PLANNING AGILE MODERNIZATION FOR SUCCESS
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1 PLANNING AGILE MODERNIZATION FOR SUCCESS SANJIB NAYAK Founder and CEO (916) STRATEGY. INNOVATION. TRANSFORMATION.
2 AGENDA Patterns of Legacy and Modern Systems Understanding the Iterative and Incremental Transformation Recognizing the Challenges and Opportunities xplore - A FRAMEWORK FOR MODERNIZATION PLANNING Business Analysis Phase As-is Analysis Phase Alternative Analysis Phase Laying Out the Foundation for Iterative and Incremental Modernization Establish Foundation Architecture Define Technology, Standards & Frameworks Define Infrastructure & Platform Strategy Managing Transition State Modernization Roadmap Realizing the Target State Copyright 2016 xfusion Technologies Inc. All Rights Reserved 2
3 LEGACY SYSTEMS CHARACTERISTICS CHALLENGES Fragmented and duplicate data and services in silo Complex point-to-point integration Complicated dependencies Accidental architecture Brittle, inflexible architecture Legacy technology Leads to Interoperability challenges - challenging data sharing and access Inflexible IT system Increasing operations and maintenance cost Lack of business process adaptability Increasing compliance and security risks Copyright 2016 xfusion Technologies Inc. All Rights Reserved 3
4 MODERN ENTERPRISE SYSTEMS Business driven, agile technology architecture Service Oriented Architecture (SOA) Modular, Services are the architectural building blocks Reuse of existing assets Shared Services CHARACTERISTICS On-demand infrastructure and Platform services IaaS, PaaS Efficient business process adaptability Copyright 2016 xfusion Technologies Inc. All Rights Reserved Reduced cost and risks 4
5 LEGACY SYSTEMS MODERNIZATION TRANSFORMATION FROM CURRENT TO THE TARGET STATE ITERATIVE AND INCREMENTAL TRANSFORMATION Copyright 2016 xfusion Technologies Inc. All Rights Reserved 5
6 UNDERSTANDING THE ITERATIVE AND INCREMENTAL TRANSFORMATION MILESTONE ITERATIVE AND INCREMENTAL ITERATIVE ROADMAP CURRENT STATE TRANSITION STATE BIG BANG APPROACH TARGET STATE Copyright 2016 xfusion Technologies Inc. All Rights Reserved 6
7 INCREMENTAL MODERNIZATION CONCEPT CURRENT STATE SMALLER, BITE-SIZED MODULES BREAK INTO SMALLER MODULES M1 M2 M5 M3 M4 M6 THE WHOLE PIZZA M1 M2 M4 ROADMAP M6 CREATE ROADMAP TO SOLVE THE SMALLER PROBLEMS INCREMENTALLY AND ITERATIVELY M3 M5 Copyright 2016 xfusion Technologies Inc. All Rights Reserved 7
8 Service Granularity UNDERSTANDING MODULES - BUSINESS SERVICE COMPOSITION COMPOSING THE MODULES - KEY ENABLER FOR ITERATIVE AND INCREMENTAL MODERNIZATION BUSINESS ARCHITECTURE Process Eligibility Application Determine Member Eligibility Business Process Model (BPM) The terms business service and modules are used interchangeably TECHNICAL ARCHITECTURE Business processes are decomposed to identify the modules using a top-down approach Finer-grained modules/services are composed to build more coarsely-grained services Determine Member Eligibility Module dependency and priorities are key contributors for the incremental modernization roadmap Verify Eligibility Data Determine Eligibility Modules are implemented incrementally and iteratively - the Modernization Roadmap Verify Financial Info. Verify Non- Financial Info. Determine MAGI Eligibility Determine APTC/CSR Eligibility Services (Modules) are the building blocks for the Service Oriented Enterprise Copyright 2016 xfusion Technologies Inc. All Rights Reserved 8
9 RECOGNIZING THE MODERNIZATION CHALLENGES Unclear drivers Stakeholder expectations Lack of knowledge Complex dependencies Business continuity Different business priorities Many cooks, many recipes New infrastructure and technology platform Organizational change impacts Business and technical drivers for the modernization are not unified amongst the stakeholders Strategic and tactical goals, objectives aren t often identified and unified Not enough knowledge of the people, process and technology aspect of the current legacy systems Complex dependencies amongst the legacy applications and external partners and suppliers The external partners and suppliers need to continue with their business process while transitioning from current to the target architecture state External partners and suppliers may have different business priority to adopt to the modernized services Multiple vendors may bring different approaches, architectures, tools and technologies Impacts on skillset requirements, technology management strategy, organization and process Business process and new business ownership model and technology management process drives organization changes Copyright 2016 xfusion Technologies Inc. All Rights Reserved 9
10 RECOGNIZING THE MODERNIZATION OPPORTUNITIES Reduced modernization risks Reuse Shared services Improve business process efficiency Reduced modernization risks through incremental and iterative modernization Potential to reuse some of the existing legacy components Opportunity to leverage or be leveraged Opportunity to deliver business services more efficiently through reengineered business processes Improve business process adaptability Risk and compliance Opportunity to improve business process adaptability to changes Opportunity to reduce the risk and improve the compliance Copyright 2016 xfusion Technologies Inc. All Rights Reserved 10
11 xplore - A FRAMEWORK FOR MODERNIZATION PLANNING A HYBRID MODEL COMBINING STAGE/GATE MODEL AND SERVICE ORIENTED ARCHITECTURE (SOA) Copyright 2016 xfusion Technologies Inc. All Rights Reserved 11
12 STAGE 1 BUSINESS ANALYSIS Copyright 2016 xfusion Technologies Inc. All Rights Reserved 12
13 STAGE 1 BUSINESS ANALYSIS KEY QUESTIONS ADDRESSED WHY MODERNIZATION? ARTIFACTS MODERNIZATION BUSINESS CASE DEFINITION DOES THE MODERNIZATION INITIATIVE ALIGN TO THE BUSINESS AND STRATEGIC ROADMAPS, GOALS AND OBJECTIVES? JUSTIFICATION FOR STRATEGIC ALIGNMENT WHATS THE FUNDING MODEL FOR THE MODERNIZATION? SERVICE FUNDING MODEL WHO OWNS THE BUSINESS SERVICES AND MANAGE THE SERVICE PORTFOLIO? ORGANIZATION READINESS SERVICE OWNERSHIP MODEL Copyright 2016 xfusion Technologies Inc. All Rights Reserved 13
14 STAGE 2 ALTERNATIVE ANALYSIS AS-IS ANALYSIS TO-BE ARCHITECTURE AND STRATEGY DEFINITION Copyright 2016 xfusion Technologies Inc. All Rights Reserved 14
15 AS-IS ANALYSIS PHASE KEY OBJECTIVE KNOWLEDGE IN-SOURCING ANALYZING, DOCUMENTING AND GAINING KNOWLEDGE ABOUT PEOPLE, PROCESS AND TECHNOLOGY ASPECT OF THE LEGACY SYSTEM(S) Copyright 2016 xfusion Technologies Inc. All Rights Reserved 15
16 AS-IS ANALYSIS: KNOWLEDGE IN-SOURCING COMPONENTS BUSINESS ARCHITECTURE USER INTERFACE BUSINESS PROCESS USERS, PARTNERS AND SUPPLIERS BUSINESS RULES BUSINESS VOCABULARY BUSINESS EVENTS INFORMATION ARCHITECTURE TECHNICAL ARCHITECTURE DATA FLOW DATA MODEL SYSTEM USE CASE MODEL SYSTEM ARCHITECTURE DATA DEFINITION INTERFACE DEFINITION INTEGRATION ARCHITECTURE IMPLEMENTATION COMPONENTS ANALYTICS REPORTS 16
17 KNOWLEDGE IN-SOURCING A MODEL DRIVEN APPROACH 17
18 BOTTOM UP TOP DOWN TOP-DOWN AND BOTTOM-UP APPROACH FOR BUSINESS RULES EXTRACTION PEOPLE HOW MUCH ANALYSIS IS ENOUGH? SUBJECT MATTER EXPERTS DOCUMENTS BUSINESS RULES BRE TOOL, SCRIPTS THE WIDTH AND DEPTH OF AS-IS ANALYSIS AND BRE NEED TO BE DRIVEN BY SPECIFIC PROJECT NEEDS SOFTWARE CODE 18
19 STAGE 2 ALTERNATIVE ANALYSIS AS-IS ANALYSIS TO-BE ARCHITECTURE AND STRATEGY DEFINITION Copyright 2016 xfusion Technologies Inc. All Rights Reserved 19
20 STAGE 2: ALTERNATIVE ANALYSIS TO-BE ARCHITECTURE AND STRATEGY A CHECKLIST FOR SUCCESS Process Improvement Opportunities User Experience Alternatives and Lessons Learned Reuse Opportunity Business Alignment Service Catalog Module Priority Module Sourcing Technology Management Strategy Technology Standards Are there opportunities for improving the Business Process efficiency and adaptability? What are the opportunities for improving service delivery efficiency and end user satisfactions? Is enough Market Analysis done to learn the opportunities and lessons learned from other states and the industry? What legacy functions can be reused? What existing Business/Technical Services within and/or outside the organization can be used as a shared service? Is the Business Services (Modules) catalog defined and mapped to business goals and objectives? Are modules and their dependencies identified? Are the priorities for the modernization of the modules defined that considers the business priority/criticality and dependencies? Is the sourcing strategy (built/buy/web-enable/re-platform, etc.) for the modules defined? Are the infrastructure, and platform sourcing, management, and governance plan established? Are the technology platform, tool, standards and best practices defined? Foundation Technology Roadmap Is there a roadmap milestone defined to establish the technology foundation? Business Function Modernization Roadmap Is there a roadmap established to modernize the business functions (modules) iteratively and incrementally? Copyright 2016 xfusion Technologies Inc. All Rights Reserved 20
21 ARCHITECTURE AND STRATEGY: KEY TASKS AND DELIVERABLES Alternative analysis & to-be architecture definition Business services portfolio and module definition Market research Target business, information and technical architecture Transition state architectures Service delivery strategy Transition state architecture Modernization strategy definition Sourcing strategy, and costing Service delivery strategy definition (Intake and API) Technology management strategy Business services portfolio Business service sourcing strategy Module definition & priorities Technology, standards & frameworks Technology foundation architecture roadmap definition Modernization roadmap definition Infrastructure & platform strategy Foundation architecture roadmap Modernization roadmap Copyright 2016 xfusion Technologies Inc. All Rights Reserved 21
22 LAYING OUT THE FOUNDATION FOR ITERATIVE AND INCREMENTAL MODERNIZATION Copyright 2016 xfusion Technologies Inc. All Rights Reserved 22
23 MITIGATING THE INCREMENTAL MODERNIZATION CHALLENGES CHALLENGES MITIGATION Many cooks, many recipes Business continuity Define technology, standards & frameworks Define infrastructure & platform strategy Establish foundation architecture Different business priorities for partners and suppliers Establish transition state architecture Copyright 2016 xfusion Technologies Inc. All Rights Reserved 23
24 ARCHITECTURE COMPONENTS AND RELATIONSHIPS Delivers Methods and Approach Governance Implemented Using Technology Strategy Managed Using Technology Management Strategy Metrics Derived From Policies Process Aligned to Copyright 2016 xfusion Technologies Inc. All Rights Reserved 24
25 DEFINE TECHNOLOGY, STANDARDS, AND FRAMEWORKS KEY OBJECTIVES Establishing agile and flexible technology architecture using open industry standards Promote reuse of solutions Facilitate use and integration to commercial-off-the-self (COTS) products and solutions Tailor technologies and standards as necessary into robust solution sets TECHNICAL STANDARDS CATEGORIES Architecture, analysis and design standards industry standards and specifications for the planning, analysis, and design of software architecture Business enabling technologies - industry standards and specifications for process management involving definition, improvement, and innovation of business processes Service interoperability industry standards and specifications for web service standards across platforms, operating systems, and programming languages Security and privacy industry standards and specifications for securing information UX/UI standards and framework standards for developing technology platform independent responsive user interfaces Copyright 2016 xfusion Technologies Inc. All Rights Reserved 25
26 ESTABLISH FOUNDATION ARCHITECTURE 4 BUSINESS SERVICES Common technical services Used to implement business services Security, audit, logging, exception mgt. etc. 3 Service integration hub Enterprise service bus (ESB), API gateway, adapters, VETRO 2 Platform architecture enabling capabilities for business and technical services In-premise or Platform as a Service (PaaS) 1 Secure on-demand infrastructure architecture In-premise or Infrastructure as a Service (IaaS) Copyright 2016 xfusion Technologies Inc. All Rights Reserved 26
27 DEFINE INFRASTRUCTURE & PLAFORM STRATEGY APPROACH KEY COMPONENTS Enterprise technical architecture adoption Performance management validation Service hub architecture SOA alignment Cloud computing IaaS, PaaS Adoption of open industry standards and technology maturity COTS usage Technical model artifacts Methods and approaches Service live cycle management process, methods, tools and technology for managing the end to end lifecycle of the business and technical services Governance process Metrics Policies Processes Technology strategy Copyright 2016 xfusion Technologies Inc. All Rights Reserved 27
28 ESTABLISH SERVICE AND DATA INTEGRATION HUB SERVICE AND DATA INTEGRATION HUB KEY CAPABILITIES V E T R O RELIABLE MESSAGING Message brokering between heterogeneous environments Heterogeneous transports between service end points SOAP FILE /FTP TRANSPORTS REST JMS HTTP TCP/IP Mainfra me ADAPTERS ebusine ss Data Sources Configurable, Policy-driven, Centralized Security Enforcement manage, monitor and enforce security Configurable, Policy-driven, Centralized Sla Management manage, monitor and enforce SLAs Centralized service monitoring SERVICE LAYER VETRO/VETO Message Validation (V) Message Enrichment (E) OPERATIONAL SYSTEMS In-bound and out-bound Message Transformation (T) Configuration-driven Routing (R) Virtualized, Central Service Access Operate (O) ENTERPRISE APPLICATIONS MAINFRAME DATA LEGACY APP (C/C++) NEW SERVICE COMPONENT Copyright 2016 xfusion Technologies Inc. All Rights Reserved 28
29 MANAGING TRANSITION STATE Copyright 2016 xfusion Technologies Inc. All Rights Reserved 29
30 RECAP MITIGATING THE CHALLENGES MANY COOKS MANY RECIPES BUSINESS CONTINUITY DEFINE TECHNOLOGY, STANDARDS & FRAMEWORKS DEFINE INFRASTRUCTURE & PLATFORM STRATEGY ESTABLISH FOUNDATION ARCHITECTURE DIFFERENT BUSINESS PRIORITIES FOR PARTNERS AND SUPPLIERS ESTABLISH TRANSITION STATE ARCHITECTURE Copyright 2016 xfusion Technologies Inc. All Rights Reserved 30
31 TRANSITION STATE ARCHITECTURE PATTERN Legacy System Partners Batch File LEGACY 3270 Screen XML Data Modern System Partners 4 Integrate Legacy Interface to ESB FTP Adapter (Legacy Integration) CICS Adapter (Legacy Integration) BS1 Data Transformation to Canonical XML Format Route to the Modernized Service 5 Implement Data Transformation and Routing Rules INTEGRATION HUB 3 Integrate Service to ESB LBS1 - Legacy Business Function (COBOL/CICS) 1 Modernize Business Service BS1 - Modernized 1a Externalize Business Rules Business Service (Java/.NET /WS) Legacy Data 2 Migrate Data Modernized Data Business Rules Engine (BRE) VSAM RDBMS Rule Set Copyright 2016 xfusion Technologies Inc. All Rights Reserved 31
32 BUSINESS SERVICES MODERNIZATION TRANSITION STATE Legacy System Partners Legacy 3270 Screen Portal Modern System Partners Batch File XML Data FTP Adapter (Legacy Integration) CICS Adapter (Legacy Integration) BS1 BS2 BS3 BS x Data Transformation Input Routing to Canonical Components Routing XML Format Components Routing Routing Components Routing Components Components INTEGRATION HUB LBS1 - Legacy Member Mgt. Fn. (COBOL/CICS) LBS2 - Legacy Client Index (COBOL/CICS) LBS3 - Legacy Client Index (COBOL/CICS) BS1 Member Management Service BS2 Client Index Service BS3 Eligibility Service BSx Others.. Legacy Data VSAM Legacy Data VSAM/ DB2 Legacy Data VSAM/ DB2 Member Data RDBMS Client Index Data RDBMS Eligibility Data RDBMS Others.. Data RDBMS LEGACY COMPONENTS AND DATA Copyright 2016 xfusion Technologies Inc. All Rights Reserved MODERNIZED MEDS BUSINESS SERVICES 32
33 MODERNIZATION ROADMAP BREAK INTO SMALLER MODULES M1 M3 M2 M4 M5 M6 CREATE ROADMAP FOR INCREMENTAL AND ITERATIVE IMPLEMENTATION OF MODULES FOUNDATION INFRASTRUCTURE M1 M2 M4 M6 IMPLEMENTATION ROADMAP FOUNDATION PLATFORM AND COMMON TECHNICAL SERVICES M3 M5 Copyright 2016 xfusion Technologies Inc. All Rights Reserved 33
34 REALIZING THE TARGET STATE MODULE 1 MODULE 2 MODULE 3 4B INTEGRATE PARTNERS AND SUPPLIERS 4A IMPLEMENT MODULES SERVICE AND DATA INTEGRATION 3 ESTABLISH INTEGRATION INFRASTRUCTURE AND SERVICES FOUNDATION PLATFORM 2 ESTABLISH FOUNDATION TECHNOLOGY PLATFORM FOUNDATION INFRASTRUCTURE 1 ESTABLISH FOUNDATION INFRASTRUCTURE Copyright 2016 xfusion Technologies Inc. All Rights Reserved 34
35 MODERNIZATION PLANNING PHASE ROADMAP PHASE I: PLANNING PHASE STAGE 1 STAGE 2 STAGE 3 IMPLEMENTATION PHASE BUSINESS CASE DEFINITION AS-IS ARCHITECTURE ANALYSIS BUSINESS RULES EXTRACTION (BRE) ALTERNATIVE ANALYSIS - MODERNIZATION STRATEGY, ROADMAP AND TO-BE ARCHITECTURE DEFINITION MODERNIZATION VISION, GOALS, AND KPI DEFINITION MODERNIZATION ROADMAP DEFINITION SOLUTION REQUIREMENTS DEFINITION SOLICITATION/VENDOR PROCUREMENT Copyright 2016 xfusion Technologies Inc. All Rights Reserved 35
36 MODERNIZATION IMPLEMENTATION PHASE ROADMAP PHASE II: IMPLEMENTATION (DD & I - ITERATIVE & INCREMENTAL) ESTABLISH FOUNDATION INFRASTRUCTURE AND TECHNOLOGY PLATFORM FOUNDATION PLATFORM READINESS MODULE 1 MODULE 2, 3. MODULE N IMPLEMENT COMMON TECHNICAL SERVICES [RELEASE 1] MODULE 1 ITERATIVE AND INCREMENTAL [RELEASE 2] MODULE 2, 3 [RELEASE N] MODULE N SPRINT Copyright 2016 xfusion Technologies Inc. All Rights Reserved 36
37 QUESTIONS?
38 Sanjib Nayak CEO & President (916)
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