Why Should Companies Invest in Business Transformation
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Why Should Companies Invest in Business Transformation

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Presentations at the Architecture & Processes Conference, Washington, DC , US April 21-23 2008

Presentations at the Architecture & Processes Conference, Washington, DC , US April 21-23 2008

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Why Should Companies Invest in Business Transformation Why Should Companies Invest in Business Transformation Presentation Transcript

  • Wolf Rivkin Chief Architect B-Wave Software Session Title: Why Should Enterprises Invest in Business Architecture Transformation?
  • Preconditions.
      • Computer Science is an exact discipline; its rules and laws are objective rather than matter of taste;
      • IT as an industry should be (and mostly has been) developed based on Computer Science;
      • IT developed some problems around year 2000 that have not been solved till now;
      • Computer Science as the scientific basis of IT existence and development must have (and actually has!) exact solutions for these problems;
      • The level of complexity of these problems make them architectural by nature and, thus, a subject of Enterprise Architecture as one of the scientific disciplines under Computer Science ;
    B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
  • Why Should Enterprises Invest in Business Architecture Transformation? B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation” Historical Excurse.
  • Reason #1: Wisdom Of the Great Ones.
    • “ CEOs declare that the biggest challenge facing the modern enterprise is ‘change’. A quick review of the history of all known disciplines that deal with complex objects (things) reveals that change starts with the engineering descriptions of the things. … There is no way to change automobiles, computers, integrated circuits, oil refineries, battleships, telephone networks, programs, enterprises or any other complex thing quickly (or safely) without starting with the descriptive representations of the things you want to change.
    • … [The problem is] having a large inventory of ‘current systems’ built out-of-context , not integrated, not supporting the enterprise, that are consuming enormous amounts of resources for ‘maintenance’ and are far too costly to replace.
    • … these issues of quality, timeliness and change are the conditions that are forcing us to face up to the issues of Enterprise Architecture.
    • … in the 21st century it (architecture) will be the determining factor, the factor that separates the winners from the losers, the successful and the failures, the acquiring from the acquired, the survivors from the others.”
    • John A. Zackman’s “Enterprise Architectures: The Issue of The Century”
    B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
  • B-Wave Software ®. All Rights Reserved © Reason #2: Size Does Matter. Businesses’ IT Classification By Size & Complexity. W. Rivkin “Why Enterprises Should Invest in Architecture Transformation” J. Zackman’s Analysis Parameters Where? What? How? Why? Who? When? Object Subject Diffe-rence # of Apps By Thru Reason to be Creates Imple-ments Time frame ROI Enterprise Meta-Artifacts Same for every IT ~1000 Architecture Metho-dology Efficiency Enterprise Architect / BM BA/SA, PA 1-5 years .5-1 year Company Meta-Entities – Artifacts Same inside a vertical Tens Analysis / Design Techno-logy Effectiveness BA,SA, ITM App Arc, Tech Arch, PM 3-12 month Same Office Data / Code / Host – Entities Different for any two ones Single digits Develop-ment / Implementation Tools Utility PM Developer 1-3 month Same
  • B-Wave Software ®. All Rights Reserved ©
    • The Cause:
      • 20+ years of ‘out of context’ Application Development;
        • Applications as isolated silos of functionality and data processing;
        • Resulted in functional and data redundancy
      • Overuse of APIs for point-to-point Application Integration;
        • With application number growth, the initial positive effect – functionality reuse – quickly disappears as it leads to practically unchangeable ‘spaghetti’ architectures;
    • The Result:
      • Enterprise Architecture has become a set of isolated silos of chaotically integrated Applications (‘spaghetti’, ‘hairball’, ‘rat’s nest’);
    • The Business Effect :
      • High Total Cost of Ownership of IT;
      • Low Business Agility;
      • High Exit Cost from Legacy Applications.
    Reason #3: IT’s The Evolution, Stupid! W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
  • Analyze This: What is Enterprise? B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
    • Main Characteristics :
      • A globally or nationally distributed complex business model;
      • Hundreds to thousand of ‘out-of-context’ created and integrated applications;
      • A Level of complexity requiring the Architecture level of description to ensure the effective and efficient functioning of the whole Enterprise;
      • Entities necessary to define:
        • Architecture - Meta-Artifacts , which are the same for all Enterprises ;
        • Analysis & Design - Artifacts (meta-data/code /host), which are the same for each industry vertical ;
        • Development/Implementation – Low-level Entities : data, code and host, which are different for different organizations.
    • Definition:
      • An enterprise is a conglomerate of organizations united by a common business model, with IT architecture characterized by a large amount (hundreds to thousand) of nationally or globally distributed applications.
    • Conclusion:
      • It is possible to create a Reference Enterprise Architecture Framework, formulated in meta-artifact terms only, that is valid for any Enterprise ;
  • Analyze This: What is NOT an Architecture Framework? B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation” Construction Analogy – Legacy, ‘Accidental’ Architecture – Rio’s Favelas.
  • Analyze This: What IS Architecture Framework? B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation” Construction Analogy – Top-to Bottom Architecture Constructional Meta-Artifacts Constructional Meta-Artifacts The highest-level entities defined. The highest-level entities defined. The design entities are hidden
  • Analyze This: What is NOT an Enterprise Architecture Framework B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation” Legacy, ‘Accidental’ Architecture.
  • Analyze That: What IS an Enterprise Architecture Framework?
    • Constructional Architecture:
      • The concept describing business and technological artifacts are to be implemented to create the desired construction.
    • Enterprise Architecture:
      • The concept describing business and technological artifacts, which are being and will be implemented by the Enterprise to achieve its business goals.
      • Main meta-artifacts, common for every Enterprise:
        • Enterprise Business Processes;
        • Enterprise Business Services;
        • Enterprise Data Dictionary (SVT, MDM, CDI, etc.);
        • Enterprise Service Bus.
        • Enterprise Technology Standards.
    • Enterprise Architecture Framework (EAF):
      • A set of documents defining the roadmap of EA Transformation from the Initial Architectural State through Intermediate ones to the Desired State.
    B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
  • ESOA Static Layers Model
    • Agenda:
      • The Presentation Layer responsible for all requests and replies to and from the enterprise;
      • The Service Requestors (BP) Layer responsible for request/reply exchanges with ESB
      • The Enterprise Service Bus Layer representing a common informational environment supporting uncoupled, guaranteed, standard-based information exchange between service requestors and producers;
      • The Service Producers Layer – the former System Domain, comprised of business-related service clusters, exchanging messages with other ESOA participants through ESB.
      • The Data Service Layer – the part of the Data Layer usually responsible for providing a Single View of Truth – the unified view of the Enterprise’s dispersed data;
      • The Data Storage Layer represents the dispersed Enterprise Data Storages, including public and internal RDBMS, Data Warehouses, tapes, files, etc.
    Computer Science Response – Enterprise Service Orchestration Architecture B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
  • Enterprise Architecture Top-to-Bottom Approach – ‘ Elegant Enterprise®’. B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation” End user Agent Manager / Admin B2B Partner Channels IVR Web XML Gateway B2B gateway VXML/ HTTPS ESB Client / Server XML/ HTTPS Actors Business Services Domains Data Services Domains Main DB Data Warehouse Public DB ETL BI, ETL ERP CRM Batch Business Processes Business Rules Elegant Enterprise IT Architecture Framework Intellectual Property Domains Reusable Artifacts Repository Business Process Subflows Business Rules Business Services Enterprise Data Signatures
  • How ESOA Fixes The Reasons of IT Problems B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
    • The Cause:
      • Enterprise Architecture provides context for Software Development;
      • No more Application Development, only Business Services (BS) One;
        • BS are uncoupled via ESB, thus are easy reusable and replaceable;
        • First phase of functional and data reuse leads to the second one – of their consolidation
      • No Point-to-Point integration around points of change ;
        • With services number growth, their uncoupled orchestration prevents any ‘ripple effect’, and enables easy scalable solutions.
    • The Result:
      • Enterprise Architecture has become a backbone of the Enterprise Business Architecture Transformation to the efficient Just-In-Time ‘Elegant Enterprise’
    • The Business Effect :
      • Low Total Cost of Ownership of IT;
      • High Business Agility;
      • Low Exit Cost from Legacy Applications.
  • How ESOA Provides This Business Effect?
      • Low Business Agility:
        • ESOA makes it possible to close the gap between Business and IT by creating a common language like basic Business Process Flows (BPF) a.k.a. UML Activity Diagrams;
        • It makes it possible to run executable BPFs (a.k.a.. Use-case scenarios) directly, making SDLC shorter and more visible, changeable and maintainable;
        • It limits the impact of a change in service to the service itself;
        • It makes all architecture components easily connectable, changeable, reusable and replaceable;
        • All of the above-mentioned qualities dramatically decrease projects’ time-to-market, thus supporting higher business agility.
      • High Total Cost of Ownership (TCO) of IT:
        • The much shorter SDLC, the absence of the ‘ripple effect’, and the wide availability of easily implementable reusable artifacts significantly decrease the cost of projects;
        • The architecture allows for the ultimate consolidation of functionality, data processing and storage, thus decreasing the size of IT and making it less expensive;
        • The adoption of any new technology in the future becomes much easier and less expensive, for it comes as the introduction of another replaceable service, easily connectable to the ESB through a corresponding adapter ;
      • High Cost of Exit from Legacy Technologies :
        • All of the above considerations show how simple and inexpensive the process-by-process, service-by-service migration from a future legacy technology to a new , currently unknown one becomes.
    B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
  • Introducing ESOA- based Enterprise Service Orchestration Architecture Framework(ESOAF™) B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
    • The ESOAF is a Reference framework that is built completely on the meta-artifact level in order to be applicable to any IT-based Enterprise ;
    • Main characteristics of ESOAF:
      • A gradual , incremental approach to the Enterprise Architecture Transformation from an application-centric Initial State – Legacy Enterprise to a completely ESOA based Desired State – Elegant One;
      • Completely uncoupled through ESB service requestors and service providers;
      • Maximizes component reuse , and minimizes the problems associated with component enhancement & replacement ;
      • Facilitates exit from current & future legacy systems;
      • Closes the Business-IT gap by implementing Business Process Flows;
      • Analysis, Design, and Technology Agnostic ;
      • Encourages and facilitates creation and reuse of the Enterprise Reusable Artifacts ;
      • The expectation of ROI is ~30% in one year;
    How to Implement it?
  • Business Process Development Life Cycle (BPDLC) for Elegant Enterprise®. B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation” Business Process Development Business Processes Business Plan x Execution Feedback Business Strategy Real-Time Discover Design Deploy Analyze Optimize Direct Develop Execute Formulate Business Management Business Analysts Business Modelers, Architects Developers Business Analysts
  • ESOAF™ As a Transformation Roadmap. B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation” Who is doing What , When , Where and Why . Initial State Pilot Project 1-st State ---------------- n-th State 5 years 4 years 1 year Start .5 year Desired State Zackman -like State Matrix Spewak -like Time Axis RUP -like ESOA Adoption Phases Inception Elaboration Construction Transition ESOA Layers Axis BPDLCSteps Axis Redundancy Reduction Business Process Enhancement Technology Adoption ESOA as BAU Team-based Activities / Artifacts
  • What if We Forget About All This and Just Live Happily Ever After? B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation” Prognosis for ‘World Business Lines’ of Enterprises with Different Archit ectures $TCO S paghetti Architecture Release #1 Release #2 Release #3 Release #4 ESOA Transformation Complexity (Application #) Tens Apps. (Company ) Hundreds Apps, (Enterprise) The Point of Suffocating Enterprise Threshold Release #5 Release #2 Transformed Enterprise $ROI POC Release #3 Release #4 1 year Release #6 Release #7 Release #8 2 years 2 years 3 years 3 years 4 years 4 years PP 5 years 5 years Start of ESOA Transformation Elegant Enterprise Legacy Enterprise
  • Question: Does IT Matter? Answer: IT Depends.
    • How IT is : often considered as pure cost. In these cases IT does not matter;
    • How IT should be : differentiated by Business and Intellectual/Competitive/Value Property (ICVP) value into:
      • Commodities - not ICVP, might be outsourced, do not matter :
        • Sharable Data;
        • Almost all infrastructure (Managed Services);
        • Trivial technical and business services (SAAS);
        • Trivial BP – might be outsourced (BPO)
      • Revenue generating services :
        • ICVP BP – should not be outsourced;
        • ICVP Business Services– should not be outsourced .
      • Valuable internal services/data – should not be outsourced - matter :
        • Non-sharable data;
        • ESB;
        • Security.
    • The super-task of ESOAF™ - making IT matter again .
    B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
  • Postcondition-Executive Summary. (Lessons Learned)
    • IT as an industry has over time developed immanent problems related to legacy, application-based development and point-to-point integration in general rather than particular technology or tools;
    • These Architecture-level problems are common for every IT-based Legacy Enterprise;
    • The enterprise Architecture of a Legacy Enterprise has become so rigid that it makes both IT maintenance and/or Business/IT change costly and time-consuming;
    • Attempts to reduce these costs by simple cheap labor outsourcing of existing processes without any qualitative change threaten the competitiveness and the very survival of the Enterprise
    • Computer Science as an underlying methodology base for IT has come up with a solution that requires architectural rather than technological innovation. Moreover, only this kind of innovation makes future technological improvements effective and efficient;
    • This solution is based on the concepts of BPM, ESB and S O A, however the fruitful implementation of those concepts is possible only under an Enterprise-wide complete and comprehensive Architecture Framework (EAF); isolated projects of implementation of any of them independently are drastically less effective and prone to failure;
    • The ESOAF™, introduced in this presentation is the only complete, cohesive, comprehensive and proven framework known to the author allowing Enterprises to safely and surely migrate from Legacy to Elegant Enterprise.
    B-Wave Software ®. All Rights Reserved © W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”
  • Thank You!
    • Wolf Rivkin
    • Chief Architect
    • B-Wave Software
    • Contact Information:
    • Tel: 404-409-6872
    • Email: [email_address]
    • Web: http://www.b-wavesoft.com .
    W. Rivkin “Why Enterprises Should Invest in Architecture Transformation”