CIO Presentation to ADIESA

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CIO Presentation to ADIESA

• Mr Greg Farr
• Chief Information Officer
• 23 May 08

2
Defence Management Review

• 8.7 BCG observed that Defences ICT was
  characterised by
• inadequate systems and network functionality to
  meet business needs
• systems developed in functional silos (although
  operational capability
• development was considered adequate)
• insufficient interoperability between key
  systems and poor data management leading to
  inadequate data quality
• high levels of complexity, fragmentation,
  duplication and redundancy leading
• to systems performance and reliability issues
  and
• lack of adequate network performance and
  capacity management.

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Defence Management Review

• 8.8 The recommendations of the study were to
• enforce greater end-to-end, single point
  accountability for Defence ICT
• planning, development and delivery
• provide a more holistic customer focus,
  enterprise business-driven,
• perspective of ICT needs, priorities and
  architectures
• provide greater process, cost and performance
  measurement transparency
• and discipline and
• enable the effective implementation and
  management of the enterprise
• process owner model and the Defence capability
  management principles and
• processes.

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An ICT Operating Model was used to assess current
capabilities and future ICT requirements
Key Components of a holistic ICT Operating Model

• The ICT Strategy will shape and enable the
  Stakeholders Strategies
• Defence and ICT work together to define
  requirements and constraints
• Understand the degree to which the environment
  will impact the ICT Strategy

Enterprise architecture should

• Investment prioritisation decides how to create a
  balanced portfolio of projects
• The progress of key deliverables is monitored for
  exceptions to ensure successful delivery of the
  project portfolio
• Sponsors are held accountable to deliver project
  benefits

• Influence the direction of Defence and ICT
  strategies
• Confirm project portfolio will migrate technology
  base toward the target architectures
• Engage at a project level to ensure projects are
  designed in line with target architectures and
  technical standards

• Prioritised projects are managed end to end with
  a focus on time and on budget delivery
• Effective handover to operations is important
• Appropriate project governance
• Successful delivery provides value to the
  organisation and builds confidence in the ICT team

• Appropriate handover will set up ICT Operations
  for success
• Disciplined approach to ICT operations and
  sustainment ensures reliability
• Adherence to architecture standards helps to
  ensure robustness and minimise ongoing
  maintenance costs

• Vendors are managed with a focus on service
  delivery
• Appropriate mechanisms are in place to validate
  vendor cost effectiveness and invoice accuracy
• Formal feedback structures are in place to
  improve service delivery throughout contract life

• Making the ICT Operating model work depends on
• Effective ICT Management
• Ensuring appropriate ICT Governance
• Deploying skilled resources through the right
  organisational structures
• Measuring their performance
• Communicating goals and results to the whole
  organisation

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Completing the Defence ICT Strategy requires a
structured, business-back approach stakeholder
engagement is key
ICT Strategic Planning Approach
Stakeholder Engagement Communication
Understand Defence Strategic Imperatives
Establish the ICT Strategic Plan and Roadmap
Assess Gap between ICT Current State and Future
Vision
Determine potential Constraints and Assumptions
Assess ICT Current State
Determine the supporting Investment Plan
Define Strategic Imperatives Key Strategies
Identify Future ICT Capabilities, Outputs and
Services Required
Understand External Trends Drivers
Prepare the Risk Management Plan
Identify Strategic Projects Activities
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Once the strategic direction has been set, the
organisation should periodically review progress,
revalidate and re-align as appropriate
ICT Strategic Planning as an Iterative Process
Illustrative
Execute
Execute
Refine strategic imperatives, define strategies
and high-level implementation plan
Set Direction and Identify Imperatives
Define and refine sub-strategies
Mid-July
Mid-October
3-4 months
2 months
3-6 months
Dates
July 08 Draft Defence ICT Strategy (60)
October 08 Completion of High-Level Defence ICT
Strategy (80)
Oct/Nov 08 Completion of sub-strategies (100)
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Five workstreams to develop the Defence ICT
Strategy
Rationale
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Stakeholder Engagement and Comms
Stream 1 Business / ICT Alignment Understand
stakeholder ICT requirements and impacts on
future ICT environment Translate objectives into
considerations for prioritising ICT investments
and ensuring traceability between ICT activities
and strategic goals Stream 2 ICT Projects,
Sourcing Operations Cradle-to-grave ICT
solution considerations including how ongoing
operational considerations can be addressed
during solution design Consideration of industry
engagement options for solution development and
ongoing ICT delivery Stream 3 ICT Management,
Governance Organisation Focus on identifying
and resolving ICT governance and people
considerations, including roles, accountabilities
decision rights Stream 4 Enterprise
Architecture Focus on building understanding of
existing ICT architectures, guiding principles
and considerations for target architectures Stream
5 Stakeholder Engagement Communications Ensure
consistent approach followed across all work
streams Support and co-ordinate engagement to
align messages and prevent over-engagement
1
2
3
4
Business / ICT Alignment
ICT Projects, Sourcing Operations
ICT Mgt, Governance Org.
Enterprise Architecture
4
1
2
3
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By mid-July it is expected the ICT strategy
document will be 60 complete for input to the
Defence White Paper
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We propose to use a Wargaming workshop as a tool
to expedite the process, and test key assumptions
Wargaming
STRATEGIC INPUTS Past History and
Trends Potential Discontinuities Predetermined
Developments Critical Uncertainties
STRATEGY DEVELOPMENT Scenario Planning Trade-off
Analysis Impact Analysis Risk Assessment
SELECTED STRATEGY
Competitor Actions Customer Response Fatal
Surprises Unexpected Friction Evolving Future

• Lets participants
• Challenge assumptions
• Recalibrate perceptions
• Think the unthinkable

Simply thinking about the future more often than
not fails to convince us to change
TRADITIONAL ANALYSIS STOPS HERE
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Sourcing Strategy - Key Measures of Project
Success

• 1. Deliver an ICT sourcing strategy that creates
  substantial value for Defence
• Aligned to achieve business outcomes
• Flexible to respond to business change ie,
  facilitates rapid time-to-market
• Enables Defence to focus on what is core to the
  business of Defence
• Provides greater access to skills and innovation
• Driving cost reductions
• 2. Able to articulate the ICT sourcing strategy
  clearly to the market
• 3. Key Defence business and IT stakeholders
  understand, support and endorse the ICT sourcing
  strategy
• Bought into the process, consulted and agree with
  the outcomes
• 4. Produce a plan that can be implemented by
  Defence

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ICT sourcing strategy must address six key
questionsSourcing strategy framework and key
questions
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Five project deliverables will be created
Business case
Current state diagnostic
Industry trends and market capabilities report
IT sourcing bundling and contract model options
report
Approach to market recommendation report
3
1
2
4
5

• Indicative cost/benefit and risk assessment for
  the recommended sourcing strategy

• Current business context
• including consolidated findings from the
  stakeholder interviews
• An agreed set of enterprise ICT sourcing
  principles
• Current ICT sourcing landscape
• Current sourcing organisation, including
  procurement and governance functions
• High-level economic model

• Overview of global and local sourcing markets
• Selected case studies
• Review of key industry trends
• Industrialisation of IT service delivery
• Increasing sophistication of sourcing customers
• Review of key market capabilities with assessment
  of relative strengths and weaknesses

• Bundling trends and selected case studies
• Structural models for bundling
• Discrete bundling options
• Target bundling strategy
• Drivers of benefits and risks
• Contract model options for each bundle
• Target contract model strategy
• Drivers of benefits and risks

• Recommended sourcing strategy
• Project plan
• Key activities and milestones
• Required resourcing
• Potential issues and constraints
• Defence ability to execute
• Key procurement model implications
• Internal structures, processes, tools

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High Level Timeline