Toward innovative model based enterprise IT outsourcing (NGEBIS CAISE 2013)

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Enterprises use IT systems to derive mechanical
advantage through automation of business process steps. Prevalent labor arbitrage outsourcing model has delivered significant
savings in run-the-business IT costs. For a variety of reasons,
change-the-business IT costs continue to be significantly high.
With continually increasing business dynamics and increasing
dependence on IT systems, the problem of managing these costs
with certainty is getting ever more difficult. We propose a model-
driven approach for addressing this problem. The paper discusses
current practice to motivate the problem, describes a model-
driven architecture to address the problem, and discusses various
research, engineering and business challenges for its realization.

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Toward innovative model based enterprise IT outsourcing (NGEBIS CAISE 2013)

  1. 1. Toward Innovative Model based Enterprise IT Outsourcing NGEBIS Workshop at CAISE 2013 Vinay Kulkarni and Sagar Sunkle
  2. 2. Enterprise Business Overview – Problem
  3. 3. Enterprise Business Business Silos for Ease of Management and Control Overview – Problem
  4. 4. Enterprise IT Need 1 IT Need 2 IT Need 3 Transactional IT needs : day-to-day operational requirements … Overview – Problem – State of IT systems Transformational IT needs : responding to change; multiple change drivers active- dynamic supply chains, mergers and acquisitions, globalization and regulatory compliances, cloud and mobile technology Both kinds originate in strategic, tactical, and operational goals of the enterprise
  5. 5. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 1 IT System 2 IT System 3 … … Transactional IT needs : day-to-day operational requirements Overview – Problem – State of IT systems
  6. 6. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 1 IT System 2 IT System 3 … Only local context known (if at all); enterprise-wide context unknown … Transactional IT needs : day-to-day operational requirements Overview – Problem – State of IT systems
  7. 7. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 1 IT System 2 IT System 3 … … Implement or improve in Specific Contexts of Business Silos Transactional IT needs : day-to-day operational requirements Overview – Problem – State of IT systems
  8. 8. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 1 IT System 2 IT System 3 … Locally Operational/Optimal … Transactional IT needs : day-to-day operational requirements Overview – Problem – State of IT systems
  9. 9. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 1 IT System 2 IT System 3 … Globally Optimal ? … Transactional IT needs : day-to-day operational requirements Overview – Problem – State of IT systems
  10. 10. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 1 IT System 2 IT System 3 … … Transactional IT needs : day-to-day operational requirements Overview – Problem – State of IT systems
  11. 11. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 2 IT System 3 … Implementation of Functionalities servicing globally felt need may overlap due to lack of knowledge about enterprise-wide context …IT System 1 Transactional IT needs : day-to-day operational requirements Overview – Problem – State of IT systems
  12. 12. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 1 IT System 2 IT System 3 … Specific contexts may also result in Non-interoperable technologies … Transactional IT needs : day-to-day operational requirements Overview – Problem – State of IT systems
  13. 13. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 1 IT System 2 IT System 3 … Globally Sub-optimal design of operational processes Overlapping Functionalities Non-interoperable Technologies … Transactional IT needs : day-to-day operational requirements Overview – Problem – State of IT systems
  14. 14. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 1 IT System 2 IT System 3 … … Headcount-based model/harmonization of software/ hardware etc. is insufficient Enterprises are expecting more- outcome- based pricing- enterprises focus on core competencies, rest all as an end-to-end solution by service provider Overview – Problem- IT Outsourcing
  15. 15. Enterprise 1 IT Need 1 IT System 1 Hardware Infra IT Need x IT System x Technology Infra Hardware Infra Technology Infra IT Plant Multiple IT Systems of an Enterprise Overview – Toward Solution
  16. 16. Enterprise 1 IT Need 1 IT System 1 Hardware Infra IT Plant 1 Product Line of IT Plants Enterprise 2 … Technology Infra IT Need 1 IT System 1 Hardware Infra IT Plant 1 … … Multiple IT Systems of multiple enterprises from same domain Technology Infra Overview – Toward Solution
  17. 17. Enterprise IT Need 1 IT Need 2 IT Need 3 IT System 1 IT System 2 IT System 3 … Transformational needs addressed based on experts’ knowledge … Overview – Problem – State of IT systems
  18. 18. Enterprise Business IT System Infrastructure MUST represent enterprise in its entirety Key Dimensions of Enterprise Transformational decisions do not view enterprise holistically Overview – Toward Solution
  19. 19. Enterprise Analysis World Operational World Overview – Toward Solution
  20. 20. Enterprise Analysis World Operational World Globally Sub-optimal design of operational processes Overlapping Functionalities Non-interoperable Technologies Dependence on expert knowledge Address core issues tacklereduce Overview – Toward Solution
  21. 21. Enterprise Analysis World [Model-driven] Operational World [Model-driven] Goals, operational processes, organizational structure etc. models closer to the business domain; questions regarding efficacy of the as-is state; Path to desired to-be state w.r.t given property(ies) Overview – Toward Solution
  22. 22. Enterprise Analysis World [Model-driven] Operational World [Model-driven] Reduce dependence on expert knowledge by Enabling data and model-driven decision making Overview – Toward Solution
  23. 23. Enterprise Analysis World [Model-driven] Operational World [Model-driven] models of the complete IT plant that automate a set of operational processes through a set of IT systems ensuring correct operation of the enterprise both in functional and non- functional sense Overview – Toward Solution
  24. 24. Enterprise Analysis World [Model-driven] Operational World [Model-driven] IT Plant product line for multiple enterprises in same domain Overview – Toward Solution
  25. 25. Enterprise Analysis World [Model-driven] Operational World [Model-driven] IT Plant product line for multiple enterprises in same domain Overview – Toward Solution
  26. 26. Enterprise Analysis World [Model-driven] Operational World [Model-driven] Bidirectional traceability; use insights from analysis world in operational world; Keep analysis models updated with operational changes Overview – Toward Solution
  27. 27. Enterprise Analysis World [Model-driven] Operational World [Model-driven] Research work packages Enterprise Specification Enterprise Simulation IT Plant Specification IT Plant Contract Specification IT Plant Testing IT Plant Deployment Overview – Toward Solution
  28. 28. Enterprise Analysis World [Model-driven] Operational World [Model-driven] Research work packages Enterprise Specification Enterprise Simulation IT Plant Specification IT Plant Contract Specification IT Plant Testing IT Plant Deployment Overview – Toward Solution
  29. 29. Enterprise Analysis World [Model-driven] Operational World [Model-driven] Early Results Ontological representation for machine-processable and analyzable enterprise models Intentional and system dynamics models for capturing “Why” in enterprise Enterprise Specification Enterprise Simulation Overview – Toward Solution
  30. 30. Enterprise Analysis World [Model-driven] Operational World [Model-driven] Overview – Conclusion Win-Win Situation Enterprises Service Provider
  31. 31. Thanks!! Questions?
  32. 32. Questions Products and Processes of Public Sector Bank
  33. 33. Specification & Analysis of Enterprise Models Enterprise Simulation Domain Models Adaptive Systems Business Rule Extraction IT Plant Architecture IT Systems Architecture Domain Model Verification IT Systems Models for Change Agility IT Systems Architecture Reconstruction Enterprise Models Domain Models IT Systems/Plant Models AnalysisWorld [Model-driven] OperationalWorld [Model-driven] Research Challenges
  34. 34. Enterprise Analysis World [Model-driven] Specification and Analysis of Enterprise Models Goal Purpose Approach Machine-processable enterprise models Enterprise-wide analysis of satisfaction of properties Enterprises are complex interconnected systems of systems Use cases- directives, objectives, policies and regulatory compliances and so on, scenarios of interaction between enterprises- Outsourcing, M&A, etc. Early results ontology based enterprise models, what-if/if-what analyses Techniques for measuring properties, quantification Research Challenges
  35. 35. Enterprise Analysis World [Model-driven] Enterprise Simulation Optimize business process, supply chains Reduce risk , cost, improve planning Map Simulation Techniques w.r.t their applicability System Dynamics  Time Petri Nets  workflows State Machines  events Simulate models in concert Create mapping between simulation models and EA models Create DSL to simulate multiple models in concert Capture behavior of Enterprise Measure and Optimize the effectiveness of Enterprise goals by playing out what-if scenarios Goal Purpose Approach Research Challenges
  36. 36. Enterprise Operational World [Model-driven] Identify and define formal modeling mechanism for IT plant domain. Identify model requirements for IT Plant Identify gaps between the model requirements and available Industry standard models Identify and define required modeling elements based on the assessment. Pilot it with a suitable domain Semantics Traceability Machine processing form Multi organization context Domain [Functional] Models of IT Plant Goal Purpose Approach Research Challenges
  37. 37. Enterprise Operational World [Model-driven] Define formal mechanism to maintain consistency of IT plant modeling during refinement Verify the IT plant model for specific properties Examine the model refinement requirement in IT plant specification Examine the existing model refine techniques. Adopt/enhance the existing techniques to make them suitable for IT Plant specification. For model verification, define formal mechanism to express desirable properties of interest Adopt/extend existing verification techniques to verify IT plant specs against desired properties Consistent model refinement Verification of desirable properties of IT Plant specifications Early detection of model bugs Domain Model Verification Goal Purpose Approach Research Challenges
  38. 38. Enterprise Operational World [Model-driven] Understand and model the influence of business products and processes on IT plant architecture in SP environment Map a selected IT plant landscape in the lines of its products and processes. Based on study arrive at the impact of product and process changes on the IT plant architecture. Improved IT Plant planning Adaptive technology architecture Dynamic provisioning of resources IT Plant System Architecture Goal Purpose Approach USP Commoditized Customer Facing X √ Back office √ √ Research Challenges
  39. 39. Enterprise Operational World [Model-driven] Goal Purpose Approach Investigate mechanisms, techniques for (de)composition for variability capturing Varying needs of enterprises in same domain Customizations per enterprise may increase app development and management cost IT Plant Architecture Arrive at IT plant architecture catering to varying needs Composition and decomposition mechanisms for IT plant architecture Investigate effect of such mechanisms on non functional properties Research Challenges
  40. 40. Enterprise Operational World [Model-driven] Use program comprehension techniques, refactoring, slicing, and clustering to extract layers and partitions from the source code. Using machine learning techniques like clustering embodied in Lattix tool or other new techniques. IT plant Modernization Most of the architecture/design documents either outdated or un- available Identifying predefined architectural elements and relations among them. Re-construct architecture from the source code using inputs from system/application experts. Architecture Reconstruction Goal Purpose Approach Research Challenges
  41. 41. Enterprise Operational World [Model-driven] IT plant Modernization Extract inherent operational and business Rules Identify the constraints and calculation from the legacy code Formulate standard and application level strategies Apply data dictionary (meanings of database variables) Use comments to infer meanings to rules Apply machine learning algorithms Rules Representation Variability Visualization Formal representation for verification Extending SBVR kind of representation Enterprises are rule driven Most these are legacy in nature. To capture ever changing regulatory policies and regulations Business Rule Extraction Goal Purpose Approach Research Challenges
  42. 42. Enterprise Operational World [Model-driven] Goal Purpose Approach Model all aspects of IT systems with inter-dependencies Change Impact Analysis Multi-layered model Realization thru Model transformation Definition of change in terms of model Change agility in IT systems Correctness guarantees Models IT Systems Research Challenges
  43. 43. Enterprise Adaptive Enterprise IT Systems- To meet SLAs- To reduce people intervention Modeling Adaptation for IT Systems Construct reference architecture for IT Systems using - MAPE-k architectural pattern Feedback Loops Examine Execution Traces Investigate data logs and execution traces to indentify what properties to monitor and adapt Language Support Language to support adaptive software development Monitor and adapt the functioning of IT systems with respect to their non- functional requirements Arrive at mechanism to implement adaptation loop (MAPE) Operational World [Model-driven] Goal Purpose Approach Research Challenges
  44. 44. Enterprise How to build enterprise models ? Using information flows? How to utilize/affect transformation of IT systems? Which abstractions? How to verify that they achieve intended effect? How to model business functions? How to capture combination of manual AND automated steps of business processes? A language for modeling an enterprise? Domain-specific language drawing on ideas from event based paradigm, multi agent systems Research Challenges
  45. 45. Specification & Analysis of Enterprise Models Enterprise Simulation Domain Models Adaptive Systems Business Rule Extraction IT Plant Architecture IT Systems Architecture Domain Model Verification IT Systems Models for Change Agility IT Systems Architecture Reconstruction Enterprise Models Domain Models IT Systems/Plant Models AnalysisWorld [Model-driven] OperationalWorld [Model-driven] Summary Globally Sub-optimal design of operational processes Overlapping Functionalities Non-interoperable Technologies Dependence on expert knowledge
  46. 46. IT Plant Architecture • What – Arrive at an architecture for IT plant catering to varying needs of customers in same domain • Why – Large enterprises needs plethora of applications to meet their needs. – Needs of no two customers in same domain are exactly identical – Various situations Service Providers need to service customer are • Deliver as-is solutions • Manage known , unknown configurations • Manage known , unknown extensions • Deliver parts and integrate existing systems – Problems • Not designed to manage these scenarios • follow clone-n-own approach • Increased ADM cost • Customer not sure of certainty of meeting their needs
  47. 47. IT Plant Architecture • How – Modularity of IT plant • Investigate mechanism, techniques for modular design for – System of system scenario – Multi-layer architecture – Capturing Commonality and Variability – Design time and Runtime variability – Integration • Investigate automation for COTS integration • Evaluation of COTS for quality attributes – Performance – Reliability – Configurabity – Evaluation of NFR
  48. 48. Product Line [Family] of IT Plants Multiple IT Systems of multiple enterprises from same domain

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