IT is a Key Contributor to Achieving Business Objectives

Transcription

1 IT is a Key Contributor to Achieving Business Objectives CAUBO 2015 Tides of Change CANHEIT 2015 Keep Calm and Power Up

2 Here with you today Denis Cossette Associate Vice-President Financial Resources uottawa Telephone: (613) Danielle Levasseur Chief Information Officer Information Technology uottawa Telephone: (613) Damien Dumas Senior Manager, IT Advisory, KPMG Lead of Enterprise Architecture Practice Telephone:

3 Agenda 1 What is Enterprise Architecture? 2 Value of EA for a CIO 3 Value of EA for the institution and for a CFO 4 Question period 2

4 What is Enterprise Architecture?

5 Focus on projects Focus on the whole institution What is EA? Strategy City strategy «City Evolution» Enterprise Strategy «Enterprise Evolution» City planning «City Map» Enterprise Architecture «Enterprise Mapping» Transition Strategies Planning Business Architecture Structures Sites Processes IT Architecture Data Applications Technology Architecture «Building planning» Project Architecture «Project planning» Design & Delivery EA can be compared to city planning; it defines the evolution rules and the targeted vision, leveraging the assets that are in place. 4

6 EA provides alignment of Business and IT changes with strategy Set of Blueprints for Planning and Design Enterprise Architecture Aligns Aligns Business Architecture IT Architecture Represents Aligns Aligns Represents Enables Drives Drives Business Strategy Drives Requirements Business Operations Technology Operations Information Technology Strategy In short, EA s main objective is to enable the Business Strategy. 5 5

7 Potential Benefits of Enterprise Architecture Enterprise architecture is an emerging-leading practice within governments and large organizations across the world. Governments at all levels are building an enduring change capability by creating permanent enterprise architecture programs. Many large financial services, telecommunications, and manufacturing corporations have implemented or are currently implementing enterprise architecture functions. Why Enterprise Architecture? To Better Understand the Business Once we understand the business, we can become better partners. To Reduce Potential Confusion Confusion is reduced by explicitly representing the business in a format that is reviewable by the business and the EA. To Better Align Resources With Business Requirements To more effectively provide value directly aligned to the business needs. To Better Integrate with the Business To be as responsive as possible to the business needs as the business changes. Architecture value propositions include: Cost reduction (standardization and reuse); Agility (persistent and standardized models); Business flexibility; Reconfigure resources; Portfolio rationalization; Technology simplification; Speed (knowledge access); Ability to manage IT; De-coupling of knowledge from individuals (cope with volatility of staff); Governance mechanism for critical assets; Context for architecture education and assessment; Adaptive mechanism to promote alignment; between IT assets and business initiatives. 6

8 Description La stratégie consiste à: Définir une architecture cible pour définir la vision de la gestion client dans l organisation Identification des fonctions d affaires et définition de leurs processus. Architecture de la donnée client dans une perspective bout en bout, de la saisie à l analyse. Identification de la solution CRM cible en favorisant l utilisation de standards actuellement en place (ERP et/ou Microsoft) et identifiant les applications à éliminer. Architecture technologique globale de l ensemble de la solution. Préparer l implantation du CRM en créant une BD maîtresse client. Implanter le CRM en différentes phases (à confirmer dans l architecture cible): Implantation des fonctions de base pour supporter le processus de Ventes (contacts, prospects, comptes et interaction). Implantation des fonctions de soutien, dont les fonctions libre-service, ou des fonctions attendues telles que la prise de rendez-vous. Ajout des fonctions d affaires qui ne sont pas supportées efficacement actuellement dans l organisation (campagnes, événements). Remplacement progressif des applications diverses supportant les informations clients. Certaines fonctionnalités ne seront pas supportées par le CRM et devront être conservées ou déployées dans une autre solution. Intégration des données clients dans l environnement BI tout au long du projet. Projets en cours Positionnement CRM étude des besoins Stratégie Marketing Refonte des sites Web/libre-service Initiatives à planifier P1 -Implantation - Projet CRM Ventes-Marketing P2 - Implantation des modules ERP requis Couche intégration des données clients et dépôt central intégré CRM Intelligence d affaires Intégration de l information Client dans une application CRM Marketing Vente Service Gestion des campagnes Gestion des événements Marketing direct (Courriel et papier) Gestion des opportunités Satisfaction clientèle ExperNet Adresses Gestion des prospects Gestion des contacts Gestion des comptes Gestion de l interaction Intégration donnée client Sujet de données Opportunités à long terme P3 - Libre-service client Gestion de la connaissance et collaboration Gestion documentaire Fonctions libreservice Analyse et reddition de compte Prospect Clients Contrats Plaintes Communications Appareil Mesures Ventes Subventions Campagnes CRM Applications $2,1 M $ 2,0 M $ 2,8 M $ 1,0 M $ 0 K ERP Replacement P8 POS P9 WMS Événements Legend Paid by unit P5 BI Architecture P7 Integration Architecture P1 ERP Replacement P5 BI Infrastructure P6 Document Management Architecture P4 Portal Architecture PRC-PEE P2 ERP BI Solution for Sales Opportunités P3 Product Information Catalog Données crédit Process definition has to occur before Projet Résidentiel Légende Ajout ou modification prioritaire Ajout ou modification éventuelle Via une solution tiers Aucun changement Optimized IT investments with an aligned IT portfolio EA Processes Four major EA processes need to be defined and set in motion to govern the processes that take place during a project s life cycle. 1 EA Evolution Current and target architecture Initiative list Scope expectation Compliance evaluation Exemption decision Stratégie AE #2: Gestion de la relation client Roadmap Project Portfolio Management Process Prioritized project Project Delivery 2 EA Compliance Non compliant project 3 EA Exemption EA expectations All EA deliverables Project Management Process EA updates Scope modification 4 EA Communication EA delivers guidelines (principles, standards and strategies) for aligning all initiatives to the vision of the organization. 7

9 EA approach to Ensure IT Alignment Our approach helps to ensure that the deliverables support the definition of an aligned EA Roadmap. EA Strategy Framework for an Aligned Roadmap Institution Business Strategies Enterprise Architecture Principles Higher Education Trends Prioritized Institution Business Requirements Findings and Optimization Opportunities Architecture Strategies that define the EA Target Projects to be accepted and prioritized Project Project Project Project Project Current IT Assessment (Data, Solutions and Infrastructure) 8

10 EA Deliverables The goal is to gain a holistic perspective of the issues and solutions for the entire institution (process, data and IT). The deliverables are high-level, business-oriented visual artifacts: Teachers Students Managers Development of services PROGRAM DESIGN Sale of services RECRUITMENT ADMISSIONS MANAGEMENT REGISTRATION MANAGEMENT Payment for services STUDENT BILLING PAYMENT PROCESSING RELATED COSTS Delivery of services TRANSFER OF KNOWLEDGE KNOWLEDGE EVALUATION Graduates Model of the institution s business functions and value chain; Process efficiency heat map coupled with a view of key processes; Teachers Researchers FINANCE MANAGEMENT INTERNAL SERVICES RETENTION SCHOLARSHIP MANAGEMENT MANAGEMENT DESIGN OF PROMOTION OF MANAGEMENT OF RESEARCH PROJECTS RESEARCH PROJECTS GRANTS Administration Communities and Development HUMAN IT MANAGEMENT RESOURCES STUDENT SERVICES MANAGEMENT OF DONATIONS MARKETING/ PUBLIC FACILITIES GRADUATE SERVICES RELATIONS VALIDATION OF DIPLOMAS MANAGEMENT AND PUBLICATION OF RESEARCH FINDINGS LIBRARY CASE CENTER Content Research and publication AUDIOVISUAL ARCHIVES Business solutions and technology scorecards; Architecture principles; Strategically developed EA target; Prioritization grid; Program and project roadmap. Just enough architecture, just in time 9

11 Why EA is so important for a University? In the Universities, IT is a decentralized function; Lack of institutional s inventory of assets bringing duplications; Already seen 8 different applications for the same business functions! Data is managed in silos; Business needs can sometimes be answered by solutions of other units. Ex: strong similarities between Athletics and Music IT HR Centralization Level University A University B University C University D University E University F Source: Canadian Universities where KPMG has been recently involved Limited funding means Universities must optimize their assets and investments. 10

12 Governance to foster synergy between IT groups EA allows the implementation of a new way of managing IT; Central IT provides guidance Federated IT Target IT Governance Model Centralized IT Federated governance improves synergy within the University s decentralized operational model; EA provides a holistic perspective, which also improves synergy between the various groups; IT integration High Low Decentralized IT, Parent led Today, largely autonomous groups proactively participate in the institutional management of IT. Low IT process standardization High Central IT has a Veto An EA program will contribute in increasing the collaboration between all IT resources of the Institution 11

13 Other benefits for institutions Implement IT governance that involves business; Develop a road map that allows the institution to plan and prioritize investments; Several institutions have adopted EA and have reaped benefits. It allowed them to: Develop a holistic strategy to optimize the deployment of an ERP/to optimize post-implementation ERP; Improve standardization/integration of all technologies; Reduce total cost through greater IT centralization; Improve integration capabilities to promote greater IT agility; Improve data foundation to promote better decision-making; Review and design of an IT strategy following the arrival of a new CIO; And several other lateral benefits. 12

14 Value of EA for a CIO

15 IT Context at the University of Ottawa UNIVERSITY CONTEXT 12 Faculties including Medicine and the Library 42,000 students; Research oriented; Bilingual university. IT ORGANIZATION IT budget of $24M; Baseline of 150 resources within the centralized IT team; 60% of IT resources are decentralized, Arrival of a new CIO; Lack of a global IT vision. IT ISSUES SIS system to replace (currently outdated); Several competing requirements (HR, Research, Analytics, Mobile, etc.); Decentralized IT development with poor integration capability; Redundant applications; Underutilization of technology assets. 14

16 IT Organization VP Resources CIO Senior Director, IT Solutions Senior Director, IT Services & Infrastructure Director IT HR & Administration Enterprise Architect Manager, Strategic Initiatives Director, SIS Replacement Project HR/Finance Student experience Faculties & research Web services Tech. dev. Mainframe Data centre Cloud services Service mgmt. Network Telephony HR Finance Procurement Administration Security Architect Infrastructure Architect Data & Integration Architect Initiatives Projects Communications Benchmarking Research PeopleSoft Retrofit proj. Companion proj. Decomm. proj. Leveraging IT to enable faculties and services, ultimately empowering our students, professors, and staff to achieve their best. 15

17 EA was deployed as a project Primary goal is to develop a business vision rather than a technology vision. The success of the EA initiative will depend on involvement by all major stakeholders at the University Six-month project created business momentum; Partner who knows EA and the university context; Very active participation by all Faculties and administrative units; Deans/ vice-presidents and their main contributors CIO participated in all meetings Inventory of all IT assets (including in Faculties) conducted in parallel; Communication of the highlights of the EA diagnosis to raise awareness within the organization of the problems caused by a silo mentality; Creation of an EA strategy that aligns with the University s priority requirements; Implementation of IT governance to approve IT roadmap and directions; Tour to communicate EA results. 16

18 Our Key EA Messages Several requirements must be met concurrently IT Maslow categories Decisional & Informational Utilization of data to support decision-making process New Capabilities / Trends (Activities that can now be automated with new technology capabilities) Collaboration & Integration (Capabilities that increase integration and collaboration, limiting data duplication) High Volume / End-to-End Processes (Processes that manipulate a high volume of transactions) Basic Processes (Processes that are automated in most large organizations) Sample requirements to illustrate the findings Faculty Dash-board Destination 20/20 Dashboard Cost of Programs Self-Service BI Donors reporting Mobile services elearning Portals Mobile teacher evaluation Student data Professor Year-end Review edoc & Collaboration Integration technologies Student Mid-Term Grades Curriculum Management Thesis management Workflow technologies Teachers Courses Evaluation Research Grants Pay Receivables Procurement IT must meet over 400 business requirements; We must serve students properly and optimize our effectiveness through the judicious use of leading-edge technology. 17

19 Key Messages from EA Strategic Themes Addressed Themes Efficiency Academics Agility Security IT Governance Strategies 1. SIS ecosystem 2. Mobile user experience 3. CRM Talisma functionality 4. End-to-end approach 5. Blended learning framework 6. Complementary technologies 7. Research systems 8. Graduate and International processes 9. Business Intelligence capabilities 10. Master data management 11. Integration layer based on services 12. Portal technologies 13. Data centre and network capacity 14. Institutional document management 15. IT security program 16. Federated IT governance framework The strategies helped define a realistic target that supports the University s primary strategies and requirements while aiming for customer (student, professor / researcher) satisfaction. 18

20 Organizational efficiency Improve institutional ROI Our Key EA Messages An approach to prioritize projects P5 P68 P2 Corporate green light Hot spot! P6 P8 P8 P1 Projets du programme Program Projects PX Liste des projets du programmes PX Program Projects List Projets pré-requis Projects PX Identification Pre-requisite des projets pré-requis aux PX Identification projets la liste of the projects prerequisite from the projects list P96 P83 P9 P10 P3 P4 ROM $ 1 M 500 K > $ < 1 M 200 K > $ < 500 K $ 200 K Paid by units / Faculties P111 Cold case People s choice P84 Mandatory Legend / Risk Mandatory Mandatory Risk Risk mitigation IT Pre-requisite Normal P110 P1A P7 Framework Source: Gartner Improve student and faculty experience Personal productivity Prioritization must achieve a balance between optimizing the process and satisfied use of our tools. 19

21 IT Vision, IT Investment portfolios, IT Service Catalog Low IT integration High uottawa IT Governance - An IT Federated Model Level Entities Central IT provides guidance Federated IT Centralized IT Decentralized IT, Parent led Executive Level uottawa CA and CA doyen Ensure IT alignment with strategic vision Approve prioritized IT portfolio investments Low IT process standardization High Central IT has a Veto IT Management Level Comité de gestion des changements par domaine fonctionnel Comité de gestion IT Advisory des changements Groups par domaine fonctionnel Demandes de changement (using Demandes current de changement Committees per domain) Identify opportunities and recommend IT evolution strategy per domain for institutional and shared/shareable solutions on an annual and three year basis Unit Level Comités décisionnels TI facultaire/service Comités décisionnels TI facultaire/service Unit IT sub-committee Planification annuelle des investissements TI Planification annuelle des investissements TI Identify and prioritize business requirements and opportunities Ententes de services Ententes de services Elaborate IT investments annual planning Participate Achat d équipement Achat d équipement to the elaboration of uottawa overall IT investment portfolio via the IT Steering and the ARBs Demandes de changement Agree Demandes on Service de changement Level Objectives with CCS The creation of IT Advisory Groups will contribute to the development and to the operationalization of an institutional IT vision 20

22 Positive effects of our project Recognition of the problems related to a silo mentality; Optimization of investments in the SIS; Shared vision to improve integration and effectiveness of institutional processes; Optimization of end-to-end processes added to the University s strategic plan Implementation of mechanisms and tools to foster communication, thus improving cooperation with Faculties and Services; Greater focus on IT allowing for greater commitment to the vision; Greater commitment due to transparent mechanism for prioritization. 21

23 Benefits of Enterprise Architecture (EA) for uottawa Align IT evolution with Institutional strategic planning (Destination 2020); Identify and prioritize opportunities considering the Institutional mission, vision and the community wide requirements (students, professors, researchers, etc.); Optimize every dollar invested into technology to enable uottawa to do more Ensure common understanding of Institutional reality and challenges; Define guiding principles to support the decision process and technological design of solution; Build an IT vision and a cohesive plan to optimize technological investments; Improve communication between IT and the entire institution; Recognize IT as a business partner. 22

24 After two years... Completed to date Three institutional initiatives endorsed by the community: Academic CV; Drupal migration; Implementation of a vanilla student system. IT budget planning aligned with the Faculties Top 5 Launch of institutional initiatives proposed by the Faculties Event management, facilities management, electronic payment. Community buy-in into governance, approach and processes Continuing challenges Maintain the momentum of the initiative given the requirement to replace the SIS and the addition of several requirements! Implement second-level, theme-based governance (teaching, research, student experience, ) Ensure that this approach is adopted at other levels within the organization, independently of CIO involvement IT is now seen as a partner in the institution s evolution. 23

25 Value of EA for an institution and for a CFO

26 Finance Context at Ottawa University UNIVERSITY CONTEXT 12 Faculties including Medicine and the Library 42,000 students. Research oriented. Bilingual university. ORGANIZATION Total operating budget of $800M; Total University budget of $1.1B; Strategic plan initiatives to be financed, including new technology initiatives; Many broken, segmented processes. FINANCIAL ISSUES Significant infrastructure-related spending over the next five years (over $350M, including SIS) creates competition for resource allocation; Expenses are growing more quickly than revenues (structural challenge); Differentiation, prioritization and transformation are now Ontario government buzzwords. 25

27 Barriers that CFOs face CFOs should support this kind of initiative because the two greatest barriers to effectiveness are technology related. Source What s around the corner for CFOs, KPMG

28 Pressures on Finance Function Globalization Shortage of Skilled Finance Staff Increasing Competition Organizational Complexity Finance Function Global Financial Crisis Outdated IT Systems New Rules and Regulations Budget Constraints IT is part of the solution to several of the current pressures on the Finance Function Source : KPMG International 27

29 Finance Goals Organizational transformation The EA approach allows us to define, on an institutional level, what needs to be implemented to achieve these transformations. Completeness of financial information EA allows for a better understanding of information issues. Cost optimization Duplication represents a significant operational cost for universities; Reveals several opportunities to rationalize the university s financial resources; Identifies opportunities for shared services. Enterprise Risk Management EA work improves the ability to target and manage risk. Source What s around the corner for CFOs, KPMG

30 EA Results are useful for the CFO as well Research Management Financial Management CFO could take advantage of EA deliverables to support institution improvements RE-010 Research Proposal Management RE-070 Animal Care & Biosafety Compliance FI-010 Financial Forecast FI-060 Receivable account management Finance must participate in continuous improvement RE-020 Funding & Grant Management RE-080 Research Network Collaboration FI-020 Growth Management FI-070 Payable account management activities in order to support global optimization of investments and assets usage; RE-030 Research Protocol Execution RE-090 Research Ethics Management FI-030 Treasury Management FI-080 General ledger The business model serves as a foundation for RE-040 Research Publication RE-100 Research Chair Management FI-040 External financial information management FI-090 Finance administration identifying those responsible for processes, assets, performance measurement factors, etc.; RE-050 Research Commercialization RE-060 Infrastructure Platforms Management FI-050 Internal financial information management No issues highlighted yet Satisfactory Legend Opportunity for improvement Problem area End-to-end processes integration and data management are key initiatives for any CFO to ensure the quality and reliability of information. 29

31 From a Finance perspective, EA allows us to: Improve the financial credibility of projects A rigorous approach that identifies all the IT and business impacts; Better ability to sell investments by considering all the factors involved. Ensure that every dollar is invested in the right place Institution aligned along business priorities; Better general consensus on IT investments. Make the institution evolve towards an optimization of business processes Solutions are acquired as part of process improvement. Reduce the number of redundant technology solutions within the organization Rationalization of the business solutions resulting in fewer suppliers to manage; Fewer data centres; Standardization of the operating procedures. Improved data management Standardization that minimizes data sources; Fewer clerical activites to consolidate information; A single window on results. EA improves the synergy between IT and Finance! Finance gains when it properly supports EA initiatives: To obtain greater common commitment to the organization s major priorities; To use transparent prioritysetting mechanisms; To improve visibility on opportunities for optimization; To ensure that investments are aligned with the strategic plan. 30

32 Reliable financial forecasts A Facilitator to bring about Intelligent Finance How Intelligent Finance Function works Strategy and transformation of the Finance function Enterprise Performance Management 4 Finance function talent management Integrated financial and risk management Sound aid to decision-making 3 5 Financial management activity ration 1 2 Finance function shared services Efficient financial operations Source: KPMG 31

33 Questions / Comments

34 Thank you!