rethinking enterprise and infrastructure architecture
TRANSCRIPT
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advising on IT-business
mwdmacehiterward-dutton
Rethinking
enterprise andinfrastructurearchitecture
MicrosoftInfrastructure
ArchitectForum
24 October 2005
Neil Macehiter, Partner
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Macehiter Ward-Dutton 2005 www.mwdadvisors.com 2
Key messages for today
IT-business alignment has never been so important
Alignment must be pursued in the context ofunderstanding business processes, priorities
Service-orientation is not just for applications
Contracts arent just about function: they encapsulateand communicate business priorities to IT deliveryorganisations
Enterprise architecture needs to be more inclusive,sophisticated
IT governance models must take all this into account
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Agenda
Business and IT: new tensions
IT-business alignment
Alignment principle #1: service-oriented IT
Alignment principle #2: understandingbusiness processes and their priorities
Enterprise architecture must reflect IT-
business alignment principles A governance model for service-oriented IT
Recommendations
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A brief introduction to MWD
Strategic advice and consulting
Focus on issues concerning IT-business alignment
Driving more business value out of enterprise IT
Not about the nuts and bolts of individual technologies
Core: two highly experienced industry analysts /practitioners
Sun, Oracle, Sybase, Ovum, Deloitte Consulting, etc
Based in UK, Europe-wide focus
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advising on IT-business
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Business and IT:
new tensions
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Business pressures are drivingchange in new ways
Globalisation
Customers, partners, suppliers and competition
Connectedness driving sophisticated value chains
Transparency
Industry regulations, consumer pressure andcompetition driving openness
Service focus
Differentiation and shareholder value increasinglyderived from service experience
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business/technology changeprojects/scenarios
Managing and proving regulatorycompliance
Refinement of approaches to business andtechnology outsourcing
Integration of processes horizontallyacross organisations
Integration of processes, products andofferings between organisations
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support these types of changeseffectively
Technology integration is costly, risky andcomplicated
Information is everywhere, but getting access
to the right information at the right time is verydifficult
Modifying system behaviour takes too long andchanges are difficult to communicate andimplement effectively
Much of IT system and operations expenditureis bloated and fixed - operations run withexcess redundant capacity
result: IT seen as a cost centre, not a source of business va
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Dynamic, collaborativeprocesses (productinnovation, marketing,strategy setting, etc)
Stable, predictableprocesses (accounting,
order fulfilment, HR,logistics, etc)
Web user experience(increasing numbers ofERP/CRM applications,content management,etc)
Desktop userexperience (office
productivity,communication/
collaboration, etc)
Unstructuredinformation (officedocuments, web contentetc)
Structured information(customer records, order &
fulfilment records,accounts, etc)
management, process support anduser experience
Information management
Process support
User experience
Strongheritage of
management; BUT tends
to beapplication-
specific
Littleheritage of
formalmanagement; storage isfragmented
Strongheritage of
management; BUT tends
to beapplication-
specific
Littlestructuredautomated
supportfrom IT
Familiar,highly
interactiveBUT tends
to beapplication-
specific
Open andaccessible
environments but
usability can
be poor
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IT-business
alignment
b i li l i l
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IT-business alignment: multipleangles
IT
Business
Changeimplications
Changecapabilities,limitations
Investmentin capability
Deliveryof value
not just about building stuff that the business will use
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A common language is theessential starting point
IT
Business
?
Investment prioritised in
terms of business need
Systems that delivervalue to the business
Clear direction from thebusiness about focus,strategy
Collaborative approachto implementing businesschange
A common, agreedrepresentation ofbusiness activity,goals
+A common, agreedview of how currentand future IT providesstructured support tothe business in thiscontext
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Alignment demands that ITbecomes a service provider
Business
IT
Busin
essproce
ss
Busin
essproce
ss
Busin
essproce
ss
Busin
essproce
ss
Busin
essproce
ss
Managed
IT
serviceManage
dIT
service
Managed
IT
serviceManage
dIT
service
Managed
IT
service
A P P L I C A T I O N S & I N F O R M A T I O N
I N F R A S T R U C T U R E
B U S I N E S S S T R A T E G Y
Business processes
form the foundation
of a common
language
IT defines and delivers
business level services
which support the rightprocesses, the right way
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Alignmentprinciple #1:
understandingservice-oriented
IT
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So what is an IT service?
CRMdatabase
Provideautomatedsupport formy sales
force
Updatecustomerdetails
Line of businessperspective
IT operationsperspective
Developerperspective
d i li d i h
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Managed IT services aligned withbusiness processes
Lifecycle servicesManaging the lifecycles of business functions and infrastructure
Business function servicesAutomating business functions
Infrastructure services
Providing the platform
Users experiencesof managed IT service
C b i bli i f
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Contracts bring obligations forsuppliers and consumers
Message FormatMessage Sequence
Functions
SecurityResponse TimeThroughput
Usage CostLiability Clauses
Trust
FunctionalTerms
QoS
Terms
Commercial
Terms
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Alignmentprinciple #2:
understanding
businessprocesses andtheir priorities
A i f b i
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A universe of businessprocesses [1]
E E E E E
M M M
S
Executionprocesses instanceshandle particular unitsof work withinbusiness activities
Managementprocesses instancesoversee instances ofexecution processes
Strategy processes instances overseeinstances ofmanagementprocesses
hierarchy of business processes
A i f b i
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A universe of businessprocesses [2]
E
E
E
M
M
S
ontribution to competitive differentiation
E
E
E
M
M
S
Non-differentiating
(focus should be on efficiency)
Differentiating
(focus should be on flexibility)
Ob ti th t f
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Observations on the nature ofbusiness processes
E
E
E
M
M
S
E
E
E
M
M
S
Increasedstructure,predictability
Increasedcollaboration,ad-hocnature
Non-differentiating
(focus should be on efficiency)
Differentiating
(focus should be on flexibility)
I li ti f b i f ti
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Implications for business functionservice design
Levelof
process
abstr
action
Low
High
Non-differentiating(focus should be on efficiency)
Differentiating(focus should be on flexibility)
Business activity role
Strategybusiness processes
Managementbusiness processes
Executionbusiness processes
Activity functions
Technical functions
Reusabilityimportanceincreases
Opennes
s,flexibil
itydema
ndsincre
ase
Efficiencydem
andincre
ases
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Enterprisearchitecture
must reflect IT-
businessalignmentprinciples
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The real world
From Towards
Build, or buyvs. build
Applicationimplementation
Buy AND buildAND integrate
Back officeBusiness area investment
focusFront office and
beyond
Personalproductivity
desktop
IT access environmentProductivitydesktop +
global access toresources
Data processingTechnology innovation
focus
Communication, collaboration,
integration
Older approaches fail to capture reality re:
integration, communication, collaboration,su l com lexit
Outsourcingvs. in-house
delivery
Capability supply Multi-sourcing
A t diti l i f EA [1] Th
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A traditional view of EA [1]: TheZachman framework
Source: John Zachman, ZIFA
A traditional ie of EA [2]
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A traditional view of EA [2]:TOGAF ADM
Source: Open Group
The good and the bad of EA
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The good and the bad of EAframeworks
The good The frameworks give us a
useful language forcommunicating and sharing
ideas about how IT systemscan/should support businessneeds
Methodologies like theTOGAF ADM give solid
templates for EA processwork
Starting to consider moredynamic aspects of EA
as-is, to-be, vision views
The bad The roots of most
frameworks are in thecreation or change oftransactional informationprocessing systems
The real world of IT ismuch more ugly andcomplicated
Still documentation-oriented not focused onthe process of architectureevolution & governance
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Business process
Applications
Data
The challenge
Activities, processesThe business
real world doesnt decompose nicely and IT isjust about things you build in-house
rov ng structure support or us ness
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rov ng structure support or us nessprocesses means understanding scope &scale of interactions
From
Data design tightly coupled toapplication design, and
application design to userrequirements very restricted
view of process needs
B
us
in
e
s
s
p
ro
c
e
s
s
Towards
B
u
s
in
e
s
s
pr
o
c
e
s
s
Loosely-coupled resourcesprovide services which are
designed to support theinteractions that take placewithin a business process
EA h t id b i
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EA approaches must consider businessprocess support more broadly
B
u
s
in
e
s
s
p
ro
c
e
s
s
Transactionalservices
Informationservices
Communication& collaboration
services
Support scenario:a mesh of
interactions
e have to model more than just transactional applications
An alternative enterprise
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An alternative enterprisearchitecture model
Business architecture- activities, entities- goals, strategy, differentiation
Process architecture
-roles, flows, resources
Business function service architecture
Infrastructure architecture- security, identity management- resource management
Transactional/ information
management
Analytics,discovery,
reporting
Communication,
collaboration
Historically thefocus of
architecture hasbeen here
Historicaldisconnect here
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Enterprise
Architecture andIT Governance
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Enterprise architecture
Needs to be driven inpartnership with thebusiness
IT
Business
Lifecycle
Business function
Infrastructure
Functional QoS
Commercial
Should consider all thedifferent views ofservice provision not
just functional
considerations
Should follow a service-orientedmodel but one which is aboutmore than application functionality
These perspectives are the key
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These perspectives are the keydimensions for IT governance, too
Investment
Delivery
Change
Func
tional
QoS
Commercial
Business function
Infrastructure
Lifecycle
Contract aspects
S
ervice
types
Rela
tionshi
ps
Business processes, priorities
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governance should be consideredtogether
Investment
Delivery
Change
Func
tional
QoS
Commercial
Business function
Infrastructure
Lifecycle
Contract aspects
S
ervice
types
Rela
tionshi
ps
Businessarchitecture
Process architecture
Captures theiterative process
of architecture change
Infrastructurearchitecture
Business fnarchitecture
TX/IM A/R C/C
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You can use the model to
Identify strengths and weaknesses in yourcurrent IT governance approach
Identify the contributions made byparticular technologies to businessobjectives
As above for IT vendors
Consider the dimensions that affectsourcing decisions
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A worked
example: therole of DSI
DSI: the design for operations
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DSI: the design for operationsapproach today
Investment
Delivery
Change
Func
tional
QoS
Commercial
Business function
Infrastructure
Lifecycle
Contract aspects
Service
types
Rela
tionshi
ps
Capability today isin designingbusiness function
services withexplicit referenceto runtime QoSdirectives andvalidate them
against a staticinfrastructuremodel
DSI: with planned Longhorn
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DSI: with planned Longhornwave technology
Investment
Delivery
Change
Func
tional
QoS
Commercial
Business function
Infrastructure
Lifecycle
Contract aspects
Service
types
Rela
tionshi
psWith plannedfuture capabilities,design-time QoSdirectives form thebasis of a live
model which isinterpreted andmaintained byserverinfrastructure to
perform goal-orientedinfrastructuremonitoring andmanagement
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A call to action
For architecture to contribute to IT-business alignment,you have to follow a holistic approach
Not just applications but infrastructure and lifecycle services
Proactively consider the links between all three
Look for technologies and patterns which support the linkages
Set up an architecture governance practice whichdoesnt just allow change, but promotes it
Not a project-focused approach but an ongoing process withsenior level sponsorship
Close links to business stakeholders and their priorities
Think about using contracts, policies and processes as thefoundation of a common language
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mwdmacehiterward-dutton
Thank you