Thursday, January 12, 2012

Case Study: How Portfolio Management Helped Nottingham Trent University Transform IT

Sponsored podcast discussion on how one of the UK's largest universities gained better control of project management with an HP Transformation Experience Workshop.

Listen to the podcast. Find it on iTunes/iPod. Download the transcript. Sponsor: HP.

Dana Gardner: Hi, this is Dana Gardner, Principal Analyst at Interarbor Solutions, and you’re listening to BriefingsDirect.

Today, we present a sponsored podcast discussion on how Nottingham Trent University has sought and gained strategic operational efficiency and improved IT management.

In this case study discussion, we hear how a combination of professional services and portfolio management technologies allowed this 25,000-student university, one of the UK’s largest, to improve end-user satisfaction while freeing up IT resources to pursue additional innovation.

To understand how, we're joined by Ian Griffiths, Director of Strategic Partnerships at Nottingham Trent University. Welcome to the show, Ian.

Ian Griffiths: Thank you. Glad to be here.

Gardner: We’re also here with Michael Garrett, Vice President of Professional Services for HP EMEA. Welcome to the show, Michael. [Disclosure: HP is a sponsor of BriefingsDirect podcasts.]

Michael Garrett: Thank you Dana.

Gardner: Now, Ian, the first question goes to you. When you began to think about improving how you did IT there, in your mind what was the one glaring thing that needed to be changed?

We were very, very good at moving forward and doing lots and lots of things, but delivering products at the end of that period was more difficult.



Griffiths: We were very, very good at moving forward and doing lots and lots of things, but delivering products at the end of that period was more difficult. We seemed to be running around in circles and didn’t quite meet customers’ expectations. So, we were doing a lot, working really hard, but not really delivering the last mile.

Gardner: When you started to peel away the layers and tried to figure out why that was the case, what did you discover and why did something like a professional services involvement become a priority for you?

Griffiths: We found that our processes were not really defined well enough. We really weren’t getting sign-off from the business, and the expectations were never really met. So it was clear that we were not doing something well, and we didn’t quite know what that was. And our teams within the department weren’t gelling that well together either.

Gardner: So perhaps having some outside additional authority and experience seemed to work for you?

Earlier attempt

Griffiths: Yes. That worked really well. We had had another attempt about 18 months before and had some consultants in, but it didn’t really gel. We were aware that we had a partnership with HP, and HP Professional Services seemed a sensible way to go. But we were still doubtful as a management team within the IS Department whether it was really going to work. And we are very pleased with the outcome.

Gardner: Let’s learn about Nottingham Trent University, one of the largest. You’re in Nottinghamshire and you have 25,000 students. Tell us a bit more.

Griffiths: We’ve been a higher education establishment for about 160 years. We’re one of the biggest providers of "sandwich education," which means that students have two years at the university, a year in industry, and then a year at the university.

We're seen as a popular university that has good reputation for placing students at the end of their courses, and we got top of The Green Agenda twice in the last three years within the U.K. We've got about 150 people working in the Information Services (IS) Department on three campuses and nine academic schools.

Gardner: Tell us about your responsibilities. What is it that you’re involved with in terms of helping these 150 people do their jobs better?

It’s often imagined that these organizations look to pure play consulting organizations for that advisory activity.



Griffiths: I have responsibility for the strategic partnership we have with companies and with firms. I have responsibility for the regional network within the East Midlands of the U.K., which is connecting all the universities in that region and all the further education colleges. And I also manage relationships with key suppliers, such as HP.

Gardner: Let’s go to Michael Garrett. Michael. It sounds as if Ian has had a relationship with HP, but looked for something bigger, and they were even doubtful that you could help them at first.

Garrett: It’s often imagined that these organizations look to pure play consulting organizations for that advisory activity. In Nottingham Trent’s situation they were willing to listen to a different type of vendor or organization in that space as to what they could offer in their approach. What’s different for HP Professional Services is that it forms part of HP’s Software organization. Our consulting capability is very focused on IT transformation, operations, organizations, and applications.

But it’s about bringing that into real practical use quickly with the support of technology. That's the real differentiator we wanted to bring to customers like Nottingham Trent, and hopefully that’s true with what we've seen in the practical implementation and the work we've done with them.

Gardner: Ian, tell me a bit about the journey. How has this worked out for you? When you began to try to determine what was wrong and what you needed to do, how did that unfold? It sounds as if you had a forest, but the trees somehow weren’t working in a capacity that allowed you to achieve your requirements.

Initial workshops

Griffiths: That's correct. We had some initial workshops where all the senior management team of the IS Department worked with HP and looked at what we wanted to achieve and looked at what the journey might look like to get there. I have to congratulate HP. They were able to get that team to gel together within IS in a way that we hadn’t before.

We spent a lot of time working together and working through the structure, the plan of the department, and what we called the tube map of the department. Everything, in a sense, was allowed. HP was very good at giving us a straw man to look at. In other words, giving those examples of what other companies have done, but forcing us to discuss them in detail and change them into what was right for Nottingham Trent.

They weren’t trying to sell the straw man, but were using the straw man as an example to move us forward, and it worked extremely well. Although there were some heated discussions amongst IS staff, HP was very good at facilitating those discussions.

Gardner: Typically we hear about the need to address people, process, and technology, when it comes to these sorts of projects. But it also sounds as if you needed to have a high level of customization, that it needed to be recognized that you are your own organization with your own variables, and that a cookie-cutter approach or a too general or methodological approach wouldn’t really be right.

Griffiths: That's correct. We had to go back to the rest of the department to try not to force something new on people that, as far as they could see, had no relevance to the situations they were in. We had to find a way as well of getting the business to buy into our new methodology, getting the business to feel some ownership, and getting the business to make some decisions during the planning of projects and the ending of projects.

We had to find a way as well of getting the business to buy into our new methodology.



Gardner: Michael Garrett, the need to customize, is that something that you valued? Do you think that this is an example of an area where HP is differentiated?

Garrett: It’s that level of being able to bring the input, the straw man, and then guide organizations around that model. To customize from scratch takes a great deal of time and can take too much energy and cost. What we’re trying to do is bring our method and models at the start point and then work in a very collaborative, but directed, way to get clients to a point, although, a configured approach rather than a completely dispersed approach.

Therefore, we get to things more quickly, but absolutely meet the requirement of the individual organization. We’ve got to appreciate they are different across different industries and different areas, and strong cultural alignment is critically important. We certainly saw that in this program.

Griffiths: The important thing again was that we were producing our outline, and that outline allowed us to go away and do a lot more detail later. In other words, we got the big picture agreed upon and then all the details were passed back to teams within the department to build up details in the areas where they had real knowledge of what happened.

Gardner: It also seems important, when you’re going about such a large-scale activity, to be able to measure along the way how things are going and perhaps offer feedback. Incentives were necessary or even helped a few more heated discussions, as you said, but you can’t measure where you’re going if you don’t know where you are.

Was there a point at some time, where you needed to get a state, an understanding of where and what’s going on in order to know how to measure, and what did you to do to get that?

Define projects

Griffiths: An important step early on in this was beginning to define how many projects we were running as a department and to categorize work into projects that were developmental and projects that were more of the business-as-usual type.

We found in the end that we had over 100 projects running simultaneously. Some of those projects had been running for more than a year, some had no real defined endpoint, and the customer requirements weren’t documented in a thorough way.

It’s important to measure how many projects you’ve actually got, and actually have a start date and a planned finish date for them. One thing we learned was that 100 was too many for us to run, and we were able to cut down by finishing some off, to less than 50 that we have now.

Gardner: So by rationalizing this, getting some visibility, exercising triage and prioritization, you've been able to cut your active projects in half. Is that correct?

Griffiths: That's correct.

Gardner: And what has that done now? What are some of the metrics of success by getting more of a handle over your portfolio and managing it?

We were actually delivering something that the customer was expecting.



Griffiths: Probably the biggest one is that projects are getting completed and the project didn’t become the be all and end all and continue running forever. We were actually delivering something that the customer was expecting. And the customer, the student or the staff department, had a glow that they have had something delivered to them.

Gardner: And what have been some of the educational benefits at a larger perspective beyond the strict technology benefits? Has this improved in any way in which you can measure your success and your basic mission in life of educating students?

Griffiths: The student satisfaction with IS has gone up over the last two to three years. They're very happy with our technology and technology moving forward. But again, we found that people were happier with the delivery of an item, rather than as IS was before, striving for technical perfection.

Gardner: So you were really understanding your requirements and what was necessary to get these goals.

Griffiths: If I have to give advice to other people, it is about the 80/20 rule that 80 percent can be delivered in 20 percent of the time. Most people are happier with something delivered that matches the expectations, but perhaps not all the bells and whistles, and then move onto the next project.

Gardner: A lot of times in organizations, the budgets are not growing rapidly and nowadays that's clearly the case. I imagine you had to be thinking about cost consciousness and energy conservation. Is that true that you’ve been able to keep your cost level, but increase satisfaction and allocate your IT resources more efficiently?

Aiming at 50/50

Griffiths: Yeah, it’s correct. Before, we’ve had the figures of, again, 80 percent being used in the areas of business-as-usual and only 20 percent in project and development work. We quickly moved to a 70/30 split and our target is to move towards 50 percent. We're not quite there yet, but we’re a lot more like 60 percent business as usual, 40 percent new development work.

Gardner: So all things being equal, you've been able to take your operating, maintenance-level budgeting, reduce the percentage there and put it more into innovation, creating more productivity, and developing therefore even higher satisfaction. It sounds like a virtuous cycle of adoption.

Griffiths: It’s a virtuous cycle and the other thing that is gained from that is appreciation amongst other departments within the university and with senior management with what IS was delivering, and getting them to prioritize what we did.

There was a problem, if we look back two or three years. IS very much decided what the priorities were. Now, the business is deciding and even deciding in the case that a project that was a favorite of a senior member of staff, he or she may decide that it no longer is a top priority, compared with other projects that needed to be delivered.

Gardner: Is there something about the products themselves, the portfolio management approach, that now allows the business side of the organization, the leadership in this case, to have more visibility or input? How were you able to get it?

There was a problem, if we look back two or three years. IS very much decided what the priorities were.



Griffiths: More visibility and more input. The example we always give is of a jam jar. You can keep putting rocks into a jam jar, but in the end, it becomes full. Unless you allow something to come out of that, nothing happens. So you’ve got to be able to allow things to finish and give you some capacity.

The other thing that I talked about was looking at the business benefits of everything we were doing and deciding the nice-to-haves probably weren't going to get prioritized at this stage.

Gardner: You mentioned earlier the tube map. Has that also provided visibility across the IT and leadership or organizational divide, or is this something you’re strictly using within the IS or IT organization?

Griffiths: We're using it outside the department to make people realize that we are working to an operational framework. As such, we have them stuck up round the department. And in the rooms where we have project meetings, they exist as well. As to vocabulary, we have senior staff using the phrase "the gate," where approval has to be given. The business has to be involved in the approval and deciding what priorities it has at that stage.

Gardner: Michael Garrett, the way that Ian is describing this, being able to double their innovation budget, cut their project numbers in half, get buy-in from leadership, a sense of cooperation across the organizational boundaries, is this typical? How would you describe this in terms of the industry at large?

Typical situation

Garrett: It's a typical situation that we see in a lot of organizations, even in very mature, even global and enterprise organizations that struggle with these challenges of organizational alignment and processes to support that. Project selection identification and transitioning to survey is the common problem we see.

With Nottingham Trent, we regulated it very quickly through that organizational design, then into the process to support that, and then working out what are the catalog and services that they offer. How do we then build that into projects and programs and then manage that into service transition?

It's very common. We see it in a lot of places. More mature organizations believe they do this very effectively. Nottingham Trent acknowledged that they needed help. It probably put them ahead of a lot of other organizations, especially in university space, which is a fast moving sector in UK, to be able to do something that many other large organizations just can't do.

Gardner: And clearly, the need to understand the software, the technology, the culture, really is a comprehensive holistic activity. Hitting one or two of those alone won't do it.

Garrett: It's important that it's continuous. If you build the right organizational relationship and engagement model, you take the workshop approach that we have up front and take your organization through that, right through to something tangible that’s delivering the real outcome in the business that’s very visible and usable. I think that’s very different than having different organizations do different types of consulting.

There aren’t many organizations that have that breadth and scope of capability to take someone from conceptual situation right through to practical implementation of technology to support that problem.



There aren’t many organizations that have that breadth and scope of capability to take someone from conceptual situation right through to practical implementation of technology to support that problem, and that’s where we like working with organizations like Nottingham Trent, that’s a great model.

Gardner: And Ian, is this something now that you’re building on? You mentioned that virtuous effect, the adoption effect. Are you able now to move toward working at service-level-agreement (SLA) levels or with key performance metrics and indicators. Is there a broadening of how you’re rationalizing and even professionalizing how you go about these processes?

Griffiths: That's correct. We produced a lot of what we call Level 3 processes from this and we looked at what our customers felt. We found that we’re having regular discussions about how we can tweak the diagrams and the systems that we’ve got in place. We see it very much as a live document, a live methodology and we’re looking at ways we can improve as time goes on.

Gardner: In wrapping up, I was hoping, Ian, that you might be able to share some 20/20 hindsight. If you were to offer some advice to an organization that was beginning to move more towards a comprehensive portfolio management, project management approach, looking at this more holistically and from the process level, what might you offer them in terms of lessons learned?

Griffiths: It's important that you have all your senior staff together designing the system from the start. We found that if people miss the early workshop, we tended to go back around the loop again. So I would say get your staff together and devote enough energy to it.

Feeling ownership

But don’t go into all the detail. Leave your staff on the ground, who’ve got more knowledge of the details inner workings of some elements of it, to do some work so they feel some ownership. And very quickly get an appreciation with your senior staff within your organization, not within IS, but from outside the IS department, of what you're doing and what you're trying to achieve.

But in the end, you need a few quick wins. In other words, if you can get a couple of projects working through the scheme quickly, people begin to think it's going to work.

Gardner: They'll see the success and they'll double down on that. Michael Garrett, we've come back to this workshop concept several times in discussion, I think that it's called the Transformation Experience Workshop. Why is that so powerful? Why does that seem to really work in terms of coalescing and getting these larger projects under way?

Garrett: It's something we've used for a few years now, something we developed in-house and we see as a really effective mechanism. It starts off in a fairly classic way of where are we, the current state, looking at future state, and workshop of the organization through that. But it's done in a very live, interactive way.

Leave your staff on the ground, who’ve got more knowledge of the details inner workings of some elements of it, to do some work so they feel some ownership.



So it's not a classic style workshop. We walk people around the room. We take them on a journey, and we bring them together through that process. As Ian said, if you didn’t attend the early workshop process, then you struggle sometimes to buy into it. It takes more time, and we end up reiterating things later on. The Transformation Experience Workshop is a way of bringing people together and bringing them around their own problems in a very active physical way.

We can do it in a small period of time, but usually people dedicate a day or so to that process. What they get out of it is that they bring themselves together around the challenges, the problems, and as Ian said, the quick wins, the things we can then go and address quickly. So it has a very different feel and a very different outcome than a classic workshop approach that many consulting firms have.

Gardner: Very good. I'm afraid we have to leave it there. You’ve been listening to a sponsored podcast discussion on how Nottingham Trent University has sought and gained strategic operational efficiency and improved their information technology management. I'd like to thank our guests. We've been joined by Ian Griffiths, Director of Strategic Partnerships at Nottingham Trent. Thanks so much, Ian.

Griffiths: Thanks very much, and it's a delight to pass on our experiences to others.

Gardner: And we've also been hearing from Michael Garrett, Vice President of Professional Services for HP EMEA. Thank you so much, Michael.

Garrett: Thank you and thank you, Ian, for the great partnership and work.

Gardner: This is Dana Gardner, Principal Analyst at Interarbor Solutions. Thanks again for listening and come back next time.

Listen to the podcast. Find it on iTunes/iPod. Download the transcript. Sponsor: HP.

Sponsored podcast discussion on how on the UK's largest universities gained control over project management with a transformation workshop. Copyright Interarbor Solutions, LLC, 2005-2012. All rights reserved.

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Wednesday, January 11, 2012

MIT's Ross on How Enterprise Architecture and IT More Than Ever Lead to Business Transformation

Transcript of a BriefingsDirect podcast in conjunction with The Open Group Conference in San Francisco on how enterprise architecture can lead to greater efficiency and agility.

Register for The Open Group Conference
Jan. 30 - Feb. 3 in San Francisco.

Listen to the podcast. Find it on iTunes/iPod. Download the transcript. Sponsor: The Open Group.

Dana Gardner: Hello, and welcome to a special BriefingsDirect thought leadership interview series coming to you in conjunction with The Open Group Conference this month in San Francisco. I'm Dana Gardner, Principal Analyst at Interarbor Solutions and I will be your host throughout these discussions.

The conference will focus on how IT and enterprise architecture support enterprise transformation. Speakers in conference events will also explore the latest in service oriented architecture (SOA), cloud computing, and security.

Today, we're here with one of the main speakers at the conference, Jeanne Ross, Director and Principal Research Scientist at the MIT Center for Information Systems Research. Jeanne studies how firms develop competitive advantage through the implementation and reuse of digitized platforms.

She is also the co-author of three books: IT Governance: How Top Performers Manage IT Decision Rights for Superior Results, Enterprise Architecture As Strategy: Creating a Foundation for Business Execution, and IT Savvy: What Top Executives Must Know to Go from Pain to Gain.

As a lead-in to her Open Group presentation on how adoption of enterprise architecture (EA) leads to greater efficiencies and better business agility, Jeanne and I will now explore how enterprise architects have helped lead the way to successful business transformations.

Please join me now in welcoming Jeanne Ross, Director and Principal Research Scientist at the MIT Center for Information Systems Research. Welcome back to BriefingsDirect, Jeanne. [Disclosure: The Open Group is a sponsor of BriefingsDirect podcasts.]

Jeanne Ross: Thank you, Dana. Nice to be here.

Gardner: Your upcoming presentation will describe how enterprise architecture has contributed to success for such companies as Campbell Soup and Southwest Airlines, but before we go into that, it has been typically difficult to concretely link things like IT productivity and general business success. I wonder, then, how you measure or determine that enterprise architects and their practices are intrinsic to successful business transformations? How do we link the two?

Ross: That’s a great question. Today, there remains kind of a leap of faith in recognizing that companies that are well-architected will, in fact, perform better, partly because you can be well-architected and perform badly. Or if we look at companies that are very young and have no competitors, they can be very poorly architected and achieve quite remarkably in the marketplace.

But what we can ascribe to architecture is that when companies have competition, then they can establish any kind of performance target they want, whether it’s faster revenue growth or better profitability, and then architect themselves so they can achieve their goals. Then, we can monitor that.

We do have evidence in repeated case studies of companies that set goals, defined an architecture, started to build the capabilities associated with that architecture, and did indeed improve their performance. We have wonderful case study results that should be very reaffirming. I accept that they are not conclusive.

Architectural maturity

We also have statistical support in some of the work we've done that shows that high performers in our sample of 102 companies, in fact, had greater architecture maturity. They had deployed a number of practices associated with good architecture.

So we do have evidence. It’s just that if you really don’t want to believe it, you could poke holes in it. There still is a certain amount of faith attached to the link between performance and architecture.

Gardner: I certainly get your point that repeatability would be a chief indicator, that if you intend to do something repeatedly, you can point to the ways in which you would carry that out. How about the intent from the perspective of wanting to transform in a certain way that you haven’t done before? Is there something that being an architect allows that’s different from the past? Is there something that’s new about this, rather than just trying to reengineer something?

Ross: Yes, the thing we're learning about enterprise architecture is that there's a cultural shift that takes place in an organization, when it commits to doing business in a new way, and that cultural shift starts with abandoning a culture of heroes and accepting a culture of discipline.

Nobody wants to get rid of the heroes in their company. Heroes are people who see a problem and solve it. But we do want to get past heroes sub-optimizing. What companies traditionally did before they started thinking about what architecture would mean, is they relied on individuals to do what seemed best and that clearly can sub-optimize in an environment that increasingly is global and requires things like a single face to the customer.

Nobody wants to get rid of the heroes in their company. Heroes are people who see a problem and solve it.



What we're trying to do is adopt a culture of discipline, where there are certain things that people throughout an enterprise understand are the way things need to be done, so that we actually can operate as an enterprise, not as individuals all trying to do the best thing based on our own experience.

The fundamental difference of being an architected firm is that there is some underlying discipline. I'll caution you that what tends to happen is great architects really embrace the discipline. They love the discipline. They understand the discipline, and there is a reluctance to accept that that’s not the only thing we need in our organization. There are times when ad hoc behaviors enable us to be much more innovative and much more responsive and they are exactly what we need to be doing.

So there is a cultural shift that is critical to understanding what it is to be architected. That’s the difference between a successful firm that’s successful because it hasn’t gotten into a world of really tough competition or restrictions on spending and things like that and an organization that is trying to compete in a global economy.

Gardner: It’s interesting to me that we're focusing not so much on the individual, the enterprise architect, but more the office of the enterprise architect.

Ross: Right. Would you like me to speak to an architect instead? Would that help?

Cultural phenomenon

Gardner: No, the point is that the champion that is important is not just an individual. It’s that putting into place a repeatable office of the enterprise architect that is a cultural phenomenon, rather than a charismatic one.

Ross: Yes.

Gardner: What then is the role of the architect, if this isn’t just about a champion, but really about change that’s repeatable and that’s culturally inculcated? What, then, is the role and what should they do?

Ross: The architect plays a really critical role in representing the need for this discipline, for some standards in the organization, and for understanding the importance of shared definitions for data. The architect should be able to create a very constructive tension in the organization, and that’s the tension between individuality, innovativeness, local responsiveness, and the need for enterprise thinking, standardization, and discipline.

Normally, in most companies, the architect’s role will be the enforcer of discipline, standardization and enterprise thinking. The tension will be created by all kinds of people who are saying, "Wait, I'm different. I need this. My customer insists on that." When the tension is working effectively, you get just enough architecture.

One thing we've learned over the years, as we've studied architecture, is that’s actually what we want. We don’t want to be a tightly architected organization, because tomorrow we're going to wake up and the world is going to change, and we have to be ready for that. We want to be architected enough to be efficient, to be able to reuse those things we need to reuse, to be agile, but we don’t want to start embracing architecture for architecture’s sake or discipline for discipline’s sake.

We don’t want to be a tightly architected organization, because tomorrow we're going to wake up and the world is going to change, and we have to be ready for that.



We really just need architecture to pull out unnecessary cost and to enable desirable reusability. And the architect is typically going to be the person representing that enterprise view and helping everyone understand the benefits of understanding that enterprise view, so that everybody who can easily or more easily see the local view is constantly working with architects to balance those two requirements.

Gardner: Let’s take a contextual view here. It’s 2012 already and there's a lot happening in IT with disruption in the form of cloud computing trends, an emphasis on mobile computing, big data, and the ability to harness analytics in new and interesting ways, all sort of churning together. We're also still faced with a difficult environment, when it comes to the economy. Is this a particularly good time, from your vantage point, to undertake enterprise architecture, or is this perhaps not the best time?

Ross: It’s a great time for most companies. There will be exceptions that I'll talk about in a minute. One thing we learned early on in the research is that companies who were best at adopting architecture and implementing it effectively had cost pressures. What happens when you have cost pressures is that you're forced to make tough decisions.

If you have all the money in the world, you're not forced to make tough decisions. Architecture is all about making tough decisions, understanding your tradeoffs, and recognizing that you're going to get some things that you want and you are going to sacrifice others.

If you don't see that, if you just say, "We're going to solve that by spending more money," it becomes nearly impossible to become architected. This is why investment banks are invariably very badly architected, and most people in investment banks are very aware of that. It’s just very hard to do anything other than say, "If that’s important to us, let’s spend more money and let’s get it." One thing you can't get by spending more money is discipline, and architecture is very tightly related to discipline.

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Tough decisions

In a tough economy, when competition is increasingly global and marketplaces are shifting, this ability to make tough decisions is going to be essential. Opportunities to save costs are going to be really valued, and architecture invariably helps companies save money. The ability to reuse, and thus rapidly seize the next related business opportunity, is also going to be highly valued.

The thing you have to be careful of is that if you see your markets disappearing, if your product is outdated, or your whole industry is being redefined, as we have seen in things like media, you have to be ready to innovate. Architecture can restrict your innovative gene, by saying, "Wait, wait, wait. We want to slow down. We want to do things on our platform." That can be very dangerous, if you are really facing disruptive technology or market changes.

So you always have to have that eye out there that says, "When is what we built that’s stable actually constraining us too much? When is it preventing important innovation?" For a lot of architects, that’s going to be tough, because you start to love the architecture, the standards, and the discipline. You love what you've created, but if it isn’t right for the market you're facing, you have to be ready to let it go and go seize the next opportunity.

Gardner: Perhaps this environment is the best of all worlds, because we have that discipline on the costs which forces hard decisions, as you say. We also have a lot of these innovative IT trends that would almost force you to look at doing things differently. I'm thinking again of cloud, mobile, the big data issues, and even social-media types of effects. So is that the case from your perspective?

Ross: Absolutely. We should all look at it that way and say, "What a wonderful world we live in." One of the companies that I find quite remarkable in their ability to, on the one hand, embrace discipline and architecture, and on the other hand, constantly innovate, is USAA. I'm sure I'll talk about them a little bit at the conference.

This is a company that just totally understands the importance of discipline around customer service. They're off the charts in their customer satisfaction.



This is a company that just totally understands the importance of discipline around customer service. They're off the charts in their customer satisfaction.

They're a financial services institution. Most financial services institutions just drool over USAA’s customer satisfaction ratings, but they've done this by combining this idea of discipline around the customer. We have a single customer file. We have an enterprise view of that customer. We constantly standardize those practices and processes that will ensure that we understand the customer and we deliver the products and services they need. They have enormous discipline around these things.

Simultaneously, they have people working constantly around innovation. They were the first company to see the need for this deposit with your iPhone. Take a picture of your check and it’s automatically deposited into your account. They were nearly a year ahead of the next company that came up with that service.

The way they see it is that for any new technology that comes out, our customer will want to use it. We've got to be there the day after the technology comes out. They obviously haven't been able to achieve that, but that’s their goal. If they can make deals with R&D companies that are coming up with new technologies, they're going to make them, so that they can be ready with their product when the thing actually becomes commercial.

So it's certainly possible for a company to be both innovative and responsive to what’s going on in the technology world and disciplined and cost effective around customer service, order-to-cash, and those other underlying critical requirements in your organization. But it's not easy, and that's why USAA is quite remarkable. They've pulled it off and they are a lesson for many other companies.

Gardner: And as you pointed out, being able to repeat this is really essential. So that gets back to that discipline. But you've mentioned that you've got ongoing research, and you've mentioned a company, USAA that you're working with and you're familiar with. I suppose this gives us a chance then to step back and take a look at what the MIT Center for Information Systems Research is and does and your role there.

Value from IT

Ross: The Center for Information Systems Research is part of the Sloan School of Management. We were formed in 1974 to study how companies get value from information technology.

In 1974, we were studying mainframes and IT directors. There was no such thing as a CIO yet, but we have certainly gone through the stages of the increasing importance of IT in organizations. We went through the end-user computing. We went through enterprise resource planning (ERP) and e-business. We've followed, and hopefully led, thinking around how IT adds value in organizations.

You mentioned this is a good time to be introducing architecture. This is a good time to be at the Center for Information Systems Research, because IT is so central now to business success, and many companies that didn't start as digital companies are really struggling to understand what it means to transform for the digital economy, and that's exactly what we study.

Gardner: You've mentioned one company, USAA. Let’s take a look at a number of companies. I know you're going to be mentioning several during your presentation. Are there any salient lessons that are common among them? Are they all different and therefore you can't draw such common denominators, or are there a couple that jump out?

Ross: Well, our established research on this, and this is the work that appeared in the Enterprise Architecture as Strategy book. We find that the things we learned as we prepared that book are still very true. Companies indeed go through stages, and they're very predictable -- we've not yet seen an exception to this -- and they're hard.

You have to respond to the marketplace. You have to do whatever it takes.



Stage one is the stage of, don't worry about the discipline, just have fun, learn how to use IT, apply it to any strategic need where it makes sense, and go out there and do your thing, but eventually all of that will lead to a fairly messy legacy environment.

We saw, when we studied these stages, that as companies understood these stages, they would avoid stage one, but it turns out that, if you are a fast growing innovative company, you can't avoid that stage. You actually don't know how you're going to make money. You have to respond to the marketplace. You have to do whatever it takes. Then, as you get really good at things, you start to establish yourself in what is often now a new industry.

You've created an industry. That's how you succeeded. But because you're making money, you're going to attract competitors. When you get to the stage that you actually have competitors, then you look at what you created and you say, "Oh no, we really have to clean up some of this legacy." That’s really what stage two is about. It's the underlying technology.

Now, we're learning how to not make quite as big a mess, but there is still this stage of, "Okay, let's refrain from kind of the crazy innovation and be more disciplined about what we put in and how we reuse" and all that kind of thing.

In the third stage, we get much more emphasis on building platforms that wire in those core processes that enable us to do high-volume transactions. These are things around order-to-cash, human resources (HR), or finance. There will be some of that in the earlier stages, but we really worry about scale in this third stage, scaling up so that we can manage large volume transactions.

We think this third stage is going to look different in a world of software as a service (SaaS) and cloud, because in the past, third stage often meant you put in Oracle, SAP, or something like that. Nowadays, it's much more about piecing together some cloud services. It does look different. It goes in faster, but it's still pretty tricky. If you're not architected well, you can really create a mess in stage three.

Working smarter

Stage four is really about working smarter on this platform, learning how to innovate off the platform. And companies are struggling to get there, because once you get in this platform, it takes a while to really make it solid and learn how to use it well. We've been studying that for some time, and companies get there.

This is the story of Campbell Soups and the Southwest Airlines. They're trying to use the platforms they've created, even though the process of putting them in takes a very long time. So you're still putting them in, while you are trying to learn to get good at using them. It's a challenging world out there.

Gardner: So I shouldn’t reach the conclusion that the enterprise architecture kicks in, in stage three and four. It should be something that would be there and useful throughout these stages.

Ross: That's correct. What happens is that in stage one you don't think a lot about architecture. If you don’t think at all, you are going to regret it. But you just can't predict what are going to be the critical capabilities in your organization. When you can't predict the critical capabilities in your organization, it limits how much you can architect.

You can bet on some things. There are some things around finance and HR that are pretty predictable even in stage one. But that early stage is where you're really defining yourself as a company, and that can last for some years, as you grow. As long as you're under $500 million in sales or at least, let's say, $200 million in sales, you've got some leverage there, because you can only create so big of a mess.

The Open Group is great for me, because there is so much serious thinking in The Open Group about what architecture is, how it adds value, and how we do it well.



If you start growing beyond that, you're going to need more architecture. That’s when you really get into stage two and start seriously defining your standards and the processes that enable you to get them in and recognize when you need exceptions and when they're out of date and that kind of thing.

Gardner: So even as we have had this evolution in these stages that happen within these enterprises, we have also had historical evolution in the definition, standardization, and certification around the architects themselves. Where are we there? Is there a stage three or four that we are at with the architects?

Ross: I think we'll be constantly tweaking the certification processes for architects. We get smarter about what they need to know and what they need to be good at, but I don’t know that I would so much call it stages for the architect certification as just getting smarter and smarter about what great architects will excel at. We have the basics in place. I haven't been involved a lot in certification programs, but I think there is a good sense of the basics that are required.

Gardner: We certainly seem to be well into a professionalization phase and we've got a number of different groups within The Open Group that are working on that across different disciplines. So I'm curious. Is The Open Group a good forum for your message and your research, and if so, why?

Ross: The Open Group is great for me, because there is so much serious thinking in The Open Group about what architecture is, how it adds value, and how we do it well. For me to touch base with people in The Open Group is really valuable, and for me to touch base to share my research and hear the push back, the debate, or the value add is perfect, because these are people who are living it every day.

Major themes

Gardner: Are there any other major themes that you'll be discussing at the conference coming up that you might want to share with us? Did we cover them all? What did we leave out?

Ross: Well, we're still doing the analysis on our latest survey. So I'm not exactly sure what the key findings will be that I'll be sharing. One thing we have observed in our cases that is more and more important to architects is that the companies are struggling more than we realized with using their platforms well.

I'm not sure that architects or people in IT always see this. You build something that’s phenomenally good and appropriate for the business and then you just assume, that if you give them a little training, they'll use it well.

That’s actually been a remarkable struggle for organizations. One of our research projects right now is called "Working Smarter on Your Digitized Platform." When we go out, we find there aren't very many companies that have come anywhere close to leveraging their platforms the way they might have imagined and certainly the way an architect would have imagined.

It's harder than we thought. It requires persistent coaching. It's not about training, but persistent coaching. It requires enormous clarity of what the organization is trying to do, and organizations change fast. Clarity is a lot harder to achieve than we think it ought to be.

We find there aren't very many companies that have come anywhere close to leveraging their platforms the way they might have imagined and certainly the way an architect would have imagined.



The message for architects would be: here you are trying to get really good at being a great architect. To add value to your organization, you actually have to understand one more thing: how effectively are people in your company adopting the capabilities and leveraging them effectively? At some point, the value add of the architecture is diminished by the fact that people don't get it. They don’t understand what they should be able to do.

We're going to see architects spending a little more time understanding what their leadership is capable of and what capabilities they'll be able to leverage in the organization, as opposed to which on a rational basis seem like a really good idea.

We've been studying companies, and the easiest ones to study are ones like 7-Eleven Japan and Protection One, which is a security company. These are companies that have replicated models. You look at one branch or one store and you say, "How are you doing this?" Then you say, "Okay, here is the best one. How are we going to make sure that everybody uses our technology and the information that's coming from it? How are we going to do that throughout the company?"

That’s even harder than designing and implementing an architecture. Architects are going to have to be well aware of that, because if companies are not driving value from what they have built, you may as well stop spending the money. That’s a tough thing for an architect to admit, because there’s so much you can do just on a rational basis to make the company look better. But if they are not using it, it's not worth anything.

Gardner: That might explain some of the attention that’s been given to things like cloud and mobile, because there is a sense of an organic adoption going on, and if the workers, the managers, the departments, specific functional groups like marketing, for example, are going to SaaS, cloud, mobile for "bring your own device," or consumerization of IT benefits, perhaps there's an opportunity to take advantage of that, learn from it, and then standardize it and implement as a platform. Is that somewhere close to what you are seeing?

Ross: Yes, absolutely.

Getting started

Gardner: Before we segue out, let's consider advice about getting started. When you're an organization and you've decided that you do want to be a level three or four maturity, that you want to transform and take advantage of unique opportunities for either technical disruption or market discipline, how do you go about getting more structure, more of an architecture?

Ross: That's idiosyncratic to some extent, because in your dream world, what happens is that the CEO announces, "This is what we are going to be five years from now. This is how we are going to operate and I expect everyone to get on board." The vision is clear and the commitment is clear. Then the architects can just say, and most architects are totally capable of this, "Oh, well then, here are the capabilities we need to build. Let’s just go build them and then we'll live happily ever after."

The problem is that’s rarely the way you get to start. Invariably, the CEO is looking at the need for some acquisitions, some new markets, and all kinds of pressures. The last thing you're getting is some clarity around the vision of an operating model that would define your critical architectural capabilities.

What ends up happening instead is architects recognize key business leaders who understand the need for, reused standardization, process discipline, whatever it is, and they're very pragmatic about it. They say, "What do you need here to develop an enterprise view of the customer, or what’s limiting your ability to move into the next market?"

And they have to pragmatically develop what the organization can use, as opposed to defining the organizational vision and then the big picture view of the enterprise architecture.

When they see real demand and real leadership around certain enterprise capabilities, they focus their attention on addressing those.



So in practice, it's a much more pragmatic process than what we would imagine when we, for example, write books on how to do enterprise architecture. The best architects are listening very hard to who is asking for what kind of capability. When they see real demand and real leadership around certain enterprise capabilities, they focus their attention on addressing those, in the context of what they realize will be a bigger picture over time.

They can already see the unfolding bigger picture, but there’s no management commitment yet. So they stick to the capabilities that they are confident the organization will use. That’s the way they get the momentum to build. That is more art than science and it really distinguishes the most successful architects.

Gardner: We'll be looking forward to learning more through your research and through the examples that you provide.

We've been talking with Jeanne Ross, the Director and Principal Research Scientist at the MIT Center for Information Systems Research. Jeanne and I have been exploring how enterprise architects have helped lead the way to successful business transformations as a lead-in to her upcoming Open Group presentation.

This special BriefingsDirect discussion comes to you in conjunction with The Open Group’s Conference, which is January 30 to February 3 in San Francisco. You'll hear more from Jeanne and many other global leaders on the ways that IT and enterprise architecture support enterprise transformation.

So thank you, Jeanne, for joining us in this fascinating discussion. I really had a good time.

Ross: Thanks so much, Dana, I enjoyed it.

Gardner: And I look forward to your presentation in San Francisco and I encourage our listeners and readers to attend the conference, if they're able. There’s more information available on our website and through this content.

This is Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator throughout this Thought Leader Interview Series. Thanks again for listening, and come back next time.

Listen to the podcast. Find it on iTunes/iPod. Download the transcript. Sponsor: The Open Group.

Transcript of a BriefingsDirect podcast in conjunction with The Open Group Conference in San Francisco on how enterprise architecture can lead to greater efficiency and agility. Copyright Interarbor Solutions, LLC, 2005-2012. All rights reserved.

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Thursday, January 05, 2012

Travel Giant TUI Group Leverages Virtualization Management Tools to Drastically Improve IT Performance Troubleshooting

Transcript of a BriefingsDirect podcast on how to achieve better systems management in cloud and virtualized environments.

Listen to the podcast. Find it on iTunes/iPod. Download the transcript. Sponsor: VMware.

Dana Gardner: Hi, this is Dana Gardner, Principal Analyst at Interarbor Solutions, and you’re listening to BriefingsDirect.

Today, we present a sponsored podcast discussion on how global travel and tourism giant TUI Group IT organization TUI InfoTec has come to grips with managing IT operations better, especially in mixed environments like hybrid clouds.

The critical need to better identify performance issues and outages prompted TUI InfoTec to find ways to cut time to troubleshooting. We’ll hear about their efforts and how they’ve resulted in a 50 percent reduction in the time needed to identify the causes of such problems.

Here to tell us about better systems management in heterogeneous cloud environments and in virtualized environments is Christian Rudolph, Infrastructure Architect at TUI InfoTec in Hanover, Germany. Welcome to the show, Christian. [Disclosure: VMware is a sponsor of BriefingsDirect podcasts.]

Christian Rudolph: Hi, Dana. Thank you.

Gardner: Tell me a little bit about TUI, and TUI InfoTec. I know you’re very big in Germany, but we have readers and listeners from around the world. Tell us a little bit about your travel and tourism company?

Rudolph: TUI InfoTec is an external IT provider for the TUI AG Group. The TUI AG Group is a European leading company in travel and tourism. They're very large in Germany, in the UK, and also in other European countries. They’re not presently doing a lot of business in the US.

We started as an internal IT organization from TUI Germany, and moved in 2006 to an external service provider for the TUI AG and other companies. We're a joint venture company with Sonata Software Ltd., which holds about 50 percent of the company. We're responsible for all the business-critical IT for TUI AG group like the booking systems, the access planning system, and all the other systems related to the business of the TUI AG group.

Gardner: So many mission-critical applications and systems involved here.

Rudolph: Yes, that’s correct. If it comes to an outage of the IT systems we lose a lot of money. So we have to take care that everything is working and running in the infrastructure.

Gardner: To what degree are you into virtualization? Are you highly virtualized in many apps or in certain apps? How is your landscape for virtualization currently?

Rudolph: We started with a small proof of concept in a Windows environment and we're now up to having 60 percent of our infrastructures virtualized. With most of the important systems, like our booking system. Nearly everything in this infrastructure is now virtualized.

60 percent Windows

W
e’re 60 percent in the Windows environment, and 20 percent in the UNIX environment, which is virtualized, and we're currently planning to go further -- to 80 percent virtualization in the total landscape. That's our current state, and we’ve driven more and more to a virtualized infrastructure for all the mission-critical systems.

Gardner: Are you taking that next step to private cloud, having that fuller benefit of a fabric approach to infrastructure? Have you gone a significant amount in that direction as well?

Rudolph: We’re currently thinking about planning our private cloud for our development team. We're also starting to take a look at how, from a cost perspective, we can do the best for our customers. Maybe we can include peak trading for some of the systems. We have a great opening for producing catalogs for the customer, so that they're able to connect our internal cloud over to external clouds and have the hybrid clouds then in place.

Gardner: So an important aspect of being able to move in that direction is to have great management and insights. Tell us a little bit about how you approached this issue. What did you need to accomplish in order to have a higher degree of success, when it comes to troubleshooting and remediation around IT issues?

Rudolph: We're a very silo-based environment. So we have dedicated network storage and a server team responsible for resolving issues in our infrastructure. What we've seen in the past were a lot of problems in getting the people together. Everybody had different management tools from the different vendors and nobody had an over-all view about the infrastructure.

We're also starting to take a look at how, from a cost perspective, we can do the best for our customers.



This is where we evaluated vCenter Operations to get an over-all overview about our infrastructure and to get a deep dive into our infrastructure to take a look at how can we solve problems faster and how this could help us in the normal process.

Gardner: What did you do? What was your path to solving these issues?

Rudolph: Normally when we have performance issues, our responsibilities are not very clear -- this is a server problem, a network problem, an OS system problem, or this is only the end-user who has a problem. He feels that the application isn't fast enough. In the past, we had a large problem getting information all together.

Now we have vCenter Operations on a single pane of glass that can roll down to the storage network and also the infrastructure CPU memory resources to have a clear overview of what could be the first root cause of an issue or performance for the end user. We've tried to figure out how can we bring it better together, and for us vCenter Operations, it’s a single pane of glass.

Gardner: Which version of vCenter Operations or what other VMware products have you been using in order to provide this singular but comprehensive view?

Rudolph: We currently use the vCenter Operations 1.0 Standard version, but we're in the beta program currently for 5.0. It's a new version, which comes out [in 2012] with vCenter Operations 5.0. These version give us the ability to do capacity planning and also performance analysis in one view so that we can adapt the things we have discovered in normal business hours for the system and also to do capacity planning for the future.

Gardner: Okay. How has that beta worked out? Are some of these features something that you think will be of value to you?

A good overview


Rudolph: We have two or three good cases there. This has really helped us in the normal business. We've been running with the beta for two months and what we've detected is that we have a good overview, because we have some multi-vCenter environments. We have, in total, three productive vCenters and we need to discover all of them. We had a problem, because we can't use Linked Mode for the vCenters. We had no central view for all the systems to get a performance overview of the system.

And there is a second step. We didn't have the capacity in the same view. So we weren't able to do capacity planning, until we manually got all the information from the different vCenters to have a consolidated planning view. For us, this is one of the most important things that we can do for planning in one place for all our vCenters and also know how many capacity hours are left for new machines. So we increased our time to deliver a virtual machine (VM).

Gardner: So having gained better insight and experimenting with even more and improved features and functions, perhaps you could share with us some of the pay-offs. What have you gained? What has this better IT visibility in operations and remediation brought to you in technical and in business terms?

Rudolph: The process is very easy, because we've seen that we reduced the time until we can deliver our root cause for our known problem by nearly 50 percent. We reduced the time for doing that, and this is also the best case for our customers -- that we can deliver faster solution for a system problem.

The second thing we've seen is that we can see earlier information about how the system is feeling? Through vCenter Operations and through the health status in the vC Ops we can see how our end-users feel. We can detect some problems before they occur, and that’s the best use case we can ever have.

When we detect problems faster and can resolve them faster, they have faster usage of the product.



Gardner: I see, you mentioned support. Are your folks that are providing internal support in helpdesk for various users throughout your large company benefitting from this as well?

Rudolph: Our end-users have also benefited from the products, because when we detect problems faster and can resolve them faster, they have faster usage of the product. Because it can detect problems before they occur, it can be proactive for the end-user. And when the end-users don’t have any problems, it's good for our helpdesk.

Gardner: How about looking towards the future? We talked a little bit about your use of improved operations, but will this become important when you move to more cloud, software-as-a-service (SaaS), and/or mobile types of activities. How important is this proactive ability in management as you innovate?

Rudolph: It's very important for us. We currently have the vCenter orchestration platform implemented, and we're starting to deliver to the end-user a service portal. Where they can request more-and-more VMs. When we didn’t have the products to monitor this system and we come to great trouble. How can we else go further, maybe to a hybrid cloud environment, if we can’t manage our private cloud like now with the vCenter Orchestrator and also with the vC Ops.

Gardner: Taking a step back and reviewing how things have gone, do you have any recommendations or advice for other companies that might be pursuing higher levels of virtualization and perhaps looking for similar reduction in meantime to solution for problems?

Two recommendations

Rudolph: I see two recommendations. Not many people know how powerful vCenter Orchestration is. This is one powerful tool as an automatic way for deployment, for maintaining, and also to do some other basic tasks in your virtual infrastructure. This is one important step for us to go to a higher virtualization ratio, because it can be delivered faster to our end-users.

The second thing is really to take a look at vCenter Operations and definitely to the new version that’s coming up. This really helps us to understand how my infrastructure is working. When I don’t know that, I may have problem with one of my disks and I/O and this reflects back to one VM especially. You have to know that, otherwise you don’t have recognition from the end-user that virtualization is really working and that you can bring mission-critical systems to the virtual infrastructure.

Gardner: So the success using these tools can really lead to a much broader strategic success in the overall adoption of IT.

Rudolph: Yes, that’s correct.

Gardner: We’ve been talking about how global travel and tourism giant TUI Group’s internal IT organization has come to grips with managing IT operations better especially as they approach new environments like hybrid clouds.

Not many people know how powerful vCenter Orchestration is. This is one powerful tool.



I’d like to thank our guest. We’ve been here with Christian Rudolph. He is an Infrastructure Architect in the TUI InfoTec Group in Hanover, thank you sir.

Rudolph: Thank you.

Gardner: This is Dana Gardner, Principal Analyst at Interarbor Solutions. Thanks also to our audience for joining us, and come back next time.

Listen to the podcast. Find it on iTunes/iPod. Download the transcript. Sponsor: VMware.

Transcript of a BriefingsDirect podcast on how to achieve better systems management in cloud and virtualized environments. Copyright Interarbor Solutions, LLC, 2005-2012. All rights reserved.

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