Architecture Series 5-1 EA As Corporate Strategy Introduction

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A short introduction to EA concept, foundation of a solid EA program, and common EA frameworks

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  • Enterprise Architecture as Corporate Strategy - Introduction
  • Architecture Series 5-1 EA As Corporate Strategy Introduction

    1. 1. Architecture Series 5 - 1 Enterprise Architecture as Corporate Strategy Introduction <ul><li>Frankie Hsiang – Enterprise Technologist </li></ul><ul><li>[email_address] </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    2. 2. Audience & Objectives Enterprise Architecture as Corporate Strategy - Introduction <ul><li>Executives, business & IT managers, and architects who need a short introduction to EA concept, foundation of a solid EA program, and common EA frameworks </li></ul>
    3. 3. What is Enterprise Architecture? <ul><li>Aligning strategic business operations with IT investment to produce optimized business results and maintain high quality, yet cost effective IT operations. </li></ul><ul><li>Common EA frameworks: Zachman, TOGAF, FEA, DoDAF, OMG -MDA, … </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    4. 4. Relationship to other IT disciplines Enterprise Architecture as Corporate Strategy - Introduction
    5. 5. Solid EA Foundation Enterprise Architecture as Corporate Strategy - Introduction Business operating model IT engagement & governance model IT architecture definition, & optimization
    6. 6. Business Operating Model Enterprise Architecture as Corporate Strategy - Introduction <ul><li>Coordination </li></ul><ul><li>Shared customers, products or suppliers </li></ul><ul><li>Impact on other business unit transactions </li></ul><ul><li>Operationally unique business units or functions </li></ul><ul><li>Autonomous business management </li></ul><ul><li>Business unit control over business process design </li></ul><ul><li>Shared customers/ suppliers/ product data </li></ul><ul><li>Consensus processes for designing IT infrastructure services; IT application decisions made in business unit </li></ul><ul><li>Diversification </li></ul><ul><li>Few, if any, shared customers, or suppliers </li></ul><ul><li>Independent transactions </li></ul><ul><li>Operationally unique business units </li></ul><ul><li>Autonomous business management </li></ul><ul><li>Business unit control over business process design </li></ul><ul><li>Few data standards across business units </li></ul><ul><li>Most IT decisions made within business units </li></ul><ul><li>Replication </li></ul><ul><li>Few, if any, shared customers </li></ul><ul><li>Independent transactions aggregated at a high level </li></ul><ul><li>Operationally similar business units </li></ul><ul><li>Autonomous business unit leaders with limited discretion over processes </li></ul><ul><li>Centralized (or federal) control over business process design </li></ul><ul><li>Standardized data definitions but data locally owned with some aggregation at corporate </li></ul><ul><li>Centrally mandated IT services </li></ul><ul><li>Unification </li></ul><ul><li>Customers, and suppliers may be local or global </li></ul><ul><li>Globally integrated business processes often with support of enterprise systems </li></ul><ul><li>Business units with similar or overlapping functions </li></ul><ul><li>Centralized management often applying functional/ process/ business unit matrices </li></ul><ul><li>High level process owners design standardized processes </li></ul><ul><li>Centrally mandated databases </li></ul><ul><li>IT decisions made centrally </li></ul>Business Process Standardization Business Process Integration High Low High Low See ref. #1 Merrill Lynch Global Private Client DuPont, GE, Citicorp, Johnson & Johnson McDonald’s Dow Chemical, commodities
    7. 7. Business Operating Model <ul><li>A structure for a company to execute business vision, and strategy </li></ul><ul><li>Different industry and corporation has different level of integration and standardization needs. </li></ul><ul><li>Deploying different operating models at different organizational level to meet critical business needs </li></ul><ul><li>Business operating model has great impact to IT engagement & governance model and IT architecture definition </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    8. 8. Pendulum Phenomenon of IT Mgmt Enterprise Architecture as Corporate Strategy - Introduction Centralized Decentralized 3 – 5 years one way <ul><li>Costs </li></ul><ul><li>Not meeting corporate goals </li></ul><ul><li>Millions of dollars wasted </li></ul><ul><li>Unhappy business users </li></ul><ul><li>Low moral at IT department </li></ul>Symptom of misalignment of business operating model and Enterprise Architecture
    9. 9. IT Engagement & Governance Model <ul><li>Integrated Business and IT Executives Steering Committee: define business operating model, provide executive level guidance and set business priority </li></ul><ul><li>Integrated Business and IT PMO with standardized SDLC including phase-gate review practice </li></ul><ul><li>Architecture Team: produce architecture principles, detailed architecture guidance, architecture review process, architecture artifacts, & as reviewers in ARB </li></ul><ul><li>Integrate EA as part of annual budget process: OMB – CPIC, Resource Allocation Committee </li></ul><ul><li>Integrate EA as part of SDLC process in initiation and analysis - elaboration phase </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    10. 10. IT Architecture Definition & Optimization <ul><li>Driven by business operations, includes documented current state, to-be state, and a long term roadmap which maps steps transiting from current to to-be on a yearly basis </li></ul><ul><li>4 layers of architecture: business, information, application, & technology </li></ul><ul><li>Captures core business functions, processes, activities, data, key users, and why they are important. </li></ul><ul><li>Clear linkage to strategic business functions and manage by IT governance model. </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    11. 11. SPA – Good Software Engineering <ul><li>S eparate of Concerns – Layered, and componentized architecture definitions. Zachman 6 perspectives, FEA 3 levels in 5 reference models, TOGAF 4 domains, … </li></ul><ul><li>P atterns driven system design, integration and communication consistency </li></ul><ul><li>A rchitecture Centric solution development </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    12. 12. EA Program Execution Enterprise Architecture as Corporate Strategy - Introduction Select EA methodology & assess progress Gain C senior executives support Business operating model IT engagement & governance model IT architecture definition, & optimization EA methodology adoption Guidance, compliance & control Culture change
    13. 13. EA Program & SOA Strategy <ul><li>EA business architecture supports SOA business functions, processes, and activities definition </li></ul><ul><li>EA information architecture supports SOA business vocabulary definition, & data stewardship </li></ul><ul><li>EA application & technology architecture supports SOA implementation and technology platforms management. </li></ul><ul><li>EA governance process supports SOA services governance </li></ul><ul><li>EA roadmap implements SOA one project at a time. </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    14. 14. SOA Implementation Strategy <ul><li>Captures core business functions, processes, activities, data, key users, and why they are important. </li></ul><ul><li>Define common business object model which contains information to drive the business process flow. </li></ul><ul><li>Produce business driven roadmap and IT architecture </li></ul><ul><li>Use roadmap and architecture to guide implementation </li></ul><ul><li>Select SOA platform and utilize SOA platform functions to implement and manage services. </li></ul><ul><li>Implement enterprise SOA one project at a time . </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    15. 15. Common Business Object Model <ul><li>A model uses XML/XSD to define complete and detailed LOB business entities down to individual attribute level and the exact business relationship among those business entities – build incrementally. </li></ul><ul><li>The core business objects (vocabulary) for all systems information exchange and integration. </li></ul><ul><li>Helps to reduce the number of data transformation among data producers and consumers. </li></ul><ul><li>Adopt industry standard if available. SWIFT – ISO 15022, FIX-FIXML, XBRL, MISMO, … </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    16. 16. Stages of Architecture Maturity <ul><li>Business Silos, Standard Technology, Optimized Core, Business Modularity from ref. #1 </li></ul><ul><li>OMB FEA Assessment Framework: 1 Initial, 2 Baseline, 3 Target, 4 Integrated, 5 Optimized; 14 criteria, grouped into 3 capabilities: Completion, Use and Results from ref. #4 </li></ul><ul><li>DoC IT ACMM - 6 levels (0-5) in 9 categories : none, initial, under development, defined development, managed, measured from TOGAF, ref # 6 </li></ul><ul><li>Software Engineering Institute (SEI) at Carnegie Mellon University - SW-CMM - 1 initial, 2 repeatable [managed], 3 defined, 4 quantitatively managed, 5 optimizing </li></ul><ul><li>Each level of maturity has its own strength and weakness. Different maturity level needs a different strategy to bring organization to next level of maturity. </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    17. 17. Federal Enterprise Architecture www.whitehouse.gov/omb/egov/a-1-fea.html Enterprise Architecture as Corporate Strategy - Introduction <ul><li>Constructed through a collection of business driven, interrelated and layered reference models </li></ul>
    18. 18. Federal Enterprise Architecture <ul><li>Business Driven Approach: Business transformation, BRM </li></ul><ul><li>Budget Allocation – OMB Exhibit 300, EA Assessment Framework 2.2, set priority, reduce redundancy </li></ul><ul><li>Information Sharing – DRM, data description, context, </li></ul><ul><li>Performance Measurement - PRM </li></ul><ul><li>Budget / Performance Integration – CPIC Preselect, Select, Control, Evaluate, Steady State </li></ul><ul><li>Cross-Agency Collaboration </li></ul><ul><li>E-Governance </li></ul><ul><li>Component-Based Architecture - SOA </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    19. 19. Zachman EA Framework www.zifa.com Enterprise Architecture as Corporate Strategy - Introduction
    20. 20. Zachman EA Framework <ul><li>Arguably the most studied EA framework. </li></ul><ul><li>In practice, EA analysis starts at Scope, then Business Model, then System Model. </li></ul><ul><li>Not all cells in the grid need to be filled in. Data, Function, People, and Motivation columns are filled in most of the time. </li></ul><ul><li>High abstraction with limited support on templates and processes. </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    21. 21. TOGAF 8.1 Framework www.togaf.org Enterprise Architecture as Corporate Strategy - Introduction Enterprise Continuum Resource Base ARB, governance structure and process, maturity model, principles, skill framework, templates, patterns, architecture views, business processes, … <ul><li>All deliverables from each ADM iteration </li></ul><ul><li>Models, patterns, business vocabulary, drawings, layered architecture definitions </li></ul><ul><li>Assets from the industry –TOGAF reference models </li></ul>retrieve store
    22. 22. TOGAF Summary Enterprise Architecture as Corporate Strategy - Introduction <ul><li>Architecture Development Methods (ADM) </li></ul><ul><li>The core of TOGAF. A business requirements driven iterative process to develop an enterprise architecture. </li></ul><ul><li>Analyze complex business domain from business, data , application, and technology views. </li></ul><ul><li>Enterprise Continuum - Virtual Repository </li></ul><ul><li>A virtual repository of all architecture asset. During ADM process, all architecture deliverables are created, modified, referenced, and managed by the repository. </li></ul><ul><li>Resource Base </li></ul><ul><li>Required resources and reference material to develop enterprise architecture. ARB, governance structure and process, maturity model, principles, skill framework, templates, patterns, architecture views, business processes, … </li></ul>
    23. 23. Key ideas to take away <ul><li>Pick an EA framework. A lot better than don’t have one. </li></ul><ul><li>Adopt the selected EA framework </li></ul><ul><ul><li>Strong executives support </li></ul></ul><ul><ul><li>Measure EA in money, time to market, and IT quality </li></ul></ul><ul><ul><li>Implement EA one project at a time. </li></ul></ul><ul><ul><li>Training! Training! Training! At all levels. </li></ul></ul><ul><li>It is a culture change. Routine communication and actionable EA measurement matrix is the key for a successful EA program. </li></ul>Enterprise Architecture as Corporate Strategy - Introduction
    24. 24. Reference <ul><li>Enterprise Architecture as Strategy ISBN 1-59139-839-8 </li></ul><ul><li>E-Gov FEA http://www.whitehouse.gov/omb/egov/a-1-fea.html </li></ul><ul><li>OMB FEA_Practice_Guidance_Nov_2007.pdf </li></ul><ul><li>OMB FEA Program - EA Assessment Framework 2.2 </li></ul><ul><li>DoDAF http://www.defenselink.mil/cio-nii/cio/earch.shtml </li></ul><ul><li>The Open Group – TOGAF 8.1.1 http:// www.togaf.org / </li></ul><ul><li>Zachman Framework http:// www.zifa.com / </li></ul><ul><li>Wikipedia “Enterprise Architecture”. http:// en.wikipedia.org </li></ul><ul><li>Service Oriented Architecture by Thomas Erl – ISBN 0-13-142898-5 </li></ul>Enterprise Architecture as Corporate Strategy - Introduction

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