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Modernize and TransformApril 23, 2008
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Agenda
• General benchmarking results
• Barriers to modernization
• Best practices and next steps
• Unisys approach to modernization
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Modernization Where Old and New Come Together
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LA Enterprise Modernization Footprint
So how did we get here?
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Some Strategic Alternatives to Looking at Enterprise Modernization• Internal review
• Project Investment / Status review
• Skills / Competency review
• Analyst papers
• Review Management Reports
• Change of Strategy based on experience
• Get external assistance
• Fire fight and carry on down the road
• Benchmark where we/others are and where we want to be
So why benchmark with Unisys?
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• Compare performance with industry norm and best practice
– Gap Analysis
– Multi-Variate Analysis
• Strategically position IT investments with respect to business goals– Improves visibility of IT value to the Business
• Easy to understand– Written report and graphics
• Fast cycle– Fast turnaround graphical output and report
• Low commitment– In time and money
• Independent guidance– Backed by Saugatuck Technology– Based on primary research data
Benefits of Unisys Modernization Benchmark
What do you mean by Enterprise Modernization?
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Unisys Definition of Enterprise Modernization
Definition --
‘A holistic and ongoing evolution of business processes, applications, and technology where business and IT are aligned to produce flexible, low-cost operating models that reduce risk, improve performance, and increase agility.’
How do you deal with Enterprise Modernization?
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Unisys Approach to Enterprise Modernization is Issues Based• Platform directives
• Aging applications
• Aging workforce
• Aging technologies / infrastructure
• Legislative requirements
• Reporting / visibility needs
• Constrained budgets
• Establish Vision
• Set Roadmap
• Holistic approach
• Prioritize initiatives
• Change Management
• Benefit Management
• Incremental Improvement• Feedback Loop
• Leverage best in class tools and methodologies – 3D Blueprinting
What should we look as modernization indicators?
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Modernization Factors
Business Resilience
The degree to which the organization’s processes, planning, information, network and applications are managed and controlled in order to secure and to provide continuity for all business assets
Collaborative Business
The degree to which communications enables the optimized utilization of trusted knowledge and relevant data, by all stakeholders in a secure environment, to achieve a common business objective
IT as a Business Enabler
The degree to which IT is valued by the organization as a means to optimize all available resources and execute synchronized business objectives
Open Business and IT
The degree to which the organization chooses to utilize open standards to promote innovation and access across the enterprise as well as with citizens
Green BusinessThe degree to which the consumption of energy and resources is efficiently, flexibly and ethically managed by the organization and it’s suppliers to achieve “green”objectives
Business Execution
The degree to which the organization has demonstrated the ability to execute on its business and technology initiatives in support of its overall business objectives
Unisys developed six “Modernization Factors” that together comprise the Enterprise Modernization Maturity Benchmark based on: organizational interviews and client experience.
What does this Mean for LA Enterprise Modernization?
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LA UMB RESULTSThe Unisys Modernization Benchmark Survey
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LA Enterprise Modernization Footprint
So how did we get here?
1 = Not important / 5 = Extremely important
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Which three of the following
business objectives will be the most important in
driving success in your
business over the next three years. (Please select your top
three)
LA stands out in it’s focus on Budgets and Productivity, how will this effect the Citizen?
12
3
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Please rank the following business
objectives with regard to how important they are in driving
success in your business over the next three
years.
If it’s all important, how do you prioritise resources?
Is everything important?
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Enhancing skills = Further IT Automation?1
Critical
performance
gap?
Please indicate how important, in terms of
your future investment / budgeting priorities, it is to execute each of the
following business initiatives in order to drive success in your business over the next three years and how effective will you
be?
E
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Please indicate which of the
following descriptions best describes your Government
Body's approach to managing Skills
and Expertise today and three years from now
The reality of managing Enterprise Modernization in uncertain times
It has to move this way
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Please indicate how important, in terms of
your future investment / budgeting priorities, it is to execute each of the following technology initiatives in order to drive success in your
business over the next three years and your
effectiveness
Capacity and security issuesPriority gap closure
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IT and Business alignment over IT Sourcing
Please indicate which of the
following descriptions best describes your Government
Body's IT Sourcing model
Business Vs IT View
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Changing the value of IT through execution
Please indicate which of the
following descriptions best describes your Government
Body's approach to IT Management
Practices today and three years
from now
Perception, opinion, agendas
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Communication & Collaboration in transition
Please indicate which of the
following descriptions most closely describes your Government
Body's communications capabilities today and three years
from now
Over communicate &
break down silos
In Summary
• People, politics, priorities and budgets
• If LA is going to deliver it all themselves, what will they have to stop doing?
• How does LA change and evolve their single year execution ability?
• How does LA manage their internal perceptions and communication to increase motivation?
• No stone left untouched, think about Modernization holistically
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Questions & Answers
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So what does this mean for LA?Best Practices
We are experts in Enterprise Modernization!
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Holistic Approach to Enterprise Modernization
BlueprintingRepository
As-Is Business
Model
Business needs
Strategic Modernization Services
Process Modernization Services
Application Modernization Services
Infrastructure Modernization Services
BlueprintingTools
To-Be Business
Model
Strategy
Process
Applications
Infrastructure
Engagements can start at every level
Start
Start
Start
Start
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Based on customer data, Top Seven Barriers are:
• Finding Funds
• Skills Gap
• It Takes Too Long
• Risk in Changing Core Business Applications
• Where to Start?
• Modernize and Maintain – How Can You Do Both?
• Quality of Service – Compromising Service Levels
Common Barriers to Modernization
Point Solution
Cost Reduction
Planning
Investment
An Enterprise Modernization view helps to address where to get started in overcoming these obstacles
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Better, Cheaper, Faster?IT’s hands are tied by cost structure
Source: Ovum and Gartner
5%
30%
42%
Today
23%
72%
28%
Application maintenance
Application innovation
Infrastructure maintenance
Infrastructure innovation
45%
10%
15%
30%
55%
45%
ROI forBusiness
and IT
IT budget as % of revenue
The Ideal
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Risk of Inaction
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Risk of working with the wrong partner
16%
26% 28%34%
0%
50%
1994 1999 2000 2004
Company GainWells Fargo 50%
Merrill Lynch 300%
Ericsson 100%
ALLTEL 66%
Vsys 300%
SoftwareDevelopment
SoftwareDevelopment
Software Success is PossibleProject Success Rates
Source: Standish Report Page 284/30/2008
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Getting Started
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Modernization of Systems Can Have Many Dimensions and Flavors
Platform migration
Application improvement
Non-invasive application integration
Service Oriented Architecture
Transformation
Language-to-language
conversion
Data architecture
migration
Application and data architecture
consolidation
Application Portfolio
Management
Data warehouse deployment
Application package
selection and deployment
Reusable software assets and component
reuse
Model-Driven Architecture
transformation
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Wide Spectrum of Services can be Utilized at Any Stage of a Modernization Project
Infrastructure Assessment
Application Portfolio Assessment
Knowledge Mining and Abstraction
Strategy and Business Case
Start with one or more of these
Refactor Translate Wrap Replace Orchestrate
Iteratively apply one or more of these
Platform and Data Migration Test and ValidationData and Application Integration
Combine with, or independently leverage, these
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Refactor Translate Wrap Replace Orchestrate
Test and ValidationData and Application Integration
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Gartner’s View on Application Triage
• Assess the application portfolio on a regular basis
• Use a top-down classification method to divide the application portfolio into categories for further analysis
• Apply bottom-up detail analysis to the categories to develop detailed action plans
A high-level decision framework can structure the sorting of applications. With some variations, the following classes have proven useful in many APM initiatives:
Tolerate systems that satisfy a significant portion of the business function and are on platforms that deliver high quality of service.
Invest, innovate in or integrateapplications that increase the value or leverage of business processes, cross application stovepipes or have service levels or data volumes that preclude conversion.
Migrate systems that are on "burning platforms" or use declining or irreplaceable skills.
Eliminate applications that no longer provide significant business value, beginning with those that are technically weak.
Source: Gartner, 2007 4/30/2008
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Unisys Portfolio Management Approach
Core To Organization
Strategy
Core Operation Hi Cost / Hi
Volume
Core Operation Lo Cost / Lo
Volume
Non-Core Any Cost / Any
VolumeObsoletePlatform
Business Value
TechnologyValue
REPLACE
RIGHT SOURCE
REPLACE
Service Enabled
RENOVATE
RIGHT SOURCE
RENOVATE
RIGHT SOURCE
Strategic
DEPLOY
RIGHT SOURCE
DEPLOY
RIGHT SOURCE
Service Capable
REPLACE
RIGHT SOURCE
RENOVATE
RENOVATEREPLACE
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Illustration – Findings
Business Value
Commodity
Architecture Window
Technology ValueObsolete
Public Safety
Benefits Processing
Obsolescence Leading Edge Bleeding Edge
Courts
Legacy
LandMgmt
BudgetTracking
Tax Processing
Mainstream
311
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Next Steps
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3D BlueprintingOur 3D Blueprinting Approach Uniquely Illuminates the Optimal Path Between Strategy and Execution
Knowledge Prioritization Integration
Business Strategy
• Business Alignment
• Risk Management
• Cost Control
• Process Improvement
• Process Centricity
• Service Orientation
• Data Security
• Business Intelligence
• Virtualization
IT Execution
Strategy
DrivesInfrastructureLayer
Applications Layer
Operations Layer
Strategy Layer
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• Good understanding of the modernization process
• Skills around creating comprehensive end-to-end solutions
• Robust ability to deliver complex requirements
• Innovative approaches for flexibility and alignment
• Comprehensive project management, perhaps on a global scale
Modernization is a holistic, multi-discipline which requires…
You need a partner…that identifies with and provides for
visibility, trust and control4/30/2008
Steps Moving Forward
• Establish vision• Set roadmap
– Application Portfolio Management– Knowledge Mining and Abstraction
• Holistic approach
• Prioritize initiatives
• Change Management
• Benefit Management• Incremental improvement• Feedback loop• Leverage best in class tools and
methodologies – 3D Blueprinting
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Change is Good. Change is Inevitable: Embrace it.
“If you always do what you always did, you always get what youalways got”
– Einstein
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Questions & Answers
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Thank you
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