art architecture transformation 1932534

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

The Art of Architecture Transformation


Oracle Safe Harbor

The following is intended to outline our general product

direction. It is intended for information purposes only, and

may not be incorporated into any contract. It is not a

commitment to deliver any material, code, or functionality,

and should not be relied upon in making purchasing

decisions. The development, release, and timing of any

features or functionality described for Oracle’s products

remains at the sole discretion of Oracle.


Welcome • Hello and welcome to our webcast in enterprise architecture. I am Peter Heller, a Senior

Director, in Oracle Technology Marketing. Our topic today is “The Art of Architecture

Transformation.”

• As we all know, large scale transformations can be very challenging. These challenges are

not only compounded by a wide array of new technology components and high business

expectation to get it right the first time, but also for planning and executing something that

your organization – or you - have never done!

• Today, we want to explore the art and science of large scale architecture planning. Our

speakers are practicing enterprise architects, and will share their experiences and lessons

learned in rebuilding entire IT organizations and infrastructure.

• They will discuss this in terms of a standardized approach that includes business-led

architecture planning, change management, and business communication. All of which are

critical to ensure that your projects stay supported and funded! Let me introduce our

speakers.


Your Oracle Speakers

Hank Margolis Senior Director

Oracle Business Architecture

Enterprise Solutions Group

Alan Levine Senior Director

Oracle Enterprise Architect

Advanced Technology Services


Introductions • Joining me today is Alan Levine, Senior Director, and Oracle Enterprise Architect from

Oracle’s Advanced Technology Services group.

Alan has 25 years experience in the IT industry, including 17 years as a technology and architecture leader in Oracle

Consulting. Alan advises large enterprises through complex IT transitions including, leading technology architecture

assessments, developing future state architectures, and implementation roadmaps tightly aligned with an organization’s

business goals. Alan’s experience spans a wide variety of industries and technology domains.

– Welcome Alan. <Alan acknowledges>

• And also joining us is Hank Margolis, Senior Director, Oracle Business

Architecture from Oracle’s Enterprise Solutions group.

Hank has 8 years working in Oracle’s Enterprise Solutions Group, and is a founding member of the Oracle Business

Architecture team. Prior to joining Oracle, Mr. Margolis served as CEO of two internet start-up companies, was VP of IT,

Operations, and Consulting for a wireless company, and ran the consulting practice at an applications vendor.

– Welcome Hank. <Hank acknowledges>


Agenda

• Why “Architecture Transformation”?

• How can Enterprise Architecture Help?

• A Methodology for Architecture Transformation

• Summary


Architecture Transformation

Architecture “The fundamental organization of a system,

embodied in its components, their relationships

to each other and the environment, and the

principles governing its design and evolution.” – ANSI/IEEE Std 1471-2000

Transformation “The act of changing form,

appearance, or structure.”

– Random House


IT Driven Architecture Transformation

Client Server

N-tier

Internet

Grid Cloud

IT has been setting the course

• IT has been driving technology

change for the last 30 years

• Businesses adopted technology

innovations because they could

afford to or out of necessity to

keep up with their competitors

• Transformation was mostly

focused on new initiatives,

driving an ever expanding IT

portfolio


Business Driven Architecture Transformation Has IT been too aligned with the business?

• Line of business centric deployments

• Redundant applications and

technology platforms

• Stove-piped infrastructure with under-

utilized resources

• High levels of investment in

integration to tie systems together

limits ability to invest in innovation

• Growing challenges with maintaining

agility and responsiveness to

changing business conditions


Business as Usual is No Longer an Option

2008 • The global financial crisis and US

recession changed everything

• Limited refresh and investment over the

last 4 years

• Many organizations now have a short

term cost cutting focus adding

increased pressure on IT without adding

resources

• Competitive business pressures

continue to drive new technology

initiatives


IT Operating Structures are Outdated

• The stove pipes we created during the “age

of technology exuberance” have become

significant obstacles to realigning IT to

meet today’s business needs

• IT and Business leaders must come

together and create more efficient ways to

architect, plan, build, and operate

technology

• We need transformational approaches to

replace the complexity we have created

A move towards simplicity is required


The New IT Operating Model

• IT held accountable to an Enterprise

Strategy

• IT empowered to innovate

• IT results measured by business

capabilities delivered, agility, and

transparency

• Business embraces IT ability deliver

both innovation and cost savings

– Note: Innovation and cost savings

are NOT mutually exclusive!

Empower and Measure


Agenda




• Summary


Enterprise Architecture is a Science

One size Fits All Architecture

Reference Architec-

tures

Tools

Methods

• Cookbook based Enterprise

Architecture leads to “Architecture

Shelfware”

• EA practitioners must not lose site

of the core principle of Business

Alignment

• Corporate culture and the IT

Operating Model have a significant

impact on an organization’s ability

to embrace and effect change


Enterprise Architecture is an Art

• People

• Organization

• Industry

• Budgets

• Regulatory

• Corporate culture

• Tolerance for risk

Understanding your organization heavily influences EA


• Are business capabilities impacted?

• Are critical service level agreements being missed? Real?

•Can IT deliver an actionable strategy in alignment with the direction of the business?

•Do we have the methods and tools to be successful? Win?

• What is the financial impact of the problem?

• What will it cost to fix?

• How long will it take? Worth it?

Is It A Problem We Should Solve?


Agenda




• Summary


Business Architecture

• What does the business need to do that

it can’t do today?

• Why do they need to do that? (What

benefits will the organization enjoy?)

• What changes need to occur in order to

meet the business requirements?

• Why should they be confident this will

work?

• How we help them justify the investment

needed?

Why is the business investing?


Achieving Architecture Financial Objectives Art: Balancing end state with investment and payback

Payback Period

Investment

Earning

Maturing


Architecture Vision

What happens

if you don’t have an architecture vision?


What is an Architecture Vision?

• Starts with a big idea

• Is aligned with a set of business challenges

• Includes a technology and financial perspective

• Is grounded in architecture principles

• Solves a real problem

A Transformative Architecture Vision …


Architecture Vision Example: IT Simplification

Example

• Large Global Financial Institution

Business Drivers

• Reduce costs

• Reduce IT complexity

Architecture Vision

• Build a private cloud for databases

and middleware based on Oracle’s

engineered systems

• Simplify IT via standardization and

consolidation to replace an aging

infrastructure


Current State Analysis

• Current state analysis helps

answer questions such as:

– How big is the problem?

– How much is the problem costing

me today?

– Do I really have a problem?

– How near or far am I from my

Architecture Vision

• A technology roadmap needs to

have a starting point

• Current state analysis helps

identify the best targets to start

with

• A business case for architecture transformation

requires reliable current state financial data

• Current state information helps determine if the

problem is worth solving


Current State Example: Infrastructure Consolidation

• Line of business based

deployment models have given

rise to huge inefficiencies in

today’s IT portfolios

• Server sprawl

• Underutilized server capacity

• Complex multi-vendor

environments with redundant

technologies deployed

• Collecting the right data points can

help us make the case for

Architecture Transformation

• Lack of good data leads to

ineffective IT decision making


Future State benefits should be measurable, deliver business

value, and align with our Architecture Vision

• How much will we save

the business?

• Where have we

reduced costs and

complexity?

• Are we enabling new

capabilities?

• Have we replaced aging

and inefficient ones?

Consolidated Database Servers


Leverage Proven Architectures Speed to delivery drives the business case

Eliminate redundancy and complexity by building on proven reference architectures


Roadmap

• What do we do first?

• When do we realize the

financial benefits?

• Where have we realized

improved capabilities?

• Where is the finish line?

• Today’s future state is

tomorrow’s current state

When do we start realizing the benefits?


Governance

• Value needs to impact the business

– If it’s cost takeout, it needs to take out their cost, too

• Be realistic about roles and responsibilities

– For example, the value of data stewardship needs to be

clearly understood

• Measure, measure, measure

– Establish performance metrics which demonstrates the

value created and report on it frequently to key

stakeholders

• Insure enrollment from impacted people by including

them in the business and enterprise architecture

How do we sustain the value over the long term?


A Practical Approach to Architecture Transformation

• Oracle Architecture Development

Process provides prescriptive guidance

to help you move forward

• An iterative approach enables rapid

adoption of changing business

conditions

• We stay focused on delivering results

• It might take more than one iteration Oracle Architecture

Development Process


Agenda




• Summary


Architecture Transformation is a Journey


What Works?

• Top Down Strategy

– Executive sponsorship and mandate

– Corporate strategy alignment

• Bottom Up Strategy

– Guarantee quality of services

– Economics will win them over

• Speed

– Leverage automation and change

management

– As money gets more “expensive,”

payback periods get shorter

Maximize your likelihood of success

Fix Problems that Need to be Fixed

• Problem is real, we can do it, it has a

financial payback

• Demonstrable cost savings with

reasonable payback periods, time,

and level of investment

• Functional changes to specific

business processes yielding improved

efficiencies or customer service


Summary

• Understand and measure the business

impact of architecture transformation

• Align closely with culture, change and risk

tolerance, and financial realities

• Fit within your organization’s operational

model

• Develop clear measurable impact and

provide a mechanism for reporting on this

impact Take the initiative!


Key Takeaways Leverage Oracle’s Portfolio of EA Assets

People

Certified Architects,

Experienced Advisors

Process

Best Practices,

Practical Methodology

Portfolio

Tested Principles, Trusted Artifacts


To Learn More

Oracle EA Projects & Papers: oracle.com/goto/EA Oracle Reference Architectures: oracle.com/goto/ITStrategies

Twitter twitter.com/OracleEAs

Facebook facebook.com/OracleEA

LinkedIn Oracle Enterprise Architects – A Public Discussion Forum

Oracle’s EA Blog blogs.oracle.com/EnterpriseArchitecture


Thank You

art architecture transformation 1932534

Documents

oracle andor

oracle consulting

enterprise architecture

oracle technology marketing

sole discretion of oracle

oracle safe harbor

architecture leader

welcome alan