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Volvo Group IT Governance 2006

Volvo Group IT Governance

Enterprise Architecture at Volvo January 28 2008

Charles Jobson Volvo Group IT Governance – Enterprise Architecture Team

Volvo Group IT Governance 2006

Volvo Group IT Governance

1. Enterprise Architecture Definition

2. Volvo Group Organization

3. Enterprise Architecture from a Volvo Group perspective

Content

Volvo Group IT Governance 2006

Volvo Group IT Governance

Enterprise Architecture describes the structure and guiding principles governing the development and implementation of enterprise's information systems.

Enterprise Architecture Definition

Core InfrastructureCore Infrastructure

Application InfrastructureApplication Infrastructure

ApplicationApplication

InformationInformation

Business ProcessesBusiness Processes

Business Business Strategy Strategy

& Objectives& Objectives

Infrastructure Architecture

Application Architecture

Information Architecture

Business Architecture

Solution Architecture

Enterprise ArchitectureFull pyramid

Volvo Group IT Governance 2006

Volvo Group IT Governance

Group KPI Structure to use

Group Process Standards to use

Group and Domain Information Architecture to use

Group and Domain Apps and App Architecture to use

Group and Domain App Infrastructure and Architecture to use

Group and Domain Core Infrastructure and Architecture to

use

Group KPI’s BA/BU KPI’s

Process KPI’s, ...

Standards used like SCOR, CCOR, DCOR, Process Management ...

KOLA logic, Parts master, ParmaId’s, Partner...

Finance, HR, User Catalog, Design & Auton. service based

...

VIAP Transaction handlers,

App servers, Databases, Logging...

VIAP Network, Security, Op

Systems ...

What it means Examples

Volvo Group IT Governance 2006

Volvo Group IT Governance

1. Enterprise Architecture Definition

2. Volvo Group Organization

3. Enterprise Architecture from a Volvo Group perspective

Content

Volvo Group IT Governance 2006

Volvo Group IT Governance

The management structure of IT - the Governance, Demand and Supply

To secure the IT efficiency on the Volvo Group level, IT management within the Volvo Group is carried out by three parties:

• Governance

• Demand

• Supply

Supply

VOLVO IT Management

Demand

BA/BU CIO’s

Governance

Group CIO CIO Office GIB IT&PM

The structure is described in the policy Management of IT within the Volvo Group approved by Volvo Group Executive Committee and GIB IT&PM.

Volvo Group IT Governance 2006

Volvo Group IT Governance

Volvo Group IT Organization

Trucks

Business Units 3P

Powertrain

Business Issues Prioritisations

AB Volvo GECAB Volvo GEC Business Areas

Business Units 3P

Powertrain

Parts

Information TechnologyInformation Technology

Logistics

Renault Truck

Volvo Trucks Volvo Trucks

Volvo Buses Volvo Buses

Volvo CE

Volvo Penta Volvo Penta

Volvo Aero

Volvo Aero VFSVFS

BA CIOBA CIO

Mack Trucks Mack

Trucks

BA CIOBA CIO BA CIOBA CIO BA CIOBA CIO BA CIOBA CIO BA CIOBA CIO BA CIOBA CIO BA CIOBA CIO

BU CIOBU CIO

IT Governance

Staff

IT Governance

Staff

CouncilsCouncils

Group CIO

GIB IT/PMGIB IT/PM

Logistics

Demand

Governance

Supply

Volvo Group IT Governance 2006

Volvo Group IT Governance

Governance - responsible for the management of Group IT

• Volvo Group Executive Committee appoints the Group CIO with the mandate and responsibility of leading the Group IT Governance function.

• Volvo Group IT Governance consists of the Group CIO Office and the Group Issue Board (GIB) IT&PM

Volvo Group CIO

Group CIO office Group

CIO officeGIB IT&PMGIB IT&PM

Volvo Group Executive Committee

Volvo Group IT Governance 2006

Volvo Group IT Governance

Demand - responsible for the management of the BA/BU IT functions

•A CIO (Chief Information Officer) is appointed by each BA/BU together with the Volvo Group headquarter to manage the IT demand.

The CIO is responsible to:

• ensure effective IT solutions enabling the operations, define IT strategies, architectures, policies and guidelines in alignment with the Volvo Group.

• to participate in the Group IT Governance function and to manage the relationship with Volvo IT as the Volvo Group supplier.

Business Areas

Business Units

Operational Functions within Group Headquarters

Business AreasBusiness Areas

Business UnitsBusiness Units

Operational Functions Operational Functions within Group Headquarterswithin Group Headquarters

Volvo Group IT Governance 2006

Volvo Group IT Governance

Supply - responsible for the management of Volvo IT

Volvo IT is the preferred supplier within the Volvo Group, by mandate given from the Group Executive Committee.

Volvo IT is responsible to secure:

• Deliverance of services, skills and resources needed to fulfil the IT demands from the Volvo Group • Pro-actively advise the business about opportunities to improve the utilization of IT • Pro-actively support desired harmonization and exploitation of synergies through its standard offering.

Provides IT competencies, solutions & services

Provides Provides IT competencies,IT competencies, solutions & solutions & servicesservices

Volvo Group IT Governance 2006

Volvo Group IT Governance

Enterprise Architecture Team - EAT

EAT’s task within the Volvo Group is to define and implement an Enterprise Architecture that in the best way supports the business of the Volvo Group. The Enterprise Architecture should be cost effective and cope with continuous changes.

EAT manages two program officies: • IdM Program • Volvo Group Integration office

Volvo Group IT Governance 2006

Volvo Group IT Governance

Volvo Group Integration Office

Volvo Group Integration Office’s (VGIO) task within the Volvo Group is to focus on creating a cost efficient and flexible integration environment for processes and applications.

This is done through steering and guiding principles and active support to BA/BU organisations and projects.

VGIO is subordinated to the Enterprise Architecture Team.

Volvo Group IT Governance 2006

Volvo Group IT Governance

1. Enterprise Architecture Definition

2. Volvo Group Organization

3. Enterprise Architecture from a Volvo Group perspective

Content

Volvo Group IT Governance 2006

Volvo Group IT Governance

Enterprise Architecture key benefits on high level

• A tool to reduce cost • A tool to increase revenue

Key benefits of EA to Volvo Business

IT ProjectsIT Projects Business Change

Business Change

Product Development

Strategic Planning

Enterprise Architecture Principles & Guidelines

Used in ... Contributing to

secured business targets

Volvo Group IT Governance 2006

Volvo Group IT Governance

architecture frameworks

IT/PM strategy

policies, directive, guidelines

EA review

Q&A

policy exception handling

task force handling

support project with architecture

support in BA/BU strategy work

CIO, ITG, other

Volvo employee

CIO, project

Request Process Result

CIO

CIO, project

CIO

review report

answer on question

policy exception report

problem solved

improved project architecture

business strategy

integration requestproject integration setup

EA built up using Agile work method in week iterations building on and adapting existing structures adding change increments based on Best Practise from working solutions !

EAT Processes

Volvo Group IT Governance 2006

Volvo Group IT Governance

Enterprise Architecture toolbox

EA in Business EA Framework

Supporting

EA Tools Project Control

EA Requirements Breakdown and control

Target Architecture

Architectural principles

Architectural policies and rules

Architectural audits

Reflecting EA: - As is - To be - Migration path

VGIO Volvo Group Integration Office

Supporting

Volvo Group IT Governance 2006

Volvo Group IT Governance

Concept Study Gate Development

Gate Final

Development Contract Gate

Release Gate

User Launch

Gate

Change Initiation

Gate

End Gate

Concept study Phase

Development Phase

Final Development

Phase

Industria- lisation

Phase

Deployment Phase

P re

pa ra

tio n

Vision Gate

Follow Up Report

Follow Up Phase

Pre - Study Phase

Enterprise Architecture documented as part of project work and used as basis for decisions at Gates

ISGDP the project control model used at Volvo

Volvo Group IT Governance 2006

Volvo Group IT Governance

X XX X X

X XX X

etc...

X X

X etc...

Reduce lead time in product development project

Reduce customer entry cost to higher value segment

Business Targets

Exactly meet customer specification

etc...

Drivers

• P

hy si

ca l t

o vi

rt ua

l pr

ot ot

yp in

• P

ro du

ct c

os t

m an

ag em

en t

• V

ar ia

m an

ag em

en t

• D

el iv

er y

pr ec

is io

n (t

im e,

c on

te nt

, qu

al ity

)

P D

O T D

Business processes

• Product Planning

• Product Development

• Product Launch

• Manufacturing

• Delivery Process

Functions

• D

M U

R ev

ie w

• P

ro d.

c os

t c al

to ol

• P

LM W

or k-

flo w

gi ne

• Engineering Change (Enovia)

• Product View (PTC)

• PCCT (In-house Volvo)

Realization (specifications)5

Fi ct

io us

ex am

pl es

The PISTE model The PISTE model –– step by stepstep by step

NB! Push spacebar to build lid h

Volvo Group IT Governance 2006

Volvo Group IT Governance

• Optimize • Scoping of work (within and between projects) • The reasoning behind how and why to optimize

• Make prioritizations • Within projects/programs • Between projects in portfolio • See consequences of prioritizations

• See and understand relationships • See how different abstractions (the PISTE areas) relate to and affect each other • Precisely describe and convey the logic in thought flows

• Drive the business case • Support and partly drive the business case work from early to late phases • Achieve a robust business case description as well as how to achieve the

business case

What to use PISTE for?What to use PISTE for?

Where does the PISTE model add most value?

2.1 PISTE fundamentals - Characteristics

Volvo Group IT Governance 2006

Volvo Group IT Governance

Volvo Group Target Architecture

Volvo Group IT Governance 2006

Volvo Group IT Governance

1 Conformity to standards (Standards for all parts in EA pyramid) Drive usage of open and industry standards at Volvo

2 Autonomous & loose coupling between systems Flexible subsystem and granular component setup, avoiding monoliths

3 Simplicity in solutions and work methods Clean solutions from technical, application and user perspective. Strive for simplicity in project management and system development methods (ISGDP, Agile …)

4 Strive for usage of existing Volvo services Whenever possible avoid application specific infrastructure, instead utilizing already existing services at Volvo (Databases, App servers, Brokers, Data Warehouse, Process perf..)

5 Robust solutions = asynchronous, caching ….. Active coaching of projects to achieve robust solutions securing uptime e.g right logic in right application tier, usage of good application architecture including integration solutions e.g avoiding synchronous dependencies between applications

Volvo Group Architectural Principles

Volvo Group IT Governance 2006

Volvo Group IT Governance

6 Performance focus from the start Active coaching of projects to achieve good performance in solutions from the start, e.g promoting test driven development, focus on database tuning early on, non-talkative messaging between UI and server etc.

7 Secure solutions Active coaching of projects to achieve secure solutions from the start. Correct functionality and data accessable to the right users … includes usage of Volvo decided infrastructure …

8 Good Integration solutions Control of projects to follow the policies and guidelines decided and coach them to build the integration in the right way

9 Usage of Agile work methods and design principles Control of projects to follow ISGDP and help them use it in the best way with special focus on architecture – promoting usage of Agile system development and implementation principles

10 Maintainable solutions Control of projects to deliver maintainable solutions to Maintenance

Volvo Group Architectural Principles

Volvo Group IT Governance 2006

Volvo Group IT Governance The Volvo Group Infrastructure Policy

iSeries

J2EE

SAP

.Net

SPP

Volvo Group IT Governance 2006

Volvo Group IT Governance

• The objective for the integration strategy is to:

• secure high availability and reliability in the processes • secure the business at system changes • increase speed of change • support loosely coupled systems to achieve flexibility • support holistic view on integration, application and information

architecture (not sub optimised for a single system) • reduce operation and maintenance cost in our application portfolio

Integration Office structure is an essential tool in our EA toolbox

Volvo Group IT Governance 2006

Volvo Group IT Governance

Many local initiatives and solutions developed per BA, BU, Region, ”Application family”, Individual application, Individual developer ….

Individual project/application

Application family Region BA/BU Group

Big Bulk of solutions driven within Each individual project ending up as

application specific solutions !

In some cases solutions are designed to support an application family e.g.

Framework

In some cases solutions are designed for a Region/Brand… e.g. NA, Renault

…

Initiatives to align solutions for a BA/BU e.g. VCE, Parts VTC EU

Some for specific Functions e.g. HR,Finance …

Integration is today mostly bundled as part of each application

Volvo Group IT Governance 2006

Volvo Group IT Governance

Enterprise Integration solutions available for Volvo Group, deliberate decisons when these are not used and solutions are designed on other levels …

Group

BA/BU

Region Application Family

Individual project/applicationVery few cases requiring application specific non reusable solutions

Extended policies and services to enable BA/BU specific needs

Extensions considering Region or Brand specific requirements …

Application Family solutions

Enterprise Integration Solutions with reusable integration services

supporting Business intiatives in an Agile way

Wanted to be situation is aiming for more generic integration solutoions

Volvo Group IT Governance 2006

Volvo Group IT Governance

Establishing processes for integration All IT investments must send in an Integration request

and get it approved …

Securing consistency in decisions cross Volvo Group and over time …

Volvo Group IT Governance 2006

Volvo Group IT Governance

Controlling Integration as part of overall Enterprise Architecture

Integration Approval Routine Integration management processes

Volvo Group Integration Guideline & How To Volvo Group Integration Policy

Volvo Group Policy & Dev Tracks

Reviews and Audits of solutions Support & Consultancy to Local Offices and Projects

Local Integration Offices

Available global Integration services Defined Integration platform content and rules

Usage of SCA driven by Domain ownership – Composit App Design

Volvo Group IT Governance 2006

Volvo Group IT Governance

Application external messaging This is applicable when you need to use messaging between your application and external applications inside or outside Volvo (A2A or B2B).

Sub criteria’s to consider • Critical availability • Data Transformation needs • Message routing needs • Message split and merge to many receivers/ from many sources • Security considerations e.g. special authorization rules and need for encryption,

firewalls etc. • Network considerations (reliability, throughput, backup) • Infrastructure cost • Standards (e.g. Odette or EDIFACT for B2B, OAGIS for A2A) • Support for transactions (two-phase commit) • Assured delivery • Fire-and-forget (one way asynchronous) or request/reply (two way synchronous) • ……………………………….

Sample considerations when chosing an integration solution in a project ...

Volvo Group IT Governance 2006

Volvo Group IT Governance

Driving availability of general Integration services

The Integration platform shall be separated from the

Application

Decoupling the two as much as possible

in development as well as Operation and maintenance

Aiming for a Volvo IT service center

with Global Know How and Integration platform Hotel ...

Volvo Group IT Governance 2006

Volvo Group IT Governance

Driving a domain driven service based architecture e.g PLM Service Bus

Harmonization of ways of working cross Org Borders within a certain expertise area drives

usage of common IT solutions - Best Practise Processes and

- IT solutions

A Domain Ownership – driving definition and usage of Services

will enable this .......

Volvo Group IT Governance 2006

Volvo Group IT Governance

Enterprise Architecture reviews

• A tool to reduce risk • A tool to increase control

Enterprise Architecture Reviews

Pre review Facts Questionary

Review meeting face to face

Post review report with issues and proposed actions

Post review Face to face meeting

Enterprise Architecture Review process and tools

Volvo Group CIO decides on what initiatives to

review

Review follow up

Volvo Group IT Governance 2006

Volvo Group IT Governance

Enterprise Architecture a living item

Experience in practical Enterprise Architectural work has impacted us to value • Responsiveness to change over alignment with plan

• Supporting fact based decisions over completeness in documentation

• Face to face collaboration over contracted structure

Our chosen Enterprise Architecture methodology and tools must Support the above values – setting an Agile way of working with EA