Next Generation Enterprise Architecture

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Presentation at UNICOM EA Forum, September 29th 2011, London.

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  • http://blogs.forrester.com/jeff_scott/10-05-16-future_eahttp://www.zdnet.com/blog/hinchcliffe/pragmatic-new-models-for-enterprise-architecture-take-shape/674
  • There are actually three contrasting agendas, but we’ll save the third agenda until later in the presentation. It is not clear to what extent the third agenda still counts as EA.1. simplify around single (simple) business model: single definition of 'market' qua single-sided market.2. differentiate business models and integrate to span their differences: multiple definitions of 'market' qua single-sided markets.3. differentiate business models AND differentiate the modes of integration: multiple 'markets' within multiple contexts-of-use qua multi-sided markets.(PJB)
  • http://csis.pace.edu/~marchese/cs615sp/L3New/L3new.htmlhttp://en.wikipedia.org/wiki/Zachman_Framework
  • http://demandingchange.blogspot.com/2009/12/getting-big-picture.html
  • Function versus data CRUD matrixhttp://msdn.microsoft.com/en-us/library/aa480036.aspx
  • http://msdn.microsoft.com/en-us/library/aa480036.aspx
  • Operating Model Quadrants (Adapted by Clive Finkelstein from Figure 2.3 of “Enterprise Architecture as Strategy”)http://esvc000904.wic047u.server-web.com/ten/ten38.htmhttp://rvsoapbox.blogspot.com/2010/05/differentiation-and-integration.html
  • http://rvsoapbox.blogspot.com/2010/10/selling-business-architecture.html
  • There are actually three contrasting agendas, but we’ll save the third agenda until later in the presentation. It is not clear to what extent the third agenda still counts as EA.1. simplify around single (simple) business model: single definition of 'market' qua single-sided market.2. differentiate business models and integrate to span their differences: multiple definitions of 'market' qua single-sided markets.3. differentiate business models AND differentiate the modes of integration: multiple 'markets' within multiple contexts-of-use qua multi-sided markets.(PJB)
  • http://rvsoapbox.blogspot.com/2009/02/togaf-9-holistic-enterprise-change.html
  • 3. differentiate business models AND differentiate the modes of integration: multiple 'markets' within multiple contexts-of-use qua multi-sided markets
  • http://www.asymmetricdesign.com/archives/72
  • Next Generation Enterprise Architecture

    1. 1. UNICOM EA FORUM<br />Richard Veryard September 2011<br />Next Generation Enterprise Architecture<br />
    2. 2. Future of EA?<br />EA disappears as a unique function?<br />EA moves “in total” to the business?<br />EA remains focused on IT architecture?<br />EA remains in IT but becomes more business focused?<br />EA splits into multiple groups?<br />Jeff Scott, Forrester, May 2010<br />Dion Hinchcliffe, ZDNet, August 2009<br />
    3. 3. Two Contrasting Agendas for EA<br />Business is simple<br />Systems are complicated and inflexible<br />Software applications<br />Human activity systems<br />Therefore simplify and unify the systems to align with the business<br />Business is complex<br />Systems are complicated and inflexible<br />Therefore differentiate and integrate systems to help manage complexity.<br />Simplify and Unify<br />Differentiate and Integrate<br />
    4. 4. Traditional EA doctrines<br />Information Engineering<br />Zachman Framework<br />
    5. 5. Simplification and Unification<br />Duplication<br />Inconsistency<br />Poor Interoperability<br />Fragmentation<br />Waste<br />Risk<br />Economics of scale<br />Economics of scope<br />Interoperability<br />FROM<br />TO<br />
    6. 6. Achieving Simplification and Unification<br />Quick and cheap solutions to local problems<br />Tight project goals<br />Stakeholders protecting established assets and arrangements<br />Joined-up thinking<br />The “Big Picture”<br />Clustering<br />Increase Cohesion<br />Decrease Coupling<br />Typical Challenges<br />EA Weaponry<br />
    7. 7. From Small Picture …<br />
    8. 8. … to Bigger Picture<br />
    9. 9. Simple Interaction Matrix<br />Source MSDN<br />
    10. 10. Clustered Matrix<br />Source MSDN<br />
    11. 11. Simple Interaction Protocol (SIP) <br />11<br />SIP brings a rational process to project optimization<br />Reproducible<br />Verifiable<br />Optimal<br />SIP has a mathematical foundation<br />Set theory<br />Complexity analysis<br />Equivalence relations<br />SIP drives simplicity<br />The architecture with smallest collections of functionality that have the fewest dependencies.<br />Simplest possible architecture that solves the problem.<br />Roger Sessions<br />ObjectWatch<br />
    12. 12. 12<br />Comparing SIP to Traditional EA<br />SIP<br />Traditional<br />- Higher success rates.<br />- Reduced cost.<br />- Increased agility.<br />- Cloud optimized.<br />Roger Sessions<br />ObjectWatch<br />
    13. 13. Enterprise Architecture as Strategy<br />1<br />2<br />?<br />Low differentiation<br />High differentiation<br />
    14. 14. Six Views of Business<br />
    15. 15. Business Trends<br />Converging Technology and systems<br />Converging market power – globalization<br />Increasing collaboration<br />Diversity – market fragmentation – “Long Tail”<br />Unbundling<br />Asymmetric Demand<br />Convergence<br />Divergence<br />Increasing Speed<br />Increasing Scope<br />Increasing Complexity<br />Increasing Reach<br />
    16. 16. Challenges<br />Business Architecture<br />Technology Architecture<br />IT Agility<br />Business Agility<br />Technical System Interoperability<br />Sociotechnical Interoperability<br />Through-LifeValue for Money<br />Value against Demand<br />
    17. 17. Structural complexity of business<br />Asymmetrical demand <br />Business as a platform<br />Coupling<br />enterprise as loosely coupled network of sociotechnical components and services<br />Edge organization<br />Enterprise tempo<br />activities with different characteristic tempi<br />Ethical dilemmas<br />conflicts of interest, moral hazard<br />Multi-sided markets<br />different stakeholder classes with complementary demands<br />Organizational intelligence<br />Viability<br />command and control<br />VSM<br />
    18. 18. Dimensions of business complexity<br />Delivery / Interface <br />eCommerce, Web, Call Centre, Kiosk, SMS, <br />Product Class/Consumer<br />Enterprise, SME, Retail Consumer, Citizen, Intra-government<br />2-sided markets<br />Commercial Channel<br />Wholesale, Retail, Corporate, Partner, Direct<br />Brand integration, mergers & acquisition<br />Pricing Type<br />Credit, eCommerce, Cash, Direct Debit<br />Subscription, Fixed-Price, Pay-as-you-Go, <br />Product Delivery Technology<br />Managed Service, DVD, SaaS<br />CD, DVD, Video on Demand <br />
    19. 19. Value of business architecture <br />Structural complexities in any business can critically affect business performance.<br />To manage these structural complexities, we need to think  architecturallyabout the business …<br />… which will help us to overcome the structural inhibitors to business performance.<br />An explicit business architecture should help coordinate specific forms of congruence and requisite variety across all human activity systems<br />management information systems (IT) <br />management reward systems (HR)<br />
    20. 20. Two Contrasting Agendas for EA<br />Simplify and Unify<br />Business is simple<br />Systems are complicated and inflexible<br />Software applications<br />Human activity systems<br />Therefore simplify and unify the systems to align with the business<br />Business is complex<br />Systems are complicated and inflexible<br />Therefore differentiate and integrate systems to help manage complexity.<br />Differentiate and Integrate<br />
    21. 21. Are your enterprise models complete?<br />
    22. 22. Information<br />Gathering<br />Decision<br />& Policy<br />WIGO<br />(what is going on)<br />Learning& Development<br />Knowledge& Memory<br />Organizational intelligence<br />22<br />Sense-Making<br />Communication & Collaboration<br />
    23. 23. From Data Objects to Social Objects<br />Databases<br />Transaction Processing<br />Content Management<br />Social Networking<br />Systems of Record<br />Systems of Engagement<br />
    24. 24. TOGAF 9 – Holistic Enterprise Change<br />When you make changes to the business as well as changes to the systems, you may get more than you bargained for.<br />When you make changes to the technical systems without making changes to the human systems, you may get less than you bargained for.<br />
    25. 25. Planned versus Emergent<br />Planned order (“taxis”)<br />Directed, design-time<br />Spontaneous order based on self-organization (“cosmos”)<br />Emergent, run-time<br />Planned Architecture<br />Emergent Architecture<br />
    26. 26. As business becomes more complex …<br />Complicated or fragmented systems<br />Exposes management weakness<br />Customers’ economics of alignment outweigh suppliers’ economics of scale and scope<br />Competitive advantage<br />Requisite variety<br />Costs<br />Benefits<br />
    27. 27. Enterprise or Ecosystem  a third agenda<br />Looking outside the traditional enterprise<br />Questions of corporate identity<br />Indirect demand (end customer)<br />From Affiliation to Alliance<br />Value for whom?<br />Scope<br />Third Agenda<br />
    28. 28. Dynamics of strategy (Kurtz & Snowden)<br />AGENDA 3<br />Differentiated Integration<br />Strong<br />distributed<br />AGENDA 2<br />Differentiate and Integrate<br />Weak<br />distributed<br />AGENDA 1<br />Simplify and Unify<br />Strong central<br />Weak central<br />Source: “The new dynamics of strategy: Sense-making in a complex and complicated World”. Kurtz and Snowden. IBM Systems Journal Vol 42, No 3 2003<br />
    29. 29. As business becomes more complex …<br />Complicated or fragmented systems<br />Exposes management weakness<br />Customers’ economics of alignment outweigh suppliers’ economics of scale and scope<br />Competitive advantage<br />Requisite variety<br />Costs<br />Benefits<br />
    30. 30. Some alternative lenses for viewing structural complexity<br />Viable Systems Method (Stafford Beer)<br />I-Space (Max Boisot)<br />Pace Layering (Frank Duffy, Stewart Brand)<br />The Nature of Order (Alexander, Salingaros)<br />Asymmetric Design (Philip Boxer, Bernie Cohen)<br />Organizational Intelligence<br />Asymmetric Leadership <br />Structural Complexity<br />Management Capability<br />
    31. 31. Healthcare<br />See presentation by Philip Boxer<br />
    32. 32. Collaborative Composition in the Insurance Value Chain<br />Orchestration<br />Composition<br />Context <br />of Use<br />Solution Providers<br />Platform Providers<br />1<br />2<br />3<br />4<br />5<br />6<br />Server<br />Platform<br />Web <br />Services<br />and <br />Messaging<br />BusinessServices<br />Back Office<br />Front Office<br />Life of Customer<br />Service Pathways<br />Referral Pathway<br />broker<br />end user<br />LOB Features<br />End User Experience<br />supply<br />side<br />Collaborative<br />Composition<br />Asymmetric<br />Demand<br />Source: Veryard & Boxer 2005<br />
    33. 33. Conclusions<br />Broad range of complex practical problems<br />Emerging methods for reasoning about differentiation and integration.<br />New agenda for enterprise architecture<br />Not suppressing complexity but managing complexity<br />
    34. 34. Future Events<br />Business Architecture Bootcamp<br />November 22-23<br />Organizational Intelligence Workshop<br />November 24<br />RVsoapbox.BlogSpot.com<br />Future Events<br />Other Material and Links<br />

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