Life Assurance EA Forum

Transcription

1 Life Assurance EA Forum 23 July 2008 Emperors Palace Johannesburg, South Africa Stuart Macgregor Certified TOGAF Practitioner

2 2 Agenda Time Topic Presenter 10:00 10:15 Welcome Freda du Toit 10:15 11:00 Enterprise Architecture What is the state of EA? What is the value proposition? Why EA for Life Assurance? 11:00 12:00 Insurance Business Architecture SDT s business process model for Life Assurance Feedback on the model 12:00 13:00 Lunch 13:00 14:30 Life Assurance EA Forum Is there a requirement to form an industry vertical? The Open Group as a vehicle to facilitate the process The process of establishing an industry vertical The implications of belonging to an industry vertical 14:30 15:00 Coffee / Tea 15:00 16:00 Life Assurance EA Forum Next Steps What is required for a founders meeting? Product portfolio prioritisation Charter Stuart Macgregor Freda du Toit Stuart Macgregor Stuart Macgregor

3 3 Section Outline Positioning today s presentation What is Enterprise Architecture (EA)? What is the EA value proposition? What is the state of EA in South Africa? Why EA for Life Assurance?

4 The State of EA in RSA? 4 Conference held at Emperors Palace 165 delegates The Open Group hosted the conference Open to members and non-members Third annual regional conference in South Africa (July 2008) Theme: EA Made EAsy! Between 5 and 10 years 22% More than 10 years 15% None 18% Less than 1 year 11% Telecoms 10% Exploration, Mining, Metals and Minerals 7% Energy and Petrochemical 13% Education 2% Financial Services 20% Other 5% Johannesburg EAPC July 2008 More than employees 10% EA Consulting Services and Products 23% IT 10% Government 10% 0 20 employees 7% employees 16% Between 2 and 5 years 22% Between 1 and 2 years 12% employees 52% employees 15% Positioning

5 Open Group Membership? 5 Not a member, but plan to join 26% Not a member 28% Member 47% Using Open Group Material 24% Active Member 11% Member 11% Johannesburg EAPC July 2008 Positioning

6 EA Definitions? 6 Gartner EA as Strategy Wikipedia ISACA The process of translating business vision and strategy into effective enterprise architecture change by creating, communicating and improving key principles and models that describe the enterprise s future state and enable its evolution The organizing logic for core business processes and IT infrastructure reflecting the standardization and integration of a company s business model. Enterprise Architecture is the organizing logic for business processes and IT infrastructure reflecting the integration and standardization requirements of the firm s operating model. Business-orientated technology road map for the attainment of business goals and objectives. IEEE Standard 1471 The fundamental organization of a system embodied in its components, their relationships to each other, and to the environment, and the principles guiding its design and evolution. What is EA? EDS Enterprise Architecture is a discipline, methodology, and practice for translating business vision and strategy into the fundamental structures and dynamics of an enterprise at various levels of abstraction. It provides a coherent set of models, principles, guidelines, and policies that model the enterprise and restrict design and engineering freedom as the enterprise evolves into the future. Len Fehskens Those properties of an entity and its environment that are essential to its fitness for purpose for some specified mission.

7 7 Purpose of Enterprise Architecture Enterprise Architecture is required to transform a legacy of fragmented applications, organizational structures and processes (both manual and automated)... BUSINESS FOCUS TECHNOLOGY FOCUS Enterprise Information Technology Enterprise Governance Enterprise Architecture Process IT Governance Enterprise Performance Management Knowledge Management Global Systems Enabling Technology...integrated environment with optimised processes that are responsive to change and the delivery of the business strategy. What is EA? Copyright Real IRM Solutions (Pty) Ltd All Rights Reserved

8 8 Enterprise Architecture Domains Consists of current and future state models Is implemented through the Enterprise: Business architecture, Knowledge Business Architecture Information architecture, Data Architecture, Applications portfolio, and Enterprise-wide technical architecture Provides organizations with the ability to conduct impact assessments, analyze alternative scenarios and implement appropriate strategies Information Architecture Data Architecture Applications Architecture Technology Architecture EA Content Principles Inventory Models Standards (Re-)Defines the business design for sustainable competitive advantage What is EA? Copyright Real IRM Solutions (Pty) Ltd All Rights Reserved

9 9 An Architecture of Enterprise Architecture What is EA?

10 10 Putting frameworks into Perspective Enterprise-Wide Architecture Framework Region / Business Unit-Wide Architecture Framework System-specific (Product) Architecture Frameworks What is EA?

11 Enterprise Architecture Domains Products and Services People Content Processes Tools 11 Putting frameworks into Perspective EA Continuum Business Architecture Information Architecture Real IRM Solutions Data Architecture Applications Architecture Technology Architecture What is EA? Copyright Real IRM Solutions (Pty) Ltd All Rights Reserved

12 12 TOGAF ADM What is EA? Copyright Real IRM Solutions (Pty) Ltd All Rights Reserved

13 13 Drivers for Enterprise Architecture Government (Political/Legal) Shifts Potential Entrants Technological Shifts Industry Suppliers Clients Customers Competitors Social/Consumer Shifts Substitutes International / Economic Shifts Business Information Data Applications Technology Changing market customers demands Globalization and hyper-competition Talent war new forms of collaboration Frustrated, agility constrained by systems Regulation Information glut yet starved Human centered Information security No one version of the truth Attention economy Fragmented Duplicated Trapped within systems Vendors of packaged applications control data structures Commoditization of process - rise of SOA Multiple ERPs Human centered to support increasingly dynamics nature or work Lacking business intelligence and information analysis Commoditized Standardized Enabling not differentiating Limited leverage of global vendor relations Shared services What is the EA value proposition?

14 EA Objective? 14 Support System Development 6% Change Management 4% Business and IT Alignment 63% Other 37% Manage Complexity 11% Knowledge Management 7% Johannesburg EAPC July 2008 Supports Decisionmaking 6% Other 3% What is the EA value proposition?

15 15 The Road to Enterprise Architecture June 1998 June 2004 August 2006 In 1995 we started our study of enterprise architecture we just did not know it. At the time we thought we were studying information technology infrastructure transformations. In 1998 we thought we were studying enterprise system implementations. In 2000 it was e-business. But sometime in 2000, we recognized that each of these studies examined basically the same thing: Enterprise Architecture What is the EA value proposition?

16 16 Adding Value Effective IT governance is the single most important predictor of the value an organization generates from IT Top-performing enterprises generate returns on their IT investments up to 40% greater than their competitors. They clarify business strategies and the role of IT in achieving them. They measure and manage the amount spent on and the value received from IT. They assign accountability for the organizational changes required to benefit from new IT capabilities They learn from each implementation, becoming more adept at sharing and reusing IT assets. but there is no single model of good corporate governance Peter Weill and Jeanne W. Ross, IT Governance: How Top Performers Manage IT Decision Rights for Superior Results, Harvard Business School Press, 2004 What is the EA value proposition?

17 EA Governance Positioning? 17 A No EA Governance 20% Management Board 6% Top Management 37% B Other 2% No Sponsor 8% Management Board 17% Other 5% IT Management 23% IT Management 20% Johannesburg EAPC July 2008 Middle Management 12% Middle Management 12% Top Management 38% C IT Manager 11% No EA Function 17% Other 6% Johannesburg EAPC July 2008 Board of Directors 5% Chief Executive Officer 14% Chief Strategy Officer 5% Chief Information Officer 42% What is the state of EA in South Africa? A. At which level of seniority is EA governance managed in your organisation? B. At which level of seniority are EA initiatives sponsored in your organisation? C. To whom does the EA function report to in your organisation?

18 Enterprise Architecture Domains Products and Services People Content Processes Tools 18 EA Framework and Tools EA Continuum Business Architecture Information Architecture Real IRM Solutions Data Architecture Applications Architecture Technology Architecture What is the state of EA in South Africa? Copyright Real IRM Solutions (Pty) Ltd All Rights Reserved

19 EA Framework and Tools? 19 Telelogic System Architect 13% Sparx Enterprise Architect 11% Other 9% Microsoft Visio 20% Casewise 11% IDS Scheer s ARIS 35% A 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 44% 2% 4% 3% 8% 2% 15% 22% B Johannesburg EAPC July 2008 No Standard Other Functional Decomposition Flow Chart 4% MEGA 1% 16% 20% 20% A. EA Toolset B. EA Framework C. Solution Notation UML 40% C 0% 10% 20% 30% 40% 50% What is the state of EA in South Africa?

20 20 Membership by Industry Sector Transportation 1% Telecomms 2% Retail & Distribution 0% Other sectors 8% Unclassified 12% Academic 11% Consortia & Standards Bodies 5% Energy & Utilities 2% Enterprise Architecture Consultancy/Training 1% Financial Services 4% Manufacturing 3% Leisure 0% IT - System integrators 9% Government - All others 6% Government - Military 1% Health Service 1% IT - System & PC Vendors 3% IT - Consultants 19% IT - Software vendors 11% What is the state of EA in South Africa?

21 21 EA Forum Members By Geography New Members 2008 All Members Australia 4% South Africa 9% India 5% US 23% Australia 5% South Africa 8% Canada 5% Asia/ Pacific 1% India 3% US 37% Japan 9% Japan 7% Europe 18% UK 32% UK 17% Europe 15% What is the state of EA in South Africa?

22 22 TOGAF Adoption 4,000 3,000 2,000 1,000 TOGAF Certifications TOGAF Downloads Pre05 3Q05 2Q06 1Q07 4Q07 Fortune Top 50 Downloads Forbes Global Top 50 Downloads 16% 32% Haves Haves 68% Have nots 42% Have nots What is the state of EA?

23 Products and Services People Content Processes Tools 23 Enterprise IT Architecture Enterprise IT Architecture Business and IT Alignment Simplification Standardisation B I Rationalisation New Capabilities... SOA D BPM A T Why EA for Life Assurance?

24 Products and Services People Content Processes Tools 24 From EA for IT Architecture to Enterprise Architecture Enterprise Architecture Strategic Planning Organisation Structuring Business Transformation, Engineering B I Acquisitions and Mergers Outsourcing the Business Risk Management D Competencies and Skills Identification A T Benchmarking and Managing Best Practice Regulatory Compliance Why EA for Life Assurance?

25 25 Agenda Time Topic Presenter 10:00 10:15 Welcome Freda du Toit 10:15 11:00 Enterprise Architecture What is the state of EA? What is the value proposition? Why EA for Life Assurance? 11:00 12:00 Insurance Business Architecture SDT s business process model for Life Assurance Feedback on the model 12:00 13:00 Lunch 13:00 14:30 Life Assurance EA Forum Is there a requirement to form an industry vertical? The Open Group as a vehicle to facilitate the process The process of establishing an industry vertical The implications of belonging to an industry vertical 14:30 15:00 Coffee / Tea 15:00 16:00 Life Assurance EA Forum Next Steps What is required for a founders meeting? Product portfolio prioritisation Charter Stuart Macgregor Freda du Toit Stuart Macgregor Stuart Macgregor

26 26 Section Outline Is there a requirement for an industry vertical? The Open Group as a vehicle to facilitate the process The process of establishing an industry vertical The implications of belonging to an industry vertical

27 27 Quick Facts Consortium > 25 years Over 7,800 participants from 314 member enterprises Vendor neutral 1 member 1 vote Technology neutral A trusted partnership between end user enterprises (Customers) and suppliers of IT products and services (Suppliers) Driven by what members want to work on /1/2004 2Q04 4Q04 2Q05 4Q05 2Q06 4Q06 2Q07 4Q07 The Open Group

28 28 The TOGAF Story Customer members demand architecture standards Customer members select TAFIM as preferred starting point DoD Information Systems Agency (DISA) donate TAFIM as base TOGAF first published TOGAF 7 Technical Edition TOGAF 8 Enterprise Edition The Interoperable Enterprise Business Scenario first published First TOGAF Certification Program Launched TOGAF 9 In Progress The Open Group

29 29 Forum Roadmap Initial Chicago Work In-process 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 Review Finalize 2008 Revision Project Andrew Josey TOGAF Core WG TOGAF Modelling WG Jane Varnus/Paul van der Merwe/ Andrew Josey Bill Estrem/ Garry Doherty TOGAF Certification SC Standing Committee Terry Blevins/Hans van den Bent TOGAF MDA Synergy Project COBIT/ISACA Project TOGAF and ITIL Project Case Studies Project Exploitation of AF White Papers Skills Framework Harmonization Localization Project Definitions of EA Strategy Project Ed Harrington Stuart Macgregor Serge Thorn Judith Jones Chris Greenslade David Jackson Judith Jones Len Fehskens Janine Kemmeren/Ed Harrington The Open Group

30 30 Semantic Interoperability Workgroup Information Architecture! Semantic Interoperability is the ability of two or more computer systems to exchange information and have the meaning of that information accurately and automatically interpreted by the receiving system. The Open Group

31 31 Service Oriented Architecture The Open Group

32 Enterprise Architecture Domains Products and Services People Content Processes Tools 32 Life Assurance Industry Vertical EA Continuum Business Architecture Information Architecture Real IRM Solutions Data Architecture Applications Architecture Technology Architecture Industry Vertical Copyright Real IRM Solutions (Pty) Ltd All Rights Reserved

33 33 TOGAF ADM Industry Vertical Copyright Real IRM Solutions (Pty) Ltd All Rights Reserved

34 34 Life Assurance Industry Vertical ACORD eeg7 Vendors SDT IBM? SAP? C O N T E N T EA Capability Knowledge Management TOOLS PROCESSES CONTENT PRODUCTS PEOPLE SERVICES Intellectual Capital Innovation P R O J E C T S Products/Services Tools People 0 Current Target Best Practice, Industry Trends Analyst Content (Gartner, AMR Research, ) De Facto Industry Standards (SCOR, ECR, ISO, OMG, COBIT / ITIL / TOGAF ) Process Content Industry Vertical Copyright Real IRM Solutions (Pty) Ltd All Rights Reserved

35 Enterprise Architecture Domains Products and Services People Content Processes Tools 35 Product Portfolio EA Continuum Business Architecture Information Architecture Real IRM Solutions Data Architecture Applications Architecture Technology Architecture Copyright Real IRM Solutions (Pty) Ltd All Rights Reserved

36 Enterprise Architecture Practice? 36 Product EA Ontology EA Principles EA Conceptual Framework EA Views and Viewpoints EA Roles and Responsibilities EA Process Definition EA Scorecard EA Maturity Assessment Framework EA Toolset Requirements Framework EA Templates Product Portfolio Description Definition of EA concepts and terms as well as the interrelationship between them. A set of guiding principles required to establish a business-appropriate and sustainable EA practice in an organisation. Definition of the EA deliverables and their interrelationships. Definition of a standard set of EA views and viewpoints that are relevant to the Life Assurance industry. Definition of the EA roles, the associated skills and responsibilities. Definition of the EA process based on the TOGAF ADM customised for the Life Assurance industry. Definition of the key performance measures that should be considered to manage the delivery of EA to the organisation. An EA maturity assessment framework that would guide the organisation in establishing an EA practice. A framework that defines the various evaluation criteria that should be considered in selecting a comprehensive toolset to deploy EA in the organisation. A comprehensive set of EA templates that will assist organisations in implementing EA.

37 Business Architecture Domain? 37 Product Business Process Reference Model Business Role Reference Model Business Location Reference Model Business Risk Reference Model Description A generic process reference model that is representative of all the Life Assurance operations. A definition of the standard business roles that can be encountered in the Life Assurance industry and that will be used in the Business Process Reference Model for role allocation. A definition of the standard business locations that can be encountered in the Life Assurance industry and that will be used in the Business Process Reference Model to indicate where specific activities should be performed. Definition of a reference model with risk categories. This will be linked to the Business Process Reference Model and indicate which activities can be implemented as controls. Product Portfolio

38 Information Architecture Domain? 38 Product Information Reference Model Ontology Description An information classification model that represents the information that is required by a mining operation. The information elements will be linked to the Business Process Reference Model to show information flow. Compiling an ontology that will standardise the terms and definitions used in the industry. Knowledge Taxonomy Business Performance Metrics Reference Model Compliance Reference Model Product Portfolio A reference model presenting a knowledge taxonomy that can be used to organise and structure all the knowledge in a mining operation. This taxonomy will be related to the Information Reference Model to indicate information sourcing. A reference model that identifies all the possible metrics required to manage the performance of the mining operation. These metrics will be related to the Business Process Reference Model and derived from that would be suggested scorecards per role based on the role allocation. A reference model that shows the various legislative and regulatory requirements for mining operations and how they relate to each other. The various requirements would be mapped to the Business Process Reference Model.

39 39 Information Architecture Domain Optimised Measured Managed Defined Initial No Info Architecture Johannesburg EAPC July 2008 Product Portfolio 0% 5% 10% 15% 20% 25% 30% 35% 40%

40 DAT Architecture Domains? 40 EA Domain Product Description Data Architecture Application Architecture Technology Architecture Data Reference Model Service Reference Model IT Technology Reference Model A comprehensive data model that is focussed on Master Data Management. The Data Reference Model will be related to the Information Reference Model to show information sourcing. A service model developed, based on the SOA principles, that is representative of the services required by a mining operation. The services will be related to the Business Process Reference Model. A reference model developed, based on SOA principles, that reflects the various technology services required to support the application services. Product Portfolio

41 41 content sharing content re-use/usability workgroup team leadership Regional Workgroup Capability consultant support DVS/GOC budget workgroup meetings TOG Resources (F) individual recognition relevance to participants industry sector focus Regional Workgroup Willingness To Participate percieved clarity of direction organisational recognition time constraints - level of collaboration - industry standards corporate IPR policy restrictions TOG Infrastructure Capability level of participation personal growth/learning regional workgroup productivity increase TOG Membership Value Proposition (F) Regional Workgroup Products organisational membership value potential Membership Implications individual membership value increase global workgroup products increase peer networking Global Workgroup Products

42 42 The Open Group Forum Pricing Membership Implications

43 43 Antitrust Guidelines The implications of belonging to an industry vertical: Meetings Standard Setting Activities Exemptions from the Antitrust Laws Membership Implications

44 44 Antitrust Guidelines - Meetings Keep in mind the pro-competitive purposes of the Life Assurance EA Forum, and participate only in discussions that further those purposes Avoid any discussion of matters pertaining to the way your company competes, including discussions of any member or non-member company's prices, services, customers, costs, or non-public future plans Do not engage in any "off the record" discussions or "rump sessions" concerning sensitive matters pertaining to the way in which your company competes or otherwise does business Official minutes of Life Assurance EA Forum meetings must be accurate and complete Do not disparage other companies or their products and services If you are in doubt about any activity in connection with a Life Assurance EA Forum meeting, consult The Open Group or your company's counsel Membership Implications

45 45 Antitrust Guidelines Standard Setting The Life Assurance EA Forum will consider architectural, business, technical and other standards. Such standard-setting activity is permitted by the antitrust laws, which recognize that developing standards is an important and legitimate function of industry groups. By eliminating unnecessary incompatibility of products and services, or improving the safety and efficiency of equipment, standards can benefit both the providers and the users of those products and services. Standards should: 1. be advantageous to those who adopt them and their customers; 2. be voluntary. There should never be any agreement or pressure to influence individual companies to adhere to uniform standards; rather, each company should be free to decide on its own whether to adopt or reject the standard; 3. be set in a process which is fair, open, and representative; 4. not arbitrarily exclude competitors or reduce output in a market; and 5. focus on technical and operational factors, and avoid unnecessarily addressing commercial factors. If companies compete on the basis of a difference that will be eliminated by a standard, the standard should be reviewed closely by antitrust counsel before it is adopted. Membership Implications

46 46 Agenda Time Topic Presenter 10:00 10:15 Welcome Freda du Toit 10:15 11:00 Enterprise Architecture What is the state of EA? What is the value proposition? Why EA for Life Assurance? 11:00 12:00 Insurance Business Architecture SDT s business process model for Life Assurance Feedback on the model 12:00 13:00 Lunch 13:00 14:30 Life Assurance EA Forum Is there a requirement to form an industry vertical? The Open Group as a vehicle to facilitate the process The process of establishing an industry vertical The implications of belonging to an industry vertical 14:30 15:00 Coffee / Tea 15:00 16:00 Life Assurance EA Forum Next Steps What is required for a founders meeting? Product portfolio prioritisation Charter Stuart Macgregor Freda du Toit Stuart Macgregor Stuart Macgregor

47 47 Section Outline What is required for a founders meeting? How will a charter be constructed? How should we progress from here? What do you need to get your company to approve an industry vertical?

48 Vision Document? 48 EMMMv Example

49 Collaboration? 49 General Discussion

50 50 EA Industry Vertical Charter EMMMv Example

51 Founders Meeting? 51 A meeting with an agenda A vision to step through A draft charter People to attend the meeting Buy-in..

52 52 Next Steps Agreement with the Open Group Draft Vision Document and Charter Founders Meeting Afterwards Minutes of the meeting Follow-up to join Chasing the pipeline Creating the product portfolio Setting up the next meetings Realising business value!

53 53