Next Generation Enterprise Architecture

UNICOM EA FORUM
Richard Veryard September 2011
Next Generation Enterprise Architecture

Future of EA?
EA disappears as a unique function?
EA moves “in total” to the business?
EA remains focused on IT architecture?
EA remains in IT but becomes more business focused?
EA splits into multiple groups?
Jeff Scott, Forrester, May 2010
Dion Hinchcliffe, ZDNet, August 2009

Two Contrasting Agendas for EA
Business is simple
Systems are complicated and inflexible
Software applications
Human activity systems
Therefore simplify and unify the systems to align with the business
Business is complex
Therefore differentiate and integrate systems to help manage complexity.
Simplify and Unify
Differentiate and Integrate

Traditional EA doctrines
Information Engineering
Zachman Framework

Simplification and Unification
Duplication
Inconsistency
Poor Interoperability
Fragmentation
Waste
Risk
Economics of scale
Economics of scope
Interoperability
FROM
TO

Achieving Simplification and Unification
Quick and cheap solutions to local problems
Tight project goals
Stakeholders protecting established assets and arrangements
Joined-up thinking
The “Big Picture”
Clustering
Increase Cohesion
Decrease Coupling
Typical Challenges
EA Weaponry

From Small Picture …

… to Bigger Picture

Simple Interaction Matrix
Source MSDN

Clustered Matrix
Source MSDN

Simple Interaction Protocol (SIP)
11
SIP brings a rational process to project optimization
Reproducible
Verifiable
Optimal
SIP has a mathematical foundation
Set theory
Complexity analysis
Equivalence relations
SIP drives simplicity
The architecture with smallest collections of functionality that have the fewest dependencies.
Simplest possible architecture that solves the problem.
Roger Sessions
ObjectWatch

12
Comparing SIP to Traditional EA
SIP
Traditional
- Higher success rates.
- Reduced cost.
- Increased agility.
- Cloud optimized.
Roger Sessions
ObjectWatch

Enterprise Architecture as Strategy
1
2
?
Low differentiation
High differentiation

Six Views of Business

Business Trends
Converging Technology and systems
Converging market power – globalization
Increasing collaboration
Diversity – market fragmentation – “Long Tail”
Unbundling
Asymmetric Demand
Convergence
Divergence
Increasing Speed
Increasing Scope
Increasing Complexity
Increasing Reach

Challenges
Business Architecture
Technology Architecture
IT Agility
Business Agility
Technical System Interoperability
Sociotechnical Interoperability
Through-LifeValue for Money
Value against Demand

Structural complexity of business
Asymmetrical demand
Business as a platform
Coupling
enterprise as loosely coupled network of sociotechnical components and services
Edge organization
Enterprise tempo
activities with different characteristic tempi
Ethical dilemmas
conflicts of interest, moral hazard
Multi-sided markets
different stakeholder classes with complementary demands
Organizational intelligence
Viability
command and control
VSM

Dimensions of business complexity
Delivery / Interface
eCommerce, Web, Call Centre, Kiosk, SMS,
Product Class/Consumer
Enterprise, SME, Retail Consumer, Citizen, Intra-government
2-sided markets
Commercial Channel
Wholesale, Retail, Corporate, Partner, Direct
Brand integration, mergers & acquisition
Pricing Type
Credit, eCommerce, Cash, Direct Debit
Subscription, Fixed-Price, Pay-as-you-Go,
Product Delivery Technology
Managed Service, DVD, SaaS
CD, DVD, Video on Demand

Value of business architecture
Structural complexities in any business can critically affect business performance.
To manage these structural complexities, we need to think architecturallyabout the business …
… which will help us to overcome the structural inhibitors to business performance.
An explicit business architecture should help coordinate specific forms of congruence and requisite variety across all human activity systems
management information systems (IT)
management reward systems (HR)

Two Contrasting Agendas for EA
Simplify and Unify
Business is simple
Software applications
Human activity systems
Therefore simplify and unify the systems to align with the business
Business is complex
Therefore differentiate and integrate systems to help manage complexity.

Are your enterprise models complete?

Information
Gathering
Decision
& Policy
WIGO
(what is going on)
Learning& Development
Knowledge& Memory
Organizational intelligence
22
Sense-Making
Communication & Collaboration

From Data Objects to Social Objects
Databases
Transaction Processing
Content Management
Social Networking
Systems of Record
Systems of Engagement

TOGAF 9 – Holistic Enterprise Change
When you make changes to the business as well as changes to the systems, you may get more than you bargained for.
When you make changes to the technical systems without making changes to the human systems, you may get less than you bargained for.

Planned versus Emergent
Planned order (“taxis”)
Directed, design-time
Spontaneous order based on self-organization (“cosmos”)
Emergent, run-time
Planned Architecture
Emergent Architecture

As business becomes more complex …
Complicated or fragmented systems
Exposes management weakness
Customers’ economics of alignment outweigh suppliers’ economics of scale and scope
Competitive advantage
Requisite variety
Costs
Benefits

Enterprise or Ecosystem  a third agenda
Looking outside the traditional enterprise
Questions of corporate identity
Indirect demand (end customer)
From Affiliation to Alliance
Value for whom?
Scope
Third Agenda

Dynamics of strategy (Kurtz & Snowden)
AGENDA 3
Differentiated Integration
Strong
distributed
AGENDA 2
Weak
distributed
AGENDA 1
Simplify and Unify
Strong central
Weak central
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

As business becomes more complex …
Complicated or fragmented systems
Exposes management weakness
Customers’ economics of alignment outweigh suppliers’ economics of scale and scope
Competitive advantage
Requisite variety
Costs
Benefits

Some alternative lenses for viewing structural complexity
Viable Systems Method (Stafford Beer)
I-Space (Max Boisot)
Pace Layering (Frank Duffy, Stewart Brand)
The Nature of Order (Alexander, Salingaros)
Asymmetric Design (Philip Boxer, Bernie Cohen)
Organizational Intelligence
Asymmetric Leadership
Structural Complexity
Management Capability

Healthcare
See presentation by Philip Boxer

Collaborative Composition in the Insurance Value Chain
Orchestration
Composition
Context
of Use
Solution Providers
Platform Providers
1
2
3
4
5
6
Server
Platform
Web
Services
and
Messaging
BusinessServices
Back Office
Front Office
Life of Customer
Service Pathways
Referral Pathway
broker
end user
LOB Features
End User Experience
supply
side
Collaborative
Composition
Asymmetric
Demand
Source: Veryard & Boxer 2005

Conclusions
Broad range of complex practical problems
Emerging methods for reasoning about differentiation and integration.
New agenda for enterprise architecture
Not suppressing complexity but managing complexity

Future Events
Business Architecture Bootcamp
November 22-23
Organizational Intelligence Workshop
November 24
RVsoapbox.BlogSpot.com
Future Events
Other Material and Links

http://enectoux.wordpress.com	901
http://www.asymmetricdesign.com	527
http://rvsoapbox.blogspot.com	168
http://paper.li	166
http://paper.li	166
http://eablogs.gotze.eu	25
http://translate.googleusercontent.com	7
http://tweets.kathan.at	4
http://feeds.feedburner.com	4
http://a0.twimg.com	3
http://rvsoapbox.blogspot.co.uk	2
http://www.SLIDeshare.net	2
http://rvsoapbox.blogspot.com.au	2
https://twitter.com	1
http://rvsoapbox.blogspot.de	1
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http://twitter.com	1
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Next Generation Enterprise Architecture

by Richard Veryard on Sep 29, 2011

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