The document discusses the future of enterprise architecture and presents different perspectives on its role and focus. It outlines two contrasting agendas for EA - simplifying and unifying systems to align with business needs, or differentiating and integrating systems to help manage business complexity. The document also proposes a third agenda focusing on managing complexity by looking at the enterprise as part of a broader ecosystem and considering customers' economics of alignment.

1. UNICOM EA FORUMRichard Veryard September 2011Next Generation Enterprise Architecture

2. Future of EA?EA disappears as a unique function?EA moves “in total” to the business?EA remains focused on IT architecture?EA remains in IT but becomes more business focused?EA splits into multiple groups?Jeff Scott, Forrester, May 2010Dion Hinchcliffe, ZDNet, August 2009

3. Two Contrasting Agendas for EABusiness is simpleSystems are complicated and inflexibleSoftware applicationsHuman activity systemsTherefore simplify and unify the systems to align with the businessBusiness is complexSystems are complicated and inflexibleTherefore differentiate and integrate systems to help manage complexity.Simplify and UnifyDifferentiate and Integrate

4. Traditional EA doctrinesInformation EngineeringZachman Framework

5. Simplification and UnificationDuplicationInconsistencyPoor InteroperabilityFragmentationWasteRiskEconomics of scaleEconomics of scopeInteroperabilityFROMTO

6. Achieving Simplification and UnificationQuick and cheap solutions to local problemsTight project goalsStakeholders protecting established assets and arrangementsJoined-up thinkingThe “Big Picture”ClusteringIncrease CohesionDecrease CouplingTypical ChallengesEA Weaponry

7. From Small Picture …

8. … to Bigger Picture

9. Simple Interaction MatrixSource MSDN

10. Clustered MatrixSource MSDN

11. Simple Interaction Protocol (SIP) 11SIP brings a rational process to project optimizationReproducibleVerifiableOptimalSIP has a mathematical foundationSet theoryComplexity analysisEquivalence relationsSIP drives simplicityThe architecture with smallest collections of functionality that have the fewest dependencies.Simplest possible architecture that solves the problem.Roger SessionsObjectWatch

12. 12Comparing SIP to Traditional EASIPTraditional- Higher success rates.- Reduced cost.- Increased agility.- Cloud optimized.Roger SessionsObjectWatch

13. Enterprise Architecture as Strategy12?Low differentiationHigh differentiation

14. Six Views of Business

15. Business TrendsConverging Technology and systemsConverging market power – globalizationIncreasing collaborationDiversity – market fragmentation – “Long Tail”UnbundlingAsymmetric DemandConvergenceDivergenceIncreasing SpeedIncreasing ScopeIncreasing ComplexityIncreasing Reach

16. ChallengesBusiness ArchitectureTechnology ArchitectureIT AgilityBusiness AgilityTechnical System InteroperabilitySociotechnical InteroperabilityThrough-LifeValue for MoneyValue against Demand

17. Structural complexity of businessAsymmetrical demand Business as a platformCouplingenterprise as loosely coupled network of sociotechnical components and servicesEdge organizationEnterprise tempoactivities with different characteristic tempiEthical dilemmasconflicts of interest, moral hazardMulti-sided marketsdifferent stakeholder classes with complementary demandsOrganizational intelligenceViabilitycommand and controlVSM

18. Dimensions of business complexityDelivery / Interface eCommerce, Web, Call Centre, Kiosk, SMS, Product Class/ConsumerEnterprise, SME, Retail Consumer, Citizen, Intra-government2-sided marketsCommercial ChannelWholesale, Retail, Corporate, Partner, DirectBrand integration, mergers & acquisitionPricing TypeCredit, eCommerce, Cash, Direct DebitSubscription, Fixed-Price, Pay-as-you-Go, Product Delivery TechnologyManaged Service, DVD, SaaSCD, DVD, Video on Demand

19. Value of business architecture Structural complexities in any business can critically affect business performance.To manage these structural complexities, we need to think architecturallyabout the business …… which will help us to overcome the structural inhibitors to business performance.An explicit business architecture should help coordinate specific forms of congruence and requisite variety across all human activity systemsmanagement information systems (IT) management reward systems (HR)

20. Two Contrasting Agendas for EASimplify and UnifyBusiness is simpleSystems are complicated and inflexibleSoftware applicationsHuman activity systemsTherefore simplify and unify the systems to align with the businessBusiness is complexSystems are complicated and inflexibleTherefore differentiate and integrate systems to help manage complexity.Differentiate and Integrate

21. Are your enterprise models complete?

22. InformationGatheringDecision& PolicyWIGO(what is going on)Learning& DevelopmentKnowledge& MemoryOrganizational intelligence22Sense-MakingCommunication & Collaboration

23. From Data Objects to Social ObjectsDatabasesTransaction ProcessingContent ManagementSocial NetworkingSystems of RecordSystems of Engagement

24. TOGAF 9 – Holistic Enterprise ChangeWhen you make changes to the business as well as changes to the systems, you may get more than you bargained for.When you make changes to the technical systems without making changes to the human systems, you may get less than you bargained for.

25. Planned versus EmergentPlanned order (“taxis”)Directed, design-timeSpontaneous order based on self-organization (“cosmos”)Emergent, run-timePlanned ArchitectureEmergent Architecture

26. As business becomes more complex …Complicated or fragmented systemsExposes management weaknessCustomers’ economics of alignment outweigh suppliers’ economics of scale and scopeCompetitive advantageRequisite varietyCostsBenefits

27. Enterprise or Ecosystem  a third agendaLooking outside the traditional enterpriseQuestions of corporate identityIndirect demand (end customer)From Affiliation to AllianceValue for whom?ScopeThird Agenda

28. Dynamics of strategy (Kurtz & Snowden)AGENDA 3Differentiated IntegrationStrongdistributedAGENDA 2Differentiate and IntegrateWeakdistributedAGENDA 1Simplify and UnifyStrong centralWeak centralSource: “The new dynamics of strategy: Sense-making in a complex and complicated World”. Kurtz and Snowden. IBM Systems Journal Vol 42, No 3 2003

29. As business becomes more complex …Complicated or fragmented systemsExposes management weaknessCustomers’ economics of alignment outweigh suppliers’ economics of scale and scopeCompetitive advantageRequisite varietyCostsBenefits

30. Some alternative lenses for viewing structural complexityViable Systems Method (Stafford Beer)I-Space (Max Boisot)Pace Layering (Frank Duffy, Stewart Brand)The Nature of Order (Alexander, Salingaros)Asymmetric Design (Philip Boxer, Bernie Cohen)Organizational IntelligenceAsymmetric Leadership Structural ComplexityManagement Capability

31. HealthcareSee presentation by Philip Boxer

32. Collaborative Composition in the Insurance Value ChainOrchestrationCompositionContext of UseSolution ProvidersPlatform Providers123456ServerPlatformWeb Servicesand MessagingBusinessServicesBack OfficeFront OfficeLife of CustomerService PathwaysReferral Pathwaybrokerend userLOB FeaturesEnd User ExperiencesupplysideCollaborativeCompositionAsymmetricDemandSource: Veryard & Boxer 2005

33. ConclusionsBroad range of complex practical problemsEmerging methods for reasoning about differentiation and integration.New agenda for enterprise architectureNot suppressing complexity but managing complexity

34. Future EventsBusiness Architecture BootcampNovember 22-23Organizational Intelligence WorkshopNovember 24RVsoapbox.BlogSpot.comFuture EventsOther Material and Links