Else, S., Hall, W.P. 2012. Enterprise Knowledge Architecture for Community Action

1. © 2012 ESAIIEnterprise Knowledge Architecturefor Community ActionSteve Else (PhD, PMP)stevenelse@eaprincipals.comChairman at ESAII (Enterprise & Solution Architecture Institute International), Alexandria, VACEO/Chief Architect, EA Principals, Inc., Alexandria, VA, USA – http://eaprincipals.comCEO of the Center for Public-Private Enterprise – http://cppe.orgWilliam P. Hall (PhD)william-hall@bigpond.comPrincipal, EA PrincipalsSenior Fellow, Melbourne School of Engineering, University of MelbournePresident, Kororoit Institute Proponents and Supporters Association, Ltd. - http://kororoit.orgPresentation for Kororoit Institute InternationalSymposium and Workshop - Living Spaces for Change:Socio-technical knowledge of cities and regions. 29February – 2 March 2012, North Melbourne, Australia

2. © 2012 ESAII© 2012 ESAII – Slide 2Presentation deals with two issuesCommon pool resources face destruction/extinction = limited resources that can be extracted from a commonsby anyone without governance we face “the tragedy of the commons”We propose that the discipline of EnterpriseSolutions Architecture offers a conceptualframework and set of tools that can be used todesign systems for governing the commons Air Water Land Mineral resources Living space etc.

3. © 2012 ESAII© 2012 ESAII – Slide 3The crisis we face We face looming crises threatening our well-being that relate tothe consumption of scarce common pool resources Depletion of non-renewable natural resources Unsustainable use of fertile soil and fresh water Human induced global warming and climate change Common pool resources are those to which more than oneindividual has access, and where each person’s consumptionreduces availability of the resource to others. These crises are all consequences of simple economic phenomena Too many people on a small planet want too much We must change the way we exploit environmental resources If we don’t we face the possibly complete destruction ofecosystems we depend on for survival Existing governments seem to be ineffective Economic science and enterprise knowledge architecture mayprovide some solutions

4. © 2012 ESAII© 2012 ESAII – Slide 4The core of the problem is simple “The tragedy of the commons”Garrett Hardin 1968. The tragedy of the commons. Science Vol. 162, No 3859, pp. 1243-1248 Sets out the consequences of an uncompromising economic logic governingthe harvesting of valuable but limited resources from a commons• Unfettered individuals make a net profit of +1 for every unit of resourcethey extract/harvest and use• The future loss due to the removal of that unit is shared with all otherindividuals extracting the resource for a net loss of -1/n• It is always to the net economic advantage of every individual to continueextracting the resource until it is totally consumed• Situation grows worse if the resource’s unit value rises with scarcity• Any individual refraining from extraction only benefits those who thus havemore resource to extract Only through some form of higher level control or governance(e.g., social or despotic) over the scarce resource can itsextraction be limited to some socially beneficial level

5. Successfully governing the environment welive in is difficult!Government is the exercise of political authority over theactions, affairs, etc, of a political unit, people, etc, as well asthe performance of certain functions for this unit or body;the action of governing; political rule and administration.In other words, government is the application ofsocio/political constraints over individual action by somehigher level entity above the individual self.

6. © 2012 ESAII© 2012 ESAII – Slide 6GovernmentcentralizedmanagementCommunity self-governance andself-managementCo-managementInformingConsultingCooperatingCommunicatingExchanging informationAdvisingActing (jointly, separately)PartneringControllingCoordinatingGovernment-basedmanagementCommunity-basedmanagementCommunity involvementGovernmentcentralizedmanagementCommunity self-governance andself-managementCo-managementInformingConsultingCooperatingCommunicatingExchanging informationAdvisingActing (jointly, separately)PartneringControllingCoordinatingGovernment-basedmanagementCommunity-basedmanagementCommunity involvementGovernment powers and resources vs localknowledgeTrade offs local knowledge vsscientific knowledge timely decision vsadequate knowledge power to act vs will toact

7. © 2012 ESAII© 2012 ESAII – Slide 7 Elinor Ostrom (2009 Nobel Prize in Economic Science) for heranalysis of economic governance, especially the commons Understanding the different kinds of markets Types of goods Management economics Showed resources can be managed successfully by involving people whouse them in the governance processGoverning the commonsImpact of exploitation on depletion of resourceDifficultyto excludepotentialexploitersToll Goods► theatre► private clubs► daycare centresPrivate Goods► food► clothing► automobileLOWPublic Goods► peaceful & secure community► national defense► knowledge► fire protection► weather forecastsCommon Pool Resources► groundwater basins► lakes► fisheries► forests► air qualityHIGHLOWHIGHImpact of exploitation on depletion of resourceDifficultyto excludepotentialexploitersToll Goods► theatre► private clubs► daycare centresPrivate Goods► food► clothing► automobileLOWPublic Goods► peaceful & secure community► national defense► knowledge► fire protection► weather forecastsCommon Pool Resources► groundwater basins► lakes► fisheries► forests► air qualityHIGHLOWHIGH

8. © 2012 ESAII© 2012 ESAII – Slide 8Basic forms of resource governance Autocracy/despotism (Wikipedia): supreme political power to direct all state activities is concentrated in the handsof one person (autocracy) or group (despotism), whose decisions are subject toneither external legal restraints nor regularized mechanisms of popular control Gargantuan (R.C. Wood via V. Ostrom): formation of a single metropolitan government over all Multi-level governance (European Union via Wikipedia): many interacting authority structures work at various hierarchical levels in theemergent global and local economy Polycentric (V Ostrom et al. 1961): traditional pattern of government in a metropolitan areawith its multiplicity of political jurisdictions (E Ostrom 2009): many centers of decision making that are formally independentof each other. Whether they actually function independently, or insteadconstitute an interdependent system of relations, is an empirical question inparticular cases Community-based resource management (Berkes 2006) local resource usage governed by local community Co-management (Berkes 2009): sharing of power and responsibility between the government and local resourceusers

9. © 2012 ESAII© 2012 ESAII – Slide 9Governance = making and imposing decisionson communities with costs/benefits Herbert A. Simon (1978) Nobel Prize in Economic Science forhis pioneering research into the decision-making process withineconomic organizations and the limits to rationality Perfect decisions only possible with perfect knowledge andunlimited time to consider alternatives Real world requires “satisficing” – i.e., best guess given the availableknowledge and time, optimizing time, knowledge, and urgency Simon’s other work explored the architecture of hierarchicallycomplex systems Effective governance depends on Availability of appropriate knowledge Sufficient time for thinking before the next problem arises Capabilities to act Availability of resources to support action

10. © 2012 ESAII© 2012 ESAII – Slide 10Ostrom’s model for environmental governanceENVIRONMENTAL CONTINGENCIES & CONSTRAINTS IMPACT OFREALIZEDOUTCOMESRULESRESPOND TOCONSTRAINTS Successful governance structures based on sets of rules regulating exploiters toensure optimum management/exploitation of resource Rules respond to constraints Impacts are a consequences on realized outcomes of the application of the rules

11. © 2012 ESAII© 2012 ESAII – Slide 11Ostrom’s resource governance modelConceptual changes: common property resourcecommon pool resourcescommon property regimesrecognized 5 property types• access, withdrawal, management, exclusion & alienationProperty rights systems for different resources mix all fiveConcluded that successful systems followed certain practices (i.e.,design principles) reflecting knowledge of particular environmentsClear user & resource boundariesCongruence between benefits & costsRegular monitoring of users & resource conditionsGraduated sanctionsConflict resolution mechanismsMinimal recognition of rights by governmentNested enterprisesHoped, but failed, to find optimal set of rules used by robust &successful systems of governance

12. Can we design better systems togovern our vital resources?Introducing the discipline of enterprisearchitecture

13. © 2012 ESAII© 2012 ESAII – Slide 13New tools extending human cognitionintroduce radical new capabilities“Instant” observation/communication/decision/action possibleEvery smart phone in a hand is an intelligent sensing node alsocapable of acting (via the hand)• visual (photo & video sharing)• auditory (Skype, etc.)• spatial (geotagging)• textual (twitter, email, etc.)Polling & voting (e.g., SurveyMonkey)Acting (e.g., Mechanical Turk)Crowd sourcing tools for assembling knowledgewikidatabasesUnlimited access to knowledge resourcescloud computingGoogle Scholar / Google Translate• > 50% world knowledge available free-on-line via author archiving• > 95% available via research library subscriptions– University of Melbourne accesses 105365 eJournals– Scholar offers direct access from search result to university subscriptionEtc. – beyond imagining

14. © 2012 ESAII© 2012 ESAII – Slide 14What Is an Enterprise? A coherently definable organized entity that may be: Comprised of multiple interacting entities Unified by a common system of governance Working towards a common goal “A complex, adaptive, evolving system” (Mathet Consulting, Inc.) Existing in complex & changing environments (physical, economic, technological, and legal) constantly receives, uses, transforms, produces and distributes products and services thathave value to itself and its customers exhibits characteristics of hierarchical complexity, reactivity, adaptability, emergence,downward and upward causation, self-organization, non-linear chaotic responses An organized, notionally bounded socio-technical system, addressing its internal /external imperatives for business / survival (i.e., an “organic” entity), comprised of People (participants in the organization from time to time) Processes (automated, documented, tacit routines, etc.) Infrastructure (Web, ICT, physical plant, etc.) Organizational knowledge (i.e., contributing to organizationalstructure/success)• Knowledge as a deliverable product (e.g., technical documentation)• Knowledge about and embodied in deliverable products• Knowledge about and embodied in organizational processes andinfrastructure• Members’ personal knowledge relating to their organizational rolesOrganizational knowledgeLeave one of the legsoff, and the stool willfall over

15. © 2012 ESAII© 2012 ESAII – Slide 15Enterprises Exist in ContextsNo enterprise or subsidiary component can beconsidered in isolation from its existential contexts What are its imperatives for continued existence?• to maintain survival and wellbeing• to maintain resource inputs necessary to survival• to produce and distribute goods necessary to survival• to survive environmental changes• to minimize risk• to maintain future wellbeing Organizational systems satisfying imperatives must trackcontinually changing contexts with observations, decisions andactionsBeware of empty rhetoric and mismatches with realimperatives

16. © 2012 ESAII© 2012 ESAII – Slide 16Administrative/Decision Support Systems Making and implementing well-informed decisions responding toimperatives is the essence of enterprise survival and success John Boyd’s OODA Loop process framework for adaptive decisionmaking Osinga PB. 2007. Science, Strategy and War: the Strategic Theory of JohnBoyd, Routledge [also available free on line - http://tinyurl.com/26eqduv]AOOBSERVE(Results of Test)OBSERVATIONPARADIGMEXTERNALINFORMATIONCHANGINGCIRCUMSTANCESUNFOLDINGENVIRONMENTALRESULTS OFACTIONSORIENTDDECIDE(Hypothesis)OCULTUREPARADIGMSPROCESSESDNAGENETICHERITAGEMEMORY OF HISTORYINPUT ANALYSISSYNTHESISACT(Test)GUIDANCE AND CONTROLPARADIGMUNFOLDING INTERACTIONWITH EXTERNALENVIRONMENT

17. © 2012 ESAII© 2012 ESAII – Slide 17What is Enterprise Architecture? Adapted from “The art and science of designing and managing theconstruction and implementation of buildings and other physicalstructures” Rather than architecting physical structures enterprisearchitecture is concerned with structures of dynamic systemssolving organizational problems Science• The application of scientific understandings of complex dynamic systems toarchitecting the structures of business systems and organizations Process• To understand, specify and agree client/end user requirements• Architectural design usually must address both feasibility and cost for thebuilder, as well as function and usability for the client• Construction and implementation usually involves specialized skills andtrades beyond those of the architect Practice• To offer or render ethical professional services in connection with thedesign and construction of structured systems, that are intended primarilyfor human use.

18. © 2012 ESAII© 2012 ESAII – Slide 18Where Does Enterprise Architecture Fit?For understanding organizational systemsStrategic planning at the systems level to better meetorganizational imperatives (adaptation)Re-engineering & transforming the enterprise Implementing and improving decision support systems (design &management of data, information, and knowledge resources andtechnology) Operations focus (work systems design & management) Managing changes? Monitoring results?The scope of the enterprise architecture includes thepeople, processes, information and technology of theenterprise, and their relationships to one another and tothe external environment.

19. © 2012 ESAII© 2012 ESAII – Slide 19 Framework: A structure for supporting or enclosingsomething else, especially a skeletal support used asthe basis for something being constructed.1. An external work platform; a scaffold.2. A fundamental structure, as for a written work.3. A set of assumptions, concepts, values, and practices thatconstitutes a way of viewing reality. EA Framework All of these definitions apply to the kinds of frameworks usedin EA. The value of a framework is determined by the degree towhich it provides positively useful guidance to the architect,minus the degree to which adherence to its strictures limitsthe architect’s ability to see and think about possibly biggerpictures. Frameworks may be applied at several architectural levels.What Is an EA Framework?

21. © 2012 ESAII© 2012 ESAII – Slide 21TOGAF Provides an ArchitectureDevelopment Method Phases: Preliminary• Charter & mobilization A. Architectural vision• scope, stakeholders, vision & approvals B. Business architecture• business architecture to supportagreed vision C. Information systems architecture• includes data and applicationarchitectures D. Technology architecture E. Opportunities & solutions• delivery vehicles and implementationplanning F. Migration planning• sequence of transition architectureswith implementation & migration plans G. Implementation governance H. Architecture change management Requirements management(throughout)

22. © 2012 ESAII© 2012 ESAII – Slide 22Managing the futureDefining the system(s) to be managed Identifying the problems• e.g., too many people using too few limited resources Identifying the beneficiaries• Urban and peri-urban populations Identifying the resources• The urban ecosystem’s affordances for life (common poolresources)• “Living spaces for change” Identifying the “enterprise”• Governments impacting the urban ecosystem• People living in and impacting the ecosystemDeveloping solutions Concepts, frameworks and methodologies exist Developing the political will to proceed Funding the work

23. © 2012 ESAII© 2012 ESAII – Slide 23Without effective governance of thecommons this will all be lostVisitors and residents on Bill’s 2 ha peri-urban property on the urban fringe:Occasional echidnas and kangaroos, long-time resident grebes and young kookaburraslearning to laugh. The neighbors even saw a black swan land on the pond