Aligning IT investment and Business

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1 IBM Software Group Aligning IT investment and Business The role of requirements management, portfolio management and enterprise architecture Productivity, Governance, Innovation Dr Tariq Aslam 2009 IBM Corporation

2 AGENDA Critical Business Challenges Aligning IT with Business IBM Solution Success Stories Q&A 2

3 Critical Business IBMChallenges/Pain Software Group Rational software Organization is not aligned with vision/mission/kpi. Organizational structure or capabilities do not match with the technology we acquire. Companies have difficulty understanding the impact of a change. After the restructuring either the business processes do not work or technology fails. Operational/business processes are inefficient. Companies procure system that do not integrate. 3

4 Critical Business IBMChallenges/Pain Software Group Rational software We have no visibility over the critical systems, suppliers and capability. How we ensure people know how to carry out a task assigned to them. We define requirements after the system delivered. How we ensure critical user requirements are implemented. How can we validate our requirements and ensure error free delivery of our system. How can we maintain system after the delivery. How to go from AS IS to TO BE status. 4

5 Portfolio overview BUSINESS DOMAIN EXECUTION DOMAIN Enterprise Architecture & Frameworks Analysis & Design Product, Project & Portfolio Management Requirements Definition & Management Implementation Configuration & Change Management Measurement & Reporting Iteration Management Quality Management Production/ Operation ELM 5

6 Enterprise Architecture Helps IBM Software Group Rational software Enterprise Architecture is the description of the current and/or future structure and behavior of an organization's processes, information systems, personnel and organizational sub-units, aligned with the organization's core goals and strategic direction. The primary purpose of creating an Enterprise Architecture is to ensure that business strategy and IT investments are aligned. As such, enterprise architecture allows traceability from the business strategy down to the underlying technology. Enterprise Architecture relates more broadly to the practice of business optimization in that it addresses business architecture, performance management, organizational structure and process architecture as well. 6

7 Bridging thegroup Gap Rational with Business Alignment and Optimization IBM Software software ENTERPRISE INFORMATION ENTITIES Vision Planner Mission Executed by Strategic Objectives Executed through Initiatives Responsible for To overcome Or take advantage of Owner Composed of Abide by Use Designer Use Applications Departments Process Groups Policies Run on Belong to Executed by Process Maps Challenges & Opportunities Based on Roles Linked to Uses Perspectives Translates into Drives Responsibilities Uses Developer Data Hardware Network Technology Organizations create and consume information as part of their planning, management, execution and delivery activities on continuous basis. 7

8 Bridging thegroup Gap Rational with Business Alignment and Optimization IBM Software software DEFINING THE ENTERPRISE A Business Strategy is Executed by Providing business services that... Business Architecture Are implemented by processes that... Are executed through activities that... Information & Applications Architecture Are automated by a service (functionality) of an application... which uses the component(s) of a system... Infrastructure Architecture which is being processed on a given platform / server / equipment 8

9 What is EA Planning 9

10 If you don't know where you are going, any road will take you there Lewis Carroll. 10

11 Enterprise Architecture Define the Enterprise Strategy, goals and Strategy Business Métier Applications & Systems Information & Data Network & Infrastructure Objectives : What to do, and how to do it? Business Processes : support the strategy, Operational organization The Applications support the Business, implement the business functions in the IT systems The Information is key for the organization : It is the fuel that drives the architecture Infrastructure that supports the IS: -Technical components: servers, networks, etc. -Technology: platforms, etc. 11

12 Gartner EA Tools Magic Quadrant IBM System Architect positioned at the front of the Leaders Quadrant. 12

13 System Architect NO 1 in Magic Quadrant IBM Software Group Rational software Capture and Model all Domains of the Organization Application Network and Infrastructure Service Models Behavior (UML Support) Network Topologies Matrix Views Organizational Charts Process Models Relational Application Models Data Modeling Business Process Modeling and Analysis Data Models Goals Objectives Class Diagrams 13

14 System Architect NO 1 in Magic Quadrant IBM Software Group Rational software Create an Organizational Blueprint Leverage Your Existing Information Disparate Data Excel XMI Business Strategy DDL CMDB IDL CSV Visio Visio Organization & Process Rose XML Applications and IT In The System Architect Repository Becomes Managed Create Information Roadmap 14

15 System Architect NO 1 in Magic Quadrant IBM Software Group Rational software Simulate and Optimize Processes Analyze resource utilization Determine cost structures 15

16 System Architect NO 1 in Magic Quadrant IBM Software Group Rational software Time Lapsed Visualizations As-Is/To-Be Transition 16

17 System Architect NO 1 in Magic Quadrant IBM Software Group Rational software What if Analysis WHAT part of the organisation will be affected IF this process step is removed in the future state? 17

18 Impact Analysis 18

19 Impact Analysis 19

20 BUSINESS PROCESS ANALYSIS EXTENDED FOOTPRINT ERP Business Domain Vision Composed of Business Flow u as Me Composed of Drives KPI By d e r Mission Executed Through Strategy Business Process Occurs in Different Owned by Business Scenario Executed Through Business Activity Executed By Belongs To Position Department Complies with Uses Policies Executed Using System Network Information Runs On Part Of Application Connected To Server 20

21 BUSINESS PROCESS DECOMPOSITION SAMPLE MODELS Business Domains Process Hierarchy Business Procedure Scenario Flow Procedure Step Application Mapping 21

22 Bridging theibm Gap, thegroup IBM Rational Solutions Software software System Architect Visualize the Organization Enterprise Strategies & Direction Projects & Initiatives Business Processes & Services Applications Orgs & People Data IT Infrastructure & Services With SA you can see key EA components supporting Enterprise strategies & goals! With SA you can see key EA components dependent upon specific technologies! With SA you can manage key EA components as projects and initiatives! 22

23 Portfolio overview BUSINESS DOMAIN EXECUTION DOMAIN Enterprise Architecture & Frameworks Analysis & Design Product, Project & Portfolio Management Requirements Definition & Management Implementation Configuration & Change Management Measurement & Reporting Iteration Management Quality Management Production/ Operation ELM 23

24 What Happens When You Lack Effective Portfolio Management No Portfolio Management Means Immediate Result End Result: Poor New Product Performance A reluctance to kill projects Many projects added to list A total lack of focus Too many projects - resources thinly spread. Projects in a queue. Quality of execution suffers. Weak decision points Poor Go / Kill decisions Too many low value projects: -Tweaks and modifications -Good projects are starved Too few stellar product winners Many ho hum launches No rigorous selection criteria Projects selected on emotion, politics Wrong projects are selected Many failures No Strategic criteria for project selection Projects lack strategic direction Projects not strategically aligned Scatter gun effort Does not support strategy Higher failure rates 24 Slide 20

25 Spider Diagram (Projects by Type with Dependencies) 25

26 Spider Diagram (Projects by Project Lead) 26

27 Dashboard 27

28 Table View (Export to Excel) 28

29 Add a Project 29

30 Workflow Example 1 30

31 Statistical View (Project Type by Lifecycle Stage) 31

32 Statistical View (Project Lead by Status with Cost) 32

33 Statistical View (Project Lead by Status with Cost, No bubbles) 33

34 Project Gantt View in relation to Cost 34

35 Project Prioritisation 35

36 Projects Visualise (Cost) 36

37 Projects Visualise (Value) 37

38 Projects Visualise (5 Criteria) 38

39 Projects Visualise (Portfolio Analysis) 39

40 Projects Visualise (Balanced Scorecard) 40

41 Portfolio overview BUSINESS DOMAIN EXECUTION DOMAIN Enterprise Architecture & Frameworks Analysis & Design Product, Project & Portfolio Management Requirements Definition & Management Implementation Configuration & Change Management Measurement & Reporting Iteration Management Quality Management Production/ Operation ELM 41

42 Why Requirement Management is So Critical? 42

43 System Requirements - DOORS Statement of need Operational use validating the product Stakeholder Requirements Acceptance test satisfies verifying the system System test System Requirements satisfies qualifying the subsystems Subsystem test Subsystem Requirements satisfies qualifying components Component Requirements Component test 43

44 Example of Traceability Stakeholder requirements System requirements Satisfies Tests System tests Design standards Conforms to Satisfies Tests Tests Acceptance tests Design specifications Integration and Unit tests 44

45 ? Impact analysis f i at Stakeholder h W requirements System requirements Satisfies Satisfies System tests Design standards Conforms to Tests Tests Tests Acceptance tests Design specifications Integration and Unit tests 45

46 Impact coverage analysis Stakeholder requirements System requirements Satisfies Design specifications Design standards Conforms to Satisfies Tests Tests Tests o C % Acceptance tests System tests le p m te Integration and Unit tests 46?

47 Microsoft Word import Simply import into a DOORS document 47

48 Microsoft Word export Document Table Book 48

49 DOORS views See the explorer and document together Navigate quickly and efficiently 49

50 Unlimited user defined attributes Unlimited number of attributes in a spreadsheet-like view Values can be calculated for metrics collection Any value or attribute may be displayed in any column 50

51 Traceability: drag-and-drop linking Drag-and-drop to link within a document or from document to document 51

52 Traceability view 1. User Reqts (b) Design and Development Planning Each manufacturer shall establish and maintain plans that describe or reference the design and development activities and define responsibility for implementation. The plans shall identify and describe the interfaces with different groups or activities that provide, or result in, input to the design and development process. The plans shall be reviewed as design and development evolves. The plans shall be updated as design and development evolves. The plans shall be approved as design and development evolves (c) Design Input 2.1. Each manufacturer shall establish procedures to ensure that the design requirements relating to a device are appropriate and address the intended use of the device, including the needs of the user and patient Each manufacturer shall maintain procedures to ensure that the design requirements relating to a device are appropriate and address the intended use of the device, including the needs of the user and patient The procedures shall include a mechanism for addressing incomplete requirements The procedures shall include a mechanism for addressing ambiguous requirements The procedures shall include a mechanism for addressing conflicting requirements The design input requirements shall be documented by a designated individual(s) The design input requirements shall be reviewed by a designated individual(s) The design input requirements shall be approved by a designated individual(s) The approval, including the date and signature of the individual(s) approving the requirements, shall be documented Questions Summarize the manufacturer's written procedure(s) for identification and control of design input From what sources are design inputs sought? Do design input procedures cover the relevant aspects, such as: (Mark all that apply and list additional aspects.) intended use user/patient/clinical performance characteristics safety limits and tolerances risk analysis toxicity and biocompatibility electromagnetic compatibility (EMC) compatibility with accessories/auxiliary devices compatibility with the environment of intended use human factors physical/chemical characteristics labeling/packaging reliability statutory and regulatory requirements voluntary standards manufacturing processes sterility MDRs/complaints/failures and other historical data design history files (DHFs) For the specific design covered, how were the design input requirements identified? For the specific design covered, how were the design input requirements reviewed for adequacy? Design Technical Reqts (b) Design and Development Planning Comply with FDA Design Control Guidance GMP Regulation Comply with FDA Design Control Guidance GMP Regulation Each manufacturer shall establish and maintain plans that describe or reference the design and development 1.1. Identify impacted elements due to a change in another element activities and define responsibility for implementation. 1. Capture design and related information 1. Capture design and related information Traceability Reports: consistency with driving design elements 1.1. Input electronically formatted data 1.1. Input electronically formatted data Impact Reports: other design elements affected The plans shall identify and describe the interfaces with different groups or activities that provide, or result 1.2. Reference external information sources 1.2. Reference external information sources in, input to the design and development process. Links to impacted design elements 1.3. Reference external documentation 1.3. Reference external documentation Create backward traces to design elements within and across any organizational The plans shall be reviewed as design and development evolves. Store design and related information 2. Store design and related information procedure The plans shall be updated as design and development evolves Identify and tag design information as unique design elements 2.1. Identify and tag design information as unique design elements Traceability Reports: Procedure Attribute The plans shall be approved as design and development evolves Organize design elements 2.2. Organize design elements Create backward traces to design within across any Element project milestone Organize by Design Control Guidance Element elements Organize by Designand Control Guidance (c) Design Input Organize by inter-relationships Organize by inter-relationships Traceability Reports: Milestone Attribute 2.1. Each manufacturer shall establish procedures to ensure that the design requirements relating to a 2.3. Ensure all design elements are available Ensure all designwithin elements are available backward traces to2.3. design elements and across Design Control device are appropriate address the intended use of the device, including the1.1.3.create needs of the user Store design elements by Design Control Guidanceand Element Store design elements by Design Control Guidance Element Guidance Elements andhistorical patient. values Store design elements and their Store design elements and their historical values 2.2. Each manufacturer shall maintain procedures to ensure that the design requirements relating to a Traceability Reports: Linked design elements device are appropriate and address the intended use of the device, including the1.1.4.create needs of the user Manage all user needs 3. tomanage user needswithin and across any organizational forward impacts designallelements and patient Identify the source of the user need 3.1. Identify the source of the user need procedure 2.3. The procedures shall include a mechanism for addressing incomplete requirements Identify all user types (groups) 3.2. Identify all user types (groups) Attribute 2.4. The procedures shall include a mechanism for addressing ambiguous requirements. Impact Reports: Procedure 3.3. Identify the customer (s) 3.3. Identify the customer (s) Create forward impacts to3.4. design elements within and across any project milestone 3.4. Profile the expected patients2.5. The procedures shall include a mechanism for addressing conflicting requirements. Profile the expected patients The(family) design input requirements shall be documented by a designated individual(s) State the intended use of the 2.6. product 3.5. State the intended use of the product (family) Impact Reports: Milestone Attribute 2.7.forThe design input requirements shall be reviewed by a designated individual(s) Capture the acceptance criteria each user need 3.6. Capture the acceptance criteria for each user need 2.8. The design input requirements shall be approved by a designated individual(s) Create forward impacts to design elements within and across Design Control Guidance Elements 4. Manage design input requirements Manage design input requirements2.9. The approval, including the date and signature of the individual(s) approving the requirements, shall be documented. Impact Reports: Linked elements 4.1. Identify the source of the requirement 4.1.design Identify the source of the requirement Questions Identify the associated user need 4.2. Identify the associated user need 1.2. Associate changed design elements with related elements Summarize the manufacturer's written procedure(s) for identification and control of 4.3. Capture requirement description and attributes requirement and attributes Link Change Design Object4.3. withcapture affected designdescription element(s) design input Capture acceptance criteria 4.4. Capture acceptance criteria From what sources are design inputs sought? Traceability Links and Reports design element(s) 4.5. Assign responsibility for each requirement 4.5. from Assignaffected responsibility for each requirement apply and 4.6. Manage incomplete requirements Do design input procedures cover the relevant aspects, such as: (Mark all 4.6. Manage requirements thatimpact Links and Reports from affectedincomplete design element(s) list additional aspects.) 4.7. Manage ambiguous requirements 4.7. Manage ambiguous requirements Associate design element changes with decisions, rationale, and approval authority intended use 4.8. Manage conflicting requirements 4.8. Manage conflicting requirements information user/patient/clinical 4.9. Approve all requirements 4.9. Approve all requirements performance characteristics Change Decision Objects with following Attributes: safety Manage acceptance 5. Manage acceptance Disposition Attribute limits and tolerances 5.1. Ensure the acceptance of every user need 5.1. Ensure the acceptance of every user need Decision Attribute risk analysis 5.2. Ensure the acceptance of every design input requirement 5.2. Ensure the acceptance of every design input requirement Rationale Attribute 5.3. Document the results of every user need acceptancetoxicity test and biocompatibility 5.3. Document the results of every user need acceptance test electromagnetic compatibility (EMC) 5.4. Document the results of every design input requirements test 5.4. Document the results of every design input requirements test Owner Attribute compatibility with accessories/auxiliary devices 5.5. Make acceptance results available Make acceptance results available Management Approval Attribute compatibility with the environment of intended use human factors Provide associations within and change across any organizational procedure Manage change 6. Manage physical/chemical characteristics 6.1. Maintain history of design element changes 6.1. Maintain history of design element changes Change Design Object Traceability Link on Procedure Attribute labeling/packaging Make complete change history available Make complete change history available Change Design Object Impacts Link on Procedure Attribute reliability procedure Maintain history within and across any organizational Maintain history within and across any organizational procedure statutory and regulatory requirements Provide associations within and anyhistory project milestone Maintain history within and across any project milestone across Maintain within and across any project milestone voluntary Maintain history within and across any Design Control standards Guidance Elements Change Design Object Traceability Maintain Linkhistory on Milestone within andattribute across any Design Control Guidance Elements manufacturing processes 6.2. Capture frequency and nature of element changes 6.2. Capture frequency and nature of element changes Change Design Object Impacts Link on Milestone Attribute Provide rationale for change sterility Provide rationale for change Provide associations within and Design Control MDRs/complaints/failures and other historical data Describe decisions made across Describe decisions made Guidance Elements Change Design Object Traceability Link to traced design elements Identify approval authority for the change design history files (DHFs) Identify approval authority for the change of approving For the specific design covered, how were the design input requirements identified? Capture date, time, and signature authority Link Capture date, time,design and signature of approving authority Change Design Object Impacts to linked elements Forinthe specific design covered, how were the design input requirements reviewed for 6.3. Identify impacted elements due to a change another element 6.3. Identify impacted elements due to a change in another element 1.3. Mange the change process adequacy? Create backward traces to design elements within and across any organizational procedure Create backward traces to design elements within and across any organizational procedure Create backward traces to design elements within and across any project milestone Design Change Module Design Change Reports Object History Object History Reports Versions Create backward traces to design elements within and across any project milestone Test Cases 1.1. Identify impacted elements due to a change in another element Traceability Reports: consistency with driving design elements Impact Reports: other design elements affected Links to impacted design elements Create backward traces to design elements within and across any organizational procedure Traceability Reports: Procedure Attribute Create backward traces to design elements within and across any project milestone Traceability Reports: Milestone Attribute Create backward traces to design elements within and across Design Control Guidance Elements Traceability Reports: Linked design elements Create forward impacts to design elements within and across any organizational procedure Impact Reports: Procedure Attribute Create forward impacts to design elements within and across any project milestone Impact Reports: Milestone Attribute Create forward impacts to design elements within and across Design Control Guidance Elements Impact Reports: Linked design elements 1.2. Associate changed design elements with related elements Link Change Design Object with affected design element(s) Traceability Links and Reports from affected design element(s) Impact Links and Reports from affected design element(s) Associate design element changes with decisions, rationale, and approval authority information Change Decision Objects with following Attributes: Disposition Attribute Decision Attribute Rationale Attribute Owner Attribute Management Approval Attribute Provide associations within and across any organizational procedure Change Design Object Traceability Link on Procedure Attribute Change Design Object Impacts Link on Procedure Attribute Provide associations within and across any project milestone Change Design Object Traceability Link on Milestone Attribute Change Design Object Impacts Link on Milestone Attribute Provide associations within and across Design Control Guidance Elements Change Design Object Traceability Link to traced design elements Change Design Object Impacts Link to linked design elements 1.3. Mange the change process Design Change Module Design Change Reports Object History Object History Reports Versions End-to-end visual validation in a single view 52

53 Traceability Verification or Completeness Increases customer confidence Detect missing links Creation and deletion of links is recorded in history Traceability through an Orphan report shows missing links 53

54 Vendor Comparisons Prioritize Requirements Easily Compare Responses 54

55 Can I see all my requirements in one view? Operational Reqs System Specs 55

56 What are Suspect Links? If documents are linked a change by this user here shows up as a warning flag to this user here. 56

57 Show Compliance and help achieve successful audit Process Steps Requirements IAEA Standards 57

58 Portfolio overview BUSINESS DOMAIN EXECUTION DOMAIN Enterprise Architecture & Frameworks Analysis & Design Product, Project & Portfolio Management Requirements Definition & Management Implementation Configuration & Change Management Measurement & Reporting Iteration Management Quality Management Production/ Operation ELM 58

59 Communication links between enterprise applications 59

60 Enterprise Application Bus model for inter-application communication 60

61 Service Orchestration 61

62 Behavior as State Machine 62

63 Simulate System - requirements 63

64 Portfolio overview BUSINESS DOMAIN EXECUTION DOMAIN Enterprise Architecture & Frameworks Analysis & Design Product, Project & Portfolio Management Requirements Definition & Management Implementation Configuration & Change Management Measurement & Reporting Iteration Management Quality Management Production/ Operation ELM 64

65 Monitor your KPI with IBM Dashboard Accurately monitor the right indicators to actively manage operational performance for optimal strategic results. Align performance with strategic priorities Measure and track key performance indicators Enable accountability and informed decision-making Correct problems before they become critical 65

66 Planning to Executiong BUSINESS DOMAIN EXECUTION DOMAIN Enterprise Architecture & Frameworks Analysis & Design Product, Project & Portfolio Management Requirements Definition & Management Implementation Configuration & Change Management Measurement & Reporting Iteration Management Quality Management Production/ Operation ELM 66

67 67

Why do Project Fail? 42% 37% 27% 26% 24% 24% 0% 10% 20% 30% 40% 50% IBM Software Group Rational software. Source: AberdeenGroup, August 2006

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