1/36 business/it alignment in the graal project pascal van eck, roel wieringa (dept. of computer...
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Business/IT alignment in the GRAAL project
Pascal van Eck, Roel Wieringa (Dept. of Computer Science, Information Systems Group)
SIKS course ‘Information & Organization’, Dec. 6-8, 2004, Vught, The Netherlands
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Goal of this presentation
• Present a theoretical perspective on business/IT alignment– … and introduce a few concepts from
strategic management
• Present the GRAAL framework as a means for alignment research
• Present case study observations about alignment in practice
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Agenda
• Goal of this presentation• Theory: alignment according to
Henderson & Venkatraman• The GRAAL project and framework• Case study observations• Conclusion
Goal Henderson & Venkatraman The GRAAL framework Observations Conclusion
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What is business/IT alignment?
• Business/IT alignment:
Allocation of IT budgets such that business functions are supported in an optimal way
Goal Henderson & Venkatraman The GRAAL framework Observations Conclusion
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Strategy (and tactics) 1/2
• Strategy: external position of the organization– Product/market combinations– Make-or-buy decisions– Human resources
• Impact of decisions: years
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Strategy (and tactics) 2/2
• Tactical level: realizing the strategy by internal means– Impact of decisions: month(s) – 1 year– Example: organization structure
• Operational level: day-to-day decisions– Impact of decisions: day(s) – month(s)– Example: hire temps in case of sudden
increase in sales
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Beware: strategy hierarchy
• One person’s tactical problems are another person’s strategic problems– E.g., corporate tactics become strategic
goals of business units …– … and so on, and so on.
Goal Henderson & Venkatraman The GRAAL framework Observations Conclusion
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8/36Taken from: Henderson, & Venkatraman, (1993). Strategic alignment: Leveraging information technology for transforming organisations. IBM Systems Journal, 32(1):472-484.
Goal Henderson & Venkatraman The GRAAL framework Observations Conclusion
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Henderson & Venkatraman’s take home message
• Similar to business strategy, IT strategy has to consider both internal as well as external aspects
• Both internal/external alignment as well as functional integration must be taken into account. Only one of them is not sufficient
Goal Henderson & Venkatraman The GRAAL framework Observations Conclusion
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Goal Henderson & Venkatraman The GRAAL framework Observations Conclusion
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Agenda
• Goal of this presentation• Theory: alignment according to
Henderson & Venkatraman• The GRAAL project and framework• Case study observations• Conclusion
Goal Henderson & Venkatraman The GRAAL framework Observations Conclusion
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Project GRAAL
• Guidelines Regarding Architecture ALignment
• Goal: discovery of patterns in enterprise-level application architecture
• Based on case studies in Dutch financial service organizations and large government organizations
Project page: http://is.cs.utwente.nl/GRAAL
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What is a system?
• A system is an assembly of components that behaves as a whole– There is synergy between components …– … and this synergy results in emergent properties– A product is a system with properties that are
useful for someone
• Examples– The system of law– The Dutch national soccer team uses a 3-3-4
system– ‘A systematic way of working’
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System dimensions
• System aspects: externally observable properties
• Aggregation hierarchy: system composition in terms of components
• System life cycle: from conception to disposal
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System life cycle
• Typical stages in the life of a system• During design, we should deal with all stages
ConceptionAcquisition
(build or buy)Usage
Maintenance(Corrective and perfective)
Disposal
Time
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Software product aspects
• Aspects are what observers can observe• Service = interaction
– Behavior: in what sequence (time)– Communication: with whom (space)– Meaning: about what
SW product aspect
Services Quality
Behavior Communication Meaning For user For developer
Usability Efficiency Security .... Maintainability Portability ...
The only aspect peculiar for symbol-manipulating systems
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Aggregation
Aspect and aggregation are independent
Compositesystem
SystemExternalentity
Externalentity
Component
BehaviorCommunicationMeaningQuality
BehaviorCommunicationMeaningQuality
BehaviorCommunicationMeaningQuality
BehaviorCommunicationMeaningQuality
... ...
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The meaning of aggregation• C is a component of A if
– C provides service to A– A encapsulates C
• If we drop encapsulation, we get layering
C B CA1 A2
C
BA1 A2
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Architecture layers
• Layer structure crosses worlds• This is not possible with encapsulation
Business environment
Business
Business software
SW Infrastructure
Physical infrastructure
Primaryserviceprovision
Social world
Symbol world
Physical world
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Structure of the business system layer
Business environment
Business
Applications: Functionality
SW Infrastructure
Physical infrastructure
Primaryserviceprovision
Social world
Symbol world
Physical world
Information systems: Data
Business systems serveparticular user groups
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Structure of the SW infrastructure layer
Business environment
Business
Business systems
Physical infrastructure
Primaryserviceprovision
Social world
Symbol world
Physical world
Infrastructure servesall usergroups
OS, Network software
DBMS, WFMS, Directory server, Web server, ...
Middleware
Office SW, Browser, ...
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The physical world is BIG!
Business environment
Business
Business software
SW Infrastructure
Processors, peripherals, UI devices, wires,electromagnetic waves, wireless access points, ....Radio network, electricity network, telephone network, water supply network, gas supply network, sewage network, road network, ....Buildings, ... machine tools, ....
Primaryserviceprovision
Social world
Symbol world
Physical world
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The framework
ConceptionAcquisition
Usage & MaintenanceDisposal
Services
Behavior Communication Meaning
Quality
Usability ... Maintainability ...
System life
Aspects
Business environment
Business
Business SW (applications & information systems)
SW infrastructure (OS, NW, MW, DBMS, WFMS, ...)
Physical infrastructure (Computers, network, access points, ...)
Ser
vice
pro
visi
on
Socialworld
Symbolworld
Physicalworld
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Agenda
• Goal of this presentation• Theory: alignment according to
Henderson & Venkatraman• The GRAAL project and framework• Case study observations• Conclusion
Goal Henderson & Venkatraman The GRAAL framework Observations Conclusion
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Documents studied
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Main findings• Development of application level and
infrastructure level are different– Application level:
• Event-driven• Structured according to user groups
– Infrastructure level:• Time-triggered• Structured according to technology domains
• Structure development org. should follow structure of client organization
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Application alignment
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Goals
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Problems
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Goal Henderson & Venkatraman The GRAAL framework Observations Conclusion
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Two perspectives
IT applications
Business strategy
Business processes
Business infrastructure
1
1
IT infrastructure
IT strategy
2
2
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IT development organization and client organization: observation
• Development organization before reorganization:– One department per client group– Per department: subdepartment per development
phase (account managers, architects, designers, programmers)
• Development organization after reorganization:– One department per development phase– Per department: subdepartment per client group
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Conway
• Conway’s Law:– “Structure of designed artefact is
isomorphic to structure of development team”
• Consequence of restructuring:– Structure development organization no
longer fits architecture (not isomorphic)– Clients miss their point of contact– Old structure re-emerges in ad-hoc fashion
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Agenda
• Goal of this presentation• Theory: alignment according to
Henderson & Venkatraman• The GRAAL project and framework• Case study observations• Conclusion
Goal Henderson & Venkatraman The GRAAL framework Observations Conclusion
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Conclusion
• GRAAL provides simple framework for studying business/IT alignment
• Case study observations:– More than one alignment perspective, this
often results in mis-alignment– Isomorphism between development
organization and client organization desirable
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Literature• ‘Strategic Alignment Model’:
– Henderson, & Venkatraman, (1993). Strategic alignment: Leveraging information technology for transforming organisations. IBM Systems Journal, 32(1):472-484.http://researchweb.watson.ibm.com/journal/sj/382/henderson.pdf
• Extension of ‘Strategic Alignment Model’:– Maes, R., Rijsenbrij, D., Truijens, O. and Goedvolk, H. (2000). Redefining
business–IT alignment through a unified framework. PrimaVera Working
Paper 2000-19, Univ. of Amsterdam, Dept. Accountancy and Inf. Mngt.http://imwww.fee.uva.nl/~maestro/PDF/2000-19.pdf
• GRAAL results:– Eck, P. van, Blanken, H. and Wieringa, R. (2004). Project GRAAL:
Towards Operational Architecture Alignment. Int. J. of Cooperative Information Systems, 13(3):235-255.
http://is.cs.utwente.nl/GRAAL/eck_blanken_wieringa_ijcis04.pdf
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Pascal van Eck
Department of Computer Science
University of Twente
P.O. Box 217
7500 AE Enschede
The Netherlands
Email: [email protected]
http://www.cs.utwente.nl/~patveck