategic Roadma
p
EA Governa
nceBusiness
Case
• Strategy Map- Customer Perspective- Financial Perspective
• Understand the existing Business Case culture
• Identify existing:Goals / Drivers
• Agree to Architecture Future State:- Quantifiable Measures
• Business Value
• Identify timelines and milestones for measurement
• Identify alignment with existing auditing and other financial
• Define Future State Costs/Risks
• Estimate EA Roadmap InvestmentsPerspective
• Business Model- Value Proposition- Cost Structure- Revenue Stream
- Goals / Drivers- Priorities- Measures used- Metrics preferred- Monetization numbers
- Metrics for calculation- Non-tangible or Soft criteria
measurement structures and processes
Investments
• Perform Cost/Benefit analysis
• Build the actual
Business Case Development
Activitiesand
Artifacts Revenue Stream
• Business Capability Model
• Operating Model- Level of Business
numbers
• Assess against benchmarks
Build the actual Business Case document
Process Integration and Standardization
WorkEffort
Copyright ©2009 Oracle Corporation. All rights reserved.
Effort
Strategic Roadmap Phase
Copyright ©2009 Oracle Corporation. All rights reserved. 51
Step 4 - Transform
Propose the appropriate actions to transform the “Current State” to the desired “Future State” using Transitional Architecture(s)
• Once you have completed the Application Portfolio Analysis and developed a Future State Architecture, you are able to recommend actions to take for each application.
• The recommended actions may include:
– Replacing existing applications with Oracle Applications and retiring existing applications, resulting in Global Single Instance or Shared Services model
– Upgrading existing Oracle applications
– Modernizing legacy mainframe applications, leveraging Oracle SOA / AIA Foundation Pack – see Appendix or Modernization site
– Migrating existing applications to run on a common platform (Oracle DB / RAC / Linux)Linux)
– Enterprise SOA: Integrating existing applications leveraging Oracle SOA / AIA and optimizing Business Processes leveraging Oracle BPA
Copyright ©2009 Oracle Corporation. All rights reserved.
Step 4 - Transform
• The recommended actions may include (continued):
– Introducing a single User Interface layer, leveraging Oracle WebCenter, across all applications to establish a common ser e perience andacross all applications to establish a common user experience and collaborative work environment for End Users
– Enterprise BI / DW / Reporting solution, leveraging Oracle Business Intelligence EEg
– Enterprise Content Management solution, leveraging Oracle Universal Content Management
– Enterprise Security solution, leveraging Oracle Identity Management p y , g g y g
– OnDemand vs. OnPremise, Buy vs. Build, SaaS, etc…
• A Single Global Instance of Oracle Applications may be the desired goal however a “big bang” approach may not be practical Angoal, however a big bang approach may not be practical. An Implementation Roadmap reflecting a phased-rollout approach (employing one or more of the recommended actions on the previous slides) is a means of achieving a GSI incrementally, thus mitigating risk
d i f h i i
Copyright ©2009 Oracle Corporation. All rights reserved.
and impact of change on an organization.
Strategic RoadmapDeliverable Details – Prioritized Candidate ProjectsDeliverable Details Prioritized Candidate Projects
ntia
ting
Primary Targets Secondary Targets
Future StateFuture State1
Build &Customize as
Diff
eren
Med
ium
usin
ess
Valu
e
1
342
Future StateFuture State
necessary to differentiate
Buy &customize as
necessary
Tabl
esta
ke
Bu
7
56
Future StateFuture StateBuy be st practice A
C
Core ApplicationsHig
hct
B Unstructured Data Management
The Oracle Insight identified 5 major recommendation categories that were evaluated for prioritizationA C BD
E
Business Process
Current Operating Performance
Best PracticeMarginal Stable AdvantageCD Single, Common UI
Med
ium
Impa
E Protected Enterprise
Business Process Optimization
Low
Effort
HighMedium
Copyright ©2009 Oracle Corporation. All rights reserved.
Strategic RoadmapFunctionality Driven Transitional Architecture
Current State (CS)Current State (CS) Establish Common Establish Common Payroll ApplicationPayroll Application
Migrate to Common Migrate to Common ApplicationApplication
Single Payroll ApplicationSingle Payroll Application
• MA& Growth resulted in 4 payroll systems
• Define Standards for common payroll application.
• Establish common business processes for payroll data
• Execute common business processes for Payrolls
Functionality Driven Transitional Architecture
p y y p y pp• Set up PeopleSoft rules to
support entire employee population
p p ycapture and processing
p y
• Multiple payroll • Set up PeopleSoft instance • Consolidate Payroll apps • All new employees set up in
Bus
ines
applications – 1 PeopleSoft Payroll instance
• Build migrations from existing payroll applications into PeopleSoft
• Establish interfaces to Payroll Data (i.e. budgeting apps)
• Train payroll users on new application
• Execute Migration plans to move employee data into new instance
PeopleSoft Payroll.• Retire obsolete payroll
applications.
App
s
• Payroll data stored in multiple applications
• Establish single view of the employee for Payroll data
• Establish Data Governance Processes
• Formalize data governance procedures.
• Validate migrated employee data.
• Establish metrics for business processes
• Data Governance Processes in Place
• Product metrics for business process
info
• No standard hardware or software for payroll applications
• Set up infrastructure to support Enterprise PeopleSoft Instance
• Run instance on new platform. • Tune application as required to support Payroll functions
Tech
Copyright ©2009 Oracle Corporation. All rights reserved.
Strategic RoadmapBusiness Process Driven Transitional Architecture
Current State Current State (CS)(CS)
Rationalize Sales Rationalize Sales ProcessProcess
Rationalize Financial Rationalize Financial ProcessesProcesses
Rationalize HCM Rationalize HCM ApplicationsApplications
Ready for Ready for OptimizationOptimization
• Define Current State Here
• Establish common business processes for
• Establish common business processes for
• Establish common business processes for
• Common use business processes can be ss
Business Process Driven Transitional Architecture
sales Finance people related functions optimized on a new infrastructure platform for grown
• Define Current State Here
• Consolidate disparate sales applications onto a
• Consolidate Financial applications onto a
• Consolidate ERP applications onto a single
• Consolidate Applications can be optimized on a
Bus
ine
State Here sales applications onto a common platform
• Standardized Application Interfaces in Place
applications onto a common platform
• Standardized Application Interfaces in Place
applications onto a single platform
• Standardized Application Interfaces in Place
can be optimized on a shared platform
D fi C t Si l i f l d t Si l i f fi i l Si l i f C /Sh d d t i
App
s
• Define Current State Here
• Single view of sales data for the organization
• Data Governance Processes in Place
• Single view of financial data for the organization
• Data Governance Processes in Place
• Single view of employee/partner/etc… data for the organization
• Data Governance Processes in Place
• Common/Shared data is ready to be consolidated into a single database instance or common database platformin
fo
• Define Current State Here
• Apps and process standardized on architecture standards
• Apps and process standardized on architecture standards
• Apps and process standardized on architecture standards
• Standard Infrastructure platform optimized for HA and scalability – enabling growthTe
ch
Copyright ©2009 Oracle Corporation. All rights reserved.
Oracle@Oracle Architecture RoadmapC SC S SSCurrent State: Current State: Business Silos Business Silos
(1998)(1998)
<Transitional <Transitional States>States>
Future State: Future State: Operational Excellence Operational Excellence
(2003)(2003)
Business Business • 40 Data CentersS ff
• Centralize and Globalize ITC G
• Multiple Transition PhasesArchitectureArchitecture • 2300+ Staff • Centralize IT Governance
• Gain IT efficiencies via IT standardization & optimization
• Reduce Data Centers (2)/Staff (1600)• Save on expenses ($1B/year)
Phases
• 1998 65 ERP inst.
• 2001 20 ERP inst.
• 2002 10 ERP inst.
• 2003 1 ERP inst p ( y )
Application Application ArchitectureArchitecture
• Few standard business processes
• 40 Education registration systems27 IT Support apps
• Standardize core business processes and rationalize apps
• Education Sys Rationalization (1)• IT Support Rationalization (1)
S S /
• 2003 1 ERP inst.
• For BPs, started with RevRec/Financials
• Phase I Capabilities
• Acct• 27 IT Support apps• >1000 applications
• E-Bus Suite Std/Rationalization (< 100 applications)
Information Information ArchitectureArchitecture
• 63 Financial databases• 60 IT Support databases
• Financial Data Rationalization (1 single global instance)
• IT Support Data Rationalization
• Acct Reconciliation
• Corporate Submissions
• Process pp(1 single global instance)
Technology Technology ArchitectureArchitecture
• 97 Email servers on 120 databases
• 501 Education servers600 t t
• Email Consolidation (2 server cluster/4 DBs)
• Education Server Consolidation (296)T t S C lid ti (30)
Efficiency
• Phase II Capabilities
• Full Balance Sheet & P&L
E ti
Copyright ©2009 Oracle Corporation. All rights reserved. 57
• 600 test servers • Test Server Consolidation (30)• Exceptions
• Analysis/Review
…
Strategic RoadmapDeliverable Details – Implementation RoadmapDeliverable Details Implementation Roadmap
Q1 Q 2 Q 3 Q4 Q 1 Q 2 Q3 Q 4 Q 1 Q 2 Q 3 Q 4
FY 2009 FY 2010 FY 2011
Design GVSP
BI Analytics
PROJECTTHEME
Global Platform
BTO Setup & Operations
Managed Services and Hosting Assessment
Business Intelligence
Q1 Q 2 Q 3 Q4 Q 1 Q 2 Q3 Q 4 Q 1 Q 2 Q 3 Q 4
FY 2009 FY 2010 FY 2011
Design GVSP
BI Analytics
PROJECTTHEME
Global Platform
BTO Setup & Operations
Managed Services and Hosting Assessment
Business Intelligence
Plan & Projection
y
ELM OnDemand and UpgradeOptimize HR / Migrate Point Solutions
Portal Deployment
CRM (HR Help Desk )
Hum an Resources
US / Mexico Migration
HR Rest of World
Intelligence
Plan & Projection
y
ELM OnDemand and UpgradeOptimize HR / Migrate Point Solutions
Portal Deployment
CRM (HR Help Desk )
Hum an Resources
US / Mexico Migration
HR Rest of World
Intelligence
Jan-2009 Jan-2010 Jan-2011Jul-2009 Jul-2010Apr-2009 Oct-2009 Apr-2010 Oct-2010
Finance Optimization
Finance & Procurement
Infrastructure
Replatform Hardware and Grid
SO A Based Integration
Security & Rights Mgmt
Upgrade to 9 .0
On Going / Steady State
Proj ect
Foundational
Key
Srv Proc ., Procurement & eSettlements
Program , Resource and IT Asset Management
Finance Optimization
Finance & Procurement
Infrastructure
Replatform Hardware and Grid
SO A Based Integration
Security & Rights Mgmt
Upgrade to 9 .0
On Going / Steady State
Proj ect
Foundational
Key
Srv Proc ., Procurement & eSettlements
Program , Resource and IT Asset Management
Implement Core Modules & CDHImplement Core Modules & CDH
Implement Demantra& ASCPImplement Demantra& ASCP
Retire SalesForce.comRetire SalesForce.com
Implement Document & RecordsImplement Document & Records
Implement CRMImplement CRM
Retire SCORES, ABLAZE, GetPaidRetire SCORES, ABLAZE, GetPaid
Implement BI & AnalyticsImplement BI & Analytics
1 /11 /2009
Benefit Point
1 /11 /2009
Benefit Point
Laboratory Improvement Program Business Processes OptimizationLaboratory Improvement Program Business Processes Optimization
Replace existing CAP.comReplace existing CAP.com
Retire DocumentumRetire DocumentumImplement Web ContentImplement Web Content
Integrate ApplicationsIntegrate Applications
Iterative, On-goingIterative, On-going
Deploy iStoreto CustomersDeploy iStoreto Customers
It ti O iIt ti O i
Deploy Self-Service BI/ReportingDeploy Self-Service BI/Reporting
Oracle Apps/BI
Implement Identity Management & SSOImplement Identity Management & SSO
Oracle UCM Oracle BPA/SOA Oracle WebCenter Oracle IdM
Extend Optimized Business Processes to CustomersExtend Optimized Business Processes to Customers Iterative, On-goingIterative, On-going
Implement Federation & Access ManagementImplement Federation & Access Management
Automate Provisioning / De-provisioningAutomate Provisioning / De-provisioning
Copyright ©2009 Oracle Corporation. All rights reserved.
pp
Business Case DevelopmentPerformed During Strategic Roadmap Phasee o ed u g St ateg c oad ap ase
Architecture Vision
Current State
Future State
Strategic Roadmap
EA Governance
Business Case
• Strategy Map- Customer Perspective- Financial Perspective
• Understand the existing Business Case culture
• Identify existing:Goals / Drivers
• Agree to Architecture Future State:- Quantifiable Measures
• Business Value
• Identify timelines and milestones for measurement
• Identify alignment with existing auditing and other financial
• Define Future State Costs/Risks
• Estimate EA Roadmap InvestmentsPerspective
• Business Model- Value Proposition- Cost Structure- Revenue Stream
- Goals / Drivers- Priorities- Measures used- Metrics preferred- Monetization numbers
- Metrics for calculation- Non-tangible or Soft criteria
measurement structures and processes
Investments
• Perform Cost/Benefit analysis
• Build the actual
Business Case Development
Activitiesand
Artifacts Revenue Stream
• Business Capability Model
• Operating Model- Level of Business
numbers
• Assess against benchmarks
Build the actual Business Case document
Process Integration and Standardization
WorkEffort
Copyright ©2009 Oracle Corporation. All rights reserved.
Effort
EA Governance Phase
Copyright ©2009 Oracle Corporation. All rights reserved. 60
EA Governance> Assess and Recommend Risk Management
Intent• EA Governance primarily revolves
around strategic decisions that are taken
Focus1. What decisions need to be made?
• Decisions about major IT domains
g
that will influence the future design of the IT environment.
• EA Governance sets in place design related Policies, Standards, Guidelines
2. Who should make those decisions?• Rights are exercised in different
governance styles
and Procedures that must be complied with.
• EA Governance is concerned with ensuring a design integrity of the
3. How will these decisions be made and measured?• Multiple mechanisms make
governance workg g g ybusiness as a whole and will govern decisions that are outside of the domain of IT.
governance work
Without EA Governance, Strategic Initiatives are likely to fail• May be possible to realize a few incremental benefits• No real business benefits will be realized from major IT Initiatives
Copyright ©2009 Oracle Corporation. All rights reserved. 61
EA Governance Guiding PrinciplesGuiding Principles
• Aligning the Enterprise Architecture with the business strategy increases
Strategic Focus
• Aligning the Enterprise Architecture with the business strategy increases the value of IT to the business.
Compliance to Enterprise Architecture
• An effective Enterprise Architecture needs to be a guide for all IT projects. IT projects that do not comply with the Enterprise Architecture have a much higher chance of not aligning with the Business Strategy of the organization and dilute the value of the Enterprise Architecture to theorganization and dilute the value of the Enterprise Architecture to the organization.
Wide Participation
• Wide participation by stakeholders throughout the enterprise ensures that the Enterprise Architecture will meet the optimal requirements of the enterprise, not just a select group of LOB requirements
Copyright ©2009 Oracle Corporation. All rights reserved. 62
EA Governance
CIO/CTOCIO/CTOSets Direction Sets Direction
Info
rms
Advises
G
Steering CommitteeSteering
CommitteeArchitecture
BoardArchitecture
Board PMOPMOAdvises
GuidesProject Teams
Project TeamsControls
DeterminesPriorities
Executes Change
Copyright ©2009 Oracle Corporation. All rights reserved. 63
Executes ChangeProjects
Governance Environment
Copyright ©2009 Oracle Corporation. All rights reserved. 64
Source: TOGAF
EA Governance roles and responsibilities matrixDeliverable DetailsDeliverable Details
Architecture Implementation GovernanceSteering
CommitteePMO EA Board Project
TeamsCommittee TeamsProvide Communication & Awareness and of standards & assets
I C A & R C
C d t C h & C liConduct Coherence & Compliance Reviews I C A & R I
Provide cross-project Communication and Guidance I A R I
Escalation Resolution A & R C C I
Allowance for Deviation and Dispensation I A R I
Define Degree of EA team engagement I R A C
Identify Resource Capability & Capacity I A & R C C
Copyright ©2009 Oracle Corporation. All rights reserved. 6565
yUpdate Architecture Repository & Capture change requests I C A RR Responsible
A AccountableC ConsultedI Informed
Business Case DevelopmentPerformed During EA Governance Phasee o ed u g Go e a ce ase
Architecture
Vision
Current State
Future State
Strategic Roadma
p
EA Governa
nceBusiness
Case
• Strategy Map- Customer Perspective- Financial Perspective
• Understand the existing Business Case culture
• Identify existing:Goals / Drivers
• Agree to Architecture Future State:- Quantifiable Measures
• Business Value
• Identify timelines and milestones for measurement
• Identify alignment with existing auditing and other financial
• Define Future State Costs/Risks
• Estimate EA Roadmap InvestmentsPerspective
• Business Model- Value Proposition- Cost Structure- Revenue Stream
- Goals / Drivers- Priorities- Measures used- Metrics preferred- Monetization numbers
- Metrics for calculation- Non-tangible or Soft criteria
measurement structures and processes
Investments
• Perform Cost/Benefit analysis
• Build the actual
Business Case Development
Activitiesand
Artifacts Revenue Stream
• Business Capability Model
• Operating Model- Level of Business
numbers
• Assess against benchmarks
Build the actual Business Case document
Process Integration and Standardization
WorkEffort
Copyright ©2009 Oracle Corporation. All rights reserved.
Effort
Business Case Phase
Copyright ©2009 Oracle Corporation. All rights reserved. 67
Business Case• Business Case Deliverable Outline:
– Alignment – better alignment between the business and IT enables a shared understanding of the business goals and IT opportunities available to more effectively
th b i Thi k it ibl t id tif th li ti th t tt t trun the business. This makes it possible to identify the application that matter most to the business.
– Financial Benefits
– Lower Costs through application consolidation and/or retirementg pp
– Non-Financial Benefits
– Frees up resources to work more on applications that will support future business needs and less on just keeping the lights on.
– Expenditures
– Hardware / Software / People – all can be reduced through rationalization
– Risk
– Compliance – through fewer systems and simplified interactions, comliance is more easily achieved.
– Fewer systems mean less moving parts that can break
– Assumptions and Constraints
Copyright ©2009 Oracle Corporation. All rights reserved.
– Assumptions and Constraints
Business Case DevelopmentPerformed during Business Case Phasee o ed du g us ess Case ase
Architecture
Vision
Current State
Future State
Strategic Roadma
p
EA Governa
nceBusiness
Case
• Strategy Map- Customer Perspective- Financial Perspective
• Understand the existing Business Case culture
• Identify existing:Goals / Drivers
• Agree to Architecture Future State:- Quantifiable Measures
• Business Value
• Identify timelines and milestones for measurement
• Identify alignment with existing auditing and other financial
• Define Future State Costs/Risks
• Estimate EA Roadmap InvestmentsPerspective
• Business Model- Value Proposition- Cost Structure- Revenue Stream
- Goals / Drivers- Priorities- Measures used- Metrics preferred- Monetization numbers
- Metrics for calculation- Non-tangible or Soft criteria
measurement structures and processes
Investments
• Perform Cost/Benefit analysis
• Build the actual
Business Case Development
Activitiesand
Artifacts Revenue Stream
• Business Capability Model
• Operating Model- Level of Business
numbers
• Assess against benchmarks
Build the actual Business Case document
Process Integration and Standardization
WorkEffort
Copyright ©2009 Oracle Corporation. All rights reserved.
Effort
Portfolio Rationalization Benefits
• Lower licensing costs • Lower and more manageable
• Increased business agility• Increased IT flexibility
Tangible Intangible
grisk• Reduced costs for IT development
y• Reduced risk on non-compliance
Quantified
• Standardized technologies enables standardi ed skillsetsenables standardized skillsets• Increased utilization of IT skills• Simplified IT management
Non Quantified
• Simplified IT management
Copyright ©2009 Oracle Corporation. All rights reserved.
Business Value Discovery Matrix Developed during Roadmap OADP Phase
Simplification6
Primary Targets Secondary
Targets
Financial Impact for Portfolio Rationalization
p g p
1. Vendors2. Redundant Functionality3. Standardization (e.g. OS)4. Info. Lifecycle Mgmt
Consolidation
Hig
hest 4 6
71
2 911
12
1315
5. Databases6. Applications7. Data8. Servers9. Test / Dev Environment10. Backupav
ings
3
Hig
h
5810
111417
1610. Backup
Virtualization11. Middle Tier12. Data Tier13. Application Appliances14 Serversed
Sa 3
14. Servers15. Databases
Automation16. Management17. Backup Processes1 Yr
M
3+ Yrs2 Yrs
Copyright ©2009 Oracle Corporation. All rights reserved. 71
Avg. Time to Value
Risk Mitigation TemplateAssess and Recommend Risk Management
Risk Category Risk Description Probability of Occurrence
Potential Business Impact
Recommended Risk Mitigation Actions
Operational Service Disruption due to Application Low High Ensure proper planning for application
g
Downtime migration – schedule off hours
Slow Performance of new applications because of increased demand
Low High Ensure that target application goes through full load/performance testing prior to implementation
Financial Loss of revenue due to new application complexity
Med High Ensure Proper training on new application to all end-users
Increased SW maintenance costs High Low Ensure that retired application support contracts are not renewed
Compliance / Legal Security for new application Low Med Ensure that security performs a full audit of new system prior to implementation
PII data being migrated to new system High Low Ensure that new system meets PII li i tcompliance requirements
Strategic Loss of business functionally Med Med Ensure that end to end process testing is completed prior to implementation
Copyright ©2009 Oracle Corporation. All rights reserved. 72
Outputs of Stage I: Portfolio RationalizationRationalization
• Matrix of Business Capabilities / Supporting gApplication software
• Matrix of Applications / Supporting Technology capabilities/Assetscapabilities/Assets
• Catalog of IT Standards(Interfaces and Assets)• Transitional Architectures (up to ArchitectureTransitional Architectures (up to Architecture
Optimization)• Governance models• Business Case to support Portfolio Rationalization
Copyright ©2009 Oracle Corporation. All rights reserved. 73
Next Steps
Copyright ©2009 Oracle Corporation. All rights reserved. 74
IT Optimization (ITO):Stage II
Stage I: Portfolio RationalizationITOITO
A hit tA hit t Stage I: Portfolio RationalizationArchitectureArchitectureVisionVision
Stage II: Data Center & System Optimization
ness
&
men
t
Stage III: Shared Services/Cl d C ti
Stra
tegi
c B
usi
ITO
Alig
nm
Cloud Computing
Copyright ©2009 Oracle Corporation. All rights reserved. 75
Copyright ©2009 Oracle Corporation. All rights reserved. 7676
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