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Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
Anatomy of Agile Enterprise
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Anatomy of Agile Enterprise

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The presentation establishes a systemic view of the enterprise and proposes generic principles for building a flexible enterprise architecture that enables organizational agility.

The presentation establishes a systemic view of the enterprise and proposes generic principles for building a flexible enterprise architecture that enables organizational agility.

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  • In their seminal work on systems in biology, Maturana and Varela make a useful distinction between the organization and structure of a system. The organization of the system defines its identity in terms of inter-component relationships. It specifies a category, which can be realized through specific structures. A system may change its structure without loss of identity, as long as its organization is maintained.
  • Let’s take an example: a motorcycle. It is a system with an organization and with a structure. The organization of the motorcycle is about the functional relationships between its parts: how the engine powers the wheels, how the handle-bars steer the front wheel and so on. The structure of the motorcycle is those parts: the specific engine, transmission, wheels. The structure can be changed without changing the essential nature of the motorcycle. If the front wheel is changed, the motorcycle is still a motorcycle. However, when the systemic organization is changed, the very essence of the motorcycle may change, too. When the transmission is removed, for instance, the motorcycle is rendered useless, as the engine does not power the wheels anymore.
  • At the most abstract level, an enterprise can be seen as a system. As such, it cannot be defined in terms of its actions as a whole or by enumerating its constituent elements.An enterprise is essentially defined by its business processes encompassing both systemic organization and structure: the relationships between process participants as well as the specific realizations of the participants. A business function, for instance, plays different roles in different business processes and aligns its internal operations accordingly. The implementation of a separate business functionality can be changed, e.g. by automating a manual task, without affecting the nature of the business process as a whole.An enterprise operates at different levels, each with different objectives, data needs, and methods. These levels can be classified by the decision-making horizon as follows:Strategic decision-making affects activities in the distant future. These decisions are usually made in the face of external influences – technical advances, market shifts, environmental factors, or competition. They have a high impact on the organization and require significant effort over a long period of time. Strategic enterprise decisions are made by the top management.Tactical decisions involve actions intended to occur in the future – business process re-engineering, incorporating new suppliers, installing new software or equipment. The decisions are often interlinked to strategic plans and based on operational data. Tactical decisions are far-reaching and their implementation requires substantial time and effort. They are generally made by the middle management that translates the strategic intent to the concrete reality of business.Operational decision-making is related to concerns of the immediate future – resource allocation, priorities, and expenditures. Operational decisions have a direct impact on the conduct of business and typically do not require laborious implementation. The decisions are made in response to tactical plans or based on operational data and are mostly made by front-line business managers.Real-time decisions pertain to current activities. They are made within the operations themselves, in line with the operational plans, by automation or people conducting the work.
  • In his seminal book “Requisite Organization”, Elliott Jaques defends hierarchy as a natural and efficient form of social organization. Organizational dysfunctions can be traced to poor structure that prevents employees from working at their full potential. A properly structured Requisite Organization, in contrast, can release energy and creativity and improve morale. According to his Stratified Systems Theory, the hierarchy reflects the complexity of problem solving. The greater the complexity (level of work) in a role, the higher in the organization should the person in the role be. A simple measure of the level of work is the time span of discretion in a role—the longest task for which one is held accountable. The longer the time span of discretion, the higher the level of work. As simple and straightforward as this may sound, decades of research support the notion. It also bears intuitive relevance—the task delegated by a manager cannot span a longer time period than the task the manager himself is responsible for. Jaques maintains that the role complexity increases in specific steps at time spans of 1 day, 3 months, 1 year, 2 years, 5 years, 10 years, 20 years and 50 years. These breakpoints stratify varying kinds of work into natural layers, or “strata”, in the hierarchy. A role falling into any given stratum should report to a role in the next stratum up. When roles are placed requisitely, an organization is likely to function effectively. When they are too close or too far, dysfunction is inevitable. Problems also arise when a person is in a role at a level higher or lower than his or her current capability or when there are too many or too few layers. Jaques maintains that there are four methods by means of which people process information: Declarative Processing: disjunctive, declarative reasoning, in which the reasons are separate and no connection is made with any of the other reasons. Cumulative Processing: conjunctive reasoning, in which independent ideas are conjoined to make sense as a whole. Serial Processing: sequential reasoning, in which each reason sets the conditions that lead to the next reason. Parallel Processing: concurrent reasoning, in which a number of possibilities, each arrived at by means of serial processing, is examined. This quartet of mental processes is recursive in that it gets repeated at a more complex level in each higher order of information. There are five orders of information complexity: Pre-Verbal (PV): This is the most concrete order of information expressed in pre-verbal infancy in the form of gestures and physical contact with objects. Concrete-Verbal (CV): This refers to thinking and language as it is found in children. Thoughts and words are immediately tied to physical pointing out of the things thought about and referred to—or to a thing that, although not physically present, has recently been seen somewhere and is assumed still to be there. Symbolic-Verbal (SV): This is the form of thought and language used by most adults. Thoughts and words no longer have to refer to specific tangible entities. They are used as true symbols and can be construed and worked with as though they themselves were the things. Conceptual-Abstract (CA): This is the form of thought and language required for successful work at senior corporate levels. Thoughts and words seem abstract in the sense that they refer to other thoughts and words rather than to things; that is to say, conceptual abstract thoughts and words pull ideas together; but they must be able to be related to tangible things at more than one remove. Universals (U): This form of thought and language is ordinarily thought of in terms of genius—creating new types of society, new systems of ethics and morality, new values and cultures, sweeping new theories.
  • The Requisite Control Structure observes the requisite strata of Requisite Organization in a repeating pattern. In the smallest business of one stratum, there is a one-level control structure, Model, that encompasses all decision-making horizons of the business. A two-strata business has a two-level control structure, Control-Model, in which the real-time decisions are delegated to the lower level, while the higher level addresses the longer decision-making horizons. The third stratum brings about coordination to the control structure; in Coordination-Control-Model, strategic and tactical decisions pertain to the coordination level, while operational and real-time decisions are made at the control and model levels, respectively. In a four-strata business, the real-time, operational, tactical, and strategic horizons translate to strata I–IV, respectively.
  • A layered architecture framework is useful in representing different aspects of different models as long as overall consistency is preserved through the framework’s metamodel. In this model, an architectural framework of five levels is proposed. These layers from top down are: Business Strategy Layer, Organization / Business Process Layer, Integration Layer, Software/Data Layer and IT Infrastructure Layer.
  • Business strategy layer answers to “what” and “why” questions about the business models that the enterprise currently operates and aspires to operate in the future. The layer comprises of organizational goals and success factors, products/services, targeted market segments, core competencies and strategic projects.
  • Organization/business process layer answers “how” the selected strategic business models are run depending on the organization structure and on the enterprise assets available. The layer comprises of organizational units, business locations, business roles, business functions, business processes including inputs/outputs (internal and external business services including service levels), metrics (performance indicators) and service flows, business information objects and aggregate information flows. Less tangible elements such as culture, learning, human resources and competencies can also be identified. Although these aspects cannot be readily represented in the EMR metamodel, pertinent principles can be used prescriptively to guide enterprise development efforts
  • Integration layer mediates between business and IT architectures. Merely modeling the business processes and business services, however, is not enough to enable agility. It is necessary to identify the applications and technology that underlie the processes and to understand their interdependencies. Traditionally, large-scale enterprise information systems support business processes and other organizational activities. In SOA, the technical artifacts are bundled to implement the specified context-independent business services. These services can be used as implementations of business functions within business processes. Business services play a key role in enterprise architecture and are documented at the integration layer. Flexible integration requires following coherent and consistent information architecture principles that guide exploring, presenting and exploiting information.In this model, information architecture is not seen as a separate architecture domain but rather split in the organization/business process layer in terms of logical information structures and in the software/data layer in terms of implementation of data repositories. These two models meet at the integration layer and provide a sound basis for the interface design of business services.
  • Software/data layer and IT infrastructure layer describe the enterprise technical architecture artifacts, like applications, software components, data stores and their underlying execution infrastructure including hardware, system software and network elements. They are typically managed and documented in detail within configuration management databases (CMDB) used by enterprise IT operations units, but transforming a large and complex enterprise requires a holistic view of the enterprise complied into an EMR, embracing the enterprise business architecture, the associated technology architecture, and their semantic dependencies. Empirical studies have found that aggregating detailed technical application information is helpful in supporting holistic application portfolio management by senior IT executives.
  • Agility is not about operational efficiency. It is about rapid reassembly of organizational assets to respond to environmental stimuli – about continual adaptation of the internal organization to the external environment. In an agile enterprise, as opposed to what could be called a ‘fragile enterprise’, the enterprise architecture allows quick changes to its processes.At the strategic level, agility is manifested as strategic management rather than strategic planning: the planning perspective is short and the plan is constantly revised based on the feedback.At the tactical level, the focus is on the optimization of horizontal end-to-end processes rather than vertical functions. This calls for communication and coordination instead of command and control. Business Process Management (BPM) includes concepts, methods, and techniques to support the design, administration, configuration, enactment, and analysis of business processes. At the operational level, the business-IT alignment is achieved through context-independent services. In Service-Oriented Architecture (SOA), the intricacies of the application and technology infrastructure are enveloped behind a well-defined, self-describing service interface that is context-independent and reusable in different contexts. Technical functions are mapped to business needs and applications are rationalized to elicit “source of truth” information models. The data in the underlying information systems are mapped to these canonical concepts using appropriate integration technologies (EAI, EII, ETL).At the real-time level, the underlying application landscape and IT infrastructure remains. In an agile enterprise, Enterprise Architecture (EA) provides a comprehensive view of all these assets and their interrelationships and enables various kinds of cost calculations and impact analyses that facilitate planning for change.
  • Architecture modernization – from fragile to agile – starts with an identification of logical business system domains (BSDs). These domains are based on business functions, technical infrastructure, applications, or a combination of these.Next, integration spaghetti is replaced with lasagna: idiosyncratic point-to-point integrations are routed through Enterprise Application Integration (EAI) tools within the BSDs and the resulting EAI realms are connected with gateways between the BSDs.Gradually, business functionality is derived from the underlying technical functions and exposed as context-independent SOA services. These services are then orchestrated in functional business processes that are executed in a Business Process Management System (BPMS). Finally, the overall process is choreographed over the functional processes to bring about the end-to-end behavior.
  • Transcript

    • 1. Anatomy of Agile Enterprise
      www.requisiteremedy.com
    • 2. Systemic Organization and Structure
    • 3. There is so much talk about the system. And so little understanding.
      That’s all a motorcycle is, a system of concepts worked out in steel.
      − Robert Pirsig, Zen and the Art of Motorcycle Maintenance
      There is so much talk about the system. And so little understanding. That’s all a motorcycle is, a system of concepts worked out in steel. − Robert Pirsig, Zen and the Art of Motorcycle
    • 4. Requisite Control Structure
      Strategic
      Contract
      Organization
      for
      Tactical
      Coordination
      of
      Operational
      Control
      Structure
      over
      Resources
      Real-Time
    • 5. Strategic Level: Contract
      Contract:
      An agreement between two or more parties for the doing or not doing of something specified.
      − Webster’s Encyclopedic Unabridged Dictionary of the English Language
    • 6. Tactical Level: Coordination
      Coordination:
      The act of organizing something; a process of communication from one source to two or more coterminous receivers which makes the receivers act in concert.
      − Krippendorf (1986): ”A Dictionary of Cybernetics” (unpublished)
    • 7. Operational Level: Control
      Control:
      A constraining effect on a variable, a directing influence on the behavior of a system, or the setting of the parameters of a system. Any one-way communication, which by its definition conditions a receiver's behavior in some respects, involves control of a receiver by a sender.
      − Krippendorf (1986): ”A Dictionary of Cybernetics” (unpublished)
    • 8. Real-Time: Model
      Model:
      A system that stands for or represents another typically more comprehensive system.
      − Principia Cybernetica Web
    • 9. Time
      Span
      50 Y
      20 Y
      Conceptual Abstract
      10 Y
      5 Y
      2 Y
      1 Y
      Symbolic Verbal
      3 M
      1 D
      Jaques: Stratified Systems Theory
    • 10. Strategic
      tactical
      operational
      real-time
      IV
      Strategic, tactical
      operational
      real-time
      III
      Strategic, tactical,
      operational
      real-time
      II
      Strategic, tactical,
      operational, real-time
      I
      Control-Model
      Coordination-
      Control-Model
      Contract-
      Coordination-
      Control-Model
      Model
      Requisite Control Structure observes the requisite strata of RO
    • 11. RequisiteStratum
      Role
      Complexity
      Control
      Mechanism
      Mental
      Process
      8.
      50 years
      Contract
      Parallel
      20 years
      Serial
      7.
      Coordination
      Conceptual Abstract
      Cumulative
      6.
      10 years
      Control
      5.
      5 years
      Declarative
      Model
      2 years
      4.
      Contract
      Parallel
      1 year
      3.
      Serial
      Coordination
      Symbolic Verbal
      2.
      3 months
      Control
      Cumulative
      1 day
      Model
      1.
      Declarative
      Requisite Organization and RCS
    • 12. Strategic Management
      2 years
      Strategy
      Strategic
      Level
      Re-Engineering
      1 year
      Tactical Level
      Organization
      Processes
      Planning
      3 months
      Operational Level
      Information
      Systems
      Business
      Services
      Operations
      1 day
      Real-Time Level
      Software
      Hardware
      Data
      Decision-Making Horizons and Pertinent Enterprise Artefacts
    • 13. Business
      Strategy
      Layer
      Strategic
      Organization/
      Business Process
      Layer
      Tactical
      Integration
      Layer
      Operational
      Software/Data
      Layer
      Real-Time
      IT Infrastructure
      Layer
      Enterprise Architecture Layers
    • 14. Business Strategy Layer
      Organizational goals and success factors, products/services, targeted market segments, core competencies and strategic projects
      Business
      Strategy Layer
      Organization/Business
      Process Layer
      Integration Layer
      Software/Data Layer
      IT Infrastructure Layer
    • 15. Organization / Business Process Layer
      Business
      Strategy Layer
      Organizational units, business locations, business roles, business functions, business processes, metrics and business information objects
      Organization/Business
      Process Layer
      Integration Layer
      Software/Data Layer
      IT Infrastructure Layer
    • 16. Integration Layer
      Business
      Strategy Layer
      Organization/Business
      Process Layer
      Business services and Enterprise Information Systems
      Integration Layer
      Software/Data Layer
      IT Infrastructure Layer
    • 17. Software/Data Layer and IT Infrastructure Layer
      Business
      Strategy Layer
      Organization/Business
      Process Layer
      Integration Layer
      Applications, software components, data stores and their underlying execution infrastructure including hardware, system software and network elements
      Software/Data Layer
      IT Infrastructure Layer
    • 18. Architectural Dimensions as Verticals Rather Than Layers
      Strategic
      Tactical
      Operational
      Real-Time
      Technology
      Business
      Information
      Information
      Systems
    • 19. Strategic Planning
      Strategic Management
      Function-Oriented
      Process-Oriented
      BPM
      Idiosyncratic Integration
      EAI, SOA
      Technology Mess
      Asset Repository
      Fragile vs. Agile Enterprise
      Strategic
      Level
      Tactical Level
      Operational Level
      Real-Time Level
    • 20. SOA Benefits at Different Levels
      • Partner Integration
      • 21. Outsourcing
      Strategy
      Business Processes
      • Rapid development of new capabilities
      • 22. Agile business processes
      Information Systems
      • Reuse
      • 23. Interoperability
      Infrastructure
      • Technology virtualization
      • 24. Better transformability
    • ArchitectureModernization
    • 25. CapabilityDevelopment
    • 26.
    • 27.
    • 28.
    • 29.
    • 30.
    • 31. 0
      1
      2
      3
      4
      5
    • 32. Co-Evolution of Maturity and Agility
      EA of Enterprise Scope
      EA = BA + EWITA
      Business Process
      Management
      EA = EWITA
      EA = ITA
      Business Process
      Orchestration
      Evolution of enterprise agility
      Business Process
      Automation
      No EA View
      Business Process
      Modeling
      No Process
      Modeling
      Service-OrientedArchitecture (SOA)
      Basic SOA
      Enterprise ApplicationIntegration (EAI)
      Point-to-Point
      Integration
      ”Islands of Automation”
      Level 1:
      Initial
      Level 2:
      Managed
      Level 3:
      Defined
      Level 4:
      Quantitatively
      Managed
      Level 5:
      Optimizing
      Evolution of enterprise maturity

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