Finding Value In Enterprise Architecture

Finding the Value in Enterprise Architecture Peter Evans-Greenwood 2008-04-24 In collaboration with

Who am I?

Chief Technology Officer (CTO) of Capgemini Australia

Main interests:

Technology strategy

Massively distributed systems

Biologically inspired approaches to software

Long history of working at the interface between research technology and business

traditional back-office covering finance, billing, logistics, B2B, B2C and CRM applications for local and global companies;

turn-key solutions including MUARC's advanced driving simulator and air traffic control;

innovative B2B and voice portal solutions such as OnStar.

The business value of Enterprise Architecture ?

The business value of Enterprise Architecture 0

The problem Technology Cycle Business Cycle Intensifying Competition Static IT cycle There is an growing disconnection between the business & IT cycles

Our focus has moved Process & Information Integration Platform Application Services UI UI UI Field Operations Back Office Partners Platform Application Services UI UI UI Platforms Application Services UI UI UI

Partner Integration

Sales and operational data

Responsibility for end-to-end business processes

Facilities and other assets

Software as a Service &

Mash-ups

Enable end-to-end processes

Lower error rates

Increased throughput

Lower user workload

No more swivel-chair integration

Provides the right data, at the right time, presented to enable users to make better decisions

Mobility

Extending the reach of our back office

Providing field workers with joined-up IT support

Sensor Networks

Leverage technologies such as RFID and smart appliances to instrument operations

… as technology has changed A standards development timeline U.S. software sales in billions of dollars Source: INPUT SOAP 1.0 WS-I founded SAP WS J2ME Web Services ESB Apache SOAP MS SOAP IBM Web Services Apache Axis JAX-RPC Oracle WS Sun WS WS (J2EE & .NET) WS-* starts exploding WS-* OASIS SOA Reference Model OASIS SOA Blueprints SAP Netweaver Oracle Fusion JAX-WS MS Indigo BPEL BizTalk 2004 Oracle BPEL WBI-SF WS-Policy and WS-Security 2004 2005 2003 2002 2001 2000 1999 The Past Yesterday Now

We need to support multiple technology cycles Personalize Solutions focused on supporting specific roles Organise Using services to achieve cohesive executions Comply Enterprise transactions and data in ERP and legacy applications Innovation Business as usual Technology Cycle Business Cycle Years Weeks Months Deliver Mixing IT in the right amount to align with the business cycle

The future requires a more organic approach

A long term plan

Work with the business landscape

Create stable infrastructure

Manage the process

Appoint a zoning board

Make the most of what you have

City planners try to preserve viable old assets, to replace outmoded assets, and to add new assets—all in the context of an infrastructure linking them coherently. IT developers have a good deal to learn from that approach. The Paris Guide to IT Architecture Jürgen Laartz, Ernst Sonderegger, and Johan Vinckie, McKinsey Quarterly, 2000, Number 3 Today, our greatest challenge is effectively combining new and existing assets to cost effectively deliver business capabilities

Electricity distribution since Samuel Insull We generate electrons They get pumped down a wire Devices consume them

Fast forward to the present Population A growing population that is becoming increasingly urban Energy Increasing energy demands to feed our modern lifestyle Water Global warming is changing where the water falls There is less water to go around We’re struggling to keep up with energy demands Water needs energy Energy needs water We need to use less!

Demand shaping via AMR Smart appliances let us shape demand Smart appliances let us shape demand Smart appliances let us shape demand PowerCorp balances supply and demand In home panels providing (near) real time visibility into usage Two-way AMR lets us read the meter, and send control signals Smart appliances let us shape demand

Demand shaping via AMR Smart appliances let us shape demand Smart appliances let us shape demand Smart appliances let us shape demand PowerCorp balances supply and demand In home panels providing (near) real time visibility into usage Two-way AMR lets us read the meter, and send control signals Smart appliances let us shape demand There are problems…

How do we scale centralised decision making?

What is the impact of an open energy market?

Where does micro generation and/or CHAP fit?

Electricity distribution tomorrow A network, rather than a chain

Electricity distribution tomorrow Multiple manufactures A network, rather than a chain Consumers exporting excess Micro Generation Micro Generation Multiple manufactures A more diverse range of technologies No common owner !

Moving to supply driven Match supply & demand Price signal Energy Market

Moving to supply driven Match supply & demand Price signal Smart meters let us leverage a real time supply signal in the home Control signals let us turn of unwanted devices We make a local decision to optimise our own environment We can factor micro generation into the decision Energy Market

Moving to supply driven Match supply & demand Price signal Smart meters let us leverage a real time supply signal in the home Control signals let us turn of unwanted devices We make a local decision to optimise our own environment We can factor micro generation into the decision Energy Market There are problems…

How do we manage configuration?

How do we optimise individual devices?

How does import/export work?

An private internal market Price signal Devolve decisions to optimise power usage to the appliances (agents) Create a market to support price location Explicit support for export/import P2P auto-configuration Multi-agent market-based resource balancing Energy Market Internal Energy Market

The big picture

What happens when we have

demand driven homes

demand driven regions

demand driven networks

Local generation, sharing our excess Each participant generates, imports and exports to optimise their usage

How do we manage this process?

Bottom up action

Reacting to changes in the environment

No conscious plan

Solutions created to meet pressing needs

Only addressing needs as understood that time

Top-down planning

Days spent filling Zachman cells

Major transformation initiatives

Left behind by people on the ground who need to get the job done

Hard to justify the investment

Reactive Omniscient Both result in inflexible systems-of-systems

People use a more pragmatic planning process

Establish our goal

Understand where we are on the landscape

Consider the paths available to us

Choose one and head to the junction

Return to step 1

We can do something similar in IT

Optimise new product introduction

Reduce costs

Improve process efficiency

Manual processes

No support for product management

Multiple, redundant, applications

Capture business in service architecture

Identify scenarios by determining miss-match between current IT and service architecture

Make a tactical decision on which scenario to deliver, and execute

Return to 1 or 2

Business Architecture IT Landscape

We can do this in collaboration with the business Big scary diagram A strategy map Business Services Architecture Facilitated Event Heat Map Current State Scenarios Actions!

Case study: IT strategy for finance The problem