making architecture business value driven

Business of Architecture to make Business of Architecture to make IT Business Value Driven:IT Business Value Driven:

Case StudyCase Study

Dave GuevaraDave GuevaraApril 20, 2009

P i i l A hit tPrincipal Architect

IASA Denver Chapter

Today’s AgendaToday’s Agenda

Background & Problem StatementBackground & Problem Statement

What are We Aligning?What are We Aligning?

How do We Align Simply & Quickly?How do We Align Simply & Quickly?

Agile SOA Alignment ExampleAgile SOA Alignment Example

DiscussionDiscussion

Note: Some materials are copyrighted

and IASA Denver Chapter is authorized

to redistribute. Other materials are not

and so the author’s contact info is provided

for those wanting to request that info.

2IASA Denver Chapter

Business of Architecture Problem StatementBusiness of Architecture Problem Statement

Even when architectures and design standards have been well defined it seems that to the design and development teams they are:

– Too abstract– Irrelevant

Ignored– Ignored– Unknown

New adopters of Agile development often have the misperception that Agile minimizes or eliminates the need for good design andthat Agile minimizes or eliminates the need for good design and architecture practicesHow do we build enterprise class solutions, which require best practices good architecture and standards and assure theirpractices, good architecture and standards, and assure their adoption and use by software and EDW/BI teams into operations?


BackgroundBackground

Researching “Making EA Relevant to SW & EDW/BI project teams”– Purpose is to assure that strategic/business intent persist through deployment

June 2008 IASA Denver Chapter we discussed the Business of ArchitectureSummer 2008 applied the Agile SOA Alignment to a project:– Anu Ramaswamy, business analyst & business architect (in-training)– Agile SOA examples are from her application and use

Nov 2008 to Mar 2009 applied the Strategic Alignment to scoping a pp g g p gmulti-year, multi-$10M’s project– Dave Guevara, program business architect– Company is confidential due to competition sensitive info

April 2009 adapted Business Alignment to a 2-week rapid assessment of a whether a strategic Agile enterprise SOA project was aligned with the CEO’s strategic intent.g g


What Do We Do With This?What Do We Do With This?

Provides “how to” guidance in support of TOGAF 9.0This research is providing the materials and testing ground for curriculum for IASA courses:– Denver Chapter?Denver Chapter?– IASA certification courses

Should be a book or couple of practical “how to” books that:– Pull the concepts together in a way that we can use just what

we need– Are written at two levels of the project teams and their

management


"Nothing is particularly hard if you "Nothing is particularly hard if you divide it into small jobsdivide it into small jobs.“.“

Henry Ford

This is how you help many minds understand their part of a complex solution

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their part of a complex solution

Our reality Our reality in IT project teamsin IT project teams

We get less time than we need– So there is no time to be a purist or altruistic

Our business world and rules are more complex– But our brains want simpler (they are too full)

Stuff happens and things change “dynamically”M h t ll th ti tt h– Murphy says at all the wrong times, no matter when

We have to use Agile, Waterfall, Standards…But no guidance on how to assure business value– But no guidance on how to assure business value

More for less and faster– General mandate from business to create more value

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General mandate from business to create more value

IASA Denver Chapter

THE Critical THE Critical Outcomes of Business AlignmentOutcomes of Business Alignment

Business & IT Speed– Time to market– Adaptability– Agile development team’s velocityAgile development team s velocity

Reduce Friction– What makes change hard?– Where are there constraints (why we can’t do something)?

Two Primary Speed/Friction DeterminantsTwo Primary Speed/Friction Determinants– Technology– People

8

p

IASA Denver Chapter

Why Increase Why Increase SpeedSpeed??

Speed: SSC Ultimate AeroG i f t t i th ld f 2007– Guinness fastest car in the world for 2007

– 0-60 2.7 sec, 257 mph+, Twin Turbo V8 1183 hp– $654,400 base price (yes base, you can buy options)$654,400 base price (yes base, you can buy options)

• Speed: Your business pis growing fast & you did it all right…

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Why Reduce Why Reduce FrictionFriction??

Friction: SSC Ultimate AeroC l t t 60 j t th i t ti ?– Can you accelerate to 60 on just the rims, or two tires?

– Can you get to 257 mph when you can’t close the doors?

– How long will the Twin Turbo V8 run without oil?

• Friction: Core parts of• Friction: Core parts of your business haven’t been built for speed…

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How do we get How do we get SpeedSpeed and and Low Low FrictionFriction??

1. Simplify your Business Model2. Modularize the Blocks3. Standardize the Interfaces4. Look at points that change fast5. Know the overall economics & throughputg p6. Focus on constraints to value throughput7. Manage to the Vital Signs (3-5 KPIs)g g ( )


How Do We Align Simply & Quickly?How Do We Align Simply & Quickly?Business Alignment Framework

Aligning IT to BusinessA li d t P j t L lApplied at a Project Level

Business Business Alignment Alignment Framework Provides a COMMON Set of Framework Provides a COMMON Set of Business Requirements Across All ProgramsBusiness Requirements Across All Programs

Enterprise Programs and InitiativesEnterprise Programs and InitiativesBusiness & IT

Business Alignment Framework

InfrastructurePrograms

ApplicationDevelopment

orRationalization

EDW/BIPrograms

13©2009 David R Guevara Jr All Rights Reserved

Business Alignment FrameworkBusiness Alignment Framework

Strategic Capabilities Alignment

Strategic GoalsOperational Goals (business unit)Operational Capabilities

Tonight’s Chat

Alignment p pBusiness Capabilities & Drivers

High Level Business Requirements - Domains (eg analytics, governance)- Environments (around lifecycles)- Service Level Expectations

Business Functional

Components

Capabilities

- Service Level Expectations- Business Processes

Business Capabilities

Organizational Capabilities Detailed Business Requirements

& A ti itiMap

Components

Focus Biz/Org Capabilities Analysis on the Gap

Capabilities Alignment Technical

CapabilitiesIntegration Capabilities Software Functions & Features

& Activities Components & Gap

Analysis

Focus Tech/Integ Capabilities Analysis on the Gap

TechnicalCapabilities Alignment

Solution ArchitectureSoftware Design Components

Software Design

Components

©2009 David R Guevara Jr All Rights Reserved

AlignmentSoftware Implementation/Construction

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Business Alignment of IT Business Alignment of IT –– the Puzzle Piecesthe Puzzle Pieces

At a project level may or may not:– Have clear business strategies in the business case.– Clear context for the capabilities that are needed.– Enterprise or design standards guidance or a design conceptp g g g p– Context of the project within the portfolio of other projects– Resource contention with efficient means of reprioritization

B i C ft h l th t di tlBusiness Cases often have goals that are directly related to the outcomes of the project in terms of:– Process improvements– FTE or contractor reductions– IT efficiencies – quicker & easier troubleshooting, upstream QA– Dependencies of business and operating goals on specificDependencies of business and operating goals on specific

capabilities©2009 David R Guevara Jr All Rights Reserved 15

Puzzle Master BasicsPuzzle Master Basics

Define Dimensions and Service Level Expectations (SLE)

– Captures all the stuff that people are supposed to think of

Use Top-Down in combination with Bottoms-Up– Like building the border of the puzzle then working the area where

the pieces clearly fit togetherthe pieces clearly fit together.

Adapt Use Case Outline to manage User Story Inventories– Connect User Stories together in context of the business valueConnect User Stories together in context of the business value

– Carve up the problem into bite size pieces

Map Business Architecture to Solution Design Architecturecomponents

– This structure is used to assign capabilities to requirements to designs


What are What are the Dimensions of Alignment?the Dimensions of Alignment?

3 Dimensions– Business ProcessesBusiness Processes

• Hierarchy from value chain components

– DomainsDomains• Non-process or Environment

– Environments• Supports artifact life cycles• Supports artifact life cycles• Examples are Software,

Product, Customer, Work Artifacts (bill, invoice)( , )

Color of a Dimension– Measure of Goodness

S i L l E t ti

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– Service Level Expectations


HighHigh--level business requirements within the level business requirements within the Business Alignment FrameworkBusiness Alignment Frameworkgg

Business Processes: Define these completely from external business interfaces through all workflows

Business Domains: Not process or environment core competencies

Examples are analytics, governance, business economics

Business Environments:Business Environments: Environments are the assets and resources that are required to support a life cycle

Things that have life cycles: clients, products, projects, software, data

Service Level Expectations: These are measures of “goodness”; how many, how fast, how well


Use Business Alignment Framework to ConnectUse Business Alignment Framework to ConnectTop Down with Bottoms Up AnalysisTop Down with Bottoms Up Analysis

Structure that aligns enterprise strategies with tactical execution…

Strategies

Risk Management

Business Value Governance

Initiatives

Roadmaps

Enterprise ArchitectureBusiness Architecture

Value Management

FSA BlueprintsInvestments

Communication Plans Business Models

CompositionActivity / Event Technical

Business Processes

Biz & IT Domains

EnvironmentsBusiness Alignment Framework

Business Alignment FrameworkSLEs

RepositoriesLifecycle

Management

Metadata

Composition

Budgets

Management

Messaging

Governance

Services

Solution Architecture

Projects

Technical, Information & Software Architectures

Infrastructure SecurityServices

ArchitectureProjects

Solution Management


Managing User Story Inventories for CompletenessManaging User Story Inventories for Completeness

How do you prove that the User Story inventory, for a given release , will provide end-to-end process functionality?

Business Processes------>>> 1. Capture Application Information

1.1 1.2 1.3 1.4 1.5 1.6 1.7

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Requirements TrackingPrecedenceBasic FlowAlternate FlowsExceptions FlowsData validationsBusiness RulesUI specifications

Use Case Outline reminds Business Analyst, S M t d

Using a spreadsheet or tool like Rally, track User Stories to businessprocesses and the Use Case outline topics, egUI specifications

Interface specificationsDomainEnvironment

Value Realized from Activity ( % )

Project Tracking

Scrum Master and Lead Developer of what to consider when defining User Stories or Epics

p , gBasic Flow.

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R Requirements completedS Sprint scheduledC Completed functionality

Simple status indicator shows where in the design cycle the User Stories functionality are currently.©2009 David R Guevara Jr All Rights Reserved

Business to Solution Architecture Business to Solution Architecture

Capabilities & High Level R i t

Biz & OrgCapabilities

Domains, SLEs,

Environments,

Business

Requirements

Functional C t

eg Quote to Cash Process

eg Channel Sales SupportArchitecture Component Cash Process Sales Support

Solution Architecture Design

Componenteg Shared Services eg Policy

Capabilities & Implementation

Implementation (vendor specific)Technical &

Integration

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Implementation Solutions

Integration Capabilities

Strategic Alignment ExampleStrategic Alignment ExampleStrategic Goals to Business Capabilities

Due to confidential nature of informationh f thi l i d t d li dmuch of this example is redacted or generalized

Strategic Alignment Example SummaryStrategic Alignment Example Summary

IT had done three prior major programs lead by major SI’s (at different times) with a very large investment and the business stilldifferent times) with a very large investment and the business still did not have what they needed. Expanded Business Model – scalability and rapid time to market. Caught Between – legacy systems not yet retired and new systems. Simultaneous Change – Several simultaneous transformational change events while restructuring costs and moving to an outsourced IT model.Excessive Complexity – Current solutions were fragile, difficult to change without breaking more than what was fixed, and there was no architectural foundation from which build the new loosely coupled, more adaptive solution and processes.

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Outcome from Strategic AlignmentOutcome from Strategic Alignment

# of Capabilities (Org was out of scope)– Business Unit 1: 348– Business Unit 2: 83– System-to-system Interfaces: 119 across 15 interfacesy y– Technical (core app and rules engine only): 284

All C biliti d tAll Capabilities were mapped to:– Strategic and operational goals and initiatives– First major release of two core systems and surrounding

interfaces– Basis of estimate for a 3-year development and deployment

program

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Strategic Strategic Capabilities AlignmentCapabilities Alignment

Strategic Goals

• To be strategic there should only be 2 to 3• These provide multi-year guidance on what the company

will do to be what the vision calls for and to create Durable GoalsCompetitive Advantage

Annual growth

Business Unit Goals 2009 2010 2011

Operational Goals

These goals should map directly to +X% +X% +X%

strategic and operational goals. +X% +X% +X%

They should span at least 2 to 3 years. X X X

O ti l

y p y

They MUST be measurable and the scope xx.x% xx.x% Xy.x%of the project should produce reporting of or to enable reporting these metrics x x X

Operational Capabilities

(11 total, 1 example)

• To define Operational Capabilities answer this question:What are the capabilities or drivers we need to achieve each goal. Some

capabilities support more than one goal, others may not. Be specific and validate that these capabilities are what directors and managers are doing in their c rrent ear and planning for ne t earp ) doing in their current year and planning for next year.

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Operational Goals to Operational Capabilities Operational Goals to Operational Capabilities AlignmentAlignment

Operational Goals (eg typical 5 types)(3 year Goals) 2009 to 2011

IncreaseRevenue Reduce Costs Improve

EfficienciesGovernance or Risk Mitigation

Sustain/ Create / Improve

Capabilities

Key Metrics Measureable Goals

Operational Capabilities

1. Answer the question: Map which Capabilities Will Produce Or Support

2. What are the drivers or capabilities Each Goal

3. That are needed to achieve

4. The Operational Goals?

5.

6. X X X X

7. X X X X X

8. X

9. X X X

10. X

X11. X X

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Operational CapabilityOperational Capability: : For Each For Each OpCapOpCap

Business Capabilities

5.1 Answer the question:

5.2 What are the Business Capabilities that are required to perform

5.3 The Operational Capabilities?

5.4

5 5 B i C biliti th th t l b d k th5.5 Business Capabilities are those that a role-based worker, the company or 5.6 A department must do to deliver Operational Capabilities.

5.7 Example: OpCap: Increase Cross-selling by X%. BizCap: View likely cross-sell products when client is on the phone

Service Level ExpectationsTh d ib th idi d h d t ti f th b i b t th• These describe the overriding and shared expectations from the business about the systems and solutions that will deliver the Business Capabilities.

• Examples are uptime, availability during working hours, what functions are available during outages, notification and response times of outages, business continuity timeframes for recovering after a disaster, ease of se across all Uis ease of administration across all s stem admin interfaces sec rit like singleease-of-use across all Uis, ease-of-administration across all system admin interfaces, security like single sign-on.

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Agile SOA ExampleAgile SOA ExampleBusiness Alignment to SOA Development Example

Implementation of this alignment was done byA RAnu Ramaswamy

[email protected]

Given the confidential nature of this project these slides will not be distributed but Anu has offered to answer any questions. We hope to co-publish a white

paper that can be shared with a public audience.

Agile Development ChallengesAgile Development Challenges

How do we assure that the User Stories completely d li h i d d b i l ?deliver the intended business value?How do we plan releases that deliver meaningful and visible business value to our business sponsors andvisible business value to our business sponsors and stakeholders?How do we assure that the point count is complete and that the velocity dependencies are accounted for?How do we identify blockages early on that are beyond the charter of the development team?the charter of the development team?How do we know when we put all the pieces of the puzzle together (the sprints) that it all fits and delivers the intended value?

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User stories alone can be problematicUser stories alone can be problematic

This material is copyright protected by Jeff PattonFor this content and related materials please refer to the presentation titled “patton_user_story_mapping”on slide # 13At this URL http://www agileproductdesign com/presentations/index htmlAt this URL http://www.agileproductdesign.com/presentations/index.html

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Accelerating Agile Requirements and DesignAccelerating Agile Requirements and Design

Example Business Requirements Alignment to SOA Agile Project


Open Discussion: Q & AOpen Discussion: Q & A

For questions or suggestions contact:Dave Guevara [email protected] 303.885.9144
