Making Architecture Business Value Driven


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Making Architecture Business Value Driven - Dave Guevara

The Denver IASA June 2008 meeting looked at the Business of Architecture. This discussion will look at one part of the broad topic, the business and strategic alignment processes that align IT to be business value driven.

The alignment that we will focus on is between the strategic intent of a company, and the capabilities that are needed to implement the business processes and technologies that will execute that strategic intent. A case study example will be used to illustrate some of the “how to” methods for doing this in your organization. This session will be interactive.

In addition to discussion these new concepts relating strategic intent to capabilities (Business, Organizational, Technical, Integration) we will also take a brief look at getting from capabilities down to User Story inventories and ultimately into services development. Recent feedback from the Agile conference was that these concepts and their use were spot on to where the thought leadership is moving to in the Agile field.

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Making Architecture Business Value Driven

  1. 1. Business of Architecture to make IT Business Value Driven: Case Study Dave Guevara April 20, 2009 Principal Architect P i i l A hit t IASA Denver Chapter
  2. 2. Today’s Agenda Background & Problem Statement What are We Aligning? How do We Align Simply & Quickly? Agile SOA Alignment Example Discussion Note: Some materials are copyrighted and IASA Denver Chapter is authorized to redistribute. Other materials are not and so the author’s contact info is provided for those wanting to request that info. IASA Denver Chapter 2
  3. 3. Business of Architecture Problem Statement Even when architectures and design standards have been well defined it seems that to the design and development teams they are: – Too abstract – Irrelevant – Ignored – Unknown New adopters of Agile development often have the misperception that Agile minimizes or eliminates the need for good design and architecture practices How do we build enterprise class solutions, which require best practices, practices good architecture and standards and assure their standards, adoption and use by software and EDW/BI teams into operations? IASA Denver Chapter 3
  4. 4. Background Researching “Making EA Relevant to SW & EDW/BI project teams” – Purpose is to assure that strategic/business intent persist through deployment June 2008 IASA Denver Chapter we discussed the Business of Architecture Summer 2008 applied the Agile SOA Alignment to a project: – Anu Ramaswamy, business analyst & business architect (in-training) – Agile SOA examples are from her application and use Nov 2008 to Mar 2009 applied the Strategic Alignment to scoping a pp g g p g multi-year, multi-$10M’s project – Dave Guevara, program business architect – Company is confidential due to competition sensitive info April 2009 adapted Business Alignment to a 2-week rapid assessment of a whether a strategic Agile enterprise SOA project was aligned with the CEO’s strategic intent. g g IASA Denver Chapter 4
  5. 5. What Do We Do With This? Provides “how to” guidance in support of TOGAF 9.0 This research is providing the materials and testing ground for curriculum for IASA courses: – Denver Chapter? – IASA certification courses Should be a book or couple of practical “how to” books that: – Pull the concepts together in a way that we can use just what we need – Are written at two levels of the project teams and their management IASA Denver Chapter 5
  6. 6. "Nothing is particularly hard if you divide it into small jobs.“ jobs.“ Henry Ford This is how you help many minds understand their part of a complex solution 6
  7. 7. Our reality in IT project teams We get less time than we need – So there is no time to be a purist or altruistic Our business world and rules are more complex – But our brains want simpler (they are too full) Stuff happens and things change “dynamically” – M h says at all th wrong ti Murphy t ll the times, no matter when tt h We have to use Agile, Waterfall, Standards… – But no guidance on how to assure business value More for less and faster – General mandate from business to create more value IASA Denver Chapter 7
  8. 8. THE Critical Outcomes of Business Alignment Business & IT Speed – Time to market – Adaptability – Agile development team’s velocity team s Reduce Friction – What makes change hard? – Where are there constraints (why we can’t do something)? Two Primary Speed/Friction Determinants – Technology – People p IASA Denver Chapter 8
  9. 9. Why Increase Speed? Speed? Speed: SSC Ultimate Aero – G i Guinness f t t car in the world f 2007 fastest i th ld for – 0-60 2.7 sec, 257 mph+, Twin Turbo V8 1183 hp – $654,400 base price (yes base, you can buy options) • Speed: Your business p is growing fast & you did it all right… 9
  10. 10. Why Reduce Friction? Friction: SSC Ultimate Aero – C you accelerate t 60 on j t th rims, or t Can l t to just the i two ti ? tires? – Can you get to 257 mph when you can’t close the doors? – How long will the Twin Turbo V8 run without oil? • Friction: Core parts of your business haven’t been built for speed… 10
  11. 11. How do we get Speed and Low Friction? 1. Simplify your Business Model 2. Modularize the Blocks 3. Standardize the Interfaces 4. Look at points that change fast 5. g p Know the overall economics & throughput 6. Focus on constraints to value throughput 7. Manage to the Vital Signs ( g g (3-5 KPIs) ) IASA Denver Chapter 11
  12. 12. How Do We Align Simply & Quickly? Business Alignment Framework Aligning IT to Business Applied t Project Level A li d at a P j t L l Page 12
  13. 13. Business Alignment Framework Provides a COMMON Set of Business Requirements Across All Programs Enterprise Programs and Initiatives Business & IT Business Alignment Framework Application Infrastructure Development EDW/BI Programs or Programs Rationalization ©2009 David R Guevara Jr All Rights Reserved 13
  14. 14. Business Alignment Framework Strategic Goals Tonight’s Chat Strategic Operational Goals (business unit) Capabilities Operational Capabilities p p Alignment Business Business Capabilities & Drivers Functional Components High Level Business Requirements - Domains (eg analytics, governance) - Environments (around lifecycles) - Service Level Expectations - Business Processes Focus Biz/Org Capabilities Analysis on the Gap Business Organizational Capabilities Capabilities Detailed Business Requirements Map Capabilities & A ti iti Activities Components & Gap Alignment Technical Integration Analysis Software Functions & Features Capabilities Capabilities Focus Tech/Integ Capabilities Analysis on the Gap Software Design Technical Solution Architecture Components Capabilities Software Design Components Alignment Software Implementation/Construction ©2009 David R Guevara Jr All Rights Reserved 14
  15. 15. Business Alignment of IT – the Puzzle Pieces At a project level may or may not: – Have clear business strategies in the business case. – Clear context for the capabilities that are needed. – Enterprise or design standards g p g guidance or a design concept g p – Context of the project within the portfolio of other projects – Resource contention with efficient means of reprioritization Business C B i Cases often h ft have goals th t are di tl l that directly related to the outcomes of the project in terms of: – Process improvements – FTE or contractor reductions – IT efficiencies – quicker & easier troubleshooting, upstream QA – Dependencies of business and operating goals on specific capabilities ©2009 David R Guevara Jr All Rights Reserved 15
  16. 16. Puzzle Master Basics Define Dimensions and Service Level Expectations (SLE) – Captures all the stuff that people are supposed to think of Use Top-Down in combination with Bottoms-Up – Like building the border of the puzzle then working the area where the pieces clearly fit together together. Adapt Use Case Outline to manage User Story Inventories – Connect User Stories together in context of the business value – Carve up the problem into bite size pieces Map Business Architecture to Solution Design Architecture components – This structure is used to assign capabilities to requirements to designs ©2009 David R Guevara Jr All Rights Reserved 16
  17. 17. What are the Dimensions of Alignment? 3 Dimensions – Business Processes • Hierarchy from value chain components – Domains • Non-process or Environment – Environments • Supports artifact life cycles • Examples are Software, Product, Customer, Work Artifacts (bill, invoice) ( , ) Color of a Dimension – Measure of Goodness – S i L Service Level E l Expectations t ti ©2009 David R Guevara Jr All Rights Reserved 17
  18. 18. High- High-level business requirements within the Business Alignment Framework g Business Processes: Define these completely from external business interfaces through all workflows Business Domains: Not process or environment core competencies Examples are analytics, governance, business economics Business Environments: Environments are the assets and resources that are required to support a life cycle Things that have life cycles: clients, products, projects, software, data Service Level Expectations: These are measures of “goodness”; how many, how fast, how well ©2009 David R Guevara Jr All Rights Reserved 18
  19. 19. Use Business Alignment Framework to Connect Top Down with Bottoms Up Analysis Structure that aligns enterprise strategies with tactical execution… Strategies Initiatives Business Architecture Enterprise Architecture Business Value Governance Value Management Risk Management Roadmaps Investments FSA Blueprints Communication Plans Business Models Business Alignment Business Biz & IT Environments Business Alignment Framework Processes Domains Framework SLEs Activity / Event Technical Composition Management Governance Lifecycle Budgets Management Repositories Technical, Information & Solution Architecture Software Architectures Messaging Metadata Services Projects Solution Management Architecture Infrastructure Security ©2009 David R Guevara Jr All Rights Reserved
  20. 20. Managing User Story Inventories for Completeness How do you prove that the User Story inventory, for a given release , will provide end-to-end process functionality? Business Processes------>>> 1. Capture Application Information 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Associate application with rep Get policy attribute from mation ributes ote Search for policy ess Capture Opp inform es Search for quo n Capture policy attr Validate addre Choicepoint Activities / Functions Requirements Tracking Precedence Using a spreadsheet or Basic Flow Alternate Flows tool like Rally, track User Use Case Outline Stories to business Exceptions Flows reminds Data validations processes and the Use Business Analyst, Business Rules Case outline topics, eg p , g UI specifications Scrum M t and S Master d Interface specifications Basic Flow. Lead Developer of Domain Environment what to consider when defining User Value Realized from Activity ( % ) Stories or Epics Project Tracking R Requirements completed S Sprint scheduled Simple status indicator C Completed functionality shows where in the design cycle the User Stories ©2009 David R Guevara Jr All Rights Reserved functionality are currently. 20
  21. 21. Business to Solution Architecture Domains, Capabilities & Biz & Org SLEs, High Level Capabilities Environments, Requirements R i t Business Functional eg Quote to eg Channel Component C t Cash Process Sales Support Architecture Solution Design eg Shared Architecture Component Services eg Policy Capabilities & Implementation Technical & (vendor specific) Implementation Integration Solutions Capabilities 21
  22. 22. Strategic Alignment Example Strategic Goals to Business Capabilities Due to confidential nature of information much of thi example i redacted or generalized h f this l is d t d li d Page 22
  23. 23. Strategic Alignment Example Summary IT had done three prior major programs lead by major SI’s (at different times) with a very large investment and the business still did not have what they needed. Expanded Business Model – scalability and rapid time to market. Caught Between – legacy systems not yet retired and new systems. Simultaneous Change – Several simultaneous transformational change events while restructuring costs and moving to an outsourced IT model. Excessive Complexity – Current solutions were fragile, difficult to change without breaking more than what was fixed, and there was no architectural foundation from which build the new loosely coupled, more adaptive solution and processes. 23
  24. 24. Outcome from Strategic Alignment # of Capabilities (Org was out of scope) – Business Unit 1: 348 – Business Unit 2: 83 – System-to-system Interfaces: 119 across 15 interfaces y y – Technical (core app and rules engine only): 284 All C Capabilities were mapped t biliti d to: – Strategic and operational goals and initiatives – First major release of two core systems and surrounding interfaces – Basis of estimate for a 3-year development and deployment program 24
  25. 25. Strategic Capabilities Alignment • To be strategic there should only be 2 to 3 Strategic • These provide multi-year guidance on what the company Goals will do to be what the vision calls for and to create Durable Competitive Advantage Annual growth Business Unit Goals 2009 2010 2011 Operational These goals should map directly to +X% +X% +X% Goals strategic and operational goals. +X% +X% +X% They should span at least 2 to 3 y y p years. X X X They MUST be measurable and the scope xx.x% xx.x% Xy.x% of the project should produce reporting of x x X or to enable reporting these metrics Operational O ti l • To define Operational Capabilities answer this question: Capabilities What are the capabilities or drivers we need to achieve each goal. Some (11 total, capabilities support more than one goal, others may not. Be specific and validate that these capabilities are what directors and managers are p ) 1 example) doing in their current year and planning for ne t year. c rrent ear next ear 25
  26. 26. Operational Goals to Operational Capabilities Alignment Sustain/ Create Operational Goals (eg typical 5 types) Increase Improve Governance or Reduce Costs / Improve (3 year Goals) 2009 to 2011 Revenue Efficiencies Risk Mitigation Capabilities Key Metrics Measureable Goals Operational Capabilities 1. Answer the question: Map which Capabilities Will Produce Or Support 2. What are the drivers or capabilities Each Goal 3. That are needed to achieve 4. The Operational Goals? 5. 6. X X X X 7. X X X X X 8. X 9. X X X 10. X X 11. X 26
  27. 27. Operational Capability: For Each OpCap Capability: Business Capabilities 5.1 Answer the question: 5.2 What are the Business Capabilities that are required to perform 5.3 The Operational Capabilities? 5.4 5.5 55 Business C B i Capabilities are those that a role-based worker, th company or biliti th th t l b d k the 5.6 A department must do to deliver Operational Capabilities. 5.7 Example: OpCap: Increase Cross-selling by X%. BizCap: View likely cross-sell products when client is on the phone Service Level Expectations • Th These ddescribe the overriding and shared expectations from the business about the ib th idi d h d t ti f th b i b t th systems and solutions that will deliver the Business Capabilities. • Examples are uptime, availability during working hours, what functions are available during outages, notification and response times of outages, business continuity timeframes for recovering after a disaster, ease-of-use ease of se across all Uis ease of administration across all s stem admin interfaces sec rit like single Uis, ease-of-administration system interfaces, security sign-on. 27
  28. 28. Agile SOA Example Business Alignment to SOA Development Example Implementation of this alignment was done by Anu Ramaswamy A R Given the confidential nature of this project these slides will not be distributed but Anu has offered to answer any questions. We hope to co-publish a white paper that can be shared with a public audience. Page 28
  29. 29. Agile Development Challenges How do we assure that the User Stories completely deliver the i d li h intended b i d d business value? l ? How do we plan releases that deliver meaningful and visible business value to our business sponsors and stakeholders? How do we assure that the point count is complete and that the velocity dependencies are accounted for? How do we identify blockages early on that are beyond the charter of the development team? How do we know when we put all the pieces of the puzzle together (the sprints) that it all fits and delivers the intended value? 29
  30. 30. User stories alone can be problematic This material is copyright protected by Jeff Patton For this content and related materials please refer to the presentation titled “patton_user_story_mapping” on slide # 13 At this URL http://www agileproductdesign com/presentations/index html 30
  31. 31. Accelerating Agile Requirements and Design Example Business Requirements Alignment to SOA Agile Project IASA Denver Chapter 31
  32. 32. Open Discussion: Q & A For questions or suggestions contact: Dave Guevara 303.885.9144 IASA Denver Chapter 32
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