Lean Integration. into Business Value. John Schmidt VP, Global Integration Services Informatica

Transcription

1 Lean Integration Translating an Innovative Agile Approach into Business Value John Schmidt VP, Global Integration Services Informatica 1

2 Discussion topics The Big Idea, and Why Lean The 7 Principles of Lean Integration Next Steps 2

3 Driven Enterprise: Using data for competitive advantage Cloud Computing Traditional Enterprise Partner Trading Network (B2B) SEPA NACHA HIPAA 3

4 Problem: chaos results from unnecessary complexity Root Cause - Integrations manufactured as custom point solutions 4

5 Craftsman Approach Custom Development Manufacturing World Skilled manual workers Manufacture by hand Custom products (works of art) Integration World Skilled IT Specialists Hand coding Custom integration points 5

6 Assembly Line Approach Benefits Consistent Quality Lower Cost Manufacturing World Dedicated skilled labor Standard Tools Mass production Integration World Dedicated skilled labor Standard Tools Periodic Large Releases 6

7 Modern Factory Approach Automated flow of materials and information Benefits Low cost AND high quality Exactly the way you want it Manufacturing World Integration ti World Automation Template-driven self-service solutions JIT Workflow Agile/iterative Development Mass-Customization Configurable re-useable objects 7

8 It is critical that you have an expert and sustainable integration ti capability Low Operational Efficiency High Integration Technology Hand coding Integration Tools Integration Platform Integration Factory Platform Projects Program Competenc Lean & Ad hoc Managemen Practices ycenter integration t Integration Management Fast Improved Cost Benefits (quick & dirty) Quality Efficiency Business Faster, Better AND Cheaper 1990 s 2000 s 2010 s Point-in-time Methods Sustaining Methods 8

9 Discussion topics The Big Idea, and Why Lean The 7 Principles of Lean Integration Next Steps 9

10 Lean Integration Principles 1. Eliminate waste 2. Automate processes 3. Empower the team 4. Continuously improve 5. Build quality in 6. Plan for change Lean is NOT about being skinny / eliminating staff 7. Optimize the whole It is about continuously adding value by focusing on what really matters! 10

11 Eliminate Waste Example: Simple Change Request to Warehouse Value-Add 5 min 5 min 2 hours 1 hour 1 hour 50 min Value-Add Non 5 min 5 min 2 hours 1 hour 1h hour 50 min Value-Add 4 hours 8 hours 0 weeks 4 hours 16 hours Non Value-Add 1 week 2 weeks 2 weeks 1 week 2 weeks Lead Time Reduced from 2 months to <1.5 days Original Lead Time Current Lead Time Lead Time Reduction = = = 97% Original Lead Time

12 Eliminate Waste Keeping data in production that no-one uses is waste Archiving reduces datafile size (GB) Without archiving With archiving and truncating temp tables 1,400 1,200 1, Current Year 1 Year 2 Year 3 that is not used still costs a lot: Disk capacity (production, test, DW) Backup costs (tapes, labor, storage) Business slow-down by end-of-period jobs Application upgrade costs Impact on real-time transactions Compliance costs quality analysis and resolution time Projected savings by eliminating data waste $12,907,437 $6,378,391 $4,925,769 $1,603,277 Year 1 Year 2* Year 3 3-year 3year Total 12

13 Empower the Team Problem: IT is the bottleneck for data requests Solution: Give the business self-service capabilities Business Self-Service Enables business selfservice, improving business agility Support IT personnel IT maintains governance and oversight Business self-service improves business agility AND gives IT better governance 13

14 Build Quality In Problem: Quality issues accumulate without business involvement Solution: Involve business in fixing highest priority issues Line of business manager Steward Quality IT Developer Business improves revenues and decisions working from more accurate data. IT improves project efficiencies. 14

15 Optimize the Whole Establish an Enterprise-Wide Factory Platform Test Master Complex Warehouse Migration Management Management Synchronization Event Consolidation & Archiving Processing B2B Exchange Ultra Messaging Integration Factory Platform Comprehensive, Unified, Open and Economical SWIFT NACHA HIPAA Cloud Computing Application base Unstructured Partner 15

16 Discussion topics The Big Idea, and Why Lean The 7 Principles of Lean Integration Next Steps 16

17 Getting Started Two basic approaches Top Down or Bottom Up Top Down you need: Top-level support from a champion as big as the opportunity Business case to establish cross-functional support An implementation plan with measurable goals Bottom Up you need: An IT leader who gets it and serves as a change agent A future state vision and a way to evolve towards it An open technology platform you don t need to automate everything at once, but you need a platform that can grow Select a project or a process and get started Don t boil the ocean 17

18 The Informatica Platform Proven Value Proposition: Standardize, Re-use, Scale Improve Improve Modernize Efficiency Decisions Business & Reduce Costs Mergers & Acquisitions i i Acquire & Retain Customers Outsource Non-core Functions Governance Risk Compliance Increase Partner Network Efficiency Warehouse Integration Competency Center Crosslanguage Identity Resolution Consolidation Master Management Cloud Integration Quality and Governance B2B Exchange Accelerate drug discovery with the Research Information Factory ; Global Information Factory delivers consolidated d view of business Reduce expenses by $5 million and expedite results by 12 months with Integration Competency Center Saved 100,000+ man hours related to data issues; Finely tuned matching for 42 countries including China, Japan, Korea, Indonesia Large global bank reduced IT costs by 50% and help realize merger synergy of $1.4 billion Gartner MDM Award winner for end-to-end customer experience MDM program including product supply, contract t mgmt, order & revenue management Japan Post reduced cost of migrating data from legacy apps to support over 160,000 business customers on salesforce.com platform Improve planning and forecasting; Ensure regulatory compliance; Measure Monitor and Improve the Quality of Master Realize a $15 million opportunity and deliver 100% ROI in the first year by automating ACORD data conversion Informatica Internal Confidential 18

19 Lean Case Study Integration Services group formed in 2004 Generated savings of $9.1M in the first 18 months Early success as cross-organizational Procure-to-Pay process The Group now maintains over 4,000 interfaces Used by over 500 projects to-date and is part of the corporate standard SDLC methodology which defines SOX, GxP, Security and Integration tracks Cloud Services Platform Services Infrastructure Services Real-Time Alert Manager RulePoint RuleCast Transformation Exchange Ultra Messaging PowerCenter Power Exchange Metadata Manager Services Archive Subset Privacy Quality Profiling Identity Resolution Business Director Hierarchy Manager Master Reference Manager These product highlights are for illustration purposes only 19

20 Helpful Resources: Best practice references ICC & Lean Books available at Lean Integration website Whitepapers, Blog, and More at 20

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