aarontandani-strategicenterprisearchitecture

8/22/2019 AaronTanDani-StrategicEnterpriseArchitecture

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Strategic EnterpriseArchitecture

Aaron Tan DaniChairman, APAC - IASA

[email protected]
mailto:[email protected]:[email protected]


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PwC CONFIDENTIAL 2

2

Where are You ?Frozen in

the past

In the Abyss

Falling into

The Abyss

Leading

Climbing out of

The Abyss

Competitive

Operational &

IT spending

increases

Limited access

to information

Not competitive

Little flexibility

Uncontrollable

operational & IT

spendingChanges are hard

to implement

No Flexibility

Spending focused

on achieving

competitive

advantage

Highly robust andf lexible

infrastructure

Employing

technology to

support agile

business

operation

Implemented

Enterprise

Architecture

Spending under

control

Flexible

business

operation

Effective new

development

Architecture

blueprint in place

IT & Corporate

Governance in

place


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PwC CONFIDENTIAL 3

3

Agenda Why & What is Enterprise Architecture? Enterprise Architecture Business Drivers

Enterprise Architecture Processes Enterprise Architecture for Agile Business Forming EA Team Conclusion


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PwC CONFIDENTIAL 4

4

The Warfighter-User Pharaoh

Boss- itll only takeabout 500 years,

2 billion bricks, anda million laborers . . .But, trust me when it's

finished it will be a

wonder of the world "

Integrated EnterpriseValley of the Kings

TheEnterpriseTeam

The Past, Present, and F uture

Douglas Schmidt

Nothing new under the SUN!Same capabilities for software development & challenges


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PwC CONFIDENTIAL 5

5

Does Enterprise Architecture Matter?If the Federal Government continuesto do what we have done (i.e. build

non-architected solutions), we will

continue to get what we have (i.e. anon-interoperable, expensive, and

ever challenging tangle of data,

applications, and technology)- US Federal Government CIO Council


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PwC CONFIDENTIAL 6

6

Today IT Project Success is Rare

Source: The Standish Group International, Extreme Chaos, The Standish Group

International, Inc., for 30,000 software application projects

Time overrun: 53%

Average cost overrun: 65%

Functionality delivered on average: 67%Root caused:

Lack of Architecture standard: 78%

Lack of Business Involvement: 90%

2000 28%23% 49%

SucceededChallengedFailed

2005 34%15% 51%


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The Intractable IT Architecture Problem

IT Systems/

Applications

IT

Infrastructure

Enterprise Architecture

Architecture

Blueprint

IT

Governance

Business

Strategy

IT

ArchitectureStrategy

Business Strategy:- Not promises- Not about What to do- Focus on How to do- Have execution plan- As an initial input for EA- Continues validation andverification

Business, User &FunctionalRequirements



Plan

Define

Implement

Measure

EA Governance defined

Define the approach:-Define policies-Define processes-Define enforcement mechanism

Plan & establish need:-Document and validatebusiness strategy-Map business strategyto IT strategy-Layout governance plan

Measure & Monitor processes:-Compliance with policies-Compliance with governance-IT effectiveness metrics Deploy incrementally:

-Governance mechanism-Deployment policies-Manage organizational change



What is Architecture?a systems fundamental organization,

embodied in its components, their relationships

to each other and the environment, and theprinciples guiding its design and evolution.

Definition as used in ANSI/IEEE - 1471

Building Architecture: Models & Concepts Blueprints

Bills of Material

Building Codes

Workmanship Standards

IT Architecture: Patterns & Frameworks Blueprint

Buy Lists & Vendors

Standards & interfaces

Software Qualities (metrics)



Now, Enterprise IT Architecture definition

The enterpr ise I T architecture is theorganizing logic for data, applications, and

infrastructure, captured in a set of policies

and technical choicesto achieve the firmsdesired business goals, technical

standardization and integration.Center for Information Systems Research (CISR)

MIT Sloan School of Management


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PwC CONFIDENTIAL 1111

Enterprise Architecture Components

Business

Processes

Enterprise IT Strategy

Architecture

Blueprint

UI, Data,

Schema &

Relationship

System,

Network &

Security


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What is Enterprise Architecture?Enterprise Architecture =?= A City Architecture Strategic Architect

Town planner


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Enterprise Architecture ~ City Council Continue Security Architect

Police

Information/Data

Architect National Registry

Highway

Solution Architect

Corporations

Factories


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Enterprise Architecture ~ DBKL Continue Network/Infrastructure Architect

Water Supply

Electricity

Sewerage, etc

Software Architect

Building Architect

Application Architect Golf course designer

Theme park designer


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1. Create modular zones:

Follow a long-term cityplan that defines the key

components of the city,

such as residential,

industrial, and nature

preserves

2. Reuse and integrate

assets:

Exploit the assets that

exists already in the city

and create connectivity

3. Evolve Step by step:

Manage change by

evolving the city step-

by-step; revolutionize

only where necessary

4. Federal Governance:

Have a central zoning

board, but allow local

decisions in different

zones

City planning principles Target IT architecture blueprint

Domain Domain Domain

DomainDomain

Integration backbone

Lesson learned from City planning principles for ITarchitecture


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Once upon a time in the IT department.

Architecture /

Technology Choice

Chooser


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Impact of choosing the wrong architecture &technology choices .

Architecture /

Technology Choice

Architecture /

Technology Impact

Chooser CIOCTO


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businesses suffer and loose agility, IT loosecredibility

Architecture /

Technology Choice

Architecture /

Technology Impact

Chooser CIOCTOCEO, COOCFO, CMO

ChiefArchitect


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Architect thinking & considerations . and itsimpacts

=?Architecture /

Technology Choice

ChiefArchitect

Architecture /

Technology Impact

CxOs


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3 Key Drivers & 8 Factors for related enterprisearchitecture decision makingSkills

Availability

Third PartyProduct &

Services

availability

Tangible Costs

Customer/Business

Requirements

User

Functionality

requirements

Standards &

Methodology fit

Timeliness

LifeExpectancy


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Complexity is not in Technology but inBusiness-IT Alignment

The complexity

lies not in thecomprehension

or availability of

IT but

in how

successfully IT

can be leveraged

and aligned to

changing

business

demands that are

often moving

targets.

Based on

portfol io-based

prior it izat ion

Need for

business

involvements &requirements


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Business-IT Alignment Example

Business Information Supply-chain Processes (for Supervision & Regulation dept)

ExternalReporting

BusinessOperations

InternalReportin

g

IndustryAnalysis

Activities Policy-making

Business

Performance

Drivers

Quick-time-to-market Responsiveness

Business

StrategiesProcess Standardization

& Interoperability

Transparency & Accessibility

of Information

Digitization

(e-enablement)

Initiatives /

ProjectsInfo Supply-chain

AutomationBI / Reporting

Integrated Communication

& Collaboration

Capabilities

Business

IT

Engagement-facing Internal Operations

Review FI

practices

Monitor FI key

activitiesPrepare FI

reports... Initiate approval

workflow

Present

report to FI

Analyze & profile

benchmarks...

Alerts Notification

Workflow & Routing

Data cleansing

Analytical tools

Data mining & visualization tools

Role-based secure access

Reporting tools

Content management

Extranet portal Intranet portal

IW productivity tools

.

Content indexing & search

Mobile connectivityE-Knowledgebase

IT Services

Application Services

Infrastructure Services

Portal/Dashboard ERPReportinggenerators

Enterprise & desktopsearch Event notification

Content delivery

Workflow DirectoryData

transformationAuthentication Web services

Remoteaccess OA desktop tools

Business ArchitectureProcess view of the key activities, flows and performance measurements

Services/Solutions ArchitectureCapability view of the business/IT domains, services, and interfaces

independent of underlying technologies(*also includes the Information Architecture)

Technology ArchitectureImplementation view of the technologies used to provision the services

Solution

1

Solution

2

Solution

n

.


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The Architecture-Driven approach

System inProduction

BusinessRequirements

Technical

Architecture

Solution

Architecture

Business

ArchitectureScenar ios Scenarios

Architecture

Management of the complexityDistribution of responsibilities

Accommodation for future changes

Architecture Team Responsibilities


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Basic Principles Architecture Layering

Comprehension of the system

Divide & Conquer





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Basic principles - Abstraction &Encapsulation

Parallel development

Incremental approach




Responsibilities

Collaborations


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Basic principles - Design for change

Robustness

Flexibility

Future modifications

Anticipated

Unanticipated

Change

Cases

Generic

Behavior





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Enterprise Architecture processesUnderstand

Drivers thru

Scenarios

Create

Architecture

Evaluate

& Decide

Business goals

& Strategy

Business scenarios

Characteristics

of business

Risks

Architecture goals

Application

requirements

Integration needs

Execution scenarios

Scenarios

Architecture

needs

Risks

Scenarios

Changecharacteristics

Architecture

Creation

Reviews, change

scenarios,

prototypes

ArchitectureEvaluation

& Decision

DRIVERS

Architecture

Blueprint

IT

Governance

Business

Strategy

IT

Architecture

Strategy

EnterpriseArchitecture


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Business impact Target

ITece

Target

Typical Business path: creates an inefficient ITarchitecture Unrealistically fast IT responserequired to deliver businessvalue Results in unsupportablespaghetti IT systems

Typicalbusinesspath

Typical IT path returns: Long lead time to delivery with little business impactduring the interim Solution likely not well aligned with business needs

TypicalIIT path

ArchitecturalVersion 1



Target to-be:Enterprise Architecture is tobalance between IT &

Business impact to achievehigh efficiency

City-planningapproach

Path to EA: Migrate via managed evolution

CurrentCue


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Achieving business agility requiresagile IT architecture

Increasing business margins requiresoperational efficiency

IT investment must provide theprice/performance response

To win the competitions requiresEnterprise Architecture Strategy

Sustaining business growth requirestechnology leadership

Why corporations are forced to rethink their EnterpriseIT strategy?

It is not the strongestof the species thatsurvive, nor the mostintelligent, but the onemost responsive tochange

Charles Darwin


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What major Analysts say on the businessbenefits of EA?1. Lower IT Operating Costs1) Giga: +20% savings in annual IT operating budget

2) Giga: +10% savings of project cost and +25% savings of project elapsed timewith non-standard architecture

3) Gartner : +20% savings in infrastructure costs

2. Enabled Strategic Agility & Growth1) Gartner : + 30% improvement in ability to deal with changing external drivers

2) MIT: Correlated top performers with high capability IT infrastructure &architecture standards

3. Higher Productivity through well architected IT &infrastructure1) Forrester: 40% productivity gap between leaders and laggards in IT

investment


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Reduce Capital Outlays Consolidation of hardware Consolidation of software licenses

Volume purchase agreements

Reduce Support Costs Shared know-how Less training

Fewer and easier upgrades

Faster problem solving

Less vendor administration

Enable Superior Operations Backup and recovery

Software asset management

Effective Test and validation Efficient Help Desk Standard & Policy

Improve System Management Efficient Capacity planning

Better Performance management

Improved Security management Simpler Configuration management

1. Lower IT Operating Costs with EnterpriseArchitecture


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2. Enable Strategic Agility & Growth Improve Interoperability

For example, GE: Well-architected Enterprise IT infrastructureenables them to integrate so many diverse businesses so well.

Source: CIO Insight

Better Scalability

For Example, Dell: Flexible architecture and IT Infrastructureallowed them to grow dramatically and plan to double theirsales.

Source: Forrester

Faster Time-to-Benefit/Faster Time-to-MarketFor example, FedEx Ground: Poster child for the Agile EnterpriseArchitecture; entered ground delivery market to become #2 in 12months.

Source: Fortune, Information Week


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3. Higher Productivity through well architectedIT & Infrastructure Technology-driven productivity

1) IT Architecture and Infrastructure are key components *- For example: In the stiff competition, CEMEXProfits of 16%

from revenue compared with competitors' only 3% as a resultof STANDARD in technology architecture and ITinfrastructure investments

Tech-cautious firms are losing competitiveness1) Leaders get 60% more productivity and profit results from

their competitors

- For example: Compaq vs. DellCompaq produces only8% more revenues than Dell with:

- 75% more assets and

- 85% more employees

Source: Forrester, The Arnold Group*


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The Key Stakeholders of EnterpriseArchitecture team

Enterprise Architecture Team

CEO/COO/CMO/CFO

Vice Presidents

Directors

Business Strategies

Business Managers

Business Analysts

Business Strategy Team

CTO/CIO

Strategic Architect

Security Architect

Information/Data Architect

Solutions Architect

Infra/Network Architect

Software ArchitectApplication Architect

IT Governance team

Enterprise ArchitectureStrategy Team


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IT project budget

Percentage on the

entire companybudget

IT Budget reallocation from "Run theCompany" to Support the Company"by refocusing on projects which drive

metrics that matter

establishing clear architecture

governance linked to business initiative

portfolio

Architecture blueprint to standardize thetechnology, platform & processes

retiring redundant applications

stopping messy projects early

~ 10

~ 90

75

25

Today Target

"Grow"

IT Run thecompany

IT Support thecompany

Enterprise IT budget to support business agility


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Next Step for Enterprise Architecture-EALC

Get Top Management Support Agree on EA is important

Form EA team as part of IT & Business Strategy Team Support the business strategies and operations

Set business KPI to achieve

Business & IT Alignment Measure KPI and doing alignment to business drivers & strategy

Come up with IT Governance as part of Corporate Governance Rules, Policies, Guidelines & Enforcement

Come up with Architecture Blueprint i.e. standard practices

Business Architecture Services (Information/Data) Architecture

Technology Architecture

Implement EA Enabler Service Oriented Architecture, etc

Infrastructure, hardware and software consolidation

Get Top

Management

Supports

Form EA

TeamBiz & IT

AlignmentEstablish ITGovernance

ArchitectureBlueprint ImplementEA Enabler


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Key Questions CxOs & Executives must askEnterprise

Architecture

Framework

High Capability

IT Infrastructure

Technology

Architecture

Effectiveness

Source: The Arnold Group

1) Do we have an EA

planning process?

2) Do we have IT

governance in

place?

3) Who are the EA

stakeholders?

4) How do we know

its working?

1) Do we have

formalizedArchitecture Blueprint?

2) Do the IT &

Architecture elements

match how we run our

business?3) How do we know that

our technology

investment support

our business?

1) Are we reducing IT

operating costs through anIT Infrastructure

investment? ROI?

2) Are architectural

standards, platforms &

patterns maximized agility

and interoperability?

3) Can the IT infrastructure

support the agile business?


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Thank You

This presentation is for informational purposes only. IASA MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

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