Gaining operational excellence through it optimization & ea

Editor's Notes

• #4: The possibility of a new Operating Model for IT begs the question: How Sustainable is your current IT Operating model? For most organizations it’s inefficient to the point of being unsustainable, as the recent downturn has made abundantly clear. Business demands continue to increase, and IT increasingly struggles to keep up. To a large degree it’s a complexity problem – things are so complicated now that each additional request is exponentially more challenging to meet.
• #7: Connect the Building without Architecture slide to this one: if you don’t have an architecture, a mess is inevitable. And when we look at the typical IT mess, we opportunities for significant improvement - but these significant improvements are ONLY possible through a holistic architectural approach. Only by looking at the big picture can we make significant progress in: Eliminating redundancies Creating Shared Services & managing them efficiently Using each project to add services to an overall IT portfolio – projects shouldn’t just contribute to more silos ---------- ---------- More quotes from the same McKinsey report: “ At large companies, eliminating these duplications and inefficiencies can reduce IT spending by tens or hundreds of millions of dollars while improving the quality of the IT operation and the satisfaction of those who rely on it. ”
• #8: Too many things become the right number of things. Too many applications and processes providing redundant capabilities. Summary : This all sounds great – but how do you actually get there? IT Optimization is the Foundation for operational excellence and strategic agility. Details : What we're saying is that without the right foundation in place - without an Optimized IT Core - your customers absolutely cannot achieve the capabilities necessary to realize their architecture vision and achieve operational excellence and the agility needed to meet new business needs rapidly (acquisitions, market changes, etc.) The concept of an Optimized IT Core -- which you may recognize from a book by researchers at MIT/Sloan, called Enterprise Architecture as Strategy -- is how we talk about delivering cost savings and efficiencies. At Oracle, we have identified 4 key principles of IT Optimization that really help to deliver these savings (more about that on the next slide). But the vision that's really going to get people excited is Cloud - or IT-as-a-Service - which is an entirely new way of running the business of IT. And that’s the critical point - once organizations have created this optimized IT Core, they are perfectly positioned to extend these services and to innovate on how these services are funded. IT can now talk about providing capabilities like self-service and dynamic provisioning, and can run their business using metering and chargeback.
• #9: Rationalization: too many kinds of things. Virtualization & Consolidation : too many things. Management automation: let’s centralize and automate. Shared Services: reduce redundancies, and create a portfolio of re-usable IT services at every layer of the infrastructure.
• #10: Too many things become the right number of things. Too many applications and processes providing redundant capabilities.
• #11: Once you have standardized your environment, the next step is to virtualize and consolidate – moving towards an optimized data center. The next 3 slides provide more detail around: - the need to virtualize at all layers - Examples of virtualization and consolidation
• #12: It is important to point out the value of virtualization at ALL layers of the stack and the benefits of this approach
• #13: Automated and efficient processes
• #14: Grid Computing is a great example of IT Optimization – it uses all four of the principles to demonstrate cost savings. We Rationalize the portfolio, consolidate resources onto the right size infrastructure, manage it all centrally – automating key functions, and provide it all as a shared service. On the right is a depiction of the Grid Computing Infrastructure. Grid Computing is a technology architecture that virtualizes and pools IT resources, such as compute power, storage and network capacity into a set of shared services that can be distributed and re-distributed as needed. It is applicable for database, system, and storage administrators who seek a high performance, scalable, manageable systems infrastructure that offers industry-leading cost savings.
• #15: Public Cloud vs. Private Cloud – points to consider: Cost – can be much cheaper to do it yourself Security / sensitivity Quality of Service Control What we’re really getting to here is the notion of a more rational, highly available, cost-effective environment – one that is a prime example of doing more with less. From storage to servers, from an application grid to a database grid, the technology is available today – and it’s important to note that these shared services are really the first step towards the Enterprise Private Cloud. We’re already seeing alternative approaches (of course public clouds, but also Amazon’s recently-released Virtual Private Cloud - http://www.allthingsdistributed.com/2009/08/amazon_virtual_private_cloud.html) that take steps towards addressing these needs. However, compliance, security, and other key issues will continue to make the value proposition around an Enterprise Private Cloud compelling.
• #16: The evolution of an optimized IT core is the ability to provide shared IT services for better business agility
• #17: EA provides a holistic view of business and aligns IT with business strategy. The main purpose of EA is to align business goals and objectives with IT infrastructure and solutions by defining future state architectures that are adaptable and agile for meeting business needs while making it easy to maintain and manage for IT. Implementing an EA provides the disciplined approach and governance that enable business and IT stakeholders to work together to achieve business innovation and agility, IT operational excellence and effective change management. EA Talking Points: • Align Business and IT • Focus on Future State • Governance Model • Repeatable, Iterative Approach • Prescriptive Guidance • Just enough, just in time
• #18: The Architecture Vision Phase is the first step in architecture development process. It frames the overall architecture discussion with regards to the business objectives and a concrete scope for areas to be addressed. Key Points: - Business Architecture: A view of the business goals and objectives, business functions, and the organizations involved Architecture Maturity Assessment: understand the organization’s current capabilities and ability to achieve business objectives – helps identify potential risk (what is the organization ready for) - Architecture Principles: act as a guiding force for every architectural decision throughout the process. For example, you may have an application architecture principle of “ Common Use Applications” (i.e. reuse applications whenever possible) that may drive and influence a technology architecture principle of a “Standard-Based Service-Oriented Architecture.” Knowing the principles and their relationships can serve as a foundation for decision-making throughout the architecture development process. - Architecture Scope: define the concrete scope of the architecture engagement – can be done by business segments (for example, business processes, business functions, organizations, and so on) or by architecture domains (applications, infrastructure, security, information, etc).
• #19: The Current State Architecture phase validates or discovers the customer’s key requirements and drivers for change and assesses the current state architectural capabilities in meeting the organization’s business objectives. Oracle takes a practical and iterative approach to current state – which avoids wasting resources collecting unnecessary details of the current state and focuses on the minimum required to accurately develop an architecture plan and build a business case in future phases. The Future State Architecture phase needs to provide a set of architectural recommendations, and identify the gaps that exist between current and future states.
• #20: The Roadmap phase starts with creating a prioritized list of architectural changes. It is unlikely that we ever want to do a “big-bang” approach to transitioning from the current state to the future state architecture. Instead, a much better approach is to break up the architecture recommendations from the Future State deliverable into several phases based on business priorities and dependencies. Key points: Start small, execute well and prove value Communication – plans, progress, successes and recoveries Application classification initiative & risk analysis Operations Level Agreements that are agreed upon and bi-directional Standardize IT management processes for databases, patching, backup, etc. Appropriate funding & cost allocation model Executive support – Initially and continually visible