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From Application Convergence to Capability Planning Integrated EA Conference London, 5th – 6th March, 2013

DHL | Page Integrated EA Conference London, 5th – 6th March, 2013

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Who We Are

Enterprise Architecture and Portfolio Management are the key Business IT management disciplines required to achieve convergence to target

Strategy

Initiatives Portfolio

Strategic Roadmap

Projects Portfolio

Integrated Country Plans

Service Operation

Governance for

Business - IT alignment Enterprise

Architecture Data Capture – Quality &

Consistency Common Information Systems & Services Information

Standards

= Structural program = Functional program

Customer Facing Systems

= Ownership

Corp. Corp. Corp. Corp. M&S OPS Customer data synchronisation Enterprise

Integration Infrastructure

(ESB) Common label

printing & reading services Universal T&T

Service Common label standards (incl. 2D barcode) Common

handheld terminal solution

Universal product ordering service Pr

ojec

ts Web portal

Universal product & network

directory service Customer Joining

Handbook Domestic network event standards

Universal routing service

Partner Joining Handbook

= Must - Do ’ s 1 1 1 2 2

1 2 = Most - Do ’ s rated by urgency BDP

governance Customer

Service portal Enterprise Portal Infrastructure

1 Governance I • Specific standards defined upon need from functional work streams

• Business objects identification 1 1 Governance

for Business - IT alignment Enterprise

Architecture Data Capture – Quality &

Consistency Common Information Systems & Services Information

Standards

= Structural program = Functional program

Customer Facing Systems

= Ownership

Corp. Corp. Corp. Corp. M&S OPS Customer data synchronisation Enterprise

Integration Infrastructure

(ESB) Common label

printing & reading services Universal T&T

Service Common label standards (incl. 2D barcode) Common

handheld terminal solution

Universal product ordering service Pr

ojec

ts Web portal

Universal product & network

directory service Customer Joining

Handbook Domestic network event standards

Universal routing service

Partner Joining Handbook

= Must - Do ’ s 1 1 1 2 2

1 2 = Most - Do ’ s rated by urgency BDP

governance Customer

Service portal Enterprise Portal Infrastructure

1 Governance I • Specific standards defined upon need from functional work streams

• Business objects identification 1 1

SM Roadmap Gateway Applications

2002 2003 2004

Piece Enablement

Global AP EA US Complete Planned

Dox Manifest

ACA 2.0 to support Piece, Australia the Europe & Africa Gateway Requirements.

CALMS will replace FMM, FLITES and ACM

Version 1.3.1 28th May 2002 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010

Q4 Q1 Q2 Q3 Q4

Governance for Business - IT - alignment Customer Relationship ESB

Operations ESB Integrated ESB Data Capture – Quality & Consistency Definition Implementation Common label standards (incl. 2D barcode)

Governance I Definition Shipment status view agreed Service available Rollout complete Universal tracking service

Customer data synchronisation EA repository

Customer Service portal Enterprise Integration Infrastructure (ESB) International IT Strategy Universal product & network directory service Universal product ordering service Customer joining handbook Common Information Systems & Services Enterprise Portal Infrastructure Information Standards

Programmes / Projects Standards management

Customer Facing Systems Universal routing service

Domestic International Common label printing & reading services Rollout complete Service available

Enterprise Architecture Web portal = Must - Do ’ s

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010 Q4 Q1 Q2 Q3 Q4

Governance for Business - IT - alignment Customer Relationship ESB

Operations ESB Integrated ESB Data Capture – Quality & Consistency Definition Implementation Common label standards (incl. 2D barcode)

Governance I Definition Shipment status view agreed Service available Rollout complete Universal tracking service

Customer data synchronisation EA repository

Customer Service portal Enterprise Integration Infrastructure (ESB) International IT Strategy Universal product & network directory service Universal product ordering service Customer joining handbook Common Information Systems & Services Enterprise Portal Infrastructure Information Standards

Programmes / Projects Standards management

Customer Facing Systems Universal routing service

Domestic International Common label printing & reading services Rollout complete Service available

Enterprise Architecture Web portal = Must - Do ’ s

Invoicing C u s t o m e r R e l a t i o n s h i p Customer Facing IT Services

Products & Services Ordering Financial Accounting Controlling Procurement

Business Management Human Resources Information Resources Product Delivery

P r o d u c t i o n I n f r a s t r u c t u r e Network Data Interoperability Inform

ation Standards C

omm

on Services

Domestic IT Strategy

IT Operational Infrastructure

Cost C

ontainment

Enterprise Architecture Governance Portfolio Management Transformation, Change Management, Communication

ID 1 2 3 7 11 15 19 32 63 70 75 76 77

27 02 05 08 11 14 17 20 23 26 29 01 04 07 10 13 16 19 22 25 28 01 04 07 10 13 16 19 22 25 28 31 03 06 09 12 15 18 21 24 27 30 03 06 09 12 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007

Enterprise Architecture

Portfolio Managem

ent Governance around

Enterprise Architecture reduces complexity and cost and improves agility

Governance around Portfolio

Management ensures benefit

delivery and risks are managed

Project Portfolio

Projects

ADRIAN LARRY


From Complexity to Capability

 In 2008, as the new DHL acquisitions were ramping down, we found our self in a major dilemma.   1500+ applications in Europe alone, with substantial overlap and complexity.

Our target was to reduce the portfolio by 50% by the end of 2012 At the end of 2012, we had sunset 699 applications and we also had a cultural shift in how we thought about and managed the application portfolio

We want to tell you a story about a real world success….

  Complexity   Capability

  Popular slide from 2008   Typical slide in 2012

3


LEJ

JFK CVG

EMA

CDG

LOS

BAH DEL

LAX HKG

SIN

ANC

ICN

PVG

BKK

NRT

DXB

BLR

SYD

HNL

MEL

BRU

DHL Express: The World’s Most International Company

4

2 Global IT Centers (Cyberjaya and Prague)

Approx. 29,500 vehicles6

Approx. 260 dedicated aircraft

3 Global Hubs (LEJ, CVG, HKG) 19 Main Regional Hubs

Approx. 2.6 million customers5

Approx. 4,000 Facilities3

Approx. 34,000 Service Points4

Approx. 100,000 employees2

Approx. 450 million shipments1

 

> 220 countries/territories served > 500 airports served globally

IT

4 Global QCC (Bonn, Leipzig, Cincinnati, Singapore)

27 country QCC QCC

1)  all products; FY 2011 2)  Full-time equivalent employees incl. overtime and temps; Full year 2011 3)  Hubs, offices, terminal / service centers, gateway 4)  Status end of 2011 5)  Active customers in sales portfolio 6)  Owned and subcontracted trucks and vans

Part of the Deutsche Post DHL Group


Decentralized Execution In A Centrally Planned Network

5

•  Historically a high degree of local autonomy

•  Standardization around core operational processes and information exchanges to grow the Network

•  Globalization increased need for standard processes and systems

•  DHL acquired by DP WorldNet along with other acquisitions in early ‘noughties’

•  Dramatic increase in complexity of IT landscape

•  Business integration efforts helped reduce business and IT complexity, but not everywhere…

A networked business, where each part of the network understands its dependency upon the rest of the network – Think Global. Act Local. Stay close to the Customer.


Coordination Unification

Diversification Replication Low High

Low

H

igh

Bus

ines

s Pr

oces

s In

tegr

atio

n  Business Process Standardization

Express Europe Business Operating Model Evolution

6

Low High

Low

H

igh

2008 •  Core international business based on

‘standard’ products, processes and systems •  Not all processes standardized and some

systems regionally owned •  Some domestic businesses operating on

standard platform with extensions •  Other domestic businesses operating on local

platform

2013 •  Regional variance reduced and change initiatives

underway for the rest •  Domestic businesses

•  Non-profitable businesses sold •  Profitable businesses ring-fenced •  Business transformation initiatives to standard

platform

Bus

ines

s Pr

oces

s In

tegr

atio

n

 Business Process Standardization

Coordination Unification

Diversification Replication Low High

Low

H

igh


Convergence In the Application Portfolio

7

0

200

400

600

800

1000

1200

1400

1600

Number of Applications in

Europe [#]

2008-2012 699 sunsets

-61%

Baseline 2008 Q3

2008 2009 2010 2011 2012 2013

EGAP and Specialist 195 215 275 302 320 345 375

EU Convergence 1153 1090 951 709 557 454 364

Total 1348 1305 1226 1011 877 799 739


The Convergence Journey – A Tale of 50 Countries

8

One IT Platform

Production Infrastructure

Business Domain Model 1.0

Business Management

Customer Relationship

FinancialAccounting

Human Resources

Information Resources

Products and Services

ShipmentHandling

Service Alert Management

Ordering

InventoryManagement

Product Delivery

CorporateGovernance

Corporate ManagementStrategy

Legal andRegulatory

OperationalBusiness Management

Communication

Market Researchand Analysis

ProductDevelopment

ProductAvailability

Movement &Netw ork Planning

MovementExecution

ProductionResources

Sales Customer Support Customer Contact HistoryCustomer Contract / Agreements

Customer Contact Points Customer Identity

Service Requests OrderPricing

Invoicing

Controlling

Procurement

Solutions Int’l TradeExpress Freight Air & Ocean

Express Global Application

Portfolio (EGAP) EGAP+

Only seen in outline. But here is the bearing and co-ordinates system.

1

But we can tell you what your first destination is.

2

Before you can start you need to figure out where you are.

3

Give us more detail on the destination so that we can find our way.

4

We have all these other capabilities today – we don’t find them here!

5

Progress, we’ve filled some gaps with existing solutions.

6

Now the target is coming into view and we need to close our capability gaps

7


Success Factors

9

 Develop a practical framework

 Ensure there is a single accountable source of truth.

 Set targets. Measure and report aggressively


Success Factors - The Framework Find a practical framework

10

What is an “application”?

What is a “capability”?

How do we drive decisions?

How should we organize and classify what we know?


Success Factors - The Framework Our Co-ordinates System, The Business Domain Model

11

What will change? §  Product packaging (i.e. Marketing products) §  Core services remain relatively stable

§  Organization §  Command and control §  Job profile / functional responsibility

§  Physical Processes (How not what) §  Technology (not just IT) §  Volumes

What will remain (relatively) stable? §  Things (business objects) the business works

with §  E.g. shipments, vehicles, customers

§  Core capabilities of the business §  E.g. booking, pick-up, delivery

§  High-level processes §  E.g. booking to delivery

Processes

Technology

Applications

Domains / Services

IT B

usin

ess

Stable

Business domains will remain stable and support the management of business and IT change while concurrently enabling business and IT alignment.

Change

Change

Change



Business Management


FinancialAccounting

Human Resources



ShipmentHandling


Ordering

InventoryManagement

Product Delivery

CorporateGovernance


Legal andRegulatory


Communication


ProductDevelopment

ProductAvailability


MovementExecution

ProductionResources




Invoicing

Controlling

Procurement



An IT Landscape Based On The Business Domain Model Will Reduce Redundancies and Address the Gaps

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Business Management


FinancialAccounting

Human Resources



ShipmentHandling


Ordering

InventoryManagement

Product Delivery

CorporateGovernance


Legal andRegulatory


Communication


ProductDevelopment

ProductAvailability


MovementExecution

ProductionResources




Invoicing

Controlling

Procurement




Business Management


FinancialAccounting

Human Resources



ShipmentHandling


Ordering

InventoryManagement

Product Delivery

CorporateGovernance


Legal andRegulatory


Communication


ProductDevelopment

ProductAvailability


MovementExecution

ProductionResources




Invoicing

Controlling

Procurement


Initial situation:

Target Situation:

•  Duplication - Country and global applications supporting the same capabilities.

•  Gaps - Unstandardized capabilities supported by local processes and applications.

•  Inconsistent application partitioning and interfaces

•  Standard capabilities supported by standard processes and applications

•  Gaps filled in global processes and application portfolio

•  Target applications aligned to standard interfaces

•  Reusable, common services Application A Application B Application C Application D


Success Factors - The Framework Capability Pipeline - Capturing the Key Decisions

13

Business Review

Pre-Analysis

Implementation

Clarification Required Further clarification or refinement is needed

Proposed Capability proposed, not yet reviewed by architecture

Analysis Capability under review by architecture

Under Review Capability being reviewed/prioritized by business

On Hold Business has taken the decision that this capability is a low priority and should not be reviewed further at this time

Rejected Business has taken the decision that this capability is not part of standard processes and therefore should be planned to eliminated

Agreed Exception Business has taken the decision that this capability will be allowed to continue as an exception to the standard process

Endorsed Business has taken the decision that this capability should be supported in the target systems

Approach Devised A high level approach for delivering the capability, including the process and applications that are affected, by Architecture & the respective functions.

Road mapped High level timing applied and revised once project is approved

Delivered Capability has been implemented in target architecture/systems. Ready for full deployment.

Deployed Capability has been deployed to all areas (functions/countries) as agreed


Success Factors - The Framework Applications used by Express EU

14

116

16

194

343

130

0

50

100

150

200

250

300

350

400

Target Nomination for Target Specialist Non Target For Sunset

20 Global Non Target

Applications

EU Convergence Scope

Application Portfolio Management

799 Applications


15

Deliver Deploy

Project Review

Project Approval Request

Review / Recommend

Endorse

Roadmap

Portfolio Review Board

IT project funding is too late to discover the plans for a new capability

Executive Committees

Success Factors - The Framework Making Tracking Part of The Process


16

Pre-analysis Devise Approach Deliver Business

Review Deploy

Capability Review Team

Cross Function

Executive Committees

Roadmap

Bus. / IT Architecture

IT Product Manager

Capability Pipeline Stages

Business Architecture

Making the Governance Transparent

Portfolio Review Board

Project Review

Success Factors - The Framework Making Tracking Part of The Process

Review / Recommend

Endorse


17

Service Management

Project Portfolio

Management

EAR (System Architect)

ClearView

iShare, COIN

SPM

Application Portfolio

Management

E++ requirement

database

ACT EMAD

LRT

Project

Work Package

Development Deployment

Solution

Component (Application)

Deployed Component

Service

SLA

Roadmap

Requirement Capabilities

Success Factors – Single Source of Truth Ensure There is a Single Accountable Source of Truth


Success Factors – Single Source of Truth Ensure There is a Single Accountable Source of Truth

18

Service Management

Project Portfolio

Management

EAR (System Architect)

ClearView

SPM

Application Portfolio

Management

Project

Work Package

Development Deployment

Solution

Component (Application)

Deployed Component

Service

SLA

Roadmap

Requirement Capabilities

E++ requirement

database

ACT EMAD

LRT

Management reporting

Ensure that the single source is considered the truth Pick a source, minimize/eliminate all other sources of data..

Assign ownership/accountabilities to each

data point USE the data to

encourage self correction


Success Factors – Set Targets And Measure Application Convergence Scorecard

§  Ensure that there are both local/individual and group targets §  Everyone has a vested interest in achieving the group target §  Aggressively track and measure (start EVERY meeting/review with them)

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Europe January YTD2012 ACT YTD Trend ST AD FC GL BB DD AB EI IJ CH TR SE

IT Application Sunsets [#] 108 9 - 3 0 3 2 0 0 1 0 0 0 0 0Convergence Usage of EGAP [%] 85.5 86.1 flat 94.8 90.6 73.8 95.5 81.5 82.9 71.2 93.8 71.9 89.8 66.4 94.1

Extent of EGAP [%] 67.7 39.8 better 57.8 21.2 39.8 29.3 41.6 36.4 9.7 46.5 60.0 50.9 30.8 25.7

Imperative 2013 Metric

Local Targets

Group Targets


Looking to the Future – Our Principles for Success

20

Consistency but be practical and willing to adapt as you go along §  Start (establish framework) and then refine §  Don’t get lost in the details §  Practical about data, it will never be perfect §  Big picture benefit vs. individual case. Steer toward the big benefit case, otherwise it will be easy to

avoid any change by rejecting each change whether it stands up individually

 Develop a practical framework  Ensure there is a single accountable source of truth.

 Set targets. Measure and report aggressively


Looking to the Future - EU Application Convergence Roadmap

21

0

200

400

600

800

1,000

1,200

1,400

1,600

Number of Applications in

Europe [#]

2008-2012 699 sunsets

-61% (in scope apps)

OMP 19 /GRE 18 BICC 24 /H&G 112

Baseline 2008 Q3

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EGAP and Specialist 345 345 345 345 345 345 345 345 345 345 345

EU Convergence 1153 1090 951 709 557 454 364 181 119 60 0

Total 1498 1435 1296 1054 902 799 709 526 464 405 345

2013 90 sunsets 78 Country

2 H&G 10 Regional


Target Architecture and Dependencies

22

The Journey Continues Through Managed Evolution

New

Extend Optimize

Maintain

Performance Cost

Revenue


Business Management


FinancialAccounting

Human Resources


Products and Services Ordering

Product Delivery

Invoicing

Controlling

Procurement

Prioritize Roadmap

Implement Operate

DCG PRG TS (EG)

Region

Operation

Integration Service 2012 2013 2014 2015

+ 2015

US

DCG EGAP

DCG ES AM/AP

Global

DCG Time Sensitive EG

Global

DCG Framework Real Time

DCG Non Time Sensitive EG

DCG Framework (EG)

DCG PRG NTS (EG)

DCG Outdated Technology

DCG Outdated Technology EOSL

Global

DCG Express Dedicated env. / DR

Pending ITS Quotations

Quotation approved

Quotation approved

 Establish capability management and planning around the capability lifecycle.

Devise High-Level

Solution

Project Definition

And Initiation

Capability Rollout.

Sunset non-standard Implementation

Monitor and Analyze

Capability Performance

Documents

From Application Convergence to Capability · PDF fileFrom Application Convergence to Capability Planning ... directory service Customer Joining 2 ... (Cyberjaya and Prague)