Organization of IT at Anheuser-Busch

1. Organization of IT at Anheuser-Busch Organization of IT at Anheuser-Busch

2. Company Overview Being a large publicly traded company with annual gross sales totaling over $16 Billion, and net income of just over $2 Billion in 20031, Anheuser-Busch is a huge economic force in America. Anheuser-Busch has several large divisions and subsidiaries: a world-class brewery, a renowned media group, successful theme parks, and many other ventures that make it a diverse company with a high demand and need for integration of IT with its business services. Source: Anheuser-Busch Companies, “2003 Annual Report” http://www.anheuserbusch.com/annual/2003/complete_ar.pdf, viewed October 3, 2004.

3. Company Overview • Headcount of entire organization - 23,216 people1 • Gross Sales - $16.3 Billion1 • Net Income - $2 Billion1 • Worldwide Sales Volume - 109.8 million barrels2 • Domestic Market Share - 49.2%2 1. Source: Anheuser-Busch Companies, “2003 Annual Report” http://www.anheuserbusch.com/annual/2003/complete_ar.pdf, viewed October 3, 2004. 2. Source: Anheuser-Busch Companies, “Anheuser-Busch At A Glance” http://www.anheuserbusch.com/publications/AtaGlance03.pdf, viewed October 3, 2004.

4. Interviewee Robert J. Byrne - Vice President and Chief Information Officer Responsibilities Data Center Operations Network and Communications Services Desktop Services Application and Web Development Support and Maintenance for AB Applications Worldwide Information Technology Services IT Performance Management Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies Interviewed via email, September 28 - October 4, 2004.

5. Data Center Operations: includes all centralized information processing for the company Network & Communication Services: includes all phones, pagers, e-mail, network and all other communication services Application Development: Supply chain & AB International systems Sales & marketing systems Finance & HR systems Procurement & maintenance systems Busch Entertainment & Corporation systems AB Packaging group systems Information Technology Services: Financial services for the organization Information management & retention for the corp. Information protection & IT disaster recovery Technology Development: includes Enterprise Architecture, New Technologies integration, services acquisition for IT including contract labor IT Performance Management: Internal Business Partner Planning for IT inventories and IT standards IT communications Process Improvement and Deployment Training and Management Development HR for the IT division Responsibilities Defined Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies Interviewed via email, September 28 - October 4, 2004.

6. Report Structure Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies Interviewed via email, September 28 - October 4, 2004.

7. Management Structure • Meet with each direct report privately for 30 minutes each week to discuss key projects and departmental issues • Conduct 3 to 4-hour staff meetings with the entire group 3 times a month • During the staff meetings the team reviews detail reports on company sales, theme park attendance, major IT projects, metrics, and major issues of universal interest • The IT project presentations are formal and include details on timelines, costs, ROI calculations, key issues, etc Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies Interviewed via email, September 28 - October 4, 2004.

8. C-Level Executives • Review major IT projects on a continual basis, via capital approval boards, budget reviews, annual strategy planning reviews and IT project portfolio reviews • Key points of interest include timelines, costs, ROI calculations, key issues, etc. • Each officer in the corporation is involved in the IT function since the IT systems are key to the success of their business functions • Board approval presentations are formal • Project portfolio reviews are informal in a round table-type setting • As part of the Finance Division providing key financial and business services to every department within company, the IT organization is directly involved in the financial decisions of AB. Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies Interviewed via email, September 28 - October 4, 2004.

9. IT Budget Development • Joint effort between IT and their business partner customers • The business units prioritize new projects based on ROI and other business requirements • IT costs out new project development as well as annual support and maintenance expenses • Exact budget for company is confidential but in general terms, it runs close to 1.5% of net company sales • Total company revenues in 2003 were $16.3 Billion • On average, the investment in IT has increased in the 3% to 5% range each year during the past 8 years • A general breakdown of the IT budget is as follows • 48% Application Development • 27% Operations (Desktop, Data Center, and Network Services) • 25% General and Administrative Expenses including building rent and internal IT operations expenses Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies Interviewed via email, September 28 - October 4, 2004.

10. Headcount • Headcount of entire organization - 23,216 people • Current IT headcount including AB employees and contract personnel is roughly 1,200 • IT staff represents approximately 5% of total employees Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies Interviewed via email, September 28 - October 4, 2004.

11. Project Pre-funding Review • Representative of information reviewed by CIO and direct report • Presented to Business Units after Pre-funding Review Approval • Project implemented after Business Unit Approval Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies Interviewed via email, September 28 - October 4, 2004.

12. Internal Presentation Integrated Learning Reporting CIO Pre-Funding ReviewChampion: Training Department Who Pays: Training Department Stakeholders: Training Department, Outside Third Parties Funding: company confidential Timeframe: 200X Project Manager: Individual within IT department August 200X The following slides are an internal presentation from Anheuser-Busch. Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies. Obtained via email, October 4, 2004.

13. Executive Summary Project Manager: Operations Project Manager: Business Strategy: Increase Service Level Business Unit: Training department • Project Scope & Objectives: • Situation: • There is currently no effective method to evaluate training activity (registrations, completions, etc) provided by the department. A robust reporting tool is necessary to measure compliance with the training component of the agreement with the third parties. • IT will provide the requesting customers with the ability to access standard and ad-hoc training activity reports. • Scope/Objectives: • Integrate information from multiple training systems into a data repository. • Build a custom web based application for standard training activity reports. • Use Business Objects (WebI) to provide the customer with flexible ad-hoc reports. • Migrate existing training activity reports to the new system. • Benefits: • Maximize benefits of training spend by optimizing course offerings. • Increased training participation levels. • Improved reporting capabilities for personnel and the independent third parties. • Increase AB’s ability to measure completing the training component of the agreement with the third parties. • Reduced maintenance and new development costs for training activity reports. • Graphing web service components that could potentially be made available enterprise wide.

14. Executive Summary • Roles & Responsibilities: • HR Systems - Project Management • HR Systems – Domain Architect • HR Systems – Data Architect • Operations - Project Management • Information Protection • Enterprise Operations Management • Enterprise Applications Management – AB-UP mentor • Database Administration • Network Services • Training Department • Key Requirements (Business): • Standard training activity reports for • Training department • Field Sales • Independent third parties • Ad-hoc wholesaler training activity reports for • Training department • Initial Risks: • Scope management. • Securing the appropriate internal resources from MIS Operations areas. • Tight schedule expectations since the business sponsor wants the project completed in 200X. • Security control for external access of internal data. • Web Services is an existing but emerging technology to the company and will require support by Enterprise Application Management and Information Protection. • Summary of Project Costs: (Not available for external use) • AD Labor • OPS Labor • Total Development • Capital • Grand Total Tentative Schedule: To be completed by year-end 200X

15. Executive Summary Application Architecture Context Diagram The detailed Architecture Context Diagram is not available externally. Legend Retiring Existing Future New/Changing

16. Table of Contents • 1 Introduction • 1.1 Business Problems/Opportunities • 1.2 Summary Project Recommendations • 2 Scope & Objectives • 2.1 Business Objectives • 2.2 Project Dependencies • 2.3 Initial Project Scope • 3 Project Approach • 3.1 Proposed Project Approach/Delivery Strategy • 3.1.1 Detailed Deliverables • 3.1.2 Milestones and Impact • 3.2 Constraints • 3.3 Assumptions • 3.4 Risk Assessment and Risk Management • 3.5 Governing Agreement

17. Table of Contents • 4 Roles and Responsibilities • 5 Initial Project Plan and Estimated Costs and Schedule • 5.1 Funding Request Breakdown • 5.1.1 Project Cost Detail • 5.2 Project Timeline • 5.3 Business Benefit(s) • 5.4 Measures • 5.5 Change Control • 6 Approval

18. 1.1 Business Problems/Opportunities Business Problem There is currently no effective method to evaluate courses provided by the Training Department. There is a requirement to create a production system to report against current and historical Integrated Learning system training data. This system needs to be supportable and delivered to internal personnel and to the appropriate third parties. The new reporting system will need to be flexible and scalable, as the users have access to the data, more requirements for reports will be generated. Training Department Business Needs Improved reporting capabilities to allow the department to analyze data from multiple source systems. Based on this combined data, the training department will: • Evaluate course participation and make business decisions for future course offerings. • Reduce costs by optimizing course offerings. • Evaluate participation levels to increase participation. • Evaluate the participation for individual courses based on the media type (satellite, web based training or live classroom) to determine the most effective delivery mechanism. • Evaluate role based training requirements and summarized participation information to determine frequency courses need to be offered. • Determine an individual course’s cost effectiveness (compare the cost of producing/providing a course against the number of break-even course participants). ·     Business Drivers·     • The current agreement requires tracking of third party certifications. • Even though training is not required for certification, the training courses are designed to increase the skill sets necessary for certification. • Improved reporting capabilities for appropriate third parties to track individual staff’s training. • Appropriate third parties can use this information to determine what courses their personnel need.

19. 1.2 Summary Project Recommendations IT evaluated multiple conceptual design approaches based on the business requirements and appropriate infrastructure required to support the business requirements. Based on this analysis, the following recommendation was made: • A custom web based application will support the independent third parties personnel accessing the system from the Internet via the secured extranet environment. • The custom internet application would be replicated internally within the intranet to provide the same reports to the Field Sales and Training Department personnel. • XXXXXXXXXX would be used to provide ad-hoc reporting capabilities to the Training Department.

20. 2.1 Business Objectives Objectives • Deliver a supportable, flexible, and maintainable Interactive Learning reporting system that is accessible to internal personnel and appropriate third parties. • Provide training related reporting capabilities that is not currently available. • Provide information that will help the company make better business decisions relating to training.

21. 2.2 Project Dependencies Other Projects / Initiatives Dependent on the Project • None

22. 2.3 Initial Project Scope In Scope: • Integrate information from multiple systems including the Interactive Distance Learning system, the educational management system that includes registrations, and the enterprise data warehouse so that the information may be accessed for training related reports. • Build a custom web based application used to request training related reports. • Training Department and Field Services will access via the intranet • Third parties will access via the secured extranet connection. • Create a standard user interface for the custom web based application with business logic to filter options based on user role. • Existing reports will be available in the new system. Third Party ParticipationTraining Administration • Login Site Participation * Web Based Training Participation Details • Satellite Registration * Satellite Registrations by Time and Course • Satellite Completions * Course Attendance by Media Type • Students Logged In * Course Utilization • Student Satellite Registration • Student Satellite Completions • Ad-hoc reporting capabilities for Training Department to run reports to evaluate training data and define future reporting requirements. • Begin analysis to define additional training related data that will be accessed for future training related reports. Out of Scope: • Integration with other training system replacements or enhancements.

23. 3.1 Proposed Project Approach/Delivery Strategy The following tasks will be used to implement the new reporting system. • Participate in all standard QA related reviews and audits. • Finalize application and infrastructure design. • Design, develop, test, implement and load new reporting system database. • With the participation of EAM, develop, test, and implement new web services that will be created to support passing data between the new database and the custom application. • Develop, test, and implement custom web based application for accessing training related reports. • Develop ad-hoc reporting capabilities for the Training Department. • Test reporting results. • Implement new application(s) in production. • Document requirements for future phases including new reports and future learning data source systems.

24. 3.1.1 Detailed Deliverables The project deliverables will include:. • Web based application that the appropriate third parties, the Training Department, and Field Sales can use to access training related reports. • XXXXXX reporting capabilities for the Training Department to run ad-hoc reports to evaluate training data and define future reporting requirements. • Existing reports that will be available in the new system: • Login Site Participation - Web Based Training Participation Details • Satellite Registrations - Satellite Registrations by Time and Course • Satellite Completions - Course Attendance by Media Type • Students Logged In - Course Utilization • Student Satellite Registrations • Student Satellite Completions The project deliverables from each of the 4 phases are identified below. • Inception • Project Plan • Use Case Model Survey • Glossary • Non-functional requirements • Elaboration • Iteration plan • Use Case Specifications • Skeletal Class Diagram • Key Sequence or Collaboration Diagrams • Logical Data Model • Change Orders and Decisions • Construction • Source Code and Related Unit Tests • Implementation Plan • Acceptance Test Plans • Transition • Acceptance Test Results • Application or Website Usage Statistics • User Satisfaction Surveys

25. 3.1.2 Milestones & Impact Project Milestones & Estimated Completion Organizational Impact • The Training Department and Field Sales will be able to make training business decisions based on related training reports. • The Training Department will have the ability to create their own ad-hoc reports; therefore, the support costs for these reports will be minimized and potentially eliminated. • The Application Development support team will reduce the amount of work to create new custom training related report requests; therefore, the support costs will eventually be reduced.

26. 3.2 Constraints • Resources • Availability for timely internal IT resources to define strategy, technical resources for development, and Information Protection risk assessment of technical solution • Customer involvement and commitment throughout project • Technical • Web Services is an existing but new technology that will require support by EAM and IP. • Time • Project must be completed in 200X. • Budgetary • Project dependent on budgetary approval.

27. 3.3 Assumptions • Reporting requirements are summary in nature and therefore do not require real-time updates to the reporting system. The data used to create the reports will be deleted nightly and reloaded from the source systems. • The reporting application will use the existing user profile information to automatically filter reports based on the user’s role. • Three data sources have been identified to supply the data for reporting: • Interactive Distance Learning system that contains satellite course information • Education Management System that contains registrations and completions for all appropriate third party related courses • Enterprise Data Warehouse that contains organizational and territorial data about appropriate third parties and field sales representatives • Continued development of existing report system is on-hold while the new system is designed and developed. • Appropriate development resources will be available for this project

28. 3.4 Risk Assessment & Risk Management Risk Management

29. 3.5 Governing Agreements The approved Development Agreement will be used as the governing agreement for this project.

30. 4 Roles & Responsibilities

31. 5.1 Funding Breakdown • Total Estimated Project Costs: • Expense: $ • Support: $ • Capital: $ • Cost of the project will be funded as follows:

32. 5.2 Project Timeline 20XX 20XX Qtr 3 Qtr 4 Jul Aug Sep Oct Nov Dec • Develop Agreement • Project Funding • Technical Approvals • Ramp Up & Resource Acquisition Project Preparation • Application Architecture Design Inception • Database logical & physical data model • Web services • Connectivity to database • Graphics • Custom application • User Interfaces Elaboration Construction/Testing Implementation

33. 5.3 Business Benefits Benefits • Allow appropriate third parties access to training related reports that are not currently available to them. • Appropriate third parties use training related information to make better training choices. • Reduce costs by optimizing course offerings. • Allow appropriate third parties to review training related information daily and adjust personnel training schedules accordingly. • Allow appropriate third parties to assure proper training is available to meet the terms of the agreement.

34. 5.4 Measures Project Metrics • Project costs at or below approved funding • Delivery of Product is early or on-time • Percentage of milestones met as planned • Actual hours to do tasks vs. baseline • Number of defects • Lines of code Metric Measurement • Weekly project plan reviews • Post-implementation customer reviews

35. 5.5 Change Control Change Control Log • The Change Control Log represents any modifications to the content of this document. Upon approval, a Change Control Log will be established, and changes will be review and approved by IT and the business sponsor. • All work products will adhere to the Sarbanes-Oxley configuration policy and standards.

36. 6.0 Approval 6 Approval • Approvers: • VP of Training Department • Director of Applications Development • Reviewers: • Applications Development Manager • Applications Development Project Manager • Applications Development Domain Architect • Operations Project Manager

37. Summary • Anheuser-Busch’s IT department has specific views on how they are to relate to the company. Robert Byrne states: • “We are not an information technology company ... we are a beer company.  The last message in the world our IT organization wants to send to our company is that there are 1,200 IT people sitting around dreaming up IT solutions to business problems that do not exist.  We are a group of 1,200 business people who happen to manage IT. There will be no information technology driven initiatives ... everything we do is a business initiative enabled by IT” • Here Mr. Byrne defines the reason that IT exists at Anheuser-Busch: • Business Growth through the systems we build, run and maintain for our customers and through the business strategies we support • Cost Reduction in the business initiatives we deliver that are enabled by IT • Standardization and Service Excellence in our delivery to internal and external customers and in the maintenance and replacement of IT infrastructure, hardware and software Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies Interviewed via email, September 28 - October 4, 2004.