Organization of IT at Anheuser-Busch Organization of IT at Anheuser-Busch
Dec 21, 2015
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 OverviewCompany 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.
Company Company OverviewOverview
Robert J. Byrne - Vice President and Chief Information Officer
ResponsibilitiesResponsibilities
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 CompaniesInterviewed via email, September 28 - October 4, 2004.
IntervieweeInterviewee
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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
Source: Robert J. Byrne, VP & CIO of Anheuser-Busch CompaniesInterviewed via email, September 28 - October 4, 2004.
Responsibilities DefinedResponsibilities Defined
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CIO
Sr. Director of Operations
Sr. Director for App Dev, Support & Maint. BEER
DirectorIT Services
Sr. Director for App Dev, Support & Maint. CORPORATE SYSTEMS
DirectorTechnology Development
Sr. Director for App Dev, Support & Maint. SALES & MARKETING SYSTEMS
DirectorHuman Resources
Sr. DirectorBusch Entertainment Systems
DirectorPerformance Management
Source: Robert J. Byrne, VP & CIO of Anheuser-Busch CompaniesInterviewed via email, September 28 - October 4, 2004.
Report StructureReport Structure
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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 CompaniesInterviewed via email, September 28 - October 4, 2004.
Management StructureManagement Structure
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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 CompaniesInterviewed via email, September 28 - October 4, 2004.
C-Level ExecutivesC-Level Executives
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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 CompaniesInterviewed via email, September 28 - October 4, 2004.
IT Budget DevelopmentIT Budget Development
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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 CompaniesInterviewed via email, September 28 - October 4, 2004.
HeadcountHeadcount
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• 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 CompaniesInterviewed via email, September 28 - October 4, 2004.
Project Pre-funding Project Pre-funding ReviewReview
Integrated Learning Reporting CIO Pre-Funding Review
Champion: Training DepartmentWho Pays: Training Department
Stakeholders: Training Department, Outside Third PartiesFunding: company confidential
Timeframe: 200XProject Manager: Individual within IT department
August 200X
Internal Internal PresentationPresentation
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.
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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.
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Executive Summary
Key Requirements (Business): • Standard training activity reports for
• Training department• Field Sales• Independent third parties
Ad-hoc wholesaler training activity reports for Training department
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
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
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.
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Executive Summary
RetiringLegend Existing New/ChangingFuture
Application Architecture Context Diagram
The detailed Architecture Context Diagram is not available externally.
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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
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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
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1.1 Business Problems/Opportunities
Business ProblemThere 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 NeedsImproved 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.
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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.
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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.
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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.
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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.
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3.1.1 Detailed Deliverables
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
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
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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.
Major Milestones End Date
1 Inception Aug
2 Elaboration Sep
3 Construction (including testing) Oct/Nov
4 Transition Nov
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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.
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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
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3.4 Risk Assessment & Risk Management Risk Management
Risk Description Status Comments Action Items
Scope Management To protect the viability of the current approved Project Definition
Scope can change frequently.
Agreed on initial scope. Continue to review project progress with customers in context of the current scope. Any scope changes occur through Change Control process.
Resources Knowledgeable resources are required for this project
Resource Availability and commitment – Securing internal resources
Experienced application architect and developer will be assignment to project and can mentor any junior developers.
Additional resources will be secured and fully dedicated to this project.
Schedule Tight timeframe to deliver project
Availability of resources could push the project start date and impact ability to complete in 2004
Resources have been identified and will be dedicated 100%.
Technical Web Services are required for this project
Emerging technology that still has some security concerns
Review proposed solution with all appropriate groups including Information Protection.
Work with EAM mentor to review design and code.
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3.5 Governing Agreements
The approved Development Agreement will be used as the governing agreement for this project.
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4 Roles & Responsibilities
Role ResponsibilityBusiness 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 Project Manager
Responsible for day-to-day project activities including planning, monitoring, and 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 Developers (2)
Responsible for designing, coding, and testing the custom reporting system.
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.
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5.1 Funding Breakdown
Total Estimated Project Costs:– Expense: $
– Support: $
– Capital: $
Cost of the project will be funded as follows:
–
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5.2 Project Timeline
Elaboration
Inception
Qtr 4Qtr 3
Construction/Testing
Implementation
Project Preparation
Jul Aug Sep Oct
•Develop Agreement•Project Funding•Technical Approvals•Ramp Up & Resource Acquisition
• Database logical & physical data model• Web services
•Connectivity to database•Graphics
• Custom application•User Interfaces
20XX 20XX
Nov Dec
•Application Architecture Design
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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.
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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
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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.
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Approvers:
• VP of Training Department
• Director of Applications Development
Reviewers:• Applications Development Manager
• Applications Development Project Manager
• Applications Development Domain Architect
• Operations Project Manager
6 Approval6.0 Approval
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SummarSummaryy
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 CompaniesInterviewed via email, September 28 - October 4, 2004.