optimizing value to the enterprise with integrated enterprise architecture

Welcome Optimizing Value to the Enterprise with

Integrated Enterprise Architecture

Brian JamesDirector of Product ManagementMetastorm

April 21-23, 2008 Renaissance Washington, DC

© 2008 Metastorm Inc.

Agenda

Introduction

Building Enterprise

Architecture

Using Enterprise

Architecture

Getting Started



What is Enterprise Architecture?

“In a large modern enterprise, a rigorously defined framework

is necessary to be able to capture a vision of the „entire

system’ in all its dimensions and complexity. Enterprise

Architecture (EA) is a framework which is able to coordinate

the many facets that make up the fundamental essence of an

enterprise. It is the master plan which „acts as an integrating

force’ between aspects of business planning such as goals,

visions, strategies and governance principles; aspects of

business operations such as business terms, organisation

structures, processes and data; aspects of automation such as

application systems and databases; and the enabling

technological infrastructure of the business such as

computers, operating systems and networks.”

Dennis A. Stevenson,

Senior Editor, IS World Research



Building Enterprise Architecture



Enterprise Architecture Terminology

Today’s Enterprise

Architecture Frameworks

– Zachman

Framework

– Enterprise-Wide IT

Architecture

– The Open Group

– Federal Enterprise

Architecture

– DoDAF

Strategic

Direction

Business

Architecture

System

Architecture

Technology

Architecture



Enterprise Architecture Framework

Strategic Direction

Business Architecture System Architecture Technology Architecture

Data /

Object

Product /

Service

PeopleProcess Service /

Application Software

Hardware

InterfaceNetwork

Data Architecture

CapabilityEnvironment Goal

Application Architecture



Strategic Direction

Objectives

• Examine the enterprise‟s

environment, assess internal

capabilities and set direction

• Validate the business principles

and strategic business drivers of

the organization

• Create a vision for the enterprise

that will guide the development

of each architecture component

Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Business Interaction Model



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Strategy

Model

Current Envi ronment

Strategic Planning for Product ion Processes

Corporate goals, opportuni ty precedents, affected policies, and problems

impeding implementat ion.

impedes

red

uce

s

constrains

provides estimate prior to

is a requirement for




impedes

impedes

impedes

addresses

incurs

includes

takes advantage of

addresses


is re

aliz

ed

by

P.3

Maintain

Existing

Equipment

Lack of

Capital

Expenditure

Poor

Equipment

Maintenance

P.1

Redesign

Production

Processes

E.1

Entire

Process

Education

P.2

Update

Mfg.

Equipment

P.4

Acquire

New

Testing

Equipment

S.2

Train

Supplier

Personnel

Outdated

Tools

Poor Vendor

Training

Temporary

Employees

C.2

Increase

Sales to

Existing

Customers

P.2

Optimize

Internal

Processes

P.2.1

Supply

Chain

Efficiency

E

Employee

Policies

P.1

Inventory

Reorder

Point

P.2

Production

Guidelines

P.3

Product

Quality

EPA

Standard

100.33.45.A

7

Production

Increase

Product

Quality

3

Process

Improvement

«risk»

Quality

Deviations

«cost»

Training

Costs

3.3.3

Maintenance

Contracts

Increased

Number of

Competitors

Rising

Energy

Costs

Rising

Interest

Rates



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Goal Model

Quality

Widget

Goals

C

Customer

Goals

L

Learning and

Growth Goals

F

Financial

Goals

P

Process

Goals

F.2

Diversify

Income

Stream

F.1

Exceed

Shareholder

Expectations

F.4

Increase

Sales

Volumes

F.3

Improve

Margins

C.2

Increase

Sales to

Existing

Customers

C.1

Diversify

Customer

Base

C.3

Attract New

Customers

P.3

Develop

New

Products

P.1

Develop

Research

Capabilities

P.4

Target

Expanding

Market

Segments

P.2

Optimize

Internal

Processes

L.1

Develop

Employee

Skills

L.2

Integrate

Systems



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Business Architecture

Objectives

• Describe the current baseline


• Develop a target Business

Architecture, describing the product

and/or service strategy, and the

organizational, functional, process,

event, information, and geographic

aspects of the business environment

• Analyze the gaps between the

baseline and target Business

Architectures



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Quality

Widgets

Production Product

Development

MarketingFinance Field

Operations

Production

Control

PackagingInventory

Management

Assembly

Operations

Assembly

Worker

Supervisor Quality

Inspector

Organization

Model



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Workflow Model



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Data Architecture

Objectives

• Define the major types and

sources of data necessary to

support the business, in a way

that is understandable by the

stakeholders

• Define the data relevant to the

enterprise so that they are

complete, consistent and

stable



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

*

1is placed by

places

1..*

1

*

1requests

is requested by

*

1..*is shipped from

ships

Customer

Order

Order Item

Product

Warehouse

- Capacity[1] : Floating point number

- Name[1] : Text

- Address[0. .1] : Text

- FAX[0. .1] : Text

- Name[1] : Text

- Te lephone[0 ..1] : Text

+ Submit Order ()

- Item Price[0. .1] : Number (8)

- Descript ion[0. .1] : Text

- Name[1] : Text

- Quan tity On-Hand [0. .1] : Integer

- Reo rder Point [0. .1] : Integer

+ Replenish Inventory()

- Order Date [1] : Date

- Requested Ship Date[0. .1] : Date

+ Approve( )

+ Cancel( )

+ Hold()

+ Log( )

+ Rece ive( )

+ Reject()

+ Release( )

+ Schedule Product ion( )

+ Ship()

Class Model



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture


Objectives

• Define what kinds of application

systems are relevant to the

enterprise, and what those

applications need to do in order to

manage data and present

information to the system users

• Describe the applications as logical

groups of capabilities that manage

data in the Data Architecture and

support the business functions in the




Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

System Model



Business

Architecture

Strategic

Direction

Data

Architecture

Application

Architecture

Technology

Architecture

Use Case ModelComplete Order

exte

nd

s

Corrections

Valid Order

Priorities

Prioritized Order Priorities

OrderValidate Order

Prioritize Order

Prioritize Special

Order

Order Entry

Clerk

Order

Manager

Sales

Manager

Order

Entry

System



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Storyboard

Model

"Ne

w C

usto

me

r"

"De

mo

gra

ph

ics E

nte

red

"

"Cu

sto

me

r E

sta

blis

he

d"

"Unacceptable Credit"

"Current Customer" "Invalid Order"

"Order Created"

"Incomplete Product ID"

"Product Selected"

Customer

Billing

Information

Entry

Customer

Demographics

Entry

Customer

Selection

Order

Confirmation

Generation

Order

Entry

Order

Rejection

Generation

Product

Selection



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Technology Architecture

Objectives

• Define the major kinds of technologies

needed to provide an environment for the

System Architecture

• Identify technology principles and platforms

• Define the technology platforms and the

distribution of data and applications

• Establish a justification for the technology

platforms by relating them to the business

functions that will utilize them

• Support future growth



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Location Model



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

System Interaction Model

Central OfficeSales Office

Cu

sto

me

r D

ata

Order Order

Sch

edu

led O

rder

Sch

edu

led O

rder

Corporate

WAN

Order

Fulfillment

System

Order

Scheduling

System

Order

Database

A p p l i c a ti o n P la tf o r m

A p p l i c a ti o n

S e r v i c e s

U s e r I n t e r f a c e

S e r v i c e s

O p e r a ti n g

S y s t e m S e r v i c e s

Order Entry

System

D a ta b a s e S e r v e r

D a ta b a s e

M a n a g e m e n t

S y s te m ( D B M S )

S e r v ic e s

O p e r a ti n g

S y s te m S e r v i ce s

Customer

Database



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Deployment Model



Using Enterprise Architecture



A Pile of Documents does not Make

an Enterprise Architecture

“An Enterprise Architecture is a tool to help executives think about the organization as a whole. An Enterprise Architecture captures a wide variety of information, establishes relationships among the various documents and diagrams and stores all of the information together in a single repository, so that managers can then see the relationships, ask questions, identify problems, or run simulations to help make decisions about changes they are considering.”

Developing an Enterprise Architecture

Paul Harmon, Business Process Trends



The Value of Enterprise Architecture

is in the Relationships

Enterprise Architecture is more than a collection of the constituent architectures (Business, Application, Technology, and Information). The interrelationships among these architectures, and their joint properties, are essential to the Enterprise Architecture.

Enterprise-Wide IT Architecture (EWITA)



Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Association Matrices



Navigator

Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

Strategic

Direction

Business

Architecture

Data

Architecture

Application

Architecture

Technology

Architecture

P.2.1.1

Decrease

Material

Handling

Acquire

Raw

Materials

Fill Order Ship Order

Procurement

System

Production

Scheduling

System

Accounting

Services

Directory

Services

Electronic Data

Interchange

Services

Imaging

Functions



Enterprise Architecture

Provides Many Possibilities

Strategy

Model

Goal

Model

Business

Interaction

Model

Location ModelCorporate Strategy


State Chart

Use Case Model

Operation Model

Storyboard

Model

System

Model

Communication

Model

Software

Development

Tools

Organization Model

Data Architecture

Deliverable Model

Logical Data

Model

Physical Data

Model

Data Modeling

Tools

XMI Interface


Technical

Architecture Model

Deployment Model

Infrastructure

Management

Tools

XML Interface

Strategic

Direction

Business

Architecture

Systems

ArchitectureTechnology

Architecture

Technical

Tools

EA

Associations

Process

Validation by

Simulation

Process Architecture

Business

Process

Management

Tools

Process

Hierarchy

Workflow

Model

Business

Rules

XMI Interface

The model relationships to be analyzed

depend upon your specific objectives.

BPEL Interface



Enterprise Architecture Benefits

Process Effectiveness

Operational Efficiency

Opportunity Creation

Automation Efficiency

Current Future

Revenue

Generation

Cost

Reduction



Different Objectives will Emphasize

Different Architectures




Development Efficiency

Current Future

Revenue

Generation

Cost

Reduction

Strategic Direction


System Architecture


System Architecture



Strategic Direction



Getting Started



Steps to Enterprise ArchitectureStep 1: Define “Enterprise” Scope

“Enterprise”

Scope,

DirectionCurrent



Step 2: Define Strategic Direction

Strategic

DirectionFuture

“Enterprise”

Scope,

DirectionCurrent



Step 3: Define Current Architecture

Business

Architecture

System

Architecture

Technology

Architecture

Process

Effectiveness

Operational

Efficiency

Strategic

DirectionFuture

“Enterprise”

Scope,

DirectionCurrent



Step 4: Define Future Architecture

System

Architecture

Business

Architecture

Technology

Architecture

Strategic

DirectionFuture

Business

Architecture

System

Architecture

Technology

Architecture

Opportunity

Creation

Automation

Efficiency

Justification

“Enterprise”

Scope,

DirectionCurrent



???

Step 5: Gap Analysis

System

Architecture

Business

Architecture

Technology

Architecture

Strategic

Direction

Gap

Analysis

Future

Business

Architecture

System

Architecture

Technology

Architecture

Process

Improvements

System

Enhancements

Infrastructure

Changes

“Enterprise”

Scope,

DirectionCurrent



Step 6: Strategy Evaluation

System

Architecture

Business

Architecture

Technology

Architecture

Strategic

Direction

Gap

Analysis

Future

Business

Architecture

System

Architecture

Technology

Architecture

Process

Improvements

System

Enhancements

Infrastructure

Changes

+ +

Cost,

Timing &

Resources

needed to

achieve

Strategic

Direction

=

“Enterprise”

Scope,

DirectionCurrent



Key Planning Decisions

What are my

current EA

objectives and

how will my

architecture be

utilized in the

future?



Different Objectives Emphasize Different

Architectures




Development Efficiency

Current Future

Strategic Direction


System Architecture


System Architecture



Strategic Direction

Revenue

Generation

Cost

Reduction



Key Planning Decisions

What are my

current EA

objectives and

how will my

architecture be

utilized in the

future?

How much

organizational

commitment is

required for

success?



Lessons Learned

Sponsorship

Executive sponsor(s) must

demonstrate commitment at the

very outset, and periodically

throughout the program.

Management Structure

Business management oversight

of the EA process ensures

alignment with the mission, vision

and business strategy of the

organization.

Enterprise Architecture Scope

Don‟t commit to so much detail that you get lost in the weeds,

but don‟t scope the architecture definition at such a high level

that there is limited value to the results.



Lessons Learned

Communication Plan

Don‟t assume that all members of an

architecture team and key stakeholders

understand the architecture scope and

products the same. Communicate,

communicate, communicate!

EA and Business Metrics

Identify and collect the data that can

substantiate the impact of the EA on the

enterprise and its business processes.

Leverage Thought Leaders

Most thought leaders are able to explain the vision and purpose

of the EA to all levels of stakeholders, and “sell‟ the concept.

Don‟t assume that the thought leaders must or will come from

management.



44

Thank You!

Brian James

Director of Product Management

Metastorm

[email protected]