Experiences with Enterprise Architecture using TOGAF and IBM Rational System Architect at DnB NOR

James Dzidek, Ph.D., IT ConsultantLars Jørgensen, Enterprise Architect, DnB NOR

Presentation for the Models 2010 Conference

October 5, 2010

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Outline

• Short background on DnB NOR• DnB NOR’s expectations for Enterprise Architecture• A definition of Enterprise Architecture• The TOGAF Framework• Metamodel• Tool Support• Types of Modeling• The EA Trinity• Modeling Principles• Practical Challenges & Advice• Our EA Tool: IBM Rational System Architect

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Norway's leading financial services group

• Total combined assets > 2 100 billion NOK

• More than 2.3 million retail customers

• Norway's largest Internet banks, dnbnor.no and postbanken.no, with more than 1.5 million users

• More than 200 000 corporate customers

• Norway's most extensive distribution network for financial services

• Norway's largest life and pension insurance company with around 1 000 000 customers

• Norway's largest asset management operation with more than 600 000 mutual fund customers in Norway and 283 institutional clients in Norway and Sweden

• Norway's largest capital markets operation

• Norway's leading real estate broker

• More than 14 000 full-time positions(incl. DnB NORD)

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….and the most international

• Partner for Norwegian companies abroad and for large international companies in Norway

• International network of 13 branches and representative offices

• Private banking in Luxembourg

• Operations in Poland and the Baltic states through DnB NORD

• Presence in North-East Russia through DnB NOR Monchebank

• Norway's leading foreign exchange bank

• One of the world's foremost shipping banks

• A major international player in the energy sector

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A History of Mergers & Acquisitions

Merger 1990

Acquisition 1996

Merger 1999

Acquisition 2002

Acquisition 2003

Acquisition 1992

Merger 1990

Merger 2003

GjensidigeNOR ASA

DnCDnC

Bergen BankBergen Bank

Four large savings banksFour large savings banks

SparebankenABCSparebankenABC

DnB

ForenedeForsikringForenedeForsikring

VitalVital

DnBDnB

Postbanken

DnB

Skandia AMSkandia AM

DnB

GjensidigeLiv

GjensidigeLiv

Nordlands-banken

Nordlands-banken

DnB

SparebankenNOR

SparebankenNOR

DnB

Gjensidige NOR

SparebankenNOR

Den norskeHypotekforening

Gjensidige Bank/ Elcon Finans

Gjensidige NORSparebank

SparebankenOslo/AkershusSparebankenOslo/Akershus

FellesbankenFellesbanken

Merger 1985

Real KredittRealkreditt

Acquisition 1992

Gjensidige NORSpareforsikringGjensidige NORSpareforsikring

Acquisition 1992

Merger2002

Acquisition 1993

Acquisition 1999

De-mutualisation

De-mutualisation

Aquisition2005

Aquisition2005

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Technology is an increasingly important competitiveness driver

Mobile Services

Collaboration & Mobility

CRM & Business Intelligence

Sourcing

Architecture

Standardized Processes

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DnB NOR’s expectations for Enterprise Architecture

• See the various IT initiatives in context.• Ability to translate business strategies in into optimal IT solutions.• Help deal with frequently changing customer and business requirements.• Expectation of faster completion of analysis since individual projects can

utilize already-available data.

• Commitment to this effort:• Governance: consolidation of relevant reasonability from individual

business architects to the chief architect• Team: project manager, enterprise architects, consultants• Tools

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What is Enterprise Architecture? 1/3

• The challenge for the Enterprise Architect, by analogy, is in helping to create a set of rules or policies that encourage desirable behavior for the enterprise while discouraging undesirable behavior.

• The architect must then place these policies into a framework that coordinates them across the organization.

• If this approach sounds like governance, you’re right. But governance alone doesn’t address the broader problem of how to architect an enterprise for change.

Level of Abstraction: High

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Source: ZapThink Blog, "The Beginning of the End for Enterprise Architecture Frameworks"

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What is Enterprise Architecture? 2/3

• The set of principles and models that guides the design and realization of the processes, organizational structures, information, applications and technical infrastructure.

• Architecture is used to coordinate change occurring at an organization; it channels change. If nothing has to be changed, there is no need for architecture.

BusinessArchitecture(Process / Org)

InformationArchitecture(Data / App)

TechnicalArchitecture

(Middleware / Platform / Network)

EA

Level of Abstraction: Medium

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What is Enterprise Architecture?

A very pragmatic definition:• Controlled, Structured, Documentation• Analysis (reports) are performed on this structured

documentation• The reports provide various points of view on all

artifacts in the repository

Level of Abstraction: Low

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TOGAF

• The Open Group Architecture Framework (TOGAF)

• Establishes a common terminology• Architecture Development Method:

Guide to developing an Enterprise Architecture

• Content Metamodel• Checklist of things that you may

want to take into account• Must be customized to your practical

needs and goals• is incomplete, e.g., does not talk

about data lifecycle• the metamodel is immature

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What is a Metamodel?

• From Wikipedia: “An ontology is a formal representation of knowledge as a set of concepts within a domain, and the relationships between those concepts. It is used to reason about the entities within that domain, and may be used to describe the domain.”

• A metamodel can be used to describe an ontology.

• The benefits of having a metamodel are numerous:• Better communication by getting everyone “on the

same page”• More tacit knowledge is made explicit• The ability to precisely define and execute various

analysis

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Example: TOGAF 9 Content Metamodel

Boliglån

Kredittprosess Retail

Retail Norge

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Advantages of Tool Support

• Models are no-longer just pictures• The tool can help enforce:

• Structure• Standards• Consistency

• Analysis become much less expensive to perform• Content dissemination

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The EA Trinity = Framework + Metamodel + Tool

• Typically several small units of “EA” work are preformed with a specific focus on one domain.

• This is done without standard methodologies or tools.• Having these three pieces of the puzzle helps various

actors in a large organization pull in the same direction.

Channel specificChannel specific

Internet

Mobile

Telephone

Agent

Contact centre

Branch

ATM/POS

Customer and Product ManagementCustomer and Product ManagementCustomer and engagement

Event-based interaction

Price and Product

Cross-channel customer

dialog

Analysis and adviceS

elf-se

rvice

dO

pera

tor se

rvice

d

Product deliveryProduct deliveryCards

(debit/credit)

Deposits, Credits &

loans

Insurance Life

Asset Management

Global Prod. Lim

TreasurySecurity

Management

Property & Casualty

Cash Management

Trade Finance

PaymentsClearing & Settlement

Global Prod. Limits

Collaterals

Group and SupportGroup and Support

ArchiveData

warehouseCompliance Finance

Risk manage-

mentOther

Access Manage-

ment

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What kind of modeling?

• “Models” does not equal “only Visualizations”• Visualizations are derived from the content

• Primarily “Conceptual” models: abstraction over reality• Also logical and physical models

• If a repository should at the same time contain data at conceptual, logical and physical levels, there will be inconsistencies• Very important to realize this quite early• Models will not be perfect for all stakeholders, for all

points of view, at all points in time

• The focus in on practicality, not UML standard perfection

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Principles

• The metamodel will never be complete• The corporate metamodel is a starting point• Start with the most important projects and their

analytical needs• Projects can extend the metamodel for specific needs

• Simplicity and maintainability over absolute truth• Minimize ambiguity and inconsistency• Based on TOGAF 9’s content metamodel• Involve the customer

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Practical Challenges & Advice 1/2

• Top-management support is essential• It is a significant challenge to get people to work with EA tools• Effort may be perceived as “extra work”

• It is not easy to obtain necessary funding for an EA project. One of the reasons is that EA addresses hidden costs like the pre-project costs caused by a lack of adequate documentation.• Pre-studies and requirement specifications take too long, undergo

too many iterations, are not precise enough and often end up not meeting the target

• This can be dramatically improved with a proper EA practice

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Practical Challenges & Advice 2/2

• The EA repository will never be the only source of documentation. The metamodel must take this into account, by, for example, specifying where the documentation “master data” resides.• To have control, one must have a single metamodel that

describes where all information resides. • Strategies for synchronization with those repositories must be put

in place.• It is very difficult to guess what the corporate metamodel should be.

It is better to establish a skeleton and then work with real projects.• Both, top-down and bottom-up approaches should be used when

populating the repository.• EA must acquire a critical mass before clear benefits can be

observed, first projects may not see all benefits• Must have a strategy for keeping content up to date

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Tool: IBM Rational System Architect

• Highly Customizable• metamodel, diagram types, behavior

• Large number of standards implemented• Offers both, thick and thin clients• Visual and textual reporting• Integration to many related tools

• business intelligence / report creation• asset management• product and portfolio management

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SA Integrations

Source and permission to use the slide: Brandon Jones, IBM (brandon.jones@se.ibm.com)

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Contact Information

Lars JørgensenEnterprise Architect at DnB NORlars.jorgensen@dnbnor.no+47 9525 7514

James DzidekIndependent Consultantjames.dz@gmail.com+47 4889 4576http://www.linkedin.com/in/dzidekThis presentation is posted on my LinkedIn page.