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Dr. Richard FrostDr. Richard FrostGlobal Director, Systems Development and
Program ManagementGlobal Director, Systems Development and
Program Management
Driving Global IT Performance with the CMMI for Acquisition
Driving Global IT Performance with the CMMI for Acquisition
November 18 [email protected]
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1.1. IT Executives must continuously drive IT Executives must continuously drive Innovation, Efficiency, and Security in their Innovation, Efficiency, and Security in their business and agencybusiness and agency
2.2. IT Executives must consciously manage the IT Executives must consciously manage the balance of their internal staff and supplier balance of their internal staff and supplier sourcing sourcing
3.3. GM drives innovation and performance with GM drives innovation and performance with and Integrated processes based on the and Integrated processes based on the CMMI-ACQCMMI-ACQ
1.1. IT Executives must continuously drive IT Executives must continuously drive Innovation, Efficiency, and Security in their Innovation, Efficiency, and Security in their business and agencybusiness and agency
2.2. IT Executives must consciously manage the IT Executives must consciously manage the balance of their internal staff and supplier balance of their internal staff and supplier sourcing sourcing
3.3. GM drives innovation and performance with GM drives innovation and performance with and Integrated processes based on the and Integrated processes based on the CMMI-ACQCMMI-ACQ
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GM builds “Gotta-have” Cars and TrucksGM builds “Gotta-have” Cars and TrucksGM builds “Gotta-have” Cars and TrucksGM builds “Gotta-have” Cars and Trucks
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GM Continues to Drive InnovationGM Continues to Drive Innovation GM Continues to Drive InnovationGM Continues to Drive Innovation
4IS&S drives technology for our businessIS&S drives technology for our business
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GM is a complex global businessGM is a complex global businessGM is a complex global businessGM is a complex global business
GM is 24x7 – we are always working somewhere.GM is 24x7 – we are always working somewhere.5
• 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
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GM IS&S: Strategic Hub for TechnologyGM IS&S: Strategic Hub for TechnologyGM IS&S: Strategic Hub for TechnologyGM IS&S: Strategic Hub for Technology
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Enable Innovation Globally Drive Simplification, Standardization and Collaboration
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Evolution of IT and General MotorsEvolution of IT and General MotorsEvolution of IT and General MotorsEvolution of IT and General Motors
ITITSupplierSupplier
First GenerationFirst Generation1984-19961984-1996First GenerationFirst Generation1984-19961984-1996
Second GenerationSecond Generation1996-20031996-2003Second GenerationSecond Generation1996-20031996-2003
Third GenerationThird Generation20032003Third GenerationThird Generation20032003
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITSupplier
ITSupplier
CommonCommonEnterprise Enterprise
ManagementManagementProcessesProcesses
CommonCommonEnterprise Enterprise
ManagementManagementProcessesProcesses
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITITSupplierSupplier
ITSupplier
ITSupplier
Third Generation Goals:Third Generation Goals: Increase agilityIncrease agility Build the best partnership with the businessBuild the best partnership with the business Quickly take advantage of new technologiesQuickly take advantage of new technologies Assure the highest quality of our systems Assure the highest quality of our systems
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GM leveraged CMMI for DevelopmentGM leveraged CMMI for DevelopmentGM leveraged CMMI for DevelopmentGM leveraged CMMI for Development
Capability Maturity ModelCapability Maturity Model®® Integration Integration 8
Maturity Model for software development organizations Maturity Model for software development organizations Chartered by US government to address software failureChartered by US government to address software failure Developed by the Software Engineering Institute at CMU Developed by the Software Engineering Institute at CMU Provides proven best practices and growth pathProvides proven best practices and growth path Provides standard independent appraisals and ratingsProvides standard independent appraisals and ratings
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IT Already Sources most of their BudgetIT Already Sources most of their Budget
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2007 Global IT Spend
Source: Forrester
75% of every IT dollar is spent on Acquisition
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Exsiting Models Focused on the Exsiting Models Focused on the Developer – not the ‘Customer’Developer – not the ‘Customer’Exsiting Models Focused on the Exsiting Models Focused on the Developer – not the ‘Customer’Developer – not the ‘Customer’
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CMM, CMMI SPICE IEEE COBIT ITIL
Findings:Findings:• Enterprises were acquiring most systems• Models focused on development and operation • Firms were marketed proprietary models• Industry was looking for a ‘customer’ model
General Motors partnered with:General Motors partnered with:• Software Engineering InstituteSoftware Engineering Institute• US Department of DefenseUS Department of Defense• NASANASA• Industry Leading SuppliersIndustry Leading Suppliers
To develop a maturity model for the To develop a maturity model for the Customers of IT SourcingCustomers of IT Sourcing
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Why is Acquisition Different?
BuildRequirements
Time lag – business changeTime lag – business change
Limited supplier knowledgeLimited supplier knowledge
Poor requirements Poor requirements communicationcommunication
Rigid requirements (whatever Rigid requirements (whatever is in the contract)is in the contract)
Limited customer contactLimited customer contact
Drive to deliverable signoffDrive to deliverable signoff
RFP RFP GAPGAP
Requirements Build
In-House DevelopmentIn-House Development AcquisitionAcquisition
Inherent business knowledge Inherent business knowledge and relationshipsand relationships
Willingness to accept Willingness to accept ambiguity and riskambiguity and risk
Consistent IT project team Consistent IT project team
Flexibility with schedulingFlexibility with scheduling
Frequent communication Frequent communication
Changes are easyChanges are easy
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Supplier
CMMI for Acquisition (CMMI-ACQ)CMMI for Acquisition (CMMI-ACQ) Maturity Model for organizations that acquire systemsMaturity Model for organizations that acquire systems Leverages best practices of industry and CMMILeverages best practices of industry and CMMI Helps customers ensure that they retain core competenciesHelps customers ensure that they retain core competencies
to be successful when they source to be successful when they source Drives maturity for the combined acquirer/supplier teamDrives maturity for the combined acquirer/supplier team
12http://www.sei.cmu.edu/publications/documents/07.reports/07tr017.html
Acquirer CMMI-ACQ
CMMI-DEV
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Acquirer & Supplier Maturity RequiredAcquirer & Supplier Maturity RequiredAcquirer & Supplier Maturity RequiredAcquirer & Supplier Maturity Required
13Technical &
Management Skill
Success depends maturity of suppliers and the Success depends maturity of suppliers and the customers!customers!
Data reveals: customers maturity significantly affects successData reveals: customers maturity significantly affects success
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Levels of the CMMILevels of the CMMI®®-ACQ-ACQ
Level 1
Initial or PerformingUnfocused
Level 2
ManagedBasic Acquisition
Project Management
Level 3
DefinedAcquisition Process
Standardization
Level 4
Quantitatively ManagedQuantitativeManagement
Level 5
OptimizingContinuous Process
Improvement
Adapted from a chart by the Software Engineering Institute, Carnegie Mellon University
Provides a proven framework of capabilities and maturityProvides a proven framework of capabilities and maturity Provides a growth path to improveProvides a growth path to improve Capabilities build at each layer to improve resultsCapabilities build at each layer to improve results
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CMMI for AcquisitionCMMI for AcquisitionCMMI for AcquisitionCMMI for Acquisition
CMMI Model Framework
(CMF)
CMMI Model Framework
(CMF)
16 Project, Organizational,
and Support Process Areas
Solicitation & Supplier Agreement Development
Acquisition Requirements Development
AcquisitionTechnical Management
Agreement
Management
Acquisition
Validation
Acquisition
Verification
A structured framework to drive the capabilities required to be an effective Customer of IT
Defines maturity levels and appraisals to guide improvement
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Implementing the model required structural change and global standardization Organizational Structure Common Global Processes Common Service Agreements Continuous Improvement
Implementing CMMI-ACQ for GMImplementing CMMI-ACQ for GM
StructureStructure
ProcessesProcesses
ContractsContracts16
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GM Acquisition CompetenciesGM Acquisition Competencies GM Acquisition CompetenciesGM 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
Project Management
Contract Management
Requirements
Architecture
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ResultsResults
CMMI Model
Framework (CMF)
Project Management
Standardized Work Processes
Enterprise & DomainIntegration
CMMI-ACQ has driven substantial benefits for GMCMMI-ACQ has driven substantial benefits for GM Strong business knowledge and partnershipStrong business knowledge and partnership Control of Strategy, Architecture, and Project ManagementControl of Strategy, Architecture, and Project Management Standardized project and supplier management - GloballyStandardized project and supplier management - Globally Less time “RFP-ing” – more time solving IT problemsLess time “RFP-ing” – more time solving IT problems Very high project delivery and successVery high project delivery and success
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Dr. Richard FrostGlobal Director
Systems Development and Program [email protected]
Thank you!Thank you!
GMCGMC CadillacCadillac SaturnSaturn
VauxhallVauxhall OpelOpel
BuickBuickDaewooDaewooPontiacPontiacHummerHummer
HoldenHolden
ChevroletChevrolet
SaabSaab
1 in every 6 cars in the world is GM