business-driven, it architecture transformation › events › va-18 › special-events › ... ·...

William UlrichPresident, TSG, Inc.Partner, Business Architecture AssociatesPresident, Business Architecture GuildFellow, Cutter ConsortiumCo-chair, OMG Architecture-Driven Modernization Task Force

Business-Driven, ITArchitecture Transformation

3/19/2018Copyright TSG, Inc. 2018

1

• Defining business vs. IT architecture, alignment and transformation

• Business risks, challenges and assessing technical debt

• Role of business architecture, from strategy definition through solution deployment

• Leveraging the business architecture / IT architecture transformation framework

• Framing IT architecture transformation through a business perspective

• Shifting to a business-driven, IT transformation approach

3/19/2018

2

Copyright TSG, Inc. 2018

Today’s topics

Business Architecture Definition

Business architecture represents holistic, multidimensional business views of: capabilities, end-to-end value delivery, information, and organizational structure; and the relationships among these business views and strategies, products, policies, initiatives, and stakeholders.1

IT Architecture Definition

“Blueprints of the technologies, data structures and applications that collectively comprise the information technology (IT) environment of an enterprise.”2

Business / IT Architecture Alignment

State in which automated systems and data architectures fully enable business strategy, business capabilities and stakeholder value

Business / IT architecture transformation is the means of achieving “alignment”

3/19/2018

3


Terminology Level Setting: Business / IT Architecture Alignment & Transformation

(1) Source: Federation of Enterprise Architecture Professional Organizations, adopted on January 14, 2017, after passing a vote by FEAPO Member Organizations.

(2) Source: “Business Architecture: The Art & Practice of Business Transformation”, MK Press, 2010

Business Architecture Domain Overview: Mapping the Business Ecosystem


4

Source: A Guide to the Business Architecture Body of Knowledge® (BIZBOK® Guide), v6.0, Part 1, Business Architecture Guild

Initiatives & Projects

Stakeholders

Products & Services

Vision, Strategies &

Tactics

Metrics & Measures

Policies, Rules, Regulations Capabilities

Information

Value Streams

Organization

Business Architecture

Business Architecture Differentiators Business architecture is foundational, transcending a given initiative or scenario

Business architecture is reusable

Business architecture scales horizontally and vertically

Business architecture is not constrained to internal views

Business architecture improves other disciplines

Business architecture is politically agnostic


5

Consider one value stream example:

“Take a Trip” value stream traces entire customer end-to-end journey

*Source: Business Architecture Guild, Business Architecture Quick Guide, 2017

Breaking Down IT Architecture


6

Blueprints of data structures, applications and technologies that represent current and / or target state of IT deployments

Application architecture

Data architecture

Technical architecture

Shadow systems

IT architecture should not be confused with the IT organization

The IT organization is just another business unit in a business ecosystem

IT Architecture

Desktop & business systems out of IT’s control

Applications, services & orchestrations

Physical & logical data deployments & representations

Underlying platforms & technologies

Monthly

Process

ing

Cycle

Tech

nica

l A

rchi

tect

ure

Data

Arc

hite

ctur

e3/19/2018Copyright TSG, Inc. 2018

Quickly Sorting through the Architecture Jargon: Why it Matters

App

licat

ion

Arc

hite

ctur

eBusiness Automation & Services View

Data View

Platform & Enabling Technology View

Initiative or Portfolio Architecture Perspective

Ability to deliver real business value is realized and enhanced through formal integration of business and IT at the architecture level

Ente

rpris

e A

rchi

tect

ure

*Source: “Business Architecture: Putting “Business” into Enterprise Architecture”, Ulrich, W. & Soley, R., May 2016, CIO Review

Source: Business Architecture GuildBIZBOK® Guide, v6.0, Part 1

7

Solution Architecture

Business ArchitectureBusiness View

Technical Debt Results from applying IT architecture changes that degrade data and application architectures over an

increasingly elongated timeframe

Each set of changes increases time and cost of applying future changes, curtailing a business’s ability to accommodate strategic objectives and business vision

Technical debt is driven by: IT architectures that have grown increasingly misaligned to business model

Continuous pressure to apply more changes to IT architectures never meant to support rapidly shifting business models

Lack of executive understanding that technical debt is being incurred and that it presents a significant and growing risk to the business

3/19/2018

8


How a Business Accrues Technical Debt

• Inability to address customer discontinuity across business units and product lines

• Diminished capacity to manage risk, regulatory compliance, change management and crises*

• Business costs escalate as the business works around core IT systems

• IT solutions result in more business disruptions than they resolve

• Essential requirements are applied inconsistently or missed altogether

• Ongoing IT investments appear fully disconnected from priority business challenges and objectives, creating significant business risks

3/19/2018

9


Technical Debt Results In:

*Business Architecture Now, Not Later? A Lesson from Crisis ManagementBrightTALK Recorded 13 April 2017

https://www.brighttalk.com/webcast/12231/253795


10 Evaluating Technical Debt From a Business Perspective

Complete IT architecture replacement required, which triggers major, highly disruptive capital investment

Major IT portfolio investment needed to align business & IT architectures & address IT architecture degradation

Continuous business / IT architecture alignment, with minimal disruption and capital investment

Degradation of data, application and technical architecturesLeve

l of I

T &

bus

ines

s ar

chite

ctur

e m

isal

ignm

ent

Matrix represents IT architectures as a whole or portions thereof

Application systems are plotted on this matrix

Initiatives may use this plotting approach based on the applications impacted

Source: Business Architecture Associates, Inc.

3/19/2018

11


IT Investments Must Look Beyond Technical Architecture to Address Technical Debt, Business Challenges

• Current-to-target state transformation comprises many individual initiatives moving towards common business objectives, in cohesive fashion, over extended period of time

Application Architecture

Technical Architecture


Data Architecture

Current State / Target State Transformation Paths

SOA

, Clo

ud,

Virt

ualiz

atio

n

Solu

tion

valu

e gr

ows

whe

n yo

u m

ove

up a

rchi

tect

ural

sta

ck

“Rainbow Model” represents transformational journey that concurrently transforms business architecture and data, application, application and technical architectures

When journey only travels across technical architecture, business value is highly constrained

Source: “Architecture-Driven Modernization: Transforming the Enterprise”, Dr. Vitaly Khusidman, William Ulrich, 2008, http://www.omgwiki.org/admtf/doku.php

http://www.omgwiki.org/admtf/doku.php

• At many organizations, IT will spend 10’s or 100’s of millions of dollars annually, whether those investments are business-driven or not

• It is incumbent upon the business to ensure that these investments are business-driven and deliver business value by:

• Framing investments in business terms that clearly articulate and reconcile business objectives and investment focal points within the business, before the discussion shifts to IT

• Ensuring that all IT investments have traceability back to business objectives and impacted business focal points

• IT spending is a constant; but can the business directly trace dollars spent back to the improvement in customer and related stakeholder value and overall improvement in business capabilities?

3/19/2018

12


Implications of Rainbow Model on IT Budget Allocation & Business Funding


13Transformation Planning Leverages Business Architecture Based Technical Debt Metrics

Application

12

10

11

IT Architecture Metrics- Reliability- Security- Maintainability- Performance

Efficiency

Metrics supported by work from Consortium for IT Software Quality (CISQ)

Degradation data, application and technical architectures

Leve

l of I

T &

bus

ines

s ar

chite

ctur

e m

isal

ignm

entBusiness / IT Architecture

Alignment Sample Metrics- Capability Instances

Across IT Assets- Capability Automation

Percentages- Capability Automation

Percentages Across Value Stream Stages

Metrics require business-to-IT architecture cross-mappings

Quadrant IQuadrant II

Quadrant III Quadrant IV

7

8

9

3

1

2

5

4

6

Source: Business Architecture Associates, Inc.


14Using Technical Debt Matrix as input to Business-Driven, IT Transformation & Investments

Decision matrix provides rapid analysis for executives to:

- Invest wisely in business-aligned IT solutions (Q II / Q III)

- Determine when technical architecture upgrade satisfies business needs (Q IV)

- Avoid reinvesting in fully bankrupt IT assets (Q I)

- Evaluate among business/IT alignment scenarios, such as cross-business unit system consolidation, transform in place, migrate to new IT architecture

Viability technology, misaligned to business model requires new functionality

IT architecture aligned to business, viable foundation for moving forward

Business/IT architecture misalignment, IT foundation requires major architectural investment

Business/IT architecture aligned, requires investment in IT architecture foundation

Quadrant IQuadrant II

Quadrant III Quadrant IV

12

10

11

5

4

6

7

8

9

3

1

2

Application Leve

l of I

T &

bus

ines

s ar

chite

ctur

e m

isal

ignm

ent

Degradation data, application and technical architecturesSource: Business Architecture Associates, Inc.

What Technical Debt Analysis from a Business and an IT Perspective Tells Us

Capability mapping to IT architectures exposes major IT architecture challenges by exposing: Massive capability-related redundancies, where what the business does is

implemented in hundreds or thousands of systems and technologies

Fragmentation and inconsistencies in what the business does

Redundancies, fragmentation and inconsistencies: Lead to poorly aligned and often conflicting information and related business challenges

Destabilize IT architectures, making them particularly difficult to change in substantive ways

Stymie investments to align IT architectures to business strategy and business architecture

The good news: capabilities, and business architecture in general, provide insights into phased transformation options and related business-driven strategies


15

Actionable Results


Business Strategy EnablesViewed Via

Business Architecture: Framing Strategy Definition through Solution Deployment


16

Establish / Refine BusinessStrategy

Assess Business Impacts

ArchitectBusinessSolution

Establish Initiative Plans

DeploySolution

Strategy Definition

Business Performance Assessment

Objective Definition

Business Scenario Definition

Current State / Target State

Transformation Management

Business Objective / Value Stream Impact

Analysis

Initiative Definition

Actionable Objectives / Initiative

Mapping

Initiative Measurement

Criteria Creation

Deployment Team Engagement

Action Item Definition Success EvaluationInitiative Tradeoff /

Decision Definition

Business Objective / Information Impact

Analysis

Business Objective / Business Unit Impact

Analysis

Target State Architecture VIsualization

Current State / Target State

Transformation Analysis

Target State Option Analysis & Finalization

Objective / Action Item Matching

Business Objective / Capability Impact

Analysis

Business Arch. / Case Management

Design

Business Architecture /

Business Process Design

Business-Driven IT Architecture

Definition

Deliverable Development

Objective Tradeoff Analysis

Objective Prioritization

Strategy Dissemination

Business Objective / Product Impact

Analysis

Action Item Definiton

Current State Architecture Visualization

Business Architecture / IT

Architecture Impact Analysis

Initiative Mapping

Source: Business Architecture Guild, BIZBOK® Guide v6.0

Business architecture:

- Informs strategy

- Interprets strategy

- Provides rapid business and IT architecture impacts prior to project definition

- Helps frame initiatives

- Used end-to-end to scope requirements, frame IT deployments

- Ensures link back to business objectives


Stakeholders

Products & Services


Tactics

Metrics & Measures


Information

Value Streams

Organization


3/19/2018

17


Leveraging the Business Architecture / IT Architecture Transformation Framework™

Current Business Architecture

Business Architecture Positioned Vision

Business Transformation

Information Map

Capability Map

Acquire Product

Assess Risk /

Eligibility

Approve

Request

Establish

Account / Policy

Process

Payment

Onboard

Applicant

Validate

Application

Notify

Customer

Current IT Architecture Target IT

Architecture

IT Transformation

Business / IT Current Architecture Mapping

Synchronization of Target Business Perspective & Target IT Architecture

Synchronized Business / IT Transformation


Stakeholders

Products & Services


Tactics

Metrics & Measures


Information

Value Streams

Organization


Source: TSG, Inc.

IT Architecture ViewBusiness Architecture

Steps to ensuring that IT investments are driven by business objectives:

• Set clear, measureable, attainable business objectives

• Frame objectives through capability, value stream, information and stakeholder perspectives

• Frame IT architecture impacts through business architecture lens

• Highlight current state IT architecture constraints to the delivery of business objectives

• Align IT transformation plans with corresponding business transformation plans

3/19/2018

18


To Maximize Value, IT Investments Must be Readily Traceable to Clearly Defined Business Objectives

Capability

Information

Service

Data

Value Stream Service Orchestration

Orchestrates

Aligns object term & definition

Enables

Provides business view

Automatedby

Frames

Uses / modifies

Business Strategy / Objectives

Leveraging Capabilities to Define SOA, Microservice & Cloud Architectures


19

Target State Architecture Concepts: Microservices:- Organized around capabilities*

- Capabilities and (micro) services share common principles, both being object based

- Capability decomposition enables microservice definition and refinement

Cloud deployment- Capability usage across business unit and value

streams provide key input to cloud strategy context

- Generally, supporting and non-core capabilities are more cloud suitable

- In all cases, capability framed services provides greater business agility and cloud options, now or later

*Microservices, http://martinfowler.com/articles/microservices.html

Current to Future State IT Architecture LeveragingCapabilities to Define Legacy Impacts, Future State Services

3/19/2018

20


Business-Driven, IT Architecture Alignment & Transformation Requires a Robust Knowledgebase

Capability

Application

Service

Value Stream

Capability EnablesValue Stream Stage

CapabilityAutomated

By Application

Capability AutomatedBy Service

Business Unit Has a Capability

Capability Requires /Modifies Information

Value Stream Stage Relieson Application

Data is DerivedFrom Information

Data

Service Requires/ Modifies Data

ApplicationIncorporates

Service

Initiative

Business Unit

InitiativeImpacts

Value Stream

Information

Value Stream Stage

Value StreamContains ValueStream Stage

Business UnitEngaged inInitiative

InitiativeImpacts

Capability

Business Unit Uses Application

Application Accesses/ Modifies Data

Clearly defined relationships among business and IT architecture domains within business architecture knowledgebase are essential to business-driven, IT architecture alignment and transformation

Business / IT Architecture

Knowledgebase

• Today, most businesses undergo disruptive, large-scale, very expensive IT transformations

• These transformations are characterized by many individual business unit investments in siloed IT systems

• This pattern of disruption will continue until businesses shift to a business-driven IT transformation and investment approach

• Businesses should seek to achieve continuous, non-disruptive transformative alignment, driven by business objectives from a holistic perspective

3/19/2018

21


Businesses Should Seek Continuous, Non-Disruptive, Business-Driven, Business / IT Alignment

IT Architecture


Alignment & Transformation

Business / IT ArchitectureContinuous Alignment Model

• Shift from a business unit-specific, application architecture-driven approach to framing IT investments from a capability and stakeholder value perspective

• Where IT programs and investments are not traceable to business objectives, reestablish the link to strategy as viewed through capability, value stream and stakeholder lens

• Frame initiatives from a business perspective and not simply based on the application systems involved in the effort

• Highlight overlap of initiatives based on capability and value related impacts

• Consider the direct business value of every IT dollar spent

3/19/2018

22


Shifting to a Business-Driven, IT Transformation Perspective

William UlrichPresident, TSG, Inc.Partner, Business Architecture AssociatesPresident, Business Architecture GuildFellow, Cutter ConsortiumCo-chair, OMG Architecture-Driven Modernization Task Force

Business-Driven, ITArchitecture Transformation

Thank You!


23

business-driven, it architecture transformation › events › va-18 › special-events › ... ·...

Documents