Architecting IT is Different Than Architecting the Business

Transcription

1 Architecting IT is Different Than Architecting the Business Presented by Tim Westbrock Managing Director, EAdirections The Open Group Architecture Practitioners Conference February 2, 2010

2 My Premise EA is NOT really Enterprise Architecture the way it is practiced in 99+% of organizations. It is IT architecture. What is missing? Business-Owned Enterprise Business Architecture and Enterprise Information (not Data) Architecture 2

3 Drivers for EA Business change / transformation / innovation Intentional and unintentional Many environmental factors (gov/reg, eco, tech, demo, geo, political, ) Leveraging new technology capabilities Virtualization, Proliferation of devices, Tech-tonics, Everything is Recorded Digitally, Predictive Modeling Explodes, Zero Downtime, Self-service Everything, 7x24 work availability, Ubiquitous real-time sensors, the Cloud Unwieldy / unmanageable, overly complex (and changing) IT environment is an obstacle to rapid change Lack of standards, lack of reuse and reusability, p2p interfacing, old/obsolete technologies 3

4 CISR EA Maturity Findings 4

5 Traditional View Impressions: Top down Business Driven Process before Info Application before Technology (Infrastructure) In truth, BA doesn t deliver much value, if any, due to the ownership of EA by the IT organization BA is limited to context diagrams and statements of business direction and vision IA is treated as Data Arch from the IT perspective Information value is minimal due to the lack of business perspective and ownership Typically the value comes from standardization of the Technology and Application Architecture (Maturity Stage 2) Allows for a sound platform upon which to architect and build the enterprise Enterprise Architecture Business Arch Information Arch Application Arch Technology Arch 5

6 Transitional View Impressions: Business Driven, more business involvement, usually due to large implementations More depth to BA and IA More content of process and entities with relations to apps and infrastructure Still owned by the IT organization Value derived from optimization of the Application portfolio and/or data standardization (Maturity Stage 3); which leads to an environment in which standard interfaces and business modularity is enabled (Maturity Stage 4) Provides for a more adaptable IT foundation and quicker time to market SOA partially enabled here (from the IT side) Application Arch Enterprise Architecture Business Arch Information Arch Technology Arch 6

7 Transformational View Impressions: Separation of Business and IT domains Work Activities and Information are the domain of the business App, Data and Technology are the domain of IT Business Activities drive the Application Architecture Business Information drives the Data Architecture Technology Architecture directly enables data and applications (not business process/function and information) Activity Arch Application Arch Enterprise Architecture Business Domain IT Domain Information Arch Data Arch Technology Arch 7

8 So What Is This Thing Called EBA? Enterprise Business Architecture is a set of artifacts/methods that help business leaders make decisions about DIRECTION and communicate the BUSINESS CHANGES that need to occur in their enterprise to achieve their vision. 8

9 Modes of BA I have seen 1. Getting Started by IT in isolation Varying degrees of quality dependent on business participation Ultimately limited due to lack of Business Ownership 2. Driven by IT, Participation from Business as Part of a Large Implementation Effort Typically associated with an ERP or other large system implementation Because of the tactical nature, the BA tends to be capturing current state with some improvements Focused, rather than enterprisewide Results in EA-level artifacts 3. In Partnership with the Business as Part of a Transformation Effort* Strategic, visionary BROAD effort driven by the business SMART GRID, e-government, M&A, Bank of the Future * Architecting the Business of the Enterprise isn t called Enterprise Business Architecture 9

10 What Have I Seen Comprise Initial BAs Initially worry about 7 components when developing a BA: Business Strategy / Vision Organization Business ives* Business Processes Information Entities Business Capabilities Performance Metrics Does Business Process Modeling = Business Architecture? No. BPM is an approach to documenting a key component of Business Architecture. What are the components? Do we have all the components? How can we assemble them to achieve our vision? * Business ive is near term and measureable 10

11 What Senior Execs Don t Want to See 11

12 Or This 12

13 What do CEOs/Sr. Execs Want from EBA? Understanding of the Problem Space Context and Impact Communication of Direction / Strategy Connection / Linkage Vertical and Horizontal Visualization of Trade-offs Visualization of Strategy and Direction Meet Business Documentation Requirements There is no rule that says you have to call any of this Architecture 13

14 Create Artifacts that Speak Business Artifacts must to be at a high enough level of abstraction that executives can fully understand them This means one page Content is Business-Oriented not Tech-Oriented Applications are a Business entity understood by execs Infrastructure Complexity is best left out of the pictures Business Context Diagrams Shows the breadth of the business operations in one page HL Relationship Maps provides further context for the strategic conversation (examples in appendix) Function to Organization Function to Application Application to Information EA is full of different views Don t be afraid to create multiple versions of an artifact aimed at different audiences 14

15 Company ABC's Information Systems 1.1 Public Relations & Communications 1.2 Advertising & Brand Management 1.3 Marketing Ops & Lead Generation 2.1 Prospecting & Lead Management 2.2 Qualification 2.3 Sales Proposals 2.4 Sales Negotiations & Contracts 3.1 Research & Development 3.2 Product Development & Design 3.3 Product Engineering 4.1 Procurement 4.2 Manufacturing 4.3 Inventory 4.4 Shipping 4.5 Customer Service 4.6 Returns 5.1 Purchasing 5.2 Accounts Recievable 5.3 Accounts Payable 5.4 Financial Reporting 5.5 Internal Audit 5.6 Human Resources 5.7 Information Systems (IT) 5.8 Legal Mapping the Application Systems to the FH In the diagram below, the Application Systems are mapped to the FH. This can be very effective in understanding which applications support which functions as well as possible overlap. The Application Systems use the same color coding in this map as in the previous slide. Company ABC High Level Functional Hierarchy 1.0 Marketing 2.0 Sales 3.0 Engineering 4.0 Operations 5.0 Finance & Administration Customer Relationship Management (CRM) Leads Contacts Accounts Campaigns Financial System General Ledger Cash Management Accounts Payable Accounts Receivable Fixed Assets Supply Chain Management Order Entry Purchasing Inventory Forecasting Manufacturing Bill of Materials Scheduling Cost Management Quality Control Capacity Planning Freight Management & Shipping Freight Management & Shippping Human Resources Personnel Payroll Benefits Time & Attendance Content Managent Content Management LEGEND System function 15

16 EA and Strategy Strategy is Owner/Executive level decisions for how an organization will achieve its goals and objectives of profitability, growth, delivering value, long-term persistence, gaining/sustaining competitive advantage, and/or serving its constituents Bridging the gap between Business Strategy and everyday activities is imperative to the value of EA Lack of well-planned, articulated business strategy can be overcome in the short term with a variety of techniques Gathering annual reports, BofD meeting presentations, and other material from the executives; LoB strategies Developing relationships with strategic planners, leveraging existing relationships that exist in IT Conducting industry research What else? Long-term success (of an enterprise, not just EA) through transformation requires not only business strategy, but also the analysis and the articulation of the required changes to the enterprise s capabilities to achieve the strategy 16

17 Capabilities The Language of BA at the Next Level SCC Strategic Capability Changes Derived from Enterprise Business Strategies What capabilities must change in order to achieve our strategies? Business Information Application Technology SCC Hierarchy Environmental Trends Enterprise Business Strategies Business Capabilities Changes Information Capabilities Changes Technology Cap. Changes Solutions Capabilities Changes 17

18 Business Capabilities Changes (BCC) Articulate the impact of strategy on business operations Answer the following questions: To support our enterprise business strategies What business processes changes are necessary? What business components must be changed/added? What business stakeholders are affected and how? What is the impact on the organizational structure? What is the impact on our extended value network suppliers, partners, customers,? EBS 1 EBS 2 EBS 3 BCC 1 X BCC 2 X X BCC 3 X X BCC 4 X BCC 5 X BCC 6 X X BCC 7 X BCC 8 X? BCC 9 X 18

19 Business Capability Changes Reduce opportunity to proposal conversion time by 60%, from 10 to 4 business days Utilize partner channels for targeted marketing campaigns to qualified prospects Identify and rationalize standard offering components, component-level terms and conditions, pricing, and deliverables Automate sales proposal generation capability, including appropriate approvals and workflow to reduce opportunity-to-proposal conversion time Reduce development response times for identified product deficiencies / bug fixes by 50% Support other functions (such as space planning, product promotions planning, setting inventory levels, logistics, and resource planning) with universal demand forecasts for all products in all channels and all locations 19

20 Company ABC's Information Systems Company ABC's Organizational Structure Company ABC's Organizational Structure Company ABC's High Level Information Artifacts CEO Leads 1.1 Public Relations & Communications 1.1 Public Relations & Communications Contacts 1.2 Advertising & Brand Management 1.2 Advertising & Brand Management 1.3 Marketing Ops & Lead Generation LEGEND 1.0 Marketing 2.0 Sales 1.3 Marketing Ops & Lead Generation 2.1 Prospecting & Lead Management 2.1 Prospecting & Lead Management 2.2 Qualification 2.2 Qualification 2.3 Sales Proposals 2.3 Sales Proposals 2.4 Sales Negotiations & Contracts 2.4 Sales Negotiations & Contracts 3.1 Research & Development 3.1 Research & Development 3.2 Product Development & Design 3.2 Product Development & Design 3.3 Product Engineering 3.3 Product Engineering Sales & Marketing Corporate Marketing Sales National Accounts Sales Engineering Research & Development Engineering Manufacturing Operations Procurement Receiving Inventory & Shipping Customer Service Finance & Administration Purchasing Accounts Receivable Accounts Payable Financial Management Human Resources Information Systems General Counsel LEGEND Primary Responsibility Secondary Responsibility 3.0 Engineering 4.1 Procurement 4.1 Procurement 4.2 Manufacturing 4.2 Manufacturing CRM Financial System Supply Chain Manufacturing Ship Human Resources Accounts Campaigns General Ledger Cash Management Accounts Payable Accounts Receivable Fixed Assets Order Entry Prospect Information Prospect Contact Information Prospect Credit Customer Information Customer Contact Information Customer Credit Customer History Product Information Product Descriptions Product Specifications Product Pricing Inventory Product Inventory Component Inventory Repair Parts Orders Customer Order Customer Invoice Shipping Shipping Notice Product Returns Return Information LEGEND Authoritative Source ('Corporate Record') Primary user of information artifact Secondary user of information artifact 1.1 Public Relations & Communications 1.0 Marketing 2.0 Sales 1.2 Advertising & Brand Management 1.3 Marketing Ops & Lead Generation 2.1 Prospecting & Lead Management 2.2 Qualification 2.3 Sales Proposals 2.4 Sales Negotiations & Contracts 3.1 Research & Development 3.2 Product Development & Design Purchasing Inventory Forecasting 4.3 Inventory 4.3 Inventory Bill of Materials 4.4 Shipping 4.4 Shipping Scheduling 4.5 Customer Service 4.5 Customer Service Cost Management 4.6 Returns 4.6 Returns Quality Control 5.1 Purchasing 5.1 Purchasing 4.0 Operations 5.0 Finance & Administration Customer Relationship Management (CRM) Leads Contacts Accounts Campaigns Financial System General Ledger Cash Management Accounts Payable Accounts Receivable Fixed Assets Supply Chain Management Order Entry Purchasing Inventory Forecasting Manufacturing Bill of Materials Scheduling Cost Management Quality Control Capacity Planning Freight Management & Shipping Freight Management & Shippping Human Resources Personnel Payroll Benefits Time & Attendance Content Managent Content Management LEGEND System function 3.0 Engineering 3.3 Product Engineering 4.1 Procurement 4.2 Manufacturing 4.0 Operations 5.0 Finance & Administration 4.3 Inventory 4.4 Shipping 4.5 Customer Service 4.6 Returns 5.1 Purchasing Capacity Planning 5.2 Accounts Recievable 5.2 Accounts Recievable 5.2 Accounts Recievable Freight Management & Shipping 5.3 Accounts Payable 5.3 Accounts Payable 5.3 Accounts Payable Personnel 5.4 Financial Reporting 5.4 Financial Reporting 5.4 Financial Reporting Payroll 5.5 Internal Audit 5.5 Internal Audit 5.5 Internal Audit Benefits 5.6 Human Resources 5.6 Human Resources 5.6 Human Resources Time & Attendance 5.7 Information Systems (IT) 5.7 Information Systems (IT) 5.7 Information Systems (IT) Content Management 5.8 Legal 5.8 Legal CM 5.8 Legal Map Capabilities Company ABC High Level Functional Hierarchy 1.0 Marketing 2.0 Sales 3.0 Engineering 4.0 Operations 5.0 Finance & Administration BCC s to functional hierarchy BCC s to org structure CEO EBA Sales & Marketing Corporate Marketing Sales National Accounts Sales Engineering Research & Development Engineering Manufacturing Operations Procurement Receiving Inventory & Shipping Customer Service Finance & Administration Purchasing Accounts Receivable Accounts Payable Financial Management Human Resources Information Systems General Counsel Primary Responsibility Secondary Responsibility Company ABC High Level View of Information Systems ICC s to Information entities ICC s to application portfolio EIA Company ABC High Level Functional Hierarchy TCC s to technology catalog ETA Company ABC High Level Functional Hierarchy SCC s to application portfolio EAA 20

21 Company ABC's Information Systems Company ABC's Organizational Structure Company ABC's Organizational Structure Company ABC's High Level Information Artifacts CEO Leads 1.1 Public Relations & Communications 1.1 Public Relations & Communications Contacts 1.2 Advertising & Brand Management 1.2 Advertising & Brand Management 1.3 Marketing Ops & Lead Generation LEGEND 1.0 Marketing 2.0 Sales 1.3 Marketing Ops & Lead Generation 2.1 Prospecting & Lead Management 2.1 Prospecting & Lead Management 2.2 Qualification 2.2 Qualification 2.3 Sales Proposals 2.3 Sales Proposals 2.4 Sales Negotiations & Contracts 2.4 Sales Negotiations & Contracts 3.1 Research & Development 3.1 Research & Development 3.2 Product Development & Design 3.2 Product Development & Design 3.3 Product Engineering 3.3 Product Engineering Sales & Marketing Corporate Marketing Sales National Accounts Sales Engineering Research & Development Engineering Manufacturing Operations Procurement Receiving Inventory & Shipping Customer Service Finance & Administration Purchasing Accounts Receivable Accounts Payable Financial Management Human Resources Information Systems General Counsel LEGEND Primary Responsibility Secondary Responsibility 3.0 Engineering 4.1 Procurement 4.1 Procurement 4.2 Manufacturing 4.2 Manufacturing CRM Financial System Supply Chain Manufacturing Ship Human Resources Accounts Campaigns General Ledger Cash Management Accounts Payable Accounts Receivable Fixed Assets Order Entry Prospect Information Prospect Contact Information Prospect Credit Customer Information Customer Contact Information Customer Credit Customer History Product Information Product Descriptions Product Specifications Product Pricing Inventory Product Inventory Component Inventory Repair Parts Orders Customer Order Customer Invoice Shipping Shipping Notice Product Returns Return Information LEGEND Authoritative Source ('Corporate Record') Primary user of information artifact Secondary user of information artifact 1.1 Public Relations & Communications 1.0 Marketing 2.0 Sales 1.2 Advertising & Brand Management 1.3 Marketing Ops & Lead Generation 2.1 Prospecting & Lead Management 2.2 Qualification 2.3 Sales Proposals 2.4 Sales Negotiations & Contracts 3.1 Research & Development 3.2 Product Development & Design 3.3 Product Engineering Purchasing 4.1 Procurement Inventory 4.2 Manufacturing Forecasting 4.3 Inventory 4.3 Inventory Bill of Materials 4.4 Shipping 4.4 Shipping Scheduling 4.5 Customer Service 4.5 Customer Service Cost Management 4.6 Returns 4.6 Returns Quality Control 5.1 Purchasing 5.1 Purchasing 4.0 Operations 5.0 Finance & Administration Customer Relationship Management (CRM) Leads Contacts Accounts Campaigns Financial System General Ledger Cash Management Accounts Payable Accounts Receivable Fixed Assets Supply Chain Management Order Entry Purchasing Inventory Forecasting Manufacturing Bill of Materials Scheduling Cost Management Quality Control Capacity Planning Freight Management & Shipping Freight Management & Shippping Human Resources Personnel Payroll Benefits Time & Attendance Content Managent Content Management LEGEND System function 3.0 Engineering 4.0 Operations 5.0 Finance & Administration 4.3 Inventory 4.4 Shipping 4.5 Customer Service 4.6 Returns 5.1 Purchasing Capacity Planning 5.2 Accounts Recievable 5.2 Accounts Recievable 5.2 Accounts Recievable Freight Management & Shipping 5.3 Accounts Payable 5.3 Accounts Payable 5.3 Accounts Payable Personnel 5.4 Financial Reporting 5.4 Financial Reporting 5.4 Financial Reporting Payroll 5.5 Internal Audit 5.5 Internal Audit 5.5 Internal Audit Benefits 5.6 Human Resources 5.6 Human Resources 5.6 Human Resources Time & Attendance 5.7 Information Systems (IT) 5.7 Information Systems (IT) 5.7 Information Systems (IT) Content Management 5.8 Legal 5.8 Legal CM 5.8 Legal Bringing it all Together Company ABC High Level Functional Hierarchy 1.0 Marketing 2.0 Sales 3.0 Engineering 4.0 Operations 5.0 Finance & Administration CEO EBA Sales & Marketing Corporate Marketing Sales National Accounts Sales Engineering Research & Development Engineering Manufacturing Operations Procurement Receiving Inventory & Shipping Customer Service Finance & Administration Purchasing Accounts Receivable Accounts Payable Financial Management Human Resources Information Systems General Counsel New / Changed Processes & Functions New / Changed Channels & Partnerships New / Changed Products & Services New / Changed Roles & Organization Primary Responsibility Secondary Responsibility Company ABC High Level View of Information Systems EIA New / Changed Information Entities New / Changed Information Sources and Consumers New / Changed Information Flows Data Management Policies and Data Standards Data Services Portfolio Company ABC High Level Functional Hierarchy ETA New / Changed Infrastructure Components (Standards) New / Changed Infrastructure Configurations & Patterns New / Changed Infrastructure Lifecycle Change Management Policies Infrastructure Services Portfolio Company ABC High Level Functional Hierarchy EAA New / Changed Solution Portfolio New / Changed Application Integration Approaches New / Changed Application Patterns & Frameworks Application Services Portfolio 21

22 EA Connects Strategy to Implementation Executive Management Annual, Tactical Goals, ives & Targets Existing Operations New/Changed Capabilities Delivered Project A CLIENT (Service Requestor) Build & Integrate Standard Service Request Service Provider Standard Service Response WORK Business Strategy Tactical Project Requests Models of the Current State Enterprise Populate Project B CLIENT (Service Requestor) Build & Integrate Standard Service Request Service Provider Standard Service Response WORK Enterprise Architecture Project Portfolio Mgt. Input CLIENT (Service Requestor) Build & Integrate New/Changed Capabilities Required EA Roadmap Project Requests Adds/Changes to Applications, Infrastructure, Information, & Business Process Capabilities Timeline/Interdependencies Project C Standard Service Request Service Provider Standard Service WORK Response CLIENT (Service Requestor) Models of the Future State Enterprise Standard Service Request Service Provider Standard Service WORK Response Represents Transforms G O V E R N A N C E 22

23 Questions? Architecting IT is Different Than Architecting the Business Presented by Tim Westbrock Managing Director, EAdirections The Open Group Architecture Practitioners Conference February 2,

24 About EAdirections Tim Westbrock We Work WITH You To: Improve the value of IT to your enterprise Improve Enterprise Architecture (EA) programs Refine/Tune Governance Mechanisms Create a Portfolio-Based Culture Integrate Management Disciplines Unify Business/IT Perspectives Operate a World-Class Office of the CIO Balance the Strategic with the Tactical George S. Paras How We Do It: Continuous Mentoring of IT Leaders CIO, EA Team, PMO, Office of the CIO, Assess Org Structures, People, Teams Build Internal Support and Sponsorship Analyze and Drive Activity Plans Review and Improve Processes & Deliverables Contribute Relevant Examples & Research Provide Pragmatic, ive, Unbiased and Prescriptive Feedback on Everything You Do Thought Leaders. Mentors. Deep Relationships. 24

25 APPENDIX Additional Slides 25

26 1.1 Public Relations & Communications 1.2 Advertising & Brand Management 1.3 Marketing Ops & Lead Generation 2.1 Prospecting & Lead Management 2.2 Qualification 2.3 Sales Proposals 2.4 Sales Negotiations & Contracts 3.1 Research & Development 3.2 Product Development & Design 3.3 Product Engineering 4.1 Procurement 4.2 Manufacturing 4.3 Inventory 4.4 Shipping 4.5 Customer Service 4.6 Returns 5.1 Purchasing 5.2 Accounts Recievable 5.3 Accounts Payable 5.4 Financial Reporting 5.5 Internal Audit 5.6 Human Resources 5.7 Information Systems (IT) 5.8 Legal Functional Hierarchy Company ABC High Level Functional Hierarchy 1.0 Marketing 2.0 Sales 3.0 Engineering 4.0 Operations 5.0 Finance & Administration 26

27 Company ABC's Organizational Structure 1.1 Public Relations & Communications 1.2 Advertising & Brand Management 1.3 Marketing Ops & Lead Generation 2.1 Prospecting & Lead Management 2.2 Qualification 2.3 Sales Proposals 2.4 Sales Negotiations & Contracts 3.1 Research & Development 3.2 Product Development & Design 3.3 Product Engineering 4.1 Procurement 4.2 Manufacturing 4.3 Inventory 4.4 Shipping 4.5 Customer Service 4.6 Returns 5.1 Purchasing 5.2 Accounts Recievable 5.3 Accounts Payable 5.4 Financial Reporting 5.5 Internal Audit 5.6 Human Resources 5.7 Information Systems (IT) 5.8 Legal Mapping Organizational Structure to FH One of the first tasks is to map the current organization structure to the Functional Hierarchy. In the example below, the organizational structure is on the vertical axis. Mapping the organizational structure to the FH is useful for checking the completeness of the matrix. (Note: more detailed FHs are very useful in identifying redundant activities.) Company ABC High Level Functional Hierarchy 1.0 Marketing 2.0 Sales 3.0 Engineering 4.0 Operations 5.0 Finance & Administration CEO Sales & Marketing Corporate Marketing Sales National Accounts Sales Engineering Research & Development Engineering Manufacturing Operations Procurement Receiving Inventory & Shipping Customer Service Finance & Administration Purchasing Accounts Receivable Accounts Payable Financial Management Human Resources Information Systems General Counsel LEGEND Primary Responsibility Secondary Responsibility 27

28 Company ABC's High Level Information Components 1.1 Public Relations & Communications 1.2 Advertising & Brand Management 1.3 Marketing Ops & Lead Generation 2.1 Prospecting & Lead Management 2.2 Qualification 2.3 Sales Proposals 2.4 Sales Negotiations & Contracts 3.1 Research & Development 3.2 Product Development & Design 3.3 Product Engineering 4.1 Procurement 4.2 Manufacturing 4.3 Inventory 4.4 Shipping 4.5 Customer Service 4.6 Returns 5.1 Purchasing 5.2 Accounts Recievable 5.3 Accounts Payable 5.4 Financial Reporting 5.5 Internal Audit 5.6 Human Resources 5.7 Information Systems (IT) 5.8 Legal Mapping Information Artifacts to the FH In the diagram below, the Information Artifacts are list down the left hand side and then mapped to the Functional Hierarchy. Over time some organizations refine this diagram to include information about which Functions can modify the Information Artifact as well as selected metrics (e.g. Number of Customer Orders, Processing Time). Company ABC High Level Functional Hierarchy 1.0 Marketing 2.0 Sales 3.0 Engineering 4.0 Operations 5.0 Finance & Administration Prospect Information Prospect Contact Information Prospect Credit Customer Information Customer Contact Information Customer Credit Customer History Product Information Product Descriptions Product Specifications Product Pricing Inventory Product Inventory Component Inventory Repair Parts Orders Customer Order Customer Invoice Shipping Shipping Notice Product Returns Return Information LEGEND Creates information artifact Primary user of information artifact Secondary user of information artifact 28

29 Mapping Information Artifacts to Application Systems In the diagram below, the Information Artifacts are mapped to the primary Application Systems. The Authoritative Source is also indicated. A typical enhancement is to indicate which Application Systems are the System of Record for which Information Artifacts. 29