enterprise soa governance
DESCRIPTION
Presentation at SOA SIG Spring Seminar, May 17, 2010TRANSCRIPT
Enterprise SOA Governance
Janne J. KorhonenSOA SIG Spring Seminar, May 17, 2010
1950 1960 1970 1980 1990 2000
Production Economy
Distribution andSales-Driven Economy
Quality and Mass Marketing Economy
Customer Service and Niche Marketing
Economy‘Customers of One’
Economy
The Frequency and Amplitude of Change are Escalating
Effectiveness
Efficiency
Integrity
• Service-Dominant• Organismic• Holistic• Dynamic• Emergence• Coordination• Post-Formal• Dialectical
• Goods-Dominant • Mechanistic• Reductionistic• Static• Planning• Control• Formal• Logical
Com
plex
ity
IT Governance Traditional Definition“IT governance is the responsibility of executives and the board of directors, and consists of the leadership, organisational structures and processes that ensure that the enterprise’s IT sustains and extends the organisation’s strategies and objectives.”– IT Governance Institute; CobiT 4.1 (2007)
Basic CobiT Principle
Business Requirements
IT Resources
IT Processes
Enterprise Information
drive the investment in
that areused by
to deliver
that are used by
CobiT
Source: CobiT 4.1
IT Scorecard
Enterprise Architecture for IT
IT Goals
Business Goals for IT
Enterprise Strategy
CobiT Follows Top-Down Approach
Source: CobiT 4.1
Conformance
Is this enough?
Effectiveness
Efficiency
Integrity
• Business Technology • Value Creation• Performance• Business-IT Convergence • Interactions• Informated• In the Cloud
• Information Technology• Cost Containment• Conformance• Business-IT Alignment• Transactions• Automated• On the Ground
Com
plex
ity
Alignment
EffectivenessLess Effective Highly Effective
Less Aligned
HighlyAligned
The Path to IT-Enabled Growth
”Alignment Trap”
11 % of respondents+13 % IT Spending
-14 % 3-year Sales CAGR
”IT-Enabled Growth”
7 % of respondents-6 % IT Spending
+35 % 3-year Sales CAGR
”Maintenance Zone”
74 % of respondents+0 % IT Spending
-2 % 3-year Sales CAGR
”Well-Oiled IT”
8 % of respondents-15 % IT Spending
+11 % 3-year Sales CAGR
Sour
ce: B
ain
Anal
ysis
n = 504
Today’ssituation
All Too Common:Higher costNo change of impact
Higher Growth:Higher costHigher impact
Stable Cost:Same (current) costHigher impact
Sweet Spot:Lower costHigher impact
Reduced Cost:Lower costSame (current) impact
Typically Undesirable:Lower costLower impact
Cost
ImpactLower impact Higher impact
Lower cost
Higher cost
IT improvementzone
Goal of IT Governance: Reducing Costs and Improving the Bottom-Line Impact
Adopted from Benson, Bugnitz & Walton (2004): From Business Strategy to IT Action
Strategic Alignment ModelBusiness Strategy IT Strategy
Organizational infrastructure and processes IS infrastructure and processes
BusinessScope
Distinctive competencies
Business Governance
TechnologyScope
Systemic competencies
IT Governance
Admin Infrastructure
Processes Skills
Architectures
Processes Skills
Functional Integration
Strategic Fit
Exte
rnal
Inte
rnal
BusinessInformationTechnology So
urce
: Hen
ders
on &
Ven
katr
aman
(199
1)
1. Strategic ExecutionBusiness Strategy IT Strategy
Organizational infrastructure and processes IS infrastructure and processes
BusinessScope
Distinctive competencies
Business Governance
TechnologyScope
Systemic competencies
IT Governance
Admin Infrastructure
Processes Skills
Architectures
Processes Skills
Functional Integration
Strategic Fit
Exte
rnal
Inte
rnal
BusinessInformationTechnology
2. Technology PotentialBusiness Strategy IT Strategy
Organizational infrastructure and processes IS infrastructure and processes
BusinessScope
Distinctive competencies
Business Governance
TechnologyScope
Systemic competencies
IT Governance
Admin Infrastructure
Processes Skills
Architectures
Processes Skills
Functional Integration
Strategic Fit
Exte
rnal
Inte
rnal
BusinessInformationTechnology
3. Competitive PotentialBusiness Strategy IT Strategy
Organizational infrastructure and processes IS infrastructure and processes
BusinessScope
Distinctive competencies
Business Governance
TechnologyScope
Systemic competencies
IT Governance
Admin Infrastructure
Processes Skills
Architectures
Processes Skills
Functional Integration
Strategic Fit
Exte
rnal
Inte
rnal
BusinessInformationTechnology
4. Service LevelBusiness Strategy IT Strategy
Organizational infrastructure and processes IS infrastructure and processes
BusinessScope
Distinctive competencies
Business Governance
TechnologyScope
Systemic competencies
IT Governance
Admin Infrastructure
Processes Skills
Architectures
Processes Skills
Functional Integration
Strategic Fit
Exte
rnal
Inte
rnal
BusinessInformationTechnology
Fundamental System Perspectives
• ”Black Box”– Functional– Teleological– Control-oriented– Design irrelevant
• ”White Box”– Constructional– Ontological– Change-oriented– Design essential
Performance
Enterprise Governance:Equal Weight on Performance
“The set of responsibilities and practices exercised by the board and executive management with the goal of providing strategic direction, ensuring that objectives are achieved, ascertaining that risks are managed appropriately and verifying that the organisation’s resources are used responsibly.”
− Information Systems Audit and Control Foundation (2001)
Enterprise Governance
Corporate Governancei.e. Conformance
Business Governancei.e. Performance
AccountabilityAssurance
Value CreationResource Utilisation
Source: IFAC (2004)
Enterprise Governance: My Definition
The word governance derives from the Greek verb κυβερνάω [kubernáo]: to steer
Enterprise Governance defines the requisite roles, accountabilities and policies to effectively design and operate an enterprise in continually shifting contexts.
To Optimize the System, One Needs to Pareto-Optimize the Sub-Systems
”Structure Follows Strategy”– Alfred Chandler
VIII
IV
IV−V General ManagementBusiness models, products, services
VI+ Executive LeadershipStrategic organizational leadership: culture, values, vision; business portfolio
III
I
II
I−III OperationsDay-to-day work, supervision, first-line management, departmental management
Board Member,
Super Corporation CEO
Corporate CEO
Business UnitPresident
General Manager
Corporate EVP
Unit Manager
First-Line Manager;Specialist
Supervisor; Operator
Conc
eptu
al-A
bstra
ct
Dial
ectic
al
Sym
bolic
-Ver
bal /
Logic
al
VII
V
VI
VII-VIII Long-term sustainabilityV-VI Innovation, transformationIII-IV EffectivenessI-II Efficiency
Requisite Organization as Metadesign
ServiceInvocation
Internal External
IT Domain
Business Domain
I II III IV V VI VII
Servi
ce St
rategy
Servi
ce Contra
ct
Servi
ce Definition
Servi
ce In
terface
ClientInteraction
Service
Service Offering
Service Portfolio
Value Proposition
Service Ecosystem
Service Economy
ServiceInstance
Service Implementation
Service Design
Service Analysis
Service Architecture
Event orTransaction
Activit
y
Business
Process
/ Cap
ability
Product / S
ervice
Mix
Business
Model
Business
Portfolio
Model
Vision
VII VI V IV III II I
Korhonen, Hiekkanen & Heiskala (2010):”Map to Service-Oriented Business and IT”
Design, Planning and Support
Real-Time
Tactical
Operational
Strategic,internal
StrategicDecision-Making
EnterpriseCoordination
Tactical Decision-Making
Domain Coordination
Operational Decision-Making
OperationsPlanning &
Support
StrategicSteering
Development and Execution
Strategic,external
Agile Governance Model 1.1
Adapted from Korhonen, Hiekkanen & Lähteenmäki (2009)
Benefits of SOA at Different Levels
Application Infrastructure
Information Systems
Business Processes
BusinessStrategy
• Business modularity Agility• Outsourcing
• Rapid service development• Agile business processes
• Composite applications• Process automation
• Reusability• Interoperability
Technology Infrastructure• Technology virtualization
Levels and Dimensions of Enterprise SOA
Process Information Service IT/IS
Value Network Industry Ontology
Service Strategy IT Strategy
End-to-end Processes
Enterprise Ontology
Enterprise Services
Technology and Systems
Portfolio
Functional Processes
Domain Ontology
Procedural Services
Technology Platforms, Enterprise
Information Systems
Workflows, Orchestrations
Logical Data Model
Declarative Services
Application Infrastructure
Process Activities
Technical Data Model
Infrastructure Services
Technology Infrastructure
SOA Governance Strategy and Goals
SOA Principles and Policies
SOA Governance Organization and Stakeholders
Governance Processes
Governance Roles and Responsibilities
Governance Behavior and Reinforcement Model
Governance Metrics and Process Performance
Gov
erna
nce
Perf
orm
ance
Mgt
Fund
ing
and
Budg
eting
Mod
els
Governance Enabling Technology & Implementation
Defi
ne/E
nfor
ce P
olic
ies
by G
over
nanc
e Ti
ers
SOA Governance Reference Model
• Govern What and Why?• What must be governed now?• To what end?• SOA goals, principles, and policies
• Who governs What?• Who owns what and how? What events trigger policy enforcement?• Who is responsible for enforcing what?• Who provides services? Who consumes services?
• What behavior do we need?• How do we incentivize that behavior?• What rewards, penalties and reinforcement mechanisms will work for us?• What metrics are needed?
Source: Marks (2008)
Agile Governance Model Applied to SOA Governance
Enterprise/ Strategic
Governance
SOA Architecture Governance
SOA Operating
Model Governance
SOA Services Governance
SOA and Services Lifecycle
Governance
SOA Governance
Enabling Technologies
SOA Projects / Operations
Planning, coordination,support
Implementation,operations, control
• SOA Opportunity Management• Service Portfolio Management• Service Promotion/Demotion• Management Reviews
• Service Identification• Modeling, Design• Publishing• Composition, Orchestration
• SOA Development• QA/Testing• Execution and monitoring• Maintenance
• SOA Reference Architecture• Services Reference Architecture• SOA Platform Architecture
• Services Reference Model• Design Patterns and Standards• Runtime Standards• Versioning/Naming Conventions
• Development Tools• Registries and Repositories• Policy Engines• Distributed Policy Enforcement
• Strategic Management• Budgeting and funding• Enterprise Architecture• Business and Technology Alignment• Compliance
http://www.requisiteremedy.com/