Dr. Richard Frost

1. Driving Global IT Performance with the CMMI for Acquisition Dr. Richard Frost Global Director, Systems Development and Program Management November 18 2008Rich.Frost@gm.com

2. IT Executives must continuously drive Innovation, Efficiency, and Security in their business and agency IT Executives must consciously manage the balance of their internal staff and supplier sourcing GM drives innovation and performance with and Integrated processes based on the CMMI-ACQ

3. GM builds “Gotta-have” Cars and Trucks 2

4. GM Continues to Drive Innovation IS&S drives technology for our business 3

5. GM is a complex global business • About 260,000 employees worldwide • Over $181 billion revenue in 2007 • Products sold in more than 200 countries • Sold more than 9 million cars and trucks in 2007 • 181 Manufacturing facilities in 35 countries • 14,000+ dealers • $90 billion of direct materials purchased annually • Approximately 5,000 parts in each vehicle GM is 24x7 – we are always working somewhere. 4

6. GM IS&S: Strategic Hub for Technology • Enable Innovation Globally • Drive Simplification, Standardization and Collaboration 5

7. IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier Evolution of IT and General Motors First Generation 1984-1996 Common Enterprise Management Processes Second Generation 1996-2003 • Third Generation Goals: • Increase agility • Build the best partnership with the business • Quickly take advantage of new technologies • Assure the highest quality of our systems Third Generation 2003 6

8. GM leveraged CMMI for Development • Maturity Model for software development organizations • Chartered by US government to address software failure • Developed by the Software Engineering Institute at CMU • Provides proven best practices and growth path • Provides standard independent appraisals and ratings Capability Maturity Model® Integration 7

9. IT Already Sources most of their Budget 2007 Global IT Spend 75% of every IT dollar is spent on Acquisition 8 Source: Forrester

10. Exsiting Models Focused on the Developer – not the ‘Customer’ • CMM, CMMI • SPICE • IEEE • COBIT • ITIL • General Motors partnered with: • Software Engineering Institute • US Department of Defense • NASA • Industry Leading Suppliers • To develop a maturity model for the Customers of IT Sourcing Findings: • Enterprises were acquiring most systems • Models focused on development and operation • Firms were marketed proprietary models • Industry was looking for a ‘customer’ model 9

11. Why is Acquisition Different? In-House Development Acquisition Requirements Requirements Build RFP GAP Build • Inherent business knowledge and relationships • Willingness to accept ambiguity and risk • Consistent IT project team • Flexibility with scheduling • Frequent communication • Changes are easy • Time lag – business change • Limited supplier knowledge • Poor requirements communication • Rigid requirements (whatever is in the contract) • Limited customer contact • Drive to deliverable signoff

12. CMMI for Acquisition (CMMI-ACQ) • Maturity Model for organizations that acquire systems • Leverages best practices of industry and CMMI • Helps customers ensure that they retain core competencies to be successful when they source • Drives maturity for the combined acquirer/supplier team Acquirer CMMI-ACQ Supplier CMMI-DEV http://www.sei.cmu.edu/publications/documents/07.reports/07tr017.html 11

13. Acquirer & Supplier Maturity Required • Success depends maturity of suppliers and the customers! • Data reveals: customers maturity significantly affects success Technical & Management Skill 12

14. Levels of the CMMI®-ACQ • Provides a proven framework of capabilities and maturity • Provides a growth path to improve • Capabilities build at each layer to improve results Level 5 Optimizing Continuous Process Improvement Level 4 Quantitatively Managed Quantitative Management Level 3 Defined Acquisition Process Standardization Level 2 Managed Basic AcquisitionProject Management Level 1 Initial or Performing Unfocused Adapted from a chart by the Software Engineering Institute, Carnegie Mellon University 13

15. CMMI for Acquisition • A structured framework to drive the capabilities required to be an effective Customer of IT • Defines maturity levels and appraisals to guide improvement Solicitation & Supplier Agreement Development AgreementManagement CMMI Model Framework (CMF) Acquisition Requirements Development Acquisition Validation CMMI Model Framework (CMF) 16 Project, Organizational, and Support Process Areas AcquisitionTechnical Management Acquisition Verification 14

16. Implementing CMMI-ACQ for GM • Implementing the model required structural change and global standardization • Organizational Structure • Common Global Processes • Common Service Agreements • Continuous Improvement Structure Processes Contracts 15

17. GM Acquisition Competencies • Requirements: Partnership and knowledge of business • Architecture: Own and drive your technology and reuse • Project Management: Plan, manage, and drive results • Contract Management: Own the engagement terms Requirements Architecture Project Management Contract Management 16

18. Results • CMMI-ACQ has driven substantial benefits for GM • Strong business knowledge and partnership • Control of Strategy, Architecture, and Project Management • Standardized project and supplier management - Globally • Less time “RFP-ing” – more time solving IT problems • Very high project delivery and success 17

19. Thank you! Chevrolet GMC Cadillac Saturn Saab Holden Vauxhall Opel Hummer Pontiac Daewoo Buick 1 in every 6 cars in the world is GM Dr. Richard Frost Global Director Systems Development and Program Management rich.frost@gm.com