Strategic Architecture

Information Technology deals with complex systems Year Doubling of Body of Business Cycles Information 3 Knowledge Technology Cycles 1800s 500-1000 years N/A N/A 1970s 100 years 7 years 2-3 years 1980s 25 years 5 years 2-3 years 1990s 10 years 12-18 months 2-3 years 2001 6 months 6 months 2-3 years 200x 3 months Near Real Time ? © 2003 Source: Meta Group, 2001

Example of complexity Application 1 Application 2 4 Leased Leased Application n line line Italy Corp 1 GPRS BSS Corp 2 Leased / GSM Leased line line PSTN / OSS France ADSL ISP Internet Service Leased BSS Platform GPRS line ISDN / GSM OSS WAN PSTN Internet / LAN / ADSL Service ISP Leased Platform Content line ISDN Partner Leased line WAN Leased Internet / LAN line Content Application 1 Partner Application 2 Hungary Application n Corp 5 BSS GPRS Application 1 Corp 6 / GSM Application 2 OSS PSTN / Application n ADSL ISP Service Corp 3 Corp 4 Platform ISDN © 2003 WAN Content / LAN Partner

Architecture answers questions for key stakeholders 8 General Client Contractor wants to know wants to know What’s the result? How do we get it done? How quickly can I get it? How do I make sure it’s done correctly? How much does it cost / save? Architecture What’s possible? What are the risks? What’s possible? Subcontractor wants to know What do I build? What do I build it with? © 2003

Architecture answers questions for key stakeholders, continued 9 Business IT Managers Managers want to know want to know What’s the result? How do we get it done? How quickly can I get it? How do I make sure it’s done correctly? How much does it cost / save? Architecture What’s possible? What are the risks? What’s possible? Technical Staff wants to know What do I build? © 2003 What do I build it with?

Problems occur when architecture is executed in isolation Context Opportunity 10 PepsiCo is a $25.1 billion Establish a common hardware beverage and snacks producer platform for all divisions Key divisions: Frito-Lay, Pepsi- Reduce the number of software Cola, Gatorade/Tropicana, Quaker solutions Foods Estimated that bulk buying could Technology spend estimated at $1 save 20% to 30% of current $200 billion per year million spend 5 different mobile solutions in use Additional savings from reduced across 5 different divisions installation, service and maintenance Architecture is one of the catalysts necessary to establish a common platform yet still enable innovation within each of the business units © 2003 Source: Baseline May 2003

Where do architects come from? 11 Theoretical / Industry Knowledge (“art of the possible”) Delivery (the Craft – i.e. coding) Management, Estimation, Program Design (Technology Planning) Technical Gro Software Architect Gro Enterprise Specialist w Infrastructure Architect w Architect © 2003

Blueprints and Guiding Principles are the foundation of your architecture Guiding Blueprints 15 Principles Business Process Application Model Model Model Buy vs Build Insource vs Outsource Interface Information Infrastructure Model Model Model (Examples) © 2003

Linking business to technology provides consolidation capabilities Context and Approach Benefits Achieved 16 Global property and casualty $5.6M savings via infrastructure insurer consolidation Lacking a linked business and $2.6M savings from centralized systems architecture identification and authorization (single sign-on) Unable to tell how overlapping applications related to one another $3.3M savings from standardized operations management console Unable to tell how any application and “sensors” could replace another $1.5M in reductions and avoidance Decided to standardize application from common eCommerce and infrastructure architecture architecture This effort required the creation of an enterprise architecture team and the recruitment of a chief architect © 2003 Source: DCI experience database

Architecture work leverages the larger IT community CIO 17 Chief Architect The EAG organizes, Business Architect Application Architect manages, and drives the Security Architect Information Architect Architecture Arch Program Mgr Infrastructure Architect Community Architecture Community Architecture Processes • Blueprinting • Application • Testers • Vendor selection & management Architects • Project • Project checkpoint and signoff • Operators Managers • Standards development • Developers • Technology research and adoption • Technology investment guidance © 2003

Use of an architecture repository enables sharing and measurement 18 IT Community Guiding Principles Repository Example Metrics % of baseline standards created & disseminated % of projects with architecture signoff Blueprints % of applications fully compliant with standards % of technology in each stage of the technology lifecycle © 2003

Architecture provides key criteria that guides annual IT planning and budgeting Current State Architecture Future State Architecture Roadmap 19 (identifies and categorizes (provides strategic criteria (Result is a roadmap of IT current IT assets) for screening and assessing projects aligned with portfolio) business drivers) Implicit IT Distinguish Define Measure, Diagnose, Make portfolio categories criteria assess recommend decisions 1 4 1 3 2 3 Invest 2 2 1 2 5 1 A 2 3 2 0 0 1 Adjust 4 0 5 0 2 4 1 1 3 0 2 3 0 2 2 2 0 1 Sunset B 5 3 0 1 2 2 A huge Different Screens Fact-based Business Faster / better collection assets that insight into language investment of projects judged and match architecture decisions and assets managed strategic fit © 2003 differently intent

Recent client example shows benefits of IT portfolio screening Context and approach Benefits achieved 20 North American division of a large 352 - Number of in-flight projects at European car manufacturer start of portfolio screening effort Little to no integration across platforms and application 30 - Number of remaining high-impact, cost effective, focused initiatives Many redundancies, conflicting objectives, unclear deliverables $40-50M - Savings from eliminating No shared investment tracking tools redundancies and projects without or metrics clear benefits Utilized blueprints in portfolio $200M - Incremental revenues from screening and diagnosis reallocating time and resources methodology towards customer value generating Prioritized projects, applications and initiatives platforms © 2003 Source: DCI experience database

Architecture also governs the most detailed IT activities 21 Enterprise Architecture … EA Iteration N EA Iteration N+1 Checkpoint 0 Checkpoint 1 Checkpoint 2 Checkpoint N - Assess need for - Update - Verify - Manage new technology blueprints to alignment architecture meet project with deviations - Check feasibility needs blueprints Software Development Lifecycle © 2003

Architecture drives down development time and cost Context and Approach Benefits Achieved 22 IBM developed a set of best- 60% reduction in architecture practices learned from it-s e- design time business projects 40% lower costs in systems Published as IBM’s Patterns for E- migration Business Sharply reduced risk associated Utilized by Experio Solutions as with application and reference architectures for e- infrastructure upgrade business Pattern based architectures support faster time-to-market and faster time to ROI © 2003 Source: Experio case study on IBM Patterns for e-business web site

Architecture sets the technology agenda for vendor evaluation & selection You are the best 23 and brightest in …yet you shall all the land…. have to prove yourself to me… Better No, Technology! me! I’m NEW! Upgrad Pick e now! me! © 2003

Where are you in your architecture efforts? Enterprise Architecture 24 Capability Maturity Model Level 5 Level 4 Continuous improvement. Level 3 Enterprise Metrics used Architecture to optimize Level 2 Enterprise is managed business Architecture and linkage Level 1 Enterprise is defined measured Informal, ad- Architecture (written (metrics and hoc Enterprise is under down) feedback) Architecture development processes Adapted from Meta Group, “Enterprise Process Maturity Model and the SEI Model”, © 2003 Enterprise Architecture Strategies

It doesn’t matter how you start, just get going! Breadth of Coverage 26 (Business Unit, Applications) Architecture Blueprints Type: Broad and Shallow Guiding Principles Depth of Coverage Architecture Governance Architecture Processes Organization & Skills Architecture Repository Metrics & Measurement © 2003

It doesn’t matter how you start, just get going! Breadth of Coverage 27 (Business Unit, Applications) Architecture Blueprints Type: Broad and Shallow Guiding Principles Depth of Coverage Type: Focused Architecture Governance Architecture Processes Organization & Skills Architecture Repository Metrics & Measurement © 2003

It doesn’t matter how you start, just get going! Breadth of Coverage 28 (Business Unit, Applications) Architecture Type: Broad and Shallow Blueprints Staffing: Moderate – 4 to 6 Guiding Principles Depth of Coverage Type: Focused Staffing: Low – 3 to 5 Architecture Governance Architecture Type: The Whole Enchilada Processes Organization & Skills Architecture Repository Metrics & Measurement © 2003

I’ve heard it before I’ve heard all the excuses: 29 “I can’t justify the cost of architecture” “Architecture is too theoretical” “I don’t see the impact of architecture” If you are thinking the same then you can’t complain that your systems are not aligned with the business or that you cannot get to the information you need or that your systems are inflexible or that you cannot change your systems fast enough… © 2003

The bottom line Throwing more technology at your problems will not 30 solve the problem Architecture is not about the technology, it’s about how you manage the technology The most excellent technical work, left unmanaged, is wasted work © 2003

Strategic Architecture

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