Enterprise Architecture at Eaton: Targeting Growth, Value and Innovation

Enterprise Architecture at Eaton:Targeting Growth, Value and Innovation

NOREX Select Workshop15 June 2011

Using EA to drive

Growth

Innovation

Premier Diversified Industrial

Integrated Operating Company

• Founded by J.O. Eaton• World Headquarters in Cleveland, Ohio USA• Regional Headquarters in Shanghai, China; Morges,

Switzerland; Sao Paulo, Brazil• Innovation Centers in the USA, China and India• Customers in more than 150 countries• 2010 sales of $13.7 billion, 55% of sales outside the U.S.• Approx. 70,000 employees• Chairman & CEO –Alexander M. Cutler

We provide reliable, efficient and safe power management for…

Cities & Buildings

TransportationIndustrial & Machinery

Information Technology

Energy & UtilitiesInfrastructure

EBSThe Eaton Business System (EBS) is the embodiment of our Integrated Operating Company philosophy.

Rapid deployment of best practices

Standardizedprocesses

Eaton UniversityContinuous assessment

Growth & Operating Excellence

EnterpriseArchitectureProgram

Formed 2004

Reports to the CIO

12 FTEs

- Primary customer -IT practitioners across Eaton

PhilosophyResults-focused

Growth & value orientedIterative in approach

Pragmatic (speed v. perfection)“Non-denominational”

Communicative

Architecture & Planning

SolutionsDiscipline

TechnologyDiscipline

InformationDiscipline

PlanningGovernance

Communication

Principles

Guidance

Standards &Policies

Ref. ArchitecturesRoadmaps

Patterns

Bricks

HOW WHAT

EnterpriseArchitecturePublicationsProducts

EnterpriseArchitectureProcesses

Architecture Definition

Architecture Consulting

Architecture Governance

TechnologySurveillance

IndustryResearch

StrategicPlanning

Services

EnterpriseArchitectureProcesses

Architecture Definition

IndustryResearch

StrategicPlanning

Services

Jim Crawford

IT Strategic Planning

Brian Schultz

Some other guy

Technology Surveillance

Our approach to IT Strategic Planning

Jim Crawford

Biography

Jim CrawfordSr. Principal, Enterprise Architecture and Planning

• Enterprise IT Strategic Planning• Architecture Governance Processes

With Eaton since 1997Background in data center, network and help desk operations, security, messaging and client technologies.

In architecture role since 2005.

Previously held positions at Aeroquip Vickers, AlliedSignal (Honeywell), System Source.

Eaton Business System

• A methodology and culture of quality and continuous improvement.

• Deployment of common tools and processes, focusing on consistency and repeatability.

• Each function is challenged with understanding, documenting and improving processes.

• Process are integrated and this integration is how we do business every day.

Strategic Planning

• One of Eaton’s and IT’s Key processes.• The Strategic Planning process is an

enterprise-wide effort to produce fundamental decisions and actions that will shape and guide Eaton's future direction.

IT Strategic Planning Process

Development Deployment

Alignment and Progress Reviews• Employee

• Mid-year review cycle• End of year progress• Annual goal setting

• Quarterly - Strategic initiatives against the plan targets and goals.

• Monthly - IT operational review and Global IT Council meetings with strategic measures tracked on a balanced scorecard.• Operational contribution• Cost out• Process efficiency• Deployment penetration of key systems

• We are continuously working to achieve our Plan goals

Structure of the plan

Strategic Intent• The elevator speech

about our strategy.

• A related group of business challenges faced by Eaton over the next 3-5 years.

Strategic Objectives

• Goals or capabilities that IT must focus on over a 3-5 year period in order to meet these challenges.

Initiatives• Actions that IT will take

in the next 1-3 years to help accomplish the objectives.

DefinitionElement

Year-to-year

• Repeatable process• Corporate guidance is provided if certain focus

areas are targeted• In IT, we refresh the plan annually to keep our

focus clear and up-to-date for the organization

Strategic Plan Versions

Multiple versions are created, targeting specific stakeholders and audiences:

• Full Enterprise IT Strategic Plan• Elevator speech version – strategic intent in 30 sec.• Executive version – strategic intent and major initiatives• Graphical version – explains the “whats” and “whys”

with fewer words and more pictures• IT-specific version – provides additional details and

deeper dive into the technology “hows”

Continuous improvement (examples)

• 2004: Purely an IT cost-cutting focus• 2005: “A strategy is the sum of 1000 initiatives”• 2006: Better integrated with company goals• 2007: Added challenge areas; e.g. emerging

markets growth• 2008: Cross-group planning coordination/review• 2009: Adopted new plan structure• 2010: Single global plan; “enduring” measures

Evolution 2011

We have evolved to a true “Enterprise IT Strategic Plan” with a cross-sector Steering Committee and cross-sector strategy focus teams providing specific sections of the IT Strategy

Eaton Business System and Strategic Planning

• As a repeatable key process, IT Strategic Planning is one of our most mature processes

• Strategic planning provides the foundation for IT goal setting, portfolio prioritization and investment

• Our strategy drives organizational actions throughout the year. It is not put on the shelf to collect dust.

Our approach to Architecture Governance

Brian Schultz

GovernanceMaking sure the pieces fit

Biography

Brian Schultz is an Enterprise Architect in the EatonCorporate IT Enterprise Architecture Group. He isa member of the Solutions Architecture team within thatgroup. He has worked for Eaton since 1998. Prior to that, Brian held positions with IBM, Westinghouse, and DuPont..

Brian has been awarded 5 US Patents for inventions in the Information Technology disciplines of Artificial Intelligenceand Business Analytics.

Our products – a quick revisit

Principles

Guidance

Standards &Policies

Ref. ArchitecturesRoadmaps

Patterns

Bricks

HOW WHAT

EnterpriseArchitecture

Products

Processes (Services)

IndustryResearch

StrategicPlanning

ArchitectureConsulting

ArchitectureGovernance

ArchitectureDefinition

Develops and articulates business challenges and IT strategic objectives; informs IT investments & architecture iteration

Senses and incubates emerging technologies that have strong potential business value to Eaton

Investigates and informs about trends in the IT industry; observes vendor strategies; provides product & process insights to project initiatives

Defines and documents the desired-state architecture; happens iteratively over time

Provides a process for reviewing compliance with architectural standards and obtaining variances where appropriate

Provides architectural guidance to projects and initiatives, yielding faster delivery and higher quality

Let’s talk about these in the context of projects

Project Concept; Risk Assessment

Architecture Processes in the Project Life Cycle

Architecture Assessment

Architecture Review & Exception Handling (if any)

Architecture Compliance Validation

Preliminary Architecture Assessment

Exception Handling (if any) during Phases 2 - 3

Project Concept; Risk Assessment

Architecture Processes in the Project Life Cycle

Architecture Assessment

Architecture Review & Exception Handling (if any)

Architecture Compliance Validation

Preliminary Architecture Assessment

Exception Handling (if any) during Phases 2 - 3

Three Types of Architecture Activity1.Architecture Consulting2.Architecture Review3.Architecture Assurance

Architecture Impact Assessment Rating DrivesConsulting, Review and Assurance

requiredH

optional

A. alignment with IT principles

conceptual architecture design

technology / service/ vendor selection

patterning

detailed architecture design

• compliance with published standards using self-help

artifacts• all waivers requested &

approved via exceptionrequest(pre-gate 3)(pre-gate 4)

Architecture Review(pre-gate 2)

with EA team

none req’d

with ARB

Architecture AssessmentWorksheet Rating

Projector

Initiative

3 Architecture Assurancere

Project Sponsor / Project Manager Perspective

requiredH

optional

patterning

with EA team

none req’d

with ARB

Projector

Initiative

Guiding Principles

• The Guiding Principles provide overarching guidance for all Information Technology activities

• They act as a framework for all otherEnterprise Architecture processes

Architecture Bricks:Tactical and Strategic Planning Horizons

BaselineEnvironment

TacticalDeployment

StrategicDirection

RetirementTargets

Mainstream Standards

EmergingTechnologies

Containment Targets

Brick-Specific Implications and Dependencies

Current 0-2 Years 2-5 Years

Exit fromEnvironment

Introduction To Environment

Top Row: Baseline = what’s already here; Tactical = what to buy now; Strategic = what’s coming after that

Center Rows: Current point in life cycle for each product / version: Retire, Contain, Mainstream, Emerging

Bottom Area: Implications and dependencies to be aware of regarding this technology “brick”.

Patterns

• Patterns provide guidance for how to combine and arrange technology components to provide larger, reusable system framework elements that meet project needs

• Pattern Definitions include:• Abstract• Description• Use Case• Architecture• Component List• Guidelines for Usage

Pattern Elements

cmp Architecture

Servlet Applications

«Brick Product»Web Serv ers:

Apache Apache 2.2

«Brick Product»Enterprise

Database: Oracle 11gR1 Enterprise

Edition

«Brick Product»Application

Serv ers: BEA Weblogic 10

«Brick Product»Application

Serv ers: JBoss 4

You may choose either of these application server vendors when the application requires a full J2EE container

J2EE Applicaitons

«Brick Product»Web Serv ers:

Jakarta Tomcat 5.5

Use this branch for those applications which require onlyServlet or JSP containers

Pattern Components

Legend

«Pattern»Enterprise Linux Serv er

requiredH

optional

patterning

with EA team

none req’d

with ARB

Projector

Initiative

Architecture Review Process

• Intent: Ensure that projects with significant architecture impact are reviewed early in the project life cycle to drive for increased compliance with standards

• Focus on evaluation of those project aspects that are considering:• Architectural risk elements of the project

• evaluation of project’s architecture and it’s consistency with strategic program roadmaps

• New or non-compliant architectural bricks and patterns

• Two levels of review• Architecture Review Board for High Architecture Impact• Enterprise Architecture Core Team Review for Medium

Architecture Impact

requiredH

optional

patterning

with EA team

none req’d

with ARB

Projector

Initiative

Our approach to Technology Surveillance

Dick Kerr

One of the ways IT helps driveOne of the ways IT helps drive

G. Dick KerrVice PresidentEnterprise Architecture

Eaton CorporationLearning and Technology Center32500 Chardon RoadWilloughby Hills, OH 44094 USA

dickkerr@eaton.comwww.eaton.com

Architecture & Planning Business Intelligence Platforms Framework Services

Innovation…Let’s try to define it

Fact or fiction?

Innovation just happens.

Innovation only happens in R&D.

The best innovation comes from inside.

The more innovative ideas we generate, the better.

We have lots of smart people, so innovating will be no problem.

Which would you pick? And why?

Stick GPS

Does this count as innovation?

Why is the iPhone so successful?

Operating system?Touch screen?Wi-Fi?.Cellular data?Browser?E-mail and calendar?

The Innovation Burger

The best innovation opportunities exist at the intersection of business

opportunity and technology capability

The Technology Surveillance and

Incubation program

Objectives / Desired Outcomes

Drive technology-centric innovation

Reduce “late to the party” syndrome

Make the best investments (value, fit, maturity)

Help market IT’s innovation posture

Program Focus

IS IS NOTIncreasing our technology speed-to-market

Accelerating innovation value by being proactive instead of reactive

Improving the success rate of new technology introductions

Doing new to the world research & development

Implementing every new technology we find

Becoming a bleeding-edge adopter

Best Practices

Surveillance + Incubation

The ongoing systematic collection and analysis of data that can lead to action.

Maintaining something at the most favorable temperature for its development.

5-Stage Process,Aligned with Eaton’s Innovation Framework

DeploymentOpportunity Filtering

External Surveillance

Readiness Assessment

Value Assessment

Likely to be advantageous or disruptive?

Mature enough? Fits

with IT architecture?

Meets value and deployment

hurdles?

Opportunity Filters

Technology MomentumApplicability to Eaton

Readiness and Applicability Filters

Breakthrough Business Performance• Will this technology facilitate a breakthrough

business performance improvement?Competitive Differentiation

• Will this technology offer a competitive advantage?

Sustainability• Will this technology differentiate us in the long

term?Gap Closure

• Will this technology close a gap in current performance or needs?

Breadth of Applicability• Will this technology support multiple business

units, functions, and or geographies?

Enterprise Architecture Workshop

NOREX SELECT

June 14-15, 2011

NOREX Select

NOREX Select is comprised of information technology teams from the largest companies in North America.

Our members exchange expertise with companies of similar size and scope to improve IT functionality and ROI through workshops, WebForums, and pre-arranged project networking opportunities.

We appreciate your participation in our Enterprise Architecture Workshop!

NOREX Select

Workshop DetailsAgenda

Attendee introductions and company overviews

Interactive discussion of submitted topics

Role of moderator

Member presentation

Breaks and meals

Attendee introductions & overviews Name & Title:

Company:

Industry:

IT Employees:

Enterprise Architecture approach:

Key Concern/Challenge:

NOREX Select

Elements of a Successful Enterprise Architecture

NOREX Select

Topic 1

Definitions of key terms used in EA (Target Architecture, Reference Architecture, Standards):

How are these defined? Do we have an agreed set of terms and definitions so we can have meaningful discussions?

Chuck LysakowskiAir Products and Chemicals, Inc.

NOREX Select

Topic 2

Business Architecture:

What does it mean to you?

Herb BergerCardinal Health

NOREX Select

Topic 3

EA principles

Pukhraj KachhwahaEli Lilly & Co.

NOREX Select

Topic 4

EA’s role in innovation and emerging technology

NOREX Select

Topic 5

How have EA groups increased their scope beyond the traditional IT back office to include the architecture in your company’s products, i.e., embedded systems in tractors, autos, office machines, etc.

Alan TillmanDeere & Co.

NOREX Select

Topic 6

How do you prove the value of EA and demonstrate it to management?

Walter LimbachUSS

NOREX Select

Topic 7

SOA and other enterprise capabilities

NOREX Select

Topic 8

IT Data Model:

Foundation of running the business of IT

NOREX Select

Topic 9

Application Portfolio Management/EA Governing Bodies:

What EA governing bodies do members have and what do they do?

NOREX Select

NOREX SELECT

June 14-15, 2011

Member Presentation

EA at Eaton Corporation:

Building Blocks for Future Growth and Value

NOREX Select

Developing an EA Program

NOREX Select

Topic 1

EA Frameworks: Specifically, use of TOGAF or key components of custom frameworks.

Herb BerberCardinal Health

NOREX Select

• The Open Group Architectural Framework (TOGAF)—Although called a framework, it is more accurately defined as a process

• The Zachman Framework for Enterprise Architectures—Although self-described as a framework, it is more accurately defined as a taxonomy

• The Federal Enterprise Architecture—Can be viewed as either an implemented enterprise architecture or a proscriptive methodology for creating an enterprise architecture

• The Gartner Methodology—Can be best described as an enterprise architectural practice

Topic 2

EA Taxonomies: What taxonomies are members using and what are you using them for?

NOREX Select

Topic 3

How are members managing architectural standards?

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Topic 4

Architecture assessment process and repository

NOREX Select

Topic 5

Architect’s Role:

What do your architects do? Do they do strategies, reference architectures, standards management, governance, etc.? Do they work on solution engineering? What titles do you have in place? What is the breakdown of an architect’s time between strategic vs. tactical?

Herb BerberCardinal Health

NOREX Select

Topic 6

How do you use your as-is and to-be architectures to create roadmaps and how are those then integrated with project portfolios?

George WitmerAir Products and Chemicals, Inc.

NOREX Select

Topic 7

How to get buy-in from tech leads

Walter LimbachUSS

NOREX Select

Topic 8

How do you develop internal talent pools of people who become the next enterprise architects?

Ray TrotterDeere & Co.

NOREX Select

Topic 9

EA Tools:

What tools are members using? How are you using them? What value are you getting from them?

NOREX Select

Additional topic

How would a small/lean IT organization dip their toes into the EA waters?

Sean KubovcikTravel Centers

NOREX Select

NOREX SELECT

June 14-15, 2011

Topic 13

Cloud Computing:

What strategies are in place for cloud?

NOREX Select

Additional Topic

Definition and approach to “reference architecture

Dave DezelanEli Lilly

NOREX Select

Additional topic

Target architectures: What artifacts are used to paint the picture of your direction in a specific functional area?

NOREX Select

Chris Barendt

Progressive Insurance

Additional Topic

Mobile architecture

NOREX Select

Additional topic

How many groups have remote architects?

What collaboration tools are used?

Chris Barendt

Progressive InsuranceNOREX Select

Additional topic

Tools to manage technical roadmaps

Do you include Guidance and Patterns?

NOREX Select

Chris Barendt

Additional topic

Tools used to capture business capabilities and business process

Mapping to supporting applications?

NOREX Select

Chris Barendt

Additional topic

How do handle the removal of old technology?

NOREX Select

Chris Barendt

Additional topic

Developing technology roadmaps

NOREX Select

Measuring the Value of Enterprise Architecture

NOREX Select

Topic 1

Evaluating projects against EA guidelines: At what stages of the project are these reviews done? Do all projects go through the same process?

NOREX Select

Topic 2

What communication channels do you use to communicate EA strategies and directions to other parts of the company (both IT and non-IT functions)?

NOREX Select

Topic 3

EA Metrics:

What metrics do you track or are thinking of tracking for EA?

Alan Tillman, Deere & CoHerb Berber, Cardinal Health

NOREX Select

Topic 4

What tools are being used to document your enterprise architecture technologies, applications and data (the scope is at the macros level, so say for 500 applications in a company)? This is not a question about individual delivery projects or detailed documentation of a single application.

NOREX Select

Topic 5

EA Certification:

Anyone doing it? Is it bringing value?

NOREX Select

Additional Topics

Please complete your

Workshop Evaluation

Upcoming Select WorkshopsMobile Device Mgmt Sept 20-21 Chicago

Topic TBD Nov Oklahoma City

Upcoming Select WebForumsJune 29 – Records Management

July 20 – Data Loss Prevention – Protecting Intellectual Property

Thank you for taking part in the

Enterprise Architecture WorkshopNOREX SELECT

Enterprise Architecture at Eaton: Targeting Growth, Value and Innovation

eaton corporation

eaton business system

enterprise architecture

biography jim crawfordsr

china morges

eatonworld headquarters

countries2010 sales

ohio usaregional headquarters

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