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[WSO2 API Day Chicago 2019] Pace Layering to Prioritize Business Initiatives for Digital Transformation

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Pace Layering is an essential Gartner framework that helps prioritize business initiatives for digital transformation.

From a technical standpoint, Mashable Application Service or Cell Architectures are the new standards for flexibility.

Quinnox brings a unique perspective that combines the benefits of Pace layering and our proprietary methods to deliver predictable pathways for Cell-based architecture that enable faster digital transformations.

Join us at a city near you to learn how to achieve API-driven integration agility - https://wso2.com/integration-summits-2019/

Published in: Technology
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[WSO2 API Day Chicago 2019] Pace Layering to Prioritize Business Initiatives for Digital Transformation

  1. 1. © 2019, Quinnox, Inc. All rights reserved. Do not distribute without permission. Pairing Pace Layering with Agile Architecture to drive Digital Transformation Akshay Deshpande 06/20/2019
  2. 2. 2 Pace Layered Application strategy enables clear prioritization, optimizes efficiency, and provides business leaders with the solutions they need to innovate and differentiate . Cell based architecture enhances enterprise agility by improving scalability, modularity , composability and governance. Pace layering combined with Cell based architecture and Quinnox Methodology helps drive faster digital transformation to organizations Abstract
  3. 3. 3 1. Improving Business Productivity Deliver business capability enhancements to address high-value opportunities ▪ Improve “No Touch” Processing ▪ Improve Order Accuracy ▪ Drive Operational Efficiencies ▪ Drive Profitability through Analytics Guiding Principles for Digital Transformation
  4. 4. 4 2. Minimize Disruption to the Business Enable capabilities in a thoughtful manner to minimize business disruption and avoid impacts to customer service Guiding Principles for Digital Transformation
  5. 5. 5 3. Lay the Foundation for Future Growth Drive growth through scalable and extensible solutions that provide differentiating and innovative capabilities to the organization Guiding Principles for Digital Transformation
  6. 6. 6 Guidelines for Prioritization of Roadmap Initiatives Prioritization ▪ Align with inflight initiatives Continue to leverage existing investments ▪ Continue to focus on acquisition ▪ Prioritize initiatives that drive high value at lower cost ▪ Minimize investment in low value adding initiatives
  7. 7. 7 Our Answer Pace Layering for Business Capabilities Cell: Units of Enterprise Architecture Quinnox “Point of View” 1 2 3
  8. 8. 8 Pace Layering for Business Capabilities Definition of Pace Layer Architecture Standard Distribution Industry value chain with Pace Layer System of Innovation “Create New Value” New ideas, next competitive advantage System of Differentiation “Improve the Business” Better ideas, current competitive advantage System of Record “Run the Business” Common ideas, standardization, compliance ,applications that are for processes that are stable Data Management Warehouse Management Planning & Purchasing Finance Financial Planning Analyze Business Performance Profitability Analysis Perform Closing Collections Mgmt. Fixed Asset Accounting Cash Receipts/ Application Expense Allocations Manage Excise and Sales and Use Taxes Accounts Receivable Processing Customer Credit Management Transaction Processing Accounts Payable Processing Financial Reporting Vendor Master Data Mgmt. Item Master Data Mgmt. Customer Master Data Mgmt. Planning & purchasing data Financial Data Customer Segments Management GTIN Management Sales Data Warehouse Management Data Receive Inventory Receive ASNs Source and Incoming Quality Assurance 3PL Integration Outbound Transportation Ship/Deliver Orders Pick Orders Outbound Delivery Mgmt. Inbound Warehouse Operations Inventory, Storage, Cycle Counting, Movement Print Invoices Returns & Reverse Logistics Digital Vendor Interaction(O ther) Vendor Managed Inventory Vendor Network Planning Digital Vendor Interactions (EDI) Product & Portfolio Mgmt. Purchase Materials Procurement Contracts and Pricing Demand Planning InterCo Orders and Transfer Pricing 2nd Party Vendor Rebates 3rd Party Rebates Special Orders Customer Interactions (EDI) Manage Customer Consignment Manage Contacts Manage Customer Opp. Digital Customer Interaction (Other) Sales Collaboration Forecast Sales Sales Performance/ Sales Analytics Manage CSR Worklist Manage Sales Returns Call Center Automation Process Orders Manage Sales Commissions Process Order Price Order Capture Manage Customer Invoices Manage and Optimize Order Price Manage Leads Territory Management Upsell & Cross Sell 4 3 21 5 Sales & Customer Service Manage Replenishment Special Orders IntraCo Orders and Transfer Pricing Imports Capture Quotes & Bids Kitting & Assembly Mobile Enablement Strategic Sourcing Our Answer 1
  9. 9. 9 Cell: Units of Enterprise Architecture Cell: Units of Enterprise Architecture A cell is an immutable application component that can be built, deployed and managed as a complete unit. The cell consist of multiple services, managed APIS, ingress and egrees policies (including routing, throttling, access control), security trust domain, deployment policies, rolling update policies and external dependencies. The cell definition captures all of these in a standard technology neutral fashion. API – centric Architecture Pull APIs • RESTful HTTP, GRPc Push APIs • Events JMS, AMQP, SMTP • Streams Kafka, MQTT …{API} …{API} …{API} …{API} …{API} …{API} …{API} …{API} ComponentsComponents Cell Gateway Our Answer 2
  10. 10. 10 Quinnox “Point of View” BusinessImpact TransformationalIncremental High PerformingNascent EA Functional Maturity Key Hurdles: ■ Stakeholder Engagement ■ Business Enablement ■ Talent Infrastructure focused EA o Technology-centric o Infrastructure standardization o Domain/Platform expertise IT- Focused EA o Process-centric o Application portfolio rationalization o Cross-stack technical expertise Business focused EA o Capability-centric o API/Microservices o Business domain and engagement expertise Our Answer 3
  11. 11. Quinnox Methodology
  12. 12. 12 Business value is determined by the following variables Technical complexity is determined by the number of points of integration for the application(s) associated with process Create a high-level systems diagram to determine the application’s current integration points. Think of integration points in the categories of API, Microservices ,Point-to-Point interfaces, ESB Connections, Data Integration (ETL Layers) etc. Strategic Importance Business Quality Functional Overlap Total Cost of Ownership Application Lifecycle Transition Stage Number of Users Assess business value and technical complexity of each process
  13. 13. 13 Prioritize the backlog Prioritize based on maximum business value and least technical complexity Justify the cost of rationalizing a business process and application against the reduction in the application’s expected TCO. If the cost for conducting a rationalization effort is less than the amount reduced in expected TCO for a given business process or application, rationalization should take place. Otherwise, the application should not be rationalized. Examine the list to see whether you want to shift the order of priorities. In some cases, you may still want to take on a complex rationalization because it provides higher business value than a moderately complex rationalization. Determine the final list of business processes and applications you want to rationalize for the iteration Do not rationalize High Priority Low Priority Medium Priority Business Value TechnicalComplexity Low High LowHigh
  14. 14. Guidelines for effective API design
  15. 15. 15 NOT everyone is doing API development effectively Both development and runtime issues prevent high adoption of APIs, leading to less than adequate business benefits realization. DEVELOPMENT ISSUES • Bad documentation: API consumers don’t know how to use the API properly. • Versioning problems: API changes lead to compatibility breaking causing a lot of rework for anyone using the API. • Unexpected behavior: When API changes are made, the interface remains compatible, but the internal logic has changed, causing retesting and recoding for API consumers. RUNTIME ISSUES • Poor performance: The API takes too long to execute or has severe limitations on how it should be used. • Version changes break compatibility: Deployment causes several integrations to break because of lack of compatibility. • Intermittent failures: Errors that are hard to replicate but known to exist.
  16. 16. 16 Run design sessions as a product dev effort for API consumers Establish the key objectives for your API in order to obtain the right resourcing to deliver a suitable product. Involve Key Stakeholders • A team of development and data experts need to be intimately involved at this stage as there are many possible implementations for a given set of business requirements. • Also, consider including the following roles: o Business Process Owner o Test Lead Follow Best Practices • Use a multi-pass design approach, where optimization is progressive. • Conduct an ongoing cost/benefit analysis looking at the trade-offs between short- and long-term objectives. • Sometimes a less than optimal solution is necessary so that the overall organization benefits through standardization. API development is driven from the outside in with clear intent. Don’t count on your initial API design reaching stability right away. Document your changes as part of an overall enterprise architecture.
  17. 17. 17 Use well known API design guidelines to prevent common errors The Importance of API Design A focus on design is a key part of ensuring user productivity and a good ROI for the solution. A poor design will frustrate developers and lead to longer development cycles or complete abandonment of the solution. A well-designed API will be simple to understand, consistent in its usage, and stable. Well-designed APIs tend to get reused – this leads to a higher return on the investment, improved code quality through reuse, and design simplification. In the design stage, expect to go through several iterations before settling on a stable API. It is more cost effective to design a API with initial expected functionality and include additional features once more use cases come to light. application/x-resource APIApp API Consumer HTTPApp Interface Source: Jansen, Geert. “The Job of the API Designer.” to_resource() from_resource() Data Model Object Representation API is exposed through HTTP as a set of generic resources that are ultimately based on a well-defined data model.
  18. 18. 18 Identify risks, security gaps, bottlenecks in your data flow Leading questions to ask when assessing your API data flow… • What data needs to be secured during transit? • What might cause data to be tampered with? • What data is trusted vs. untrusted? • Do work products from partners, collaborators, subcontractors, or suppliers meet your security requirements? • What may cause performance bottlenecks with in-house servers (e.g. server load balancing issues, internet connection)? • Is the load properly distributed across various device hardware and system components? • How many tasks are suspended and delayed due to slow executions of other tasks? • What level of control do you have over backend infrastructure and the code of your applications? • What information and data are exchanged within your flow? Does it need to be secured? • What integration approaches in your stack are not scalable to increased loads (e.g. point-to-point, adapter, ESB, middleware, API gateway)? • Is your API dependent on other applications, hardware, or systems? • What web communication protocols and standards are used by existing applications, data, APIs, and infrastructure? Are they scalable? Security Performance Integration
  19. 19. 19 Place special emphasis on testing your API for security Plan for the worst-case scenario by developing test cases using the following security test techniques. Fuzzing Technique Malicious Content Technique Invalid/Out-of-bounds Content Technique Injection Attacks Technique Use of random data to see whether your API crashes. Data can either be generated randomly or using modeling techniques to break the API using its original intended usage. Taking advantage of the API hosting infrastructure to force a crash. Examples would be recursive objects that result in out of memory errors or passing corrupt binaries in the API call. Uses boundary conditions to test local and global maxima and minima values, incorrect value types for parameters, and incorrect HTTP headers. Exploits the API’s internal code syntax to execute with malicious intent. It could be at any stack level (SQL, XSLT, JSON, JavaScript). Continually stay up to date on common security issues using well-known resources such as OWSAP, WS-Attacks, and Zed Attack Proxy.
  20. 20. 20 Manage the full lifecycle for your API Business Engagement1 Monitor Usage, Reporting, & Analytics 2 API Integration Roadmap3 An API management tool can help with most of these focus points stated above. Some leading vendors in this space are: WSO2 ,MuleSoft, CA, Apigee , IBM , Tibco (Mashery), and Microsoft (Azure API Management). Once API is released into production, you need to include onboarding, monitoring, and future enhancements in your future plan. Once API is in production, you need to focus on three key areas:
  21. 21. Summary
  22. 22. 22 ACCELERATE SUCCESS In today’s Digital world, companies must look to survive the various transitions and changes that are taking place in order to thrive. Organizations can survive the disruption cycles by keeping up with the pace of Innovation leveraging the Quinnox methodology which combines • Pace Layered Application strategy for prioritization 0f the business changes • Cell Based Architecture for Agility
  23. 23. © 2019, Quinnox, Inc. All rights reserved. Do not distribute without permission. 06/20/2019 Akshay Deshpande Thank You

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