case study: from strategy to large-scale change program

From Strategy to Large-scale

Change Program

-

Using Enterprise Architecture

A Case study about Finnish Tax Administration’s EA journey

Jussi JutilaLead Enterprise ArchitectIsatalo

Jorma MyyryläinenSenior Enterprise ArchitectTieto Ltd

About the Story

• Brief introduction

• Starting point

• Story building

• Leadership engagement and trust

• Audiences and languages

• Change program as result

• Where we are now

• Lessons learned

Companies

• Tieto Ltd

Tieto is the largest Nordic IT services

company providing full life-cycle

services for both private and public

sectors. The company has global

presence through its product

development business and the

delivery centers.

Key figures (ca.)

- Net sales 1700 M€

- Operating profit (EBIT) 90 M€

- Personnel 15000

Headquarters in Helsinki, Finland

Listed in OMX (Hel) and OMX (STO)

• Tietokarhu Ltd

A joint venture with Ministry of Finance

in Finland. Focused on partnership

with Finnish Tax Authority.

Key figures (ca.)

- Net sales 40 M€

- Operating profit (EBIT) 6 M€

- Personnel 300

Headquarters in Helsinki, Finland

Companies• Finnish Tax Administration (FTA)

Tax revenue collected by the Tax Administration is the

most important source of revenue for the public

economy. The Tax Administration’s core task is to secure

the accrual of tax revenue and to reduce the tax gap.

FTA is a national organisation which collects taxes and

tax alike fees to all tax recipients: state, municipalities,

KELA, parishes, etc.

Key figuresInside FTA (M€) 2013 2012

Costs 395.2 401.7

Incomes 6.0 6.0

Personnel on 31 December 5157 5322

Waste volumes, tonnes of CO2* 75 89

Revenue (M€) 2013 2012

State taxes 30904 30286

Municipalities 18501 19328

Parishes 991 976

Social Insurance Institution 3449 3446

Total 52689 50261

Signifigance in National Economy

• Some key figures

– Finnish Gross national product (GNP) ca. 160 000 M€

– State budget in Finland ca. 40 000 M€

• State income thru FTA ca. 31 000 M€

– 3/4 of state budget

• FTA costs ca. 425 M€ (operational)

– Total amount of taxes thru FTA ca. 51 000 M€

– 1/3 of GNP

Scope

Starting Point

• EA-Status at FTA and Public administration in Finland

– Strategic work done but EA work not done

– Strategic goals settled but no EA target state set

– MoF had stated its EA goals, methods and requirements

• Situation in FTA

– Separate and chopped processes

– Separate and overlapping databases

– Old legacy systems and siloed functions decelerate development

Starting Point

• Legacy applications and their integration (systems viewpoint)

As-is state

Competing Agendas c. Architecture driven Approach

Business needs

Business development,

enterprise architecture

Managed view of

needs, goals and

enterprise architecture

Squad based or

individual agendas, ad

hoc architecture

Business needs

Strongy

networked Loosly

networked

All networked

9

Choosing methods

Not supporting

roll out

Method ”over

boiling”

Target

domain

Description

style

Precise,

exact,

detailed

Coarce,

focusing to

essential

Searching for

decision making

Waiting for

implementation

Applicaple

methods

Ambiguity

Jungle of details

Story building

• We started with building an EA-framework.

– Applying “best” or “fittest” parts suitable for FTA

– Sources: Zachman, TOGAF, FEAR*)

• We continued applying suitable parts from methods

– Applying “best” or “fittest” parts suitable for FTA

– Sources TOGAF, FEAR, ValtIT**)

• Result was a storyline

– Illustriated path for progress

– Guidance from FTA strategy

– Continuum of agendas for workshops

*) FEAR: Research program at Jyväskylä University to produce a methodology, models, etc. for Finnish public administration*) ValtIT: Finnish EA approach, methods and frameworks for state administration

Story building

• Our applied framework for FTA

Kokonais-

kehittämisen

malli

Toiminnan kohde

- VH:n toimintaympäristö

yhteiskunnassa

- VH:n palvelutarjooma

- Ydinprosessit ja -palvelut

- VH:n toimintamalli

- Toiminnan asettamat vaatimukset

Tietojen hallinnan periaatteet

- Tietotarpeet ja -tarjonta

- Tietojen hankinnan ja hallinnan

periaatteet

- Liiketoiminnan käsitteet

- Ontologiat ja sanastot

- Tietosuojan periaatteet

Kohdealueen tiedot

- Tietovarannot

- Tietojen elinkaaret

- Tietojen omistajuudet

- Tietojen vaihdot

- Tietomalli (loogiset rakenteet)

- Tietosuojan hallinta

Tietoresurssien rakenteet

- Tietovarastot

- Rakennemallit (XML-, TK-

skeemat, tiedostokuvaukset …)

- Tietosuojamekamismit

- Työkalut ja välineet

Tietojärjestelmäperiaatteet

- Valtiokonsernin

tietojärjestelmäpalvelut

- VH:n tietojärjestelmäpalvelut

- Tavoitetilan järjestelmäkartta

- Järjestelmien hankintapolitiikka

- Tietojärjestelmien vaatimukset

Järjestelmien loogiset rakenteet

- Looginen kokonaiskuva

- Loogiset järjestelmät, yhteydet

ja riippuvuudet

- Tietojärjestelmien elinkaaret

- Järjestelmäkuvaukset

Fyysiset rakenteet

- Sovellukset

- Sovellusten teknologia-

alustajako

- Viitearkkitehtuurit

- Liiketoiminta- ja informaatio-

palveluhakemistot

- Tietoturvakontrollit

Teknologiaperiaatteet

- Valtiokonsernin teknologiset

linjaukset ja palvelut

- Teknologioiden elinkaarilinjaukset

- VH:n teknologiat

- VH:n teknologiapalvelukartta

- Sovellettavat tekniset standardit

- Teknologiarajaukset

Teknologioiden looginen

kokonaisuus

- Looginen teknologiakokonaisuus

- Elinkaarien hallinta

- Teknologiapalvelut

- Tietoturvapalvelut

- Järjestelmähallintapalvelut

- Alustapalvelut

- Toimistoinfrastruktuuripalvelut

Fyysiset resurssit

- Fyysinen infrastruktuuri

- Tietoliikenneverkot

- Sijoittelu

- Teknologiamekanismit

- Tietoturvan mekanismit

- Soveltamisohjeisto

Toiminnan kuvaukset

- VH:n prosessikartta

- VH:n sisäinen palvelukartta

- Palvelukuvaukset elinkaarineen

- Pääprosessit

- Toiminnot

Toiminnan puitteet

- Toimintaorganisaatiot

- Työnkulut

- Järjestelmille asetettavat

vaatimukset

Lähtökohdat

Kontekstuaalinen

taso

”Miksi tehdään?”

Järjestelmänäkökulma

Tietojärjestelmäarkkitehtuuri

Teknologianäkökulma

Teknologia-arkkitehtuuri

Kokonaiskehittämisen näkökulmat

Liiketoimintanäkökulma

Toiminta-arkkitehtuuri

Informaationäkökulma

Tietoarkkitehtuuri

Lin

jau

ks

et

Kä

sit

tee

llin

en

tas

o

”Mitä

te

hd

ää

n?”

Ra

tka

isu

t

Lo

og

ine

n t

as

o

”Ku

inka

te

hd

ää

n?

”

Re

su

rss

it

Fy

ys

ine

n

Ta

so

”Mill

ä te

hd

ää

n?

”

Ko

ko

na

isk

eh

ittä

mis

en

va

ihe

et

Kokonaiskehittämisen lähtökohdat:

Yhteiskunnallinen ja kansainvälinen rooli, strategiat, visiot, lainsäädäntö,

(Liike-)toiminnan periaatteet ja vaatimukset sekä tavoitteet, hankintapolitiikat, kohdealueen rajaukset,

Teknologiset ja organisatoriset periaatteet ja rajaukset, kokonaiskehittämisen hallinta

Story building and framework

Guiding principles

Business Information Systems Technology

PracticesPractical methods and tools, working patterns and structures for decision

making and execution to ensure mutual path

Policies and

definitions per EA

viewpoint

It is essential to

communicate these

to be common and

concrete practices

through the whole

organisation

Guiding principles,

high level goals for

comprehensive

developement

• Structure of our framework and storyline’s essentials

Basic Continuum

Understandingof present and

its history

Creating target stateand identifying

changes

Roadmap, designing the development

program

Toimeenpano

Understanding business = Business Architecture

Not a separate phase in the beginning but a continuos effort

ToimeenpanoImplementationphase by phase

Includes also

infrastructure,

program

management,

governance etc.

Producing as-is

and to-be states

of architecture

and identifying

differences

Architecture Storyline

Interest

groupsServices Processes

Information

systems, ITProgression

What is our value

chain? Who are

our partners,

information

producers and

consumers?

Which products

or services we

produce? What is

their structure?

What processes

we need?

Which systems

we need for

running

processes

How we should

proceed? In

which phases

etc.?

Story building

• Storyline made a continuum which concealed the architectural methods and framework

– Top leadership team proceeded according to the storyline.

– Leaders came to “table set ready” to give their contribution

– Leaders were not “disturbed” with EA lingo

– Architects took care of methods and architectural consistency and structural strength

Leadership engagement and trust

• From strategy to guiding ideas

• Translation from strategy into Structural requirements and goals

• We spoke about familiar things in structural format

• They saw a path from strategy towards concrete functional to-be state of their organisation

• We carried forward the work in workshops according our storyline

Leadership engagement and trust

• Achieving trust

• When top leadership team members saw progress with their ideas coming alive, they engaged and started to trustarchitecture as means in achieving the Change

• Composite of business profits with systems, technology and infrastructure necessities was an “eye opener”.

• To avoid siloed enterprise structure and achieve one single and solid enterprise

Combining business profit and necessities

Basic capabilities(Customer management, data flow management,

analytics, integration, process management)Bu

sin

ess c

apabili

ties

(Ta

xa

tio

n m

ana

ge

me

nt, m

ana

ge

me

nt o

f p

aym

en

ts

an

d r

efu

nd

s, va

ria

nce

ha

nd

ling

, cu

sto

me

r se

rvic

e)

cost efficiency, renewability

Effectivines,

Focus on customer

To-be state

Enablers

So

luti

on

s w

hic

hb

rin

gth

e p

rofi

t

Separation of business profits and

enablers anti-siloing and general

solutions

Audiences and languages

Operativemanagement

Customer’sArchitect

team

Architects

Sponsor

InformationAdministration’s

management

Businessspecialists

• AudiencesTop

leadership team


Top leadership

team

Operativemanagement


team

Architects

Sponsor


management

Businessspecialists

Leadership workshops

• Working with top leadership team


Top leadership

team

Operativemanagement


team

Architects

Sponsor


management

Businessspecialists

Deepening workshops

• Drilling downwards from strategic issues


Top leadership

team

Operativemanagement


team

Architects

Sponsor


management

Businessspecialists

Architecture work

guidance

• Architectural principalities, goals and policy making


Top leadership

team

Operativemanagement


team

Architects

Sponsor


management

Businessspecialists

Workshop drafts

and summaries

• Questions to main workshops and finalising the results


Top leadership

team

Operativemanagement


team

Architects

Sponsor


management

Businessspecialists

Informing and

Conversations

(engagement)

• Information and conversations to engage


Guiding principles

Business Information Systems Technology

PracticesPractical methods and tools, working patterns and structures for decision making and

execution to ensure mutual path

Leadershipworkshops

Workshop draftsand summaries,

Deepening workshops

Architecture workguidance


• Right language to right people

– “Business language” to top leadership (what?)• E.g. customer, value, profit, costs, program, portfolio, process maps,

business entities etc.

– Functional language to business specialists (how?)• Process flows, workflows, data groups etc.

– ICT-lingo to operative people (with what?)• E.g. ICT acronyms (BPML, XML etc.), system maps, platforms

– Architecture among architects (“big picture”)• E.g. Modelling languages (E.g. Archimate), TOGAF, frameworks etc.

Change program as result

• To-be state architecture was approved

• After approval we produced a change program

– Prioritised development project items

– Development phases

– Dependences between projects were extremely important

– Road map reasoned by business case calculations

• Visualisation by metaphor from “railroad yard”

Development path as a “railway yard” diagramA

s-i

s d

ata

sys

tem

sTo

-be fu

nctio

nalitie

s

Where we are now

• Customer made major business decision on investment

• The core of FTA’s taxation functionalities was put out to tender

– competitive bidding was won by 226 M€ bid

– Program has started on spring 2014 and is planned to get finalised on 2019

• Process harmonisation started

• Architecture work continues

– Architecture work has been continued further and deeper

– New needs arises from ever changing society, national economy and increasing international co-operation

– Growing taxation and economy ecosystems

Lessons learned

• It is essential to keep top leadership team involved all the time

– Business scope must be kept at right level

• Everything must be reasoned through benefits

– Personal and group benefits

– Benefits must be based on concrete information (e.g. by business cases)

• Right language to right people

– EA is not a “lingua franca” but architect is interpreter

• Well prepared workshops give results and engage their participants

Lessons learned

• Understandable story engages and carries on

• Focusing in audience’s abstraction level keeps up interest

• It is hard to get good architecture implemented in a proper way

– What we did wrong because it was not obvious to go straight forward? (a lesson still to be learned)

– Storyline was lost

• Big vessels turn slowly (except upside down)

– People in those vessels change their opinions slowly

Thank You