Organization of IT at Anheuser-Busch

1
Organization of IT at Anheuser-Busch
Organization of IT at Anheuser-Busch
2
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/c
omplete_ar.pdf, viewed October 3, 2004.
3
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 - 49.22

1. Source Anheuser-Busch Companies, 2003 Annual
Report http//www.anheuserbusch.com/annual/2003/c
omplete_ar.pdf, viewed October 3, 2004.
2. Source Anheuser-Busch Companies,
Anheuser-Busch At A Glance http//www.anheuserbu
sch.com/publications/AtaGlance03.pdf, viewed
October 3, 2004.
4
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.
5
Responsibilities Defined

• 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 Companies Interviewed via email,
September 28 - October 4, 2004.
6
Report Structure
Source Robert J. Byrne, VP CIO of
Anheuser-Busch Companies Interviewed via email,
September 28 - October 4, 2004.
7
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.
8
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.
9
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.
10
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.
11
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.
12
Integrated Learning Reporting CIO Pre-Funding
Review Champion Training Department Who
Pays Training Department Stakeholders
Training Department, Outside Third
Parties Funding company confidential Timefr
ame 200X Project Manager Individual within
IT department
Internal Presentation

• 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.
13
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 ABs 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.

14
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.

15
Executive Summary
Application Architecture Context Diagram
The detailed Architecture Context Diagram is not
available externally.
Legend
Retiring
Existing
New/Changing
Future
16
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

17
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

18
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 courses 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 staffs
  training.
• Appropriate third parties can use this
  information to determine what courses their
  personnel need.

19
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.

20
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.

21
2.2 Project Dependencies

• Other Projects / Initiatives Dependent on the
  Project
• None

22
2.3 Initial Project Scope

• In Scope
• 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.
• 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.
• Create a standard user interface for the custom
  web based application with business logic to
  filter options based on user role.
• 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
• Ad-hoc reporting capabilities for Training
  Department to run reports to evaluate training
  data and define future reporting requirements.
• Begin analysis to define additional training
  related data that will be accessed for future
  training related reports.
• Out of Scope
• Integration with other training system
  replacements or enhancements.

23
3.1 Proposed Project Approach/Delivery Strategy

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

24
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
• 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

25
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
26
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.

27
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 users 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

28
3.4 Risk Assessment Risk Management
Risk Management
29
3.5 Governing Agreements

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

30
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 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 ABs 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.
31
5.1 Funding Breakdown

• Total Estimated Project Costs
• Expense
• Support
• Capital
• Cost of the project will be funded as follows

32
5.2 Project Timeline
20XX
20XX
Qtr 4
Qtr 3
Jul
Aug
Sep
Oct
Nov
Dec

• Develop Agreement
• Project Funding
• Technical Approvals
• Ramp Up Resource Acquisition

Project Preparation

• Application Architecture Design

Inception

• Database logical physical data model
• Web services
• Connectivity to database
• Graphics
• Custom application
• User Interfaces

Elaboration
Construction/Testing
Implementation
33
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.

34
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

35
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.

36
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

 
37
Summary

• Anheuser-Buschs 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.