Campus Business-IT Implementation Organizations

1. Campus Business-IT Implementation Organizations CITI Meeting April 13, 2009

2. IT Application, Data and Infrastructure Services Stack with Illustrative Services End user & Support Process & Information Application & Data Middle Applications OS & Platforms Server & Device Data centers & Comm Networking & Telecom Secure, Reliable, Responsive Applicable Governance & Management Defined Quality & Transparent Costs • End user transaction and decision • Help desk • End user desktop, network, security support IT-enabled processes require all services Services can be provisioned in different ways and with different groupings The objective of the operating model is to specify the approaches that best meet UCLA’s needs • Business process and workflow • Data mining and manipulation • Search and information access • IT workflow and transaction applications • Data models and data reporting • Identity management, portal • Web access, data base • Search, reporting • Operating system • Software platforms • Database management systems • Server and database processors • Virtual architectural services • Server management, sys admin • Data centers, hubs, security, power, UPS, network • Email, chat, video conference, web meeting, • hosting, monitoring • Network, VPN, wireless, DNS, NOC • Voice mail, teleconference services • Phone, PDA, cell, telecom, text 6/4/2014

3. The Technology Stack: Distinction Between Application and Data Services and IT Infrastructure Services Data centers & Comm OS & Platforms Middle Applications Networking & Telecom Process & Information End user & Support Server & Device Application & Data Institutional Local Process Standardization and Integration (Data Sharing) IT Enabled Processes IT Application Services Core Infrastructure Foundation IT Infrastructure Services 3

4. Rendition of UCLA’s CurrentResearch Administration Data & Application Architecture Enterprise Data Data Applications & App Infrastructure Technology Platforms & Data Centers ORA OIPA Clinics Schools Divisions Networking & Telecom CTS Network Backbone MCCS Network Backbone Analog Telephones – External Network Connections Adapted from: Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press June 2006 Based on companies operating in Business Silos

6. Implementation Organization for “ERP” is Important • Change processes, ways of doing business, job content and technology • Key drivers of organizational approaches • Size of organization • Relative level of campus centralization • Culture • Centralization of the IT function • Steering Committee • Advisory Committee • Core group of functional and technical people that are advisory • Gartner 75% of projects with are successful – 75% of projects without fail

7. ARMY – Business Focused Model “The primary benefit of the Business Focused model is that functional requirements are more likely to be fully satisfied. Although functional requirements will likely be met, the approach to meeting them may not result in a standardized, maintainable, or cost effective solution. This is due to the functional organization prioritizing its own needs over those of the overall enterprise.” ERP Governance Source: http://www.army.mil/armybtkc/focus/sa/erp_gov.htm

8. ARMY – IT Focused Model “This arrangement often results in more standardized implementations and better alignment with enterprise architecture, but at the cost of sub optimizing business functionality.” Assumes Centralized IT Organization

9. When Everyone Wants to be Involved in Everything…

10. ARMY – Holistic Enterprise Approach Executive Sponsors and CIO Ultimate decision authority Stakeholders who are users but not primary owners of ERP but Primary owners of process and systems Enterprise capability – change mgmt, ERP product knowledge, enterprise architecture, knowledge enterprise portfolio Business and IT project teams

12. Confidence in the Model • Close to current SR2 project organization • Close to that recommended by the Burton Group for the IWE project • Used for Ohio State University PeopleSoft (Financials, HR, Procurement & Grants Admin) Implementation

13. A Portfolio Management Process & Structure for UCLA Committee on IT Infrastructure (CITI) May 27, 2008 CITI Portfolio Management Process

14. Disney’s Cross Reference Across Business UnitsIdentify Leverage Opportunities and Cost Create & manage products, services, media Market products & services Sell products & services Perform order manage-ment Manage supply chain ops Manage & support cust. Plan & manage perform-ance Manage finances & accntg. Manage human resources Manage Inform-ation resources Manage physical assets Manage support services WDW DLR TP&R WDI DLP Total ABC Network Governance of IT investment can be aligned around business process owners. ESPN ABC Cable Media Networks ABC Radio ABC TV stations BVTV WDTVI Total BVG DCP DCP – Int’l DCP DDM Disney Pub. Merch. Lic. Disney Store This analysis reveals costs by business process and informs where the IT investment is focused, business unit cross reference reveals leverage opportunities Total BVI BVHE – Int’l Studio Corporate Corp BVHE – NA Tomorrowland Filmed Ent. Total Total Grand Total CITI Portfolio Management Process

15. UCLA Business Processes-- Level 1.0 for UCLA’s Four Core Processes -- Conduct & Manage Research Level O Processes 1.2 Level 1 Processes Document Federal Compliance Present / Publish Research Results Identify Opportunities (33) (23) 1.2.9 1.2.17 1.2.1 Document Non-Federal Compliance Manage Intellectual Property/ Patents/Licensing/ Technology Transfer Prepare Internal Forma & Protocols (29) 1.2.2 1.2.10 Prepare Proposals Conduct Research & Incur Costs (38) 1.2.18 (16) 1.2.3 1.2.11 Coordinate Research Parks/ Joint Ventures Prepare & Submit Goldenrod Perform Clinical Trials (13) 1.2.4 1.2.12 (3) 1.2.19 Review & Submit to Funding Agency Invoice Funding Sponsors Management Data 1.2.5 1.2.13 (13) 1.2.20 Negotiate Award Prepare & Submit Financial Reports Institute Quality Control Measures (13) 1.2.6 1.2.14. 1.2.27 (7) Close Out Awards Set-Up Award 1.2.7 1.2.15 Ethics (Policies, Procedures, Subject Testing) Collect Accounts Receivable 1.2.16 (14) 1.2.8 CITI Portfolio Management Process 15

16. Step One Understand the Existing Environment “As Is” Validate & Refine Summary of Findings Define new IT Portfolio Management Model Conduct Gap and Capacity Analysis Define Objectives, Priorities and Process Metrics • Define information and analysis needs • Collect information and data using normalized data / industry process classifications and models • Interviews • Baseline research • Benchmarking • Surveys • Focus groups • Develop an understanding of the problems and issues • Level set on the definition, upper and lower limits, and parameters regarding value, cost and risk Summer 2008 CITI Portfolio Management Process -- WORKING DRAFT-- 16

17. Create a Process-Systems - Matrix using existing list of systems Sample Work Product UCLA IT Portfolio Management Process

18. Cross Reference Across Business UnitsIdentify Leverage Opportunities and Cost CITI Portfolio Management Process

19. CITI Endorsement Agreement with the basic framework & objectives for IT portfolio management Agreement to do “as-is” analysis Define information needs Categories/thresholds for collecting applications information What information will be collected in first iteration Define Level 1 processes Facilitated session Subgroup of CAO Agreement to review and approve a detailed plan at CITI’s June meeting Consult CITI subgroup Summer start Integrate with IT planning and cost review CITI Portfolio Management Process 19 19

20. Draft Problem Statement: Visibility (Phase 1) Problem: UCLA’s IT services are not institutionally visible or even known UCLA’s planning processes do not reveal new IT services and systems End of application and/or product life-cycles are difficult to collectively see and deal with  Impact: The distribution and patterns of IT services are unknown Architecture scaling of solutions is virtually impossible Difficult to do cross-unit planning UCLA IT Portfolio Management Process

21. Draft Problem Statement: Financial(Phase 2) The distribution and profile of IT investment is institutionally unknown Duplicative spending on IT systems is generally not an active decision and unnecessary duplication is not easily addressed There is a wide range of life cycle cost calculation approaches making it difficult to compare investments and often leading to under-estimated TCO and underfunded projects There is no good way to proactively monitor and compare end of life cost profiles and to project technology change costs UCLA IT Portfolio Management Process

22. Resource Requirements - Funding 2008/09 – Phase I (subsequent phases will be budgeted after fact-finding in first year)Project manager (1/2 FTE, includes benefits) $70KAnalyst (1/2 FTE, includes benefits) $30KFacilitation (8 days @ $1,500 / day) $12KAdministrative Support (through Front Desk)        $10KWorking sessions (venue, refreshments, etc.)      $ 3K Total: $125K • Assumptions • The project manager and analyst at 50% time could potentially be combined into one person/position -- for a 100% FTE salary @ about $100,000 / year).  • The facilitator's rate is based on $1,500/day. • The administrative support is based on student assistance with the scheduling and coordination of meetings, as well as copying and other activities in preparation for the sessions • There would be some working session costs, estimated at about 3% of the budget. UCLA IT Portfolio Management Process