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Architecture Series 5-1 EA As Corporate Strategy Introduction

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A short introduction to EA concept, foundation of a solid EA program, and common EA frameworks

A short introduction to EA concept, foundation of a solid EA program, and common EA frameworks

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  • Enterprise Architecture as Corporate Strategy - Introduction

Architecture Series 5-1   EA As Corporate Strategy   Introduction Architecture Series 5-1 EA As Corporate Strategy Introduction Presentation Transcript

  • Architecture Series 5 - 1 Enterprise Architecture as Corporate Strategy Introduction
    • Frankie Hsiang – Enterprise Technologist
    • [email_address]
    Enterprise Architecture as Corporate Strategy - Introduction
  • Audience & Objectives Enterprise Architecture as Corporate Strategy - Introduction
    • Executives, business & IT managers, and architects who need a short introduction to EA concept, foundation of a solid EA program, and common EA frameworks
  • What is Enterprise Architecture?
    • Aligning strategic business operations with IT investment to produce optimized business results and maintain high quality, yet cost effective IT operations.
    • Common EA frameworks: Zachman, TOGAF, FEA, DoDAF, OMG -MDA, …
    Enterprise Architecture as Corporate Strategy - Introduction
  • Relationship to other IT disciplines Enterprise Architecture as Corporate Strategy - Introduction
  • Solid EA Foundation Enterprise Architecture as Corporate Strategy - Introduction Business operating model IT engagement & governance model IT architecture definition, & optimization
  • Business Operating Model Enterprise Architecture as Corporate Strategy - Introduction
    • Coordination
    • Shared customers, products or suppliers
    • Impact on other business unit transactions
    • Operationally unique business units or functions
    • Autonomous business management
    • Business unit control over business process design
    • Shared customers/ suppliers/ product data
    • Consensus processes for designing IT infrastructure services; IT application decisions made in business unit
    • Diversification
    • Few, if any, shared customers, or suppliers
    • Independent transactions
    • Operationally unique business units
    • Autonomous business management
    • Business unit control over business process design
    • Few data standards across business units
    • Most IT decisions made within business units
    • Replication
    • Few, if any, shared customers
    • Independent transactions aggregated at a high level
    • Operationally similar business units
    • Autonomous business unit leaders with limited discretion over processes
    • Centralized (or federal) control over business process design
    • Standardized data definitions but data locally owned with some aggregation at corporate
    • Centrally mandated IT services
    • Unification
    • Customers, and suppliers may be local or global
    • Globally integrated business processes often with support of enterprise systems
    • Business units with similar or overlapping functions
    • Centralized management often applying functional/ process/ business unit matrices
    • High level process owners design standardized processes
    • Centrally mandated databases
    • IT decisions made centrally
    Business Process Standardization Business Process Integration High Low High Low See ref. #1 Merrill Lynch Global Private Client DuPont, GE, Citicorp, Johnson & Johnson McDonald’s Dow Chemical, commodities
  • Business Operating Model
    • A structure for a company to execute business vision, and strategy
    • Different industry and corporation has different level of integration and standardization needs.
    • Deploying different operating models at different organizational level to meet critical business needs
    • Business operating model has great impact to IT engagement & governance model and IT architecture definition
    Enterprise Architecture as Corporate Strategy - Introduction
  • Pendulum Phenomenon of IT Mgmt Enterprise Architecture as Corporate Strategy - Introduction Centralized Decentralized 3 – 5 years one way
    • Costs
    • Not meeting corporate goals
    • Millions of dollars wasted
    • Unhappy business users
    • Low moral at IT department
    Symptom of misalignment of business operating model and Enterprise Architecture
  • IT Engagement & Governance Model
    • Integrated Business and IT Executives Steering Committee: define business operating model, provide executive level guidance and set business priority
    • Integrated Business and IT PMO with standardized SDLC including phase-gate review practice
    • Architecture Team: produce architecture principles, detailed architecture guidance, architecture review process, architecture artifacts, & as reviewers in ARB
    • Integrate EA as part of annual budget process: OMB – CPIC, Resource Allocation Committee
    • Integrate EA as part of SDLC process in initiation and analysis - elaboration phase
    Enterprise Architecture as Corporate Strategy - Introduction
  • IT Architecture Definition & Optimization
    • Driven by business operations, includes documented current state, to-be state, and a long term roadmap which maps steps transiting from current to to-be on a yearly basis
    • 4 layers of architecture: business, information, application, & technology
    • Captures core business functions, processes, activities, data, key users, and why they are important.
    • Clear linkage to strategic business functions and manage by IT governance model.
    Enterprise Architecture as Corporate Strategy - Introduction
  • SPA – Good Software Engineering
    • S eparate of Concerns – Layered, and componentized architecture definitions. Zachman 6 perspectives, FEA 3 levels in 5 reference models, TOGAF 4 domains, …
    • P atterns driven system design, integration and communication consistency
    • A rchitecture Centric solution development
    Enterprise Architecture as Corporate Strategy - Introduction
  • EA Program Execution Enterprise Architecture as Corporate Strategy - Introduction Select EA methodology & assess progress Gain C senior executives support Business operating model IT engagement & governance model IT architecture definition, & optimization EA methodology adoption Guidance, compliance & control Culture change
  • EA Program & SOA Strategy
    • EA business architecture supports SOA business functions, processes, and activities definition
    • EA information architecture supports SOA business vocabulary definition, & data stewardship
    • EA application & technology architecture supports SOA implementation and technology platforms management.
    • EA governance process supports SOA services governance
    • EA roadmap implements SOA one project at a time.
    Enterprise Architecture as Corporate Strategy - Introduction
  • SOA Implementation Strategy
    • Captures core business functions, processes, activities, data, key users, and why they are important.
    • Define common business object model which contains information to drive the business process flow.
    • Produce business driven roadmap and IT architecture
    • Use roadmap and architecture to guide implementation
    • Select SOA platform and utilize SOA platform functions to implement and manage services.
    • Implement enterprise SOA one project at a time .
    Enterprise Architecture as Corporate Strategy - Introduction
  • Common Business Object Model
    • A model uses XML/XSD to define complete and detailed LOB business entities down to individual attribute level and the exact business relationship among those business entities – build incrementally.
    • The core business objects (vocabulary) for all systems information exchange and integration.
    • Helps to reduce the number of data transformation among data producers and consumers.
    • Adopt industry standard if available. SWIFT – ISO 15022, FIX-FIXML, XBRL, MISMO, …
    Enterprise Architecture as Corporate Strategy - Introduction
  • Stages of Architecture Maturity
    • Business Silos, Standard Technology, Optimized Core, Business Modularity from ref. #1
    • OMB FEA Assessment Framework: 1 Initial, 2 Baseline, 3 Target, 4 Integrated, 5 Optimized; 14 criteria, grouped into 3 capabilities: Completion, Use and Results from ref. #4
    • DoC IT ACMM - 6 levels (0-5) in 9 categories : none, initial, under development, defined development, managed, measured from TOGAF, ref # 6
    • Software Engineering Institute (SEI) at Carnegie Mellon University - SW-CMM - 1 initial, 2 repeatable [managed], 3 defined, 4 quantitatively managed, 5 optimizing
    • Each level of maturity has its own strength and weakness. Different maturity level needs a different strategy to bring organization to next level of maturity.
    Enterprise Architecture as Corporate Strategy - Introduction
  • Federal Enterprise Architecture www.whitehouse.gov/omb/egov/a-1-fea.html Enterprise Architecture as Corporate Strategy - Introduction
    • Constructed through a collection of business driven, interrelated and layered reference models
  • Federal Enterprise Architecture
    • Business Driven Approach: Business transformation, BRM
    • Budget Allocation – OMB Exhibit 300, EA Assessment Framework 2.2, set priority, reduce redundancy
    • Information Sharing – DRM, data description, context,
    • Performance Measurement - PRM
    • Budget / Performance Integration – CPIC Preselect, Select, Control, Evaluate, Steady State
    • Cross-Agency Collaboration
    • E-Governance
    • Component-Based Architecture - SOA
    Enterprise Architecture as Corporate Strategy - Introduction
  • Zachman EA Framework www.zifa.com Enterprise Architecture as Corporate Strategy - Introduction
  • Zachman EA Framework
    • Arguably the most studied EA framework.
    • In practice, EA analysis starts at Scope, then Business Model, then System Model.
    • Not all cells in the grid need to be filled in. Data, Function, People, and Motivation columns are filled in most of the time.
    • High abstraction with limited support on templates and processes.
    Enterprise Architecture as Corporate Strategy - Introduction
  • TOGAF 8.1 Framework www.togaf.org Enterprise Architecture as Corporate Strategy - Introduction Enterprise Continuum Resource Base ARB, governance structure and process, maturity model, principles, skill framework, templates, patterns, architecture views, business processes, …
    • All deliverables from each ADM iteration
    • Models, patterns, business vocabulary, drawings, layered architecture definitions
    • Assets from the industry –TOGAF reference models
    retrieve store
  • TOGAF Summary Enterprise Architecture as Corporate Strategy - Introduction
    • Architecture Development Methods (ADM)
    • The core of TOGAF. A business requirements driven iterative process to develop an enterprise architecture.
    • Analyze complex business domain from business, data , application, and technology views.
    • Enterprise Continuum - Virtual Repository
    • A virtual repository of all architecture asset. During ADM process, all architecture deliverables are created, modified, referenced, and managed by the repository.
    • Resource Base
    • Required resources and reference material to develop enterprise architecture. ARB, governance structure and process, maturity model, principles, skill framework, templates, patterns, architecture views, business processes, …
  • Key ideas to take away
    • Pick an EA framework. A lot better than don’t have one.
    • Adopt the selected EA framework
      • Strong executives support
      • Measure EA in money, time to market, and IT quality
      • Implement EA one project at a time.
      • Training! Training! Training! At all levels.
    • It is a culture change. Routine communication and actionable EA measurement matrix is the key for a successful EA program.
    Enterprise Architecture as Corporate Strategy - Introduction
  • Reference
    • Enterprise Architecture as Strategy ISBN 1-59139-839-8
    • E-Gov FEA http://www.whitehouse.gov/omb/egov/a-1-fea.html
    • OMB FEA_Practice_Guidance_Nov_2007.pdf
    • OMB FEA Program - EA Assessment Framework 2.2
    • DoDAF http://www.defenselink.mil/cio-nii/cio/earch.shtml
    • The Open Group – TOGAF 8.1.1 http:// www.togaf.org /
    • Zachman Framework http:// www.zifa.com /
    • Wikipedia “Enterprise Architecture”. http:// en.wikipedia.org
    • Service Oriented Architecture by Thomas Erl – ISBN 0-13-142898-5
    Enterprise Architecture as Corporate Strategy - Introduction