emea. 2 architecting for business agility architecture rules – the integrated architecture...
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Architecting for Business AgilityArchitecting for Business AgilityArchitecture Rules – The Integrated Architecture Framework for Architecture Rules – The Integrated Architecture Framework for Enterprise Systems DevelopmentEnterprise Systems Development
Jonathan EbsworthSolutions and Architecture ServicesCap Gemini Ernst and Young
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The Need for AgilityThe Need for Agility
Drivers for an Agile Enterprise
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Businesses are increasingly facing a new Businesses are increasingly facing a new imperative: the ability to react quickly to volatilityimperative: the ability to react quickly to volatility
Positive Events . . .
Customer Order Occurs
Partner Signs On
Delivery On-Time
Good Analyst Review
Competitor Stumbles
Supplier Reduces Price
New Employee Joins
Large Order Occurs
Negative Events . . .
Stock Out
Process Fails
Delivery Problem
Power Outage at Plant
Competitor Wins
Client Complaints
Supplier Raises Price
Analyst Criticizes Firm
More Events, More Often, More ImpactMore Events, More Often, More Impact
Volatility is increasingly driven by
events
Volatility is increasingly driven by
events
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Many companies fail to anticipate and/or respond to Many companies fail to anticipate and/or respond to eventsevents
High Competitive
Agile Highly Agile
Med Lagging Competitive Agile
LowDoomed Lagging Competitive
Low Medium High
Response Rate
Det
ecti
on
Rat
eSome organisations are able to detect volatility in business events but are unable to react fast enough
Few organisations are able to detect volatility and react fast enough
How does your organisation react to events?How does your organisation react to events?
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The rate of business change is increasingThe rate of business change is increasing
… but in general, IT is acting as a brake on that change
That means we are a problem for business not a solution
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Business Webs
Event Driven
Functional Accuracy
Task Driven
Building functions & task enablement
Functional Integration
Procedure Driven
Joining functions & tasks to create procedures
ERP
Data Driven
Integrating procedures to create end to end processes across the Enterprise
Finding & Connecting value chains from different Eco-Systems in real-time, to support the dynamic nature of events
Modelling the probability of connections being made to ensure completeness of end to end services & maximising value
Business Networks
Process Driven
Extending processes across the network to create services & value from the Eco-System
Business models are changing – Business models are changing – IT models tend to lag behindIT models tend to lag behind
20052005
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Making IT agile means we need to change …Making IT agile means we need to change …
Embrace an enterprise wide strategic instinct towards IS&T Manage IT as a strategic resource rather than a tactical tool Increase awareness of enterprise strategic context when executing
tactical actions Drive adherence to strategy and standards into the Enterprise DNA
Create a platform for rapid, cheaper but risk-managed change Leverage service-based architectures and frameworks Focus on industry standards, not vendors Drive towards continuous adaptation not planned replacement Create a culture that embraces and manages risk
IT must not be a constraint on the business, it must enable the business to create new value.
IT must not be a constraint on the business, it must enable the business to create new value.
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Business and IT ChallengesBusiness and IT Challenges
Understanding Emerging Constraints
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Initial assumptionsInitial assumptions
Change is business as usualIts not what you’ve got - its what you knowAnd how fast you can decide and act
Your then budget is cut - dramatically
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Organisations are typically not designed for agilityOrganisations are typically not designed for agility
IS&T SystemsIS&T Systems
ProcessesProcesses
Organisational StructureOrganisational Structure
Business StrategyBusiness Strategy
Business
Vision
Business
Vision
GeographicalGeographical
CulturalCulturalLegalLegal
PoliticalPolitical
HistoricalHistorical
FinancialFinancial
Growth
through
M&A
Growth
through
M&A
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Tough market conditions expose the inability of IS&T to Tough market conditions expose the inability of IS&T to align with the businessalign with the business
Market needsMarket needs
Hyper-competition from old and new players (with no legacy)
The demands of “real-time everything” business operations
Cost reduction Pressure on time to market
Need to develop and offer new innovative business models, services, products, channels as the market/shareholders demand.
Growth of electronic intermediated value chains Drive for global or regional interoperability and
standardization Most effective investment … must ensure all
aspects of the operation are cost-effective in business terms
Customer engagement - Information is king Need to personalise the
customer/employee /supplier/partner interaction experience
Must make the most of information held, e.g. customer retention, product trends, etc
Hyper-competition from old and new players (with no legacy)
The demands of “real-time everything” business operations
Cost reduction Pressure on time to market
Need to develop and offer new innovative business models, services, products, channels as the market/shareholders demand.
Growth of electronic intermediated value chains Drive for global or regional interoperability and
standardization Most effective investment … must ensure all
aspects of the operation are cost-effective in business terms
Customer engagement - Information is king Need to personalise the
customer/employee /supplier/partner interaction experience
Must make the most of information held, e.g. customer retention, product trends, etc
Enterprise IS&T capabilityEnterprise IS&T capability
Tactical non-strategic reactive planning
Non business-aligned mindset
Non service-based delivery
Low re-use of assets
Unsophisticated financial controls or investment analysis capability
Large hidden operations costs
Fragmented systems – brittle frameworks
Stovepipe technical environment with little or no enterprise integration
Data duplication
Data gaps
Growing security and business risk exposures
Tactical non-strategic reactive planning
Non business-aligned mindset
Non service-based delivery
Low re-use of assets
Unsophisticated financial controls or investment analysis capability
Large hidden operations costs
Fragmented systems – brittle frameworks
Stovepipe technical environment with little or no enterprise integration
Data duplication
Data gaps
Growing security and business risk exposures
Unmatched because..
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1950 2003
Small
Large
Rate of Market Change
Adaptation Time Allowed
Performance
Gap
Increased Volatility Means Less Time to Adapt Than in the Past
Vo
latility
Vo
latility
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IS&T Landscapes are in a "Vicious Circle"IS&T Landscapes are in a "Vicious Circle"
Overall, continual business improvement and new initiatives are inhibited by IS&T due to slow and costly nature of implementing change
Things have been made worse by individual projects attempting to deliver in an isolated fashion to bypass some of the inhibiting factors – but this is only resulting in further constraints for subsequent projects in the medium term
Cycle of:Lower phase 1 cost
Higher phase 2..n costHigher operational cost
Inflexible, slow to change
Phase 1
Phase 2..n
Cost
75%
25%
Operational
"Operational Support"Euphemism
CxOs often cannot understand why relatively straightforward business changes are costly, risky and slow to implement; capital is reduced and business cases may not stack up
CxOs often cannot understand why relatively straightforward business changes are costly, risky and slow to implement; capital is reduced and business cases may not stack up
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In reality it is simple ….In reality it is simple ….
Instead of this …Instead of this …
The
ManufacturingAccounting
Finance Supply Chain
Integrated Data, Shared Rules & Workflow
Purchasing Engineering
Order Fulfillment
Portals
Sales/Marketing
You have …You have …
Quoting
You have …You have …
QuotingQuoting
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Todays’ Enterprises depend on an IS&T landscape Todays’ Enterprises depend on an IS&T landscape that has evolved over time is very complexthat has evolved over time is very complex
Business processes and information supported by many different applications
Complex spaghetti of interfaces between business processes and information
Heterogenous hardware and software releases to support business processes and information
Original IT costs may have justified this evolutionary growth but now the cost of any change and change risk to this IS&T landscape is a significant barrier
Original IT costs may have justified this evolutionary growth but now the cost of any change and change risk to this IS&T landscape is a significant barrier
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Dependencies between business and IS&T have Dependencies between business and IS&T have to be governedto be governed
ROI justified growth on a program by program basis - but now cost of any change is a significant barrier due to mis-alignment
ROI justified growth on a program by program basis - but now cost of any change is a significant barrier due to mis-alignment
IT proce s s e s
X:ProvisiongX:CallCnter X:OM
Hardware
Bus ines s Proc es s es
So ftware
AppSrvr
CallCente r
OMBilling
IntgS rvrFinance
X:FinanceX:Billing
IT proce s s e s
X:ProvisiongX:CallCnter X:OM
Hardware
Bus ines s Proc es s es
So ftware
AppSrvr
CallCente r
OMBilling
IntgS rvrFinance
X:FinanceX:Billing
• Activitie s
• Work F lows
• Entitie s / docume nts
• Bus ine ss Actors
• Informa tion flows
• Bus ine ss obje c ts
• IT Actors
• Me ssa ge s / Ope ra tions
• Inte ra ction Dia gra ms
• Applica tions
• UI
• Applica tion S e rve r
• Da ta ba se
• Inte rfa ce s , Inte gra tio n S e rve r & Middle wa re
• P hys ica l S e rve rs
• Disks
• Works ta tions
• Ne twork & Fire wa ll
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IS&T Budgets are utilised inefficiently IS&T Budgets are utilised inefficiently
Industry average 50% of IT application development spend on change to existing systems and/or change to initial requirements
25% of IT application development spend on change to support environment upgrades (e.g. database upgrades)
Less than 25% of development spend on “major programmes”
75% of development spend under umbrella of "operational support euphemism"
A degree of “spaghetti” and application cloning has been undertaken deliberately and tactical solutions deployed (cheaper phase 1, more expensive phase 1+x)
40% of development spend on “integration”
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Enterprise ArchitectureEnterprise Architecture
A Framework for Change
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Enterprise Architecture – Business/IT Alignment Enterprise Architecture – Business/IT Alignment structured within a Framework, governed by a Capabilitystructured within a Framework, governed by a Capability
An Enterprise Architecture defines a framework outlining the vision for systems and technology for the organization; it manages the change roadmap:
• It defines a set of overall principles, a future state vision, and a transformation plan;• It may also include standards definitions and strategies for individual services.
An Enterprise Architecture capability enables an organisation to create, adapt, enforce, and develop it’s technical architecture:
• It ensures that the IT landscape is aligned to the business vision and continues to be aligned to the business strategy and operational needs;
• It ensures that IT solutions can continuously react to the changing needs of the business;• It ensures that the emotional and financial case for change is made;• It is as much a part of the business as it is part of the IT organisation and its role is as much about controlling and focusing IT expenditure as it is about identifying necessary change.
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Enterprise Architecture in ContextEnterprise Architecture in Context
Application ArchitectureApplication Architecture
Infrastructure Architecture
Infrastructure Architecture
Security Architecture
Security Architecture
Project Architecture
Project Architecture
Programme ArchitectureProgramme Architecture
Enterprise ArchitectureEnterprise
Architecture
Extended Enterprise
Architecture
Extended Enterprise
Architecture
Project Architecture
Project Architecture
Project Architecture
Project Architecture
Programme ArchitectureProgramme Architecture
Application ArchitectureApplication Architecture
Application ArchitectureApplication Architecture
Infrastructure Architecture
Infrastructure Architecture
Strategy
TransformationCapability
Architecture
““Transforming the IT Transforming the IT portfolio to align to the portfolio to align to the business objectivesbusiness objectives”
““Creating the capability to Creating the capability to sustain alignment and sustain alignment and manage change”manage change”
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Enterprise Architecture ensures a business-Enterprise Architecture ensures a business-driven, architecture-led approachdriven, architecture-led approach
People Processes
Technologies
ProjectProjectBusiness
Driven IS&T Projects
Business Driven IS&T
ProjectsIS&T Systems
BusinessRequirements
Constraints
Enablers
Business Driven IS&T
Projects
Business Driven IS&T
ProjectsBusiness
Driven IS&T Projects
Business Driven IS&T
Projects
Alignment between business and technology AND between the constraints and enablers ensures intended benefits are REALLY delivered
Alignment between business and technology AND between the constraints and enablers ensures intended benefits are REALLY delivered
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An Enterprise Architecture method of working, offers a way of An Enterprise Architecture method of working, offers a way of turning the corner from disarray to competitive advantageturning the corner from disarray to competitive advantage
What EA enablesWhat EA enables Benefits of EA1Benefits of EA1
Enables faster design of new systems and extensions to existing systems by pre-defining ground rules and standards
Reduces the costs of new applications and infrastructure by establishing guidelines and facilitating interconnections
Enables easier interoperability of multiple systems (intra- and inter-enterprise) by defining the interface standards
Promotes more-efficient portfolio management by establishing guidelines for different classes of applications
Minimises data redundancy by identifying the requirements for data sharing
Reduces support costs by building simpler, more effectively integrated applications
Reduces risk in operations, security and change management
Enables faster design of new systems and extensions to existing systems by pre-defining ground rules and standards
Reduces the costs of new applications and infrastructure by establishing guidelines and facilitating interconnections
Enables easier interoperability of multiple systems (intra- and inter-enterprise) by defining the interface standards
Promotes more-efficient portfolio management by establishing guidelines for different classes of applications
Minimises data redundancy by identifying the requirements for data sharing
Reduces support costs by building simpler, more effectively integrated applications
Reduces risk in operations, security and change management
• Strategic analysis - Know what is going on across the organisation, i.e. don’t re-invent solutions.
• Thought leadership -Having the time/resource/ expertise/access to follow external technology trends.
• Technical strategy - Increasing levels of connectedness between customers, businesses, partners, suppliers, governments globally.
• Vendor strategy - Only adopt technologies which the organisation has a good chance of delivering and supporting, either directly or through third parties
• Technology roadmaps - Ensure architecture is fully understood and implemented as a specific capability, ie. from ‘mindset to toolset’
• Architecture development as a unified process
• Services architecture• Infrastructure architecture• Applications architecture• Data architecture• Security architecture
• Governance - Solutions are properly priorities and planned in business terms
• Assurance - All technical solutions are justified as being the most cost-effective solution
• Strategic analysis - Know what is going on across the organisation, i.e. don’t re-invent solutions.
• Thought leadership -Having the time/resource/ expertise/access to follow external technology trends.
• Technical strategy - Increasing levels of connectedness between customers, businesses, partners, suppliers, governments globally.
• Vendor strategy - Only adopt technologies which the organisation has a good chance of delivering and supporting, either directly or through third parties
• Technology roadmaps - Ensure architecture is fully understood and implemented as a specific capability, ie. from ‘mindset to toolset’
• Architecture development as a unified process
• Services architecture• Infrastructure architecture• Applications architecture• Data architecture• Security architecture
• Governance - Solutions are properly priorities and planned in business terms
• Assurance - All technical solutions are justified as being the most cost-effective solution
Tangible results..
Source: (1) Gartner Research
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Enterprise Architecture ensures projects and Enterprise Architecture ensures projects and programmes are considered & measured appropriatelyprogrammes are considered & measured appropriately
Valueto Business
Volatility of Business
ROI based "Value" based
Outsource IS&T Outsource BP
Measure by ROI Invest in Agility
Reduce cost Buy services
e.g. ERP e.g. CRM, SCM, ERP "extended"
e.g. Payroll, Desktop e.g. FX
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Implementing IS&T projects in isolation leads to large Implementing IS&T projects in isolation leads to large capital investment spikes which are being challenged by capital investment spikes which are being challenged by the boardroom the boardroom
Cost
Time
Business as usual cost
Project
Project
Project
75%
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An Enterprise Architecture led approach leverages An Enterprise Architecture led approach leverages investment across the entire IS&T landscapeinvestment across the entire IS&T landscape
Cost
Time
Business as usual cost
Project
Project
Project
£1m -£2.5m
6 months
75%
£1m-£2.5m typical estimated total costs for pilot project and initial seeding of people, process and technology to support subsequent projects
Each subsequent project develops the core people, process and technology capabilities and infrastructure in an evolutionary manner
Each subsequent project develops the core people, process and technology capabilities and infrastructure in an evolutionary manner AND delivers business value
Opportunity for projects to be implemented in more "bit sized chunks", with overall operational costs reduced and support for continual improvement actively enabled
Further opportunities for projects to be implemented in more "bite sized chunks", with overall operational costs reducing as % of budget. Support for continual improvement actively enabled
24-36 months
Continual business improvement is business as usualContinual business improvement is business as usual
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Enterprise Architecture impacts IS&T Enterprise Architecture impacts IS&T spending trendsspending trends
1223
10
10117
4641
22 19
0%
20%
40%
60%
80%
100%Before After
% o
f B
ud
get
Administration & Planning
Voice, Data, Platform Operation
Application Support/ Maintenance
Major Enhancements
New Technology Initiatives"Phase 1..ns"
more than 10% reduction
stable
plus 11% total budget
more than 10% reduction
more than 20% reduction
"Vicious Circle" is broken with upward trend return on investment for new initiatives and downward trend on TCO (operational costs)
"Vicious Circle" is broken with upward trend return on investment for new initiatives and downward trend on TCO (operational costs)
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It is not about "solving" the "problem" once; it is about It is not about "solving" the "problem" once; it is about defining an Architecture Vision which is continually applieddefining an Architecture Vision which is continually applied
Enterprise Architecture is about defining the vision and applying it as part of continual business and IS&T improvement
Enterprise Architecture is about defining the vision and applying it as part of continual business and IS&T improvement
ArchitectureInvestment
Wave #1
Deliver & RunInvestment
Wave #1
BusinessBenefitsWave #1
Continual IS&T ImprovementContinual Business Improvement
Applied Architecture Vision
ArchitectureInvestment
Wave #2
Deliver & RunInvestment
Wave #2
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Understand where you are, and what you can Understand where you are, and what you can achieveachieve
Look at the data – focus on “needs” rather than “wants”
Look at core business processes – practical change
Look at interfaces and integration – consolidate and standardise
Identify core competencies – who can do it better, cheaper, faster?
Understand and exploit capabilities – don’t change for the sake of change
Encapsulate current stable systems – re-invention isn’t mandatory
Leverage new technology where appropriate – bleeding, leading or stable
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Services ArchitectureServices Architecture
A Flexible Approach
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Is based on complementary best practices around component based development, integration framework and services NOT just “web servicing" the business!
The Enterprise Architecture evolves over time and is itself part of continual improvement
the Services Architecture Vision defines the guiding principles the Enterprise Architecture (as-is and to-be) is evolved over time and is a
living, changing, continually improving design supporting business needs "benefits wave" follows "investment wave" (using via Application Portfolio
Management)
Is based on tried and tested "Architecture Led" approaches which have delivered demonstrable cost benefits in 100s of industry projects
What is Services Architecture? (1 of 2)What is Services Architecture? (1 of 2)
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What is Services Architecture? (2 of 2)What is Services Architecture? (2 of 2)
Provides effective support for continual improvement through on-going change
Actively enables rather than constrains new initiatives
Provides an evolutionary, more "bite-sized" approach (requiring people, process and technology change)
SOLID / STABLECONTROLLED DYNAMIC
ADAPTIVESERVICES
MARKET
SPEED
Internal External
SPEED / COSTOF CORE EVOLUTION
* Drive = ROI * Drive = cost to business/value
CORE / STABLE
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Today’s Priorities must Support Tomorrow’s Needs; Today’s Priorities must Support Tomorrow’s Needs; build to Perform – Architect to Change!build to Perform – Architect to Change!
2003
2005Consolidate Infrastructure, inc storage
Manage Delivery of Apps/Processes
Data Rationalisation
ERP extensions
EAI integration
Webdelivery
Mobility
Agent BasedSoftware
Grid ComputingVirtualizing of
Resources
Optimization ofIntegration
Flexibility of Access,Inputs and Outputs
Service Architecture Interface
Utility Resource Interface
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The Integrated Architecture The Integrated Architecture Framework, and the Services Framework, and the Services Architecture FrameworkArchitecture Framework
The Cap Gemini Ernst and Young approach to Architecture
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CGE&Y has been delivering Service-based Architectures for almost 10 years
CGE&Y has the worlds' largest and one of the world’s strongest IT architects’ community
500 certified architects and 1,000 more on the road to certification
A knowledge base built on 10 years’ experience and hundreds of hands-on engagements
Best in class delivery approach: the Integrated Architecture Framework
Unique vision: the Services Architecture Framework
Consistently rated as a leader in this market by analysts (Forrester, Gartner, IDC)
“CGEY lights the path to a service oriented architecture. CIOs need IT strategy advice to transform incompatible IT assets into efficient computing services.” – Forrester 03
"CGEY has been considering services-based architecture for quite a while, and seems ahead of the market in developing thought leadership and capabilities in this area." – IDC 03
CGEY has a true leadership position in CGEY has a true leadership position in ArchitectureArchitecture
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InformationBusiness Information
GovernanceSecurity
Contextual
InformationSystems
TechnologyInfra-structure
Physical
Logical
Conceptual
CGE&Y has invested €10m over 10 years in our proven CGE&Y has invested €10m over 10 years in our proven approach – Integrated Architecture Framework (IAF)approach – Integrated Architecture Framework (IAF)
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The aspect areas focus on both business and technologyThe aspect areas focus on both business and technology
Security and Governance Architecture
Business ArchitectureBusiness Architecture
Information Systems ArchitectureInformation Systems Architecture
Information ArchitectureInformation Architecture
Business Vision & StrategyBusiness Process Maps
Event Matrices & Dialogue Maps
Software - package & Bespoke to support the business processes –
application Maps and supporting materials
The information or data which is needed by the Applications - ERD’s,
Data Architecture Maps
The technology platforms, databases, networks and services (e.g. printing,
e-mail, TP, etc)
Technology Infrastructure ArchitectureTechnology Infrastructure Architecture
BusinessBusinessfocusedfocused
Technologyfocused
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All four IAF layers support, and are traceable back to All four IAF layers support, and are traceable back to business goalsbusiness goals
Visualise To-Be
Conceptual
Business
Vision
Document As-Is
Contextual
Current Business
Environment
Supporting Technology
PhysicalWith what can the vision be
realised
Optimisation
LogicalHow to realise
the vision
Optimisation
Business Drivers, Goals & Principles
Influences
•Cost
•Time
•Scope
•Preferences
•Technology
•Skills
•Market Forces
•Integration
• Processes
• Future Requirements
• Migration
Create and maintain links
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The Services Architecture Framework defines the capabilities of The Services Architecture Framework defines the capabilities of IS&T- it identifies the enablers and constraints for the businessIS&T- it identifies the enablers and constraints for the business
Integration Core DataCore
Applications
Business Process Orchestration
Composite Applications
Common Application
Services
Business Service Orientation
e.g. Dynamic Supply Chain
Services
e.g. Dynamic CRM Services
e.g. Core CRM
Services
e.g.Core Supply Chain
Services
Channel & Portal Services(Internal, External)
Co
llabo
ration
Co
llabo
ration
… …… …
Channel and Portal Services enable applications to be mass deployed internally and externally with customised presentation logic.
New package or custom built applications are configured and/or constructed to deliver business processes using component based technology (Java and .NET). They are composed of Business Services for access to core applications and data (hence they are composite in nature). New Business Services are also constructed and made available by these applications themselves They actively enable cost-effective and speedy continual improvement (change).
Common Application Services provide runtime, transaction, security, identification, interface definition and other core services.
BPO enables business services to be re-used and re-assembled quickly and cost-effectively to create new horizontal, cross-division/partner/customer processes. BPO provides tool support for process modelling.
Business Services provide the discrete building blocks for use, re-use and re-assembly by composite applications. They are built on Integration Services either on a one-one basis or a one-many basis. The are constructed as Java / .NET components and made available through standards based Web services.
Collaboration Services enable external business process collaboration with Business Services.
Core Applications provide highly stable, process-centric functionality and access to Core Data.
Legacy Stabilisation is the process used to expose core function from the (often monolithic) package & bespoke legacy apps.
Integration Services are built on EAI and other technology components and provide stable integration between Core Applications, exposing access as re-usable services.
Core Data, providing persistent business critical data services.
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Architecting for Success - Four steps to more flexible IT Architecting for Success - Four steps to more flexible IT to enable an agile businessto enable an agile business
1. Understand where you are Create a true snapshot of your existing capabilities Enter into the journey as a partner with the business Create a flexible architecture framework that will govern future
initiatives
2. Validate Value Opportunities Define the initiatives that will create the most value Create a pace the organization can maintain… be realistic Set the value horizon to justify initial commitment and investment
3. Develop an Adaptive Initiative Portfolio The set of initiatives that move your organization
along the roadmap Justify why projects should stay, not why they should go Create a program justified, measured and managed on value
4. Recognize this is a strategic journey, not a tactical exercise A fundamental change that requires the participation of the
entire organization… not just IT Tomorrows business consists of more than just one organization…
include the entire ecosystem
Flexibility and agility requires a healthy appetite for change
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