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UNICOM EA FORUM Richard Veryard September 2011 Next Generation Enterprise Architecture
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 2010 Dion Hinchcliffe, ZDNet, August 2009
Two Contrasting Agendas for EA Business is simple Systems are complicated and inflexible Software applications Human activity systems Therefore simplify and unify the systems to align with the business Business is complex Systems are complicated and inflexible Therefore differentiate and integrate systems to help manage complexity. Simplify and Unify Differentiate and Integrate
Traditional EA doctrines Information Engineering Zachman Framework
Simplification and Unification Duplication Inconsistency Poor Interoperability Fragmentation Waste Risk Economics of scale Economics of scope Interoperability FROM TO
Achieving Simplification and Unification Quick and cheap solutions to local problems Tight project goals Stakeholders protecting established assets and arrangements Joined-up thinking The “Big Picture” Clustering Increase Cohesion Decrease Coupling Typical Challenges EA Weaponry
From Small Picture …
… to Bigger Picture
Simple Interaction Matrix Source MSDN
Clustered Matrix Source MSDN
Simple Interaction Protocol (SIP)  11 SIP brings a rational process to project optimization Reproducible Verifiable Optimal SIP has a mathematical foundation Set theory Complexity analysis Equivalence relations SIP drives simplicity The architecture with smallest collections of functionality that have the fewest dependencies. Simplest possible architecture that solves the problem. Roger Sessions ObjectWatch
12 Comparing SIP to Traditional EA SIP Traditional - Higher success rates. - Reduced cost. - Increased agility. - Cloud optimized. Roger Sessions ObjectWatch
Enterprise Architecture as Strategy 1 2 ? Low differentiation High differentiation
Six Views of Business
Business Trends Converging Technology and systems Converging market power – globalization Increasing collaboration Diversity – market fragmentation – “Long Tail” Unbundling Asymmetric Demand Convergence Divergence Increasing Speed Increasing Scope Increasing Complexity Increasing Reach
Challenges Business Architecture Technology Architecture IT Agility Business Agility Technical System Interoperability Sociotechnical Interoperability Through-LifeValue for Money Value against Demand
Structural complexity of business Asymmetrical demand  Business as a platform Coupling enterprise as loosely coupled network of sociotechnical components and services Edge organization Enterprise tempo activities with different characteristic tempi Ethical dilemmas conflicts of interest, moral hazard Multi-sided markets different stakeholder classes with complementary demands Organizational intelligence Viability command and control VSM
Dimensions of business complexity Delivery / Interface 	 eCommerce, Web, Call Centre, Kiosk, SMS,  Product Class/Consumer Enterprise, SME, Retail Consumer, Citizen, Intra-government 2-sided markets Commercial Channel Wholesale, Retail, Corporate, Partner, Direct Brand integration, mergers & acquisition Pricing Type Credit, eCommerce, Cash, Direct Debit Subscription, Fixed-Price, Pay-as-you-Go,  Product Delivery Technology Managed Service, DVD, SaaS CD, DVD, Video on Demand
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 systems management information systems (IT)  management reward systems (HR)
Two Contrasting Agendas for EA Simplify and Unify Business is simple Systems are complicated and inflexible Software applications Human activity systems Therefore simplify and unify the systems to align with the business Business is complex Systems are complicated and inflexible Therefore differentiate and integrate systems to help manage complexity. Differentiate and Integrate
Are your enterprise models complete?
Information Gathering Decision & Policy WIGO (what is going on) Learning& Development Knowledge& Memory Organizational intelligence 22 Sense-Making Communication & Collaboration
From Data Objects to Social Objects Databases Transaction Processing Content Management Social Networking Systems of Record Systems of Engagement
TOGAF 9 – Holistic Enterprise Change When 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.
Planned versus Emergent Planned order (“taxis”) Directed, design-time Spontaneous order based on self-organization (“cosmos”) Emergent, run-time Planned Architecture Emergent Architecture
As business becomes more complex … Complicated or fragmented systems Exposes management weakness Customers’ economics of alignment outweigh suppliers’ economics of scale and scope Competitive advantage Requisite variety Costs Benefits
Enterprise or Ecosystem  a third agenda Looking outside the traditional enterprise Questions of corporate identity Indirect demand (end customer) From Affiliation to Alliance Value for whom? Scope Third Agenda
Dynamics of strategy (Kurtz & Snowden) AGENDA 3 Differentiated Integration Strong distributed AGENDA 2 Differentiate and Integrate Weak distributed AGENDA 1 Simplify and Unify Strong central Weak central Source: “The new dynamics of strategy: Sense-making in a complex and complicated World”.  Kurtz and Snowden.  IBM Systems Journal Vol 42, No 3 2003
As business becomes more complex … Complicated or fragmented systems Exposes management weakness Customers’ economics of alignment outweigh suppliers’ economics of scale and scope Competitive advantage Requisite variety Costs Benefits
Some alternative lenses for viewing structural complexity Viable 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 Intelligence Asymmetric Leadership  Structural Complexity Management Capability
Healthcare See presentation by Philip Boxer
Collaborative Composition in the Insurance Value Chain Orchestration Composition Context  of Use Solution  Providers Platform Providers 1 2 3 4 5 6 Server Platform Web  Services and  Messaging BusinessServices Back Office Front Office Life of Customer Service Pathways Referral Pathway broker end user LOB Features End User Experience supply side Collaborative Composition Asymmetric Demand Source: Veryard & Boxer 2005
Conclusions Broad range of complex practical problems Emerging methods for reasoning about differentiation and integration. New agenda for enterprise architecture Not suppressing complexity but managing complexity
Future Events Business Architecture Bootcamp November  22-23 Organizational Intelligence Workshop November  24 RVsoapbox.BlogSpot.com Future Events Other Material and Links

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Next Generation Enterprise Architecture

  • 1. UNICOM EA FORUM Richard Veryard September 2011 Next 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 2010 Dion Hinchcliffe, ZDNet, August 2009
  • 3. Two Contrasting Agendas for EA Business is simple Systems are complicated and inflexible Software applications Human activity systems Therefore simplify and unify the systems to align with the business Business is complex Systems are complicated and inflexible Therefore differentiate and integrate systems to help manage complexity. Simplify and Unify Differentiate and Integrate
  • 4. Traditional EA doctrines Information Engineering Zachman Framework
  • 5. Simplification and Unification Duplication Inconsistency Poor Interoperability Fragmentation Waste Risk Economics of scale Economics of scope Interoperability FROM TO
  • 6. Achieving Simplification and Unification Quick and cheap solutions to local problems Tight project goals Stakeholders protecting established assets and arrangements Joined-up thinking The “Big Picture” Clustering Increase Cohesion Decrease Coupling Typical Challenges EA Weaponry
  • 8. … to Bigger Picture
  • 11. Simple Interaction Protocol (SIP) 11 SIP brings a rational process to project optimization Reproducible Verifiable Optimal SIP has a mathematical foundation Set theory Complexity analysis Equivalence relations SIP drives simplicity The architecture with smallest collections of functionality that have the fewest dependencies. Simplest possible architecture that solves the problem. Roger Sessions ObjectWatch
  • 12. 12 Comparing SIP to Traditional EA SIP Traditional - Higher success rates. - Reduced cost. - Increased agility. - Cloud optimized. Roger Sessions ObjectWatch
  • 13. Enterprise Architecture as Strategy 1 2 ? Low differentiation High differentiation
  • 14. Six Views of Business
  • 15. Business Trends Converging Technology and systems Converging market power – globalization Increasing collaboration Diversity – market fragmentation – “Long Tail” Unbundling Asymmetric Demand Convergence Divergence Increasing Speed Increasing Scope Increasing Complexity Increasing Reach
  • 16. Challenges Business Architecture Technology Architecture IT Agility Business Agility Technical System Interoperability Sociotechnical Interoperability Through-LifeValue for Money Value against Demand
  • 17. Structural complexity of business Asymmetrical demand Business as a platform Coupling enterprise as loosely coupled network of sociotechnical components and services Edge organization Enterprise tempo activities with different characteristic tempi Ethical dilemmas conflicts of interest, moral hazard Multi-sided markets different stakeholder classes with complementary demands Organizational intelligence Viability command and control VSM
  • 18. Dimensions of business complexity Delivery / Interface eCommerce, Web, Call Centre, Kiosk, SMS, Product Class/Consumer Enterprise, SME, Retail Consumer, Citizen, Intra-government 2-sided markets Commercial Channel Wholesale, Retail, Corporate, Partner, Direct Brand integration, mergers & acquisition Pricing Type Credit, eCommerce, Cash, Direct Debit Subscription, Fixed-Price, Pay-as-you-Go, Product Delivery Technology Managed Service, DVD, SaaS CD, 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 systems management information systems (IT) management reward systems (HR)
  • 20. Two Contrasting Agendas for EA Simplify and Unify Business is simple Systems are complicated and inflexible Software applications Human activity systems Therefore simplify and unify the systems to align with the business Business is complex Systems are complicated and inflexible Therefore differentiate and integrate systems to help manage complexity. Differentiate and Integrate
  • 21. Are your enterprise models complete?
  • 22. Information Gathering Decision & Policy WIGO (what is going on) Learning& Development Knowledge& Memory Organizational intelligence 22 Sense-Making Communication & Collaboration
  • 23. From Data Objects to Social Objects Databases Transaction Processing Content Management Social Networking Systems of Record Systems of Engagement
  • 24. TOGAF 9 – Holistic Enterprise Change When 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 Emergent Planned order (“taxis”) Directed, design-time Spontaneous order based on self-organization (“cosmos”) Emergent, run-time Planned Architecture Emergent Architecture
  • 26. As business becomes more complex … Complicated or fragmented systems Exposes management weakness Customers’ economics of alignment outweigh suppliers’ economics of scale and scope Competitive advantage Requisite variety Costs Benefits
  • 27. Enterprise or Ecosystem  a third agenda Looking outside the traditional enterprise Questions of corporate identity Indirect demand (end customer) From Affiliation to Alliance Value for whom? Scope Third Agenda
  • 28. Dynamics of strategy (Kurtz & Snowden) AGENDA 3 Differentiated Integration Strong distributed AGENDA 2 Differentiate and Integrate Weak distributed AGENDA 1 Simplify and Unify Strong central Weak central Source: “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 systems Exposes management weakness Customers’ economics of alignment outweigh suppliers’ economics of scale and scope Competitive advantage Requisite variety Costs Benefits
  • 30. Some alternative lenses for viewing structural complexity Viable 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 Intelligence Asymmetric Leadership Structural Complexity Management Capability
  • 31. Healthcare See presentation by Philip Boxer
  • 32. Collaborative Composition in the Insurance Value Chain Orchestration Composition Context of Use Solution Providers Platform Providers 1 2 3 4 5 6 Server Platform Web Services and Messaging BusinessServices Back Office Front Office Life of Customer Service Pathways Referral Pathway broker end user LOB Features End User Experience supply side Collaborative Composition Asymmetric Demand Source: Veryard & Boxer 2005
  • 33. Conclusions Broad range of complex practical problems Emerging methods for reasoning about differentiation and integration. New agenda for enterprise architecture Not suppressing complexity but managing complexity
  • 34. Future Events Business Architecture Bootcamp November 22-23 Organizational Intelligence Workshop November 24 RVsoapbox.BlogSpot.com Future Events Other Material and Links

Editor's Notes

  1. http://blogs.forrester.com/jeff_scott/10-05-16-future_eahttp://www.zdnet.com/blog/hinchcliffe/pragmatic-new-models-for-enterprise-architecture-take-shape/674
  2. There are actually three contrasting agendas, but we’ll save the third agenda until later in the presentation. It is not clear to what extent the third agenda still counts as EA.1. simplify around single (simple) business model: single definition of 'market' qua single-sided market.2. differentiate business models and integrate to span their differences: multiple definitions of 'market' qua single-sided markets.3. differentiate business models AND differentiate the modes of integration: multiple 'markets' within multiple contexts-of-use qua multi-sided markets.(PJB)
  3. http://csis.pace.edu/~marchese/cs615sp/L3New/L3new.htmlhttp://en.wikipedia.org/wiki/Zachman_Framework
  4. http://demandingchange.blogspot.com/2009/12/getting-big-picture.html
  5. Function versus data CRUD matrixhttp://msdn.microsoft.com/en-us/library/aa480036.aspx
  6. http://msdn.microsoft.com/en-us/library/aa480036.aspx
  7. Operating Model Quadrants (Adapted by Clive Finkelstein from Figure 2.3 of “Enterprise Architecture as Strategy”)http://esvc000904.wic047u.server-web.com/ten/ten38.htmhttp://rvsoapbox.blogspot.com/2010/05/differentiation-and-integration.html
  8. http://rvsoapbox.blogspot.com/2010/10/selling-business-architecture.html
  9. There are actually three contrasting agendas, but we’ll save the third agenda until later in the presentation. It is not clear to what extent the third agenda still counts as EA.1. simplify around single (simple) business model: single definition of 'market' qua single-sided market.2. differentiate business models and integrate to span their differences: multiple definitions of 'market' qua single-sided markets.3. differentiate business models AND differentiate the modes of integration: multiple 'markets' within multiple contexts-of-use qua multi-sided markets.(PJB)
  10. http://rvsoapbox.blogspot.com/2009/02/togaf-9-holistic-enterprise-change.html
  11. 3. differentiate business models AND differentiate the modes of integration: multiple 'markets' within multiple contexts-of-use qua multi-sided markets
  12. http://www.asymmetricdesign.com/archives/72