A High Value Approach toBusiness/IT Collaboration         Roger Sessions      CTO, ObjectWatch, Inc.     roger@objectwatch...
Who is Roger Sessions      - The Father of IT Complexity Analytics      - Author of seven books and many highly influentia...
Audience Check                        • Executives                        • Developers                        • Architects...
Presentation Outline- We don’t know how to build big IT Systems.- Big IT needs a radical transformation.- The starting poi...
What is Radical Transformation?                   IT Driven                                  Business DrivenThreeTenets of...
The State of Large IT“An estimated 85% of government IT projects are late, over budget or both.”         - The Pew Center ...
Two Studies               75ChanceofSuccess        50               25     labor cost      <$750K                         ...
To Summarize Studies         Projects under $1M are almost always successful.         Projects over $10M are almost never ...
Relationship Between Project Size and             ComplexityComplexityofProject                        Size of Projectroge...
Standard Methodology Doesn’t Scale                 Your Standard Business/IT Architecture                                 ...
Why Don’t We Split It Up?                        Too many dependencies!roger@objectwatch.com            Roger Sessions   11
Relationship Between Project          Dependency and ComplexityComplexityofProject                        Number of Depend...
So What Does Work             Small Sub-Systems   Few Dependenciesroger@objectwatch.com            Roger Sessions     13
Two Major Problems     1. When you split up a system you INCREASE the dependencies.     2. You must split up the system BE...
A New Approach                          The Snowman Architecture                                               Business Ar...
Why Do I Call this a Snowman?                        Business Architecture                        Technical Architecture  ...
How To Build A Snowman                                    The Head consists of business functions that are                ...
Putting Snowmen Togetherroger@objectwatch.com   Roger Sessions   18
This Scales Without Limitroger@objectwatch.com   Roger Sessions   19
Getting the Head Right                         Understand business capabilities.              Understand relationship betw...
SIP High Level                                           SIP Preplanning Phase   Project                                  ...
Okay, so what does this buy me?roger@objectwatch.com   Roger Sessions      22
Complexity                         Zone of DeathComplexityofProject                         Size of Projectroger@objectwat...
Business/IT Alignment                                                Business                                             ...
ROI                              Example: $20M Project    Traditional Approach                                Snowman Appr...
Auditing/ComplianceVery difficult to determine who            Easy to determine who changed datachanged data and why.     ...
Security         Hard to Configure                       Easy to Configureroger@objectwatch.com           Roger Sessions  ...
Flexibility         Hard to Change                        Easy to Changeroger@objectwatch.com         Roger Sessions      ...
Time to Failure            Frequent Catastrophic Failures                Infrequent Local Failuresroger@objectwatch.com   ...
Time To Recovery                                                                         Primary                          ...
$    $                        Cloud Effectiveness   $$    $   $$   $                                           $Expensive ...
Impact on Local EconomyBenefits Large Foreign Consulting              Benefits Small Local ConsultingCompanies - Negative ...
A Lot of Benefits                         Lower Complexity                         Better Business/IT Alignment           ...
Making the Transformation                             Create a group to own the Snowman                             Archit...
Summary      - The Snowman Architecture delivers cheaper systems      faster that better need the needs of the business.  ...
Suggested ReadingsA Fundamental Metric for Predicting IT Success by Roger Sessions (White Paper) athttp://www.objectwatch....
Acknowledgements    The snowmen photos are all licensed under Creative Commons and    taken from Flickr. They photographer...
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Roger Sessions

  1. 1. A High Value Approach toBusiness/IT Collaboration Roger Sessions CTO, ObjectWatch, Inc. roger@objectwatch.com Twitter: @RSessions Linked-In: Roger Sessions
  2. 2. Who is Roger Sessions - The Father of IT Complexity Analytics - Author of seven books and many highly influential white papers, including The IT Complexity Crisis The Mathematics of IT Simplification Revamping Public Sector IT Procurement to Favor Success and Small Business - Visiting Professor of IT Complexity Analytics at University of the Andes. - Keynote speaker at many conferences including two Gartner Research Boards. - IASA Fellowroger@objectwatch.com Roger Sessions 2
  3. 3. Audience Check • Executives • Developers • Architects • Business Specialists • Studentsroger@objectwatch.com Roger Sessions 3
  4. 4. Presentation Outline- We don’t know how to build big IT Systems.- Big IT needs a radical transformation.- The starting point is The Snowman Architecture.- The Snowman Architecture is a radical improvement.roger@objectwatch.com Roger Sessions 4
  5. 5. What is Radical Transformation? IT Driven Business DrivenThreeTenets of Big SmallTransformation Complex Simple Long Term Value Short Term Value Process Focus Delivery Focus Private Platforms Public Cloud Platform IT Centric Architecture Business Centric Architecture Design Intensive Implementation Intensive Slow Delivery Fast Delivery roger@objectwatch.com Roger Sessions 5
  6. 6. The State of Large IT“An estimated 85% of government IT projects are late, over budget or both.” - The Pew Center on the States, “Focus on Performance”, 2010“Projects over $10M have a statistically zero chance of beingdelivered on time, on budget, and with required functionality.” - (Standish) 2009 Chaos report published by the Standish Group“OMB and federal agencies have identified approximately 413 IT projects--totaling at least $25.2 billion in expenditures for fiscal year 2008--as beingpoorly planned, poorly performing, or both.” - GAO Report 08-105IT.“The world economy is losing over $500 Billion per month to IT failure.” - The IT Complexity Crisis by Roger Sessions roger@objectwatch.com Roger Sessions 6
  7. 7. Two Studies 75ChanceofSuccess 50 25 labor cost <$750K $1.9M 10M+ Standish (2009) (USD) Size effort 750PM <= 24PM 1700PM 2400+PM (person months) ($11M) Sauer ($360K) ($25M) ($36M) (Standish) 2009 Chaos report published by the Standish Group (Sauer) The Impact of Size and Volatility on IT Project Performance by Chris Sauer, Andrew Gemino, and Blaize Horner Reich, Comms of the ACM Nov 07 roger@objectwatch.com Roger Sessions 7
  8. 8. To Summarize Studies Projects under $1M are almost always successful. Projects over $10M are almost never successful. Projects over $20M typically exceed their budgets by over 220% and cost an additional 400% in lost opportunity costs.roger@objectwatch.com Roger Sessions 8
  9. 9. Relationship Between Project Size and ComplexityComplexityofProject Size of Projectroger@objectwatch.com Roger Sessions 9
  10. 10. Standard Methodology Doesn’t Scale Your Standard Business/IT Architecture Business Architecture Technical/ Services Architecture Data Architectureroger@objectwatch.com Roger Sessions 10
  11. 11. Why Don’t We Split It Up? Too many dependencies!roger@objectwatch.com Roger Sessions 11
  12. 12. Relationship Between Project Dependency and ComplexityComplexityofProject Number of Dependenciesroger@objectwatch.com Roger Sessions 12
  13. 13. So What Does Work Small Sub-Systems Few Dependenciesroger@objectwatch.com Roger Sessions 13
  14. 14. Two Major Problems 1. When you split up a system you INCREASE the dependencies. 2. You must split up the system BEFORE YOU KNOW the dependencies.roger@objectwatch.com Roger Sessions 14
  15. 15. A New Approach The Snowman Architecture Business Architecture Technical Architecture Service Architecture Data Architecture Smaller Systems Fewer Dependenciesroger@objectwatch.com Roger Sessions 15
  16. 16. Why Do I Call this a Snowman? Business Architecture Technical Architecture Service Architecture Data Architectureroger@objectwatch.com Roger Sessions 16
  17. 17. How To Build A Snowman The Head consists of business functions that are synergistically related to each other and nothing else.Max The Torso consists of the technical systems thatSize: support the head and nothing else.FewMillion$ The Arms implement the dependencies between business capabilities and nothing else. The Bottom consists of the data needed by the Torso and nothing else. Business Led: The Head controls everything Small: Less than few million $ Simple: Autonomous with minimal connection points roger@objectwatch.com Roger Sessions 17
  18. 18. Putting Snowmen Togetherroger@objectwatch.com Roger Sessions 18
  19. 19. This Scales Without Limitroger@objectwatch.com Roger Sessions 19
  20. 20. Getting the Head Right Understand business capabilities. Understand relationship between complexity and synergy. Understand mathematics of equivalence relationships. Understand methodologies for early identification of synergies. Understand functional dependencies. Understand tools to track synergistic relationships/dependencies. Understand how the business contours project to lower layers. SIP: Simple Iterative Partitionsroger@objectwatch.com Roger Sessions 20
  21. 21. SIP High Level SIP Preplanning Phase Project Capability Sub-project Preparation DecompositionIdentification Assignment Spawning Message Messaging Dependency Capability Harness Requirements Determination Determination Completion Business Technical Data Imple- IntegrationArchitecture Architecture Architecture mentation roger@objectwatch.com Roger Sessions 21
  22. 22. Okay, so what does this buy me?roger@objectwatch.com Roger Sessions 22
  23. 23. Complexity Zone of DeathComplexityofProject Size of Projectroger@objectwatch.com Roger Sessions 23
  24. 24. Business/IT Alignment Business IT Enterprise Architecture Poor Alignment Excellent Alignmentroger@objectwatch.com Roger Sessions 24
  25. 25. ROI Example: $20M Project Traditional Approach Snowman ApproachBudgeted 20 M$ Budget 20 M$Average Overrun 228 % Snowman Costs 2 M$Expected Overrun 45.6 M$ Average Overrun 0%Lost Opp Costs 45.6 M$ Expected Overrun 0 M$Total Cost 91.2 M$ Lost Opp Costs 0 M$ Total Costs 22 M$ Savings 69.2 M$ Net: $2M investment yields $69M returnroger@objectwatch.com Roger Sessions 25
  26. 26. Auditing/ComplianceVery difficult to determine who Easy to determine who changed datachanged data and why. and why. roger@objectwatch.com Roger Sessions 26
  27. 27. Security Hard to Configure Easy to Configureroger@objectwatch.com Roger Sessions 27
  28. 28. Flexibility Hard to Change Easy to Changeroger@objectwatch.com Roger Sessions 28
  29. 29. Time to Failure Frequent Catastrophic Failures Infrequent Local Failuresroger@objectwatch.com Roger Sessions 29
  30. 30. Time To Recovery Primary Snowman Backup Snowman Slow Recovery Fast Recoveryroger@objectwatch.com Roger Sessions 30
  31. 31. $ $ Cloud Effectiveness $$ $ $$ $ $Expensive Cheap roger@objectwatch.com Roger Sessions 31
  32. 32. Impact on Local EconomyBenefits Large Foreign Consulting Benefits Small Local ConsultingCompanies - Negative Impact on Companies - Strong Positive ImpactLocal Economy. on Local Economy. roger@objectwatch.com Roger Sessions 32
  33. 33. A Lot of Benefits Lower Complexity Better Business/IT Alignment More Secure More Flexible More Reliable Better for Cloud Great ROI Stimulates Local Economy Radical IT Transformationroger@objectwatch.com Roger Sessions 33
  34. 34. Making the Transformation Create a group to own the Snowman Architecture. Choose a smallish project (~ 10M$). Get Executive Buy-in. Sell to the Business and IT. Apply the principles. Publicize the result, especially the ROI. Start a Radical Transformation of IT!roger@objectwatch.com Roger Sessions 34
  35. 35. Summary - The Snowman Architecture delivers cheaper systems faster that better need the needs of the business. - The Snowman Architecture is based on three important ideas: Business driven Small projects Simple Systems - These ideas can radically transform IT. - This is a tremendous value proposition for Enterprise Architecture with high ROI for business.roger@objectwatch.com Roger Sessions 35
  36. 36. Suggested ReadingsA Fundamental Metric for Predicting IT Success by Roger Sessions (White Paper) athttp://www.objectwatch.com/white_papers.htm#metricThe Mathematics of IT Simplification by Roger Sessions (White Paper) athttp://www.objectwatch.com/white_papers.htm#MathSimple Architectures for Complex Enterprises (Book) by Roger Sessions.The IT Complexity Crisis (White Paper) by Roger Sessions athttp://www.objectwatch.com/white_papers.htm#ITComplexityRadical IT Transformation (blog) by Roger Sessionsat http://simplearchitectures.blogspot.com/2012/08/radical-it-transformation_14.htmlThe Equation Every Enterprise Architect Should Memorize (blog) by Roger Sessions athttp://simplearchitectures.blogspot.com/2012/03/equation-every-enterprise-architect.htmlThe Relationship Between IT Project Size and IT Failure Rate (webshort) by Roger Sessions athttp://simplearchitectures.blogspot.com/2012/01/web-short-relationship-between-it.htmlSIP: A Project Optimization Methodology (webshort) by Roger Sessions athttp://simplearchitectures.blogspot.com/2012/01/web-short-sip-methodology-for-project.html roger@objectwatch.com Roger Sessions 36
  37. 37. Acknowledgements The snowmen photos are all licensed under Creative Commons and taken from Flickr. They photographers are, in order of appearance: - chris.corwin - The Year of Mud - Jason Alley - jcarwash31roger@objectwatch.com Roger Sessions 37
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