A New Framework and Approach for Federal IT Modernization David Wray

James Temple

Major Federal IT Challenges Are Still Unsolved Within Agencies

Insufficiently integrated toolsets to manage IT E2E

Inability to gain true insight into the cost and mission

value of IT and optimize

Lack of collaboration across IT functional areas creates

unplanned work, extended time to value and inability

to respond to critical issues (cyber)

Immaturity to adopt trends like cloud, mobility,

DevOps and new approaches for cyber security

Federal IT Laws and OMB Guidance instruct Agencies

“What” they must do, not “How”

Lack of a Prescriptive Plan and Standards for IT

Modernization.

Government ActionIssues/Problems

No Recommendations or guidance provided

FITARA, Federal IT Cost Commission, DCOI,

MEGABYTE Act.

FITARA gives the CIO authority over all IT Spend,

there is hope that this problem can be fix as

Agencies implement their FITARA governance plans

New Cloud Acquisition Plans, FITARA Incremental

Development and Security Laws may help

Very Little, the FEA has added little value and the

government has failed to Adopt a common IT RA

Nothing, Despite the success that other countries

have had with adopting an Open Standards

Government Leadership expects IT to change their culture and

operating model …

…while IT is still trying to act service oriented…

…highly collaborative, focusing on the outcome, integrating autonomous,

distributed capabilities…

The Fundamental Problem with Government IT

3

Traditional IT(Technology provider)

Plan

Build

Run

Industrialized IT(Service provider)

Plan Build

DeliverRun

New Tech.

IT as a digital enterprise Accelerator (Service broker)

Plan Source

OfferManage

New Style

…organized in silos, sub-optimizing

the silos, integrating processes and

tools point to point…

…let alone integrating both methodologies

Governments Major Directive: IT Modernization

ID, Align, Harden HVAs

ID FedRAMP-based Cat1Cloud Projects

GSA-driven Cloud Pilots

Cloud-Focused FAR Updates

SOC as a Service

FISMA SOPs for HVAs

FedRAMP-based Cat2/3Cloud Projects

Automated FISMA metrics and TCV

Cloud Email & Collab.

Fed. Cyber Dashboard

DCOI targets complete

Modernize NCPS & TIC

Multi-phase CDM complete

Federal Shared Services Marketplace

Multi-tenant, Multi-Cloud Management

90 DAYS 180 DAYS 1 YEAR OUT YEARS

Update NIST Guidelines

Revise FIPS 140-2

Catalog RVAs & SARs

ID Cloud-ready targets

Overhaul EIS contracts

Set CDM 3/4 phases

the clock’s ticking

Federal Laws: FITARA, MGT Act, Cyber Act(s), CDM, MEGABYTE Act, Data Act, FAR, Etc.

Compliance/Guidance: C.A.S.T.L.E Guide, Federal IT Cost Commission, OMB M15-14, DCOI, Category Management, etc.

Government IT Modernization Goal: Reduce Cost

Increasing pressure on agencies to manage cost:

FY18/19 Budget Blueprint, 2018 CPIC Guidance, Federal Cost Commission Report, ITAM GAO Report, FITARA, DCOI, MBYTE etc.

Government wide goals established for cost reductions of data center operations

Application Rationalization/Management and Transformation are finally starting to be accepted 1st step strategies for transformation to cloud. Priority will be granted to the most important HVA’s

Increasing acquisition strategies and shared services:

Category Management, Shared Services for Software Management, Cloud SINs and the C.A.S.T.L.E Guide

MGT Act – Reprogramming of IT cost savings for IT Modernization

5

6

The best way to predict the futureis to create it.Peter Drucker

The Government can drive future success by adopting an Open IT Reference Architecture that has been proven to significantly reduce cost and improve interoperability across the IT Value Chain

IT4IT™ – The Open Group IT Value ChainAdopting an IT Reference Architecture has proven to drive desired outcomes

7

A standards approach helps driving market adoption

– From inside-out focus to outside-in value thinking.

– Provide solution guidance to manage the business of IT.

– Prescribe data integration and insight via a model.

– Complement process (what) with data (how to…).

Approach

– Insufficiently integrated toolsets to manage e2e.

– Inability to gain true insight, hence inability to optimize.

– Lack of collaboration across all IT competency centers.

– Immaturity to tackle trends like cloud, mobility, DevOps.

Problem

Optimize the Business of IT

with quality Insight across the complete Value Chain, driving intelligent Decisions,

to deliver IT Services

Faster, Better, Cheaper,and with less Risk

Outcome

…while the business and IT landscape rapidly evolves

Why Do we Need IT4IT™ ?Answer: The Digital Transformation Fundamentally Changes IT, We need to adopt a new IT Operating Model

8

This shift is triggered by technology disruptions(e.g. cloud, mobility…) and can be realized by transitioning “people, process and technology.” A prescriptive recipe for IT will provide consistency to the journey.

This shift is driven by business disruptions (e.g. digital enterprise) and is forcing a new way of running IT. The journey requires transformation—a new collaborative culture, structure (operating model) along with the prescriptive design guide for service brokering in a multi-supplier environment.

Traditional IT(Technology provider)

Plan

Build

Run

Industrialized IT(Service provider)

Plan Build

DeliverRun

New Tech.

IT as a digital enterprise Accelerator (Service broker)

Plan Source

OfferManage

New Style

IT4IT™ - What it is

IT4IT™, an evolving Open Group standard, provides a vendor neutral, technology agnostic blueprint for managing the Business of IT, enabling insight for continuous improvement.

IT4IT™ provides the capabilities for managing the business of IT and will enable IT execution across the entire Value Chain in a better, faster, cheaper way with less risk.

IT4IT™ is industry agnostic solving the same problems for everyone. It does not intend to compete with other frameworks/standards (e.g. ITIL, ISO, CoBit…) but rather complement.

IT4IT™ is designed to bridge the gap between existing landscapes and the modern IT in the evolving digital enterprise.

9

IT4IT™ is a trademark of The Open Group

IT4IT™ is an IT Open Industry StandardAligns very well with our new government directive to run IT like a business

Manage IT as an end-to-end value chain

It’s about the end user consumption experience

It’s not about the technology!

Tightly manage the data and functions across the service life cycle

This is an industry first!

10

IT Value Chain IT Reference Architecture“normative”“guidance”

describes the structure of IT management prescribes the functional & information architecture

IT4IT™ is a trademark of The Open Group

Efficiency

&

AgilityFinance & Assets

Intelligence & Reporting

Resource & Project

Governance, Risk & Compliance

Sourcing & Vendor

IT V

alu

e C

hain

Plan Build Deliver Run

Service Model Backbone

Goals

IT4IT™ - How it Complements Frameworks/StandardsAdoption of Standards for Functionality, Data and Metrics will drive Interoperability

11

COBIT

IT4

IT R

efer

ence

Imp

lem

enta

tio

ns

(ven

do

r-sp

ecif

ic)

DeliverPlan Build Run

ITIL

TOGAF, PRINCE2, PMI, …

Pro

cess

es

SystemsIT4IT Reference Architecture Level 1 V.2.1

IT4IT™ is a trademark of The Open Group

FEA Overview + IT4IT Intersections

12

IT4IT provides a prescriptive, measurable plan to assure service delivery

S2P Improves resource capacity planningR2F improves resource utilization

IT4IT provides the IT functional model and integration framework

IT4IT is a standard with references to many others

FEA Reference Architecture & IT4IT Are Better Together

13

Requirement Component

Requirement to Deploy

1:n

n:1

PortfolioBacklog

Item

Portfolio BacklogItem (rationalized/

Prioritized)

Competency(availability)

Assets(availability)

Policy

Portfolio Backlog Item

Policy

Requirement

1:n

ConceptualService

Blueprint

PortfolioBacklog

Item

Conceptual Service

Conceptual Service

Blueprint

n:m

Project Component

IT Initiative

Scope Agreement

1:n Scope Agreement

Service Design Component

Logical Service Blueprint1:n

Portfolio Demand

Component

Service Portfolio

Component

n:m

Business Process

Portfolio Backlog Item

n:1Policy

Component

Proposal

Component

Requirement to Deploy

Requirement to Deploy

IT Asset Management

Business

Strategy

Labor Management

Problem Component

Problem, Known ErrorDetect to Correct

Service Architecture

Enterprise Architecture

Component

n:m

1:1

Portfolio Backlog

Supportive Function

IT Investment Portfolio

Component

ITFM Supportive Function

IT Budget

n:m

n:1

Cost Modeling Component

ITFM Supportive Function

IT Cost Modeln:1

Standard IT KPI’s

FEA and IT4IT presents a Harmonization Opportunity

FITARA Requirements Align very well with IT4IT Value Streams

14

To fully comply with the spirit and tenets of FITARA Agencies must manage IT as a Service.

Strategy to Portfolio

– Align strategy

– Rationalize portfolio

– Prioritize backlog

– Manage investment

Requirement to Deploy

– Plan & design

– Develop

– Test

– Deploy

Request to Fulfill

– Define & publish

– Subscribe

– Fulfill

– Measure

Detect to Correct

– Detect

– Diagnose

– Change

– Resolve

FITARA Goals

1. Full-life cycle inventory & asset management2. Complete/Actionable/Sustainable EA3. Optimize their IT portfolio based on mission priorities & cost4. Manage, track and report on IT portfolio savings5. Implement Agile best practices and improve time to value

6. Improve risk management and cyber situational awareness7. Modernize IT Infrastructure & reduce cost

(Data center automation & Consolidation - DCOI)8. Streamline/implement operational efficiencies, automate, track

and reduce the cost/time to respond to IT outages, including cyber events

2 3 4 5 6 627 4 78 81 1 172 4

Full-Life Cycle inventory & Asset management is a foundational capability required by all IT value streams as well as many common FITARA/OMB requirements (DCOI, CDM, FISMA, MBYTE Act, Category Management, etc.)

1 6 7 8 2

The Evolving Cultural Shift of Adopting a new IT Operating Model

15

Operating Model Traditional Digital

Processes Competency focused processes, primarily operations, service and application mgmt as separate, different methodologies, integration of related process steps p2p

IT as end-to-end integrated value chain, strengthening IT strategy and portfolio mgmt, adding the consumption based delivery across deployment models

KPIs Sub-optimizing the outcome of the competency, driving silo behavior

Balancing the competency excellence with rewarding the outcome of the value chain

People/ Organization

Technology, process or competency silos, seeing themselves as the center of IT, collaboration on project mgmt basis

See themselves as peer contributor to the outcome of the value chain, understanding the added value of shared responsibility

Technology/ Tools

Tool landscape typically one to one implementation of process landscape, including p2p integrations, tool excellence wins over portfolio excellence

Implementing the IT tool landscape as a SOA systems fabric of well defined, harmonized, and integrated micro-services

Data/ Information

Focused on individual competence, reinforcing silo KPIs, no transparency and consistency beyond silo boundaries

Delivering end-to-end data transparency,consistency and traceability along the IT value chain

IT4ITTM Is not the Silver Bullet but a Critical Enabler

16

Traditional IT(Technology provider)

Plan

Build

Run

Industrialized IT(Service provider)

Plan Build

DeliverRun

New Tech.

IT as a digital enterprise Accelerator (Service broker)

Plan Source

OfferManage

New Style

1. Rationalize current IT2. Determine desired service model3. Develop roadmap

1. Rationalize current culture2. Develop value chain and KPIs3. Manage and govern change

Integrate different modes

Micro Focus perspective of the Value Chain model

Micro Focus perspective of the

Reference Architecture

Standards driving market adoption

Thank You,

James Temple is now going to provide some examples of customer implementations and success stories

Journey to Value to New Style IT with IT4ITCustomer Reference Stories

Operating model for the new style of ITDesigned for leveraging technology and paradigm shifts

Micro Focus Government Solution leads the way Why start the value chain journey today?

– Created by practitioners and architects from enterprise customers, partners, and vendors

– Moving under the umbrella of The Open Group in 2014

Credible

Reduce cost and increase value by acting– Insightful: Gain value with better decision

data– Collaborative: Faster delivery with cross-

domain agility– Optimized: Unleash IT innovation across a

prescriptive IT value chain

Return on

Investment

StrategicThought leadership for IT innovation– Transform to the new style of IT– A value chain & reference architecture for IT

Leveraging business value chain successWhere integrated IT value streams deliver higher value than silos

Efficiency

&

AgilityFinance & Assets

Intelligence & Reporting

Resource & Project

Governance, Risk & Compliance

Sourcing & Vendor

IT V

alu

e C

ha

inPlan Build Deliver Run

Reference Architecture

IT Value Chain

opengroup.org/IT4IT 01-Jun-2016

End-to-end integrated reference architecture

Anticipate, prevent, and

resolve production

issues.

Detect

to Correct

Enable seamless IT service

consumption and monitor its

usage.

Request

to Fulfill

Source what the business needs, and

when it wants it.

Requirement

to Deploy

Align the IT portfolio with the business strategy and make sound investments.

Strategy

to Portfolio

For more information: hpe.com/software/it4it and it4it@hpe.com

ConceptualService Model

LogicalService Model

PhysicalService Model

Find information on IT4IT at: hpe.com/software/it4itInform

– Solutions and integrations aligned to IT4IT on our portal at: softwaresupport.hpe.com/km/KM01702710

– Services around IT4IT at: www8.hp.com/us/en/software-solutions/it4it-value-chain/services.html

– Engage with the experts at: hpe.com/forum/it4it– MFGS IT4IT value stream reference implementations

come with detailed step-by-step configuration guides at: softwaresupport.hpe.com/km/KM01286332

Act

ThinkMicro Focus co-becoming an Open Group industry standard in 2015.

Plan Build Deliver Run

IT4IT Success Stories

• Simplified complex IT process and tool landscape

• Improved governance

• Reduced number of IT vendors

Shell

• Bridged both IT and business silos

• Enabled genuine collaboration on business function automation

• Better time to market

Rabobank

• Applied Value Chain thinking to IT management.

• Increased automation in IT operations

Exxon Mobil

• Cut vendor management overhead

• Reduced IT spend

• Retired ~130 applications

Safeway

• Moved to shorter planning cycles

• Introduced continuous build and deploy

• Managing and controlling service consumption

FedEx

Journeys at WorkExxon Mobil - Detect-to-Correct

• Applied Value Chain thinking to IT management.

• Increased automation in IT operations• Above benchmark IT outages of core business

services

The Business Needs• 1:1 interviews with key stakeholders in each Tower

to gain their perspective on existing processes and any interdependencies

• Demonstrator and Process Workshops for selected Use Cases

• Visualize the current processes and brainstorm new approaches to derive greater value

• Development of a customized ExxonMobil IT operations center blueprint and roadmap

The Journey

• An executable blueprint for operational decision making to improve IT customer experience for lines of business

• Identified ways to proactively detect issues and take actions to correct them before impacting the business

• Faster resolution of IT incidents through simplified, streamlined and automated processes and tools

The Outcome• Long mean-time-to-repair and challenges with

coordination of resolving IT incidents

• Rising cost due to sprawl and no end to end view of IT infrastructure and applications

• Inefficient staffing, skills distribution, processes and technology for continuous improvement

The Challenge

Journeys at WorkSafeway – Strategy to Portfolio

• Merger• Tools Rationalization• Competition

The Business Needs• 1:1 interviews with key stakeholders in each Tower

to gain their perspective on existing processes and any interdependencies

• Radical movement to optimize cost, processes and IT efficiencies

• Development a method for improving standardization

• Enablement of process, application and technology rationalization

The Journey

• Created a Reference Architecture for tools rationalization using IT4IT

• Mapped exiting tools to Reference Architecture to understand the tools overlap

• Created Safeway new tools architecture with combination of OpenSource and Licensed Software

The Outcome• Shadow IT• Organizational Fear• Change Resistance• Organizational Disruption• Financial Impact

The Challenge

From Reactive to Proactive Service Management

Journeys at WorkFedEx – (Strategy to Portfolio and Requirement to Deploy)

• Moved to shorter planning cycles• Introduced continuous build and deploy• Managing and controlling service consumption

The Business Needs• Develop an Multi-Year Plan • Develop Architecture that were required for the

Multi-Year Plan using IT4IT models• Develop financials and staffing model to support the

plan• Develop a Governance model• Use Agile Framework to manage requirements and

the project• Develop an Service Catalog to manage requests

The Journey

• Created an Portfolio Management system to manage the Multi-Year Plan

• The Portfolio Management system also manage the Demand, funding for projects and staffing commitments

• Enable Continuous build, testing and deployment (DevOps Model)

• Implemented an Service Catalog

The Outcome• Not understanding Enterprise Objectives• Could not handle Requests or Demands• Improve financial goals

The Challenge

Technology Focus

Systems Focus

Services Focus

Agility

Focus

Value

FocusVirtualized

Dedicated

Shared

Automated

Consumer

Support multi-mode service delivery

Think BIG – start small – Iterate Advise, Transform, Manage

Becoming Consumer Value Centric

IT4IT™ is a trademark of The Open Group http://opengroup.org Learn more at: hp.com/go/it4it

Confirm value

Start

Agile delivery

Prove realized

value

Validate customer priorities

Journey to value

experience

Traditional IT

Plan

Build

Run

Industrialized IT

Plan Build

DeliverRun

IT for Digital Enterprise

Plan Source

OfferManage

Advise

Agile Discovery

Agile Planning

Transform

Agile Delivery

IT Management Solutions

Manage

Education & Training

Solution Management

Tactical improvement

Strategic alignment

Detect to CorrectStrategy to Portfolio Requirement to Deploy Request to Fulfill

Service Broker

DevOps

Cloud

15-Apr-2016

Automate – Orchestrate – Transform to Hybrid IT

Journey to Value

"We knew what technology was available, and we figured out how little bits of it would fit within the area where we wanted to be. There was not one giant step that we took at any point; there were a lot of little steps.” Bill Hewlett

Thank You