Shaun McLaurin's presentation from OTN Architect Day in Pasadena, July 9, 2009.
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1. <Insert Picture Here>
Rationalizing an Enterprise IT Architecture
Shaun McLaurin
Insight Program Director – North American Technology Organization
2. Business & IT Challenges
IT Environment History Resulting in
• Evolved through corporate, • Organizational and Information
organizational and technology silos
changes • Complex IT environment, multiple
• Mergers & Acquisitions skill sets, costly to operate
• Adapted to new business processes • Inflexible IT infrastructure difficult
• Adhere to layers of regulatory (and risky) to modify
requirements • Redundant application systems
• Integrate ‘best of breed’ applications and business processes
• Account for LOB IT ‘initiatives’ • Multiple versions of business data
3. It’s Expensive to Have Bad Information
Ellison’s Law
“The value of information increases exponentially as
fragmentation is reduced.”
4. Reinvent IT Economics
An architect’s dilemma
Strategic Savings
Investment
Annual
Strategic
IT Spend Investment
Infrastructure
IT Spending and Demand Survey
80% Maintenance Infrastructure
20% New Projects
5. IT Spend for World-Class Performers is
Comparable to Their Peers…
…But, they spend it differently
6. World-Class Performers Reduce Complexity
Characteristics How Do They Do It?
• They spend 18% less on IT • Better IT Vendor Management
• They require 36% fewer IT workers • 5% fewer hardware vendors
• They need 29% fewer apps • 29% less contractor services
• 65% fewer software suppliers
• They finish 91% of all projects to
spec, on time and on budget • Standardized best practices and
• 100% have their top IT exec on the good architecture
senior management committee • Simplification and standardization
• Higher levels of process discipline
• Improved overall alignment with
business objectives.
• Intelligent Outsourcing
• Empowered change agent
13. The Global Transformation Payoff for Oracle
Ability to drive profitable, sustainable growth
We grow our operating cash flow 3 times faster than five years ago.
Safra Catz, CFO
Oracle Q3 Earnings Report, March 2008
(40.8% in 2007) 45%
40%
35%
30%
Percentage
Operating Margin % 25%
20%
15%
10%
(14.4% in 1993)
5%
0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Operating Margin %
Note: Figures based on non-GAAP results. GAAP to non-GAAP reconciliations are available on the
Oracle Investor Relations website at www.oracle.com/investor.
Achieved through global processes, consolidation, simplification and shared services
22. Rationalization Deliverables
Key findings and conclusions including targeted analyses of the
Current State Gap & current state environment and its key performance gaps and
Opportunity Analyses opportunities
Target architecture and process model that defines the
applications, services, information and infrastructure required to
Future State Vision satisfy key business goals and requirements
High level, multi track program of phased actions, initiatives and
implementations that provides a framework for planning and
High Level Roadmap managing the future state migration
Identification of potential cost savings and other benefits to be
Targeted Benefits derived from the future state
26. Accelerate Transformation Benefits
Leverage Integration and BI platforms
End-to-end visibility
Unified workplace
Compliance Composite business processes
Composite Business Process
Composite Business Process
and business analytics accelerate
business results
• Deploy standardized business processes
over legacy application silos using
Application & Data Silos standards-based services.
No single source of truth
Redundant applications • Improve process management and controls
Incomplete and conflicting data enforcement.
Labor intensive compliance
• Improve visibility through common
Long-term goal: Standardize processes, consolidate enterprise information model.
redundant applications and eliminate data silos
• Improve business analytics using out-of-
the-box analytics capabilities.
• Publish key performance indicators
Common Enterprise Information Model
• Shelter users from changes to underlying
Common view of information
systems as they are consolidated over time.
Key Performance Indicators
Business reporting and analytics
Compliance reporting
27. Enterprise Software Architecture
Customers Employees Partners
Applications Documents
User
Interaction
Analytics Collaboration
Composite Industry Processes
3rd Party Legacy
Applications Applications Applications
ERP HCM CRM Industries
Business Intelligence Security &
Integration & Analytics Compliance
Technology Existing
Technology
Data & Scale & Application Enterprise
Content Continuity Development Management
28. Architect a More Competitive Enterprise
• Mergers & Acquisitions : Guide
strategic fit assessment and post-merger
consolidation
• Business Processes : Provide insights
into gaps or redundancies ; Enhance
customer service
• Compliance & Audit : Facilitate
transparency across applications ;
Manage users & applications life-cycle
management
• Enterprise Architecture : Consolidated
technical infrastructure ; Reduced costs &
Increase agility
• Vendor Management : Negotiate terms ;
Risk Reduction