Innovating Beyond the Enterprise

Stuart Charlton

BEA Worldwide Enterprise Architecture

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start

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First, about me

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Stuart Charlton

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Joined in 2004

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Lead SOA Architect

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May 2007

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Joined Worldwide Consulting

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This talk

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“The future is already here.It's just not evenly distributed yet.”

- William Gibson

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My 3 Claims:

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1. Organizations are drastically rethinking how they mobilize

resources

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Resources?

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Resources =ideas and things

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Knowledge capitalThingsNature

Entrepreneurial skills

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(could be acquired via financial capital)

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Implications

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Major impact on the mindset of organization

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Major impact on how we innovate

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2. The “service network” is evolvinginto a web of resources and capabilities

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Supporting this new approach to mobilization

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3. “Information assurance”will be a major limiting factor

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Assumptions

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Societal Trends

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1. Economic and Political Uncertainty

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Business regulatory reform

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Environmental reform

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(some day)

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Changing Demographics

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2. Growing Abundance

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(except energy)

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Global Labour

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Services

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3. Globalized Learning & Experimenting

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Mashups

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4. Broader Adoption of Risk Management

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Technology trends

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SOA

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Virtualization

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Web 2.0

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BPM

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How does all of this impact organizations?

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(1)

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Organizations are drastically rethinking how they mobilize resources

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Businesses

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schools

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media

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Most common today

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Assumption:Demand is stable

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Assumption: Transaction & communication costs are

high

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Assumption: The response to uncertainty is more

planning

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1945

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How do you get:

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1. Mobilized quickly from nothing

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2. Build diverse products in variable quantities

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Where would you look?

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kanban

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Many books

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2007

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Distributed CRM

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Partner Network

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Process network

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7,500 partners

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37 countries

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Pull knowledge + goods

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Education

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Media

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vs

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Retail

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Shared Experiences

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Comparing Push with Pull

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Contrasting the Push vs. Pull Approach

Demand can be forecasted

Resource centric

Tightly coupled

Centralized control

Major capital allocations

Efficiency focus

Demand is uncertain

People centric

Loosely-coupled, organic

Decentralized initiative

Incremental investment

Innovation focus

Push Model Pull Model

Participation restricted Collaboration is ingrained

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What are the implications?

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1. Flow value from demand

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Or, strategy begins with a consumer view

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What value do you consume?

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Who consumes your value?

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2. Decentralized innovation

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Goal-driven behaviour

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Processes form a pull platform

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Use process management to gain visibility

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3. More opportunities for collaboration

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In a community of practice

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With consumers

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With partners

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Example

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Lean Consumption

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Eliminating the “unpaid work” of the consumer

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Is the amount of work to be donereduced by having customers wait?

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Would there be a queue if the providers had to pay for customers waiting time?

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Principles for Lean Consumption:

Solve my problem completely.

Don’t waste my time.

Provide exactly what I want

Deliver value where I want it

Supply Value when I want it

Reduce the number of decisions I need to make to solve my problems.

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Consumer-First Process Design

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So:

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1. Organizations are drastically rethinking how they mobilize

resources

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Resources =ideas and things

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Impact on the mindset of business

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Impact on how we innovate

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2. The “service network” is evolvinginto a web of resources and capabilities

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Supporting this new approach to mobilization

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3. “Information assurance”will be a major limiting factor

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(2)

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Evolving the Service Network

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Topology

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Decentralized & Distributed

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SOA

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Lessons?

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Open, uniform agreements scale

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Service infrastructure is the on-ramp

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Visibility

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Relevance

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Agility

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But….

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whoa

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Liquid?

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Web services are often misnamed

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Neither on the web

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Nor are they general “services”

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Let’s take another look at whatSOA can be.

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We want to:Pull resources & capabilities from

demand

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1. Name resources

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2. Agree how to manipulate & communicate

with resources

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(i.e. services)

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3. Connect resources to form capabilitiesand new resources

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4. Low barrier to entry

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5. Extensible

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Ultimately,Weaving a Web of Resources and

Capabilities

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AvailableInside the Organization

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AvailableOutside the Organization

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How?

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Good news:The world-wide web architecture already

does this

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Good news:SOA is evolving to become

more like the Web

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Bad News:This is only in the early stages

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Insight:Services come in different shapes and

sizes

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JBOS “Uniform”

Level of Uniformity

“Governed SOA” ConnectedResources

Just a BunchOf… Services

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The Contract must fit the Consumer

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Examples

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Mashups and Collaboration

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The Search for Jim Gray

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(squint)

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The political implications of web networking?

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The fundamental premise behind web networking is that regardless of the amount of automation involved in a transaction, there is always a human being who will be accountable for what happens.

-- Paul Strassmann, 1995

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(3)

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“Information assurance”is a limiting factor

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“48% of the nearly 3,000 leading executives surveyed

are actively investing in Web 2.0 approaches (e.g. wikis, blogs, social networking, mashups).”

- How Businesses are using Web 2.0: A McKinsey Global Survey, March 2007

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Governance?

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"Just because something can be mashed up doesn't mean it should be… The big question to ask is, 'What are the unintended consequences

of a particular mashup'? That's a corporate policy issue." 

- Ron Schmelzer, ZapThink“The Enterprise Promise of Mashups”, CMP Media,

January 8, 2007

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The general theme:

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Data is political

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Data is politicalHas always been

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but

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With freedom comes responsibility

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Information Assurance:The practice of managing information-

related risks

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More than security and data governance

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Business Continuity Planning

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Disaster Recovery Planning

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High Availability

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Auditing and Fraud Detection

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You will fail

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(sorry)

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Not just preventative,but reactive and counteractive

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Forensics

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Criminology

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The name of the game is:Operating at an acceptable level of risk

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Of course, one can get too paranoid

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Identity of a Consumer

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Identity of an Information Producer

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Identity of the Device

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Integrity and Confidentiality

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Authority over quality

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Summary:

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1. Organizations are drastically rethinking how they mobilize

resources

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Moving from Push to Pull

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Impact on the mindset of business

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Impact on how we innovate

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2. The “service network” is evolvinginto a web of resources and capabilities

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Lowered barriers to entrySupported by a web architecture

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3. “Information assurance”will be a major limiting factor

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What now?

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1. Think about ways in which your enterprise is a pull platform.

How could it become more of one?

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2. Evolve your IT services into a web of capabilities resources, exposed as low-barrier-to-entry

services,ready to be pulled by demand

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3. Begin to coordinate the multiple disciplines of

Information Assurance

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Thank You

stuart.charlton@bea.com

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