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Organization of IT at Anheuser-Busch by HC111116195152

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									Organization of IT at
  Anheuser-Busch
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.
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.
  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.
Responsibilities Defined
     Data Center Operations: includes all             Information Technology Services:
      centralized information processing for the         • Financial services for the organization
      company
                                                         • Information management & retention
                                                           for the corp.
     Network & Communication Services:
      includes all phones, pagers, e-mail,               • Information protection & IT disaster
      network and all other communication                  recovery
      services                                         Technology Development: includes
                                                        Enterprise Architecture, New Technologies
     Application Development:                          integration, services acquisition for IT
                                                        including contract labor
       • Supply chain & AB International
         systems                                       IT Performance Management:
       • Sales & marketing systems                       • Internal Business Partner Planning for
                                                           IT inventories and IT standards
       • Finance & HR systems                            • IT communications
       • Procurement & maintenance systems               • Process Improvement and Deployment
       • Busch Entertainment & Corporation               • Training and Management
         systems                                           Development

       • AB Packaging group systems                    HR for the IT division




                                       Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies
                                                  Interviewed via email, September 28 - October 4, 2004.
                                                                                                      5
Report Structure

                                               CIO
                                                                          Director
          Sr. Director of Operations
                                                                  Performance Management



  Sr. Director for App Dev, Support & Maint.                             Director
                     BEER                                               IT Services



  Sr. Director for App Dev, Support & Maint.                             Director
             CORPORATE SYSTEMS                                    Technology Development



  Sr. Director for App Dev, Support & Maint.                            Director
         SALES & MARKETING SYSTEMS                                   Human Resources



                Sr. Director
        Busch Entertainment Systems


                                        Source: Robert J. Byrne, VP & CIO of Anheuser-Busch Companies
                                                   Interviewed via email, September 28 - October 4, 2004.
                                                                                                       6
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.
                                                                                               7
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.
                                                                                               8
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.
                                                                                                   9
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.
                                                                                          10
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.
                                                                                        11
Internal Presentation



                         Integrated Learning Reporting
                           CIO Pre-Funding Review

                                Champion: 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.
   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.




                                                                                                                         13
  Executive Summary
Roles & Responsibilities:                             Key Requirements (Business):
• HR Systems - Project Management                     • Standard training activity reports for
• HR Systems – Domain Architect                             • Training department
• HR Systems – Data Architect                               • Field Sales
• Operations - Project Management                           • Independent third parties
• Information Protection
• Enterprise Operations Management                     Ad-hoc wholesaler training activity reports for
• Enterprise Applications Management – AB-UP mentor          Training department
• Database Administration
• Network Services
• Training Department



Initial Risks:                                        Summary of Project Costs: (Not available for
• Scope management.                                   external use)
• Securing the appropriate internal resources          AD Labor
from MIS Operations areas.                             OPS Labor
• Tight schedule expectations since the business       Total Development
sponsor wants the project completed in 200X.           Capital
• Security control for external access of internal     Grand Total
data.
• Web Services is an existing but emerging            Tentative Schedule:
technology to the company and will require            To be completed by year-end 200X
support by Enterprise Application Management
and Information Protection.
                                                                                                          14
  Executive Summary
    Application Architecture Context Diagram

    The detailed Architecture Context Diagram is not available externally.




Legend    Existing       Future     New/Changing     Retiring

                                                                             15
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




                                                         16
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




                                                              17
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.




                                                                                                                                     18
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.




                                                                                 19
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.




                                                                                     20
2.2 Project Dependencies

Other Projects / Initiatives Dependent on the Project
   • None




                                                        21
2.3 Initial Project Scope
 In Scope:
     1.   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.
     2.   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.
     3.   Create a standard user interface for the custom web based application with business
          logic to filter options based on user role.
     4.   Existing reports will be available in the new system.
          Third Party Participation                          Training 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
     5.   Ad-hoc reporting capabilities for Training Department to run reports to evaluate training
          data and define future reporting requirements.
     6.   Begin analysis to define additional training related data that will be accessed for future
          training related reports.
 Out of Scope:
     1.   Integration with other training system replacements or enhancements.
                                                                                                            22
3.1 Proposed Project
Approach/Delivery Strategy

   The following tasks will be used to implement the new reporting system.
       1. Participate in all standard QA related reviews and audits.
       2. Finalize application and infrastructure design.
       3. Design, develop, test, implement and load new reporting system
          database.
       4. 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.
       5. Develop, test, and implement custom web based application for
          accessing training related reports.
       6. Develop ad-hoc reporting capabilities for the Training Department.
       7. Test reporting results.
       8. Implement new application(s) in production.
       9. Document requirements for future phases including new reports and
          future learning data source systems.




                                                                                  23
 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                                       • Construction
           –    Project Plan                                         – Source Code and Related Unit Tests
           –    Use Case Model Survey                                – Implementation Plan
           –    Glossary                                             – Acceptance Test Plans
           –    Non-functional requirements
                                                                •   Transition
    •    Elaboration                                                  – Acceptance Test Results
           – Iteration plan                                           – Application or Website Usage Statistics
           – Use Case Specifications                                  – User Satisfaction Surveys
           – Skeletal Class Diagram
           – Key Sequence or Collaboration Diagrams
           – Logical Data Model
           – Change Orders and Decisions
                                                                                                                  24
 3.1.2 Milestones & Impact


Project Milestones & Estimated Completion
                   Major Milestones                      End Date
           1       Inception                             Aug
           2       Elaboration                           Sep
           3       Construction (including testing)      Oct/Nov
           4       Transition                            Nov



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.

                                                                                             25
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.




                                                                                                   26
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




                                                                                        27
3.4 Risk Assessment & Risk
Management
                         Risk Management




                                           28
3.5 Governing Agreements



  The approved Development Agreement will be used as the governing agreement
  for this project.




                                                                               29
   4 Roles & Responsibilities


Role                            Responsibility
Business Sponsor                Responsible for providing scope, direction, approval, and funding for the project.
                                Identifies necessary Subject Matter Experts (SMEs) and their roles within the project.
Application Development         Responsible for day-to-day project activities including planning, monitoring, and
Project Manager                 reporting progress to the business sponsor. Also responsible for creating project
                                deliverables, overseeing project change control, tracking progress, and documenting
                                future business requirements, coordinating system integration and customer
                                acceptance testing.
Application Development Web     Responsible for designing, coding, and testing the custom reporting system.
Developers (2)
Business Objects Developer      Responsible for designing, coding, and testing an ad-hoc reporting system that can be
                                used to create flexible/dynamic Training Department reports.
Domain Architect                Responsible for ensuring applications conform to all of AB’s standards.


Data Architect                  Responsible for data analysis and design for logical and physical data model to
                                support the new reporting system.
Ops Project Manager             Coordinates resources and activities for Operations resources.

Information Security            Performs IT security audits and assessment.


EOM – Web Ops                   Responsible for architecture reviews, stress testing, and external infrastructure.


DBA                             Responsible for testing, tuning, and maintaining new reporting database.


Network Services                Responsible for defining data flow, network connectivity, and bandwidth consumption.

                                                                                                                         30
5.1 Funding Breakdown


   Total Estimated Project Costs:
         – Expense: $
         – Support: $
         – Capital:   $
   Cost of the project will be funded as follows:
     –




                                                     31
  5.2 Project Timeline

                                                      20XX                         20XX
                 Qtr 3                                                        Qtr 4
Jul                    Aug               Sep             Oct                    Nov              Dec
                             •Develop Agreement
 Project Preparation         •Project Funding
                             •Technical Approvals
                             •Ramp Up & Resource Acquisition

                       Inception       •Application
                                       Architecture     • Database logical & physical
                                       Design           data model
                                                        • Web services
                                                              •Connectivity to database
                                   Elaboration
                                                              •Graphics
                                                        • Custom application
                                                              •User Interfaces


                                                        Construction/Testing

                                                                                          Implementation




                                                                                                       32
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.




                                                                                       33
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




                                                  34
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.




                                                                                    35
   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




                                                  36
        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.
                                                                                                 37

								
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