enterprise approach towards cost savings and enterprise agility

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Enterprise Approach towards Cost Savings and Enterprise Agility 14 th Architecture Community of Practice (ACoP) Forum 21 July 2016 Poon See Hong [email protected] “The adventure of life is to learn. The beauty of life is to give.” UNCLASSIFIED

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Enterprise Approach towards

Cost Savings and Enterprise Agility

14th Architecture Community of Practice (ACoP) Forum

21 July 2016

Poon See Hong

[email protected]

“The adventure of life is to learn. The beauty of life is to give.”

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Disclaimer

Views expressed in this presentation

are solely that of the speaker's and

shared in the spirit of knowledge

sharing. They DO NOT necessarily

represent MHA's or SPF's views

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Scope of Presentation

Our approach to Enterprise Architecture (EA)

Development and Management

EA Value Realisation - Architecture-driven

Business Process Management (BPM)

Initiatives

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Our Approach to EA Development

and Management

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Definitions of Enterprise Architecture “A Rose by any other name.........”

Enterprise architectures are like blueprints,

drawings or models

Enterprise architectures refer to an organised set

of elements with clear relationships to one another

which together form a whole defined by its finality

Enterprise architectures define the style and

method of design and construction that comprise the

elements of a system and define the purposes and

interrelationships of those elements

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Definitions of Enterprise Architecture We view EA as an Enterprise Approach for:

Ensuring Business-IT alignment

Managing the complexities of IT

Breaking the silo barriers

Moving up the maturity ladder

Supported by:

Pragmatic and disciplined execution at a measured

pace

A culture of openness and transparencies to instill

enterprise awareness UNCLASSIFIED

It’s a Fan!

It’s a Spear!

It’s a Snake!

It’s a Rope!

It’s a Wall!

It’s a Tree!

EA provides a “Big Picture” view of the different elements of a

business and how they are related, helping business and IT functions

to jointly understand, plan and successfully deliver change

Functionally Centric

“blind men saw the elephant”

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The Composite View

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Vision Architect's Views

Plumbing Drawing Electrical Drawing Structural Drawing

Engineer's Views

Learning from the Building Industry

Getting Everyone on the Same Page UNCLASSIFIED

Multiple-level Architecture

Inventory

Management

Make

(Operations)

Goods

Receipt

Supply Chain Management

Town

Province

City

Country

Top Level

High Level

Mid Level

Low Level

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How do we build the Integrated

Enterprise Architecture? A way to understand enterprise complexity through

decomposition

A method of structuring the enterprise with

architectures at each level of decomposition

A common language to communicate and create a

shared understanding across and throughout the

enterprise

We have a committed leadership team, shared expectations and knowledgeable personnel to achieve success

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The Business Reference Model Structure

Line of Business (LOB) (e.g. Supply Chain

Management)

Business Function (e.g. Inventory Management)

Mission Area (e.g. Corporate Business

Mission Area)

A taxonomical structure that gives a cross-LOB view for aligning IT investments, identifying hand-offs and

connections, and facilitating architecture integration UNCLASSIFIED

OV-0

OV-0

OV-0

Business Architecture - Understanding

Complexity Through Decomposition

Manage Stock Transfer (Scenario)

Perform One Step / Two Steps Stock Transfer

(Process)

Perform Goods Receipt (Process Step)

BA is the highest and most dominant architecture, the central plexus and equivalent to the structural architecture for your dream home

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OV-5

OV-6

OV-6

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Legend:

Line of Business

Level 1 Business

Function

The Business Architecture as starting point

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Legend:

Level 2 Business

Function

Level 3 Business

Function or known as

Business Scenario*

The Process Model of Supply Chain Management

* On average, each Business

Scenario consists of 5 to 10

Business Processes

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Legend:

Level 2 Business

Function

Level 3 Business

Function or known as

Business Scenario

The Process Model of Engineering & Maintenance Management

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The Business Map

3-Tier Business Architecture UNCLASSIFIED

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The principle is that projects aim to improve the performance of business functions, and the improved performance of business functions results in the advancement of capabilities and achievement of strategic outcomes.

Project on a business function

Capabilities

Strategic Outcomes

To actualise the alignment between projects and strategic outcomes, the Balanced Score Card (BSC) capabilities in the organisation BSC strategy map will need to be developed.

Alignment to BSC and Outcomes Vision: Delivering User Centric Information Capabilities

The Business Map (OV-0)

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Information

Infrastructure

Business Area

Logistics

Business Area

Once the capabilities are established, we will support the business area leads to map and manage these internal processes, which are essentially end-to-end processes that integrate the Lines of Business (LOBs) to deliver common outcomes to the Training, People, Logistics System and Infrastructure capabilities.

The Value Chain of each capability can be used for analysis by Enterprise Architects to integrate LOBs.

The Value Chains would comprise business functions depicted in the OV-0

Cross LOB Integration Vision: Delivering User Centric Information Capabilities

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The Business Map (OV-0)

Information

Infrastructure

Business Area

Logistics

Business Area

EA: Enabling Business and IT Coherence

Business architecture

Process architecture OV-2

OV-3

OV-7

OV-0

OV-1

OV-5

OV-6

SV-1

SV-2

SV-6 TV-1

EA describes the current and future states of an enterprise

using a broad set of Operational, System and Technical Views

Technical

Facing

Business

Facing

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Needline

External Needline

Node

ActivityActivity

Node

ActivityActivity

Node

OrganizationOrganization

Process Area (Business

Function) 1.1

Process Area (Business

Function) 1.2

Process Area (Business

Function) 1.3

Process Area(Business

Function) 1.4

Policy name 1

Policy name 2

Policy name 3

Policy name 4

Policy name 1

Policy name 2

Department 1

Resources & Facilities

Department 2

Application system 1

Department 1

Department 2

Application system 1

Application system 2

Policy name 1

Policy name 2

Application system 1

Application system 2

System/ILS Mgr

Input 1

Input 2

Input 3

Output 1

Output 2

Output 3

Output 4

Output 5

Output 6Department 1

Department 1

OV- 2

EPC

OV- 1

BPMN

OV- 3 IOD IEDM

Role

OrganizationOrganization

Ty pe

Organization Organization

Role

OV- 4 OD

OperationalActiv ity

OperationalActiv ity

OperationalActiv ity

OperationalCapability

OperationalActiv ity

OV- 5

OV- 6

SV- 1

SV- 2

TV- 1

FT IDEF

EPC

BPMN ASD

AD ND

TT

Node Tree

OperationalActivity

Organization

Event

Event

Event

OperationalActivity

Event

InformationExchange

Requirement

Human RoleInformation

Element

AD

System

SystemType

SystemComponent

is of type

encompasses

System

Organization Organization

SystemInterface

CommunicationsSystem

CommunicationsLink

Network

Network

Organization

Pathway

Interface

Network type

OperationalActivityOrganization

Miss ion

Organization Type

Needline

Performance Parameter Set

OperationalCapability

System

Node

Node A1 Node A2Function Output Output Output Output Output Output Output Output Output Output

Fu

nctio

nIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

t

OperationalActivity

InformationExchange

Requirement

InformationElement

OperationalActivity

Activity

Activity

Needline

InformationExchange

Requirement

InformationElement

InformationElement

Organization Output Output Output Output Output Output Output Output Output Output

Org

an

iza

tio

nIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

tIn

pu

t

Organization

Organization Organization Type

Organization Type

Needline

Needline

Node

NeedlineNode

System SystemInterfaceOrganizatio

n Type

Standard

System FunctionNode

SystemSystem

Node

System FunctionSystem Function

Needline

Interface

Node

Timed StandardsForecast

Standards ForecastProfile

Reference Model

ServiceService Area

SV- 7 KPI

System Function

Performance

Parameter Set

System

Interface Standard

SV- 6 UML IEDM

Data FlowInformation

Element

Interface

InformationExchange

Requirement

Interface Interface

OV- 0

Process Area

(Business

Function) 1.1

Process Area

(Business

Function) 1.2

Process Area

(Business

Function) 1.3

Process Area

(Business

Function) 1.4

Process Area

(Business

Function) 1.5

Department 1 Department 2Department 1 Department 2 Department 2

Simplified

EPC

Process Area

(Business

Function) 2.5

Process Area

(Business

Function) 3.5

Process Area

(Business

Function) 1.1

Process Area

(Business

Function) 1.2

Process Area

(Business

Function) 1.3

Process Area

(Business

Function) 1.4

Process Area

(Business

Function) 1.5

Enterprise

Process

Overview

Process Area

(Business

Function) 2.1

Process Area

(Business

Function) 2.2

Process Area

(Business

Function) 2.3

Process Area

(Business

Function) 2.4

Process Area

(Business

Function) 3.1

Process Area

(Business

Function) 3.2

Process Area

(Business

Function) 3.3

Process Area

(Business

Function) 3.4

Enterprise Process

(Line of Business)

4

Enterprise

Process

(Line of

Business) 1

Enterprise Process

(Line of Business)

2

Enterprise Process

(Line of Business)

3

Process Area

(Business

Function) 4.1

Process Area

(Business

Function) 4.2

Process Area

(Business

Function) 4.3

Process Area

(Business

Function) 4.4

Process Area

(Business

Function) 4.5

FT

Uses of EA Views to Answer Questions

The Business Map

High-Level Operational Concept Graphic

Operational Node

Connectivity Description

Operational Information

Exchange Matrix

Organizational Relationships Chart

Operational Activity Model

Operational Activity Sequence and

Timing Descriptions

System Interface

Description

System Communications

Description

Systems Data Exchange Matrix

Systems Performance Parameters Matrix

Technical Standards Profile

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Analysis

Integration

Visualisation

EA’s Focus

EA elevates the level of analysis and insight of business operating

models. To be a true professional, You Have to Use The EA Tools UNCLASSIFIED

Paint Car Car Needs

Painting

(Input)

Painted Car

(Output)

Context Diagram (From the Viewpoint of the Car Owner)‏

Integrated Definition (IDEF) Control

Mechanism

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Paint Car

Spouse’s

Input

Car Needs

Painting

Vendor

(Car Painter)‏

Painted Car

Context Diagram (From the Viewpoint of the Car Owner)‏

Budget

Constraints

Time Limitations

Painting

Facility‏

Painting

Specs

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• Value people – Power of Leverage

• Communicated – Be Understood

• Keep it simple

• Embrace change: Keep up the Fire!

• Choose the right solution for the enterprise

• Delivery quality

• Model and document in an agile fashion

Principles of Agile Architecture

Building the Plane as it Flies

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• To understand how operations function, organisations have to model the who, what and how of their business processes – Who : Know the role-players and users

• Deliver value

• Listen to the business, hear what they truly want

– What : Define the end-to-end business processes

• Ensure they get used and re-used

– How : Get organised

• Stay relevant

• Adopt industry best practices

• Embedding new behaviours is crucial to implementing EA

Sustaining – An Attitude of Mind

EA brings together information, ideas and technologies and

makes them go where you want UNCLASSIFIED

• Success in IT is all about people – Good people + optimal process = success

– Good process + poor people = failure

• EA = Optimisation of business processes – It's not just about automation nor just an IT system

• Encourage, empower and motivate

• Inspire and give space to your people!

What do we believe?

Nevertheless, robust Business Process Governance is key!

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Becoming a Trusted Partner will need

some New Behaviours

Central EA

Function

Projects,

Business Units/

LOBs

Engagement in Advance,

Time for Dialogue with HQ

Time for Dialogue

& Contracting

with Projects &

Business Units

Develop Solutions

Together, Commitment

Demonstration of Benefits to

Business: Time for Pilot

Experience Collaboration

as Adding Value Focus on new Business

Opportunities, not just

Transformation

EA Input on

Strategy Valued

Making Everyone Matter! We should be walking the EA journey with

the Business Stakeholders and we must not Drive People off The Road

EA seen as a

Business Partner

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EA Value Realisation –

Architecture-driven Business Process

Management (BPM) Initiatives

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Useful models take you just

beyond the horizon … but

not further

What if the model actually become reality?

What if the model and the real thing are

directly connected together?

What if what you model is what you run?

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• Process Performance Manager

• Central Process Scheduling

• Root Cause Analysis

• ARIS Business Architect

• ARIS Business Publisher

• ARIS Business Simulator

• SAP Solution Manager

- Business Blueprint

- Change Management

- Business Process Change

Analyzer

- Test Workbench

Test Automation (HP QC & TAO)

Business-to-

Model

EA

MDA Business-IT

Integration Oversight

E2B ARIS/SAP Tools

Model-to-

Execution Execution-to-

Business

An Overview of the MDA Approach to

Business-IT Integration

Moving Up The Maturity Ladder

Foresight

B2M ARIS Business

Architect

Insight

M2E SAP Solution

Manager

What is Modelled = What is Built = What is Used

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ARIS – Solution Manager Synchronisation

for System Configuration Control

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Business BPM Technical BPM

Insight

M2E

Oversight

E2B

SAP

BPM Lifecycle – The Big Picture Foresight

B2M

UNCLASSIFIED An integrated BPM platform to increase business process efficiency

Let your creative juices flow,

get passionate,

resist the urge to do only the minimum

– specifically:

A Challenge:

If you learn only methods you will be tied to

your methods, if you learn the principles,

you can create your own methods!

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37

Questions and Answers

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Thank You

“Don't Just Automate.

Collaborate

for

Cost Savings and Enterprise Agility!”

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