Dr. Richard Frost Global Director, Systems Development and Program Management Driving Global IT Performance with the CMMI for Acquisition November

1.IT Executives must continuously drive Innovation, Efficiency, and Security in their business and agency 2.IT Executives must consciously manage the balance of their internal staff and supplier sourcing 3.GM drives innovation and performance with and Integrated processes based on the CMMI-ACQ 1.IT Executives must continuously drive Innovation, Efficiency, and Security in their business and agency 2.IT Executives must consciously manage the balance of their internal staff and supplier sourcing 3.GM drives innovation and performance with and Integrated processes based on the CMMI-ACQ

GM builds “Gotta-have” Cars and Trucks 2

GM Continues to Drive Innovation GM Continues to Drive Innovation 3 IS&S drives technology for our business

GM is a complex global business GM is 24x7 – we are always working somewhere. 4 About 260,000 employees worldwide Over $181 billion revenue in 2007 Products sold in more than 200 countries Sold more than 9 million cars and trucks in Manufacturing facilities in 35 countries 14,000+ dealers $90 billion of direct materials purchased annually Approximately 5,000 parts in each vehicle

GM IS&S: Strategic Hub for Technology 5  Enable Innovation Globally  Drive Simplification, Standardization and Collaboration

Evolution of IT and General Motors ITSupplier First Generation Second Generation Third Generation 2003  Third Generation 2003  ITSupplierITSupplier ITSupplierITSupplier ITSupplierITSupplier ITSupplierITSupplier ITSupplierITSupplier IT Supplier IT Supplier CommonEnterpriseManagementProcessesCommonEnterpriseManagementProcesses ITSupplierITSupplier ITSupplierITSupplier ITSupplierITSupplier ITSupplierITSupplier ITSupplierITSupplier IT Supplier IT Supplier Third Generation Goals: Increase agility Increase agility Build the best partnership with the business Build the best partnership with the business Quickly take advantage of new technologies Quickly take advantage of new technologies Assure the highest quality of our systems Assure the highest quality of our systems 6

GM leveraged CMMI for Development Capability Maturity Model ® Integration Capability Maturity Model ® Integration 7  Maturity Model for software development organizations  Chartered by US government to address software failure  Developed by the Software Engineering Institute at CMU  Provides proven best practices and growth path  Provides standard independent appraisals and ratings

IT Already Sources most of their Budget Global IT Spend Source: Forrester 75% of every IT dollar is spent on Acquisition

Exsiting Models Focused on the Developer – not the ‘Customer’ 9 CMM, CMMI SPICE IEEE COBIT ITIL Findings: Enterprises were acquiring most systems Models focused on development and operation Firms were marketed proprietary models Industry was looking for a ‘customer’ model General Motors partnered with: General Motors partnered with: Software Engineering InstituteSoftware Engineering Institute US Department of DefenseUS Department of Defense NASANASA Industry Leading SuppliersIndustry Leading Suppliers To develop a maturity model for the Customers of IT Sourcing

Why is Acquisition Different? Build Requirements  Time lag – business change  Limited supplier knowledge  Poor requirements communication  Rigid requirements (whatever is in the contract)  Limited customer contact  Drive to deliverable signoff RFP GAP Requirements Build In-House Development Acquisition  Inherent business knowledge and relationships  Willingness to accept ambiguity and risk  Consistent IT project team  Flexibility with scheduling  Frequent communication  Changes are easy

Supplier CMMI for Acquisition (CMMI-ACQ)  Maturity Model for organizations that acquire systems  Leverages best practices of industry and CMMI  Helps customers ensure that they retain core competencies to be successful when they source  Drives maturity for the combined acquirer/supplier team 11 Acquirer CMMI-ACQ CMMI-DEV

Acquirer & Supplier Maturity Required 12 Technical & Management Skill  Success depends maturity of suppliers and the customers!  Data reveals: customers maturity significantly affects success

Levels of the CMMI ® -ACQ Level 1 Initial or Performing Unfocused Level 2 Managed Basic Acquisition Project Management Level 3 Defined Acquisition Process Standardization Level 4 Quantitatively Managed Quantitative Management Level 5 Optimizing Continuous Process Improvement Adapted from a chart by the Software Engineering Institute, Carnegie Mellon University  Provides a proven framework of capabilities and maturity  Provides a growth path to improve  Capabilities build at each layer to improve results 13

CMMI for Acquisition CMMI Model Framework (CMF) 16 Project, Organizational, and Support Process Areas Solicitation & Supplier Agreement Development Acquisition Requirements Development Acquisition Technical Management Agreement Management Acquisition Validation Acquisition Verification  A structured framework to drive the capabilities required to be an effective Customer of IT  Defines maturity levels and appraisals to guide improvement 14

 Implementing the model required structural change and global standardization Organizational Structure Common Global Processes Common Service Agreements Continuous Improvement Implementing CMMI-ACQ for GM Structure Processes Contracts 15

GM Acquisition Competencies  Requirements: Partnership and knowledge of business  Architecture : Own and drive your technology and reuse  Project Management: Plan, manage, and drive results  Contract Management: Own the engagement terms Project Management Contract Management Requirements Architecture 16

Results  CMMI-ACQ has driven substantial benefits for GM Strong business knowledge and partnership Strong business knowledge and partnership Control of Strategy, Architecture, and Project Management Control of Strategy, Architecture, and Project Management Standardized project and supplier management - Globally Standardized project and supplier management - Globally Less time “RFP-ing” – more time solving IT problems Less time “RFP-ing” – more time solving IT problems Very high project delivery and success Very high project delivery and success 17

Dr. Richard Frost Global Director Systems Development and Program Management Thank you! GMC Cadillac Saturn Vauxhall Opel Buick Daewoo Pontiac Hummer Holden Chevrolet Saab 1 in every 6 cars in the world is GM