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Enterprise Architecture at Eaton: Targeting Growth, Value and Innovation. NOREX Select Workshop 15 June 2011. I D E A S. Premier Diversified Industrial. Integrated Operating Company. Founded by J.O. Eaton World Headquarters in Cleveland, Ohio USA - PowerPoint PPT Presentation
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2011 Eaton Corporation. All rights reserved.
Enterprise Architecture at Eaton:Targeting Growth, Value and Innovation
NOREX Select Workshop15 June 2011
2011 Eaton Corporation. All rights reserved. 2
IDEAS
2011 Eaton Corporation. All rights reserved. 3
Using EA to drive
Value
Growth
Innovation
2011 Eaton Corporation. All rights reserved. 4
2011 Eaton Corporation. All rights reserved. 5
Premier Diversified Industrial
2011 Eaton Corporation. All rights reserved. 6
Integrated Operating Company
2011 Eaton Corporation. All rights reserved. 7
2011 Eaton Corporation. All rights reserved. 8
• Founded by J.O. Eaton• World Headquarters in Cleveland, Ohio USA• Regional Headquarters in Shanghai, China; Morges,
Switzerland; Sao Paulo, Brazil• Innovation Centers in the USA, China and India• Customers in more than 150 countries• 2010 sales of $13.7 billion, 55% of sales outside the U.S.• Approx. 70,000 employees• Chairman & CEO –Alexander M. Cutler
2011 Eaton Corporation. All rights reserved. 9
We provide reliable, efficient and safe power management for…
Cities & Buildings
TransportationIndustrial & Machinery
Information Technology
Energy & UtilitiesInfrastructure
2011 Eaton Corporation. All rights reserved. 10
EBSThe Eaton Business System (EBS) is the embodiment of our Integrated Operating Company philosophy.
Rapid deployment of best practices
Standardizedprocesses
Eaton UniversityContinuous assessment
Growth & Operating Excellence
2011 Eaton Corporation. All rights reserved. 11
EnterpriseArchitectureProgram
2011 Eaton Corporation. All rights reserved. 12
Formed 2004
2011 Eaton Corporation. All rights reserved. 13
Reports to the CIO
2011 Eaton Corporation. All rights reserved. 14
12 FTEs
2011 Eaton Corporation. All rights reserved. 15
- Primary customer -IT practitioners across Eaton
2011 Eaton Corporation. All rights reserved. 16
PhilosophyResults-focused
Growth & value orientedIterative in approach
Pragmatic (speed v. perfection)“Non-denominational”
Communicative
2011 Eaton Corporation. All rights reserved. 17
Architecture & Planning
SolutionsDiscipline
TechnologyDiscipline
InformationDiscipline
PlanningGovernance
Communication
2011 Eaton Corporation. All rights reserved. 18
Principles
Guidance
Standards &Policies
Ref. ArchitecturesRoadmaps
Patterns
Bricks
HOW WHAT
EnterpriseArchitecturePublicationsProducts
2011 Eaton Corporation. All rights reserved. 19
EnterpriseArchitectureProcesses
Architecture Definition
Architecture Consulting
Architecture Governance
TechnologySurveillance
IndustryResearch
StrategicPlanning
Services
2011 Eaton Corporation. All rights reserved. 20
EnterpriseArchitectureProcesses
Architecture Definition
Architecture Consulting
Architecture Governance
TechnologySurveillance
IndustryResearch
StrategicPlanning
Services
2011 Eaton Corporation. All rights reserved. 21
Jim Crawford
IT Strategic Planning
Brian Schultz
Architecture Governance
Some other guy
Technology Surveillance
2011 Eaton Corporation. All rights reserved.
Our approach to IT Strategic Planning
Jim Crawford
NOREX Select Workshop15 June 2011
2011 Eaton Corporation. All rights reserved. 23
Biography
Jim CrawfordSr. Principal, Enterprise Architecture and Planning
• Enterprise IT Strategic Planning• Architecture Governance Processes
With Eaton since 1997Background in data center, network and help desk operations, security, messaging and client technologies.
In architecture role since 2005.
Previously held positions at Aeroquip Vickers, AlliedSignal (Honeywell), System Source.
2011 Eaton Corporation. All rights reserved. 24
Eaton Business System
• A methodology and culture of quality and continuous improvement.
• Deployment of common tools and processes, focusing on consistency and repeatability.
• Each function is challenged with understanding, documenting and improving processes.
• Process are integrated and this integration is how we do business every day.
2011 Eaton Corporation. All rights reserved. 25
Strategic Planning
• One of Eaton’s and IT’s Key processes.• The Strategic Planning process is an
enterprise-wide effort to produce fundamental decisions and actions that will shape and guide Eaton's future direction.
2011 Eaton Corporation. All rights reserved. 26
IT Strategic Planning Process
Development Deployment
2011 Eaton Corporation. All rights reserved. 27
Alignment and Progress Reviews• Employee
• Mid-year review cycle• End of year progress• Annual goal setting
• Quarterly - Strategic initiatives against the plan targets and goals.
• Monthly - IT operational review and Global IT Council meetings with strategic measures tracked on a balanced scorecard.• Operational contribution• Cost out• Process efficiency• Deployment penetration of key systems
• We are continuously working to achieve our Plan goals
2011 Eaton Corporation. All rights reserved. 28
Structure of the plan
Strategic Intent• The elevator speech
about our strategy.
• A related group of business challenges faced by Eaton over the next 3-5 years.
Strategic Objectives
• Goals or capabilities that IT must focus on over a 3-5 year period in order to meet these challenges.
Initiatives• Actions that IT will take
in the next 1-3 years to help accomplish the objectives.
DefinitionElement
2011 Eaton Corporation. All rights reserved. 29
Year-to-year
• Repeatable process• Corporate guidance is provided if certain focus
areas are targeted• In IT, we refresh the plan annually to keep our
focus clear and up-to-date for the organization
2011 Eaton Corporation. All rights reserved. 30
Strategic Plan Versions
Multiple versions are created, targeting specific stakeholders and audiences:
• Full Enterprise IT Strategic Plan• Elevator speech version – strategic intent in 30 sec.• Executive version – strategic intent and major initiatives• Graphical version – explains the “whats” and “whys”
with fewer words and more pictures• IT-specific version – provides additional details and
deeper dive into the technology “hows”
2011 Eaton Corporation. All rights reserved. 31
Continuous improvement (examples)
• 2004: Purely an IT cost-cutting focus• 2005: “A strategy is the sum of 1000 initiatives”• 2006: Better integrated with company goals• 2007: Added challenge areas; e.g. emerging
markets growth• 2008: Cross-group planning coordination/review• 2009: Adopted new plan structure• 2010: Single global plan; “enduring” measures
2011 Eaton Corporation. All rights reserved. 32
Evolution 2011
We have evolved to a true “Enterprise IT Strategic Plan” with a cross-sector Steering Committee and cross-sector strategy focus teams providing specific sections of the IT Strategy
2011 Eaton Corporation. All rights reserved. 33
Eaton Business System and Strategic Planning
• As a repeatable key process, IT Strategic Planning is one of our most mature processes
• Strategic planning provides the foundation for IT goal setting, portfolio prioritization and investment
• Our strategy drives organizational actions throughout the year. It is not put on the shelf to collect dust.
2011 Eaton Corporation. All rights reserved.
Our approach to Architecture Governance
Brian Schultz
NOREX Select Workshop15 June 2011
GovernanceMaking sure the pieces fit
2011 Eaton Corporation. All rights reserved. 35
Biography
Brian Schultz is an Enterprise Architect in the EatonCorporate IT Enterprise Architecture Group. He isa member of the Solutions Architecture team within thatgroup. He has worked for Eaton since 1998. Prior to that, Brian held positions with IBM, Westinghouse, and DuPont..
Brian has been awarded 5 US Patents for inventions in the Information Technology disciplines of Artificial Intelligenceand Business Analytics.
2011 Eaton Corporation. All rights reserved. 3636
Our products – a quick revisit
Principles
Guidance
Standards &Policies
Ref. ArchitecturesRoadmaps
Patterns
Bricks
HOW WHAT
EnterpriseArchitecture
Products
2011 Eaton Corporation. All rights reserved. 37
Processes (Services)
IndustryResearch
TechnologySurveillance
StrategicPlanning
ArchitectureConsulting
ArchitectureGovernance
ArchitectureDefinition
Develops and articulates business challenges and IT strategic objectives; informs IT investments & architecture iteration
Senses and incubates emerging technologies that have strong potential business value to Eaton
Investigates and informs about trends in the IT industry; observes vendor strategies; provides product & process insights to project initiatives
Defines and documents the desired-state architecture; happens iteratively over time
Provides a process for reviewing compliance with architectural standards and obtaining variances where appropriate
Provides architectural guidance to projects and initiatives, yielding faster delivery and higher quality
Let’s talk about these in the context of projects
2011 Eaton Corporation. All rights reserved. 38
Project Concept; Risk Assessment
Architecture Consulting
Architecture Processes in the Project Life Cycle
Architecture Assessment
Architecture Review & Exception Handling (if any)
Architecture Compliance Validation
Preliminary Architecture Assessment
Exception Handling (if any) during Phases 2 - 3
2011 Eaton Corporation. All rights reserved. 39
Project Concept; Risk Assessment
Architecture Consulting
Architecture Processes in the Project Life Cycle
Architecture Assessment
Architecture Review & Exception Handling (if any)
Architecture Compliance Validation
Preliminary Architecture Assessment
Exception Handling (if any) during Phases 2 - 3
Three Types of Architecture Activity1.Architecture Consulting2.Architecture Review3.Architecture Assurance
2011 Eaton Corporation. All rights reserved. 40
Architecture Impact Assessment Rating DrivesConsulting, Review and Assurance
requiredH
optional
Architecture Consulting
A. alignment with IT principles
conceptual architecture design
technology / service/ vendor selection
patterning
detailed architecture design
Leve
ls of
Inte
nsity
ML
D.
C.
B.
MIN
MAX
1 2 3
2
• compliance with published standards using self-help
artifacts• all waivers requested &
approved via exceptionrequest(pre-gate 3)(pre-gate 4)
Architecture Review(pre-gate 2)
with EA team
none req’d
with ARB
Architecture AssessmentWorksheet Rating
Projector
Initiative
1
3 Architecture Assurancere
quire
d
revi
ew a
nd v
alid
ate
cons
ult /
gui
de
cons
truc
t / d
evel
op
Project Sponsor / Project Manager Perspective
2011 Eaton Corporation. All rights reserved. 41
Architecture Impact Assessment Rating DrivesConsulting, Review and Assurance
requiredH
optional
Architecture Consulting
A. alignment with IT principles
conceptual architecture design
technology / service/ vendor selection
patterning
detailed architecture design
Leve
ls of
Inte
nsity
ML
D.
C.
B.
MIN
MAX
1 2 3
2
• compliance with published standards using self-help
artifacts• all waivers requested &
approved via exceptionrequest(pre-gate 3)(pre-gate 4)
Architecture Review(pre-gate 2)
with EA team
none req’d
with ARB
Architecture AssessmentWorksheet Rating
Projector
Initiative
1
3 Architecture Assurancere
quire
d
revi
ew a
nd v
alid
ate
cons
ult /
gui
de
cons
truc
t / d
evel
op
Project Sponsor / Project Manager Perspective
2011 Eaton Corporation. All rights reserved. 42
Guiding Principles
• The Guiding Principles provide overarching guidance for all Information Technology activities
• They act as a framework for all otherEnterprise Architecture processes
2011 Eaton Corporation. All rights reserved. 43
Architecture Bricks:Tactical and Strategic Planning Horizons
BaselineEnvironment
TacticalDeployment
StrategicDirection
RetirementTargets
Mainstream Standards
EmergingTechnologies
Containment Targets
Brick-Specific Implications and Dependencies
Current 0-2 Years 2-5 Years
Exit fromEnvironment
Introduction To Environment
Top Row: Baseline = what’s already here; Tactical = what to buy now; Strategic = what’s coming after that
Center Rows: Current point in life cycle for each product / version: Retire, Contain, Mainstream, Emerging
Bottom Area: Implications and dependencies to be aware of regarding this technology “brick”.
2011 Eaton Corporation. All rights reserved. 44
Patterns
• Patterns provide guidance for how to combine and arrange technology components to provide larger, reusable system framework elements that meet project needs
• Pattern Definitions include:• Abstract• Description• Use Case• Architecture• Component List• Guidelines for Usage
2011 Eaton Corporation. All rights reserved. 45
Pattern Elements
cmp Architecture
Servlet Applications
«Brick Product»Web Serv ers:
Apache Apache 2.2
«Brick Product»Enterprise
Database: Oracle 11gR1 Enterprise
Edition
«Brick Product»Application
Serv ers: BEA Weblogic 10
«Brick Product»Application
Serv ers: JBoss 4
You may choose either of these application server vendors when the application requires a full J2EE container
User
J2EE Applicaitons
«Brick Product»Web Serv ers:
Jakarta Tomcat 5.5
Use this branch for those applications which require onlyServlet or JSP containers
Pattern Components
Legend
«Pattern»Enterprise Linux Serv er
2011 Eaton Corporation. All rights reserved. 46
Architecture Impact Assessment Rating DrivesConsulting, Review and Assurance
requiredH
optional
Architecture Consulting
A. alignment with IT principles
conceptual architecture design
technology / service/ vendor selection
patterning
detailed architecture design
Leve
ls of
Inte
nsity
ML
D.
C.
B.
MIN
MAX
1 2 3
2
• compliance with published standards using self-help
artifacts• all waivers requested &
approved via exceptionrequest(pre-gate 3)(pre-gate 4)
Architecture Review(pre-gate 2)
with EA team
none req’d
with ARB
Architecture AssessmentWorksheet Rating
Projector
Initiative
1
3 Architecture Assurancere
quire
d
revi
ew a
nd v
alid
ate
cons
ult /
gui
de
cons
truc
t / d
evel
op
Project Sponsor / Project Manager Perspective
2011 Eaton Corporation. All rights reserved. 47
Architecture Review Process
• Intent: Ensure that projects with significant architecture impact are reviewed early in the project life cycle to drive for increased compliance with standards
• Focus on evaluation of those project aspects that are considering:• Architectural risk elements of the project
• evaluation of project’s architecture and it’s consistency with strategic program roadmaps
• New or non-compliant architectural bricks and patterns
• Two levels of review• Architecture Review Board for High Architecture Impact• Enterprise Architecture Core Team Review for Medium
Architecture Impact
2011 Eaton Corporation. All rights reserved. 48
Architecture Impact Assessment Rating DrivesConsulting, Review and Assurance
requiredH
optional
Architecture Consulting
A. alignment with IT principles
conceptual architecture design
technology / service/ vendor selection
patterning
detailed architecture design
Leve
ls of
Inte
nsity
ML
D.
C.
B.
MIN
MAX
1 2 3
2
• compliance with published standards using self-help
artifacts• all waivers requested &
approved via exceptionrequest(pre-gate 3)(pre-gate 4)
Architecture Review(pre-gate 2)
with EA team
none req’d
with ARB
Architecture AssessmentWorksheet Rating
Projector
Initiative
1
3 Architecture Assurancere
quire
d
revi
ew a
nd v
alid
ate
cons
ult /
gui
de
cons
truc
t / d
evel
op
Project Sponsor / Project Manager Perspective
2011 Eaton Corporation. All rights reserved.
Our approach to Technology Surveillance
Dick Kerr
NOREX Select Workshop15 June 2011
One of the ways IT helps driveOne of the ways IT helps drive
2011 Eaton Corporation. All rights reserved. 50
G. Dick KerrVice PresidentEnterprise Architecture
Eaton CorporationLearning and Technology Center32500 Chardon RoadWilloughby Hills, OH 44094 USA
Architecture & Planning Business Intelligence Platforms Framework Services
2011 Eaton Corporation. All rights reserved. 51
Innovation…Let’s try to define it
2011 Eaton Corporation. All rights reserved. 52
Fact or fiction?
Innovation just happens.
Innovation only happens in R&D.
The best innovation comes from inside.
The more innovative ideas we generate, the better.
We have lots of smart people, so innovating will be no problem.
2011 Eaton Corporation. All rights reserved. 53
Which would you pick? And why?
Stick GPS
2011 Eaton Corporation. All rights reserved. 54
Does this count as innovation?
Why is the iPhone so successful?
Operating system?Touch screen?Wi-Fi?.Cellular data?Browser?E-mail and calendar?
2011 Eaton Corporation. All rights reserved. 55
The Innovation Burger
The best innovation opportunities exist at the intersection of business
opportunity and technology capability
2011 Eaton Corporation. All rights reserved. 56
The Technology Surveillance and
Incubation program
2011 Eaton Corporation. All rights reserved. 57
Objectives / Desired Outcomes
Drive technology-centric innovation
Reduce “late to the party” syndrome
Make the best investments (value, fit, maturity)
Help market IT’s innovation posture
2011 Eaton Corporation. All rights reserved. 58
Program Focus
IS IS NOTIncreasing our technology speed-to-market
Accelerating innovation value by being proactive instead of reactive
Improving the success rate of new technology introductions
Doing new to the world research & development
Implementing every new technology we find
Becoming a bleeding-edge adopter
2011 Eaton Corporation. All rights reserved. 59
Best Practices
Surveillance + Incubation
The ongoing systematic collection and analysis of data that can lead to action.
Maintaining something at the most favorable temperature for its development.
2011 Eaton Corporation. All rights reserved. 60
5-Stage Process,Aligned with Eaton’s Innovation Framework
DeploymentOpportunity Filtering
External Surveillance
Readiness Assessment
Value Assessment
Likely to be advantageous or disruptive?
Mature enough? Fits
with IT architecture?
Meets value and deployment
hurdles?
2011 Eaton Corporation. All rights reserved. 61
Opportunity Filters
Technology MomentumApplicability to Eaton
2011 Eaton Corporation. All rights reserved. 62
Readiness and Applicability Filters
Breakthrough Business Performance• Will this technology facilitate a breakthrough
business performance improvement?Competitive Differentiation
• Will this technology offer a competitive advantage?
Sustainability• Will this technology differentiate us in the long
term?Gap Closure
• Will this technology close a gap in current performance or needs?
Breadth of Applicability• Will this technology support multiple business
units, functions, and or geographies?
2011 Eaton Corporation. All rights reserved. 63
Q & A
2011 Eaton Corporation. All rights reserved. 64
Enterprise Architecture Workshop
NOREX SELECT
June 14-15, 2011
NOREX Select
NOREX Select is comprised of information technology teams from the largest companies in North America.
Our members exchange expertise with companies of similar size and scope to improve IT functionality and ROI through workshops, WebForums, and pre-arranged project networking opportunities.
We appreciate your participation in our Enterprise Architecture Workshop!
NOREX Select
Workshop DetailsAgenda
Attendee introductions and company overviews
Interactive discussion of submitted topics
Role of moderator
Member presentation
Breaks and meals
Attendee introductions & overviews Name & Title:
Company:
Industry:
IT Employees:
Enterprise Architecture approach:
Key Concern/Challenge:
NOREX Select
Elements of a Successful Enterprise Architecture
NOREX Select
Topic 1
Definitions of key terms used in EA (Target Architecture, Reference Architecture, Standards):
How are these defined? Do we have an agreed set of terms and definitions so we can have meaningful discussions?
Chuck LysakowskiAir Products and Chemicals, Inc.
NOREX Select
Topic 2
Business Architecture:
What does it mean to you?
Herb BergerCardinal Health
NOREX Select
Topic 3
EA principles
Pukhraj KachhwahaEli Lilly & Co.
NOREX Select
Topic 4
EA’s role in innovation and emerging technology
Herb BergerCardinal Health
NOREX Select
Topic 5
How have EA groups increased their scope beyond the traditional IT back office to include the architecture in your company’s products, i.e., embedded systems in tractors, autos, office machines, etc.
Alan TillmanDeere & Co.
NOREX Select
Topic 6
How do you prove the value of EA and demonstrate it to management?
Walter LimbachUSS
NOREX Select
Topic 7
SOA and other enterprise capabilities
Pukhraj KachhwahaEli Lilly & Co.
NOREX Select
Topic 8
IT Data Model:
Foundation of running the business of IT
Pukhraj KachhwahaEli Lilly & Co.
NOREX Select
Topic 9
Application Portfolio Management/EA Governing Bodies:
What EA governing bodies do members have and what do they do?
Herb BergerCardinal Health
NOREX Select
Enterprise Architecture Workshop
NOREX SELECT
June 14-15, 2011
Member Presentation
EA at Eaton Corporation:
Building Blocks for Future Growth and Value
NOREX Select
Developing an EA Program
NOREX Select
Topic 1
EA Frameworks: Specifically, use of TOGAF or key components of custom frameworks.
Herb BerberCardinal Health
NOREX Select
• The Open Group Architectural Framework (TOGAF)—Although called a framework, it is more accurately defined as a process
• The Zachman Framework for Enterprise Architectures—Although self-described as a framework, it is more accurately defined as a taxonomy
• The Federal Enterprise Architecture—Can be viewed as either an implemented enterprise architecture or a proscriptive methodology for creating an enterprise architecture
• The Gartner Methodology—Can be best described as an enterprise architectural practice
Topic 2
EA Taxonomies: What taxonomies are members using and what are you using them for?
Herb BergerCardinal Health
NOREX Select
Topic 3
How are members managing architectural standards?
Chuck LysakowskiAir Products and Chemicals, Inc.
NOREX Select
Topic 4
Architecture assessment process and repository
Pukhraj KachhwahaEli Lilly & Co.
NOREX Select
Topic 5
Architect’s Role:
What do your architects do? Do they do strategies, reference architectures, standards management, governance, etc.? Do they work on solution engineering? What titles do you have in place? What is the breakdown of an architect’s time between strategic vs. tactical?
Herb BerberCardinal Health
NOREX Select
Topic 6
How do you use your as-is and to-be architectures to create roadmaps and how are those then integrated with project portfolios?
George WitmerAir Products and Chemicals, Inc.
NOREX Select
Topic 7
How to get buy-in from tech leads
Walter LimbachUSS
NOREX Select
Topic 8
How do you develop internal talent pools of people who become the next enterprise architects?
Ray TrotterDeere & Co.
NOREX Select
Topic 9
EA Tools:
What tools are members using? How are you using them? What value are you getting from them?
Chuck LysakowskiAir Products and Chemicals, Inc.
NOREX Select
Additional topic
How would a small/lean IT organization dip their toes into the EA waters?
Sean KubovcikTravel Centers
NOREX Select
Enterprise Architecture Workshop
NOREX SELECT
June 14-15, 2011
Topic 13
Cloud Computing:
What strategies are in place for cloud?
Herb BergerCardinal Health
NOREX Select
Additional Topic
Definition and approach to “reference architecture
Dave DezelanEli Lilly
NOREX Select
Additional topic
Target architectures: What artifacts are used to paint the picture of your direction in a specific functional area?
NOREX Select
Chris Barendt
Progressive Insurance
Additional Topic
Mobile architecture
Chuck LysakowskiAir Products and Chemicals, Inc.
NOREX Select
Additional topic
How many groups have remote architects?
What collaboration tools are used?
Chris Barendt
Progressive InsuranceNOREX Select
Additional topic
Tools to manage technical roadmaps
Do you include Guidance and Patterns?
NOREX Select
Chris Barendt
Progressive Insurance
Additional topic
Tools used to capture business capabilities and business process
Mapping to supporting applications?
NOREX Select
Chris Barendt
Progressive Insurance
Additional topic
How do handle the removal of old technology?
NOREX Select
Chris Barendt
Progressive Insurance
Additional topic
Developing technology roadmaps
NOREX Select
Measuring the Value of Enterprise Architecture
NOREX Select
Topic 1
Evaluating projects against EA guidelines: At what stages of the project are these reviews done? Do all projects go through the same process?
Chuck LysakowskiAir Products and Chemicals, Inc.
NOREX Select
Topic 2
What communication channels do you use to communicate EA strategies and directions to other parts of the company (both IT and non-IT functions)?
Alan TillmanDeere & Co.
NOREX Select
Topic 3
EA Metrics:
What metrics do you track or are thinking of tracking for EA?
Alan Tillman, Deere & CoHerb Berber, Cardinal Health
NOREX Select
Topic 4
What tools are being used to document your enterprise architecture technologies, applications and data (the scope is at the macros level, so say for 500 applications in a company)? This is not a question about individual delivery projects or detailed documentation of a single application.
Alan TillmanDeere & Co.
NOREX Select
Topic 5
EA Certification:
Anyone doing it? Is it bringing value?
Herb BergerCardinal Health
NOREX Select
Additional Topics
Please complete your
Workshop Evaluation
Upcoming Select WorkshopsMobile Device Mgmt Sept 20-21 Chicago
Topic TBD Nov Oklahoma City
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Thank you for taking part in the
Enterprise Architecture WorkshopNOREX SELECT