A High Value Approach to
Business/IT Collaboration
         Roger Sessions
      CTO, ObjectWatch, Inc.

     roger@objectwatch.com
        Twitter: @RSessions
     Linked-In: Roger Sessions
Who is Roger Sessions
      - The Father of IT Complexity Analytics
      - Author of seven books and many highly influential
      white papers, including
           The IT Complexity Crisis
           The Mathematics of IT Simplification
           Revamping Public Sector IT Procurement to
           Favor Success and Small Business
      - Visiting Professor of IT Complexity Analytics at
      University of the Andes.
      - Keynote speaker at many conferences including two
      Gartner Research Boards.
      - IASA Fellow

roger@objectwatch.com         Roger Sessions                2
Audience Check
                        • Executives
                        • Developers
                        • Architects
                        • Business Specialists
                        • Students




roger@objectwatch.com             Roger Sessions   3
Presentation Outline
- We don’t know how to build big IT Systems.
- Big IT needs a radical transformation.

- The starting point is The Snowman Architecture.

- The Snowman Architecture is a radical improvement.




roger@objectwatch.com        Roger Sessions            4
What is Radical Transformation?
                   IT Driven                                  Business Driven
Three
Tenets of          Big                                        Small
Transformation
                   Complex                                    Simple

                   Long Term Value                            Short Term Value

                   Process Focus                              Delivery Focus

                   Private Platforms                          Public Cloud Platform

                   IT Centric Architecture                    Business Centric Architecture

                   Design Intensive                           Implementation Intensive

                   Slow Delivery                              Fast Delivery

     roger@objectwatch.com                   Roger Sessions                              5
The State of Large IT
“An estimated 85% of government IT projects are late, over budget or both.”
         - The Pew Center on the States, “Focus on Performance”, 2010

“Projects over $10M have a statistically zero chance of being
delivered on time, on budget, and with required functionality.”
         - (Standish) 2009 Chaos report published by the Standish Group

“OMB and federal agencies have identified approximately 413 IT projects--
totaling at least $25.2 billion in expenditures for fiscal year 2008--as being
poorly planned, poorly performing, or both.”
         - GAO Report 08-105IT.

“The world economy is losing over $500 Billion per month to IT failure.”
         - The IT Complexity Crisis by Roger Sessions




 roger@objectwatch.com                        Roger Sessions                     6
Two Studies
               75
Chance
of
Success        50


               25




     labor cost      <$750K                            $1.9M             10M+                        Standish (2009)
     (USD)
                                  Size
     effort                                  750PM
                          <= 24PM                                1700PM       2400+PM
     (person months)                         ($11M)                                                  Sauer
                          ($360K)                                ($25M)       ($36M)


               (Standish) 2009 Chaos report published by the Standish Group
               (Sauer) The Impact of Size and Volatility on IT Project Performance by Chris Sauer,
               Andrew Gemino, and Blaize Horner Reich, Comms of the ACM Nov 07


    roger@objectwatch.com                             Roger Sessions                                             7
To Summarize Studies
         Projects under $1M are almost always successful.

         Projects over $10M are almost never successful.

         Projects over $20M typically exceed their budgets
         by over 220% and cost an additional 400% in lost
         opportunity costs.




roger@objectwatch.com           Roger Sessions               8
Relationship Between Project Size and
             Complexity



Complexity
of
Project




                        Size of Project


roger@objectwatch.com            Roger Sessions   9
Standard Methodology Doesn’t Scale
                 Your Standard Business/IT Architecture

                                                          Business
                                                          Architecture



                                                          Technical/
                                                          Services
                                                          Architecture


                                                          Data
                                                          Architecture




roger@objectwatch.com              Roger Sessions                  10
Why Don’t We Split It Up?




                        Too many dependencies!


roger@objectwatch.com            Roger Sessions   11
Relationship Between Project
          Dependency and Complexity



Complexity
of
Project




                        Number of Dependencies


roger@objectwatch.com          Roger Sessions    12
So What Does Work
             Small Sub-Systems   Few Dependencies




roger@objectwatch.com            Roger Sessions     13
Two Major Problems

     1. When you split up a system you INCREASE the dependencies.

     2. You must split up the system BEFORE YOU KNOW the dependencies.




roger@objectwatch.com             Roger Sessions                         14
A New Approach
                          The Snowman Architecture

                                               Business Architecture



                                              Technical Architecture


                                          Service Architecture

                                              Data Architecture



                   Smaller Systems   Fewer Dependencies

roger@objectwatch.com                Roger Sessions                    15
Why Do I Call this a Snowman?


                        Business Architecture



                        Technical Architecture


                        Service Architecture

                        Data Architecture




roger@objectwatch.com   Roger Sessions           16
How To Build A Snowman
                                    The Head consists of business functions that are
                                    synergistically related to each other and nothing
                                    else.

Max                                 The Torso consists of the technical systems that
Size:                               support the head and nothing else.
Few
Million$                         The Arms implement the dependencies between
                                 business capabilities and nothing else.
                                    The Bottom consists of the data needed by the
                                    Torso and nothing else.


               Business Led:   The Head controls everything
               Small:          Less than few million $
               Simple:         Autonomous with minimal connection points

    roger@objectwatch.com               Roger Sessions                                 17
Putting Snowmen Together




roger@objectwatch.com   Roger Sessions   18
This Scales Without Limit




roger@objectwatch.com   Roger Sessions   19
Getting the Head Right




                         Understand business capabilities.
              Understand relationship between complexity and synergy.
                Understand mathematics of equivalence relationships.
            Understand methodologies for early identification of synergies.
                        Understand functional dependencies.
           Understand tools to track synergistic relationships/dependencies.
            Understand how the business contours project to lower layers.
                          SIP: Simple Iterative Partitions

roger@objectwatch.com                    Roger Sessions                        20
SIP High Level
                                           SIP Preplanning Phase


   Project                                                    Capability    Sub-project
                        Preparation    Decomposition
Identification                                               Assignment      Spawning




  Message               Messaging       Dependency            Capability
  Harness                                                                  Requirements
                       Determination   Determination         Completion




 Business                Technical         Data               Imple-        Integration
Architecture            Architecture    Architecture         mentation




    roger@objectwatch.com                   Roger Sessions                          21
Okay, so what does this buy me?




roger@objectwatch.com   Roger Sessions      22
Complexity

                         Zone of Death



Complexity
of
Project




                         Size of Project


roger@objectwatch.com             Roger Sessions   23
Business/IT Alignment

                                                Business

                                                IT




                                                Enterprise
                                                Architecture

              Poor Alignment                           Excellent Alignment

roger@objectwatch.com          Roger Sessions                                24
ROI
                              Example: $20M Project


    Traditional Approach                                Snowman Approach

Budgeted                  20 M$                Budget                        20 M$
Average Overrun          228 %                 Snowman Costs                  2 M$
Expected Overrun        45.6 M$                Average Overrun                0%
Lost Opp Costs          45.6 M$                Expected Overrun               0 M$
Total Cost              91.2 M$                Lost Opp Costs                 0 M$
                                               Total Costs                   22 M$
                                               Savings                     69.2 M$

                        Net: $2M investment yields $69M return




roger@objectwatch.com                  Roger Sessions                                25
Auditing/Compliance




Very difficult to determine who            Easy to determine who changed data
changed data and why.                      and why.




 roger@objectwatch.com            Roger Sessions                         26
Security




         Hard to Configure                       Easy to Configure




roger@objectwatch.com           Roger Sessions                       27
Flexibility




         Hard to Change                        Easy to Change




roger@objectwatch.com         Roger Sessions                    28
Time to Failure




            Frequent Catastrophic Failures                Infrequent Local Failures
roger@objectwatch.com                    Roger Sessions                               29
Time To Recovery

                                                                         Primary
                                                                         Snowman




                                                                         Backup
                                                                         Snowman



                        Slow Recovery                    Fast Recovery


roger@objectwatch.com                   Roger Sessions                       30
$
    $                        Cloud Effectiveness
   $$
    $
   $$
   $                                           $


Expensive                                   Cheap




     roger@objectwatch.com           Roger Sessions   31
Impact on Local Economy




Benefits Large Foreign Consulting              Benefits Small Local Consulting
Companies - Negative Impact on                 Companies - Strong Positive Impact
Local Economy.                                 on Local Economy.


 roger@objectwatch.com              Roger Sessions                           32
A Lot of Benefits
                         Lower Complexity
                         Better Business/IT Alignment
                         More Secure
                         More Flexible
                         More Reliable
                         Better for Cloud
                         Great ROI
                         Stimulates Local Economy

                        Radical IT Transformation
roger@objectwatch.com              Roger Sessions       33
Making the Transformation
                             Create a group to own the Snowman
                             Architecture.
                             Choose a smallish project (~ 10M$).
                             Get Executive Buy-in.
                             Sell to the Business and IT.
                             Apply the principles.
                             Publicize the result, especially the ROI.


           Start a Radical Transformation of IT!

roger@objectwatch.com             Roger Sessions                    34
Summary
      - The Snowman Architecture delivers cheaper systems
      faster that better need the needs of the business.
      - The Snowman Architecture is based on three
      important ideas:
              Business driven
              Small projects
              Simple Systems
      - These ideas can radically transform IT.
      - This is a tremendous value proposition for Enterprise
      Architecture with high ROI for business.


roger@objectwatch.com           Roger Sessions                  35
Suggested Readings
A Fundamental Metric for Predicting IT Success by Roger Sessions (White Paper) at
http://www.objectwatch.com/white_papers.htm#metric

The Mathematics of IT Simplification by Roger Sessions (White Paper) at
http://www.objectwatch.com/white_papers.htm#Math

Simple Architectures for Complex Enterprises (Book) by Roger Sessions.

The IT Complexity Crisis (White Paper) by Roger Sessions at
http://www.objectwatch.com/white_papers.htm#ITComplexity

Radical IT Transformation (blog) by Roger Sessions
at http://simplearchitectures.blogspot.com/2012/08/radical-it-transformation_14.html

The Equation Every Enterprise Architect Should Memorize (blog) by Roger Sessions at
http://simplearchitectures.blogspot.com/2012/03/equation-every-enterprise-architect.html

The Relationship Between IT Project Size and IT Failure Rate (webshort) by Roger Sessions at
http://simplearchitectures.blogspot.com/2012/01/web-short-relationship-between-it.html

SIP: A Project Optimization Methodology (webshort) by Roger Sessions at
http://simplearchitectures.blogspot.com/2012/01/web-short-sip-methodology-for-project.html

    roger@objectwatch.com                       Roger Sessions                                 36
Acknowledgements

    The snowmen photos are all licensed under Creative Commons and
    taken from Flickr. They photographers are, in order of appearance:

    -   chris.corwin
    -   The Year of Mud
    -   Jason Alley
    -   jcarwash31




roger@objectwatch.com                  Roger Sessions                    37

Roger Sessions

  • 1.
    A High ValueApproach to Business/IT Collaboration Roger Sessions CTO, ObjectWatch, Inc. roger@objectwatch.com Twitter: @RSessions Linked-In: Roger Sessions
  • 2.
    Who is RogerSessions - The Father of IT Complexity Analytics - Author of seven books and many highly influential white papers, including The IT Complexity Crisis The Mathematics of IT Simplification Revamping Public Sector IT Procurement to Favor Success and Small Business - Visiting Professor of IT Complexity Analytics at University of the Andes. - Keynote speaker at many conferences including two Gartner Research Boards. - IASA Fellow roger@objectwatch.com Roger Sessions 2
  • 3.
    Audience Check • Executives • Developers • Architects • Business Specialists • Students roger@objectwatch.com Roger Sessions 3
  • 4.
    Presentation Outline - Wedon’t know how to build big IT Systems. - Big IT needs a radical transformation. - The starting point is The Snowman Architecture. - The Snowman Architecture is a radical improvement. roger@objectwatch.com Roger Sessions 4
  • 5.
    What is RadicalTransformation? IT Driven Business Driven Three Tenets of Big Small Transformation Complex Simple Long Term Value Short Term Value Process Focus Delivery Focus Private Platforms Public Cloud Platform IT Centric Architecture Business Centric Architecture Design Intensive Implementation Intensive Slow Delivery Fast Delivery roger@objectwatch.com Roger Sessions 5
  • 6.
    The State ofLarge IT “An estimated 85% of government IT projects are late, over budget or both.” - The Pew Center on the States, “Focus on Performance”, 2010 “Projects over $10M have a statistically zero chance of being delivered on time, on budget, and with required functionality.” - (Standish) 2009 Chaos report published by the Standish Group “OMB and federal agencies have identified approximately 413 IT projects-- totaling at least $25.2 billion in expenditures for fiscal year 2008--as being poorly planned, poorly performing, or both.” - GAO Report 08-105IT. “The world economy is losing over $500 Billion per month to IT failure.” - The IT Complexity Crisis by Roger Sessions roger@objectwatch.com Roger Sessions 6
  • 7.
    Two Studies 75 Chance of Success 50 25 labor cost <$750K $1.9M 10M+ Standish (2009) (USD) Size effort 750PM <= 24PM 1700PM 2400+PM (person months) ($11M) Sauer ($360K) ($25M) ($36M) (Standish) 2009 Chaos report published by the Standish Group (Sauer) The Impact of Size and Volatility on IT Project Performance by Chris Sauer, Andrew Gemino, and Blaize Horner Reich, Comms of the ACM Nov 07 roger@objectwatch.com Roger Sessions 7
  • 8.
    To Summarize Studies Projects under $1M are almost always successful. Projects over $10M are almost never successful. Projects over $20M typically exceed their budgets by over 220% and cost an additional 400% in lost opportunity costs. roger@objectwatch.com Roger Sessions 8
  • 9.
    Relationship Between ProjectSize and Complexity Complexity of Project Size of Project roger@objectwatch.com Roger Sessions 9
  • 10.
    Standard Methodology Doesn’tScale Your Standard Business/IT Architecture Business Architecture Technical/ Services Architecture Data Architecture roger@objectwatch.com Roger Sessions 10
  • 11.
    Why Don’t WeSplit It Up? Too many dependencies! roger@objectwatch.com Roger Sessions 11
  • 12.
    Relationship Between Project Dependency and Complexity Complexity of Project Number of Dependencies roger@objectwatch.com Roger Sessions 12
  • 13.
    So What DoesWork Small Sub-Systems Few Dependencies roger@objectwatch.com Roger Sessions 13
  • 14.
    Two Major Problems 1. When you split up a system you INCREASE the dependencies. 2. You must split up the system BEFORE YOU KNOW the dependencies. roger@objectwatch.com Roger Sessions 14
  • 15.
    A New Approach The Snowman Architecture Business Architecture Technical Architecture Service Architecture Data Architecture Smaller Systems Fewer Dependencies roger@objectwatch.com Roger Sessions 15
  • 16.
    Why Do ICall this a Snowman? Business Architecture Technical Architecture Service Architecture Data Architecture roger@objectwatch.com Roger Sessions 16
  • 17.
    How To BuildA Snowman The Head consists of business functions that are synergistically related to each other and nothing else. Max The Torso consists of the technical systems that Size: support the head and nothing else. Few Million$ The Arms implement the dependencies between business capabilities and nothing else. The Bottom consists of the data needed by the Torso and nothing else. Business Led: The Head controls everything Small: Less than few million $ Simple: Autonomous with minimal connection points roger@objectwatch.com Roger Sessions 17
  • 18.
  • 19.
    This Scales WithoutLimit roger@objectwatch.com Roger Sessions 19
  • 20.
    Getting the HeadRight Understand business capabilities. Understand relationship between complexity and synergy. Understand mathematics of equivalence relationships. Understand methodologies for early identification of synergies. Understand functional dependencies. Understand tools to track synergistic relationships/dependencies. Understand how the business contours project to lower layers. SIP: Simple Iterative Partitions roger@objectwatch.com Roger Sessions 20
  • 21.
    SIP High Level SIP Preplanning Phase Project Capability Sub-project Preparation Decomposition Identification Assignment Spawning Message Messaging Dependency Capability Harness Requirements Determination Determination Completion Business Technical Data Imple- Integration Architecture Architecture Architecture mentation roger@objectwatch.com Roger Sessions 21
  • 22.
    Okay, so whatdoes this buy me? roger@objectwatch.com Roger Sessions 22
  • 23.
    Complexity Zone of Death Complexity of Project Size of Project roger@objectwatch.com Roger Sessions 23
  • 24.
    Business/IT Alignment Business IT Enterprise Architecture Poor Alignment Excellent Alignment roger@objectwatch.com Roger Sessions 24
  • 25.
    ROI Example: $20M Project Traditional Approach Snowman Approach Budgeted 20 M$ Budget 20 M$ Average Overrun 228 % Snowman Costs 2 M$ Expected Overrun 45.6 M$ Average Overrun 0% Lost Opp Costs 45.6 M$ Expected Overrun 0 M$ Total Cost 91.2 M$ Lost Opp Costs 0 M$ Total Costs 22 M$ Savings 69.2 M$ Net: $2M investment yields $69M return roger@objectwatch.com Roger Sessions 25
  • 26.
    Auditing/Compliance Very difficult todetermine who Easy to determine who changed data changed data and why. and why. roger@objectwatch.com Roger Sessions 26
  • 27.
    Security Hard to Configure Easy to Configure roger@objectwatch.com Roger Sessions 27
  • 28.
    Flexibility Hard to Change Easy to Change roger@objectwatch.com Roger Sessions 28
  • 29.
    Time to Failure Frequent Catastrophic Failures Infrequent Local Failures roger@objectwatch.com Roger Sessions 29
  • 30.
    Time To Recovery Primary Snowman Backup Snowman Slow Recovery Fast Recovery roger@objectwatch.com Roger Sessions 30
  • 31.
    $ $ Cloud Effectiveness $$ $ $$ $ $ Expensive Cheap roger@objectwatch.com Roger Sessions 31
  • 32.
    Impact on LocalEconomy Benefits Large Foreign Consulting Benefits Small Local Consulting Companies - Negative Impact on Companies - Strong Positive Impact Local Economy. on Local Economy. roger@objectwatch.com Roger Sessions 32
  • 33.
    A Lot ofBenefits Lower Complexity Better Business/IT Alignment More Secure More Flexible More Reliable Better for Cloud Great ROI Stimulates Local Economy Radical IT Transformation roger@objectwatch.com Roger Sessions 33
  • 34.
    Making the Transformation Create a group to own the Snowman Architecture. Choose a smallish project (~ 10M$). Get Executive Buy-in. Sell to the Business and IT. Apply the principles. Publicize the result, especially the ROI. Start a Radical Transformation of IT! roger@objectwatch.com Roger Sessions 34
  • 35.
    Summary - The Snowman Architecture delivers cheaper systems faster that better need the needs of the business. - The Snowman Architecture is based on three important ideas: Business driven Small projects Simple Systems - These ideas can radically transform IT. - This is a tremendous value proposition for Enterprise Architecture with high ROI for business. roger@objectwatch.com Roger Sessions 35
  • 36.
    Suggested Readings A FundamentalMetric for Predicting IT Success by Roger Sessions (White Paper) at http://www.objectwatch.com/white_papers.htm#metric The Mathematics of IT Simplification by Roger Sessions (White Paper) at http://www.objectwatch.com/white_papers.htm#Math Simple Architectures for Complex Enterprises (Book) by Roger Sessions. The IT Complexity Crisis (White Paper) by Roger Sessions at http://www.objectwatch.com/white_papers.htm#ITComplexity Radical IT Transformation (blog) by Roger Sessions at http://simplearchitectures.blogspot.com/2012/08/radical-it-transformation_14.html The Equation Every Enterprise Architect Should Memorize (blog) by Roger Sessions at http://simplearchitectures.blogspot.com/2012/03/equation-every-enterprise-architect.html The Relationship Between IT Project Size and IT Failure Rate (webshort) by Roger Sessions at http://simplearchitectures.blogspot.com/2012/01/web-short-relationship-between-it.html SIP: A Project Optimization Methodology (webshort) by Roger Sessions at http://simplearchitectures.blogspot.com/2012/01/web-short-sip-methodology-for-project.html roger@objectwatch.com Roger Sessions 36
  • 37.
    Acknowledgements The snowmen photos are all licensed under Creative Commons and taken from Flickr. They photographers are, in order of appearance: - chris.corwin - The Year of Mud - Jason Alley - jcarwash31 roger@objectwatch.com Roger Sessions 37